For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

Lessons From WSJ Strange Brains TheSmarterBoat REVIEW THE WALL STREET JOURNAL WEEKEND OFF DUTY

******** SATURDAY/SUNDAY, JUNE 30 - JULY 1, 2018 ~ VOL. CCLXXI NO. 152 WSJ.com HHHH $5.00

What’s 40% Trump Tech Stocks Shine Narrows News 35 World-Wide In Bumpy Quarter Court List Netflix s32.53% BY AKANE OTANI an early slump in the second 30 To Five rump said he has nar- AND MICHAEL WURSTHORN Inflation Redux quarter to book its eighth Trowed the field of can- straight gain. didates for Justice Ken- Stocks were all over the map Prices heat up after six The S&P 500 and the Dow BY LOUISE RADNOFSKY nedy’s seat on the Supreme in a jittery quarter as investors years of falling short...... A2 Jones Industrial Average rose AND PETER NICHOLAS Court to about five and dumped industrial stalwarts on 2.9% and 0.7%, respectively, for 25 plans to announce his fi- fears of a trade war stifling the quarter, trailing the Nas- WASHINGTON—President nal pick on July 9. A1, A5 global growth and increased trade tensions and political daq’s 6.3% advance. The first said on Friday their bets on shares of large uncertainty in the eurozone, as two indexes remain well below that he planned to interview Europe’s leaders agreed Facebook technology companies. well as signs of slowing mo- their January records, while one or two candidates this to start holding some mi- 20 s21.61% Indexes finished the tumul- mentum in the global econ- the Nasdaq notched a series of weekend at his Bedminster, grants in detention camps, tuous three months mostly omy. But the real standout was Please see page A4 N.J., resort to fill Supreme as politicians face a backlash higher, even as investors were the tech-heavy Nasdaq Com- Court Justice Anthony Ken- to a 2015 decision to open Amazon.com buffeted by worries about posite Index, which overcame nedy’s seat, and plans to an- the continent’s doors. A1, A6 s17.44% 15 nounce his final pick on July 9. General Motors warned The Nasdaq Composite ...fueled by some “I’ve got it narrowed to the administration that outperformed other of the biggest about five,” he said, including tariffs on vehicle imports two women. would hurt its competitive- indexes in the quarter... tech stocks. The president also said he ness, cost U.S. jobs and re- 10% 10 Apple wouldn’t specifically ask candi- sult “in a smaller GM.” A3 s10.33% dates about Roe v. Wade, the Nasdaq landmark ruling making abor- A federal judge struck Composite Alphabet tion legal. However, a potential down the Trump adminis- s 7510.30 8.88% nominee’s approach to the is- tration’s approval of a s 5 6.33% sue has been a factor in creat- Kentucky plan to impose ing Mr. Trump’s list of 25 con- work requirements on many servative candidates. Medicaid recipients. A3 S&P 500 2718.37 The president didn’t say if Authorities charged the all of his five finalists were 0 s2.93% 0 suspect in the deadly at- from that list, but he had ear- tack at an Annapolis, Md., Dow Jones lier pledged to pick exclusively newspaper with five counts Industrial Average from it. of first-degree murder. A3 24271.41 Late Thursday, the president s0.70% met with a bipartisan group of Mnuchin, facing calls –5 –5 six senators who will play a piv- for Treasury to adjust capi- April May June April May June otal role in selecting Mr. Ken- tal-gains taxes for inflation, nedy’s successor because they said he would rather Congress have deviated from their party consider the matter first. A4 The tech-heavy Nasdaq Composite has outperformed the S&P 500 every quarter since the beginning of 2017. on key votes in the . The California banned all lo- Quarterly performance Nasdaq Composite S&P 500 lawmakers signaled they want cal taxes on groceries for 10% an ideological centrist, compli- 12 years, a major victory cating Mr. Trump’s decision. for the soda industry. A5 5 Among them were Republi- 0 can Sens. Susan Collins of Business&Finance Maine and Lisa Murkowski of –5 Alaska, both of whom back –10 PleaseturntopageA5 The Nasdaq booked its 3Q 2015 ’16 ’17 ’18 eighth straight quarter of Democrats face process gains as investors dumped Sources: SIX (stocks); FactSet (quarterly performance) Nigel Chiwaya/THE WALL STREET JOURNAL. without filibuster option..... A5 industrial stalwarts and increased bets on large technology companies. A1 U.S. stocks edged higher Victims of Newspaper Shooting Are Mourned Friday on a pause in trade Europe Toughens tensions. The Dow added 55.36 points to 24271.41. B13 Stance on Migrants An inflation measure watched closely by the Fed- BY VALENTINA POP political survival. When the eral Reserve hit the cen- AND BOJAN PANCEVSKI EU’s longest-serving national tral bank’s target in May leader allowed more than one after running below it ev- BRUSSELS—Europe’s lead- million asylum seekers to en- ery month for six years. A2 ers agreed to start holding ter the EU three years ago, she AT&T and Sprint have some migrants in detention unwittingly unleashed broad- raised administrative fees camps, as politicians including based anger toward migrants. for customers, moves that Germany’s once indomitable Since then, backlash against will bring in hundreds of mil- Chancellor Angela Merkel face outsiders helped drive Brit- lions of dollars of revenue. B1 a growing political backlash to ain’s vote to leave the EU and her 2015 decision to open the recently helped win elections The sharp decline in continent’s doors to those for antiestablishment or nativ- Deutsche Bank’s market fleeing conflict and poverty. ist parties in the Czech Repub- value could result in the The heads of European lic, Hungary and Slovenia, as lender’s exit from a major Union governments endorsed well as in Rome and Vienna. European stock index. B1 the idea on Friday, which many Ms. Merkel was handed an China’s ZTE replaced its had recently dismissed as xeno- ultimatum by her conservative board of directors to satisfy phobic and inhumane, after junior coalition partners to U.S. demands, but the nightlong negotiations that en- broker a hardening of Europe’s changes may be less sweep- dorsed a tougher approach pro- porous southern rim or accept

ing than they appear. B3 MARK WILSON/GETTY IMAGES moted by anti-immigrant gov- unilateral closure of Ger- PAYING RESPECTS: Mourners attended a vigil in Annapolis, Md., Friday for victims of the Capital Gazette ernments in Italy and Austria. PleaseturntopageA6 Novartis plans to spin attack. Staff had been warned years ago about the suspect, who allegedly killed five people Thursday. A3 For Ms. Merkel, abandoning off its Alcon eye-care unit, her long commitment to more- New barriers to immigration which could be valued at open borders was the price of mark fundamental shift...... A6 more than $20 billion. B3 Xiaomi priced a $4.7 billion IPO at the bottom of the Chinese smartphone Russia’s Biggest Problem? Tycoon’s Death Turns EXCHANGE maker’s target range. B13 Not Enough Boston Sports Gear iii Into Mystery Tale Inside ‘Discount Diplomat’ travels to World OPINION A13 Cup, handing out jerseys to strangers Doubting police, family tries to crack case The Undisputed BY ANDREW BEATON “You see this whole section BY JACQUIE MCNISH questions for hours. He and Champion of the of Iranian-dressed fans,” Mr. AND VIPAL MONGA two of his sisters waited until ST. PETERSBURG, Russia— Conley said. “Then all of a sud- 9 p.m. that night for confir- First Amendment Greg Conley sat down at a re- den, you see a guy wearing a TORONTO—Police found mation that it was true their cent World Cup game here Celtics shirt. It was like a black the bodies seated side by parents were dead. next to a family of spot on a white side near an indoor swim- The terrible news didn’t CONTENTS Sports...... A14 Iranian fans who re- piece of paper.” ming pool. Two belts were end there for the Sherman Books...... C7-12 & Fashion D2-3 Business News...... B3 Technology...... B4 galed him with sto- This wasn’t an looped around their necks siblings. Police suspected it Food...... D10 Travel...... D4-5 ries about the team, isolated event for and fastened to a railing. could be a murder-suicide— Heard on Street...B14 U.S. News...... A2-5 its traditions and Mr. Conley, a 54- Soon after, on that mid- that their 75-year-old father, Obituaries...... A9 Weather...... A8 players. year-old Boston- December day, Jonathon the founder of Apotex Inc., Opinion...... A11-13 World News...... A6-8 Mr. Conley area native who Sherman spotted a social-me- Canada’s largest generic reached into his bag calls himself “The dia feed that said his father, drugmaker, had strangled > after Iran’s win over Discount Diplomat.” pharmaceutical billionaire their mother, 70, and then THE WELL Morocco. He It’s what he does. A Barry Sherman, and his killed himself. grabbed a Boston hospital project mother, Honey, had been “My reaction was total dis- THAT STARTED Celtics shirt and gave it to the manager by day, Mr. Conley found dead at home. belief,” Jonathon Sherman A REVOLUTION s 2018 Dow Jones & Company, Inc. Iranian man right next to him. spends his free time traveling Mr. Sherman, 35 years old, said. “Anyone who knew our All Rights Reserved The man beamed and put it on the world attending major went to his parents’ house. father would tell you the B6-B7 immediately. PleaseturntopageA10 Police refused to answer PleaseturntopageA10 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A2 | Saturday/Sunday, June 30 - July 1, 2018 ****** THE WALL STREET JOURNAL. U.S. NEWS

THE NUMBERS | By Jo Craven McGinty Burning Question: How Much Sunscreen?

A miscon- ception about Ray Bans sunscreen Sunscreens are tested at 2 could have mg / sq cm to determine you seeing SPF, but most people don’t red. use that much. The Lotions, foams and sprays difference means they that prevent sunburn are receive less protection than tested at 2 milligrams per promised. square centimeter of skin to determine the sun protection Percentage of SPF Level factor, or SPF. UV rays blocked That amount provides the best results, but most people 15 93.3% don’t come close to using 30 96.7% that much. The difference 50 98.0% means they receive far less protection than promised. 60 98.3% Part of the problem is der- 100 99.0% matologists have a hard time explaining how thickly sun- Source: FDA screen should be applied. “Nobody is going to take their home kitchen scale and ply the sunscreens as they measure out grams of sun- normally would. screen,” said David J. Leffell, The test included 199 par- chief of dermatologic surgery ticipants randomized to one and cutaneous oncology at of two groups. Some applied Yale School of Medicine. SPF 100 sunscreen to the left To cover the body, a rule side of their faces and SPF of thumb is to apply a shot 50 to the right; some did the glass full of sunscreen, but, opposite. All cleaned hands as Dr. Leffell noted, it’s un- between applications to likely the same amount avoid cross-contamination.

would be appropriate for SPENCER PLATT/GETTY IMAGES Reapplying sunscreen af- someone who’s 5-feet-2 as People cooled off by the ocean at ’s Rockaway Beach on Friday, as temperatures reached the 90s. ter an hour or two in the sun for someone who’s 6-feet-3. also is necessary for achiev- The Food and Drug Ad- “It’s thinner than human said Laura Ferris, associate Because people use despite laboratory tests to ing the labeled SPF protec- ministration, which regulates hair,” said Daniel Seabold, a professor of dermatology at roughly half as much as rec- the contrary, using sun- tion, but these users, on av- sunscreen, agrees. mathematician at Hofstra University of Pittsburgh. ommended, some research screens with an SPF greater erage, reapplied only 1.1 “The example of a shot University who calculated “That’s not enough.” has concluded that to ensure than 50 is worthwhile. times during their exposure. glass is based on an average the recommended thickness proper coverage, sunscreen In the lab, SPF 50 sun- After around six hours on human and is given as an ex- of sunscreen to be about he precise relationship should be applied twice. screen filters out 98% of UVB the slopes, the skin treated ample only,” said Sandy one-fifth the depth of a sheet between amount of Other research has con- rays, which are primarily re- with the SPF 100 sunscreen Walsh, a spokeswoman for of paper. T sunscreen applied in verted the shot-glass rule sponsible for burning, ac- wasn’t as red as the skin the FDA. “The amount of In practice, most people the real world and protection into a teaspoon rule: Use cording to the FDA. The ad- treated with SPF 50. sunscreen applied for each apply only 20% to 50% of the it offers is uncertain except more than half a teaspoon ditional protection offered by But the answer to the consumer will be based on amount needed to obtain the for one thing: Less sunscreen for each arm or the face and higher SPFs in a lab setting burning question of exactly their specific attributes in- labeled SPF, according to means less protection. neck and more than one tea- is negligible—for example, how much sunscreen is cluding body size, the studies in the U.S., Australia Some studies suggest the spoon for each leg, the chest SPF 60 filters out about enough remains less than amount of body hair and sen- and Denmark, which gauged amount applied and level of and the back for a total of 98.3%ofUVBrays. satisfying. sitivity to the sun.” how much sunscreen test protection is linear, meaning about 6 teaspoons, or 1 fluid “Apply enough and mas- Adding to the confusion, subjects used by measuring half the recommended ounce. (A shot glass holds 1.5 ut the recent study, sage it in so there is no resi- the recommended quan- the area of skin to be cov- amount cuts protection by fluid ounces.) paid for by Johnson & due left,” Dr. Leffell said. “If tity—2 milligrams per square ered and then weighing the half. Other studies suggest Yet another study, pub- B Johnson, a sunscreen you find you’re still getting centimeter—is actually sunscreen before and after an exponential relationship, lished in May in the peer-re- maker, found that SPF 100 pink after a couple of hours pretty sheer, making it diffi- application. meaning an even greater re- viewed Journal of the Ameri- provided significantly better or, depending on your skin cult to describe how an ade- “I’ve seen people put a lit- duction in protection. can Academy of protection than SPF 50 when type, an hour in the sun, you quate layer should look. tle pea size on and say, OK,” What to do? Dermatology, concluded that snow skiers were told to ap- need to put on more.” Long-Dormant Inflation Heats Up U.S. WATCH POLITICS and Asia, will become the first BY HARRIET TORRY slow growth in the wake of the black officer to command West Hitting the Mark severe 2007-2009 recession. Trump Pick Gains Point in its 216-year history. Inflation in the U.S. is back Change in personal-consumption expenditures price index, excluding However, “touching 2% isn’t GOP Senate Support Academy officials announced after more than half a decade food and energy grounds for victory” after the Friday that Gen. Williams will of falling short. long run of low inflation, Mr. President Donald Trump’s pick assume command as the acad- 2.5% A price measure watched Feroli said. Fed officials “want to run a consumer-finance regu- emy’s 60th superintendent dur- closely by the Federal Reserve Federal Reserve target to see it sustained.” lator will get a mid-July hearing ing a ceremony Monday morning hit the central bank’s target af- The central bank won’t be before the Senate Banking Com- in West Point’s Jefferson Hall. 2.0 ter running below it every surprised by the latest read- mittee, where Senate Republi- Most recently Gen. Williams month for six years, as a strong ings. When inflation slowed cans are rallying around her was commander of NATO’s Al- labor market nudges wages last year, officials looked past nomination. lied Land Command. He takes 1.5 higher and robust economic the drop, believing it was due The White House nominated over from Lt. Gen. Robert L. growth squeezes slack out of to temporary factors, including Kathy Kraninger to succeed the Caslen Jr., who is retiring. the economy. 1.0 one-off cuts in cellphone-ser- Consumer Financial Protection — Though inflation hits con- vice plans. Bureau’s acting director, Mick sumers and businesses with Fed Chairman Jerome Pow- Mulvaney. Senate Banking Com- IOWA more expensive purchases and ell in June projected that “later mittee Chairman Mike Crapo (R., 0.5 Annualized rate over six months loans, the Fed believes a little this summer there’s a good Idaho), scheduled a July 19 hear- Court Blocks Waiting bit of inflation at a consistent Annualized rate over three months chance that headline inflation ing on Ms. Kraninger’s nomina- From a year earlier Period for Abortions and predictable rate is needed 0.0 will move up above 2% because tion. Senate aides said the com- to keep the economy growing of (higher) oil prices.” mittee could vote to send her The Iowa Supreme Court on steadily and at a healthy pace. 2012 ’13 ’14 ’15 ’16 ’17 ’18 Now, officials need to con- nomination to the full Senate by Friday struck down a law requir- The Commerce Depart- Source: Commerce Department THE WALL STREET JOURNAL. sider how high, and for how the end of July. ing a 72-hour waiting period for ment’s price index for personal- long, they should let inflation —Yuka Hayashi women seeking an abortion. consumption expenditures, ex- pansion. More demand tends to tomers, but that they under- rise. With the expansion enter- An attorney for Planned Par- cluding food and energy costs, push prices higher. stand the pressures manufac- ing its 10th year in July MILITARY enthood of Iowa, one of the rose 2% in May from a year “Gas in our area has gone up turers face. “We don’t need to and unemployment at an 18- plaintiffs, said it is the most im- earlier after running below that quite a bit” over the past year, fully offset the inflation, but we year low, the central bank has West Point Gets portant constitutional-rights mark every month since April said Herb Houck, a funeral di- need just a little bit of pricing been raising short-term inter- First Black Leader case in Iowa since the ruling 2012. The Fed prefers that rector from Reading, Pa. “Su- to go along with efficiencies,” est rates to prevent the econ- that legalized same-sex mar- measure because it strips out permarket is about the same, it he said. omy from overheating. Lt. Gen. Darryl A. Williams, a riage in 2009. The Iowa attorney categories that make it hard to goes up all the time,” the 63- Trade tariffs could shift the The Fed drew some unusual 1983 U.S. Military Academy general’s office declined to com- see underlying inflation trends. year old added. inflation picture further. Tariffs attention from the White House graduate who has held high- ment. The central bank also looks In recent months, busi- impose a duty on goods im- on Friday. ranking Army posts in Europe —Associated Press at a broader measure of infla- nesses have seen their own ported to the U.S., costs that Lawrence Kudlow, President tion that includes food and en- costs rise, in part because of companies may try to pass to Donald Trump’s top economic THE WALL STREET JOURNAL ergy costs. That measure was high energy prices and labor consumers. The Trump admin- adviser, said on Fox Business CORRECTIONS (USPS 664-880) up 2.3% in May from a year shortages putting some mild istration has imposed tariffs on Network that he hoped the (Eastern Edition ISSN 0099-9660) earlier, the largest increase upward pressure on wages. washing machines, steel and central bank would move inter- AMPLIFICATIONS (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) since March 2012, driven in Now, some businesses say they aluminum and threatens tariffs est rates up “very slowly”— Editorial and publication headquarters: part by higher gasoline prices. are trying to pass those costs breaking with a 25-year White 1211 Avenue of the Americas, The broader inflation mea- on to consumers. House precedent of generally In some editions Friday, a New York, N.Y. 10036 sure has hit the 2% target a few Tyson Foods Inc., the larg- A price measure hit refraining from commenting on U.S. News article about the Published daily except Sundays and general times in recent years, typically est U.S. meat company by sales, monetary policy in deference shooting at the Capital Gazette legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. when gas or food prices rose, figures rising freight rates will theFed’starget to central-bank independence. in Annapolis, Md., misspelled Regular one-year U.S. subscription rates: but it tended to fall back below cost it $155 million in its cur- after running below Fed officials voted in June to the surname of Rob Hiaasen, print/digital edition $525.00. the target for much of the ex- rent fiscal year. In response, it boost their benchmark rate by one of the victims, and his Postmaster: it for six years. Send address changes to The Wall Street pansion. Its average is 1.3% is raising prices for chicken, a quarter point to a range be- brother Carl Hiaasen as Hias- Journal, 200 Burnett Rd., Chicopee, MA 01020. since May 2011. pork and beef, counting on con- tween 1.75% and 2%. They have sen. All Advertising published in The Wall Street Economists have blamed sumers’ appetite to help the penciled in two further quar- Journal is subject to the applicable rate card, factors like weak economic de- company negotiate with restau- on cars and as much as $250 ter-point increases for 2018 The European Union im- copies of which are available from the Advertising Services Department, Dow Jones mand, a strong dollar and a rants and retailers. billion worth of goods im- and project more increases to posed tariffs on €2.8 billion & Co. Inc., 1211 Avenue of the Americas, New slowly recovering labor market “It’s not an easy discussion ported from China. over 3% by 2019. ($3.2 billion) of U.S. exports in York, N.Y. 10036. The Journal reserves the right for low inflation in recent to have with customers,” Tom “Our goal continues to be to Fed officials estimate core retaliation for U.S. metals tar- not to accept an advertiser’s order. Only publication of an advertisement shall constitute years. The strong dollar makes Hayes, Tyson’s chief execu- pass the cost increases on to inflation will steady at 2% this iffs. In some editions Friday, a final acceptance of the advertiser’s order. imports cheaper, and soft labor tive, said at an event in May. the marketplace,” Timothy year and inch up to 2.1% in the World News article about Eu- Letters to the Editor: markets hold down wages. “We will do our best to make Hassinger, chief executive of two following years. ropean tariffs incorrectly said Fax: 212-416-2891; email: [email protected] Structural factors are also sure we get all the value back Lindsay Corp, which makes Fifty-four economists sur- the EU imposed tariffs of €2.8 thoughttohaveplayedarole, for our shareowners and for crop-irrigation systems, said on veyed by The Wall Street Jour- billion. NEED ASSISTANCE WITH like an aging population spend- ourselves.” Thursday. “We’ve led the in- nal recently said on average the YOUR SUBSCRIPTION? General Mills The name ing less, cheap imports due to Inc. has raised dustry this year in the imple- Fed would tolerate annual core of Linda-Eling By web: customercenter.wsj.com; globalization and the “Amazon some prices in recent months mentation of the steel sur- PCE inflation as high as 2.5% Lee, global head of ESG re- By email: [email protected] and started selling smaller charges. Our intention is to before raising rates more ag- search at MSCI, was incor- By phone: 1-800-JOURNAL (1-800-568-7625); effect” of consumers spending Or by live chat at wsj.com/livechat less on goods online. boxes of cereal at a higher continue with this strategy.” gressively than planned. rectly given as Linda Eling-Lee But demand is picking up price-per-ounce, thanks in part For the broader economy, ——Paul Kiernan, in the Streetwise column on REPRINTS & LICENSING and unemployment falling. to higher freight and food com- hitting the 2% inflation target Annie Gasparro Friday about environmental, By email: [email protected] Many forecasters estimate the modity costs. is “encouraging,” Michael Fer- and Jacob Bunge social and governance metrics. By phone: 1-800-843-0008 U.S. economy grew at near 4% Chief Executive Jeff Har- oli, chief U.S. economist at JP- contributed to this article. or even faster in the second mening said grocery stores Morgan Chase & Co., said in an Readers can alert The Wall Street Journal to any errors in news articles GOT A TIP FOR US? quarter, twice the rate of the have been hesitant to pass interview. It means the econ- Heard: Case builds for Fed to by emailing [email protected] or SUBMIT IT AT WSJ.COM/TIPS 2% average for much of the ex- those higher costs on to cus- omy is in better balance after lean against economy...... B14 by calling 888-410-2667. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. ******** Saturday/Sunday, June 30 - July 1, 2018 | A3 U.S. NEWS Kentucky’s Medicaid Newspaper Warned About Shooter Capital Gazette staff WorkRule had been told years ago to call 911 if they IsBlocked saw shooting suspect

BY STEPHANIE ARMOUR BY JON KAMP AND CAMERON MCWHIRTER A federal judge on Friday struck down the Trump admin- LAUREL, Md.—Capital Ga- istration’s approval of a Ken- zette staff were shown a photo tucky plan to impose work re- of Jarrod W. Ramos years ago, quirements on many Medicaid and warned that if they ever recipients, a ruling that could saw him to call 911, a former have a chilling effect on other editor and publisher said. states seeking new rules for Police say they investigated the program covering 75 mil- in 2013 after Mr. Ramos alleg- lion people. edly made concerning com- U.S. District Judge James ments online regarding the Boasberg said Health and Hu- newspaper company. On man Services Secretary Alex Thursday, authorities say, he Axar hadn’t adequately consid- barricaded one door at the An- ered whether the proposal napolis, Md., newsroom, shot would help the state provide his way through another and medical assistance to resi- killed five employees with a dents, which he noted was a 12-gauge shotgun. central objective of Medicaid. Authorities charged the 38- As such, he said, the approval year-old with five counts of was “arbitrary and capricious.” first-degree murder following The judge, who was ap- the attack. He was held with- pointed by former President out bail after a brief court , vacated the hearing Friday. The local pub- HHS approval and sent the lic defender’s office, which is

proposal back to the depart- representing Mr. Ramos, de- JOSE LUIS MAGANA/ASSOCIATED PRESS ment for further review. Ken- clined to comment. People remembered five Capital Gazette employees killed Thursday. Surviving staff continued to cover the paper’s own tragedy. tucky had hoped to save about “Some people have said the $33 million as it reduced the threats were veiled, but it was teracted with them only on suit after finding no basis for bers met in the newsroom of ally think you will be OK?’ And number of beneficiaries by pretty clear to us working and in a court case, the allegations, and an appeals sister paper the Baltimore we were just kind of quiet,” about 90,000 through the new there at the time,” said Thomas writing: “He has not attempted court upheld the ruling in 2015. Sun. They discussed how to Ms. Ohl said. “It’s strange, to requirements under its new Marquardt, who stepped down to enter the Capital Newspa- Neither Mr. Marquardt nor cover themselves. be covering yourselves.” Medicaid program, called Ken- as the paper’s editor and pub- per building or sent direct the columnist who wrote the Reporter Danielle Ohl, who The editor decided a Balti- tucky Health. lisher in 2012. “They weren’t threatening correspondence.” 2011 article is still employed at had been on vacation at the more Sun reporter would “We are conferring with the vaguetomeatall.Ifeltthreat- Mr. Ramos’s long-running the Capital Gazette. Authorities time of the shooting, said she cover the vigil. Department of Justice to chart ened the whole time.” feud with the Capital Gazette said evidence found in Mr. Ra- and a colleague volunteered to The paper, which put out an a path forward,” said Seema A police report released Fri- appeared to start with a 2011 mos’s home shows that Thurs- cover a candlelight vigil for the issue the day after the shoot- Verma, administrator for the day, and written in mid-2013, article about his guilty plea to day’s shooting was planned, and victims. They included Rob ing, continues to cover its own Centers for Medicare and Med- cited “fringe comments” Mr. criminal harassment against a that he intended to kill as many Hiaasen, 59 years old, an assis- tragedy. One reporter is work- icaid Services at HHS. Ramos allegedly made on Twit- female high-school classmate people as possible. tant editor and columnist; ing on a “tick tock” detailing Adam Meier, Kentucky’s ter associated with events in he had reconnected with on “This was a targeted at- Wendi Winters, 65, who headed how the attack happened. Oth- secretary of the Cabinet for the paper, including the Facebook. He received a sus- tack,” said Anne Arundel special publications; Gerald ers may write columns about Health and Family Services, phrases journalistic hell, hit pended jail sentence and pro- County Police Chief Tim Al- Fischman, 61, editorial page ed- their co-workers, which will said his agency would work man and open season. bation, court records show. tomare. “We can’t fathom why itor; John McNamara, 56, a run in the opinion pages. quickly with CMS to resolve The investigator concluded Mr. Ramos sued the paper that person chose to do this.” staff writer; and Rebecca —Kate King the judge’s concerns and move Mr. Ramos didn’t pose a threat and staff for defamation in Friday morning, the Capital Smith, 34, a sales assistant. and Joseph De Avila forward with their plan. to employees, since he had in- mid-2012. A judge dismissed the Gazette’s surviving staff mem- “Our editor said, ‘Do you re- contributed to this article. The decision comes in a lawsuit in federal district court in Washington, D.C., filed by advocacy groups over the re- Controversial Facial System Identifies Suspect quirement. It sought class-ac- tion status on behalf of the plaintiffs and asserted that the BY ZOLAN KANNO-YOUNGS crime in our state.” Some privacy advocates are changes to Medicaid, a federal- AND ROBERT MCMILLAN Tom Joyce, vice president concerned about linking artifi- state program, are illegal and of client relations at Vigilant cial intelligence-operated, fa- go beyond the administration’s Authorities used a facial- Solutions, an artificial intelli- cial-recognition systems to authority. recognition system to identify gence and data analytics ven- cameras to identify people in Kentucky Gov. Matt Bevin, a the man charged with carrying dor for law-enforcement agen- public spaces. “Left unchecked, Republican, has pushed the out Thursday’s deadly attack cies, said police across the U.S. surveillance systems like this new Medicaid rules, which at the Capital Gazette in Mary- have expressed interest in us- can lead to the arbitrary and would require many recipients land, in the highest-profile ing facial recognition, and de- unlawful use of government to work or volunteer to get or case involving technology that mand is likely to increase after power,” said Jennifer Lynch, an has raised privacy concerns. the Maryland shooting. attorney with the Electronic Anne Arundel County Police “It’s definitely the highest- Frontier Foundation, a digital- Judge’s ruling could Department fed a photograph profile case in my memory rights organization. of the suspect into the Mary- since being here, where it’s The system in Maryland be- have chilling effect on land Image Repository System, been used and it’s been pub- gan running facial-recognition other GOP-led states a database of mug shots and licly known right away,” said searches on mug shots in 2011, driver’s license photos, authori- Mr. Joyce, a former lieutenant according to the Center on Pri-

seeking restrictions. ties said Friday. The system se- for the New York Police De- PATRICK SEMANSKY/ASSOCIATED PRESS vacy and Technology, which is- cured a match and revealed the partment cold case squad. The Capital Gazette covered the deadly shooting at its office. sued a 2016 report on it. In identity of the suspect. Privacy advocates are con- 2013, Maryland added images maintain benefits. He also is- The facial-recognition sys- cerned about the accuracy of for the technology to read. University Law Center. Several from driver’s licenses. Accord- sued an executive order saying tem performed as designed, the technology and whether Thirty-one states now allow police departments are also ing to the report, the system that Kentucky’s expansion of said Stephen T. Moyer, secre- police should be able to use police to access driver’s li- working with the private sec- includes seven million driver’s Medicaid under the Affordable tary of the state’s Department images of people who have cense photos for facial-recog- tor to add facial-recognition licenses and about three million Care Act would end if courts of Public Safety and Correc- never committed a crime. nition searches, according to capabilities to body cameras, mug shots. Police say a match strike down any of the tional Services. “It has been a Studies have also shown Afri- the Center on Privacy and which could allow police to can be used only as a lead, not changes. About 400,000 Ken- valuable tool for fighting can-American faces are harder Technology at Georgetown identify people in real time. a probable cause for an arrest. tuckians received coverage un- der the expansion. The plan was approved by the Trump administration in January. Auto Tariffs Could Drive Up The decision could have far- reaching implications because Medicaid, a health program for the poor and disabled, has be- Costs, Hit U.S. Jobs, GM Says come a battleground between the political parties as Repub- licans seek to put a more con- BY MIKE COLIAS Motor Co., which warned that ica, which would create jobs in servative stamp on health auto tariffs “would have a neg- Rust Belt states that helped care. General Motors Co. warned ative impact on all manufac- elect him. He also has com- Republican-led states are the Trump administration that turers,” increasing the cost plained of an uneven playing increasingly looking to impose tariffs on vehicle imports not only of imported vehicles, field. The EU, for example, has requirements on their tradi- would hurt its competitive- but also U.S.-built cars that a 10% tariff on vehicles im- tional Medicaid populations, ness, cost U.S. jobs and result use foreign-sourced parts. ported from the U.S. China im- including those living in pov- in “a smaller GM.” The White House in May poses a 25% duty on U.S. cars. erty, as well as beneficiaries In comments submitted to asked the Commerce Depart- GM’s comments on the pro- covered by the ACA expansion. the Commerce Department on ment to investigate whether posed tariffs represent some And they are in some cases Friday, the nation’s largest auto tariffs of up to 25% on im- of the strongest pushback yet moving toward imposing pre- maker by sales said tariffs the ported vehicles could be used on the tariff proposals by ma- miums, locking people out of administration has proposed on national- security grounds, jor auto companies, all of coverage for failing to pay and for auto imports would raise its citing a 1962 law that allows which face the potential of possibly drug-testing. costs and eventually lead to for emergency trade sanctions significant duties on imported Democrats say that this will higher prices for consumers. In in the event of a threat. The vehicles or components. result in many people losing turn, that likely would dent car administration used the same “The economic of coverage, and that it runs demand, which could lead to justification to impose tariffs companies like ours directly counter to the program’s goal job losses at auto makers and on steel and aluminum imports. supports the economic of expanding coverage and parts suppliers, GM said. President Donald Trump re- strength of the nation” and the providing a safety net. Repub- Other major auto makers peatedly has pressed both U.S. “security posture of the United licans say the requirements joined GM in comments to the and foreign auto makers to States,” GM said in its state- are necessary to avoid chronic department, including Toyota build more vehicles in Amer- ment. “We want to explain dependence on the program. how tariffs on auto imports Arkansas, Indiana and New may jeopardize them both.” Hampshire have received ap- The company said broad proval to impose work and U.S. trade barriers on vehicles community-service require- and auto parts would raise the ments, and a growing number company’s costs and hurt its of other states are seeking competitiveness against for- such permission. Arizona, eign auto makers. Kansas, Maine, Mississippi, Last year, about 36% of GM’s Ohio, Utah and Wisconsin are U.S. sales were imported, or among those hoping for ap- about 1.1 million vehicles, ac- proval from the Centers for cording to research firm LMC Medicare and Medicaid Ser- Automotive. More than 400,000 vices. of those were large pickup This month, Florida Gov. trucks built in Mexico, like the Rick Scott signed a bill requir- Chevrolet Silverado, GM’s big-

ing work requirements on JASPER JUINEN/BLOOMBERGgest NEWS seller and the largest con- many Medicaid beneficiaries. Chevrolets made by GM await export at Belgium’s Port of Zeebrugge. tributor to its bottom line. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A4 | Saturday/Sunday, June 30 - July 1, 2018 PWLC101112HTGKBFAM123456789OIXX ******* THE WALL STREET JOURNAL. U.S. NEWS Pressure New 1040 Enters World of E-Filers To Adjust Paper tax form is 79. It’s Shorter but There Are More Forms to Fill Out Unlike draft versions that ‘iconic,’ but 89% of The IRS released on Friday the new version of the Form 1040, the main form used in individual taxation. circulated this week, the new Capital households filed Here’s a guide to what changed: form retains the option for taxpayers to donate $3 to the electronically this year Front of form presidential election campaign fund. Gains BY RICHARD RUBIN 1 In some ways, filling out the form has become more BY RICHARD RUBIN The IRS tax form 1040 is an complex. The most frequently icon in transition. used items stay on the main WASHINGTON—Treasury For years, taxpayers fol- form while others get rele- Secretary , lowed the instructions and gated to six schedules. Taxpay- urged by conservatives to use carefully worked their way ers with any items on those his department’s regulatory down the form, using pens to supplementary forms—such as power to adjust capital-gains input information on the 1040 student-loan interest or edu- taxes for inflation, said he and mailing the paper to the cation tax credits—must com- would rather Congress con- government with a check or a plete those schedules, too. The sider the matter first. request for a refund. new law added other complex- In his first public comments Now, for most people, the ities, particularly for so-called on the subject, Mr. Mnuchin 1040 is a summary of answers pass-through businesses filing said in an interview the Thurs- to questions posed by soft- through individual returns. day he wouldn’t speculate about ware or a paid preparer that 3 Still, the Treasury said whether Treasury even has the doesn’t command the same most filers won’t have to jump authority to make the change. amount of direct attention through many additional “Consider that with obvi- from taxpayers. hoops. Among all filers, 65% ously other parts of Tax 2.0,” The form’s redesign, will have to file only the new, he said, referring to congres- prompted by the 2017 tax leg- simpler 1040 plus at most one sional Republicans’ effort to islation and by Republicans’ additional schedule, the Trea- extend and expand last year’s desire to deliver on their sury projects. tax cuts. “If we’re not able to promise of postcard-size fil- 4 The IRS is working on in- complete Tax 2.0, then we’ll go ing, was unveiled formally on structions for completing the back to the drawing board and Friday as President Donald Back of form tax forms, expected by late decide whether we want to Trump celebrated the six- summer or early fall. Getting consider this on a nonlegisla- month anniversary of the tax the form done now was impor- tive basis.” law. Because the 1040’s role in tant, Mr. Mnuchin said, to al- That broader tax-bill exten- the tax-filing process has low the IRS, software provid- sion seems unlikely to happen changed, the real-world im- ers and state authorities time this year, given Democratic pact of the shortened new to get ready for the filing sea- opposition and the almost cer- form may not be so drastic. 2 8 son starting in January 2019. tain need for Democratic votes “It’s vestigial,” said Robert A simpler tax code could in the Senate to pass it. 2 Kerr, executive vice president hinder the tax-preparation Currently, people who sell 5 of the National Association of business. H&R Block recently assets generally must pay cap- Enrolled Agents, tax experts li- 2 said it was closing 400 offices, ital-gains taxes on the nominal censed to practice before the 2 or about 4% of its company- difference between their pur- Internal Revenue Service. “The owned locations, as the tax chase and sales prices. That 1040 is this sort of iconic, 2 6 8 law reduces some complexity discourages people from sell- symbolic thing, but no one ac- and as people shift to digital ing and helps encourage them tually fills out a 1040 any- 7 tax preparation. to hold assets until death, more, so there’s a lot of en- 2 But many tax professionals when the gains aren’t taxed as ergy being consumed by a new say they don’t expect many income and the base value is 1040 without the more funda- people to shift from seeking reset for heirs. mental question of: So what?” assistance to attempting self- Consider stock purchased in The IRS says 89% of house- preparation as a result of the 1990 for $100,000 and sold to- holds filed electronically so far new form. High-income house- day for $300,000. The this year, including 72 million holds with complex finances $200,000 capital gain, taxed at depending on tax professionals and low-income households the top rate of 23.8% for such and 54 million filing electroni- trying to qualify for tax credits income, would yield a $47,600 cally themselves. The IRS has still face challenges. Moreover, tax bill. But, adjusted for one encouraged the shift to digital much of the underlying com- common measure of inflation, filing, which the agency says is 1 It’s smaller 2 Also, larger 3 Wordsinfront; 4 New tax law plexity of the tax code that the $100,000 original cost cheaper, faster and safer. The The old 1040 had 79 The new 1040 comes with numbers in back shrinks form drives people to accountants would instead be about numbered lines. The new six additional schedules, or The new front page includes Some items removed from government isn’t urging peo- one has just 23. That forms, that many taxpayers almost no financial the 1040 disappeared and computer programs hasn’t $197,000 today. The gain ple to go back to paper and ex- enabled the form’s designers will have to attach to the information. The signature because they were taken changed. would be $103,000 instead of pects digital filing to keep to get it onto a two-sided main form. Taxpayers with section is moved up front, out of the tax code. “I haven’t seen anything so $200,000 and the tax bill growing, Treasury Secretary sheet that fills up only the very simple finances won’t and nearly all the far that makes it seem like it would be $24,514. Steven Mnuchin said in an in- top half of a standard 8.5” need to worry about those, information about income, will be any easier to com- Conservatives have been by 11” piece of paper. but many people will. tax breaks and payments terview. goes on the back. plete,” said Karina Ron, direc- urging the administration to “We would hope that peo- tor of the United Way’s Center take the step on its own, say- ple don’t get lured into the 5 Also, new tax law 6 Vague entries 7 New shorthand 8 Breaks could go for Financial Stability in Mi- ing that the Treasury has the thought of filing a postcard,” expanded form There’s now a line labeled The old form, in bold, refers unclaimed ami, which assists more than authority to define cost and said Kathy Pickering, vice The new line 9 is the “other taxes,” which refers to the earned income credit. Deductions and other items 10,000 people with filing their that indexing would provide president of regulatory affairs deduction for qualified filers to Schedule 4, a grab That’s the main tax break that once appeared on the taxes. an economic jolt. business income, the 20% bag of items that includes that can provide net main form are now and executive director of the deduction for income earned taxes on high-income income-tax refunds to relegated to schedules. That The 1040 is an important Lawrence Kudlow, the Na- Tax Institute at H&R Block Inc. by pass-through businesses households, payroll taxes on low-income workers. The includes the student loan symbol, and creating a repre- tional Economic Council direc- “Sending that through the such as partnerships and certain tip income and the draft form calls it only EIC interest deduction and taxes sentation of fairness and sim- tor, has long backed the idea. mail would be a step back- S corporations. final year of the penalty for and doesn’t put it in bold. on household employees. plicity was a reasonable goal, Mr. Mnuchin said the ad- ward.” failing to purchase health said tax historian Joe ministration doesn’t have a insurance. Still, the updated form, to- Thorndike. position on indexing capital gether with tax-law changes Source: Internal Revenue Service THE WALL STREET JOURNAL. “They should have just gains. “There’s obviously a enacted in December, should changed the EZ into a post- benefit to taxpayers because it reduce the compliance burden decrease to 18 million from culating tax liability twice— Mr. Mnuchin said. card and declared victory,” he lowers the tax,” he said. on millions of taxpayers, Mr. 46.5 million, as a result of a would drop to about 200,000 The new 1040 will replace said. “The postcard aspiration “There’s obviously a revenue Mnuchin said. larger standard deduction, ac- from five million. the 1040, the 1040A and the is reasonable. But they should impact associated with that.” Many households will take cording to the congressional “Our objective is to make 1040EZ. The form is smaller have set the bar lower and Indexing would reduce fed- fewer steps to figure out their Joint Committee on Taxation. this simpler for taxpayers, and fits on a two-sided piece done a good job on a form that eral revenue by about $102 taxes under the new system. The number of people paying whether they’re doing it elec- of paper that is half the size of can be short rather than doing billion over a decade, accord- The number of households the complex alternative mini- tronically or whether they’re the previous version. It has 23 a really bad job on a form that ing to the Penn-Wharton Bud- itemizing deductions would mum tax—which requires cal- doing it on a physical form,” numbered lines, rather than shouldn’t be this short.” get Model.

following the announcement, Technology companies in Tech Shines implementation or the end of the S&P 500 have the highest Puerto Rico such a policy. share of overseas revenue of But some analysts warn the broad index’s 11 sectors, Braces for In Bumpy that the latest trade battle with a foreign-exposure level could play out differently, con- of about 59%, according to Budget Cuts Quarter sidering the Trump adminis- FactSet and BofA Merrill tration’s focus on protecting Lynch data. That is greater U.S. intellectual property and than the broader S&P 500, BY ANDREW SCURRIA ContinuedfromPageOne tech’s growing prominence in which gets about one-third of all-time highs in June. the global economy. its revenue from overseas and Puerto Rico’s federal super- The one-directional nature The Nasdaq on Monday indirect exposure via commod- visors said they would cut of the stock rally has left in- posted its biggest one-day de- ities, the bank added. government spending and vestors increasingly worried cline since April after reports Still, some investors have scale back economic-growth that a market whose gains suggested the Trump adminis- been viewing tech stocks as a projections after the U.S. terri- have been heavily dependent tration was planning to curb safety play, betting that com- tory’s legislature declined to on technology stocks could re- foreign investment in U.S. panies that have produced overhaul labor laws. verse sharply in the second technology firms. double-digit percentage gains The federal board oversee- half of the year. The tech sector’s high expo- this year will be able to con- ing Puerto Rico’s finances “A lot of the investing pub- sure to foreign revenue also tinue growing earnings even voted to cut bondholder pay- lic is piling into the same exposes it to swings in the for- under more restrictive global ments, university scholarships, things,” said Jim Paulsen, chief eign-exchange market: Should trade conditions. municipal subsidies and pub- market strategist at Leuthold the recent rebound in the U.S. Amazon.com Inc.’s quar- lic-employee bonuses after Group, who added that the dollar continue, that could terly profit topped $1 billion lawmakers didn’t adopt at-will

S&P 500 would be mostly flat hurt multinational companies ARUN SANKAR/AGENCEfor FRANCE-PRESSE/GETTY IMAGE the first time in the most employment laws designed to this year without technology whose goods will become more Investors flocked to tech companies like Facebook and Apple. recent quarter, while Face- spur hiring and economic companies. “There’s a lot of expensive to foreign buyers, book Inc.’s earnings soared growth. sheep following one another.” and overseas revenue will be dex’s market capitalization even after its user-data crisis. The revised fiscal frame- Technology avoided the tar- worth less when converted The Nasdaq comprised of defensive sectors, Even as investors say tech- work also leaves less money iff turmoil for much of the back into dollars. has fallen nearly 60% from nology firms as a whole appear for infrastructure investments quarter, including when Presi- “A lot of technologies are overcame an early 1991 through early June, ac- to be on more stable footing and for the island’s legislature dent Donald Trump imposed borderless,” said Tony Kim, slump to book its cording to the group’s data. than they were at the height of and judiciary. Funds available steel and aluminum tariffs on portfolio manager of the Black- That has increased the weight- the dot-com era in 2000, many for bondholders was slashed the European Union, Mexico Rock Technology Opportunities eighth straight gain. ing of highflying growth stocks remain cautious, citing the ten- to $14 billion over 30 years and Canada on May 31. Indus- Fund, who said of within the S&P 500, reducing dency for the stock market to from $39 billion, according to trial stocks in the S&P 500 fell protectionist policies against its overall effectiveness as a di- contract when it is led by just a the oversight board’s execu- 1.5% that day, as shares of China is one of the bigger per- utilities, consumer staples and versified portfolio for investors handful of outperformers. tive director, Natalie Jaresko. Boeing Co. and other multina- ceived risks for investors right health care—that investors who opt to passively track the “Whenever the market nar- Revising labor laws has tional manufacturers posted now. “Tech needs to be in a sta- have traditionally gravitated broad index, Mr. Paulsen said. rows like this and everyone been a priority for the over- losses, while the Nasdaq Com- ble environment, and this would toward during bouts of market The S&P 500 is “not the wants to own the same stocks sight board. Puerto Rico’s 40% posite suffered a modest 0.3% inject a sense of instability.” volatility. That has left some same index it was when your like the FAANG [Facebook, Am- labor participation rate is the decline. Any stumbles in tech-stock analysts concerned that inves- father bought it,” he added. azon, Apple Inc., Netflix Inc. lowest in the U.S., while youth Trade actions have had a prices could raise the risk of tors in index-tracking funds Yet some analysts worry and Alphabet Inc.] stocks, unemployment is 24%, more muted impact on tech stocks market contagion and wreak could be dangerously exposed that, with uncertainty swirling there is a feeding frenzy that than double the overall U.S. going back to 1995, according havoc on portfolios. to a pullback. over whether the U.S. will can go on for a while,” said rate, World Bank data show. to Bank of America Merrill Tech’s growing dominance The degree of defensiveness ratchet up trade tensions with Mike Balkin, a portfolio man- Puerto Rico owes roughly Lynch data that showed the has skewed the broader S&P within the S&P 500, which China, the EU and others, in- ager at William Blair. “When it $70 billion to bondholders and sector tends to be among the 500 away from so-called de- Leuthold Group calculated by vestors have mispriced the ends, it usually doesn’t end $50 billion in unfunded pen- best-performers in the 30 days fensive stocks—sectors such as using the percentage of the in- risk that the tech sector faces. well.” sion obligations. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. ****** Saturday/Sunday, June 30 - July 1, 2018 | A5 U.S. NEWS Democrats Face Process Without Filibuster Option

BY JOSHUA JAMERSON Committee, which will con- sider Mr. Trump’s pick to re- WASHINGTON—Justice An- place Justice Kennedy. “It is thony Kennedy’s retirement carved deep into our memory.” puts Democrats on the losing The majority party can end of a yearslong power change Senate rules with a struggle over the Senate’s fili- simple majority, and Demo- buster rules. crats in 2013 eliminated fili- If the Senate votes this fall busters for most presidential to fill Justice Kennedy’s seat, nominees because they said only a simple majority, likely Republicans blocked Mr. 50 votes in this case, would be Obama’s judicial appointments required to confirm President at an unprecedented rate. For- Donald Trump’s pick. mer Sen. Harry Reid (D., Nev.), Historically, Senate rules then the majority leader, engi- required a supermajority—60 neered the rules change with a votes when all members are parliamentary maneuver so —for most legislation controversial that it is often and presidential appointees to called the “nuclear option.” cabinet positions and other When the Democrats lost high-level roles. But Senate the chamber in the 2014 elec-

Republicans last year elimi- tions, Republicans saw no EUROPEAN PRESSPHOTO AGENCY nated the filibuster for Su- need to retaliate immediately President Trump with Justice after Justice was administered the judicial oath in April 2017. because Mr. Obama was still in the White House. But Senate generation in his choice of a toward precedent? And from a dozen senators to sound them Sen. Dianne Republican Leader Mitch Court List justice who will replace the my perspective, Roe v. Wade is out about the nomination, the Feinstein is McConnell’s decision to block bench’s most important swing an important precedent, and it official said. the top confirmation of Mr. Obama’s vote, but they must steer the is settled law,” Ms. Collins told The Democrats left the Democrat on Supreme Court nominee, Mer- Narrowed pick through a slender Senate reporters. Thursday meeting indicating the Senate rick Garland, until after the majority that allows little room She also said that she be- that they had pressed Mr. Judiciary 2016 election gave Mr. Trump for error. lieved Mr. Trump should con- Trump to chart a middle path. Committee. the power to fill it. To Five Senate Majority Leader sider a broader swath of candi- “I stressed the importance of When the Democrats fili- Mitch McConnell (R., Ky.) has dates than the 25 vetted by nominating someone to the Su- bustered Mr. Gorsuch’s nomi- to lock down the support of at leaders of the conservative Fed- preme Court who is pragmatic, preme Court picks, after Dem- nation last year, Senate Re- ContinuedfromPageOne least 50 senators, with a GOP eralist Society and the fair, compassionate, committed ocrats did the same in 2013 publicans voted to remove abortion rights. Judiciary Com- bloc of 51 that includes one Foundation for ideological reli- to justice, and above politics— for lower-court judges and ex- another element of the minor- mittee Chairman Chuck Grass- senator fighting brain cancer, ability, and that she didn’t think traits that match Justice Ken- ecutive-branch posts. ity party’s power to exert in- ley (R., Iowa), and Democratic John McCain of Arizona, as “any outside group should de- nedy and which I know are im- Democrats knew in 2013 fluence in the chamber, elimi- Sens. Joe Donnelly of Indiana, well as several others who have termine the list of nominees.” portant to North Dakotans,” that their power play could nating filibusters on Supreme Heidi Heitkamp of North Da- shown themselves willing to For many of Mr. Trump’s al- said Ms. Heitkamp. come back to haunt them, as Court nominees. That paved kota and Joe Manchin of West buck their party in the past. lies, the prospect of remaking In a subsequent video posted their Senate majority could the way for the swift elevation Virginia also met with the pres- Opponents of the adminis- the Supreme Court has been on Facebook Friday, she said eventually evaporate. Never- of Mr. Gorsuch to the high ident, the White House said. tration have already sought to their priority, and they are she’s made progress. “The pres- theless, most remain raw to- court. “At the end of the day, this is center the debate on such jockeying to promote their fa- ident assured me he wants to day about the fact that Mr. Mr. McConnell had foreseen where confirmation is made or flashpoint issues of abortion vorites on the list of 25, includ- look at someone that could gain Trump was able to place Neil such a day. In 2013, as minor- broken,” a White House official and health care, arguing that ing Judges Amy Coney Barrett, a wide amount of support.” Gorsuch on the Supreme Court ity leader, he warned Demo- said, referring to the senators any candidate on Mr. Trump’s Allison Eid, Thomas Hardiman, Each of the Democrats in the with support from fewer than crats that both parties could who visited Thursday night. list will be too extreme. , William group that met with Mr. Trump 60 senators—and only because change the Senate rules. Mr. Manchin said in a radio Ms. Collins said Thurs- Pryor and Amul Thapar. voted for a previous conserva- the Republican majority didn’t “If you want to play games, interview Friday he believed day she would be wary of a Inside the White House, the tive Supreme Court pick of the allow a vote to fill the late An- set yet-another precedent that Mr. Trump would face stiff Sen- nominee committed to over- person running the search pro- president’s, Neil Gorsuch. But tonin Scalia’s seat when he you’ll no doubt come to regret. ate resistance for picking a turning the 1973 Roe v. Wade cess is Mr. Gorsuch replaced the late died in 2016, during Barack I say to my friends on the “hard-core” nominee, and that decision that broadly estab- Don McGahn. He has already , an iconic con- Obama’s presidency. other side of the aisle: You’ll opposition to the Roe v. Wade lished a constitutional right to compiled extensive records on servative, and so his appoint- “For us, on this side, it was regret this,” he told Democrats decision would raise “red flags abortion. the 25 candidates—millions of ment didn’t change the makeup a humiliation,” said Sen. Di- on the Senate floor, “and you for all Americans.” “One of the questions that I documents in total, a White of the court, and the Demo- anne Feinstein, the top Demo- may regret it a lot sooner than Mr. Trump has an opportu- always ask is, do they respect House official said Friday. cratic votes didn’t make or crat on the Senate Judiciary you think.” nity to remake the court for a precedent? What is their view Mr. McGahn has called about break his confirmation. California Shields Makers Of Soda From Local Taxes

BY ALEJANDRO LAZO

SAN FRANCISCO—State lawmakers banned all local taxes on groceries for 12 years in California on Thursday, a major victory for the soda in- dustry, which used the state’s ballot-initiative system to force legislators’ hands. The ban was signed into law by Gov. Jerry Brown after it was rushed through the state Legislature. Lawmakers said they had no choice but to pass the tax ban as they were faced with the threat of a sweeping ballot initiative backed by the soda industry that would have made it more

difficult to raise all local CHRISTOPHER LEE/BLOOMBERG NEWS taxes. Lawmakers acted to prevent ballot initiative’s sweeping tax ban. A business group behind the ballot measure, supported the beverage industry used the ers of soda taxes reacted an- in part by the soda industry, threat of the ballot measure grily to the vote, calling it the pulled the initiative from the restricting local taxes as a result of a backroom deal cut November ballot after the gro- means of swaying them. by lawmakers and the bever- cery tax ban passed. The measure, if approved age industry. The King’s Chest San Francisco, Berkeley and by voters in November, would “This is one of the worst Oakland already have enacted have required local tax in- pieces of legislation I have Emperor Zafar’s Jewelry Casket soda taxes, which public-health creases to get the backing seen in more than 30 years groups say help reduce sugar of two-thirds of voters, in- spent fighting for better consumption. The new law stead of the simple majority health for kids and families,” Royal provenance. Mughal rarity. won’t affect those measures, that is now required, among said Nancy Brown, the chief Incredible workmanship. This immensely but blocks soda tax proposals other restrictions. executive of the American rare Mughal jewelry casket is believed in four other California cities. The beverage industry Heart Association. “This is definitely one of the hailed the soda-tax ban as a The Service Employees In- to have belonged to the last Mughal toughest votes I am going to win for consumers. ternational Union helped bro- Emperor, Bahadur Shah Zafar, and have to take—another example ker the deal with the business features dozens of compartments of how special interests hijack group behind the ballot mea- and secret hiding spaces. There exist our political system,” said The measure bans sure, called the California almost no examples of surviving State. Sen. Ricardo Lara, a Los Business Roundtable. The deal Mughal furniture. This fact, combined Angeles-area Democrat who re- all local taxes on was reached ahead of a Thurs- luctantly voted for the ban. groceries statewide day deadline for any ballot with its imperial provenance, make this The beverage industry has measure to be pulled before it casket a historically significant antique fought soda taxes, which have for12years. officially went on the Novem- from the Mughal Empire. Circa 1840. 1 3 also passed in Philadelphia and ber ballot. 31 /2”wx20”dx23/4”h. #30-6489 Seattle, with multimillion-dol- In a statement, the union lar campaigns and by marshal- “Our aim is to help working said it was still committed to ing local business interests. families by preventing unfair taxing soda and sugary bever- View a video of this jewelry casket at rauantiques.com In California, the beverage increases to their grocery ages, but had sought to pro- industry prevailed using the bills,” said William M. Der- tect communities from having relatively new tactic of getting mody Jr., a spokesman for the services cut if the ballot mea- a state legislature to block lo- American Beverage Associa- sure had gone through. cal measures taxing soda and tion, which represents dozens In a statement, Mr. Brown other groceries. Similar pre- of drinks companies such as said that while only four of emption laws have passed in Coca-Cola Co. and PepsiCo Inc. California’s cities had been Arizona and Michigan. Busi- He said the industry was considering a soda tax, the 630 Royal Street, New Orleans, Louisiana • 888-767-9190 • [email protected] • rauantiques.com ness groups in Oregon and committed to helping “Califor- ballot measure, which he Washington state are support- nians reduce sugar consump- called “an abomination,” Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry. ing ballot measures that would tion in ways that don’t cost wouldhaveaffectedallofthe Backed by our unprecedented 125% Guarantee, we stand behind each and every piece. pre-empt local grocery taxes. jobs or hurt the small busi- state’s 482 cities. Fears over To prevail in California, nesses that are so important the ballot measure had out- where Democrats control state to local communities.” weighed support for soda government, lawmakers said Health groups and support- taxes, he said. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A6 | Saturday/Sunday, June 30 - July 1, 2018 ****** THE WALL STREET JOURNAL. WORLD NEWS Europe Raises Barriers to Immigration EU summit deal calls to Europe. It is now essential to swiftly implement what we for detaining some agreed on,” Mr. Kurz said. asylum seekers even The concept is inspired in part by a model long used by before they arrive Australia, which turns back all migrant boats and sends them A stricter approach to ille- to third-country centers run gal migration in the Mediter- by local authorities. This tough ranean region agreed at a policy has prompted interna- summit on Friday marks a fun- tional outrage, Ms. Collett damental shift for the Euro- said, but has curbed mass mi- pean Union, which three years gration and prevented people from drowning at sea while By Bojan Pancevski trying to reach Australia. in Berlin and Valentina European leaders, mindful Pop in Brussels of Australia’s experience, agreed to have the centers in ago had to deal with the ar- third countries operated by rival of more than a million United Nations entities. The people from Africa and the bloc also pledged €500 million Middle East. (about $580 million) to sup- The shift, which drew pro- port African countries in man- tests from human-rights cam- aging migration and to create paigners, envisions sending a new fund to help the bloc most asylum seekers who at- boost border security. tempt to reach the bloc’s A prototype “disembarka- shores back to transit zones in tion platform” center already North Africa and placing the exists in the Tunisian port of ones who make it to EU terri- Zarzis, run by the Red Cres- tory in closed centers in coun- cent and the U.N. High Com- tries such as Greece and Spain. missioner for Refugees, the

The deal, which still lacks MAHMUD TURKIA/AGENCE FRANCE-PRESSE/GETTYglobal IMAGES body working to protect many details, was reached Libyan security forces carrying a baby’s body Friday after an inflatable dinghy sank off the country’s coast in al-Hmidiya, east of Tripoli. displaced people. thanks largely to frantic efforts Vincent Cochetel, special by German Chancellor Angela cron said. envoy of the UNHCR for the Merkel, who is under pressure Ebbing Wave European plans for shifting Central Mediterranean, tenta- politically, and Italy’s new anti- the processing of asylum tively endorsed the EU plans Arrivals in Greece and Italy have decreased dramatically since EU agreements with Turkey and Libya to immigrant government. French claims to African countries and said detaining immigrants President Emmanuel Macron take back migrants, but the influx of asylum seekers is still creating political problems within the EU. were proposed as early as was admissible under EU law. brokered a compromise among Monthly migrant arrivals Annual asylum applications by country 2003 by Britain, but they were “Detention is not what we roughly a dozen countries will- long considered unpalatable, wish for the majority of peo- ing to help Italy under the con- 250 thousand 800 thousand said Elizabeth Collett, director ple, but in some circumstances dition that migrants be de- of Migration Policy Institute it would be necessary in order Germany Rest of EU tained to ensure they don’t 200 Greece Europe, a think tank. The new to repatriate some people,” leave for other countries. 600 deal shows how much opinion Mr. Cochetel said. He said that Questions abound as to the has shifted following the mi- more than 70% of asylum legal and logistical feasibility 150 gration crisis and the rise of claims of people who have of such camps. “We have man- 400 populist movements across crossed the Mediterranean get aged to reach an agreement in 100 the continent. rejected, but they don’t get re- the European Council but this The deal was partially influ- turned after reaching Europe. 200 is in fact the easiest part of 50 enced by a proposal from Aus- Others were more critical. the task compared to what Italy Greece Sweden trian Chancellor Sebastian “EU leaders have signed off waits us on the ground when Italy Kurz, one of Ms. Merkel’s main a raft of dangerous and self- we start implementing it,” 0 0 European critics, who on Mon- serving policies which could said European Council Presi- 2015 ’16 ’17 2008 ’17 ’08 ’17 ’08 ’17 ’08 ’17 ’08 ’17 day is set to assume the rotat- expose men, women and chil- dent Donald Tusk, who hosted Sources: International Organization for Migration (arrivals); Eurostat (asylum) THE WALL STREET JOURNAL. ing EU presidency. dren to serious abuses,” said the two-day summit. “This is a crucial step. Only if Iverna McGowan from Am- Though the number has times with deadly conse- dead after a boat capsized off come magnets for crowds of we ensure that people who have nesty International, a human- fallen off, thousands of mi- quences. An estimated 1,000 the Libyan coast. migrants seeking asylum in been rescued at sea are brought rights advocacy group. “This grants from the Middle East, people have died in perilous African nations have been Europe as well as targets for to third countries can we de- policy would be a far cry from Africa and South Asia continue passages across the Mediterra- reluctant to host what the EU jihadist groups. stroy the business model of the EU’s founding principles of to try to reach Europe’s shores nean this year alone. On Fri- calls “disembarkation plat- “There are many fears, and smugglers and massively reduce solidarity and respect for hu- to escape war and poverty, at day, 100 migrants were feared forms,” fearing they could be- they are legitimate,” Mr. Ma- the number of refugees coming man rights.” EU Adopts Tougher Approach

ContinuedfromPageOne many’s own borders. Since the latter option would have al- most certainly brought her government to a fall, she launched a frantic diplomatic campaign last week that laid the groundwork for Friday’s deal on the former. “No asylum seeker has the

right to choose which country STEPHANIE LECOCQ/EPA/SHUTTERSTOCK he will apply in,” Ms. Merkel Austria’s Sebastian Kurz and Germany’s Angela Merkel in Brussels. said Friday, in newly tough- ened rhetoric. to bury the hatchet. An agree- ernment doesn’t want to take Putting a brave face on her ment might not come un- migrants, said he was pleased shift, she said managing to til Monday. with the agreement because bridge “extremely different Friday’s deal capped a grad- migrants would be distributed views” on migration policy ual reversal of Ms. Merkel’s on a “voluntary basis”—not in was an important achieve- liberal refugee policy. Pro-ref- forced relocations, as Ms. ment. The deal, she added, “is ugee groups in Germany and Merkel previously advocated. an important step in the right beyond have accused the Ger- Austria’s conservative Chan- direction [but] we are not yet man leader of abandoning cellor Sebastian Kurz cele- at the end of the road.” principles to retain power. brated Friday that Ms. Merkel Ms. Merkel admitted that “Refugees will in the future and others had accepted the her domestic troubles acted as have hardly any chance to ap- proposal for detention camps, “an encouragement to come to ply for asylum on European which he has long championed. a substantial solution.” soil,” said Ska Keller, German “Finally there is support from She faces pressure from In- co- of the Green Parties all sides for what we de- terior Minister Horst Seehofer, group in the European Parlia- manded already in 2015,” Mr. who is also chairman of the ment. European leaders “are Kurz said. Christian Social Union, the Ba- pursuing a far-right agenda. More liberal politicians also varian sister party to her expressed satisfaction with the larger Christian Democratic deal. French President Emman- Union. Ms. Merkel had been uel Macron, who played a sig- The CSU is itself being nificant role in brokering the squeezed from the right by the handed an ultimatum agreement, lauded the achieve- anti-immigrant Alternative for by her conservative ment of “a European solution.” Germany party, or AfD, whose “Many had predicted that rise was fueled by the migrant coalition partners. no agreement would be found influx three years ago. and national measures would Polls show the AfD is sap- prevail,” he said. ping votes from the CSU ahead But this will not weaken the Mr. Macron, who has styled of Bavarian elections in Octo- right—on the contrary.” himself as the continent’s new ber and suggesting Ms. Under the deal, arriving asy- pro-European voice and deal Merkel’s allies will lose their lum seekers would be kept in maker, could now see his absolute majority in the state new detention centers in mem- standing rise. legislature. ber countries along the Medi- Ms. Merkel has been on the CSU Deputy Chairman Man- terranean Sea, such as Greece defensive since an uninspiring fred Weber told German media and Spain, and potentially in election victory in September, he welcomed the deal. “She Africa as well, until their asy- when she scored her party’s delivered,” he told the Bavar- lum claims are reviewed. worst result since 1949. It took ian newspaper Münchner EU leaders signaled willing- her six months of on-again, Merkur. He said the CSU had ness to resettle migrants from off-again negotiations to form “shaken up Europe. This is a the centers to other nations of a coalition. great success.” the bloc, but the agreement “We have had the worst Ms. Merkel was expected in doesn’t require member coun- election results of all time,” coming days to brief politi- tries to accept them. The clause Mr. Seehofer said in a tele- cians of her coalition partners, making that clear was de- vised interview before the the CSU and the center-left manded by Central and Eastern summit. “After such an elec- Social Democratic Party, on European countries that have toral defeat, one cannot con- the deal reached in Brussels. opposed obligations to share tinue with the same policy.” The parties’ executive bodies the burden of hosting migrants. —Laurence Norman, Emre will meet separately on Sun- Polish Prime Minister Ma- Peker and Matthew Dalton day before deciding whether teusz Morawiecki, whose gov- contributed to this article. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. ******** Saturday/Sunday, June 30 - July 1, 2018 | A7 WORLD NEWS Mattis Seeks U.S. Envoy’s Son Touts Trump Ties BY JAMES T. AREDDY

To Assure Japan SHANGHAI—A son of the American ambassador to Bei- jing used his connections to On North Korea President Donald Trump this week to drum up business for his public-relations firm. BY GORDON LUBOLD Onodera, in what amounted to Eric Branstad, a son of Am- a broader statement of support bassador Terry Branstad, and TOKYO—Defense Secretary for the Japanese government the U.S. Commerce Depart- Jim Mattis sought to assure during the high-stakes negotia- ment’s liaison to the White Japan that the U.S. wouldn’t tions with North Korea over its House until January, spoke on overlook its security concerns missile and nuclear programs. Thursday in Shanghai to more in negotiations with North Ko- The pin commemorates the than 100 lawyers, bankers and rea, by highlighting a small blue 17 Japanese citizens who To- advisers at a seminar titled pin worn by his Japanese coun- kyo says were abducted in the “How to React To (Potential) terpart in a meeting on Friday. 1970s and 1980s by North Ko- US-China Trade War?” As the U.S. and North Korea rea. After five abductees were Mr. Branstad highlighted his work toward a deal on denu- returned in the early 2000s, personal relationship with Mr. clearization, concessions by Tokyo has sought the repatria- Trump and plans for his firm to the U.S., including the suspen- tion of at least 12 more. Their open a China office, attendees sion of major military exer- fate remains unknown, a U.S. said. cises in the region, have official in Tokyo said. It isn’t unusual for former alarmed officials in Tokyo who During his summit with U.S. government officials to fear their security interests North Korean leader Kim Jong visit China dangling the keys to XINHUA/ZUMA PRESS could be sidelined. Un in Singapore in June, Presi- understanding Washington, and Eric Branstad, a son of Ambassador Terry Branstad, spoke to a gathering in Chicago in 2017. Prime Minister Shinzo Abe dent Donald Trump expressed ethics rules don’t appear to bar has called for the international hope on behalf of Japan that Mr. Branstad from doing so. In his travels to Shanghai Department that as of May 14 it An earlier attempt by the community to maintain a hard the North would return the But such a move could raise the and Beijing this week, Mr. Bran- would act as a subcontractor to family of a Trump administra- line on North Korea. abductees. appearance of ethical conflicts, stad was representing Mercury the global law firm Hogan tion official to promote busi- Mr. Mattis, on his seventh Meanwhile, U.S. officials are experts say. Public Affairs LLC, a Washing- Lovells on matters involving ness in China backfired. trip to the region, often uses awaiting the transfer of the Mr. Trump is upending long- ton communications firm he ZTEatarateof$75,000a When family members of Mr. such visits to assuage allies’ remains of more than 250 standing U.S.-China ties that he joined in February as managing month for three months. In Trump’s son-in-law and adviser, anxieties. During a meeting American service members has criticized as cozy and director weeks after leaving June, the U.S. Senate voted to , visited Beijing with his Japanese counterpart held by North Korea since the harmful to American interests. U.S. government service. At his reinstate the ZTE ban. Hogan and Shanghai in May 2017 offer- Itsunori Onodera, Mr. Mattis Korean War. His administration imposed presentation, Mr. Branstad said Lovells declined to comment. ing chances to earn a U.S. visa ticked off talking points about That transfer, which was tariffs on Chinese goods that Mercury plans to soon open an by investing in the importance of the U.S.- part of the agreement between are set to begin on July 6; Bei- office in China, attendees said. apartments that family-owned Japanese military alliance. But Messrs. Trump and Kim in jing says it will retaliate. Mr. Branstad “is well versed In China, Eric Kushner Cos. was developing then he drew attention to the Singapore, was expected to Mr. Branstad endorsed Mr. in the ethical obligations he has the political backlash was swift. pin on Mr. Onodera’s suit take place days ago. But North Trump’s challenges to China as a former member of the Branstad sought to The company later issued an jacket. Korea lacks the capacity to re- while onstage with a colleague, Trump administration and has drum up business apology for any suggestion it “I note with respect the blue turn the remains, including but his efforts to build his own been scrupulous in adhering to was benefiting from ties to the lapel pin you wear, and we’re proper containers, U.S. officials business in the country ap- the high standards he sets for for his PR firm. White House, and to cancel the with you,” Mr. Mattis told Mr. said, contributing to the delay. peared to hinge on his personal himself,” Mercury partner Mi- participation of Mr. Kushner’s connection to the president, the chael McKeon said. sister during the final leg of the attendees said. “It was this Mercury, a division of Om- Scott D. Williams, a Shanghai China fundraising tour. whole splash about how they nicom Group Inc., recently be- investment broker and co- Mr. Branstad’s actions didn’t met Donald Trump,” said Rich- gan representing a Chinese founder of the organization that violate ethics rules unless his fa- ard Chenel, a Shanghai-based telecommunications equip- sponsored Mr. Branstad’s pre- ther encouraged him to tout ties private-equity investor who at- ment maker that has been in sentation, said the event was in- to the U.S. government, said tended the presentation. the crosshairs of the U.S. gov- tended to provide insight into Walt Shaub, former director of Mr. Chenel said he had ernment: ZTE Corp. the Trump administration’s the Office of Government Ethics. hoped to gain an understanding On May 13, Mr. Trump set in China policy at a time when Still, he said: “The culture of the of how trade tensions might af- motion a reversal of a Com- business people are wondering federal government has always fect investments. He said he merce Department prohibition whether tensions between been that if you’re in a sensitive was disappointed that Mr. on ZTE’s access to U.S. suppli- Washington and Beijing will be- post like ambassador... you Branstad’s primary message ers over allegations the com- come a full-blown trade war. would strongly discourage your was that Mr. Trump supports pany broke U.S. law. Mr. Trump Eric Branstad was an early family members from going American workers. tweeted his determination to fundraiser for Mr. Trump. He there for business purposes.” The U.S. Embassy in Beijing work with Chinese President Xi joined the administration as it —Rebecca Ballhaus declined comment. The White Jinping to get ZTE “back in began raising pressure on China. and Brody Mullins in House didn’t immediately re- business, fast.” His father was a long-serving Washington and Zhang

TOMOHIRO OHSUMI/PRESS POOL spond. Reached by email, Mr. Mercury subsequently said Iowa governor who first met Chunying in Shanghai Defense chiefs Itsunori Onodera and Jim Mattis in Tokyo Friday. Branstad declined to comment. in a filing with the U.S. Justice China’s president, Mr. Xi, in 1985. contributed to this article.

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A8 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. WORLD NEWS WORLD WATCH

THAILAND Search for Trapped Mexicans See Chance for Change Team Is Fraught Polls show leftist The race to rescue a dozen boys and their soccer coach López Obrador far from a rain-flooded Thai cave ahead in Sunday’s complex is turning into a wrenching technical challenge presidential race just to find them. As heavy rains continue, spe- BY JUAN MONTES cialists from Thailand, the U.S. AND JOSÉ DE CÓRDOBA and Britain are poring over maps and assessing infrared images, MEXICO CITY—Andrés Ma- while cave divers struggle under- nuel López Obrador, the heavy ground. The boys, ranging in age favorite to win Mexico’s presi- from 11 to 16, and their 25-year- dential election on Sunday, has old coach entered the Tham Lu- traveled the country for the ang cave network June 23. last 15 years preaching one —James Hookway consistent message: Mexico has been looted by its ruling LATVIA class and he is the only politi- cian serious about stopping it. ECB Official Faces That message, along with Bribery Charges voter dissatisfaction over the country’s murder epidemic The Baltic nation’s central- and modest economic growth, bank governor was charged with has secured the leftist politi- taking bribes of half a million cian an average lead in polls of euros, escalating a probe that some 25 percentage points has deprived the European Cen- over his closest rival. If those tral Bank of one of its top offi- numbers are borne out in Sun- cials, prosecutors said Friday. day’s vote, he would have the Ilmars Rimšēvičs, who sits on biggest margin of victory in a the ECB’s 25-member rate-setting

Mexican presidential race ALFREDO ESTRELLA/AGENCE FRANCE-PRESSE/GETTY IMAGES committee, denies the allegations. since the 1980s. Presidential candidate Andrés Manuel López Obrador greets supporters earlier this week. He has campaigned against corruption. —Tom Fairless “Mexico’s main problem is corruption. Corruption must PRI, are on the run, under in- ster Demotecnia. JAPAN be cleaned like stairs are, from vestigation or in prison on Political Killings different parties hasn’t rein- A López Obrador victory the top down,” the 64-year-old charges ranging from embez- forced democratic culture in ar- would end the nearly century- Government Caps former Mexico City mayor zlement to money laundering. Fuel Pessimism eas where powerful political long streak of rule by the PRI Overtime Hours says at rallies. All have denied wrongdoing. families continue to fight for and the conservative National That hits home in a country Mr. Peña Nieto was tangled power,” said Etellekt director Action Party, or PAN, which Parliament tightened limits ranked 135 out of 180 coun- in scandal in 2014 when it Since September, 130 politi- Rubén Salazar. governed from 2000 to 2012. on overtime hours, responding tries in the corruption-percep- emerged the first lady was cians have been killed in Mex- The killings reinforce a Some polls also show Mr. to concerns about karoshi, or tion index of Transparency In- buying a $7 million mansion ico, according to a recent study sense of pessimism in Mexico, López Obrador’s National Re- death by overwork, and seeking ternational, worse than Sierra from a company that had won by Etellekt, a risk-analysis con- where swaths of the country generation Movement, or Mo- to improve productivity in a Leone and alongside Russia millions in contracts handed sulting group. The bulk of the remain under the bloody sway rena, and two smaller allies country where long hours are of- and Paraguay. out by her husband as gover- crimes were committed by lo- of criminal gangs fighting turf have a shot at winning a ma- ten more a custom than busi- While corruption has been nor and president. He denied cal party bosses trying to fight wars. In 2017, homicides rose jority in the legislature, some- ness necessity. a problem for decades, a wrongdoing, but his image off rivals, the study found. to the highest level since re- thing no Mexican president The legislation, a priority of string of scandals in recent never recovered. “Having presidents from cords began in 1997. has had in more than 20 years. Prime Minister Shinzo Abe, won years under President Enrique “Mexicans are fed up with Mr. López Obrador has final approval Friday in parlia- Peña Nieto has left voters in- corruption and impunity,” said vowed to pay more attention ment. It limits overtime work to creasingly disillusioned with Juan Pardinas, head of govern- the PRI at roughly 20%. 2006 and 2012. to the economy, and some of less than 100 hours a month traditional parties, opening ment-accountability group Pollsters say between 40% Still, pollsters express little his plans, such as building oil and less than 720 hours a year, the door for the antiestablish- IMCO. and 50% of Mexicans decline doubt he will win this time. refineries and trying to and it sets penalties for compa- ment Mr. López Obrador, who An average of polls puts Mr. to take part in surveys, and “López Obrador has domi- achieve food self-sufficiency, nies that violate the limits. vowstoallocatesavingsfrom López Obrador at about 50% some 20% of voters remain nated the campaign from be- signal a bigger state role. Until now, employers could ending corruption to social of the vote, with conservative undecided, so a López Obrador ginning to end, and the ques- “López Obrador deserves an effectively ask employees to programs for the poor. Ricardo Anaya, who has faced victory isn’t a sure thing. tion now really is how opportunity,” said José Luis work without limit if workers’ Ten former state governors his own corruption allega- Mr. López Obrador has nar- weakened the opposition will Salas, a taxi driver in Mexico unions and management agreed from Mr. Peña Nieto’s Institu- tions, in second at about 25% rowly missed winning the be after the election,” said Ro- City. “We can’t be worse than to it, which they often did. tional Revolutionary Party, or and José Antonio Meade of presidency twice before, in drigo Galván, the head of poll- now.” —Megumi Fujikawa Canada’s Growth Slowed in April Trudeau Gets a Boost From BY PAUL VIEIRA mists at Royal Bank of Canada. als production—which incor- On a one-year basis, the Ca- porates steel and aluminum— OTTAWA—Canadian eco- nadian economy increased climbed 2.7%. Canadians After Trump Spat nomic growth slowed in April, 2.5% in April. That marks the Canadian steel makers as weather-related weakness— slowest 12-month advance warned this week that sales to notably in the retail sector— since February of last year. the U.S. have plunged recently, BY PAUL VIEIRA offset a healthy gain in manu- There has been much trepi- following the Trump adminis- facturing. dation about the Canadian eco- tration’s tariff move. Canada is OTTAWA—The rancorous Canada’s gross domestic nomic outlook, as trade uncer- America’s largest supplier of Group of Seven summit in product increased 0.1% in tainty has escalated with the foreign steel. Canada in June laid bare a April from the previous month Trump administration’s deci- An unusually cold April— split between the Trump ad- to a seasonally adjusted 1.772 sion to impose tariffs on Cana- coupled with an ice storm that ministration and its Western trillion Canadian dollars dian-made steel and aluminum. hit central Canada—weighed allies, but it produced a politi- (US$1.336 trillion), Statistics In the GDP report for April, on some sectors in the month. cal boost for the host, Prime Canada said. This compares Statistics Canada said the fac- Retail trade fell 1.3%, and Minister Justin Trudeau. with a 0.3% advance in March. tory sector was the main con- food services and drinking Mr. Trudeau had been strug- Market expectations were tributor to growth in the places dropped 0.9%, the big- gling in the Canadian court of for GDP in April to remain un- month, up 0.8%. gest one-month decline in public opinion for months, changed from the previous Machinery manufacturing over four years. Construction dragged down in part by mis- month, according to econo- rose 2.8%, while primary met- also fell 0.5%. steps on his recent trip to India and his backing of a crude-oil pipeline to the Pacific Coast. Weather But now, the country has Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. rallied around the leader amid a public rift with President 60s Edmontondt <0 0s Donald Trump. Mr. Trump’s CHRIS WATTIE/REUTERS VancouverV CalgaryC garary attacks have given the prime Justin Trudeau’s image reflected in a monitor at an event in Ottawa. 60s 10s 70s Winnipegp 70s minister a chance to stick up Seattle 20s for Canada—something Cana- In the latest Nanos weekly PorPPortlandd Montreal 80s Helenal 30s Bismarckk Ottawa dians love—as well as a politi- Heading North tracking poll, published June Eugeneg 60s Billings 90s AugustaA g t 40s cal lifeline ahead of the elec- 26, the Liberals opened up a 5- i Canadian Prime Minister Justin 70s Boise 80s TorontoT 50s Pierre Mpls./St.p s./St.s// PaPaul AlbanyA banyb Bostont tion in the fall of 2019. Trudeau's approval ratings have point lead over the Tories, 50s Hartfordrtford 60s 90s 70s Milwaukeek Detroitt Buffalol “There’s a long history of bounced back in recent polls holding on to 37% support. 60s Siouxoux Fallsll Newew YYorkk ChicagoChicCh g ClevelandCleveCl l d 70s Canadians not wanting to be “The reality is whenever the Reno Saltltt LakeL CCityCity Dess Moines after falling earlier this year. Cheyenney PhiladelphiaPhilh d lp hi 80s pushed around by the U.S.,” Liberal government has been Sacramento Indianapolis Pittsburghg Omahah Springfieldpg 50% 70s 80s Denver Washingtonhihingtongton D.C.D C 90s said Robert Wolfe, professor focused on its domestic agenda, Sann Francisco ColoradoC d Topeka Kansas CharlestonCharlesCh l t Springsp g City Richmondh d 100+ emeritus at the policy-studies June 8–9 the numbers have floated Las St..Lou LouisL G-7 summit 100s VVegas Wichitahit LouLLouisvilleill school at Queen’s University, 45 around a lot,” said Nik Nanos, Nashvilleh ill Raleighgh LosA AngeAngelesl 80s 90s CChCharlotte l tt in Kingston, Ontario. president of Nanos Research. 100s Santaanta Fe Memphishi 70s AlbuquerqueAlb qq AAtlantat ColumbiaC b PPhoenixh i Warm Rain Before the Trump adminis- 40 “But when it comes to advanc- San Diego 80s Little Rock TucsonTuc tration’s decision in late May ing Canadian interests with the 100s DllDallas Birminghamgh Ft. Worth Cold ElP Paso T-storms to impose tariffs on Canadian- U.S., for the Liberals it’s a clear Jackson Mobileb 80s JJacksonvillek made steel and aluminum, Mr. 35 win for Justin Trudeau.” 50s AustinA 100s Houstont Stationary Snow Neweww Orleans Orlandoldd Trudeau was trailing the Con- Mr. Trudeau has tried to 70s TaTampap 80s SannA AntonioAt i servative Party in the polls for 30 stay above the fray since the 60s AnchorageA h g Honolulull Miami Showers Flurries the first time since his 2015 G-7 summit. “I think my ap- 70s victory, according to polling proach on the [U.S.-Canada] Ice 25 from Nanos Research. Support relationship has been very ’17 ’18 June U.S. Forecasts Today Tomorrow Today Tomorrow for his Liberal government fell much aligned with what Cana- City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W to 33% in late May, Nanos said. Source: Nanos Research polls of 1,000 dians expect of me. You know, s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Omaha 89 69 t 83 68 s Frankfurt 85 59 pc 80 57 s Canadians; margin of error: +/– 3.1 pct. pts. t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice That was a reversal follow- be firm about defending Cana- Orlando 88 74 t 91 75 t Geneva 87 64 pc 90 65 s Today Tomorrow dian values and Canadian in- Philadelphia 95 77 s 99 78 pc Havana 87 72 pc 88 72 pc ing a long honeymoon. For the City Hi Lo W Hi Lo W Phoenix 104 79 s 105 81 s Hong Kong 92 84 pc 92 83 sh bulk of his first 18 months in May that the government terests, but always look to Anchorage 63 52 c 68 54 pc Pittsburgh 93 71 s 93 73 s Istanbul 81 69 pc 78 70 t office, polls showed Mr. would take over the troubled have a constructive relation- Atlanta 88 71 t 85 70 t Portland, Maine 85 67 t 83 63 pc Jakarta 90 75 pc 91 74 pc Trudeau’s Liberal government project, at a cost of $3.5 billion. ship that will benefit Canadi- Austin 100 75 s 102 73 s Portland, Ore. 77 60 pc 75 56 pc Jerusalem 80 63 s 83 66 s Baltimore 94 70 s 98 72 pc Sacramento 103 63 s 93 58 s Johannesburg 68 40 s 68 43 s with the backing of more than Then came the U.S. tariffs. ans and the nature of our Boise 84 59 pc 85 57 s St. Louis 96 77 s 94 73 pc London 82 63 pc 84 63 pc 40% of voters. He was quick to blast the lev- closely integrated economies,” Boston 93 73 s 88 69 s Salt Lake City 81 61 s 88 66 s Madrid 83 62 pc 84 60 s The decline was months in ies as “insulting” and “absurd” Mr. Trudeau said recently. Burlington 89 73 t 94 74 pc San Francisco 82 61 pc 78 60 pc Manila 87 78 t 87 78 t Charlotte 92 71 s 91 70 pc Santa Fe 91 59 s 91 62 pc Melbourne 55 41 sh 58 42 pc the making. Mr. Trudeau’s and promised retaliation. Mr. Larry Deters, a 74-year-old Chicago 97 79 s 92 73 t Seattle 67 56 pc 69 53 pc Mexico City 75 54 t 76 54 t weeklong trip to India in Feb- Trudeau vowed at the end of retired government worker from Cleveland 94 74 s 94 76 pc Sioux Falls 76 62 t 79 62 s Milan 93 69 s 87 68 s ruary was widely panned for the G-7 summit that Canada Regina, Saskatchewan, said he Dallas 99 78 s 100 79 s Wash., D.C. 95 76 s 98 78 pc Moscow 78 63 t 77 62 t Denver 73 50 t 89 56 pc Mumbai 86 79 sh 87 79 t photo ops featuring his family “will not be pushed around” generally supports the left-lean- Detroit 96 75 pc 95 77 pc International Paris 89 70 s 91 65 pc in traditional Indian garb, by the U.S. on trade, after Mr. ing New Democratic Party. But if Honolulu 88 74 pc 87 75 pc Rio de Janeiro 81 69 s 80 68 s Today Tomorrow which political analysts said Trump warned retaliation an election were held today, Houston 9877pc9876s Riyadh 109 82 s 110 84 s City Hi Lo W Hi Lo W Indianapolis 93 76 pc 91 75 pc Rome 86 66 s 85 66 s was in poor taste. would be a “mistake.” amid the trade uproar, Mr. De- Kansas City 95 73 pc 85 68 s Amsterdam 80 60 s 80 59 s San Juan 87 79 s 88 77 s Meanwhile, he managed to On Twitter, Mr. Trump fired ters said Mr. Trudeau would Las Vegas 103 82 s 106 84 s Athens 87 72 s 89 70 pc Seoul 81 71 r 76 72 r offend both environmentally back, calling the Canadian have his vote. “If it would have Little Rock 96 74 s 98 74 s Baghdad 107 81 s 110 84 s Shanghai 85 78 r 87 78 t Los Angeles 76 61 pc 76 62 pc Bangkok 93 80 t 94 80 pc Singapore 86 76 c 84 76 c conscious voters and people de- prime minister “meek,” “weak,” been me, I would have gone af- Miami 89 77 t 90 76 t Beijing 99 70 pc 93 71 s Sydney 68 46 s 61 49 s pendent on the oil sector when and “very dishonest.” He threat- ter Trump and called him what Milwaukee 91 76 s 86 70 t Berlin 70 50 s 67 50 s Taipei City 97 80 pc 97 80 c for months he didn’t weigh in ened more tariffs, this time tar- I think he is, whereas Trudeau Minneapolis 86 68 t 82 68 s Brussels 84 61 s 81 59 s Tokyo 8876pc8876pc Nashville 94 73 pc 90 74 pc Buenos Aires 60 50 pc 64 46 t Toronto 94 70 s 94 75 s on a dispute over expanding geting Canada’s auto sector. The has handled him like a gentle- New Orleans 93 79 t 92 78 t Dubai 109 89 s 106 88 s Vancouver 66 56 pc 68 54 pc the oil pipeline. Mr. Trudeau attack and threat from Mr. man. But at the same time he New York City 94 78 s 98 77 pc Dublin 70 54 pc 73 58 pc Warsaw 6851pc6352sh then further angered his pro- Trump sent Mr. Trudeau’s pop- didn’t back down. That was big Zurich 84 56 pc 81 54 s Oklahoma City 92 70 t 90 72 t Edinburgh 68 49 pc 72 51 pc gressive base when he said in ularity on an upswing. for me,” Mr. Deters said. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | A9 OBITUARIES

GEORGE LINDEMANN DONALD BRINCKMAN 1936 — 2018 1931 — 2018 Cellphone, Cable Bets CEO Turned Safety-Kleen Enriched Investor Into Wall Street Darling s an entrepreneur, George Greenwich, Conn., and Palm Lindemann was unpredict- Beach, Fla. His 183-foot sailing A able. After joining his fa- yacht Adela won the 1997 Atlantic ther’s cosmetics and pharmaceu- Challenge race from New York to BY JAMES R. HAGERTY told the Chicago Tribune later. “I ticals empire in the late 1950s, he Cornwall, England. He collected wasn’t impressed when I found built up and then sold companies art, including German expression- t was a grubby business: help- out, but Milwaukee’s not that far, in businesses including contact ists. He and his wife, Frayda, sup- ing auto-repair shops clean so I drove up to take a look.” lenses, cable television, mobile ported a young artist develop- I oily tools and parts. Still, Don- Tighter regulation of hazardous phones and natural-gas pipelines. ment program at the ald Brinckman saw potential. chemicals in the 1970s and beyond Mr. Lindemann made bold Metropolitan Opera in New York. In 1968, he was looking for new made Safety-Kleen’s service even long-term investments and gener- Never a seeker of publicity, he products that could be sold by the more appealing. Customers could ally reaped substantial profits endured a painful period in the Chicago maker of automotive parts rely on its expertise rather than when he sold businesses. Forbes 1990s when one of his sons, where he worked as a vice presi- figuring out how to comply with estimates the family’s net worth George Jr., was convicted of fraud dent. He visited a tiny Milwaukee the rules on their own. at $3.3 billion. One minor setback and sentenced to 33 months in company making a parts-washing Safety-Kleen, based in Elgin, Ill., was a short-lived business im- prison for his role in the electro- machine consisting of a red wash- became a separate company in porting fine French wines of the cution of a show horse named tub mounted atop a barrel filled 1974 and went public in 1979. It is type he enjoyed. Charisma that triggered an insur- with solvent. now owned by Clean Harbors Inc. He worked from an office in ance payment. Mr. Brinckman envisioned a na- Mr. Brinckman expanded into the General Motors building in The elder Mr. Lindemann died tionwide business. His employer recycling motor oil—collecting, re- New York, overlooking Central June 21 in Greenwich. He was 82. agreed to pay about $185,000 for fining and selling used oil— Park. He owned trophy homes in —James R. Hagerty the firm, Safety-Kleen Corp. As through the 1987 acquisition of CEO of Safety-Kleen, Mr. Brinck- Breslube Enterprises of Breslau, man turned it into an international Ontario. That business grew more company that recorded profit in- When they showed up to service slowly than expected as falling oil JAMES GIPS creases of at least 20% annually the washtubs, Safety-Kleen reps prices reduced the value of recy- 1946 — 2018 for 18 consecutive years in the used the opportunity to sell oil fil- cled oil. 1970s and 1980s and became a ters and other products to shop Employees driving trucks to ser- Wall Street darling. owners. vice parts-washers remained the Rather than selling washers, “Sure, it’s simple,” he told Forbes core of the business. On a business Professor Helped Safety-Kleen provided them to cus- in 1981, referring to his business trip, Mr. Brinckman once spotted tomers on a fee basis, charging for model, “but what could be simpler one of those employees napping in regular visits to service the de- than a hamburger, and look what a Safety-Kleen truck. The CEO Disabled Use Cursors vices and replace solvents. It pro- McDonald’s did with that.” tapped on the window and intro- vided a similar service to factories, duced himself. The employee ex- paint shops and dry cleaners. The onald Wesley Brinckman pressed disbelief, and then began ames Gips, a computer-sci- put Ms. Nash off. She insisted: company also moved into recycling was born March 17, 1931, in apologizing. Mr. Brinckman ence professor at Boston Col- “You have to try my son on this.” motor oil. D Chicago and grew up in Park laughed, told the driver not to J lege, didn’t know exactly She kept calling almost every day Laidlaw Environmental Services Ridge, Ill. His mother was a hair- worry, then enjoyed telling the where he was heading in the early until he gave in. Michael quickly Inc. bought Safety-Kleen in 1998 dresser and his father an executive story for years. 1990s when he and two colleagues showed he could use the technol- for about $1.8 billion, more than at Jewel Tea Co., a grocer. As a Growth slowed in the 1990s, and devised technology allowing peo- ogy to communicate, create art 9,700 times the price Mr. Brinck- boy, Donald worked as an usher at Mr. Brinckman wanted to take the ple to control a computer cursor and play games. He was able to man negotiated decades earlier. Wrigley Field, home of the Chicago company private. An initially hos- by moving their eyes. A possible attend public schools and gradu- “Make no small plans,” he often Cubs. He earned a bachelor’s de- tile bid from Laidlaw ended up application was computer games. ated from high school in 2002. told colleagues. Mr. Brinckman died gree in business and an M.B.A. at winning shareholder support. After In Marshfield, Mass., Kathy The professor, who died June June 11 at a hospital near his sub- Northwestern University. selling Safety-Kleen, Mr. Brinck- Nash spotted a TV report on the 10 at age 72, spent years refining urban Chicago home. He was 87. Chicago Rawhide Manufacturing man became an investor and board product, EagleEyes. It involves at- the technology to help disabled In his early days at Safety-Kleen, Co., a onetime maker of buggy member at Heritage-Crystal Clean taching electrodes to skin around people escape locked-in lives. The Mr. Brinckman scrawled detailed whips that had transformed itself Inc., a rival company founded by the eyes so they can pick up elec- EagleEyes technology is now plans for expansion on a sheet of into an auto-parts company, hired Joseph Chalhoub, a former presi- trical signals generated by eye owned by a nonprofit, the Oppor- graph paper big enough to cover a him in 1960 and later gave him a dent of Safety-Kleen. movements and relay them to a tunity Foundation of America. conference-room table. He was de- role in finding new products. He is survived by his wife of 64 computer. It would be perfect, Ms. Dr. Gips is survived by his wife, termined to dominate the market The parts washer was invented years, Beverly, a sister, five chil- Nash thought, for her teenage son the former Barbara Thompson. before copycats could catch on. in the mid-1950s by Ben Palmer, dren, 11 grandchildren and a great- Michael, whose severe disabilities His survivors also include two Later, smaller rivals found it impos- who worked at a gravel pit. When grandchild. left him virtually paralyzed. children and a grandson. An ear- sible to match Safety-Kleen’s econo- Mr. Brinckman heard about the Dr. Gips doubted EagleEyes lier marriage ended in divorce. mies of scale and expertise in han- contraptions, “I had a hard time Read a collection of in-depth would help Michael and tried to —James R. Hagerty dling hazardous wastes. understanding what they did,” he profiles at WSJ.com/Obituaries

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© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6376 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. IN DEPTH

back. Mr. Thomas no longer times when he doesn’t have a the Pushka Inn here. Her tip ‘Diplomat’ plays for the Celtics. Which is good reason. In the last few was a Red Sox shirt with the why Mr. Conley was able to buy years, he has given away ap- name of Hanley Ramirez, who the shirt for $4.99 at his local parel in Wellington, New Zea- was recently cut by the team. Gives Away sporting goods store. land, and the Demilitarized Zone “Maybe I can wear it as a The gifts elicit all sorts of between North and South Korea, dress,” Ms. Chinakaeva said. reactions. Some people smile. where he gave the parents of a Mr. Conley occasionally Boston Gear Many are confused. Others 2-year-old girl a tiny jersey of splurges on what he considers have been so touched they have retired Red Sox star David Ortiz. to be a deal. He blew $9.99 on a ContinuedfromPageOne broken down into tears. He doesn’t build his inven- Boston College sweatshirt be- sporting events—not just mar- Jamie Bell, director of the tory overnight. Mr. Conley, who fore coming to this World Cup quee competitions like the New Zealand Cricket Museum, also goes by the title “Clearance and looked for a special oppor- Olympics and World Cup, but met Mr. Conley at the 2015 Ambassador,” typically stocks tunity to give it away. Then he also the Irish hurling champi- Cricket World Cup. His first re- up months before he travels, found it: He figured Russian onship and Cricket World Cup. action was bewilderment: He visiting stores a few times a President Vladimir Putin might

Wherever he goes, he brings wasn’t expecting to hear a man GREG CONLEY week to inspect sales bins. His attend Russia’s match in his na- a jam-packed suitcase. It’s with an unmistakable Boston An Iranian soccer fan wears a Boston Celtics shirt at the World goal price point is $4.99. tive St. Petersburg. stuffed with cheap Boston accent watching cricket among Cup given to him by Greg Conley, the ‘Discount Diplomat.’ Most of the items he pro- Mr. Conley raced to get sports gear that nobody from the Kiwis. After he sold Mr. cures are branded the Celtics, ready. He scribbled a note say- Boston wants and that he gives Conley a ticket to the next tional Olympic pin-trading. In- every event. He was here in Red Sox, New England Patriots ing spasibo—thank you in Rus- away to strangers thousands of day’s England versus New Zea- spired by that custom, he Russia for seven days, so he la- or Boston Bruins. He’s not op- sian—to Mr. Putin for hosting miles away from Fenway Park land match, Mr. Bell was brought some Boston apparel ments he had to limit himself to posed to gear from Boston Col- the games. He put the note and and the Boston Garden. stunned to receive a gift in ad- to thank a Japanese family who doling out only five gifts a day. lege or Harvard University. Fre- the maroon sweatshirt in a Invariably, Mr. Conley finds, dition to cash: the Boston Red hosted him during the 1998 Mr. Conley’s haul fit into half of quently, the recipients have brown paper bag. The stadium “somebody’s looking at them Sox jersey of Shane Victorino, Olympics in Nagano. his suitcase. For other events, never heard of these teams. was under heavy security and like, ‘What’re you wearing a who had hardly played for the What began as a casual en- he’s brought so much clothing Mr. Conley has learned to ac- Mr. Conley had no hope of ac- Bruins shirt in Krasnodar, Rus- team during the previous sea- deavor turned into an elaborate he had to ship it ahead of time. cept one reality of the discount tually reaching Mr. Putin, who sia for?’ ” he says, adding: “It’s son due to injury. “I thought he operation over the years. He Once on site, he distributes rack: The leftovers don’t always didn’t wind up attending the easy, it’s inexpensive and it’s was mad,” Mr. Bell said. has now been to 17 Olympics, his Boston attire to bus drivers, come in common shapes and game. Still, Mr. Conley gave his impactful.” Mr. Conley attended his first nine World Cups, six track and cabbies, train conductors, sizes. He tells people that tiny unlikely present to a St. Peters- Mr. Conley’s gear is from the international sporting event in field championships, three nurses, hotel maids, bartenders, shirts are for their children, burg Stadium official, who deepest, cheapest bargain bins 1988, the Winter Olympics in Ryder Cups, two European soc- waiters and, if they’re lucky, and he advises that enormous promised to try to deliver the he can find. The jersey shirt he Calgary, and was quickly cer championships, and a Tour someone just walking by. shirts make excellent pajamas. Boston College sweatshirt to its gave to the Iranian man, for ex- hooked. Later that year, at the de France, among other events. Sometimes it is to express On a recent morning, he intended recipient. ample, had the name and num- Summer Games in Seoul, he He aims to bring approxi- gratitude for someone who gave wanted to thank Galiya China- Mr. Conley hasn’t heard back ber of Isaiah Thomas on the was awe-struck by the tradi- mately 35 articles of clothing to him directions. There are other kaeva, a 34-year-old waitress at from Mr. Putin. Tycoon’s Death Is a Mystery ContinuedfromPageOne same thing. Our dad was a pac- ifist and would have trouble squashing a bug.” The senior Mr. Sherman had everything to live for, his grown children said: He cele- brated the recent birth of his grandchild, a girl, and was looking forward to the mar- riage of his youngest daughter. He had been selected to be in- ducted into the Order of Can-

ada, the country’s second-high- GREG HENKENHAF/DEBBIE HOLLOWAY/TORONTO SUN/POSTMEDIA NEWS/POLARIS, MARK BLINCH/REUTERS est civilian honor. Left: Barry Sherman, founder of Apotex, Inc., and his wife, Honey. Right: The Sherman siblings, Lauren, Jonathon, Alexandra at a memorial service for their parents. The day after the bodies were found, the Sherman sib- selves, and for us, and for so and boss as a socially awkward thrashing and contortion, lings—Lauren, Jonathon, Alex- many others.” Scene of the Crime but friendly scientist who which mark such deaths. andra and Kaelen—hired Brian The family’s grief was am- loved unraveling competitors’ The photos showed another Greenspan, a leading defense plified by Mr. Sherman’s Toronto police are following 580 leads in the investigation into the drugs in the lab. clue inconsistent with a sui- lawyer, to find out how their cousin, Kerry Winter, who told deaths of Canadian billionaire Barry Sherman and his wife, Honey. Some of Mr. Sherman’s ri- cide, these people said: The parents died. British and Canadian media six Their bodies were found on Dec. 15, inside the couple's 12,000 vals, especially those who had belt loop around Mr. Sherman’s Mr. Greenspan in his 44- weeks after the memorial ser- square-foot house. One of the initial theories was a murder-suicide been targets of his lawsuits, neck didn’t appear to extend year law career had repre- vice that Mr. Sherman had carried out by Mr. Sherman. said in interviews that the far enough from the railing to sented some of Canada’s most twice approached him years Apotex founder was aggressive provide the force he would famous defendants, including earlier to “whack my wife,” al- and vindictive in his legal at- need to kill himself. supermodel Naomi Campbell, legedly because he was un- tacks—once personally deliver- On Dec. 20, five days after who struck a plea agreement in happy in his marriage. ing a court order to a competi- the bodies were found, police 2000 on Toronto assault Mr. Winter later failed a tor’s office. and forensics experts contin- charges. televised lie-detector test while When Canada’s health min- ued to scour the house and The lawyer urged the Sher- repeating the allegations about istry tightened policies for new grounds. They had not yet mans to refute the murder-sui- Mr. Sherman. A lawyer for Mr. drug applications in 2015, Apo- ruled out homicide. That day, cide idea, and the siblings is- Winter declined to comment. tex’s law firm served lawsuits the Greenspan team’s forensic sued a statement hours later: Last fall, Mr. Winter had lost to some of the ministry’s staff pathologist, David Chiasson, “We are shocked and think it’s a lengthy court battle claiming at their homes. completed his own autopsies of irresponsible that police he, his two brothers and a sis- Apotex engaged in hun- the Shermans. sources have reportedly ad- ter-in-law were entitled to a dreds of lawsuits against com- After examining Mr. Sher- vised the media of a theory share of Mr. Sherman’s fortune. petitors and the Canadian gov- man, the pathologist ques- which neither their family, The Winter family alleged Mr. ernment. tioned whether the belt found their friends nor their col- Sherman had deprived them of He was involved in lawsuits on his neck was the cause of leagues believe to be true.” benefits after he purchased against multinational pharma- his death, people familiar with The police had been called their father’s business decades ceutical companies, which chal- the matter said. Dr. Chiasson The bodies of the Shermans were found seated next to each other by their to the Sherman home after a earlier. indoor pool, legs outstretched with belts tied around their necks to a railing. lenged with mixed success his also spotted marks on their real-estate agent saw the bod- A little more than a week right to market generic ver- wrists that suggested their ies. Mrs. Sherman had marks before the Sherman deaths, a If Mr. Sherman had strangled himself, why were his legs aligned so neatly sions of their brand drugs. Mr. hands been had been tied. on her face and Mr. Sherman judge ordered Mr. Winter and with no signs of thrashing? Sherman told author Jeffrey The Greenspan team came didn’t. his three relatives to pay There appeared to be signs that the Shermans had their wrists tied. Robinson in the 2001 book to believe that the crime scene There were no signs of $300,000 for Mr. Sherman’s le- “Prescription Games” he was had been staged, the people forced entry at the house, and gal costs. Ms. Sherman had marks on her face, but Mr. Sherman didn't. surprised branded drug compa- said, and was likely the work of police suspected from the start Reporter Bob McKeown The belt around Mr. Sherman's neck appeared cinched too short to allow nies hadn’t murdered him. hired professionals. that Mr. Sherman had stran- asked Mr. Winter during a Feb. enough force for strangulation. “The thought once came to On Jan. 24, the lead investi- gled his wife and then hanged 6 TV interview for the Cana- my mind, why didn’t they just gator for the Toronto Police himself, said people familiar dian Broadcasting Corp. hire someone to knock me Department operation, Detec- with the matter. Authorities whether he killed the Sher- off?” he said in the book. “For tive Sgt. Susan Gomes, met gave no motive. mans. a thousand bucks paid to the with Dr. Chiasson. Jonathon Sherman and his “I had nothing to do with right person you can probably Two days later, Ms. Gomes three sisters believed the idea it,” Mr. Winter said. “I don’t get someone killed.” told a packed room of report- of a murder-suicide was “un- know who did it.” ers at police headquarters that substantiated and wrong- the killings weren’t a double minded,” Mr. Sherman told The Private eye suicide or a murder-suicide. Wall Street Journal in a writ- A full life The Sherman home wasn’t The couple had, in fact, been ten response to questions. On Dec. 12, three days be- gated, but security cameras strangled by one or more per- Mr. Greenspan put together fore his body was found, Mr. pointed outside. The 12,000 petrators. “The Shermans were a team to conduct a private in- Sherman joked about a drug square-foot house had been targeted,” Ms. Gomes said. vestigation of the couples’ planned for launch in two de- listed for sale at more than $5 People familiar with the in- deaths on behalf of the Sher- cades, recalled Jeff Watson, million. Real-estate agents vestigation said that conclu- man siblings. His group would Apotex president. “I’ll be 95 could enter the house using a sion was reached not long be- grow to include a pathologist then,” Mr. Sherman told a door key kept in a lockbox that, fore the news conference. The and three former homicide de- group of his executives. police said, could be thwarted. precise reasons are unclear. tectives who directed a dozen The following day, the cou- When the housekeeper came Mr. Sherman told the Jour- forensic specialists. ple met at Apotex’s offices in to work early on Friday, Dec. nal that police would likely The story broke big in Can- North Toronto around dinner- There were no signs of forced entry. 15, she kept to the first floor. have stuck to the possibility ada. Many asked the same time to review plans for their The Sherman home had security cameras pointed to the outside. Around midmorning, a real-es- that his father killed his questions: Why would Mr. sprawling new mansion in the The house was for sale and had a lockbox with a key inside tate agent arrived with pro- mother and then himself if not Sherman kill his wife and him- city’s Forest Hill neighborhood. that allowed access for real-estate agents. spective buyers. for the family’s efforts. “We self? How did he do it? And if Mr. Sherman had reluctantly As the visitors toured the have tried to be patient and Mr. Sherman didn’t commit the agreed to leave their home of Source: Based on people familiar with the investigation and police statements. top floor, the agent moved to understanding,” he said. crime, then who did? 30 years, a friend said, per- Illustrations: Siemond Chan/The Wall Street Journal THE WALL STREET JOURNAL. the lower level to show the in- Mark Pugash, a spokesman More than 6,000 family, suaded by his wife that they door pool. After seeing the two for Toronto police, said police friends and employees at- needed more room to host ing time and money to such many of its successful prod- slumped bodies, the agent ush- had been investigating three tended a memorial for the cou- their family and to hold chari- causes as health care and Holo- ucts. It is now a global busi- ered the others away. theories all along: a double sui- ple on Dec. 21, packing a mas- table events. caust education, according to ness with 11,000 employees Mr. Greenspan’s private in- cide, a murder-suicide and a sive convention center near Mrs. Sherman drove home, people who knew them. and $2.1 billion in total revenue vestigative team later spotted double homicide. He said police Toronto’s airport. Many wept. while her husband lingered at Mr. Sherman earned an ad- last year, the firm said. clues at the poolside crime evaluated evidence from autop- “Even though Barry worked the office for a few hours to vanced degree in aeronautics Mr. Sherman’s net worth scene from police photos. The sies, witness statements as long hours throughout his life, answer emails on his Black- and astronautics at the Massa- last year was estimated at Shermans were next to each well as the crime scene before he was always available to give Berry. He finished around 8 chusetts Institute of Technol- $3.58 billion by Canadian Busi- other in an eerie tableau, their reaching their conclusion. his children emotional support, p.m. and left his office to drive ogy. During summers, he had ness, an online magazine. Yet legs stretched out on the tiled Investigators are pursuing either during the day, or in the the 12 miles home. worked for Louis Winter, the he drove an older, rusting Ford floor, the belts holding them up 580 leads, he said. They are middle of the night,” said Joel No one at Apotex was uncle who owned a small To- Mustang and often dressed in by the neck, according to peo- wading through Mr. Sherman’s Ulster, one of Mr. Sherman’s alarmed when Mr. Sherman ronto generic-drug company. the same rumpled outfit: black ple familiar with the case. business ties, as well as his oldest friends. failed to show up at work the When Mr. Winter died, Mr. pants, shirt and white lab coat. The private team was struck personal investments and hun- “You were like a lock and next day. A colleague said he Sherman abandoned the aero- He typically worked 10-hour by the position of Mr. Sher- dreds of lawsuits. key,” Jonathon Sherman said of was a poor sleeper who came nautics field and returned to days and weekends. man’s legs, said people close to No suspects have been pub- his parents at the service, in late or occasionally worked Toronto to run the company. Jack Kay was appointed the case. They wondered how licly identified. “each pretty useless on your from home when fatigued. He eventually sold the busi- chief executive of Apotex after his legs could have been neatly “I don’t think we’ll ever own. But together, you un- The Shermans were a well- ness and founded Apotex in the death of Mr. Sherman. He aligned if he had strangled know what happened,” Mr. Kay locked the world for your- known Toronto couple, donat- 1974, personally formulating described his longtime friend himself. There were no signs of said. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | A11 OPINION

THE WEEKEND INTERVIEW with William Messenger and Jacob Huebert | By James Taranto The Lawyers Who Beat the Unions

Washington words, “lobbying is not say, ‘Hey, this union—sign he Supreme Court closed chargeable—unless you’re this card,’ and, ‘Oh yeah, its term this week with lobbying for the enforce- by the way, you’re going to what Jacob Huebert calls ment or ratification of the go meet with the union or- T “a perfect decision for collective-bargaining ganizer in 30 minutes, ev- worker freedom.” In a agreement.” erybody is going to sign.’ landmark First Amendment case, For public workers, Mr. It’s a very coercive kind of the justices ruled 5-4 Wednesday Janus and his lawyers ar- setup.” He offers an anal- that the government may not au- gued, the entire distinction ogy: “Imagine if the state thorize labor unions to exact fees was spurious. When the of Texas said: Anyone who from public employees who choose people on the other side of wants to own a firearm, not to join. the negotiating table are youhavetogodowntothe For six years, in a series of ma- government officials, Mr. National Rifle Association, jority opinions written by Justice Messenger says, “collective attend a 60-minute meet- Samuel Alito, the court had sig- bargaining is basically like ing[to]getyoutojointhe naled that such a decision was in lobbying,” or like “peti- NRA. The ACLU would be the offing. It was widely expected tioning the government for screaming bloody murder.” in 2016, when a similar case was redress of grievances”—ei- (The American Civil Liber- heard. Then Justice Antonin Scalia ther of which is a “core ties Union had stayed out died, leaving the court with a 4-4 First Amendment activity.” of these labor cases until deadlock. The vacancy apparently In this view, requiring a this year, when it filed a prompted a change in the unions’ government employee to friend-of-the-court brief litigation strategy, the ironic result pay an agency fee is the urging the justices to re- of which was that Wednesday’s equivalent of forcing him ject Mr. Janus’s First KEN FALLIN case, Janus v. American Federa- to take an oath against his Amendment claim.) tion of State, County, and Munici- conscience. When it comes to tilting pal Employees, arrived more “Everything a public- the field in favor of unions, quickly than it otherwise might sector union does is politi- Mr. Messenger says, “Cali- have. cal,” Mr. Huebert says. Illi- William Messenger (left) and Jacob Huebert. fornia seems like they keep Mr. Huebert, 39, is director of nois’s Afscme Council 31, inventing new things.” The litigation for the Liberty Justice which he calls “an incredibly influ- grabbed a share of their subsidy as thought Abood wassafe.Afterthe same day the court decided Janus, Center, a public-interest law firm in ential force in state politics,” has dues or agency fees. Friedrichs fizzle, Mr. Messenger Gov. Jerry Brown signed a state Chicago. He and Bill Messenger, 43, spent years “deadlocked” in nego- As in Knox, the issues Harris says, Afscme “moved to dismiss” budget with a provision that “the of the National Right to Work Legal tiations with Republican Gov. raised were too narrow to require Janus, “which is different than timing of the mandatory orienta- Foundation led the team that won Bruce Rauner. “They’ve been advo- a reconsideration of Abood. But in what they did in all the other cases, tions is not public record—it can’t the case on behalf of Mark Janus, a cating not only increased pay and a 5-4 decision against the SEIU, where they tried to drag it out.” be disclosed to the public,” in Mr. Springfield, Ill., social worker. increased benefits, but also in- Justice Alito delivered a scathing The Seventh U.S. Circuit Court of Messenger’s words. An earlier law creased taxes,” Mr. Huebert says. critique of the 1977 ruling, which Appeals granted the motion to dis- provides that “the names, contact “That’s part of the bargaining— he called “questionable on several miss in March 2017, so the case was information, of public employees is Vindication for the First that they tried to get the governor grounds.” Among other faults, he ready for the Supreme Court. This not a public record, and can only Amendment rights of to join with them in advocating for wrote, the justices who decided February Mr. Messenger faced a be given to a union.” higher taxes.” Under Abood, the Abood had “seriously erred” in in- nine-member court, including Jus- Another tactic that burdens public employees was a union could still fund that activity terpreting earlier cases, “funda- tice Neil Gorsuch. workers’ First Amendment rights long time in coming, and with money from dissenters like mentally misunderstood” one of The result was everything is to permit them to rescind union Mr. Janus. them, and “failed to appreciate” Messrs. Janus, Messenger and membership only during a brief states are still trying to rig The first creaks in Abood’s foun- the difference between public- and Huebert could have hoped for, annual window. “So if the card their laws against workers dation were heard in 2012. A Na- private-sector unions, as well as save a wider majority than 5-4. says an individual can only revoke tional Right to Work lawyer went “the conceptual difficulty of distin- The high court unequivocally re- between Dec. 25 and Jan. 5,” Mr. who don’t want to join. before the justices to argue a case guishing” chargeable expenses jected the idea the unions’ inter- Messenger says, “the public em- called Knox v. Service Employees from nonchargeable ones in the est in collecting what they call ployer must keep taking the International Union, which chal- government context. He added that “fair share” fees trumps a non- money, no matter how much the A state employee, Mr. Janus, 65, lenged what Mr. Messenger calls “a critical pillar of the Abood member’s First Amendment employee complains.” Sometimes had declined to join the union for “an obnoxious scheme by the SEIU Court’s analysis rests on an unsup- rights. “Petitioner strenuously ob- the card doesn’t even inform the political reasons. “Mark’s view,” in California.” The union had im- ported empirical assumption.” jects to this free-rider label,” Jus- worker of this date limitation: In Mr. Huebert says, “is that the posed a “special assessment” on tice Alito wrote. “He argues that Hawaii and New Jersey, the win- things that Afscme has advocated members and nonmembers alike lthough near collapse, Abood he is not a free rider on a bus dow is codified into statute. have gotten Illinois into the bad fi- for “a political fight-back fund” to A was still binding on the headed for a destination that he nancial shape that it’s in.” But un- oppose three 2006 ballot measures lower courts, meaning that wishes to reach but is more like a ecause of tactics like these, der Illinois law, Mr. Janus was still backed by Gov. Arnold unions were assured of winning person shanghaied for an un- B even a favorable Supreme required to pay Afscme a so-called Schwarzenegger. When nonmem- any challenge at the district and wanted voyage.” Court ruling doesn’t neces- agency fee—78% of regular union bers complained, Mr. Messenger appellate levels. Justice Alito and Importantly, the court also held sarily end the matter. After the dues—to help cover its collective- says, the SEIU promised to “refund his colleagues seemed to be invit- that public unions can collect fees justices decided Harris, Mr. Mes- bargaining expenses. the money after the campaign’s ing precisely that: a case they only from employees who “affirma- senger petitioned the courts for The rationale behind agency over, in the next dues cycle. So ba- could use to overturn Abood. One tively consent” to pay them. Mr. the refund of some $32 million in fees is that a union-negotiated sically, it’s like a forced loan for a possibility was Janus, which was Messenger explains: “The unions fees the SEIU had wrongly col- raise or benefit goes to all employ- political campaign.” launched in 2015 when Gov. take the position that it’s not a lected from home-care workers. ees, so a nonmember who doesn’t The justices held 7-2 that this Rauner petitioned a federal court First Amendment injury unless the Even after losing in court, the pay for that representation is a scheme was unconstitutional. Be- to approve his executive order individual complains about it.” union took the position that non- “free rider.” Unions also engage in cause it clearly involved non- banning agency fees. The court Since Harris, for instance, some members were entitled to a refund political activities, including candi- chargeable political activity, the held that the governor lacked states have continued collecting only if they individually requested date endorsements and election- case didn’t implicate Abood. But standing to bring such a claim, but agency fees from home-care work- one. The Seventh Circuit agreed, eering, but in an agency shop only Justice Alito, in a majority opin- it allowed the case to proceed with ers, refunding the money only if and in January Mr. Messenger ap- fees from members can be used for ion joined by four colleagues, crit- Mr. Janus as lead plaintiff. the nonmember demanded it. pealed the case, Riffey v. Rauner, that. The high court imported this icized Abood as having been de- A different legal challenge “Knox sharply criticized the idea of to the Supreme Court. concept from the private to the cided “without any focused reached the justices first. On Jan. objection requirements,” Mr. Mes- On Thursday the justices va- public sector in a 1977 case, Abood analysis.” 11, 2016, they heard arguments in senger says. Janus struck them cated the circuit court’s ruling and v. Detroit Board of Education.It He went much further in Harris Friedrichs v. California Teachers down altogether. sent the case back “for further held that while governments could v. Quinn (2014), which Mr. Messen- Association. Justice Scalia died But there are other strategies consideration in light of Janus.” not make union membership a con- ger argued before the high court. It Feb. 13. On March 29, Friedrichs that unions—and their supporters The high court’s holding on affir- dition of employment, they could involved a scheme initiated by Illi- ended with a whimper: “The judg- in state legislatures—are sure to mative consent ought to oblige the allow unions to impose agency fees nois’s former Gov. Rod Blagojevich, ment is affirmed by an equally di- employ to limit the effects of this appellate judges to rule in favor of to cover expenses “germane” to in which the state government de- vided Court.” Rebecca Friedrichs week’s ruling. “Four states,” Mr. Mr. Messenger’s clients. That collective bargaining. clared that people who accepted would have to keep paying an Messenger says, “have actually would likely resolve things—but Drawing the line to separate Medicaid payments to care for a agency fee, and Scalia’s death had passed laws forcing every public should Riffey reach the Supreme such expenses, called “chargeable” disabled person at home were, as extended Abood’s lease on life. employer to negotiate with the Court again, Mr. Messenger hopes in labor-law parlance, from non- Mr. Messenger puts it, “public em- Back in Illinois, Janus had been union about having a mandatory there will be a full complement of chargeable political expenses ployees solely for purposes of la- on hold pending a Friedrichs de- orientation” for new employees. nine justices. proved a difficult, hairsplitting ex- bor law.” Many of them were car- nouement. Evidently the unions, “Imagine it’s your first day on a ercise. In a 1991 case, the high ing for their own parents or expecting the Scalia vacancy to be job somewhere,” he says. “You’re Mr. Taranto is the Journal’s edi- court held that, in Mr. Messenger’s children, but the SEIU chapter filled by a Democratic appointee, just going through the forms. They torial features editor. Why California Is Losing Teachers and Laying Off Secretaries

Nine years into a This helped keep local-government of living is making it harder for dis- School districts are raising pay to typically, final compensation bull market, housing and worker pension costs low for a tricts to recruit and retain teachers. A improve teacher retention, but their multiplied by 0.02 multiplied by the prices in California while, but now the state, cities and Sacramento Bee analysis found that budgets are simultaneously being number of years they worked. Cal- have reached record school districts are having to play about 18,000 teachers left the state squeezed by increasing pension strs contribution rates are also set highs. Investors are catch-up. between 2003 and 2016, with the big- costs. In 2008 San Francisco voters as a share of total payroll. So when enjoying soaring cap- School-district pension costs have gest losses occurring during the hous- approved a $198 parcel tax to “re- teacher salaries increase, so do dis- CROSS ital gains, which in more than doubled since 2013, and ing-price peaks. A third of the teach- cruit and pay teachers a living wage trict pension bills. COUNTRY turn has created a the state legislative analyst’s office ers went to Texas, where the average so they don’t keep leaving.” Parcel Local officials are typically loath to By Allysia windfall for the state predicts they will climb another 30% teacher salary is $53,167, compared taxes are a uniform surcharge on tell voters that they need to raise taxes Finley budget. California is over the next two years. For every with $81,126 in California. each home that lets school districts because pensions are squeezing out now sitting on $16 dollar cities spend on worker salaries, circumvent Proposition 13’s limits services. To sell a $620 parcel tax in billion in budget re- they have to pay 32 cents to Calpers. because they are not based on the 2016, Davis Joint Unified School Dis- serves while many states struggle to This effective payroll “tax” charged Sacramento is flush, but property’s value. Between 2012 and trict in Yolo County warned: “Without balance their budgets. But beneath by Calpers will increase to nearly 50 2017, teacher salary costs rose by a the parcel tax, we could not sustain this patina of prosperity, many cities cents on the dollar by 2024. Retire- cities and school districts healthy 23%, but retirement costs the enrichment and choice that other are careening toward bankruptcy. ment costs already equal 44% of can’t keep up with rising soared 106%. districts no longer can afford.” Schools are laying off employees and teacher pay in San Francisco. In June, voters approved another But the local teachers union com- slashing programs. Some districts “Cities want to make it clear that public pension costs. $298 parcel tax to cover a 16% pay plains that the parcel tax burdens complain they are having trouble re- our foundation is rocky at best,” raise so that, according to the referen- school employees, who are being taining teachers. What gives? Dane Hutchings, a representative of dum, school districts can “increase the priced out of the area. State Sen. Bill California property taxes, which the League of California Cities, told Golden State teacher salaries are salaries of teachers and paraeducators, Dodd, a Napa Democrat, has intro- fund local governments, are capped the Calpers Investment Committee the second highest in the country af- and...increase the compensation or duced a bill to exempt Davis school- by the state constitution’s Proposition last month. “It’s crunch time, and ter New York and about $13,000 above benefits of other school district em- district employees from the parcel 13 at 1% of a home’s value and can’t quite frankly, we simply cannot stand the state’s median annual household ployees.” But Reeta Madhavan, chief tax. The bill passed the state Senate rise by more than 2% annually. So al- another market slowdown or sub- income. A midcareer teacher in an af- financial officer of the San Francisco in May and is currently being consid- though housing costs have soared standard returns.” fluent district can earn six figures. But Unified School District, said the sec- ered by the Assembly. since the recession—the median Mr. Hutchings warned of impend- even then, many will struggle to af- ond parcel tax was necessary because “This bill would provide an addi- home price in San Francisco is $1.6 ing municipal bankruptcies and ford a home. Thanks to local zoning pension costs are rising by about $5 tional incentive for public educators million—cities and school districts urged Calpers to shoot for higher and state environmental regulations, million each year. and school staff to live in the commu- aren’t rolling in the dough. investment returns to forestall lay- which have restricted the housing “Think about it: if we had that $5 nity in which they work, despite the At the same time, municipalities offs and cuts to public services. supply, home prices have soared. The million each year, we could put that severe shortage of affordable hous- are getting socked with big bills from Schools last year issued thousands median home price in Orange towards teacher salaries versus pay- ing,” a legislative analysis says. the California Public Employees’ Re- of pink slips. Hundreds more have County—which encompasses high- ing it out in increased Calstrs con- Behold California’s house of cards, tirement System and the California gone out this year. Many are laying poverty areas like Santa Ana and Ana- tribution,” Ms. Madhavan recently propped up by subsidies and exemp- State Teachers’ Retirement System, off secretaries and support staff to heim—is $714,000. Good luck finding explained. tions for Democrats’ special friends, known as Calpers and Calstrs. For pay for teacher raises and pension a house for less than $1 million in the Meantime, higher salaries are while taxpayers pay the mortgage. years the two funds overestimated benefits that have been collectively Bay Area. A condemned home in Fre- pushing up pension costs. That’s be- their investment returns while un- bargained. mont—about 30 miles south of Oak- cause teachers’ annual pension ben- Ms. Finley is a member of the derestimating their expected payouts. Meanwhile, California’s high cost land—sold for $1.2 million in April. efits are linked to their salaries— Journal’s editorial board. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A12 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Trump Boils Maine Lobstermen The Facts, When Revealed, Will Tell the Story onald Trump has upended global trade of that $1.5 million investment. David B. Rivkin Jr. and Elizabeth the point that the Trump-Russia col- relationships, promising that tempo- “What happens if we lose 30%, 40%, even 50% Price Foley’s “Mueller’s Fruit of the lusion narrative was ginned up from D Poisonous Tree” (op-ed, June 23) the start for purely political reasons. rary disruption will end in better terms of our market share?” he says. “We have to keep made me realize that an active FBI This raises many disturbing ques- for American businesses. Tell paying the bank for that bor- operation, such as Crossfire Hurri- tions. What was the purpose of the that to the Maine lobster in- Acasestudyinhowa rowed money. If we do have an cane, will have a strong, discoverable 2016 meetings involving Christopher dustry that his policies are tariff war will hurt impact in sales, it’s going to factual trail. In a very real sense, if Steele, Trump-hating personnel from putting at a major disadvan- have a direct impact on jobs. illegitimately constructed, founded the FBI and the Justice Department tage in Europe and China. small businesses and That’s the only way we reduce or pursued by more than one actor, and Fusion GPS (the public-relations These should be halcyon our expenses. I hope that it involves its own fully discoverable firm that commissioned the dossier days in lobstertown. Maine blue-collar workers. doesn’t happen. And to date we “collusion.” Despite the 24/7 media on behalf of ’s cam- harvests more lobster than any haven’t laid anyone off.” Mr. spin and constant, frantic buzz, it’s a paign)? Why do so many senior other U.S. state or Canadian Adams adds that if the trade relief to discern the outlines of a members of President Obama’s na- province. Last year it landed nearly 111 million tensions don’t abate, he would consider moving clear, factual pattern that will reveal tional security team continue to per- pounds—its fourth-largest annual haul—which some of his operations to Canada. itself fully if Congress can success- petuate the obvious fiction that the fully access enough of the FBI and dossier is being “more and more” it sold for $450 million. The lobster industry ac- The lobster-sales forecast is also stormy Justice Department’s records. With corroborated over time, as James counts for 2% of Maine’s economy. across the Atlantic. While Mr. Trump tweets, the these facts, the proof of either ante- Clapper recently claimed in an inter- And China represents a hungry new market. world’s trade negotiators are moving on without cedent political bias or a legitimate view without, needless to say, pro- The post-molt lobsters Maine harvests from the United States. The Comprehensive Economic national security concern will finally viding details? July through November have softer shells than and Trade Agreement between Canada and the emerge. Democratic FBI apologists Finally, could ’s sit- Canadian lobsters, so they’re lower quality. But European Union took effect in September 2017, want to discredit any investigation ting on the truth of no collusion for they also sell for several dollars less a pound. and over seven years it eliminates tariffs on 99% of these facts. over a year while his attack attor- In the price-sensitive Chinese market, that has of trade between the two. That Russia might meddle in our neys comb through the Trump Or- given the U.S. industry a competitive advantage The EU has already eliminated its 8% tariff elections or attempt to sow political ganization’s finances in hope of un- over its Canadian counterparts. In 2017 the U.S. on Canadian live lobster. And over the next discord to create wedges in our soci- earthing malfeasance be rightly exported more than $137 million in lobsters to three years it will phase out a 6% tariff on fro- ety should be a given, and nothing considered anything other than the remotely surprising to U.S. intelli- perpetuation of a national scandal? China, up from $52 million in 2015. zen whole lobster, a 16% tariff on frozen lobster gence and law enforcement. That TOM FAMULARO Yet Mr. Trump’s unilateral tariffs are about parts, and a 20% tariff on processed lobster. this was somehow twisted into a Long Valley, N.J. to erode the price advantage of American lob- Those penalties still apply to the United States. narrative of Trump campaign collu- sters. After the U.S. announced on June 15 plans In 2017 American lobster exports to Europe sion should be inherently suspect. It’s hard to explain why the Rus- to impose a 25% tariff on $50 billion in Chinese dropped by more than $20 million. Let’s get all the facts out into the sians would seek to aid the Trump goods, Beijing retaliated with a new 25% tariff “Never did we expect it to be so intense,” Mr. sunlight, protecting only the essen- campaign. About one-quarter of Rus- on American seafood, farm products and autos, Adams says. “Between China and Europe, it’s tials of sources and methods abso- sian GDP and two-thirds of exports effective July 6. That’s on top of the 10% to 15% a double whammy. It’s like taking body blow af- lutely critical to our national secu- involve energy. It makes little sense tariffs China already imposes on U.S. and Cana- ter body blow.” rity. Unlike our Russian counter- to aid a candidate who seeks to in- dian lobster. The losers here will be small family busi- parts, U.S. intelligence services are, crease American fossil-fuel produc- and should always remain, in service tion that would have the effect of Meanwhile, on July 1, China’s tariff on Cana- nesses and blue-collar workers. Maine lobster to the principles of our republic, our lowering energy prices. Common dian lobster will drop to 7%. “I suspect that will wholesalers and processors employ around society’s order and the free and le- sense would lead one to dismiss the virtually wipe out my company’s Chinese sales,” 4,000 people. Much of the work is highly physi- gitimate elections that support it. Russian investigation as purely polit- says Tom Adams, CEO of Maine Coast Company, cal, with workers grading and packing lobsters. RANDALL J. RADEMAKER ical. Sadly, common sense is a rare a lobster dealer. Maine also licenses around 4,500 lobster fisher- Sioux Falls, S.D. commodity in Washington. Mr. Adams founded Maine Coast in 2011, but men, limiting them to one boat and one set of MITCH TEDESCHI he’s been in the lobster business since summer gear. You can usually count their crews using The authors convincingly make Midlothian, Va. 1985, when he turned 15. His “sweat equity” your thumbs. has paid off, and last year his company Mr. Trump is furious with Harley-Davidson brought in $57 million in revenue. More than for moving some motorcycle production abroad one-fourth of those sales are in China. The amid his tariff battles, but at least Harley is big GMOs Are Safe, As Far as We Can Tell Today company employs 50 workers in Maine and enough to move. Most of Maine’s lobster indus- Mark Lynas should have learned his that other organisms won’t adapt over Massachusetts, and last year Mr. Adams ex- try won’t have that luxury as it pays the price lesson when he changed from an an- time to whatever changes we make in panded his York facility, borrowing for much for Mr. Trump’s trade folly. tagonist to a protagonist for geneti- crop genomes. To think that we can cally modified organisms (“Confession outsmart nature is hubris. of an Anti-GMO Activist,” Review, June MICHAEL W. SHERER 23). Science should be involved only Mercer Island, Wash. A Climate Shakedown Flops peripherally in politics and economics. he first wave of lawsuits to make oil it remains true that our federal courts have au- It should remain neutral. It should Mr. Lynas’s ability to reason will companies atone for their alleged cli- thority to fashion common law remedies for never be “settled.” For all we know eventually lead him to reject the T GMOs might produce a dangerous mi- claims of another pillar of modern en- mate sins was beaten back this week by claims based on global warming, courts must cro-organism, and the global warming vironmentalism: man-made climate federal Judge William Alsup. also respect and defer to the of the past 12,000 years might reverse change. The science behind GMO is One hope is that this victory A federal judge tosses other co-equal branches of itself into the next glaciation. studied by true scientists—specifically, for judicial sanity will stop the the left coast’s suit government,” he wrote. ROBERT M. CRAIG biologists and chemists. Both under- tide of litigation from spread- The judge also ridiculed Lake Geneva, Wis. stand that nature is the result of com- ing across the country. against fossil fuels. the notion that fossil fuels plex phenomena that must be discov- The cities of San Francisco are a public nuisance and It isn’t only environmentalists who ered and that theories must be tested and Oakland sued BP, Chevron, even suggested that they are wary of “messing with nature.” I by verifiable experimentation. Climate ConocoPhillips, Exxon Mobil, and Royal Dutch have been a boon for humanity. “Our indus- agree that scientific consensus sup- scientists are speculative computer Shell, demanding billions of dollars to remedy fu- trial revolution and the development of our ports global warming and humanity’s modelers at best. Their early theories ture environmental damage caused by fossil fu- modern world has literally been fueled by oil contribution to it and the safety of nu- and dire predictions are being refuted els. The Supreme Court ruled in AEP v. Connecti- and coal. Without those fuels, virtually all of clear power. But a better analogy in by reality with each passing year. The this case might be our use of antibiot- climate is a far more complex phenom- cut (2011) that regulating emissions is the our monumental progress would have been ics in health care and agriculture, and ena-driven system than fields of crops. Environmental Protection Agency’s bailiwick. But impossible,” he noted. Fetch the smelling salts the resulting rise in antibiotic-resis- Attributing changes in it to one cause, the cities tried to circumvent the ruling by argu- for Tom Steyer. tant bacteria. Mother Nature has had carbon dioxide, is absurd. ing that the mere production and sale of oil is a Judge Alsup shrewdly saw through the gam- 4.5 billion years adapting on planet PAYNE KILBOURN public nuisance. bit by Democratic politicians and plaintiff attor- Earth. There’s no reason to believe Neavitt, Md. Judge Alsup, a Bill Clinton appointee, rightly neys to loot big oil companies to pad their cof- refrained from trying to regulate global carbon fers. Six other California cities and counties, emissions from the bench. The problem of cli- Seattle, New York and Massachusetts have filed Bias Response Teams Tend to Bend One Way mate change “deserves a solution on a more similar suits. While Judge Alsup’s ruling doesn’t vast scale than can be supplied by a district bind other courts, his ruling is a sound legal Your editorial “Responding to the own university president, those stu- judge or jury in a public nuisance case. While guide for them to follow. Bias Response Team” (June 18) is dents who voted for Mr. Trump em- even more interesting in light of braced hate and fractiousness and the following. On the night after illusory yesterdays. Donald Trump was elected presi- Neither Mr. Schlissel nor the uni- Amazon the Rx Disrupter dent, a vigil of more than 1,000 un- versity as a whole has ever, to my happy students assembled on the knowledge, apologized for or re- mazon has remade retail by adopting licenses in several states, but bureaucracy has University of Michigan’s campus to tracted this superlatively foolish re- A Apple founder Steve Jobs’s dictum of frustrated its expansion. mourn the result. They were ad- mark—a remark that obviously mani- showing consumers what they want be- PillPack’s pharmaceutical expertise com- dressed by the president of the uni- fests bias against students who fore they know they want it— bined with Amazon’s logistics versity, Mark Schlissel, who bucked voted for Mr. Trump. There are no and then getting it to them The pharmacy giants mastery should let patients them up with this brilliant insight reports that the university’s bias re- fast. CEO Jeff Bezos is now obtain medications faster and (widely reported in the media): sponse team ever investigated or could use some “Ninety percent of you rejected the punished Mr. Schlissel; one wonders betting he can use this strat- cheaper. Patients or their kind of hate and the fractiousness why they failed to do so. egy to disrupt the pharmacy PillPack competition. caretakers might be able to and the longing for some sort of DAVID E. WEISBERG business, which could use the refill prescriptions simply by idealized version of a nonexistent Cary, N.C. competition. asking Alexa. Drugmakers are yesterday.” So, according to their This week Amazon announced it is paying experimenting with digital sensors embedded $1 billion for online pharmacy PillPack. The in pills to track adherence. So someday Alexa The Language One Uses five-year-old startup sorts prescriptions by could cue an Alzheimer’s sufferer to take her The Congressional Gold Often Defines the Issue dose and provides labels and directions for pa- pain medicine. Medal Is Our Highest Honor tients with a picture of each pill. This is a god- Amazon’s dip into the business has already Regarding the letter from the send for patients with chronic conditions who spurred pharmacies to improve service, and Regarding F.H. Buckley’s “Depo- ACLU’s David Cole (June 27) on de- have difficulty following a regimen. Think of they will now have to raise their game even liticize the Nation’s Highest Honor” fending unpopular causes: When did (op-ed, June 21): The nation’s first pro-life become “antichoice”? Careful, the 85-year-old with high cholesterol, anemia more. CVS this month announced a deal with and highest civilian honor is the Mr. Cole, your bias is showing. and arthritis. the U.S. Postal Service to deliver prescriptions Congressional Gold Medal, first JOSEPH SCHMIDT Amazon’s deep corporate pockets will enable in one to two days to customers for $4.99. But awarded to George Washington in Kew Gardens, N.Y. the fledgling company to build out its innova- what if Amazon can deliver prescriptions within 1776 by the Continental Congress. tion. PillPack has about 1,000 workers com- hours for free? Because the Congressional Gold pared to the 235,000 or so employed by Wal- As it happens, Amazon this week also an- Medal is voted by Congress it is Pepper ... greens, the giant drug-store chain. The startup nounced that it would contract with small busi- free of the personal politics of the And Salt needs more scale to compete with the pharmacy nesses to expedite deliveries. Amazon ships president. It is normally awarded to giants and negotiate with benefit managers that about 1.2 billion packages each year and has persons who performed a valuable THE WALL STREET JOURNAL act as middle-men with insurers. Both indus- more than 100 million Prime subscribers who service to the U.S. and the world. tries have been consolidating. get two-day free shipping. The online retailer Less than 1% of awardees have been entertainers. Walgreens last year bought 2,000 Rite Aid also offers two-hour shipping and is expanding The Presidential Medal of Free- stores while Albertsons announced it would ab- fresh food deliveries. dom was created by executive order sorb the remaining 2,600 in February. CVS ac- Even while wading into new industries, Ama- by President Kennedy in 1963 and is quired Target’s pharmacy business in 2015, and zon is trying to head off competition from awarded at the personal whim of the its $68 billion bid for health insurer Aetna will brick-and-mortar retailers like Target and Wal- president. There is no comparison allow it to direct millions of customers to its re- mart that are fast expanding their online sales. between the two. tail stores and clinics. The three major pharmacy But the U.S. Postal Service, FedEx and UPS can’t SEAN P. COLGAN benefit managers—Express Scripts, CVS Care- deliver packages within hours as many Amazon Delray Beach, Fla. mark and United Health’s OptumRx—control 70% customers may come to expect. Contracting of the market and run their own specialty phar- with small businesses could expedite deliveries Letters intended for publication should macies. This makes it harder for PillPack to ex- and lower costs. be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, pand, but Amazon’s backing will help. We’ve criticized Amazon’s e-book monopoly or emailed to [email protected]. Please Amazon will gain a pharmacy license in 49 that the U.S. Justice Department aided when it include your city and state. All letters states and avoid regulatory rigmarole. The Se- blocked competition from Apple. But its entry are subject to editing, and unpublished attle retailer has previously shown interest in into drug delivery is welcome disruption that letters can be neither acknowledged nor “Oops. I just confused my share returned. the pharmacy business and acquired wholesale could benefit consumers. prices with my resting heart rate.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | A13 OPINION The First Amendment’s Undisputed Champion

By Floyd Abrams role when other conservatives re- education or counseling.” Adopted in jected First Amendment arguments, an obvious attempt to avoid efforts t’s no surprise that many of the and when liberals did. He was the near abortion clinics to intimidate quickly drafted assessments of First Amendment champion of the women who had decided to have abor- Justice Anthony Kennedy’s High Court. tions or pressure them not to do so, I three decades on the Supreme Since joining the court in 1988, the law’s drafting was extremely Court have focused on his role Justice Kennedy has written so many broad. A 6-3 majority nonetheless held as the man in the middle—the fifth, First Amendment opinions and dis- it constitutional in an opinion by Jus- “swing” vote that determined monu- sents that it is difficult to choose tice John Paul Stevens, rooted in the mental cases of a deeply divided which ones best illustrate his views. “privacy interest in avoiding unwanted court. Some are well known, at least by their communication.” This visage of Justice Kennedy can names, including his majority opinion Justice Kennedy dissented vigor- be overdrawn. In his final term, for for the court in Citizens United v. Fed- ously. “For the first time,” he wrote, example, he voted with his conserva- eral Election Commission (2010). Too “the Court approves a law which bars tive colleagues in all 19 of the court’s many people do not know that Citi- a private citizen from passing a mes- 5-4 decisions. But there is no way to zens United is rooted in two generally sage, in a peaceful manner and on a undisputed constitutional proposi- profound moral issue, to a fellow citi- tions: that “political speech must pre- zen, on a public sidewalk....Socom- On free speech, Justice vail against laws that would suppress mitted is the Court to its course that it it by design or inadvertence,” and denies these protesters, in the face of Kennedy adhered to his that the “First Amendment ‘has its what they consider to be one of life’s principles even when fullest and most urgent application’ ERIC THAYER/GETTY IMAGES gravest moral crises, even the oppor- to speech uttered during a campaign Justice Anthony Kennedy. tunity to try to offer a fellow citizen a his colleagues swung. for political office.” little pamphlet, a handheld paper It is instructive to recall two cases So fraught was the topic that Chief sometimes we must make decisions seeking to reach a higher law.” decided in Justice Kennedy’s early Justice William Rehnquist’s dissent we do not like. We make them be- decision was one of the minimize the effect of the rulings days. In 1989 the court considered included the entire text of the na- cause they are right, right in the least sympathetic in living memory that preserved Roe v. Wade, that es- the issue of whether burning an tional anthem and a patriotic poem sense that the law and the Constitu- to First Amendment values. In Mc- tablished the right of gay Americans American flag in protest was pro- by John Greenleaf Whittier that cov- tion, as we see them, compel that re- Cullen v. Coakley (2014), the court to marry, and that assured that those tected by the First Amendment. It ered two full pages. sult.” However repellent Mr. John- changed course. An opinion by Chief accused of terrorism and detained by was a crime in Texas and 47 other In that context, the young Justice son’s conduct was, Justice Kennedy Justice John Roberts, which Justice the government were able to petition states, and Gregory Lee Johnson had Kennedy’s response was telling. Jus- concluded, “the fact remains that his Kennedy joined, struck down a simi- for a writ of habeas corpus. In all been convicted of a violation near the tice William Brennan wrote the ma- acts were speech, in both the techni- lar Massachusetts law—without even those cases and more, it was the fifth 1984 Republican Convention in Dal- jority opinion holding the statute un- cal and the fundamental meaning of mentioning the Hill case. vote provided by Justice Kennedy, las. The court held 5-4 that the law constitutional. Justice Kennedy added the Constitution.” joining his more liberal colleagues, was at odds with the First Amend- a brief concurrence, in which he And consider Hill v. Colorado, a Mr. Abrams is senior counsel at that carried the day. ment. Then, as now, issues relating to agreed with the dissenters that, as he case decided in 2000. A Colorado stat- Cahill Gordon & Reindel LLP and au- But in one area of the law Justice the flag were incendiary. If NFL play- wrote “the flag holds a lonely place of ute made it a misdemeanor for anyone thor of “The Soul of the First Amend- Kennedy was not in the center of the ers kneeling when the national an- honor in an age when absolutes are within 100 feet of a “health care facil- ment” (Yale, 2017). court—he was its leader. He was the them is played can create national distrusted and simple truths are bur- ity”—meaning a place where abortions Supreme Court’s most dedicated, unrest today, literally burning the dened by unneeded apologetics.” But occurred—to “knowingly approach” Peggy Noonan is on leave and will consistent and eloquent defender of flag has sometimes led to near-nu- that could not affect his First Amend- another person within 8 feet, without return in the fall. the First Amendment. He played that clear reactions of those in the area. ment judgment. “The hard fact is that her consent, to engage in “oral protest, No Country for Old Pretentious Titles

By Alexandra Hudson class or rank. In an 1803 memo to his are laughable and contrary to the are used for informal and formal con- Honorifics that highlight hierarchy cabinet, President Jefferson outlined American democratic ideal. Yet the texts. One form is meant for close are important in professional settings. ince the founding of the United new procedures that would require longing for priority over others will friends and family, while the other A clear chain of command is critical in S States, two competing forces his guests to check their status at the never be entirely eradicated. This shows social distance and respect for places like courtrooms and battle- have battled for primacy: prece- door. created complications in Jefferson’s peers and superiors. Today Ameri- fields, so deferring to title and rank dence and equality. “When brought together in soci- time that continue today. cans are informal unless formality is there makes sense. But when profes- In May 1789, during the debate over ety, all are perfectly equal, whether Jefferson, abiding by his pêle-mêle explicitly needed—or commanded, as sional hierarchies are appealed to in how the leader of the U.S. should be foreign or domestic, titled or unti- principles, once snubbed the British in Ms. Boxer’s case. private and social settings, they dan- addressed, John Adams advocated a tled, in or out of office,” he wrote. ambassador to the U.S. and his wife. Finding a balance gets to the heart gerously distract from the equal value “first among equals” mentality. He “No titles being admitted here, those During a state dinner, the president of American equality. The self-evident in all persons. Imagine if a senator de- campaigned for the American presi- of foreigners give no precedence. Dif- truths in America’s founding docu- manded her family and friends refer dent to be “His highness, the President ference of grade among the diplo- ments refer to equal treatment under to her as such in private settings. of the United States of America, and matic members gives no precedence.” In America, the premise the law. They don’t mean that all peo- Before the subject of presidential Protector of the Rights of the Same.” Congressmen, judges, lords, foreign ple are equal in their abilities, inter- titles was broached, George Washing- Such a lofty title, he argued, was nec- diplomats—all were equal in the Jef- that each person is equal ests or life outcomes. But the Ameri- ton offered his thoughts on this topic. essary to confer appropriate respect ferson White House. generally outweighs the can credo recognizes that each human He wrote to Alexander Hamilton in for the chief executive of the nascent The Adams-Jefferson debate per- life is valued equally, and that every- August 1788, “I hope I shall always country’s federal government—espe- sists to this day. In 2009 Sen. Barbara desire to pull rank. one is owed, and owes to others, a possess firmness and virtue enough cially important since not all states Boxer showed herself to be a modern level of respect by virtue of being a to maintain (what I consider the most had yet adopted the Constitution. Adams. During a congressional hear- part of the human community. enviable of all titles) the character of “His Excellency,” “His Elective ing, she corrected a brigadier general: didn’t prepare a planned seating ar- America’s democratic view of re- an honest man.” Highness” and “His Majesty George” “You know, do me a favor, could you rangement. Rather, Jefferson hosted spect is well-embodied in the Mid- From this country’s beginning, the were also contenders. Yet George say ‘Senator’ instead of ‘ma’am’?” She the dinner at a round table—where, west, where people of every income first president voluntarily surren- Washington was satisfied with the added, “I worked so hard to get that unlike at a rectangular table, no one level don bluejeans and flannel but- dered rank-related pretense—mindful unassuming “Mr. President.” title, so I’d appreciate it.” could be distinguished as a guest of ton-ups—and everyone eagerly dem- to avoid exalting himself as Adams Thomas Jefferson, author of the Fortunately, much of America still honor. onstrates an equal measure of cour- would have liked, or unduly offending country’s “all men are created equal” emulates Jefferson’s skepticism of in- Today visitors to America are of- tesy toward all. Surrendering others as Jefferson did. His aim was creed, wrote off Adams’s title cam- ordinate deference. Vice President ten confused and suspicious of the in- professional narcissism is easier said to better value and respect his fellow paign as “superlatively ridiculous.” said in 2009, “In Delaware formality—especially in the South than done. But man’s competing de- Americans. Let us each endeavor to Perhaps Jefferson even had the title I’ve always been Joe, and everyone and Midwest. Language is partly a sire for precedence and equality can do the same. campaign in mind when he developed calls me that. And I hope they always contributor to this cultural casual- be ameliorated by drawing distinc- his pêle-mêle etiquette, which set out will.” He’s not the only politician who ness. Numerous languages offer two tions in context—private and public, Ms. Hudson is writing a book on to eliminate protocol based on title, insists loud demands for deference forms of the pronoun “you,” which informal and professional. civility. Why the CIA Needs Its Own Horowitz Report

Now that the world relation to the Hillary Clinton email Loretta Lynch information, so crucial against Mr. Trump in their private possession of the dossier to try to get has digested the investigation. He refers to secret in- to Mr. Comey’s actions, has been dealings with Mr. Comey before the its allegations into the media. Horowitz report, telligence that was pivotal to FBI kept from the public and even mem- election than they have been on TV Mr. Comey would have seen that notice how much of Chief ’s decision to in- bers of Congress because it “was since. a partisan explosion was coming. the story it doesn’t tervene publicly in the Clinton case, classified at such a high level by the Which brings us to Mr. Comey’s Nothing would remain secret. Even tell. The Federal but he doesn’t mention (as media intelligence community.” Which is potentially most consequential deci- in the expected Hillary victory, a BUSINESS Bureau of Investi- reporting last year did) its Russian certainly convenient for the intelli- sion, his reopening of the Hillary GOP Congress would insist on an WORLD gation is treated as origins. gence community. email investigation just before Elec- investigation. By Holman W. a closed loop when, He tells us the FBI regarded the Let’s be realistic. We’ve been told tion Day, which many Democrats and This is the environment in which Jenkins, Jr. in fact, much of its intercepted information, involving a officially many times that Russia independent analysts say may inad- he made a decision that objectively decision making purported improper communication didn’t hide its activity in the 2016 vertently have elected Mr. Trump. seems aimed at redeeming the FBI’s was based on intel- by Attorney General Loretta Lynch, race: It carried out its meddling in a reputation as a straight shooter ligence and advice supplied by other as “objectively false.” He doesn’t tell blunt, in-your-face manner that amid a welter of intelligence commu- agencies. us, as and CNN would have been seen as a direct No need to speculate: nity actions that eventually would be Michael Horowitz deals with did last year, that some in the FBI challenge to our own intelligence exposed and second-guessed. some of this information in a classi- regarded the information as a Rus- agencies. These agencies, in turn, The intelligence agencies An underremarked facet of the fied appendix, which the public can’t sian plant. viewed Mr. Trump as a witting or saw Trump as a de facto Horowitz report reveals just how see. Even so, as Justice Department He tells us that Mrs. Clinton and unwitting Kremlin agent. much illegal leaking to the press FBI inspector general, he is not autho- President Obama exchanged emails We don’t need to speculate about agent of the Kremlin. officials were guilty of. The same rized to examine and dissect the in- on her private server while Mrs. this. The FBI’s Mr. Comey, since Elec- rock needs to be turned over with re- ternal communications and decision- Clinton was especially vulnerable in tion Day, has been a model of discre- spect to Mr. Brennan’s and Mr. Clap- making of other agencies the way he the “territory of a foreign adver- tion compared with Obama CIA chief Mr. Horowitz finds no convincing per’s former agencies. If Mr. Putin’s did the FBI’s. Yet the necessity of sary.” He doesn’t tell us the foreign John Brennan and Obama Director of explanation of why a month elapsed goal was to make a mockery of U.S. doing so fairly screams at us. adversary was Russia. National Intelligence James Clapper. between the surfacing of the Weiner democracy, his most useful if unwit- Mr. Horowitz mentions Russia One thing we learned, because Mr. Brennan suggested on national laptop and Mr. Comey’s action. It ting allies may well have been our many times in relation to the Trump Mr. Horowitz blurted it out in Sen- TV that Vladimir Putin possesses se- might be useful, though, to under- so-called intelligence community. collusion investigation but never in ate testimony on June 18, is that the cret information he uses to control stand what else was going on be- Mr. Comey’s FBI is not the only President Trump. Mr. Clapper, also tween Sept. 26 and Oct. 28. The Ya- intelligence branch that needs a on national TV, called Mr. Trump a hoo news article based on the Steele good shaking out. Historians have a Kremlin “asset” whose election was dossier had recently appeared. A strong case already that both sets of PUBLISHED SINCE 1889 BY DOW JONES & COMPANY secured by Russian meddling. Mother Jones piece would soon ap- today’s partisan talking points are Rupert Murdoch Robert Thomson Their involvement in the events pear. Inquiries about the Steele dos- valid: The Obama intelligence agen- Executive Chairman, News Corp Chief Executive Officer, News Corp Mr. Horowitz details was extensive sier would have been pouring into cies were biased against Mr. Trump Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher and pervasive and yet these men are the agency. The FBI would soon and also blunderingly helped elect invisible in his report. And it is break off relations with Christopher Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: him—a conclusion based in fact and Mark Musgrave, Chief People Officer; hardly plausible that they were more Steele for speaking to the press. Harry yet so disconcerting that the press Jason Anders, Chief News Editor; Thorold Barker, Edward Roussel, Chief Innovation Officer; Europe; Elena Cherney, Coverage Planning; restrained in their accusations Reid would soon exploit the FBI’s has turned away from it. Anna Sedgley, Chief Operating Officer Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; OPERATING EXECUTIVES: Alex Martin, Writing; Michael W. Miller, Features Ramin Beheshti, Product & Technology; & Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; Rajiv Pant, Product & Technology; Ann Podd, News Jason P. Conti, General Counsel; Notable & Quotable: Take Back the Hamptons Production; Matthew Rose, Enterprise; Tracy Corrigan, Chief Strategy Officer; Michael Siconolfi, Investigations; Frank Filippo, Print Products & Services; Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; From “The Right Way to Shun the electric and the dance floor so way that would make headlines but Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; Trumpsters” by Margaret Carlson, small it turned proper adults into would make clear they’ve sunk to a Carla Zanoni, Audience & Analytics Nancy McNeill, Advertising & Corporate Sales; TheDailyBeast.com, June 29: teenagers at a bar mitzvah, every- new level of complicity that can’t be Christina Van Tassell, Chief Financial Officer; Gerard Baker, Editor at Large Suzi Watford, Chief Marketing Officer; one dancing with everyone else. It overlooked even on a social occa- Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International Last summer at a party on Long would have been awkward and im- sion. A nod or a stiff arm extended Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher Island, the largely Manhattan crowd polite to turn away from Jared or for a handshake to avoid the air kiss. WALL STREET JOURNAL MANAGEMENT: Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; was surprised, but polite, when Ivanka as they inevitably came your No polite small talk and stay stuck Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head Jared Kushner and way. to your chair when the music plays.

EDITORIAL AND CORPORATE HEADQUARTERS: were among the guests.... Will that happen this year?... Make it clear to them, in some quiet 1211 Avenue of the Americas, New York, N.Y., 10036 The ocean air was sweet, the Should the pair return this sum- dignified way, that the border crisis Telephone 1-800-DOWJONES farm-to-table food perfect, the band mer, they should not be treated in a is a bridge too far. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. SPORTS

WORLD CUP Uruguay: Soccer’s Dead Poets Society Óscar Tabárez, the man they call Maestro, has found success by running his team like a boarding school

BY JONATHAN CLEGG AND JOSHUA ROBINSON

Sochi, Russia IN THE 150 YEARS since soccer was invented on the muddy play- ing fields of English boarding schools, the sport has changed so much that it would be almost un- recognizable to the blue-blooded boys who kicked around a heavy leather ball. But it hasn’t changed completely. Because in a small outpost on the Volga River, a gray-haired 71- year-old who walks with a cane, the man they call Maestro, is still educating young men to carry themselves with character—and win World Cup games. His name is Óscar Tabárez. And in 12 years in charge of Uruguay’s national team, he has helped turn a country of 3.5 million into the best pound-for-pound team in world soccer by treating his play- ers as if he were a housemaster at Eton or Harrow. Just as any British boarding school, Tabárez has long said his primary goal was to mold well- rounded men. He imparts lessons about respect, decency, and the importance of good manners. At Tabárez’s request, Uruguay might be the only team in Russia to have its squad of millionaires share bedrooms for the tournament.

“He would always say that be- DOMINIC BUGATTO ing a football player is a profes- sion but it is the way you behave Uruguay had earned a reputation squad. But Tabárez became the Tabárez organizes trips for all soccer for four months. His as a human being that is impor- as playground bullies with their dean of the entire men’s program, young players to attend museums team has also racked up eight red tant,” said Diego Forlán, a former reckless and physical play. from the Under-15s to the team and the theater. He engages his cards at tournaments, plus count- Uruguay captain under Tabárez. When Tabárez was called in to that travels to the World Cup. Ev- players on subjects as diverse as less yellows, including a whop- Nothing reflected worse on the fix it, he immediately identified ery member of those squads would classical music and botany. “What ping 18 in six games at the 2011 team than its record in the years the problem. Uruguay had talented come to train under Tabárez at the Tabárez knows about plants is tre- Copa America, since he took over before Tabárez took over in 2006. players, but lacked the structure to national training center, where he mendous,” Claudio Pagani, who in 2006. Though Uruguay won World Cups turn them into upstanding citi- could shape their development as runs Uruguay’s national training Still, Uruguay captain Diego Go- in 1930 and 1950, when squads zens. He drew up a plan to revamp players and as people. complex, has said. din said Tabárez continues to tell were still traveling to the tourna- the training of the national teams, Tabárez’s professorial air is no Before Uruguay competes in any players how disappointed he is ment by boat, the modern era had a dossier known by the catchy ti- coincidence. Before he went into tournament at senior or youth with them, even when they are been less kind to them. The team tle, “Project for Institutionalizing management full time, he was an level, Tabárez lectures the team on sent off while playing for their hadn’t been near a World Cup the Processes of the National elementary-school teacher. He what behavior is expected of them. clubs. And Suárez credits the Mae- semifinal since 1970. Worse still, Teams and the Training of Their likes to educate his players on his- His message is always the same: stro’s exhortations with turning Soccer Players.” tory, geography, the arts, and any- No fouls, no bad conduct, and him into a reformed character. The document wasn’t so much a thing else he happens to find in- whatever happens, no back talk to No matter what happens to this TV Listings tactical or technical treatise as a teresting in the moment. This too the referees. team at this World Cup, Tabárez’s charter for his program. “A young is part of the Tabárez curriculum. Like every teacher, the Maestro mission to educate Uruguayan Saturday, June 30 talent should train and prepare for “One time we played in Japan knows that some lessons go in players on matters away from the (All times Eastern) life’s challenges,” Tabárez wrote. and we were talking about how we one ear and out the other. During field will continue. 10 a.m.: France vs. Argentina (FOX) “The young person must study, we were surprised by the culture,” his time in charge, he has over- “It is as I say to the players of 2 p.m.: Uruguay vs. Portugal (FOX) shouldn’t obstruct that, we should said Forlán, an analyst for Tele- seen striker Luis Suárez commit a the National Team,” Tabárez said. Sunday, July 1 favor it, it increases their sporting mundo Deportes at the World Cup. deliberate handball in the 2010 “You can make good contracts in 10 a.m.: Russia vs. Spain (FOX) potential.” “So after dinner, the Maestro got World Cup finals and bite an op- clubs, gain prestige, but there are 2 p.m.: Croatia vs. Denmark (FOX) Other managers at the World the lads together and we listened ponent at the 2014 World Cup, some things you can only get play- Cup simply coach the senior to him talk about Japan.” for which he was suspended from ing for Uruguay.”

WORLD CUP part, because the Big Four are Nick older and less stable. Murray is Kyrgios returning from a hip operation and still may not even enter Wimbledon. Djokovic is begin- Video Review Has an Impact ning to look more like himself, but he has not won a Grand Slam title since 2016. BY ANDREW BEATON As for Nadal, he’s a contender at Wimbledon, especially if he survives the early rounds when Saransk, Russia the courts have more grass and BEFORE the World Cup began, you less of the dirt that suits Nadal’s could have circled one match on the running and rallies. Nadal won calendar that would almost certainly Wimbledon in 2008 and 2010,

be sent into anarchy by the newly TONY O’BRIEN/REUTERS but has not gotten past the implemented video review system. fourth round since 2011. The game featured the player WIMBLEDON Then there’s Federer, the best the cameras love more than anyone grass court player in men’s his- else, Portugal’s Cristiano Ronaldo, tory. He won last year’s tourna- and soccer’s most brutally candid TIME IS RIPE ment without dropping a set and manager, Iran’s Carlos Queiroz. has eight career Wimbledon ti- The expected fireworks went off FOR A tles. After Nadal, Murray and as planned. First, there was a con- Djokovic lost to other players, troversial review involving Ron- Federer faced one tough oppo- aldo. Then there was another con- SURPRISE nent: Marin Cilic, who had a troversial review involving rough blister on his foot that Ronaldo. Later there was a third weakened him in the final. controversial review. This one, did BY TOM PERROTTA That shouldn’t happen this not involve Ronaldo. time. Cilic just won a title in The game finished in a 1-1 tie, London’s prestigious Queen’s but not until after this circus reared FOR THE FIRST TIME in a de- Club by beating Djokovic in the its head and brought an issue into cade and a half, something final. Standing at 6-foot-6, Cilic, the spotlight: Video Assistant Ref- shocking could happen at Wim- who won the U.S. Open in 2014, eree has the capacity to turn o jogo bledon this year: A player who is has a big serve and slugger fore- bonito into an ugly game. not a member of tennis’s Big hand, and a two-handed back- “The VAR doesn’t work,” Four could actually win the hand that is his most dangerous Queiroz said after the match. men’s title. stroke. He’s at his best on grass, It is having an impact, though. Since Roger Federer won the and he’s the top contender at Through the first 48 games of this first of his eight Wimbledon ti- Wimbledon besides Federer.

World Cup, encompassing all of FILIPPO MONTEFORTE/AGENCE FRANCE-PRESSE/GETTY IMAGES tles in 2003, no man other than In Halle, Germany earlier this the group stage, there have been Through 48 matches, there have been 14 decisions changed after video review. Federer, Rafael Nadal, Novak week, 21-year-old Borna Coric 335 incidents checked by VAR and Djokovic or Andy Murray has be- beat Federer in the final. It was 14 decisions changed, said Pierlu- gotten longer as a result, too. players can feel completely igno- come a champion at the All Eng- Coric’s first win against Federer; igi Collina, Chairman of the FIFA “Something has always been rant to what’s going on because land Club. It’s a remarkable col- he had another chance to beat Referees’ Commission, at a Friday said: VAR doesn’t mean perfec- they don’t get to see what’s being lection of titles by the most him at Indian Wells this year, press conference in Moscow. tion,” Collina said. reviewed, at least not as much as punishing group of men in the when he led Federer by a set and The most notable impact to But the cost, critics have noted, the half-dozen angles fans are sport’s history. a break before losing. fans, other than the awkward can be disrupting the game, con- shown on TV broadcasts. At the But this year, there are signs Even more dangerous, if un- dance of soccer games regularly fusing the people on the pitch and stadiums here in Russia, most re- that others have a chance—and predictable: Nick Kyrgios, the 23- being stopped for reviews: Because possibly still getting calls wrong, plays have been shown only after are craving it. Ivan Lendl, the year-old from Australia. Kyrgios of VAR, this tournament has al- even after review. the VAR decision has been ren- former No. 1, sees that a number has one of the finest serves in ready broken the World Cup re- Denmark star Christian Eriksen dered, and those angles have fre- of players have a chance to win tennis (he hit 32 aces in two con- cord for most penalty kicks—and said the video review system is quently been more limited. their first Wimbledon. secutive matches at Queen’s we still have the entire knockout costing soccer some of its charm. Collina said Friday that of the “Roger and Rafa have taken Club, and one of those matches stage to go. VAR has already con- Other players and coaches have decisions checked, 95% were cor- the last six Slams,” Lendl said. was just two sets). Kyrgios said tributed to six penalty kicks. criticized either its implementation rect and 99.3% were correct after “But they came off injuries, they he’s holding up well and seems Collina, a legendary Italian ref- or specific calls that were reviewed. VAR. This, somehow, does not jive came off layoffs. Novak is coming to have recovered from recent el- eree, noted that even though ref- In the Iran-Portugal game, Iran with the optics of what players off a layoff, Andy hasn’t played bow pain. eree accuracy has improved this was awarded a penalty kick on and coaches are seeing. “Every- in a year,” he said. “Just by cre- Asked how much of a threat World Cup due to the implementa- video review. But Queiroz noted, body agreed VAR is not going ating a vacuum it’s more open.” he would be at Wimbledon, Kyr- tion of the system, the games have as others have, that coaches and well,” Queiroz said. The opportunity is there, in gios said, “Big one.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

Big Gamble Battle Ready Investors keep putting Why the Marines money into funds ditched the best that keep losing B14 EXCHANGE offense in history B5

BUSINESS | FINANCE | TECHNOLOGY | MANAGEMENT THE WALL STREET JOURNAL. ******* SATURDAY/SUNDAY, JUNE 30 - JULY 1, 2018 | B1

DJIA 24271.41 À 55.36 0.2% NASDAQ 7510.30 À 0.1% STOXX 600 379.93 À 0.8% 10-YR. TREAS. À 1/32 , yield 2.847% OIL $74.15 À $0.70 GOLD $1,251.30 À $3.50 EURO $1.1683 YEN 110.71 Carriers The New Sheriffs of Cash In SiliconValley On Fees AT&T and Sprint raise administrative charges

BY DREW FITZGERALD

AT&T Inc. and Sprint Corp. have recently raised the administrative fees they charge customers, moves that will bring in hundreds of mil- lions of dollars in additional revenue for the companies. AT&T, the second-largest U.S. car- rier by subscribers, has more than doubled the administrative fee it tacks on to the bottom of many wire- less customers’ bills. The monthly fee, which affects most noncorporate wireless plans excluding prepaid ser- vice, recently hit $1.99, up from $1.26 earlier this year and 76 cents in 2017. Financial-services firm BTIG esti- mated the higher fees could add $970 million to AT&T’s annual reve- nue and throw off enough cash to fi- nance more than $12 billion of debt.

The increase to monthly bills could help the companies whittle away at their sizable debt.

The extra cash could be crucial as AT&T works to pay down about $180 billion of net debt. The company closed its $81 billion takeover of Time Warner Inc. in June after a fed- eral judge denied a government anti- trust lawsuit challenging the deal. The transaction made Dallas-based AT&T the most indebted nongovern- mental corporate-bond issuer in the world, according to Moody’s Inves- tors Service. The telecom company followed up the Time Warner acquisition with a $1.6 billion deal for advertising tech- nology company AppNexus. Aside from debt, AT&T must also cover its dividend, which paid out more than $12 billion to sharehold- ers last year. AT&T said it isn’t alone in charg- ing fees atop customers’ base service The privacy posse: rates. “This is a standard administra- Roger McNamee, tive fee across the wireless industry, Tristan Harris and which helps cover costs we incur for Jim Steyer. items like cell site maintenance and Pleaseturntothenextpage SEAN MCCABE; DAVID PAUL MORRIS/BLOOMBERG; EMILY PRAPUOLENIS/THE WALL STREET JOURNAL; STEPHEN MCCARTHY/SPORTSFILE/GETTY IMAGES

ristan Harris walked out of a sushi scandals rocked technology firms ranging lunch and switched his phone out of An unlikely trio of tech from Facebook to Uber Technologies Inc. airplane mode when it practically insiders is aiming to reform an through the fall and into this spring, the men vibrated out of his hand. Ex-col- industry they say can no pushed their agenda in private meetings with Deutsche Tleagues at Google and other friends top executives including Alphabet Chief Finan- were frantically trying to reach him. longer police itself cial Officer Ruth Porat; Satya Nadella, chief ex- Google Chief Executive Sundar Pichai had ecutive of Microsoft; Marc Benioff, chief exec- Bank Poised just announced that the search giant was go- BY BETSY MORRIS utive of software company Salesforce.com; ing to give customers tools to help them limit and senior officials at Apple. the time they spend on smartphones. The idea “Our entire industry is in a crisis of trust,” For Removal was to help promote their “digital well-being.” to privacy and seeming indifference toward its says Mr. Benioff. “All of us are now recogniz- In Silicon Valley, where keeping users online broader impact on society. The troika, which ing they are prophets….They saw it coming.” as long as possible has been the traditional also includes maverick investor Roger Mc- In addition to Mr. Pichai’s announcement, From Index path to greater profits, the notion that compa- Namee and Bay Area power broker Jim Steyer, Facebook Chief Executive Mark Zuckerberg in nies should curb screen time was heresy—and is taking on the industry’s most powerful January said in his blog that a big focus of Many ETFs would then it was Mr. Harris’s idea. Not only that, but Mr. players, including Facebook Inc., Apple Inc. 2018 would be “making sure the time we all sell the sliding stock Pichai was using almost the exact same lan- and Google parent Alphabet Inc. spend on Facebook is time well spent”— guage Mr. Harris did when he proposed the “We will hold the industry accountable,” phrasing that echoed the previous name of BY MIKE BIRD AND JENNY STRASBURG concept five years ago as a disillusioned Mr. Steyer says. “That means direct dialogue Mr. Harris’s nonprofit, Time Well Spent. (The Google software engineer. with all of the companies and, when neces- organization is now called the Center for Hu- The sharp drop in the market The message was largely ignored then. It sary, shaming them.” mane Technology.) Facebook also has intro- value of Deutsche Bank AG could isn’t anymore. The three men driving the coalition have duced measures designed to curb fake news mean an exit from a major European Mr. Harris, 33, forms one-third of an un- contrasting personalities and motivations— and better monitor political advertising. index, jeopardizing its inclusion in likely triumvirate of Silicon Valley insiders and sometimes conflicting tactics. But they Apple in early June unveiled new controls the giant funds that track that who for more than a year have been cajoling are united against a precept that defined Sili- designed to help curb the amount of time benchmark. executives and buttonholing lawmakers about con Valley for decades: that technological spent on the company’s products. Deutsche Bank’s market capital- the tech industry’s at times reckless approach progress is by definition good for society. As Pleaseturntothenextpage ization has fallen to a level that would see it removed from the Euro Stoxx 50, taking the lender out of the orbit of exchange-traded-funds | THE INTELLIGENT INVESTOR JASON ZWEIG with €42.5 billion ($49.17 billion) in assets that follow this index. Laggards A large bout of buying could save Investors could have earned decent returns EMERGING MARKETS BOND Deutsche Bank’s place in the index if they had just bought and held emerging- when it is rejigged in September, but market bond funds and European stock its presence in the relegation zone is Investors Are Behaving funds. Instead, they traded them – buying 6.10% an indicator of the once-European high, selling low and ending up earning banking champion’s fall from grace. much less than the funds themselves.. 4.04 The company’s share price has Better.ItWon’tLast. dropped by more than 40% this year, Average returns* if investor… EUROPE STOCK as it struggles with falling profitabil- On the eternal over the 10 years ending March 31; …had just bought and held funds ity and other legacies of pre-financial treadmill of the fi- the average investor, 5.53%. That …traded fund crisis exuberance. nancial markets, in- gap of 0.26 percentage point is 2.57% On Thursday, the Federal Reserve vestors can’t even much narrower than in the past; said it had failed a big chunk of the keep up with their over the 10 years through the end –7.78 U.S. operations of Deutsche Bank in own investments. of 2013, investors lagged their in- the second leg of its annual stress In what’s often vestments by a horrific 2.5 per- tests, citing “material weaknesses in called the behavior gap, investors centage points annually. capital planning.” The result was *annualized over the 10 years ended March 31, 2018 underperform the investments What’s behind this puzzle? widely expected but underscores the Source: Morningstar THE WALL STREET JOURNAL. they own, partly because they tend Let’s imagine a fund that starts bank’s problems in the key American to buy high and sell low instead of with $100 million in assets and market. vice versa. earns a 100% return from Jan. 1 lion into the fund overnight. It ginning and held until the end The prospect of dropping out of New evidence suggests investors through Dec. 31. Assuming that no thus begins the new year with $1.2 without any purchases or sales the index is on Deutsche Bank’s ra- may be behaving better—but they one added or subtracted any billion. This year, however, its in- would have exactly broken even. dar, according to a person familiar aren’t turning into financial angels. money along the way, $100 million vestments fall in market value by (Losing half your money after dou- with the matter. By the bank’s esti- A study published in June by at the start of the year turns into 50%. bling it puts you back where you mates, somewhere less than 5% of its Morningstar, the investment-re- $200 million at the end. After gaining 100% in year one started.) shares outstanding would likely be search firm, finds that the average Attracted by that spectacular and losing 50% in year two, an in- Such rigid buy-and-hold behav- affected by investor rebalancing, in mutual fund gained 5.79% annually 100% return, investors pour $1 bil- vestor who had bought at the be- PleaseturntopageB8 PleaseturntopageB12 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. THE SCORE

THE BUSINESS WEEK IN 7 STOCKS

HARLEY-DAVIDSON INC. CONAGRA BRANDS INC. LENNAR CORP. PERFORMANCE OF AMAZON AND ITS COMPETITORS Harley-Davidson said Mon- Source: SIX Conagra is stocking up on Low unemployment and in- day it plans to shift produc- 5% frozen food with an agree- creasing wages for U.S. work- HOG tion of more of its iconic CAG ment to buy Pinnacle Foods LEN ers fueled a strong second motorcycles overseas to Inc. for about $8.2 billion. quarter for home builder Len- -6% avoid European Union tariffs, -7.3% Over the past year, Conagra’s +4.9% nar, offsetting fears that ris- a move that sent its shares Chief Executive Sean Connolly ing interest rates and higher tumbling. The 31% levy enacted by the 0 Amazon has focused on revamping the com- construction costs would cut into prof- EU last week was in response to U.S. pany’s older brands like Healthy Choice, its. The company reported a 45% profit tariffs on aluminium and steel, and Marie Callender’s and Banquet to in- increase to $310.3 million Tuesday. Its would raise the cost of each Hog Har- clude trendy ingredients like edamame, stock rose 4.9%, and fellow home build- UPS ley ships to Europe from the U.S. by kale and quinoa, driving a 3.8% increase ers D.R. Horton Inc., PulteGroup Inc. and FedEx about $2,200. President Donald Trump –5 in sales. With Pinnacle, he would add NVR Inc. also climbed. The results came on Tuesday condemned Harley’s deci- brands such as Birds Eye, Hungry-Man a day after the Commerce Department sion, saying it would mark “the begin- and Celeste pizza. But investors sent released data showing that sales of ning of the end” of the iconic brand. CVS the company’s shares down Wednesday new homes increased in May while “[T]hey will be taxed like never be- –10 amid skepticism that the frozen-food re- sales of existing homes declined that fore!,” he tweeted. Walgreens naissance can continue. month. Rite Aid GENERAL ELECTRIC CO. CHIPOTLE MEXICAN GRILL INC. NIKE INC. –15 GE shares notched their Wed. Thurs. Fri. Investors were left cold by Nike shares enjoyed their best day in three years, af- the turnaround blueprint un- biggest gain in nearly four GE ter the company said Tues- CMG veiled by Chipotle CEO Brian NKE years Friday after the day it would shed two of AMAZON.COM INC. Niccol, who plans to intro- sportswear company re- +7.8% its units in an effort to re- -6.3% duce pick-up shelves for mo- +11% vealed that U.S. sales rose verse a painful slump. GE, Amazon reached a deal to buy an online pharmacy bile orders, add snack foods 3% in the most recent quar- whose appliances once filled American called PillPack, rattling shares of drugstores, health- to the menu and offer a happy-hour ter, after three straight periods of de- homes, will spin off its health care di- AMZN promotion each afternoon. The former clines. The company attributed the vision and sell its ownership stake in insurance companies and drug wholesalers Thursday. Taco Bell chief also wants to close un- gains in part to partnerships with e- oil-services company Baker Hughes. +2.5% Walgreens Boots Alliance Inc., CVS Health Corp. and derperforming stores and cut some commerce giants, such as Amazon, and The company also plans to shrink its management roles. But there was no sales through its own website and headquarters operations with $500 Rite Aid Corp. lost more than $11 billion in market value com- immediate plan for aggressive stock apps. Nike’s sales directly to customers million in additional cuts by the end bined. A separate announcement that Amazon would partner buybacks or an international push, and increased 15% for the year ending in of 2020. The announcement coincided with small businesses to deliver some of it packages dented analysts at Guggenheim said that left May, compared with growth of 4% in with the first day Walgreens Boots Al- investors “hangry” on Thursday, when its traditional wholesale business over liance replaced GE in the Dow Jones United Parcel Service Inc. and FedEx Corp. shares suffered their biggest one-day the same period. Industrial Average. drop since February. —Caitlin Ostroff

when he began to feel his colleagues ing the potential that individuals buted to him or any threatening The New were on the wrong track. He says can get hooked on smartphones as if statements. Carriers they were asking how Gmail should they were slot machines—the jack- Messrs. Harris, Steyer and Mc- look and emails should open rather pot being “likes” rather than coins— Namee are applying pressure on a than: “What if email is bad for peo- as part of a segment that mentioned number of fronts. Their visits to Sheriffs ple? What if email is stressing us Facebook. Recognizing a kindred Congress last fall were instrumental Cash In out?” Email, he says, “taps into spirit, he called up Mr. Harris. in getting legislators to understand some of our deepest psychological “Could you use a wing man?” he the role of social-media platforms in vulnerabilities, namely social reci- asked. election interference. Sen. Mark Of Tech procity—the pressure to respond to In search of organizational and Warner (D., Va.) found members of On Fees other people.” Disenchanted, he left political know-how, Mr. McNamee the group “invaluable on a range of Google in early 2016. next called his old Phillips Exeter tech policy issues,” his spokes- Continuedfromthepriorpage Although each had separately classmate Mr. Steyer. In a meeting woman said. That helped pave the Continuedfromthepriorpage Yet a central tenet of the cam- been critical of the tech industry, at the Common Sense offices just way for November hearings which interconnection between carriers,” a paign being run by Messrs. Harris, the men didn’t join forces until south of downtown San Francisco, forced Facebook’s 11th-hour disclo- spokesman said. Steyer and McNamee is that the in- about a year ago. Mr. McNamee had the 62-year-old Mr. McNamee sure that 126 million users had been Fee increases are a common way dustry can no longer be trusted to begun noticing abnormal patterns in showed up with Mr. Harris—a clean- exposed to propaganda, far more for carriers to offset costs without police itself. They have pushed for Facebook traffic in early 2016. As a cut “whippersnapper,” one staffer than it had let on. risking the loss of too many custom- tighter regulation in the U.S., seek- former tech analyst and manager of recalled—who fed into Mr. Steyer’s Mr. Steyer says he and others in ers, said Matt Wood, policy director ing input on either side of the Atlan- the Facebook fan page for his psy- long-held concerns about the direc- the group have had discussions for Free Press, a consumer advocacy tic from lawmakers and regulators, chedelic rock band Moonalice, Mr. tion of social media. about privacy violations with the at- group. who have credited them with help- McNamee knew better than most “What this kid is saying is exactly torneys general in California, North “These companies are taking on ing to clarify key issues and focus what a normal organic growth curve what we’ve been talking about,” Mr. Carolina, Massachusetts and New massive debt and they have to find on potential fixes. looks like on the site. Yet it didn’t Steyer told Common Sense staffers. York. The attorneys general from some way to pay for them,” he said. Mr. Harris has been covertly New York and Boston, Barbara Un- AT&T and Sprint declined to com- meeting with designers within tech derwood and Maura Healey, are ment on whether they increased ad- firms to discuss ethical design solu- among those who have announced ministrative fees to help pay down tions. He has turned his office into a investigations into the reported mis- debt. refuge and planning zone for tech- use of Facebook user data by Cam- Sprint raised its monthly adminis- nologists and whistleblowers. bridge Analytica in the 2016 presi- trative charge to $2.50 from $1.99 Mr. Steyer has been a behind-the- dential election, and of the data- earlier this year. The 51-cent increase scenes ramrod behind a sweeping sharing partnerships Facebook had would amount to nearly $200 million data privacy bill passed by the Cali- with device makers and other cor- in additional annual revenue if ap- fornia state legislature and signed porations. Cambridge Analytica has plied to all of Sprint’s 32.1 million into law by the governor Thursday. denied wrongdoing in the Facebook postpaid wireless lines. A spokes- The legislation will give Californians incident. woman said the charge will raise less protections that could be stronger Mr. Steyer and Mr. Harris are than that because it doesn’t cover in some cases even than Europe’s now in the midst of a year-long business lines. Sprint said the user fee General Data Protection Regulation roadshow, which has taken them to covers payments to local telephone law, which went into effect in May, New Orleans and Los Angeles. companies, property taxes and legal And it may spur Congress to con- At one such event at the home of sider federal privacy legislation over a prominent San Francisco family in the next couple of years. April, a group of about 50 business Consumer advocates Mr. McNamee is a regular on leaders and philanthropists gath- have complained business television railing that the ered to hear Messrs. Steyer and industry hasn’t yet learned the right Harris talk. for years about the lessons. “I give [Google] some credit KRISTIN BRAGA WRIGHT FOR THE WALL STREET JOURNAL Mr. Steyer explained that he vis- ‘below-the-line’ fees for taking a first step,” Mr. Mc- Tristan Harris, left, and Jim Steyer speaking on a panel about children and its tech executives personally, deliv- Namee says of the search giant’s re- technology at the Aspen Ideas Festival this week. ering the following message: “This on wireless bills. cent digital well-being initiative. is about which side of history do “And a thousand steps from here, Extremely Online Mr. Steyer, also 62, doesn’t intim- you want to be on.” we’ll have this thing under control.” Nearly 90% of internet users idate easily. In 2012, he had written Mr. Harris explained how social- obligations, among other expenses Those types of comments haven’t are online every day a book called “Talking Back to Face- media sites keep kids glued to their Verizon Communications Inc. said always been well received around book,” which was focused on the im- smartphones. Take Snapstreaks, a it charges subscribers a $1.23 Silicon Valley. In January, Andrew 50% pact of social media on children (he popular Snapchat feature that as- monthly administrative fee help cover Bosworth, a vice president and Several has four of his own). The book cau- signs “a fireball and a number” next similar operating costs. member of Facebook’s management times a day tioned parents about an array of po- to every name in a child’s contact T-Mobile US Inc.’s base rates cover Jan. ’18: 49% team, tweeted: “I’ve worked at 40 How often tential harms, including tech addic- list, counting the consecutive days all monthly service fees and sales Facebook for 12 years and I have to internet users tion, depression, eating disorders, the child has sent a snap to that taxes. ask: Who the f*** is Roger Mc- use the internet Almost cyberbullying and privacy. It cited friend. Skip a day and the streak Sprint and T-Mobile in April Namee?” He later took down the 30 constantly the results of a study, released by disappears. “Sounds ridiculous, agreed to an all-stock merger that tweet. 30% Consumer Reports the prior year, right? But kids are hooked on it,” he would combine the country’s No. 4 Others fear their efforts, however that found 7.5 million children youn- said. and No. 3 wireless carriers. The Fed- Several well-intentioned, will lead to exces- ger than 13 years old were on Face- The feature appears to be based eral Communications Commission and 20 times a sive government intervention. Regu- week or book, despite federal law designed on a design trick Mr. Harris learned Department of Justice are reviewing lation is “usually too late and not less often to keep them off until that age. at Stanford University that can be the deal’s effects on competition, a very effective—it’s almost always 13% The book struck a nerve at Face- used to influence behavior. This can process that is expected to take sev- bolting the barn door after the 10 book headquarters in Menlo Park, be tailored to positive experiences— eral months. Sprint had $32 billion of horses have bolted,” says Venky Ga- About Calif. Ms. Sandberg requested a like totaling up days of exercise—or net debt on its balance sheet at the once a day nesan, a partner at Menlo Ventures. 9% meeting to discuss the book and it can be used to get kids to waste end of March. The notion that a Silicon Valley 0 other issues Common Sense was time on an app. Mr. Harris said he Consumer advocates have com- insurgency would be led by these 2015 ’16 ’17 ’18 pressing. She asked that Mr. Steyer wanted to force the industry to plained for years that wireless com- three men is surprising in part be- be excluded, recalls Bill Price, re- make more responsible design panies use misleading terms to de- Source: Pew Research Center Jan. 2018 [N=1,785] cause they are in many ways con- tired co-founder of private-equity choices in product design, to accom- scribe their “below-the-line” fees. summate insiders. THE WALL STREET JOURNAL. firm TPG Capital and board chair at plish more than just increasing time Administrative charges are often Messrs. Steyer and McNamee the time. At the meeting, Mr. Price spent on devices. listed alongside federal and state were classmates at Phillips Exeter occur to him at first that outside recalls, Ms. Sandberg and Facebook Snap has de-emphasized the taxes, suggesting they cover govern- Academy, the exclusive New Hamp- forces might be trying to interfere Vice President Elliot Schrage con- Snapstreak feature as part of a re- ment-mandated costs. Carriers actu- shire prep school where Mr. Zucker- with U.S. elections. “What the hell veyed that the book and the non- cent redesign. When asked why, a ally set administrative fees at their berg decades later first encountered was wrong with me? It was a mas- profit were causing problems for spokesman said the company regu- own discretion. the student directory known on sive failure of analysis,” he says. Facebook “and they could cause larly makes improvements but The companies do explain the campus as “the facebook.” Mr. Mc- A self-described hippie who hap- problems too.” wouldn’t elaborate. charges in writing and disclose fee Namee was an early investor in pens “to love capitalism,” Mr. Mc- They weren’t happy with the title At the April event, Nina Stanford, changes through bill inserts and other Facebook. Mr. Steyer, the brother of Namee was already worried that the of Mr. Steyer’s book, Mr. Price says, a media consultant and wife of notices attached to customers’ billionaire environmentalist Tom tech companies had become so big or some of Common Sense’s policy Sherpa Capital co-founder, Scott monthly statements. Steyer, has spent 15 years building a they were choking economic stands. Mr. Schrage “in particular Stanford, questioned how regulation Wireless carriers have struggled network of lawyers, lawmakers, and growth. By November, he was con- tried to say ‘we’re big and impor- would do any good against fast- with slowing revenue growth in re- business leaders though Common vinced their platforms had become tant in Silicon Valley…Maybe you learning artificial intelligence. “It’s cent years. T-Mobile and Sprint com- Sense Media, which provides par- propaganda tools for bad actors try- don’t want to be on the board of like we’re ants in a hurricane,” she pounded the industry’s woes in 2016 ent-friendly reviews of movies and ing to undermine democracy. The Common Sense if you want to be told Mr. Steyer. by launching mobile data plans with- advocates for online privacy. mistake also stuck with him because doing business in Silicon Valley,’” Her husband Scott, a former out caps, forcing AT&T and Verizon to Mr. Harris, a generation younger he’d once been an adviser to Mr. Mr. Price recalls. Goldman Sachs Group Inc. banker follow suit. The consumer-friendly than the other two men, brings Zuckerberg and even helped him A spokeswoman for Ms. Sandberg whose venture-capital firm was an moves have pressured industry prof- street cred as the founder of a hire Chief Operating Officer Sheryl confirmed she was at the meeting. early investor in Airbnb Inc., agreed its and made it cheaper than ever for startup that was acquired by Sandberg. Mr. Schrage relayed through a that the tech industry needed to customers to download photos, videos Google, where he then worked as a Yet he says he couldn’t get them spokeswoman that he recalled the change, but questioned the need for and games on the go. Some telecom product manager. to take his concerns seriously. meeting from six years ago and the regulation. After the session, he ap- executives earlier this year said they At Google, Mr. Harris was work- In April 2017, Mr. McNamee saw conversation about the book, but he proached Mr. Harris, and said: Let would be less generous with dis- ing on the next generation of Gmail Mr. Harris on “60 Minutes” discuss- denies making the comments attri- me know what I can do to help. counts in the future. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | B3 BUSINESS NEWS Amazon Puts Drugstores on Edge Novartis PillPack deal threatens To Shed chains’ generic sales, but costliest drugs Eye-Care may stay out of reach Business BY JONATHAN D. ROCKOFF BY BRIAN BLACKSTONE AND JOSEPH WALKER AND CARLO MARTUSCELLI

Amazon.com Inc.’s agree- Novartis AG on Friday said ment to buy an online phar- it would spin off its Alcon eye- macy sets the stage for the in- care unit, a business analysts ternet retailer to make it more think could be valued at more convenient to fill a prescrip- than $20 billion, marking the tion. But the deal alone won’t latest strategic move by the likely address a bigger problem Swiss drugmaker’s new chief for patients and their employ- executive. ers: the high cost of many Vasant Narasimhan, who drugs. took the helm earlier this year, The purchase of PillPack has pledged to refocus Novar- Inc. will give Amazon a plat- tis on drug development. After form to sell medicines but not the Alcon spinoff, Novartis will alter how high-price drugs are be entirely a prescription-med- paid for, industry experts say. icine company, “which is And the deal doesn’t yet give where I think we need to be to Amazon the expertise to han- be successful,” Mr. Narasimhan dle the costliest drugs—bio- said in an interview. tech medicines that require Under his leadership, the special handling. Basel-based company agreed in “That’s a long way from a March to sell its stake in a fundamental disruption of the consumer health care business U.S. drug channel,” says Adam to joint-venture partner Glaxo-

Fein, chief executive of the CHRISTOPHER DILTS/BLOOMBERG NEWS SmithKline PLC for $13 billion. Drug Channels Institute, which The internet retailer could draw customers away from brick-and-mortar pharmacies by offering easy online ordering and fast shipping. It also agreed in April to buy provides research on the drug U.S.-based gene-therapy com- supply chain. ready offers the services pro- by extremely costly biotech pany AveXis for $8.7 billion. The details of Amazon’s Prescription for Growth vided by PillPack, but hasn’t therapies, which are made Novartis said Alcon will be- plans remain uncertain. The Chain drugstores dispensed 2.7 billion prescriptions last year, up 21% seen a “large shift of patients” from living organisms, often come a stand-alone business company hasn’t said how it from 2012. But the most expensive branded medications are increas- interested in prescriptions by infused or injected, require publicly traded in Switzerland will use PillPack to move ingly distributed via mail-order. mail. “We are well positioned cold storage and aren’t dis- and the U.S. Novartis bought deeper into health care, after in the market and ahead in this pensed through retail pharma- Alcon in two transactions some earlier forays into selling Chain drugstores Mail pharmacies area,” CVS said. cies. These therapies are usu- starting 10 years ago for a to- medical supplies and over-the- 30-day prescriptions Prescription revenue On the low end of drug ally sold through specialty tal of more than $50 billion. counter medicines. 3.0 billion $140 billion costs, the Seattle company pharmacies with the capability The acquisition proved a big Amazon declined to com- could have an impact. Amazon to handle and dispense com- disappointment, and over the ment. 2.5 120 could quickly apply its order- plex therapies—and many ha- past year Novartis has been re- Amazon’s entry does fulfillment and distribution ca- ven’t lost patent protection, so viewing its ownership of the 100 threaten to siphon market 2.0 pabilities to pills, which usu- they are sold by a single manu- unit, whose sales growth share from the brick-and-mor- ally don’t need special facturer able to charge higher picked up recently. tar pharmacies that have long 80 handling like cold storage. And sums. “Alcon has returned to a po- dominated the $413 billion an- 1.5 Amazon might be able to use Because of the storage and sition of strength and it is time nual U.S. market for filling pre- 60 its negotiating power to offer handling issues, Amazon may to give the business more flex- scriptions experts say. About 1.0 generic pills—which are often stay away, at least initially, ibility to pursue its own 40 5.8 billion prescriptions are made by several rival manufac- from selling such drugs, which growth strategy,” said Mr. filled each year, according to turers that compete on price— treat diseases like cancer, mul- Narasimhan. 0.5 20 the Drug Channels Institute. cheaply enough that patients tiple sclerosis and rheumatoid Novartis didn’t provide an Amazon could draw custom- 0 0 would be able to afford paying arthritis. estimated valuation of the ers, especially its loyal Prime for them without the help of Much of the power over spinoff. Analysts at Vontobel members, away from the ’132012 ’14 ’15 ’16 ’17 2012 ’13 ’14 ’15 ’16 ’17 their health plans. drug costs is in the hands of Research said Alcon could have 64,500 retail pharmacies in the Source: Drug Channels Institute THE WALL STREET JOURNAL. Officials from the online re- middlemen like pharmacy-ben- a market capitalization be- U.S. by offering the ease of or- tailer have met with generic- efit managers that negotiate tween $15 billion and $23 bil- dering on Amazon’s website cies earn a gross profit of $12 years, after brick-and-mortar drug-industry leaders to learn discounts for employers and lion. The expected value is and the convenience of its fast to $16 per prescription, ac- pharmacies cut their prices to about the business, according insurers. Analysts have specu- lower than what Novartis paid shipping. cording to Mr. Fein, but much lure patients back into their to people familiar with the dis- lated that Amazon could be in- for Alcon in part because the Amazon, which had $16.7 of that goes to fund the over- stores and lobbied for state cussions. terested in taking over the drugmaker is retaining the billion in cash at the end of head costs of operating stores. laws limiting health plans’ But industry experts say work of PBMs, which have ophthalmology pharmaceuti- March, can afford to undercut Retail pharmacies are ex- ability to require mail order, that would be trimming faced criticism for making pa- cals business that was part of its competitors on price to take pected to put up a fight. Mr. Fein says. around the fringes because tients pay high copays or de- Alcon before being transferred market share, similar to the Spending on mail-order phar- CVS Health Corp. said in a much of the increase in U.S. ductibles and making money to Novartis’s innovative medi- way it did with books. Pharma- macies slowed the past several statement Thursday that it al- drug spending is now driven off drug-price increases. cals unit two years ago. SandRidge ZTE Overhaul Leaves Power Structure Intact ZTE Corp. replaced its At least two of ZTE’s outgo- and executives will have a de- Trump intervened, the Com- Seeks Bids Wired for Influence board of directors on Friday to ing directors may also continue terrent effect on other individ- merce Department struck a BY WAVERLY COLVILLE Outgoing board members of ZTE satisfy U.S. demands and se- to wield influence over the uals at ZTE and elsewhere, by deal earlier in June to overturn will retain power in the company cure a deal to save the Chinese firm because they hold stakes showing that violative behavior the ban if ZTE agreed to per- Now under the control of through their stakes. telecom giant’s stricken busi- in a company that owns part of has consequences for the indi- sonnel changes and paid a $1 activist investor , ness, but the changes may be the shareholder, a holding viduals involved,” Mr. Ross billion fine. the board of SandRidge En- ZTE’s shareholding structure company called Zhongxingxin. said. The continuing influence of ergy is pushing plans to sell The U.S. Department of Com- “There is no basis for re- key personnel and Chinese ZTE By Dan Strumpf the company by casting a merce demanded new leader- quiring shareholders of a pub- state actors in ZTE’s affairs and Wenxin Fan in wider net for interested par- 30.3% 69.7% ship at ZTE but it doesn’t re- lic company to pick our direc- adds ammunition to critics of Hong Kong and Kate ties. quire any executives or tor candidates, nor for the deal, which was brokered O’Keeffe in Washington SandRidge has been work- Zhongxingxin Other directors to divest stakes. requiring the largest share- by the Trump administration ing with RBC Capital Markets investors The shuffling at ZTE may holders to divest,” he added. amid a broader trade fight be- LLC on a possible sale since less sweeping than they ap- end up resembling “musical A spokeswoman for ZTE, tween the U.S. and China. A March, when the oil and natu- 51.5% 48.5% pear, a Wall Street Journal re- chairs,” said Mark Stokes, a which is publicly traded in large, bipartisan group in Con- ral gas producer rejected an view of corporate records former China director in the Hong Kong and Shenzhen, de- gress is advancing legislation unsolicited offer from Mid- found. Office of the Secretary of De- clined to comment. to ensure that the April sales states Petroleum Co. All 14 directors, including fense. “If you want real change The Commerce Department ban remains in effect. The company, which had set Zhongxing WXT Xi’an Micro- Chairman Yin Yimin, resigned in leadership, you’d probably in April banned American com- “The seemingly endless pit- electronics a June 25 deadline for bids, Guoxing Ruike from ZTE’s board. The com- have to target the actual insti- panies from selling compo- falls and loopholes that come said Friday the deadline was Aerospace pany named eight new direc- tutions behind those people,” nents and software to ZTE that with the administration’s bad being extended but didn’t Guangyu tors as part of an overhaul that said Mr. Stokes, who is now ex- the Chinese company needs to ZTE deal, including the board specify the date. The Okla- includes the firing of dozens of ecutive director of the Project make smartphones and tele- restructuring, are exactly why homa City company also en- State-owned top executives. The incoming 2049 Institute, an Arlington, coms gear. The ban, which re- the administration shouldn’t be couraged other potential bid- board members, however, were Va.-based think tank. mains in effect, was instituted bending over backwards to ders to join in. Private companies with handpicked by ZTE’s state- The settlement sets “a new to punish ZTE for violating help the government of China SandRidge said it has en- stakes owned by some backed controlling shareholder, standard for protection of terms of an earlier deal meant while they threaten our na- tered into 26 confidentiality outgoing board members filings show, and the majority American technology,” Com- to settle allegations that it en- tion’s jobs and security,” Sen- agreements with parties who Note: As of Dec. 31, 2017 are veteran officials of the merce Secretary Wilbur Ross gaged in sanctions-busting ate Minority Leader Chuck are actively pursuing the com- Sources: ZTE, company filings shareholder or its state-backed said in a statement to the Jour- sales to Iran and North Korea. Schumer said in a statement to pany, including Midstates. THE WALL STREET JOURNAL. parent companies. nal. “Removal of the directors After President Donald the Journal. SoftBank Gains Washington Lobbyist at Ford’s Expense

BY CHRISTINA ROGERS with the White House on a As SoftBank expands the during the financial crisis and AND ANUPREETA DAS range of issues, including network of entrepreneurs it a deal to implement new fuel- President Donald Trump’s backs, its executives also want economy regulations under SoftBank Group Corp. push to ease fuel-economy to create a government-rela- President Barack Obama. He poached Ford Motor Co.’s rules and the threat of new tions group that can help reports directly to Ford Execu- chief global lobbyist to lead U.S. tariffs on auto imports. those company founders navi- tive Chairman Bill Ford Jr. and the Japanese technology com- Mr. Ojakli’s hiring is aimed gate policy and regulation, the oversees the company’s efforts pany’s effort to build a Belt- at bolstering SoftBank’s pres- person said. to engage with governments way presence. ence in Washington, D.C. The In May, SoftBank said Mar- world-wide. Mr. Ojakli also Ziad Ojakli, a Ford group Japanese company wants to celo Claure, its new chief oper- leads Ford’s philanthropic vice president who has led the cultivate more sustained rela- ating officer, would lead its arm. Detroit auto maker’s govern- tions with officials in Wash- global government-affairs ef- Mr. Ojakli’s name recently ment relations strategy since ington because the U.S. is a forts. Mr. Ojakli is the first of surfaced in the news in con- 2004, resigned Thursday and major market for its consider- several planned hires aimed at nection with an overture that will leave the company mid- able investments, a person fa- aiding SoftBank’s transition Michael Cohen, Mr. Trump’s July, Ford said. He starts at miliar with the matter said. from a Japanese telecommuni- former personal attorney, SoftBank on Aug. 1. The Tokyo-based company, cations firm into a global in- made in January 2017 to pro- Mr. Ojakli is the latest in a through its $100 billion Vision vestment company, the person vide consulting services to line of prominent executives Fund, has invested in Uber said. Ford, according to people fa- to leave the No. 2 American Technologies Inc., WeWork Mr. Ojakli, 51 years old, has miliar with the matter. Mr. car maker since Chief Execu- Cos. and other startups. Soft- been a steady presence for Ojakli quickly rebuffed Mr. Co- tive Jim Hackett was hired Bank also recently invested Ford in Washington, helping to hen’s offer, which special last year. $2.25 billion in GM Cruise steer its government-relations counsel Robert Mueller later

His move comes as Ford Holdings, a developer of driv- strategy through some pivotal learned about in the course of PABLO MARTINEZ MONSIVAIS/ASSOCIATED PRESS and other auto makers are erless cars that is majority- moments, including the U.S. his investigation, the people Ziad Ojakli, right, accompanying then-Ford CEO Mark Fields after seeking to court influence owned by General Motors Co. auto industry’s near collapse said. a visit to theWhite House in early 2017. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. TECHNOLOGY

Tiny Power Devices like game machines and smartphones have hundreds of the part known as a multilayer ceramic capacitor. Without This Tiny Part,Your Phone Average MLCC units per device Automobile 3,050 units TV Set Won’t Work 820 Computer

760 Smartphone Speck-sized components called MLCCs power everything from 400 smartphones to cars. And there’s a global shortage of them. Source: Paumanok Publications BY TAKASHI MOCHIZUKI THE WALL STREET JOURNAL.

ing customers to pay more for ML- CCs, the first price increase in 18 years. Taiyo Yuden shares are up more than 50% since late April. “Demand during the internet bubble around 2000 was mostly from personal computers and cellphones, but what we have to- day is a much wider range of de- vices, such as smartphones, cars, smart devices, data centers and equipment for telecommunication base stations,” said Shoichi To- saka, Taiyo Yuden’s chief execu- The smallest tive, in May. Some analysts say demand capacitors are might have peaked because the 1 /3 the size of growth rate of smartphone sales has flattened. U.S.-China trade ten- the period at sions could slow the global econ- the end of omy and reduce Chinese exports to this sentence. the U.S. of electronic products that use MLCCs. Still, these analysts say the tight supply of the parts is

TAIYO YUDEN CO. likely to last another 12 months. That is forcing electronics mak- ers to alter their usual practice of f store shelves don’t have electronic device could work. MLCC to making a piece of pot- process,” says Katsuya Sase, head keeping on hand only the amount the electronic device you’re A proliferation of smart devices, tery. A material called barium ti- of electronic components at To- of MLCCs they need right away, looking for, the cause might factory automation robots and tanate is mixed with a variety of kyo-based Taiyo Yuden. say people in the industry. Nor- lie in a chunk of ceramic more sophisticated cars has lifted organic solvents, then poured In recent years, companies mally, a large inventory of parts is Iless than a millimeter on demand for the MLCC. A typical flat, with layers piled one on an- have learned to make the ceramic a risk because a product might fail each side. gasoline-powered car may require other like a tiny layered pastry. bits ever smaller, helping smart- or the economy could cool down. It happened in Japan earlier only a few thousand, but an elec- The product is then fired in a phones get thinner. The smallest But now, the bigger risk is getting this year when Sony Corp.’s Play- tric car might need 10,000, say in- tunnel furnace. MLCC is less than a quarter of a caught short, so companies are Station 4 suddenly became hard to dustry experts. millimeter on each side, a barely building up stockpiles of several find. A popular new game called “The industry is going through visible speck. months’ or even a year’s worth of “Monster Hunter: World” led to a tightness it has never seen be- Each maker has its own The big makers of MLCCs are the component. surge of demand for the video- fore,” says SMBC Nikko Securities responding to the shortage by in- Some electronics executives are game machine. Engineers at Sony analyst Ryosuke Katsura. He says recipe for making the vesting more in the component. adding the personal touch in a bid say the company couldn’t quickly electronics makers accustomed to capacitors, and most of Kyoto-based Murata, which makes to ensure supply. CEOs usually make more because components getting the part right away now many electrical parts and batter- leave parts procurement to lower- ran short, especially the part have to wait six months. the details are secret. ies, doubled company-wide capital ranking executives, but in May the called a multilayer ceramic capaci- Only a handful of makers, mostly investment to more than ¥300 bil- head of Taiwan-based electronics tor, or MLCC. Asian, produce the component. The lion, or about $2.7 billion, in the assembler Pegatron Corp. joined Consumers never see one of top three companies—Murata Man- Each maker has its own recipe— year that ended in March. It plans the company’s head of procure- these tiny components, but their ufacturing Co., Samsung Electro- how much of which solvents to to invest more this year and add ment in visiting Murata, say peo- smartphones have hundreds of Mechanics Co. and Taiyo Yuden use, how long to mix the materials, 10% to its MLCC capacity, which ple who saw the visit. Pegatron them and their cars have thou- Co.—own 60% of the market, ac- how to set the furnace—and most already tops 1 trillion units a year. was seeking Murata’s support for sands. The part, which costs less cording to research firm Paumanok of that is secret. Murata’s share price has risen securing MLCCs for the second than a penny apiece, helps control Publications. Samsung said in June “It’s impossible to steal the about 30% since late April, giving half of this year when demand the flow of electricity and stores that it wouldn’t be able to accept complete formula by studying our it a market capitalization of nearly peaks, they say. power for semiconductors, a func- new orders “for a while.” product because some materials $40 billion. Its shares rose 7% in —Timothy W. Martin and Yoko tion without which virtually no Companies compare making an get evaporated during the firing mid-June when it said it was ask- Kubota contributed to this article.

KEYWORDS | CHRISTOPHER MIMS Tech’s Hot New Talent Incubator: Community College

Two-year institutions emerge as a pipeline for companies like Amazon, Google and IBM

Long stigmatized hiring 25,000 veterans by 2021. as “junior,” commu- Tesla has announced partner- nity colleges might ships with two community colleges seem like an un- to train people to assemble and likely source of tal- service electric vehicles, and is in ent for major tech talks with at least one more, Mi- companies. Yet, in- ami Dade College, to expand the creasingly, tech giants are turn- program, says the dean of MDC’s ing to these two-year schools to engineering and technology de- find the skilled workers they des- partment, Antonio Delgado. perately need. The Amazon apprenticeship and “Community colleges are just Tesla’s 12-week training program absolutely key” in companies’ are unusual in that they lead di- search for new tech talent, says rectly to jobs at those companies. Edward Alden, a senior fellow at Google recently announced it is the Council on Foreign Relations partnering with 25 community and author of a recent report on colleges in seven states, as well the future of work. Tech compa- as more than a dozen companies nies like Amazon, Google and IBM including Walmart, Hulu, Sprint, have all caught on, he adds, and GE and Bank of America, to the trend of using community col- launch an IT-support professional leges to establish talent pipelines certificate that students can earn fis “taking off across the country.” in eight months. Americans are burdened with Certification programs tend to about $1.4 trillion in student loan be more about training students to debt. One in four has a low-wage go to smaller firms where they can job. Meanwhile, there are hun- use the technology of the compa- dreds of thousands of open posi- nies sponsoring the programs, tions in the U.S. in fields like cy- GOOGLE such as Amazon’s cloud services bersecurity, cloud computing, Google training in Columbia, S.C., above. Tech firms are creating apprenticeships and degrees to get workers. and Google’s web apps, not about computer programming, data sci- recruiting for these companies, ence, tech support and skilled these programs are so new, it’s part-time. Mr. Edwards, for one, get a degree, in preparation for a says Debbie Hughes, vice president manufacturing. In many of these too early to say whether or not has three part-time gigs, primarily full-time job at Amazon. at the Business-Higher Education fields, the “skills gap” between they are successful. in tech support. This allows him to One reason tech companies turn Forum, a not-for-profit sponsored available candidates and open po- Sam Edwards, a 20-year-old work remotely and balance them to community colleges is that they by government grants and Fortune sitions is only projected to grow. student at Wake Tech Community with his studies. He was eligible may have need for candidates they 500 companies in need of talent. Tuition costs at community col- College in Raleigh, N.C., embodies for Wake Tech’s Fostering Bright can’t get elsewhere. The challenge for community leges are typically less than half both the opportunity and the Futures program, which was estab- For example, all of the 130 ap- colleges in particular is that com- those of an in-state four-year insti- challenges facing students who lished to help address the chal- prentices in the Northern Virginia panies may say they are more will- tution. As a result, they tend to at- choose this route. Wake Tech of- lenges faced by young people who program are military veterans. ing to hire based on skills rather tract low-income students and fers internships with companies were once in foster care. One reason Amazon pursues vet- than education, but analyses of members of racial minorities, an- that have local offices, including The program provides Mr. Ed- erans is that so many have al- their hiring patterns and job post- other reason tech giants—which IBM, Lenovo and Cisco, and also wards with living expenses, men- ready have government security ings reveal they still favor workers are lately being held accountable does continuing education for em- tors and a faculty contact he can clearances, says Chad Knights, with traditional four-year degrees, for their poor diversity numbers— ployees of companies such as In- call anytime, to help with nearly dean of math, science and engi- says Ms. Hughes. are interested in them. fosys and Credit Suisse. Five years anyissue,fromfindingaplaceto neering at Northern Virginia. Se- Which means students like Mr. There’s promise in this strat- ago, Wake Tech had fewer than 20 live to buying a car. curity clearances, which can take Edwards, who have already over- egy: Because of a growing differ- students doing internships at Amazon recently launched, in years to get, are a necessity for come considerable odds to get en- ence between wages for different companies like these; today it’s in partnership with Northern Virginia Amazon employees who will work try-level jobs in tech, may still be kinds of jobs, 30% of those with excess of 400, says college Presi- Community College, both an asso- on data centers that handle sensi- left behind by a system that talks an associates degree now out- dent Stephen Scott. ciates degree in cloud computing tive government data. Amazon about alternate paths to jobs yet earn the average holder of a bach- Overall, the college serves and an apprenticeship program in also says it wants to address high acts in ways that run counter to elor’s degree. Yet since many of 74,000 students, 90% of whom are which Amazon pays students to rates of veteran unemployment by these goals. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | B5 HUMAN CAPITAL

Gen. Robert Neller speaks at Camp Pendleton, Calif., in 2015. OFFICE OF MARINE CORPS COMMUNICATION (2)

The most brilliant THE CAPTAIN CLASS | SAM WALKER without losing focus in combat. tactical formation de- Gen. Neller concluded that vised by any team in each rifle squad needed two addi- the last half-century One General’s Bet on tional billets—an assistant squad isn’t football’s Packer leader and a squad systems oper- sweep, basketball’s ator focused on technology. Add- triangle offense or ing two people presented a prob- anything else relating to sports. lem, however: Marine squads It’s the rifle squads of the were already unusually large. United States Marine Corps.. Reshaping the Marines When Gen. Neller asked squad No matter what hard-bitten cor- leaders if they thought they could ner of the world they’ve deployed manage 15 Marines at once, they to, the Marines have organized said no. themselves into divisions, regi- The 13-member rifle squad, a signature formation, was the best offense in In May, Gen. Neller unveiled the ments, battalions, companies and most sweeping changes to Marine platoons. The tip of this tail—the history—until technology and a new leader sealed its fate infantry combat organization in 70 last infantry formation of sub- years. Not only did he add those stance—is a squad of 13 Marines new billets, he decided to reduce a composed of a leader and a dozen otic leadership breeds of all—the squad’s size to 12 by eliminating riflemen grouped into three “fire inside outsider. one Marine from each of its three teams” of four. Not long after he joined the fire teams. Opposing commanders knew the Marines in 1975, Gen. Neller says, Longtime Marines worried the Marines had honed their battle his first commanding officer changes might undermine squads in tactics to a lethal degree in fields, dubbed him the president of the “I battle by disrupting their instinc- forests, mountains and deserts. don’t see why” club. As he tive ability to maneuver together. Former Marine Capt. Nate Fick, climbed the ranks, his contrarian Gen. Neller counters that the author of “One Bullet Away,” a streak came with him. “I was al- Marines have used different squad best-selling account of the inva- ways the guy in the audience formations before—particularly in sions of Afghanistan and Iraq, lik- throwing the metaphorical Molo- Vietnam, where squads had to ab- ens Marine squads to world-class tov cocktail,” he says. sorb heavy casualties. dance troupes. “Everybody’s move- Few resident gadflies ever get It goes without saying that ment depends on everybody to the top; they ruffle too many there’s a lot riding on this. else’s,” he says. feathers along the way. But when In the end, though, Gen. Neller On a recent morning at the the commandant’s job opened in knew that leaders must be deci- Pentagon, I asked Marine Corps 2015, the Marines had spent sive. He also believes that some- Commandant Robert Neller about nearly two decades in a state of times the biggest risk of all is do- these iconic squads of 13. He be- constant deployment. They hadn’t ing nothing. “So I made a gan by saying they had taken on had time to fully address the decision,” he says. “an almost mythical lore and sta- shifting map of global threats. It’s difficult to say whether in- tus.” Then he placed his elbow on Above all, they needed to get a siders are better or worse at shak- an impeccably polished confer- handle on technology. ing up tradition-bound institu- ence table and addressed the Any large business in this pre- Gen. Neller is reshaping the Marine Corps to adapt to new technologies. tions. But all members of this question many Marines can’t wrap dicament might look to the out- breed have one major advantage: their heads around: why he wants side for a disruptive CEO to shake brushed aside all suspicions about prepared for a “bigass fight.” They’re natives. They understand to scrap them. things up. As a tradition-bound technology by investing in tablets, When it came time to re-exam- the people involved and what With his steady gaze, close- citadel, the Marine Corps didn’t drones and laser-guided muni- ine rifle squads, the Marines con- they’re capable of. cropped silver hair, permanent have that option—but it did have tions. He once proposed offering ducted a number of tests—but “I know I’m asking a lot,” Gen. field tan and congenital serious- Robert Neller. “The powers that be enlistment bonuses to hackers. Gen. Neller didn’t believe there Neller said of his squad reforms, ness, Gen. Neller is every inch a were almost like, ‘OK, Neller. Convinced that the Marines are was time for exhaustive study. “but Marines aren’t normal people.” Marine Corps general—the care- You’ve been out here wanking for in “the people business,” he’s con- The battlefield intelligence pour- —Mr. Walker, a former reporter taker of a proudly insular warrior 38 years. We’re going to make you ducted scores of town halls and ing in from new forms of tech- and editor at The Wall Street culture that has prevailed in deci- own this,’ ” he says. has more than lived up to his rep- nology was enormously valuable, Journal, is the author of “The sive battles from Belleau Wood to In less than three years, he’s utation for bluntness. In Decem- but it needed to be collected and Captain Class: The Hidden Force Iwo Jima. Underneath that armor, reconsidered everything about the ber, he made headlines in Norway analyzed. Traditional squads That Creates the World’s Greatest however, lurks one of the most ex- Marines, from rifles to socks. He’s by telling a group of Marines to be lacked the bandwidth to do this Teams” (Random House). Sri PERSONAL BOARD OF DIRECTORS

Shivananda Malini Patrick Beth Mark Jed Entin Chief Technology Officer, PayPal Bhattacharya Lencioni Axelrod Carges Data engineer at Wife Author and Vice president of Former chief PayPal During his 17-year climb through president of Table employee technology officer Mr. Shivananda’s Group experience at at eBay Every week, Mr. the ranks of eBay and PayPal from most important Airbnb Shivananda software engineer to the C-suite, adviser is also his Mr. Shivananda Mr. Shivananda meets with a Mr. Shivananda was guided by a closest personal regards authors as Raji Arasu considers Mr. different junior belief that “successful leaders get connection—his keysourcesof Senior vice Carges an employee—Mr. good advice from everywhere.” He wifeof22years. insight: “It’s people president of core important sponsor Entin is one he's relies most heavily on five different “I’ve known her I never meet but I platform and who helped him met with—to mine his or her sources of guidance: personal since I was 17, so get the services at Intuit meet his potential given that, I just opportunity to by putting him “in knowledge, a connections, authors, mentors, naturally go to have a From Ms. Arasu front of practice he dubs sponsors and reverse mentors. her,” he says. conversation he learned to opportunities that “reverse Here, standouts from each of Mr. [with] through tackle dilemmas would otherwise mentoring.” He Shivananda’s advisory categories. their literature.” with courage; not be something says it helps him He likes Mr. from Ms. Axelrod I pursued,” he stay current as a Lencioni’s book he learned “the says. When eBay leader: “it gives “The Five split off PayPal, me good direction Age 45 art of modulation Dysfunctions of a as a leader,” he Mr. Carges offered in how I should Education Bachelor of technology in Team” for its says. lessons on how to run an mechanical engineering from JNTU emphasis on drive organization that College of Engineering (Hyderabad, finding positives in transformation helps everyone India); M.S. in mechanical engineering negative within thrive.” from Ohio University situations. organizations. Family Two children (Mahima, 18, and Aakash, 12) If you could have any entry level role at PayPal, what would it be? Software engineer on the security team When does your alarm go off on weekdays? 6 a.m.

—Laine Higgins JASON HENRY FOR THE WALL STREET JOURNAL For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | B7 STRATEGY

History of TYPICAL SITE TODAY Rock 1

The drilling of the S.H. Griffin 2 Estate 4 fracking site well began in June 1998. Twenty years later, fracking sites have evolved into small factories. 3 Rig GRIFFIN S.H. Water Control van ESTATE 4

4 Sand Chemicals Storage

Well

6

Sources: 5 U.S. Energy 1 Used 229,000 pounds of sand in Information Administration; 1998, 30 million pounds today. Vengosh (water); CabotOil&Gas, 2 The S.H. Griffin required 1.2 million Range Resources (cost); The Railroad gallons of water. Today sites use Commission of Texas between 2 and 13 million gallons.

3 Some fracking sites today have up First month natural to 30 wells. gas production in 4 thousand cubic The original site was 3 acres. Well feet a day pads today range in size from 4 to The 1998 25 acres. site cost GRIFFIN TODAY $600,000 to 5 Vertical well depths vary by WELL 15,700 $700,000 location. The Barnett shale is up to 8,000 feet deep. 957 Today a standard Marcellus 6 Horizontal wells span 5,400 to gas well costs $8 million 6,600 ft. They can reach up to

JAMES DURBIN FOR THE WALL STREET JOURNAL; BRANDON THIBODEAUX FOR THE WALL STREET JOURNAL (BELOW) Graphic by Hanna Sender/THE WALL STREET JOURNAL. 21,000 ft.

In early June, Nick Steinsberger, periods of peak development. prop open the newly formed left, revisited the well where he The headlong rush to drill and cracks to allow gas or oil to flow TheTexasWell That spearheaded the first commercially frack meant that the industry out. While Mr. Steinsberger’s well successful frack. Above left, a raced out in front of state regula- required 229,000 pounds of sand, modern operation in Midland, Texas. tors. Concerns arose about frack- a large contemporary well might ing’s impact on water and the im- require 30 million pounds of sand. as shown by its willingness to pact of methane gases leakage on The amount of water needed has take a tough negotiating posture the climate. Eventually, federal and increased as well. with Iran. state regulators responded with The S. H. Griffin well has con- Started a Revolution “The fracking boom was the increasingly sophisticated rules. tinued to produce gas for two de- biggest energy story around the And the industry adopted some cades. Over the years, more than world. But it was also the biggest voluntary measures as well. 2.6 billion cubic feet have flowed geopolitical story and the biggest Fracking has split the environ- out, worth some $8 million at to- Two decades ago, an engineer got permission to try a new way to get gas out of the ground. environmental story,” said Michael mental movement. Some environ- day’s prices. A new well with a su- Webber, deputy director of the En- mentalists opposed fracking en- persized frack can produce as Energy markets and global politics would never be the same. ergy Institute at the University of tirely; others recognized its much in a day as the original Texas at Austin. potential benefits and have worked could in two months. BY RUSSELL GOLD The proliferation of natural to minimize its negative impacts. The proliferation of large wells gas, displacing coal, helped the Fred Krupp, president of the En- has kept gas below $4 per million U.S. lower its overall greenhouse vironmental Defense Fund, praised British thermal units since De- wenty years ago, a well Front-month crude-oil price After a few years, more companies gas emissions by 13.4% in the last natural gas for helping clean up lo- cember 2016, after topping $10 in Seek And Ye Shale Find was drilled in Dish, $150 a barrel began to copy the wells drilled by decade, while growing its gross cal air pollution, lower greenhouse 2008. Mr. Steinsberger, who still The arrival of fracking helped turn the U.S. into an energy powerhouse. It’s Texas, that changed the Mr. Steinsberger’s employer, Mitch- ing supply of oil from the U.S., the prevent oil prices from rising fur- domestic product, according to gas emissions and reduce electric- oversees eight to ten fracks a a major exporter of natural gas and became the world's largest producer world. 125 ell Energy, the firm founded by the group stumbled and fought over ther. Shale output was outside of BP PLC’s Statistical Review of ity costs. “The abundance of natu- year, doesn’t see that changing of crude oil this year. T Nothing at the time late George P. Mitchell. what to do. It unsuccessfully tried their control. World Energy. ral gas has helped, but it is impor- for a long time. Crude-oil production, monthly average suggested the unassum- 100 It started in the Barnett Shale. to crush frackers by ramping up TheU.S.emergedasanewly While fracking has produced en- tant to work to make it as clean as “One day, there might be lasers ing well in the rural town north of Then other gas-bearing shales were production in 2014 to drive down confident energy powerhouse. It vironment benefits at a global scale, it can be,” he said. shooting at the rock” thousands of 10 million barrels a day Fort Worth would hobble OPEC, 75 discovered. The Marcellus Shale in the price of oil, before making its was no longer fearful that an em- it has created local problems. Dust, Meanwhile, fracking continues feet underfoot, he said. “I can’t the powerful oil cartel that had Appalachia turned out to be larger peace with them. Last week, the bargo could maim its economy. noise, truck traffic and emissions to evolve. Supersized fracks have predict that. But I can tell you nat- governed prices of the world’s and more fecund than the Barnett. cartel’s members coordinated with This attitude was reflected in a from diesel engines turned rural re- become commonplace. ural gas prices will be low for the 50 most important commodity for In 2008, more than a decade af- Russia to produce more barrels to more aggressive foreign policy, gions into industrial zones during Fracking uses grains of sand to rest of our lives.” 8 more than a generation. Or that it ter Mr. Steinsberger’s well, the in- would help turn the U.S. into a 25 dustry made another quantum global energy exporter, or shuffle leap: Not only could fracking liber- 2009: Fracking 0 U.S. the geopolitical deck. ate small natural gas molecules used for crude oil 1998 2000 ’10 As dusk settles at Brandenburg Gate in ized Inc. work with local historians and ex- 6 But it did all of that—and more. from rocks, it also worked on the Russia The well used hydraulic fracturing longer hydrocarbon chains that Berlin, a crowd gathers. A man waves the perts of a particular site to re-create scenes Front-month natural-gas price Tourism as Time Travel Saudi Arabia to crack the incredibly tight shale make up crude oil. Companies West German flag, a woman jumps up and using photos and videos, if available, or com- rocks below. It fired the first shot $15.0 per million btu such as EOG Resources Inc. began down, and someone pumps their fist. It’s Nov. puter-generated imagery or actors. in the fracking revolution—a blast to drill and frack shales bearing 9, 1989. The Berlin Wall is falling. TimeLooper, founded in 2015, uses an app 12.5 4 soon felt in Riyadh, Tehran and crude oil and natural gas liquids in The scene isn’t real, but a group of tech and sometimes a VR headset to let visitors 2002 ’10 Moscow. North Dakota and Texas. The tech- startups and tourist sites hope it feels that explore historical moments at 12 sites around “I had no idea it would cause so 10.0 nique has since spread to other way as they turn to virtual and augmented the world, including the fall of the Berlin U.S. dry natural gas production much change. I was just trying to countries such as Argentina. reality as a way of immersing travelers in his- Wall, the Great Fire of London in 1666 and 80 billion cubic feet a day keep my job,” said Nick Steins- 7.5 The proliferation of oil and gas berger on a recent visit to the well production transformed the U.S. tory when they visit notable locations. This immigrants’ arrival at Ellis Island in the early pad. He was the engineer who ob- 5.0 energy landscape. A looming emerging in- 1900s. It plans to add sites in Hong Kong, 70 tained permission to try a new ap- dearth of natural gas had led dustry of VR Japan and by year’s end. proach to completing the well that 2.5 companies to build import termi- tourism is a Owlized CEO Aaron Selverston hopes his had been drilled a mile and a half nals. Now there is so much gas combination of company’s use of tower viewers—the stand- 60 deep into a thick gray wedge of 0 the U.S. exports the fuel around future and past ing viewfinders common at piers and tourist rock known as the Barnett Shale. the world. that is ex- sites—opens the technology to broader use. 1998 2000 ’10 Mr. Steinsberger, now 54, called The low-cost fuel has become pected to grow He’s working on installing viewers in San 50 the experiment “my slick-water Source: WSJ Market Data Group the leading source of power gener- as companies Francisco for people to watch a two-minute frack.” It was the first commer- THE WALL STREET JOURNAL. ation in the U.S. Its rise has re- look to partner with more historical groups virtual-reality video of the Gold Rush of the cially successful use of sand, water shaped electricity markets, leading and tourism authorities. mid-1800s. Monthly average and chemicals, pumped into the pacts and trade-offs of fracking. to the closure of more than 200 40 “There’s an element missing from tradi- At Zreality, CEO Alexander Fridhi is work- shale under high pressure, to break “It is one of the most extraordi- coal plants, as well as a number of 2000 1997 ’10 open the rock and unleash the nat- narily important, disruptive, tech- nuclear plants. The Trump admin- tional exhibition design,” says Andrew Fein- ing on another method to convey virtual real- U.S. rig count ural gas trapped inside. It was the nologically driven changes in the istration’s current proposal to sub- berg, chief operating officer and co-founder of ity where passengers don goggles and take a 1,500 beginning of modern fracking. history of energy,” said Ed Morse, sidize coal and nuclear plants is an TimeLooper Inc., whose company got a high- 50-minute bus tour of Luxembourg as it was “It was a good well, cost global head of commodity research indirect result of fracking. profile jump-start at the TechCrunch Disrupt in 1867, when France and Prussia nearly went Oil Natural gas 1,250 $600,000 or $700,000,” Mr. Steins- at Citigroup. “It was revolutionary The impact on oil markets startup competition in 2016. “It was practi- to war over the small country’s political sta- berger said, walking over the pad for the U.S. economy and it was might be, if anything, more signif- cally impossible to put these people in these tus. As passengers ride through Luxembourg 1,000 to the chain-link fence that sur- revolutionary geopolitically.” icant. U.S. oil production had moments. We wanted to know what was it City, they can see it as it used to be while a rounds the well. A sign identifies Mr. Steinsberger’s modest ex- fallen persistently for years, drop- like to stand on top of the Great Wall and narrator describes the scene. The service is 750 it as the S. H. Griffin Estate 4. periment demonstrated that the ping below five million barrels a keep the Mongols from taking Beijing.” slated to launch later this year. Today, most wells drilled in the oil and gas industry had the tools day. And then: fracking. This year, While the technology is deployed in differ- “Our wish is to really show people the U.S. use some variation of Mr. to fracture the rocks where fossil it hit a new all-time high, reaching 500 ent ways, the basic process works like this: past,” Mr. Fridhi says. “That’s the next stage Steinsberger’s fracking technique. fuels were slowly baked over the 10.9 million barrels a day in June. TimeLooper and other virtual-reality tourism of tourism. It’s like time travel.” It has unleashed an unimaginable millennia. A huge trove of natu- It is now the world’s largest pro- 250 companies such as Zreality GmbH and Owl- —Caitlin Ostroff wealth of natural gas, gas liquids ral gas was accessible at an eco- ducer of crude and other valuable RUTH GWILY and crude oil, turning the U.S. nomical cost. petroleum liquids, ahead of Russia 0 from an energy pauper into a It was such a novel idea that it and Saudi Arabia. 1998 2000 ’10 2000 ’10 muscular exporter. It also started spread slowly at first, as doubters The surge has weakened the Or- Sources: Joint Organisations Data Initiative (oil production); Baker Hughes an often acrimonious environmen- couldn’t believe that anyone could ganization of the Petroleum Ex- Oficial Sponsor of The Wall Street Journal’s The Future of Everything (rig count); U.S. Energy Information Administration (natural gas production) THE WALL STREET JOURNAL. tal debate about the potential im- successfully tap the source rocks. porting Countries. Facing a grow- For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. FINANCE

eese and Kyle Rademacher weren’t sure how they would af- ford a down payment to R buy a home until their real-estate agent men- tioned an offbeat idea: crowdfund the money from friends and family. Ms. Rademacher, a 28-year-old construction technician, set up an online profile with a program called HomeFundMe to solicit do- nations. Her parents and a few others responded, and in March the Rademachers closed on a $320,000 home in Cheyenne, Wyo. HomeFundMe, a service launched by lender CMG Financial last year, is among a growing suite of services that help borrowers cobble together the funds to buy homes. These companies—startups and established players in the housing market alike—say they’re offering options for borrowers who have good credit and income but are struggling to save.

Helping borrowers could exacerbate the housing market’s main problem: a dearth of new homes.

Rising consumer debt and sky- high prices have made it tough for first-time buyers to save for a home. Nearly 40% of renters ages 25 to 34 said they were saving nothing each month for a down payment, according to a survey last year by rental-listing company Apartment List. One startup will kick in up to $50,000 for a down payment if the home buyer agrees to rent out a room on Airbnb and share the income. A few companies of- fer “shared equity” contracts, LIZ OSBAN FOR THE WALL STREET JOURNAL through which buyers get money Reese Rademacher and her husband crowdfunded the down payment for their home in Cheyenne, Wyo. Now their friends want to give it a try. for their down payments in ex- change for pledging part of the home’s future value to investors like pension funds or family offices. Would-Be Home And some banks, including Bank of America Corp. and Morgan Stanley, have programs through Buyers Are Told: No Savings? which young adults can get a mortgage with nothing down if their parents pledge investment assets as collateral. Yet some worry that helping borrowers get down payments could actually exacerbate the No Problem. housing market’s main problem: a dearth of new homes. Economists caution that ac- tions such as loosening credit Lenders are coming up with novel ways for people to cobble together down payments standards or supplying borrowers with more down payment money BY CHRISTINA REXRODE AND LAURA KUSISTO worsen the problem by creating more demand in a supply-con- strained market, leading to a fur- get mortgages with down pay- “If you don’t have the down pany’s CEO and co-founder. cer Paul Akinmade. Friends and ther overheating of home prices. ments as low as 3.5% through the payment, it’s a great way to start,” These novel arrangements can family can also make their gifts And if home prices later fall, bor- Federal Housing Administration, said Mrs. de los Reyes, a 29-year- be tricky to pull off. Fannie and conditional, meaning borrowers rowers with little of their own and Fannie and Freddie Mac back old flight attendant. She and Mr. Freddie buy loans made through won’t get the money unless they money invested are more likely to loans with down payments as de los Reyes had never been some of these programs but can’t actually purchase the home. simply walk away, they say. low as 3%. But these loans tend Airbnb hosts before, so they were always package and sell them in Ms. Rademacher said she felt Jonathan Lawless, vice presi- to have high monthly costs: apprehensive. But as for their standard mortgage-backed securi- uncomfortable at first asking for dent for product development and They usually require mortgage guests, Mrs. de los Reyes said, “we ties. Only a handful of lenders are help through HomeFundMe. But affordable housing at mortgage-fi- insurance, and the bulk of the barely see them.” willing to make mortgages with the Rademachers’ budget was tight nance giant Fannie Mae, said the first payments can go to interest, Yifan Zhang got the idea for such creative foundations. Most of after paying for their wedding, and agency is currently focusing not not principal. Loftium after renting out a spare the programs are still in the begin- a credit union had already denied just on making credit available but Erik and Rafaela de los Reyes room in her Seattle home. One of ning stages, and Loftium is avail- their mortgage application because also on increasing housing supply. considered applying for an FHA her goals, she said, is to even the able only in the Seattle area. they didn’t have enough in savings. For example, Fannie is looking at loan to buy a home in Seattle but playing field between millennials About 400 borrowers have “Whenever I emailed people ways to make it easier to get loans were put off by the mortgage in- whose parents can help them buy used HomeFundMe to help buy the link, I would explain, ‘This to fix up dilapidated homes and surance and other costs. They in- their first home and those who are homes since the program isn’t fake, this is real,’ ” Ms. make it simpler to finance the pur- stead got $28,000 from Loftium, trying to save on their own. launched in October. On average, Rademacher said. Now, some of chase of mobile homes, among the startup that offers funding in “If you’re willing to kind of sac- they raise about $2,500, though her friends are interested in fol- other things. exchange for a cut of their Airbnb rifice and generate this extra in- CMG also can kick in matching lowing suit. Borrowers for years have been income. The couple have pledged come, then you should be able to grants, and most borrowers have “It just worked out so well,” Ms. able to take out mortgages with to rent out their mother-in-law have this leg up in homeowner- some of their own money saved Rademacher said, “that people small down payments. They can suite for three years. ship,” said Ms. Zhang, the com- as well, said chief marketing offi- were like, ‘No way, I want that!’”

bundle several types of assets into one portfolio. Both approaches When blunt the jagged fluctuations in- vestors would suffer in less-diver- sified funds that focus on nar- rower market segments. Investors More financial advisers are seeking to keep their clients’ port- folios aligned with target alloca- tions to stocks, bonds and other Behave assets, says Mr. Kinniry. That means they automatically sell some of whatever has recently risen in ContinuedfrompageB1 price, using the proceeds to buy ior doesn’t describe what the some of whatever has dropped. fund’s investors did, however. Only That’s a mechanical counterweight a fraction of them were present at to the natural human tendency to the beginning to double their buy high and sell low. money, while all were around in When Mr. Kinnel is asked year two to lose half their money. whether these changes mean that As a group, they gained $100 mil- investors and their advisers won’t lion in year one—but lost $600 bail out at the bottom during the million in year two. next crash, he sighs. Adjusted for the timing and “No,” he says after a long pause. amount of inflows, the typical in- “Advisers and individual investors vestor lost an average of about 43% still have an inclination to chase annually—in a fund that officially performance, to fight the last war, reported a 0% return over the same to panic a bit. People are still peo- period. The investment broke even; ple. They’re still going to be in- its investors took a beating because clined to make the same mistakes.” of their own behavior. And so they are. Spooked by re- In real life, the gap between in- cent poor performance, investors

vestors and their investments is ALEX NABAUM are pulling out of international and rarely that extreme. Stocks, over makes you do worse: It feels When you chase outperformance, to screw up,” says Russel Kinnel, emerging-market stock funds, even the long run, have outperformed great to buy more when an in- you catch underperformance. author of the Morningstar report. though those markets are signifi- their shareholders by an average vestment has been going up, and Why, then, does the new Morn- With so few stabs of panic in re- cantly cheaper than the U.S. of roughly 1.3 percentage points it hurts to buy more when an as- ingstar report find that investors’ cent years, staying invested has Through June 26, investors have annually. Mutual funds beat their set has gone down. So you tend behavior seems to be improving? felt unusually easy. yanked $12.4 billion out of global investors by about 1.6 points annu- to raise your exposure to assets The stock market itself, which Fran Kinniry, an investment equity funds, according to TrimTabs ally. Even the supposedly sophisti- that have gotten more expensive has risen for most of the past de- strategist at Vanguard Group, says Investment Research, putting June cated buyers of hedge funds under- (with lower future returns) and cade with remarkable smoothness, investors have increasingly favored on track for the biggest monthly perform them by at least 3 to cut it—or at least not to buy deserves much of the credit. index funds, which hold big bas- outflow since October 2008. percentage points annually. more—when they are cheaper “Extreme volatility triggers kets of stocks or bonds, as well as The more investors change, the On average, trying to do better (with higher future returns). emotional responses that lead you so-called target-date funds that more they stay the same. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Saturday/Sunday, June 30 - July 1, 2018 ******* THE WALL STREET JOURNAL. BANKING & FINANCE NEWS London Bankers Keep Crown Despite Brexit BY MAX COLCHESTER gotiations between the U.K. zen out of the EU. That could AND PATRICIA KOWSMANN and Brussels, leave bankers in create problems ranging from London unable to sell products the invalidation of some con- Brexit was meant to be a seamlessly across the trading tracts to increasing the cost of crippling blow to London’s bloc’s 28 nations. But a transi- clearing trades. “Financial sta- position as the financial capi- tion agreement should keep bility should not be put at tal of Europe. With eight the U.K.’s access to the EU un- risk because financial institu- months to go before the U.K. til the end of 2020. So after tions are trying to avoid is set to leave the European making detailed fallback plans, costs,” the EBA said. Union, the British capital’s banks are sitting still. European regulators are role remains mostly undimin- “The number of bank staff also tightening the screws. ished, and no single other Eu- moves out of London so far The EU is considering forc- ropean city is close to claim- has been much lower than ex- ing big banks based in the ing its crown. pected by many,” said Oliver U.K. to set up subsidiaries in One key measure: What Wagner, managing director of the bloc. In the long term that was expected to be a flood of the Association of Foreign might encourage international bankers out of London to con- Banks in Germany, where lenders to move headquarters tinental Europe has turned Frankfurt was supposed to be out of London and into the EU out to be a trickle. And the a major beneficiary of Brexit. for cost reasons. London may ones that are leaving are di- A forecast of the number of become the outpost of a vided widely among rival cit- British finance jobs set to dis- bank’s European hub.

ies such as Frankfurt, Paris, appear by March 2019, when CHRIS RATCLIFFE/BLOOMBERG NEWS Investment banks are hop- Dublin, Milan and Amster- the U.K. leaves the EU, was Britain’s looming exit from the European Union has had a negligible impact on London’s financial hub. ing that the European Central dam. recently reduced to 5,000 Bank allows them to continue The result isn’t the imme- from 10,000 by the Bank of ica Corp. on Tuesday kicked to flip trades out of their EU diate challenge to London England. That is about 1% of off its Brexit reshuffle an- Brexit Sliver hubs back into London, which that was anticipated. the people who work in finan- nouncing that three senior The number of U.K. based banking jobs going to the EU is currently small. would require less transfer of The amount of interna- cial services in London. bankers would move to Paris capital from the city to the tional lending channeled Global financial centers next year, where the bank is Employees remaining in U.K.* Jobs going to Europe continent. But ECB officials through U.K.-based banks in- such as London, New York renovating an art deco post JP Morgan have been adamant they want creased between the June and Hong Kong, maintain office to house its staff. Citigroup subsidiaries in the EU that 2016 Brexit vote and the end their pre-eminence based on JP Morgan Chase & Co. had have enough capital and man- Goldman of 2017, according to the Bank overwhelming concentrations warned that a quarter of the agement in place to withstand for International Settlements. of capital and skilled finance 16,000 people it employs Brit- BofA shocks independently. British exports of financial workers. Brexit presents an ain could see their jobs go be- Morgan Stanley Banks also hope to out- services also continued to opportunity for other Euro- cause of Brexit. Currently it 0 2 4 6 8 10 12 14 16 source back-office work to rise, according to Coriolis pean capitals to pry some of plans to move between 300 Thousands their British subsidiaries. This Technologies, which tracks that expertise away. So far, and 400 jobs. *After plans' completion is much cheaper than creating this data. the impact on London has Given the uncertainty, Source: the companies THE WALL STREET JOURNAL. a big new stand-alone banking “I would have thought that only been negligible. banks aim to move as few operation in the EU. ECB offi- there would have been a This summer around a jobs as possible and hope support staff locally in Eu- remains unknown. And for cials have said they are worse outcome by now,” Gold- dozen of Goldman Sachs’ they can leave it at that. rope. The thinking is that a some, the banks are moving against the idea but bankers man Sachs Group Inc. Chief French fixed-income sales That means relocating a lot of operations staff can, for too slowly. The European are betting on concessions in Executive Lloyd Blankfein said team—who are based in Lon- handful of executives, trying the moment, remain in the Banking Authority has warned the short term. earlier this year. don—will relocate to Paris to to send London-based Euro- U.K. that banks aren’t ready if the “Much of this is still open Exiting the EU could, de- deal with clients from the pean salespeople back to Much about the U.K.’s fu- Brexit talks collapsed and the for question,” said John Liver, pending on the outcome of ne- French capital. Bank of Amer- home countries and hiring ture relationship with the EU U.K. found itself suddenly fro- a partner at Ernst & Young.

so-called supersectors. The re- the Stoxx Europe 50, according maining 10 stocks are filled Parting Ways to Deutsche Börse AG, which Index Looks from the stocks ranked from 41 owns Stoxx. Rothschilds End Since the Euro Stoxx 50's last to 60 by floating market capi- reshuffle in September, Deutsche The impact of being Likely to Ax talization, prioritizing compa- Bank has underperformed this dropped from an index can nies that are already included benchmark, pushing it to a vary over time, according to Family-Name Feud in the index. potential exit from the index. some investment experts. At the beginning of June, “What it does when you exit BY NICK KOSTOV and Monaco will use the Deutsche Deutsche Bank was ranked Deutsche Bank Euro Stoxx 50 these indexes is it means Joe name Martin Mau- ContinuedfrompageB1 62nd in that long list by Stoxx. 10% Average fund manager no lon- PARIS—Two branches of rel following a merger last particular by passive investors Holding that position would 0 ger has to look at you,” said the have year between Rothschild & who would be expected to au- result in the bank being re- Dan Davies, a senior research buried the hatchet and ended Co.’s private bank in France tomatically sell the shares if it moved from the index. –10 adviser at Frontline Analysts a dispute over the rights to and the Banque Martin Mau- fell out the Euro Stoxx 50, the As of Friday, Deutsche Bank’s and a former banking analyst. the family name. rel, a private bank based in person said. free-floating market cap left it –20 “Having an investor base In a joint statement Friday, Marseille. The most important indexes ranked 63rd of the companies –30 made up of sector specialists Edmond de Rothschild Group, Mayer for Deutsche Bank are the DAX on the Euro Stoxx 50 long list, might not be a bad thing, given a Switzerland-based private founded his bank in Frankfurt and MSCI, but losing the Euro according to FactSet data. –40 how often the bank runs into bank that manages money on in the 18th century, and his Stoxx 50 would be unhelpful, Its market cap is around €2.6 regulatory issues,” he added. behalf of wealthy clients, and five sons established banking –50 the person said. billion below the stock in 60th The bank’s new chief execu- Franco-British investment businesses in the other big Eu- Index provider Stoxx Ltd. place, the last company with a 2017 ’18 tive, Christian Sewing, and his bank Rothschild & Co. said ropean financial centers of the rebalances the Euro Stoxx 50 chance of inclusion in the index Source: SIX team are asking investors for they agreed to end litigation time: London, Paris, Naples every September to remove as it now stands. THE WALL STREET JOURNAL. patience as the bank digs in to and would “work together to and Vienna. companies whose market capi- When companies are cut costs and stabilize profits, protect the family name in the talization has shrunk below a dropped by indexes, the funds was removed from a less something it has repeatedly banking sector.” certain size and to add those that track them must begin to closely followed index, the promised to do, only to miss The dispute centered on that have grown in the inter- sell those stocks and buy Stoxx Europe 50, which also targets. whether the investment bank Under the agreement, vening year. shares in the recently added includes stocks from non-euro- The lender is slashing jobs was guilty of using the family none of them can use The index includes the 40 companies. zone nations such as Switzer- and has said it will cut equity name for branding, without largest stocks drawn from 12 In 2016, Deutsche Bank land and the U.K. sales and trading head count adding a first name, initials or the Rothschild name A greater number of funds by around 25%. a suffix to make it clear that it by itself in the future. with more assets under man- Mr. Sewing, a longtime bank didn’t have sole claim to the ADVERTISEMENT agement reference the Euro insider, became CEO in April prestigious name. Stoxx 50, making it more im- after the bank ousted his pre- The Edmond de Rothschild portant for companies to be decessor following three con- Group, owned by a branch of In 2012, David de Roth- The Marketplace included. Just €2.61 billion in secutive years of after-tax full- the family largely based in schild consolidated the French To advertise: 800-366-3975 or WSJ.com/classifieds exchange-traded funds track year losses. Switzerland, claimed that us- and U.K. investment-banking ing the name by itself violated operations. A holding com- BUSINESS OPPORTUNITIES centuries of oral tradition pany adopted the name Roth- ADVERTISEMENT within the family. It filed a schild & Co. Group three years          suit against Rothschild & Co. later. Showroom in Paris in 2015, arguing that Ariane de Rothschild, who     To advertise: 800-366-3975 or WSJ.com/classifieds it had broken competition law. took the helm of Edmond de On Friday, the parties said Rothschild in 2015, filed a law-               they had agreed that, “neither suit against Rothschild & Co.                 FERRARI BMW group may use the name Roth- alleging unfair competition                schild on its own in any form and brand infringements.                 whatsoever in the future.” In April this year, Alexandre                !  "     Under terms of the agree- de Rothschild replaced his fa- "       #       "    ment, however, Rothschild & ther, David, atop Rothschild &    $%&%'((( ! )   * $%+((((( Co. will continue to use the Co., passing it to the seventh    ,   -.     same brand. Its private-bank- generation of the family. Fri-               ing and asset-management day’s resolution is among his       activities in France, Belgium first notable decisions.

      

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THE WALL STREET JOURNAL. ****** Saturday/Sunday, June 30 - July 1, 2018 | B13 MARKETS NEWS

Recovery How many U.S. dollars one euro buys Xiaomi Prices IPO at Lower Range 1.170 BY JULIE STEINBERG Ltd. committed earlier to buy AND STELLA YIFAN XIE some shares in the IPO. Corner- stone investors in Hong Kong are 1.165 HONG KONG—Chinese smart- included to help strengthen de- phone maker Xiaomi Corp. mand for offerings, among other priced a $4.7 billion initial public purposes. offering at the bottom of its tar- Smartphones are Xiaomi’s 1.160 get range, people familiar with largest source of revenue, the matter said, pulling off one though the company also sells of 2018’s largest IPOs despite in- internet-connected devices like vestor skepticism about its rice cookers and fitness bands. It 1.155 growth prospects. also makes money from internet 6 p.m. midnight noon On Thursday, the eight-year- offerings like video streaming Thur. Fri. old company priced its offering and financial services. The com- Source: Tullett Prebon at 17 Hong Kong dollars pany is aiming to generate more THE WALL STREET JOURNAL. (US$2.17) per share, the people profits from its connected de- said, after last week setting a vices and software. target range of HK$17 to HK$22. In May, Xiaomi said its 2017 Euro Gets Xiaomi shares will begin trading revenue grew 68% to 114.6 billion in Hong Kong on July 9. yuan. It reported a net loss of Beijing-based Xiaomi hoped about 43.9 billion yuan, though Lift From to raise up to $6.1 billion from its excluding one-time charges its IPO before trading started. The profit was about 5.4 billion yuan. pricing gives the company a Dozens of Chinese technology Deal on market valuation of around $54 KIN CHEUNG/ASSOCIATED PRESS unicorns—private companies billion. That is a sharp come- Smartphones are the company’s largest revenue source but it also sells rice cookers and fitness bands. with valuations in excess of $1 down from expectations earlier billion—that are intent on going this year of a $100 billion valua- stocks, which have weakened Instead, some said they viewed Cos. with about $500 million and public in Hong Kong or New York Migration tion and is also less than the $65 due to concerns about China’s Xiaomi as a hardware company, billionaire George Soros, a per- are monitoring Xiaomi’s IPO billion to $85 billion that several escalating trade conflict with the which generally command lower son familiar with the situation closely, people familiar with the BY SAUMYA VAISHAMPAYAN brokerage analysts had esti- U.S. In addition, when it came to multiples. said. Goldman Sachs Group Inc., matter said. Some of those com- mated Xiaomi to be worth. Xiaomi’s business prospects, Investors in the IPO include Morgan Stanley and CLSA led panies could reconsider the tim- The euro surged against the The company encountered some analysts and potential in- China-focused investment firm the stock sale. ing of their listings, depending dollar after European Union difficulties on the road to the vestors never bought into the Hillhouse Capital Group, which U.S. chip giant Qualcomm Inc. on how Xiaomi shares trade in leaders reached a deal on mi- IPO. Xiaomi’s offering kicked off company’s narrative that it is put in about $600 million, mu- and state-owned telecommuni- the coming weeks, the people gration, an issue that has di- at a tumultuous time for Chinese primarily an internet company. tual-fund giant Capital Group cations company China Mobile added. vided the bloc since the Syrian refugee crisis CURRENCIES accelerated three years ago. Stock Indexes Advance as Energy Shares Rise The euro rose 1% to $1.1683 in late Friday trading in New BY MICHAEL WURSTHORN York, though it is down 2.7% AND RIVA GOLD against the dollar this year. While the euro also advanced U.S. stocks edged higher against the Japanese yen and Friday, as investors took ad- the British pound in Asian vantage of a momentary pause trading after EU leaders in trade tensions to boost ma- reached a deal to curb migra- jor indexes’ gains for the sec- tion into the region, it was ond quarter. down against both currencies FRIDAY’S The Dow by late New York trading. MARKETS Jones Industrial “The details are fairly thin Average rose as at the moment…but it seems much as 293 that most parties are content points before paring its gain in with the deal and it’s averted the final hour of trading. a potential significant conflict Shares of energy companies rose alongside a jump in oil prices, while Nike pulled the Investors had S&P 500 and Dow higher. The athletic-apparel retailer re- soured on the euro ported its first sales gain in amid signs of four quarters, sending shares to their highest close. slowing growth. The developments offered a more stable footing for stocks after the Trump administra- in the EU,” said Mitul Kotecha, tion backed away from impos- senior emerging-markets ing new restrictions on Chi- strategist at TD Securities in nese investments in the U.S., Singapore. “That’s why you’ve helping to ease fears of an all- seen such a big reaction.” out trade war between two of Before the meeting, German the world’s biggest economies. Chancellor Angela Merkel had All three major stock in- warned that a failure to over- dexes notched a second con-

come divisions would threaten secutive session of gains Fri- LUKE SHARRETT/BLOOMBERG NEWS the future of the EU. day after several days when Petroleum-industry vessels. The energy sector led the S&P 500 higher as oil prices got a boost from continued risks to supplies. Investors have soured on the S&P 500 and Dow the euro in recent months, af- switched between gains and price gains, made bank and 6.62, or 0.1%, to 7510.30. 500 higher, as oil prices got a gauge, the price index for per- ter signs of slowing growth losses. Equity funds suffered energy stocks attractive buys. The gains helped pare boost from continued risks to sonal-consumption expendi- dented expectations for how their second-largest ever out- Forinvestors,thereiscon- weekly losses for the indexes supplies in Libya, Iran and tures, rose 0.2% in May and quickly the European Central flow in the week through tinued uncertainty around and pushed each further into North America. Crude for Au- 2.3% from a year earlier. Bank would normalize policy. Wednesday, according to Bank trade and a looming July 6 positive territory for the sec- gust delivery rose 70 cents, or “The market feels fairly The Federal Reserve, mean- of America Merrill Lynch. deadline for tariffs, Mr. ond quarter. The Dow and S&P 1%, to $74.15 a barrel. sanguine about [U.S.] infla- while, has indicated that it “It’s a nice snap back after Kravetz said. “Trade weighs 500 rose 0.7% and 2.9%, re- Nike jumped $7.98, or 11%, tion, but you have the roots of would raise interest rates two a rough losing streak,” said on our view for the rest of the spectively, to bounce back to $79.68 after the company inflationary pressure that more times this year, driven by Jeff Kravetz, regional invest- year,” he said. from losses in the first quar- reported late Thursday that it could build, between tariffs, a signs of a strong U.S. economy. ment director at the Private The Dow added 55.36 ter. The tech-heavy Nasdaq grew sales in its core North full labor market, and closing Separately, the WSJ Dollar Client Reserve at U.S. Bank points, or 0.2%, to 24271.41. added 6.3%, its strongest American market after three borders limiting the supply of Index, which measures the U.S. Wealth Management. He The S&P 500 rose 2.06, or less three-month period of trading straight quarters of declines. labor,” said Randy Brown, currency against 16 others, fell added that mostly upbeat than 0.1%, to 2718.37, while the since the first quarter of 2017. Meanwhile, the Federal Re- chief investment officer at Sun 0.5% on Friday. bank stress tests, plus the oil- Nasdaq Composite gained Energy stocks led the S&P serve’s preferred inflation Life Financial Inc. Yuan Slid 3.4% Against Dollar in June Treasurys Mostly Flat BY SAUMYA VAISHAMPAYAN spread after trade tensions Despite Inflation Data Chinese Swings heated up and investors pulled BY DANIEL KRUGER The Chinese yuan suffered The yuan’s monthly gain or loss against the U.S. dollar cash out of riskier assets and they met earlier in June to as- one of its worst months on re- markets. sess the path of monetary pol- 4% cord, tumbling 3.4% against The Federal Reserve raised U.S. government bond prices icy. At that meeting, the policy the dollar in June. 3 short-term rates on June 13 edged higher Friday after data makers raised rates for a sec- An escalation in global and signaled it could acceler- showed inflation may be start- ond time this year. trade tensions and investors’ 2 ate the pace of interest-rate ing to gather momentum. Federal-funds futures, which growing conviction that U.S. increases in coming months, The yield on the benchmark investors use to bet on the di- interest rates will continue to 1 adding to the pain in emerging 10-year Treasury note inched rection of interest-rate policy, rise combined to wallop many markets. Higher rates make down to 2.847% from 2.849% late Friday showed a 46% emerging-market currencies 0 the U.S. more appealing for Thursday. The 10-year yield in- probability that central-bank over the course of the month. yield-seeking investors, who creased for a officials will raise rates at least CREDIT The South Korean won and –1 had flocked to emerging mar- fourth consecu- two more times this year, up New Taiwan dollar, which are kets when global interest rates MARKETS tive quarter, from 44% on Thursday, accord- also sensitive to disruptions to –2 were low. from 2.741% on ing to CME Group data. global trade, lost about 3% and President Donald Trump March 29. “The markets may be un- 1.4% against the dollar, respec- –3 has backed away from plans The two-year Treasury yield derpricing the Fed’s willing- tively, by the end of Asian for tough new restrictions on rose to 2.528% from 2.522% on ness to push ahead with fur- trading Friday. It was the –4 Chinese investments in the Thursday. It was 2.270% at the ther rate hikes,” said Bill Merz, won’s biggest monthly decline 2015 ’16 ’17 ’18 U.S. Still, both the U.S. and end of March. Yields rise as a director of fixed income at since November 2016. Sources: Thomson Reuters (through May); Wind Info (June figure) China have proposed tariffs on bond prices fall. U.S. Bank Wealth Management. The yuan’s swoon acceler- THE WALL STREET JOURNAL. billions of dollars of each Treasury yields climbed The market’s tepid response ated after a volley of tariff other’s goods that are slated briefly after the Commerce De- to the inflation data is “a yel- threats between the U.S. and struggling to arrest a slide in this EM stress,” said Sameer to go into effect on July 6. partment said the personal- low flag,” suggesting that in- China in the middle of the its currency and turned to the Goel, head of Asia macro strat- Ultimately, whether the consumption expenditures vestors may be looking ahead month and tumbled to a more International Monetary Fund egy at Deutsche Bank in Singa- trade spats between the U.S. price index, a broad measure to slowing growth in what has than six-month low this past for financing. The Argentine pore. The idea that the yuan and some of its key trading that serves as the Federal Re- been an almost nine-years-long week. The currency was little peso slumped 11% against the could depreciate further and partners will actually reduce serve’s preferred inflation economic expansion, Mr. Merz changed at the end of Asian greenback in June. amplify the volatility for global trade remains an open yardstick, rose 2.3% in May said. trading Friday, but its monthly The South African rand emerging markets has added question, said Stephen How- from a year earlier, its biggest The gap between yields on decline was the worst since at dropped more than 7%, its to investors’ concerns, he ard, chief executive of Howard annual gain since March 2012. Treasury notes maturing in least December 1998, based on most in a month since May added. Trading in Hong Kong. The year-over-year increase in two and 10 years, known as the data from Thomson Reuters. 2016, while Brazil’s real lost Some emerging markets “We are cautious. Where we April was 2%. yield curve, flattened to 0.319 One dollar bought 6.6246 yuan nearly 4%. came under pressure in April are invested, we’re trying to The acceleration in inflation percentage point, the lowest as of Friday afternoon in What was different in the because of a rebound in the be long volatility” he said, ex- could help Fed officials make since August 2007. China. Late in New York, one recent bout of global emerg- dollar. While the pain was ini- plaining that his firm holds the case that they should raise Investors look to the yield dollar bought 6.6225 yuan. ing-market turmoil was the tially concentrated in coun- options on stock indexes to interest rates at their Septem- curve as an indicator of the di- Declines were even more Chinese currency’s weakness, tries with large external fi- protect its portfolio from ber meeting, analysts said. Of- rection of the economy. pronounced in Argentina, analysts said. “China has now nancing needs, such as Turkey losses if there are large mar- ficials penciled in two more Steeper curves suggest faster where authorities have been become front and center of and Argentina, it started to ket swings. rate increases this year when future economic growth. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B14 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. EXCHANGE

ON HEARDTHESTREET

FINANCIAL ANALYSIS & COMMENTARY

where a long-term shareholder would make money in a fund like Wall Street’s the financial-bear one—a year of bad performance of the index amid low volatility. That hasn’t happened yet. Sucker’s Bets The distinction between an in- vestment and a gamble lies in the odds of success. On average gam- blers lose over time. So why does Investors keep putting money into funds that the Securities and Exchange keep losing. Is it investing or gambling? Commission allow anyone with a brokerage account to put their nest egg into something BY SPENCER JAKAB sessions in January 2009 but that typically loses money? gave up those gains in the A spokeswoman declined to People who compare Wall next six. The following month comment. Defenders of these Street to a casino are usually just it doubled again in seven days funds point out that, unlike bitter about a bad experience. but lost 60% in the next four games of chance, some people When it comes to some wildly and then another 50% in the believe that they have a popular products, though, the de- following seven sessions—quite unique insight into which way scription fits. a ride. the market might move tomor- Owning stocks is mostly a win- “One of the open secrets of row. Others use inverse funds ner’s game. Since 1928, the stock the financial-services world is to hedge their shareholdings. market has risen on 54% of days, that we’re also in the entertain- Unlike complicated stock options, 58% of months and 73% of years. ment and gaming industry,” says they “democratize leverage,” in Over that time a $10,000 invest- James Angel, a finance professor Ms. Jablonski’s words. ment in U.S. stocks in 1928 would at . Mr. Angel sees the funds mostly have grown to $40 million. Take The savings-destroying combi- as gambles, yet he doesn’t object the same money into a casino and nation of volatility and daily com- to their existence since authorities bet on a roulette wheel coming up pounding is what makes these lev- also allow individuals to make red and your odds of winning are eraged inverse funds losing even more dangerous bets such as 47%. Stick around for a few hours propositions. A $10,000 invest- stock options, penny stocks, or for and your bankroll will almost cer- ment in the Daily Financial Bear that matter, to play the lottery. tainly be gone. 3X fund made in 2008 is now Some speculators make wild worth about $2. Such funds rarely Triple Whammy Expected performance of a 3x inverse gains. Keeping them is another fade away, though, because inves- Markets tend to be choppy when fund in a year matter. Take the experience of tors who think they can beat the “TheSkepticizer,” a commenter on The distinction retreating, harming the returns of funds 100% 10% annual volatility odds keep pouring in fresh capital. social-investing message board that seek to profit from falling prices 25% 50% between an investment In fact, far more money has StockTwits. He claims he profited and a gamble lies in poured into leveraged inverse Annual return of Direxion Daily on June 25 trading SQQQ, which funds than their current roughly 50 In a year when an index has produces three times the inverse the odds of success. Financial Bear 3X Shares Fund 10% volatility and drops 10%, $15 billion market value, accord- a 3x inverse fund should of the Nasdaq 100. The index ing to figures from ETFGI, while 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 return 29.2%. plunged that day on trade fears holding periods are typically days 0 and the ETF gained 6.4%. So what do you call funds that or hours. –20 “Made some money here today, trade on the stock market but On June 25, a volatile day for but sold on the dip. Hmmm, prob- have odds resembling a casino stocks, 10 similar funds had –40 PERFORMANCE –50 ably shouldn’t have…maybe can game, occasional jackpots in- greater share turnover than blue buy back in tomorrow.” –60 cluded? A popular one, the Direx- chips Walt Disney, Amazon.com He claims to have done so the –100 ion Daily Financial Bear 3X Shares or Delta Airlines. –80 next morning. An hour later the fund, has lost money on 54% of Those in the industry point out -20% -10 0 10 20 fund was already down 2% and he days and every calendar year that not all leveraged products are –100% INDEX RETURN was eyeing a 3x long semiconduc- since its launch in late 2008. The duds. Some, such as those that tor ETF to make up for a 10% drop Source: Direxion fund produces three times the in- add leverage to long positions, THE WALL STREET JOURNAL. that day in a triple inverse oil verse of an index of financial com- have performed marvelously dur- fund he owned. panies, so it posted some spectac- ing the nine-year bull market. Syl- fers 76 inverse or leveraged ETFs, she says. “We’re very clear with TheSkepticizer might not have ular gains during the financial via Jablonski, head of capital mar- points out that typical holding pe- clients that these are products done much better in Las Vegas, crisis. They faded quickly. For ex- kets and institutional strategy at riods are short for such products. that aren’t meant to be held.” but at least there would have

ample, the fund doubled in four asset manager Direxion, which of- “We consider it a trading tool,” There is pretty much one scenario been free drinks. JOHN KUCZALA The Hard Lessons of Inflation Is Back, Xiaomi’s Deflated IPO Now: How to Cool It

‘China’ and ‘tech’ are no longer bonanza buzzwords The case is building for the Fed to start leaning against the economy BY JACKY WONG Dial Up Life coaches always suggest Global smartphone shipments, BY JUSTIN LAHART aiming high. Sometimes that quarter ended March, 2018 merely creates more room to fall. The question of whether infla- Samsung Such has been the case with Chi- tion will get to the Federal Re- nese smartphone maker Xiaomi 78.2 million OVERHEARD serve’s 2% target has been an- and its hapless initial public offer- Apple swered: yes. Now the question is ing in Hong Kong. what the Fed is going to do about An IPO valuing Xiaomi at $54 52.2 It turns out that trading it. billion doesn’t sound too shabby, Huawei ahead of changes to the Dow The Commerce Department on but perspective is vital. A few 39.3 Jones Industrial Average isn’t Friday reported that its measure months back the talk was of a as easy as it looks. of consumer prices rose 0.2% in $100 billion flotation that would Xiaomi Shares of Walgreens Boots May from April, putting it 2.3% herald a slew of blockbuster Chi- 28 Alliance rose more than 5% on above its year-earlier level. More nese tech IPOs. Instead, Xiaomi June 20 after news that the important, core prices, which the has ended up pricing its offer at OPPO pharmacy chain would replace Fed follows closely, were up 2% on the bottom end of the indicative 23.9 blue chip General Electric in the the year. That marked the first range, raising $4.7 billion—well index. time core inflation, which excludes below the $10 billion it initially Source: International Data Corporation Those who bought the stock food and energy to better capture JACQUELYN MARTIN/AP planned. THE WALL STREET JOURNAL. that day to celebrate its inclu- inflation’s trend, reached 2% since Fed Chairman Jerome Powell So what, as those life coaches sion in the venerable bench- April 2012. might ask, have we all learned? Even investor darling Tencent is mark haven’t done so well. So, after years of frustration Finally First, a $100 billion price tag— down 20% this year. Walgreens shares are down over doggedly low inflation, mis- Change in consumer prices, valuing Xiaomi at more than 100 What’s most clear is that the 11.5% since then through Fri- sion accomplished for the Fed. excluding food and energy times trailing earnings—was al- words ”China” and “tech” no lon- day. News that Amazon With that goal met, the state- ways way too high, given the com- ger guarantee a bonanza for com- bought online pharmacy Pill- ment earlier in June by Fed Chair- 2.4% pany’s business still consists panies and their advisers. Next in Pack sparked a sharp selloff in man Jerome Powell takes on more 2.2 mainly of selling low-margin hand- the IPO pipeline is Meituan Dian- Walgreens as well as in other significance. At the news confer- sets into a fickle market. Xiaomi’s ping, which runs a hugely popular pharmacy stocks. ence following the Fed’s rate in- 2.0 attempts to spin itself as an inter- food delivery app—it hopes inves- GE, for its part, has fared crease, Mr. Powell said the Fed net stock that could make money tors will value it at $60 billion. much better. The company’s would move to cool things off “if 1.8 from advertising and other ser- Still looming is Ant Financial, the managers announced earlier inflation were to persistently run 1.6 vices largely failed. Alibaba affiliate which dominates this week that they would above” 2%, effectively quashing A bungled effort to raise at payments in China and which is break it up, which pleased in- speculation that the bank would 1.4 least half of the IPO proceeds in currently reckoned to be worth vestors. The stock is up 5.1% allow the economy to run a bit 1.2 mainland China, by becoming the $150 billion. since the announcement. hot. first company to issue depositary Both those companies are very Membership doesn’t always The risk is building that infla- 1.0 receipts there, also harmed Xi- different beasts from Xiaomi. But have its privileges. tion will do just that. A strong aomi. Pure bad luck played a part. they will surely have learned that economy should keep core infla- 0.8 Chinese stocks listed in Hong Kong investors are currently in no mood Performance since DJIA decision tion at at least 2%. Throw in re- 2008 ’10 ’12 ’14 ’16 ’18 have just entered a bear market: to swallow any old hype. cent fuel-price increases that could Source: Commerce Department 8% feed into prices for non-energy THE WALL STREET JOURNAL. items and tariffs that could lift im- 6 port costs, and core inflation could tive, it is going to have to keep 4 go higher still. raising rates. GE Perhaps the biggest worry for The most important question 2 the Fed is the unemployment rate. for investors right now is how At 3.8% (and probably headed much rates have to go up for the 0 lower), it is well below the 4.5% Fed to believe that monetary pol- level that Fed policy makers see as icy has gone from accommodative –2 sustainable. So in the Fed’s view, to restrictive. the case is building for it to start Right now the Fed expects to –4 leaning against the economy. raise rates two more times this Despite multiple rate increases, year, and three times next. That –6 Walgreens the Fed believes it is leaning with means policy, by the Fed’s own –8 the economy. In the statement it measure, wouldn’t turn restrictive released following its June meet- until the end of 2019. Source: FactSet ing, the Fed said that its policy If the Fed needs to move faster RICHARD DREW/AP (ABOVE); FRED DUFOUR/AFP/GETTY IMAGES THE WALL STREET JOURNAL. stance was “accommodative.” If it than that, markets would be in for Xiaomi has tried to spin itself as more than just a maker of smartphones. is going to go from that to restric- a surprise. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

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When Joel injects a person, he Lessons feels the sensation of a needle en- tering his own skin; upon seeing an amputated arm, his own arm feels From as though it has been ripped apart. He feels other people’s emotions, too, which he says helps him to Strange connect with patients. “If someone looks nervous, then my brain will Brains feel those movements as if they are happening to my own face and say, ‘You’re nervous.’ It helps me under- Continuedfromthepriorpage stand what they’re really feeling.” up inside us all, waiting to be un- This tallies with the work of leashed. It shows us that our percep- neuroscientist Antonio Damasio of tions of the world aren’t always the the University of Southern Califor- same. It even forces us to question nia, who states that feelings only whether our own brain is as normal occur after our brain senses physi- as it would have us believe. cal changes in our body and at- For two years, I traveled taches value to them. You can test around the world to meet people this theory now. Pull the corners of with extraordinary brains. They your mouth up, squeeze your have all been tested, scanned and cheeks and crinkle your eyes— analyzed by multiple doctors and there, you’re smiling. Stay like researchers. Through their stories that. Do you feel better? Several I uncovered the mysterious man- studies have shown that the physi- ner in which the brain can shape cal act of smiling makes you feel our lives in unexpected—and, in instantly happier. some cases, brilliant or alarming— While the mind can’t be fooled ways. They also taught me some into a permanent state of bliss, the of the secrets of my own mind. idea that our feelings are a result Take Sharon. We only began to of the things that happen to our understand how we navigate in the body can help us in other ways. 1960s, when neuroscientist John Our ability to sense the physical O’Keefe, at University College Lon- state of our body—a rumbling don, placed a set of electrodes into stomach, a sense of thirst—is the hippocampi of rats, to record called interoception, and it con- the spikes of electricity that occur stantly guides our thoughts and in this brain region as the animals behavior. explored their environment. In do- For some people, this system ing so, he discovered “place goes awry in a condition called de- cells”—cells that only fire when a personalization. Louise, a teacher rat is in a specific location. The from the U.K., was 8 years old combination of their activity forms when it first happened to her. “I a kind of electrical map inside the brain. 2006, he published a paper naming the condition Highly woke up that morning and suddenly felt like I’d been But place cells can’t do this job alone. Later research Superior Autobiographical Memory (HSAM). dropped into my body,” she says. “It’s really hard to de- showed that they communicate with many other cells, A decade later, Dr. McGaugh had a group of around 50 scribe, but it was like I was just born. Everything around those that process which way our head is turned and people with HSAM. By scanning their brains while they me felt new.” where walls and boundaries are, together with an im- carried out memory tasks, he discovered that they had an Like many people with depersonalization, Louise has portant brain region called the retrosplenial cortex, re- enlarged caudate nucleus and putamen—two areas impli- great difficulty describing her state of mind. “When sponsible for incorporating permanent landmarks into cated in obsessive compulsive disorder. Dr. McGaugh con- you’re in this state, everything around you feels like it is our mental map. cluded that their extraordinary powers of memory are screaming at you to get noticed. But at the same time It wasn’t until 2009, however, that it was discovered rooted not in their ability to form memories, but in an your whole world seems like it’s happening to someone that this map could go terribly wrong. Giuseppe Iaria, unconscious rehearsal of their past. They accidentally else, someone you’re not in control of. It’s like walking then at the University of British Columbia, was investi- strengthen their memories by habitually recalling and re- through tar. It’s exhausting,” she says. gating why some people are better navigators than oth- flecting upon them—“a unique form of OCD,” he says. The region that integrates all this interoceptive infor- ers. In the process, he met a patient who, like Sharon, While we may not be able to remember as much as mation is the insula, a fold in the center of the brain. was permanently lost. He called the condition DTD and Bob or Jill, there are tricks we can learn to forge more The front of the insula “is the area of the brain that later published a paper in Neuropsychologia stating that permanent memories. Studies by Eleanor Maguire at forms a default setting of ‘This is me here and now,’ ” the problem resulted from a lack of communication be- University College London and her colleagues helped says Nick Medford, a consciousness expert at Brighton tween all the regions of the brain involved in creating demonstrate that the brain prefers to store memories as and Sussex Medical School. Dr. Medford spends much of a mental map. images in an orderly location. They did this by compar- his time placing people in brain scanners and showing For anyone who has a bad sense of direction, Dr. Iaria “Iwokeup ing the brain activity of world memory champions with them pictures of grotesque surgery, filthy bathrooms says it’s never too late to improve your navigational that a control group, while they memorized lists of items. and cockroaches—images designed to elicit aversive re- skills. “If you’re in a new area, you should return to one Results showed the only difference was that the cham- actions. When we look at these kinds of highly evocative point often, as this will help you build a better mental morning pions preferentially used parts of the brain responsible for stimuli, the insula lights up with activity. When Dr. Med- map,” he says. Paying attention to specific landmarks and navigation and spatial awareness during the tasks. It ford showed 14 people with depersonalization these im- and their orientation to one another can also assist your suddenly turned out that they had better memories purely because ages, however, he found a startling lack of activity. retrosplenial cortex in building these into your mental they were placing items they needed to remember as im- You can check your own interoceptive abilities now, map and help you find your way home. felt like ages around a “mind palace.” A mind palace is a location simply by counting your heartbeat without touching your Not all brain disorders are as detrimental as DTD. I’d been you know well, like your walk to work—and anyone can chest. Studies have found that people who are better at Bob, a TV producer from Los Angeles, remembers every dropped use it. Simply place items you want to remember along this task are also more empathetic, better at dividing day of his life as if it happened yesterday. His perfect this route and you’ll be able to recall them easily by men- their attention and make better decisions. It suggests memory is a gift, he says: “I don’t have to mourn peo- into my tally retracing your steps and picking them up. that our gut feelings, on which we often base decisions, ple after they’ve passed away because my memory of body.” Joel, a doctor at Massachusetts General Hospital in may rely on an awareness of subconscious body signals. them is so clear.” Boston, has a unique condition that has both benefits and There could be one way to improve interoception. The condition was discovered by James McGaugh at drawbacks. It is called mirror-touch synesthesia, and it’s Vivien Ainley and her colleagues at Royal Holloway, Uni- the University of California, Irvine, in 2001, after he re- the ability to feel other people’s touch, pain and emotions versity of London, showed that people are more accu- ceived a peculiar email from a woman named Jill. “Since as if they are happening to your own body. A scratch of rate at counting their heartbeats while staring at a pic- I was 11 I have had this unbelievable ability to recall my the head, a frown, a punch on the arm—if Joel sees it, he ture of themselves. It’s thought that this helps shift the past,” she said. “When I see a date…I go back to that day feels it. In other words, he is hyper-empathetic. brain’s attention from the outside world to the internal and remember where I was, what I was doing, what day We all experience others’ worlds to some extent. For world, via the insula. Whether this could eventually lead it fell on and on and on.” that we can thank our mirror neurons—brain cells that to persistent levels of increased interoception is under The exact nature of memory is hotly debated, but the act in the same way whether I make a movement or see investigation. In a world full of brain-training apps and general consensus is that memories are stored at syn- someone else make that same movement. Most of us re- drugs that promise a shortcut to a brighter brain, I like apses—gaps between brain cells called neurons. As one ceive veto signals from other cells that damp our mirror the idea that we might be able to improve ourselves neuron sends signals to another, the connection between neuron activity and allow us to distinguish between simply by looking in the mirror. these two cells strengthens, gluing different aspects of what’s happening to us and what’s happening to those It goes without saying that we should relish the lives a memory together. around us. When Michael Banissy at Goldsmiths, Univer- that our brains create—particularly those that aren’t Dr. McGaugh wondered whether Jill’s unprecedented sity of London, scanned the brains of 16 mirror-touch “normal.” In fact, as we unravel the mysteries of the memory came down to the way she stored memories. synesthetes, he discovered that they lack these veto sig- mind, it is becoming clearer that all our perceptions of But he soon discovered that Jill wasn’t great at other nals and have less brain tissue in an area that helps us the world may be unique. We all possess a remarkable

ILLUSTRATION BYmemory DANIEL BAXTER; GETTY IMAGES (FACE) tasks, like remembering strings of numbers. In distinguish the self from other. feat of neural engineering. Let’s celebrate its differences.

crowd-pleasing goal. It has Spanish-language broadcasts. In Spanish crossed over into Anglophone 2002, a columnist for the Pitts- soccer parlance, as when the burgh Post-Gazette wrote about Gives a Bit sports website Deadspin last picking up Spanish expressions Saturday ran the headline, from watching the World Cup “Toni Kroos Saves Germany’s on Univision: “A striker who Of Pasión World Cup With Insane Last- sends the pelota [ball] on a WORD ON Second Golazo.” (Germany beat rocket-like trajectory toward THE STREET To a Soccer Sweden that day, but later in the goal has fired a pelotazo; if the week could have used a the sphere finds the net, it’s not BEN Standby few golazos in its 2-0 loss to just a gol—it’s a golazo.” ZIMMER South Korea, which eliminated In Spanish-language media, the defending champions from the impact of “golazo” might the competition.) be a bit diluted these days, be- SOCCER FANS around the “Golazo” has a globe-trot- cause the word seems to get world have their eyes on Rus- ting history particularly appro- TONI KROOS of Germany scored a big goal in last Saturday’s game. used for any goal with some sia, as 16 teams advance to the priate for the World Cup. The importance, regardless of the knockout stage of the World word’s origins lie in the Eng- “meta.”) “Gol” then picked up casting career at a Mexican TV artistry or skill of the play. In Cup. It’s a quadrennial display lish word “goal,” which comes the suffix “-azo,” which works station. Among Mexican fans, English, however, “golazo” is of just how much international from a medieval word meaning as an augmentative, turning a “a lot of people screamed like just starting to take off. appeal the sport has. That “boundary.” As early as the goal into a great goal—one that,” he said. English has plenty of native goes for soccer’s terminology 16th century, precursors to the could translate it as “a heck of A decade later, when Mr. terms for impressive goals— modern game of soccer (or a goal.” (A little goal would be Ramírez moved to Univision, British announcers in particu- football, if you’d prefer to be a “golito,” using the diminutive “golazo” became his trade- lar exult in a panoply of de- more international) used the suffix “-ito.”) mark call, and the word re- scriptions like “cracker,” word “goal” to refer to the Pablo Ramírez, a longtime ceived great exposure in his “screamer,” “thunderbolt” or [Golazo] target for scoring as well as soccer commentator for Univi- play-by-play commentary for “wondergoal.” the act of a player scoring. sion, did much to popularize World Cup matches starting in But there remains some- In Latin American Spanish, the word. He’s famous for his 2002. (Telemundo has taken thing special about “golazo”: too, which often crosses lin- “goal” was borrowed into the ebullient call of “Golazo, go- over from its rival Univision in “It’s not just the best way to guistic borders. sport of fútbol as “gol.” (The lazo, golazo, azo, azo, azo!” broadcasting this year’s World describe an extremely awe- Consider “golazo,” often Royal Spanish Academy, which Mr. Ramírez told me that he Cup in Spanish.) some and important goal,” shouted by Spanish-language looks down on such English first came up with his “go- “Golazo” then worked its Deadspin senior editor David television commentators in loan-words, reckons that the lazo” call around 1990, when way into English soccer lingo, Roth told me, “but effectively

celebration of a sensational, proper Spanish word is he was beginning his broad- thanks to the popularity of the only way.” STUART FRANKLIN/FIFA/GETTY IMAGES For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

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science effort on record. Experts believe that multiple fac- tors must be at play in the bees’ plight. The main suspects are referred to as the four Ps: parasites, poor nu- trition, pathogens and pesticides. The parasites include tiny Varroa mites that feed on bees’ body fluids. The Asia natives have spread through in- ternational trade in bees and bee- keeping equipment, and now afflict hives in every beekeeping country outside Australia, which has held them off through strict controls. Poor nutrition reflects a widespread loss of flowers in rural landscapes because of the rise of industrial farming prac- tices over the past 60 years; varied farms have given way to vast mono- cultures that are efficient for growing crops but only provide bee-sustaining flowers for a few weeks a year. The list of pathogens carried by bees includes fungal infections and wing-deforming viruses, many of which get moved around with inter- national trade. Pesticides have got- ten the most attention of the four Ps, and the European Union cited bee concerns in their recent ban of a popular class known as neonicoti- noids—but with hundreds of chemi- cals on the market, it’s nearly impos- sible to tease out individual effects. Products that pass “bee safe” tests in a laboratory can become unsafe when mixed with the fungicides or herbicides often sprayed on the same fields.

ISTOCK This complexity means that the causes of bee declines probably vary in different places, and that the overarching problem boils down to bee health. When The Plight of the bees are weakened by any one of the four Ps, they be- come more susceptible to the others. And when enough individuals get sick, the whole colony fails. The beepocalypse does have a silver lining. Never be- fore have scientists known so much about the threats to bees—not just honeybees, but all the world’s 20,000 va- rieties. And while many questions remain unanswered, Humble Bee we have learned enough to take action. Remedies for bee decline can be as simple as planting flowers and reducing pesticide use, but the results are Stung by the ‘beepocalypse,’ farmers and scientists are struggling to replenish often transformational. With the right mix of flowers and nesting habitat, nearly any patch of ground can be fallen colonies, as bee rustlers swipe hives and food crops suffer turned into a bee garden and provide everything small bees need to forage, nest and reproduce over the course BY THOR HANSON ratio is even higher; bees visit more than 75% of them. of a season. For larger, farther-ranging bee species, such Bees also provide much of the flavor in the human A HONEYBEE in gardens are important flower and nectar resources, like HE WORLD’S BEES are in decline, driving up diet, nutritious or not. Take a McDonald’s Big Mac: The an almond pit-stops scattered across the landscape. the price of pollination so high it has spurred bun comes from wind-pollinated grains and the beef from flower. For a glimpse of what is possible on a larger scale, bee a black market of bee rustlers dealing in sto- a grass-and-grain-fed cow. But then there’s the special California campaigners everywhere look to a small community in Tlen hives. The almond growers of California’s sauce, which requires at least five different bee-depen- almond rural Washington state. For three generations, alfalfa central valley, who need 1.8 million hives dent ingredients, including paprika (from a bee-polli- growers are farmers in the Touchet Valley have been raising more each year, have seen the price to rent them grow over the nated pepper), turmeric (the root of a bee-pollinated gin- adding other than a valuable seed crop. Scattered across their bloom- past decade from $50 to as much as $200—valuable ger), and canola oil (from the seeds of a bee-pollinated bee-friendly ing fields are wide, barren plots of salted earth, specially enough for thieves to spirit thousands away each season mustard). The pickle slices come from bee-pollinated cu- plants, aiming tended and irrigated to mimic the nesting habitat of a in the dead of night, to be rebranded and pawned off to cumbers, and onions require bee pollination to produce to triple local tiny burrowing bee. Honeybees don’t like alfalfa, but the different growers. Last year, police uncovered one cache seeds. Even the American cheese involves coloring from bee diversity. native alkali bees thrive on it, and with the farmers’ help of contraband bees worth close to $1 million. bee-pollinated annatto, milk from dairy cows that eat their numbers have skyrocketed. As the local saying Farmers, beekeepers and biologists have a name for bee-pollinated alfalfa, and an emulsifier made from soy- goes, “You get more flowers, you get more bees.” And ev- the problem: the “beepocalypse.” It started mysteriously beans, which can self-pollinate, but produce higher yields ery bee brings increased yields and profits. in 2006, when hives began failing en masse across North if bees are present. The valley’s alkali bee population has reached an esti- America, and next spread to Europe. Healthy-seeming Now, bees need people, too. To replenish their stocks, mated 18 million to 25 million nesting females, with at bees would simply fly away and never come back, leaving California almond growers are working with pollinator “ least that number of males—the largest native pollinator behind combs full of honey and a dying, untended queen. specialists to add bee-friendly hedgerows and cover crops The price population ever measured. During a recent drought, peo- Scientists at the time dubbed the phenomenon “colony of native wildflowers to more than 10,000 acres, aiming to rent a ple skipped showers and let their lawns die to keep wa- collapse disorder” and launched a massive research ef- to triple local bee diversity and reduce the need for ter flowing to the bee beds. Even the local highway de- fort, yet no clear cause of the malady has ever emerged. rented hives shipped in from around the country. Some hive has partment pitches in, putting up 20 m.p.h. bee-safe speed Stranger still, honeybees continue dying even though col- major corporations including General Mills have begun grown to zones alongside every teeming field. With the world’s ony collapse disorder peaked quickly and has been on the requiring such bee-friendly practices throughout their bees depending on us as much as we do on them, those wane. Those classic empty-hive symptoms now appear in supply chains. Nearly 200,000 volunteers have signed up as much signs have good advice for everyone: Slow down, smell less than 5% of failed hives, yet beekeepers continue los- to monitor bees in their yards for the Great Sunflower as $200. the flowers, and listen to the buzz. ing between 30% and 40% of their stock every season. Project, started by a biology professor at San Francisco People badly need bees. Biologists chalk up every third State University in 2008. She asked participants to plant This essay is adapted from Mr. Hanson’s book “Buzz: bite of food in the human diet to bee pollination, and in sunflowers and record bee visits, a valuable source of The Nature and Necessity of Bees,” to be published by terms of the most popular and nutritious food crops the data to track broad trends. It’s now the largest citizen Basic Books on July 10.

In the public sphere, there’s a stunned repeat- or harassment understandably What We double issue: NDAs can cost edly with a may value confidentiality. Compa- American taxpayers money, while Taser by a de- nies have good reasons to protect preventing us from knowing what tention officer. trade secrets. Many argue that Don’t kind of silence the dollars are Bethea’s family parties to a voluntary contract buying and whether it is against received ought to be able to reach whatever the public interest. Nevertheless, $350,000 of agreement suits them, so long as Know Can since 1997, the Congressional Of- public funds there is no public harm. fice of Compliance says it has and agreed not Accountability requires trans- paid $17 million to settle all sorts to speak of the parency, as more policymakers are Hurt Us of workplace disputes in Con- case. A video of realizing—and there is public gress itself, allowing NDAs to be his death that harm in allowing defective prod- included in the final settlements. later leaked to a ucts to stay on the market, mask- That figure doesn’t include agree- local newspaper ing sexual predators or restrain- BY RUTH W. GRANT ments such as those made by showed that ing whistleblowers. Congress has Reps. Patrick Meehan of Pennsyl- prison officials passed legislation in recent THANKS TO Stormy Daniels, Har- vania and John Conyers of Michi- had misrepre- months to restrict the use of tax- vey Weinstein and #MeToo, most of gan, each of whom resigned in re- sented the inci- payer money and nondisclosure in us are now familiar with agree- cent months after it came to light dent, though settling sexual harassment cases, ments where one party purchases that they had paid settlements county officials though the bill has yet to be sent the other’s silence. But such nondis- from their office funds to women NONDISCLOSURE tails of the case say they still consider the matter to the president for his signature. closure agreements, also known as who accused them of sexual ha- agreements like are concealed resolved. Lawmakers in California and NDAs, aren’t limited to allegations rassment. Both men denied the the one signed by a confidenti- Even in cases involving private Pennsylvania, in addition to New of sexual misconduct, and often harassment. by Stormy ality agree- companies, rejecting NDAs can un- Jersey, are exploring changes. they involve public money. The Some state governments and Daniels have ment. New Jer- veil issues that affect the public in- Several other states, including agreements regularly undermine agencies have increasingly used become sey officials terest. In exchange for confidential- Florida, Washington and Louisi- the accountability of the powerful NDAs as well, even as others have common. Some reject his accu- ity, Enterprise Rent-A-Car offered ana, already have laws prohibiting and protection for the public. banned or limited their use. In lawmakers are sations, but the $3 million to the parents of two Cal- NDAs if they conceal “public haz- Nondisclosure agreements are Montana, an auditor found that now rethinking state’s lower ifornia sisters who died in a crash, ards,” such as dangers to general more prevalent than you may think. money spent on settlements in- them. house has since the parents’ attorney told reporters, health or safety. More than one-third of U.S. employ- cluding non-disclosures between passed legisla- because of the company’s failure to These are promising develop- ees are bound by NDAs of some state employees and the executive tion now under repair a recalled PT Cruiser. The ments that point to the same con- kind, according to the findings of a branch had quadrupled from 2009 consideration in its senate to cur- parents refused the offer, won a $15 clusion: It is time to rethink the 2014 national survey of 11,500 la- to 2017, from $200,000 to tail the use of NDAs in cases in- million court judgment in 2010, and balance between private interests bor-force participants by research- $800,000. A former New Jersey volving public officials. then went on to help get a federal in secrecy and the public’s right ers at the universities of Michigan prosecutor, who claimed that he In North Carolina, a 2016 settle- law passed in 2016—the Houck to know. and Maryland. That means there’s a was fired for whistleblowing that ment that included an NDA helped Act—banning rentals of cars with good chance your own employee exposed alleged corruption in Gov. shield law-enforcement officials manufacturers’ recalls in effect until Dr. Grant is a professor of politi- contract may forbid you from dis- ’s administration, re- from scrutiny after a Harnett repairs are done. cal science and a fellow at the Ke- closing certain kinds of information ceived a $1.5 million settlement County prison inmate named Of course, secrecy is sometimes nan Institute for Ethics at Duke

about your employer. from the state in 2016, but the de- Brandon Bethea died after being justified. Victims of sexual abuse University. HEIDI GUTMAN/ABC/ASSOCIATED PRESS For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

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EVERYDAY PHYSICS

HELEN CZERSKI A Crash Course in Summer Thunderstorms

THE THUNDERSTORMS of July are just around the corner. The first flash of lightning may offer the dazzle and the peril, but the thunder announces the scale of this atmospheric drama: a gi- gantic boom that fills the sky and your ears. I find the thunder far more interesting than the lightning. The richness of that sound has quite a story to tell. As a thundercloud begins to darken and swell, its chilly innards host a churning jumble of ice particles. Foun- tains of air surge upward inside the growing thundercloud and push the ti- niest ice crystals upward, but the larger ice pellets continue to fall, so there are constant collisions. The consequence of the collisions is that electrons get knocked off the crystals and join the pellets, and so the negative electric charge that all electrons carry starts to accumulate at the bottom of the cloud. This charge eventually finds a path to the ground: a narrow channel of conductive air ex- tending downward from the cloud that meets other delicate electrical tendrils snaking up from the ground. At the instant of connection, a vast electrical current can flow, dumping

so much heat in the channel that air FROM TOP: MARK WILSON/THE BOSTON GLOBE/GETTY IMAGES; JOHN MOORE/GETTY IMAGES is converted to a plasma. The temper- CENTRAL AMERICANS seeking admission to the U.S. lined up for a meal at the Red Cross shelter in March 1989 in Brownsville, Texas. ature soars to an astonishing 52,000 degrees Fahrenheit within a few mil- lionths of a second. The hot plasma BY MARIA CRISTINA GARCIA tion because of race, religion, na- blazes white, and we see it for the ti- tionality, membership in a partic- niest fraction of a second: a lightning HE PUBLIC outcry ular social group or political bolt. was immediate. opinion. They must prove that If you’re standing a mile away, that After Attorney their government failed to protect light reaches you five millionths of a TGeneral Jeff Ses- them; that they could not find second later, and then it’s gone. But in sions announced safety elsewhere in their country; the air around the channel, things are the administration’s new “zero and that they face imminent dan- just getting started. The hot tube of tolerance” policy to discourage gerifforcedtoreturn.Theyalso plasma expands rapidly, shoving into illegal immigration across the must prove that they have not in- the air around it so hard that it cre- U.S.-Mexico border in April, flicted harm on others, committed ates a sonic boom. Sound travels far photos and audiotapes of chil- certain types of crimes or become more slowly than light, so if you’re a dren separated from their par- a national security threat. mile from the base of the lightning ents at the border and crying in Even if they meet all these bolt you’ll have to wait a whole five cage-like quarters soon ap- conditions, there is no guarantee seconds before the first sharp crack peared in the news. of asylum. Decisions are made on finally reaches you. President Donald Trump a case-by-case basis, and near- But the thunder doesn’t stop. The has since signed an executive identical cases can receive com- lightning bolt probably extends a cou- order halting family separa- pletely different rulings. While ple of miles upward, and the sound tions, although more than they wait for their cases to make from higher up takes longer to reach 2,000 children remain in the their ways through the backlog, you. As the thunder rolls on, you’re care of the Department of asylum seekers often wait in im- hearing the same plasma explosion, Health and Human Services. migration-detention facilities for but it’s traveled from farther away. The new policy is only meant Shifts in the years. By March 2018, the backlog That lets you pick out what the air it- to be temporary, however. A in U.S. immigration courts had self is doing to the sound: filtering long-term solution on immigra- reached 690,000 cases. out the highest notes. The pitch drops tion is still needed—and any Immigrating lawfully is a re- as time passes, because the lower discussion has to start with a Search for mote option. U.S. immigration law notes are the only ones left after a deeper understanding of the gives priority to those with finan- longer trip through the air. country’s history on the issues, cial means, education and skills Listen to the rumble: You’re hear- as well as the circumstances of necessary to the U.S. economy, ing the shape of the lightning bolt. those seeking to enter the U.S. and to those with familial ties to Lightning doesn’t travel in a perfectly Obscured in the government Asylum citizens and permanent residents. straight line. Instead, it looks more statistics are asylum seekers Facing few opportunities for like straight sections that are linked from Central America. Unlike lawful entry, many Central Ameri- at different angles. It can zigzag all refugees, who are referred to The policy makers behind the 1980 cans risk their savings, safety and over the place on its way to the the U.S. Refugee Admissions futures to enter the U.S. Most are ground, and lightning scientists have Program for resettlement in Refugee Act never imagined today’s coming from Central America’s a great word for the amount of zig- the U.S., asylum seekers make flood of requests for safe haven Northern Triangle—Honduras, Gua- zagging: tortuosity. The rumble comes their way to the U.S. to plead temala and El Salvador, three of the and goes because it’s the sum of the their case. poorest, most violent and most di- sound from all of those sections, fre- The exact number of asylum seekers is un- tions they fled, fewer than 5% of Salvadoran saster-struck countries in the Americas. These quently overlapping as they reach known. Some have been prevented from step- and Guatemalan applicants received asylum in countries have among the highest homicide you. Then you’ll also start to hear ping on U.S. soil to request asylum. Others, at the 1980s, so most opted to stay off the gov- rates per capita in the world, much of it driven echoes as the sound reflects off the initial interview, have been told that they ernment’s radar until conditions in their coun- by drug trafficking and easy access to arms. don’t have a case and have been placed in ex- tries of origin improved and they could safely Central Americans who flee their communi- pedited removal—a fast-track process of expel- return home. ties, then, are escaping a range of problems, so ling people from the U.S. without the usual This growing migration from Central it becomes impossible to distinguish the perse- hearing before a judge. Still others have been America and Haiti—as well as from Mexico, cuted from those in search of economic oppor- told that their children will be returned to China and other parts of the world—sug- tunities. More often than not, they are both. them only if they agree to leave the U.S. Both gested to Americans that the U.S. had lost the Parents often send children unaccompanied refugee and asylum admissions aren’t high: ability to control its borders. Congress re- to the U.S. to be reunited with family members 59,000 refugees and 24,500 asylees were ad- sponded with a number and friends, and to save them from forced re- mitted each year, on average, between 2004 of immigration bills to cruitment into gangs, extrajudicial reprisals, and 2016. In 2016 alone, 180,000 people offi- expand the policing of human trafficking and lives of poverty. Unac- nearby build- cially filed for asylum. ASYLUM ports of entry and im- companied minors are among the fastest- ings, walls and The policy makers who crafted the 1980 SEEKERS from pose more severe penal- growing populations of asylum seekers in the hills, extending the Refugee Act never imagined that within a Central America ties on unlawful entry. post-Cold War period. The U.S. Customs and rumble for even lon- generation the U.S. would have a vast asylum waited as U.S. Deterrence, detention Border Protection apprehended close to ger. bureaucracy. In passing the 1980 law, Con- agents took and deportation became 200,000 unaccompanied children between Oc- But if you’re more gress sought to create a separate immigration them into key features in the im- tober 2012 and March 2016. Two-thirds of than about 16 miles from track for the politically persecuted, many of custody June migration platforms of them came from the Northern Triangle. the lightning strike, all of them from communist countries, who were 12, near Republican and Demo- Escaping criminal and political violence is this acoustical complexity identified abroad for resettlement in the U.S. McAllen, Texas. cratic politicians. This not enough to receive asylum, however, and may never reach you at all. Legislators concerned themselves less with further discouraged im- Hondurans, Salvadorans and Guatemalans Air temperature usually drops the comparatively smaller number of asylum migrants from pursuing have among the highest asylum denial rates in as you go higher up, and sound seekers who requested protection at airports asylum. A negative ruling meant deportation the country. In June, Mr. Sessions announced travels more slowly in colder air. If and other ports of entry. and, for some, certain death, so many chose to that the Justice Department would overturn sound is traveling horizontally, that From 1973 to 1979, for example, only 22,722 file their asylum claims only after immigration any court precedents that might allow victims means the sound closer to the ground persons requested asylum. Only the defection authorities detained them, as a last-ditch ef- of domestic and gang violence to receive asy- will be going faster than the sound of Russian ballet dancers, Eastern European fort to stay in the U.S. lum—further diminishing their chances. higher up, and so the rumble bends athletes or Chinese scientists generated media In the wake of 9/11, the asylum bureaucracy American policy makers, immigrant advo- away from the ground. If you’re too attention. Those requesting asylum were usu- has become even more complex and daunting. cates and asylum officials and judges face dif- far away, it will pass over your head, ally released on their own recognizance while Those who file “defensive asylum claims” to ficult choices in the years ahead. Who will we never reaching your ears. they waited for a resolution of their case. prevent deportation face an especially high admit, and in what numbers? The number of So the sound from each lightning A decade later, petitions for asylum in- burden of proof. The majority of asylum seek- refugees, asylum seekers and displaced per- strike carries with it the imprint of creased drastically due to the political turmoil ers make their case without the benefit of legal sons world-wide—currently 68.5 million, ac- the atmosphere around the lightning in Haiti and the civil wars in Central America. counsel or even a professional interpreter. In cording to the UNHCR, the United Nations ref- bolt. I’ll be looking forward to the More than 400,000 people requested asylum the criminal courts, one is presumed innocent ugee agency—shows no sign of slowing. summer’s thunderstorms, and as I from 1980 to 1990, with Central Americans fil- until proven guilty, but in immigration hear- hear the thunder I’ll be watching the ing roughly half of all applications. ings, asylum seekers are presumed to be lying Dr. Garcia is a professor of history at Cor- sky, imagining the dance of the sound Many more migrants bypassed the asylum until they can show they are telling the truth. nell University and author of “The Refugee waves creating this fabulous sym- system altogether and remained undocu- Like refugees, asylum seekers must prove Challenge in Post-Cold War America,” pub-

TOMASZ WALENTA phony. mented in the U.S. Despite the brutal condi- that they have been singled out for persecu- lished by Oxford University Press. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | C5 REVIEW

HISTORICALLY SPEAKING Thomas Aquinas. “By this sacrament, we are made partakers of the fruit of our Lord’s Pas- The Controversy sion.” In this period, the popular attitude to- AMANDA FOREMAN ward the Eucharist was overwhelmingly one of awe, which discouraged frequent reception of Communion by lay people. Over Communion Protestant reformers of the 16th century re- AtFifty,aTime jected Eucharistic sacrifice as a vain and unnec- essary attempt to repeat Jesus’ redemption of Of Second Acts humanity, which had been accomplished once and for all on the cross. Martin Luther taught I TURNED 50 this A push to widen who can share the sacred rite rekindles that Christ was present in the consecrated week, and like many a centuries-long debate about Catholic tradition bread and wine, but only temporarily, while people I experienced a other reformers entirely rejected the doctrine full-blown midlife crisis of the “real presence.” Protestant churches ac- in the lead-up to the cordingly did away with the tabernacle that Big Day. The famous F. Scott housed the Eucharist in Catholic churches. Fitzgerald quotation, “There are no In response, Rome reaffirmed the Eucharist’s second acts in American lives,” centrality, underlining the point by making the dominated my thoughts. I wondered tabernacle the visual focus of Baroque now that my first act was over— churches, raised up and illuminated by natural would my life no longer be about light from large windows. The emphasis on the opportunities and instead consist Mass’ sacrificial character continued until the largely of consequences? Second Vatican Council in 1962-5, which sought Fitzgerald, who left the line among to restore the sense of banquet as well. Today, his notes for “The Last Tycoon,” had the priest usually faces worshipers at Mass and ample reason for pessimism. He had the tabernacle is often relegated to the side- hoped the novel would lead to his lines, no longer the center of attention. own second act after failing to make Over the past half-century, influential theo- it in Hollywood, but he died at 44, logical currents have embraced the idea of the broken and disappointed, leaving the Mass as essentially a welcoming meal, often book unfinished. Yet the truth about linking it with Gospel accounts of Jesus’ will- his grim line is more complicated. ingness to eat with outcasts and sinners. Several years earlier, Fitzgerald had The late Rev. Eugene A. LaVerdiere, a used it to make an almost opposite prominent American scripture scholar, wrote point, in the essay “My Lost City”: “I in 1994: “Jesus, his disciples, all who follow once thought that there were no sec- later, and the church itself are a people on a ond acts in American lives, but there journey, a people of hospitality, both offered was certainly to be a second act to and received. The Eucharist is the supreme New York’s boom days.” expression of this hospitality, sustaining them The one comfort we should take on their journey to the kingdom of God.” from countless examples in history In such a context, it can be hard for Catho- is the power of reinvention. The Vic- lics and Protestants, especially if they are torian poet William Ernest Henley members of the same family, to understand was right when he wrote, “I am the why they may not share the sacrament. But master of my fate/ I am the captain doctrinal conservatives on both sides warn of my soul.” that so-called intercommunion threatens to The point is to seize the moment. obscure important differences of belief be- The disabled Roman Emperor Clau- tween them, not least about the nature of the dius, (10 B.C.-A.D. 54) spent most his sacrament itself. life being victimized by his awful Catholic conservatives also stress the tradi- family. Claudius was 50 when his tional requirement of moral worthiness to re- nephew, Caligula, met his end at the ceive Communion, invoking one of the earliest hands of some of his own household Christian texts, St. Paul’s First Letter to the security, the Praetorian Guards. The Corinthians. Hence the objections to Pope Fran- historian Suetonius writes that a cis’ policy of encouraging Communion for di- soldier discovered Claudius, who had vorced Catholics who remarry without an an- tried to hide, trembling in the pal- nulment of their first marriage, a situation that

LEEMAGE/CORBIS/GETTY IMAGES church teaching defines as adultery. Winston In the 20th century, the Vatican forbade giv- Churchill ing Communion to Freemasons and members BY FRANCIS X. ROCCA THE VIRGIN Other fights have di- of the Communist Party on the grounds that Mary adoring vided Catholics in recent their organizations’ values conflict with Cathol- HOULD CATHOLICS be allowed to the Eucharist, years over who should icism. Some U.S. have called for deny- share Communion, one of their painted by receive Communion and ing Communion to Catholic politicians who church’s most sacred rites, with Jean-Auguste- under what circum- support legalized abortion or euthanasia, an is- Stheir Protestant spouses? That Dominique stances—including those sue that took on special importance during the question, now the center of a debate Ingres in 1866. who have been divorced 2004 presidential campaign, when the Demo- roiling German Catholics, is also echoing a and remarried, Catholic cratic candidate was Sen. John Kerry, a Catho- broader global controversy about how to de- politicians who support lic who supported abortion rights. fine a religious community’s core beliefs and abortion rights or euthanasia, and most re- That question took on a new twist earlier collective identity. cently Catholics enforcing U.S. immigration this month, when Edward Weisenburger Germany’s Catholic bishops voted in Febru- rules separating families at the border. These of Tucson, Ariz., raised the possibility of im- ary to publish guidelines for sharing Commu- debates reflect profound differences over how posing “canonical penalties” on immigration nion with Protestant spouses upon the approval Catholics understand what they call the Most officers taking part in the separation of immi- of a parish priest. But a conservative minority Blessed Sacrament. Where some see a move to grant children from their parents under a TONY RODRIGUEZ of German bishops objected, noting that church inclusiveness, others see sacrilege. Trump administration policy that the president law lets Protestants receive Catholic Commu- Catholics believe that Jesus instituted Com- of the U.S. bishops’ conference denounced as ace. The guards decided to make nion only in cases of “danger of death” or munion, also known as the Eucharist, at the immoral. Bishop Weisenburger did not specify Claudius their puppet emperor. It “some other grave necessity.” The conserva- Last Supper, when he offered his apostles his what penalties he had in mind, but many as- was a grave miscalculation. Claudius tives appealed to the Vatican for a ruling. body and blood in the forms of bread and wine. sumed they might include denying Communion. grabbed his chance, shed his bum- At first seemed open to the The redemptive sacrifice of his death on the That policy would be consistent with Pope bling persona and became a forceful proposed policy, but then he blocked its publi- cross is renewed every time an ordained priest Francis’ statement in April that the plight of and innovative ruler of Rome. cation until further study could be made. Last consecrates bread and wine at Mass. The migrants and the poor is as morally urgent as In Russia many centuries later, the week, he said that such decisions should be up church also teaches that the Mass is a “sacred bioethical questions such as abortion. Yet pe- general Mikhail Kutuzov was in his to individual local bishops. On Wednesday, the banquet of communion” that affirms and nalizing people by denying them Communion 60s when his moment came. In 1805, German bishops’ leaders published the guide- strengthens the unity of gathered believers. would clash with the pope’s best-known state- Czar Alexander I had unfairly blamed lines anyway, announcing that they were “on Starting in the Middle Ages, the idea of sac- ment about the sacrament, which seems to Kutuzov for the army’s defeat at the an ecumenical quest to achieve a more pro- rifice began to prevail over the banquet. “The stress the value of hospitality over worthiness. Battle of Austerlitz and relegated him found understanding and even greater unity celebration of this sacrament is an image repre- “The Eucharist,” Pope Francis wrote in 2013, to desk duties. Russian society cruelly among Christians” and thus “obliged to stride senting Christ’s Passion, which is His true sacri- “is not a prize for the perfect but a powerful treated the general, who looked far forward in this matter courageously.” fice,” wrote the 13th-century theologian St. medicine and nourishment for the weak.” from heroic—a character in Tolstoy’s “War and Peace” notes the corpulent Kutuzov’s war scars, especially his “bleached eyeball.” But when the country needed a savior in 1812, Kutu- EXHIBIT zov, the “has-been,” drove Napoleon and his Grande Armée out of Russia. Winston Churchill had a similar apotheosis in World War II when he Minute Masters was in his 60s. Until then, his politi- cal career had been a catalog of fail- ures, the most famous being the Gal- lipoli Campaign of 1916 that left THE NEW BOOK “Watchmakers: The Masters Britain and its allies with more than of Art Horology” (ACC Art Books, $85) cele- 100,000 casualties. brates the art of timepieces, with examples As for writers and artists, they of- by 13 independent, contemporary crafts- ten find middle age extremely liber- men. Watches can have hundreds of ating. They cease being afraid to parts, such as the $99,000 De Bethune take risks in life. Another Fitzger- Skybridge (top right), designed by Denis ald—the Man Booker Prize-winning Flageollet—who made the color on the novelist Penelope—lived on the face deep blue, like a starry night, by brink of homelessness, struggling as setting a flame to blue titanium. Mr. a tutor and teacher (she later re- Flageollet (bottom right) comes from a called “the stuffy and inky boredom long line of watchmakers; his father, of the classroom”) until she pub- grandfather and great-grandfather were lished her first book at 58. all in the business. Watchmaker Kari Anna Mary Robertson Moses, bet- Voutilainen, originally from Finland and ter known as Grandma Moses, may now working in Switzer- be the greatest example of self-rein- land, created the Vingt-8 vention. After many decades of farm (left), a model that starts life, around age 75 she began a new at $72,000. career, becoming one of America’s Claudio Proietti, a watch best known folk painters. collector and curator of Max- Perhaps I’ll be inspired to master ima Gallery in Rome, who put Greek when I am 80, as some say together the book, wanted to es- the Roman statesman Cato the Elder pecially focus on the human touch. did. But what I’ve learned, while “I…like to think that behind my watch coming to terms with turning 50, is there has been a lot of human work and that time spent worrying about passion rather than a well-programmed “what you might have been” is bet- automated machine,” he says. ter passed with friends and family— —Alexandra Wolfe celebrating the here and now. CLOCKWISE FROM LEFT: GUY LUCAS DE PESLOUAN (2); DE BETHUNE For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

C6 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. REVIEW AUSTIN HARGRAVE FOR THE WALL STREET JOURNAL

WEEKEND CONFIDENTIAL writing that she and her second husband “ran through money as if it really did grow on trees,” splurging on two Mercedes convertibles, a Jeep, one of the last original-style Volkswagen Beetles, pricey original artwork and exotic animals. Chaka Khan Today, Ms. Khan has a new online series on You- Tube called “The KHAN Knows.” The show includes her talking about her career and life, conversations with friends and celebrities, and question-and-an- The voice of ‘Every Woman’ is back swer sessions with fans. “I’ve acquired a fair amount of life experience and I want to share with some of the younger people,” she says. BY RAY A. SMITH about 10. Music played a big role in her childhood, When she isn’t working, Ms. Khan says she is from singing on Saturdays while cleaning the “a real book fiend. I love the feel, the smell—I N A RECENT MONDAY afternoon at her Los Angeles house to performing for her mother’s friends at have a visceral connection with books.” She was home, Chaka Khan, the legendary rhythm and blues parties. In talent competitions, she earned the recently reading Rhys Bowen’s “The Tuscan Child” singer known for her iconic big voice, was fussing nickname “Little Aretha.” and was excited about a recent TV adaptation of Oover her just-as-iconic big hair. She ventured into Afrocentrism in her teens, Caleb Carr’s “The Alienist.” Ms. Khan has been “I started out with orange and stuff like that in the joining an African culture band called Shades of fond of saying “TV is my boyfriend” in recent ’80s and I’ve settled into this beautiful rich red,” she explains. “But Black and being christened “Chaka” by a West Af- years, adding that her bed is her husband. She de- now I can’t go anywhere and not see my red on somebody’s head! rican high priest. She joined the Black Panther clines to give any details about current relation- So now what do I do? I’m gonna do something different.” “ Party. She also immersed herself in the Chicago ships beyond noting that “things have changed As a child, The 10-time Grammy winner, who turned 65 in March, is embark- she earned music scene, singing in different bands and picking since then, and that’s all I will say.” ing on another new adventure this year as she releases her first the nick- up the last name she still uses from her brief first With her current album, the singer-songwriter solo studio album in 11 years. In June, she put out its first single, name Little marriage, to musician Hassan Khan. had to come around to today’s dance genre. “I’ve “Like Sugar,” a sensual, funk-tinged bop. “I play drums on it too,” Aretha in In 1972, she became the lead singer of a hot lo- done a few gigs where I have DJs and remixers she volunteers excitedly. talent com- cal rhythm and blues band then called Ask Rufus. open for me and I was wowed,” she says. “There The song’s chorus encourages listeners to “get up on your feet” petitions. A record producer caught their act, and pitched was a time when my thinking was old school. I and the album shares that vibe. “It’s the first time in my career I’ve the group to a friend at ABC/Dunhill Records, was jazz-oriented. I just was not open to it.” DJs ever purposely gone into a studio to make a dance-music album,” Ms. which offered the group a contract. The group be- today, she adds, “are making this music attractive Khan says. “I live in the real world and these kids want to dance, so came known as Rufus featuring Chaka Khan. to all age groups.” I wanted to give them something to dance to.” As her band’s star was on the rise, Ms. Khan Ms. Khan continues to perform live, on tours, People have been dancing to Ms. Khan’s music since she burst on struggled with drugs. Constantly on the road tour- in festivals and for specials world-wide. Her dis- the scene in the early 1970s, as the lead singer in the pioneering mul- ing, she left her infant daughter behind with her tinctive voice, which Miles Davis likened to his tiracial funk band Rufus. She gained a following for her impassioned mother in Chicago, she recounts in her 2003 auto- horn playing, remains in good shape: She sings vocals that soared into open-throated wails, her exuberant stage biography, “Chaka! Through The Fire.” She took songs like “I’m Every Woman” live in the same presence, and her sexpot-meets-hippie-chick style. drugs to numb guilt and anger she felt, she writes, key as the original. “It’s a gift God has granted The group’s hits included “Sweet Thing,” and the Grammy-winning and got high when she felt lonely, or doubted me,”shesays.“It’swhatIhavetogivefrommy single “Tell Me Something Good,” written for her by Stevie Wonder. whether men liked her for herself or her fame. heart. It’s a blessing.” Ms. Khan went on to record solo hits including the anthem “I’m Ev- A turning point came in the 1990s. While trying Still, after a bout with acid reflux, she has cut ery Woman” in 1978 and, in 1984, a lively cover of Prince’s “I Feel For to resist doing more drugs after a night of “binge down on touring to half as much as last year and You,” featuring Mr. Wonder on harmonica. The latter’s opening repe- drugging and drinking,” she writes, she thought now takes two nights off for every two nights she tition of “Chaka Khan, Chaka Khan,” a recording room slip-up pur- back to a time when she showed up high to an art sings. She credits good sleep with helping pre- posely left in by the producer, remains a pop-culture catchphrase. program for kids. The memory helped motivate her serve her voice. The singer-songwriter’s 22 albums span funk, soul, pop, rock and to enter rehab. She knows that there are some songs her fans al- jazz. She has worked with such luminaries as Miles Davis, Dizzy Gilles- In 2016, shortly after the death of Prince, who ways want to hear. “I have to perform ‘I’m Every pie, Quincy Jones, Ashford & Simpson, Babyface and Chick Corea. had become a good friend, Ms. Khan again entered Woman’ and ‘Ain’t Nobody,’ ” she says. If there’s a Born Yvette Marie Stevens in Great Lakes, Ill., in 1953, Ms. Khan rehab for addiction to prescription drugs. She was song she’s tired of performing, Ms. Khan wouldn’t grew up in a working-class neighborhood in Chicago. Her mother was back on the road a month after completing her say. “I still enjoy some of them, but it all makes up an administrator at a University of Chicago research center, and her treatment. for it when you see how much enjoyment the people father was a freelance photographer; they split when Ms. Khan was She has also recalled trouble with overspending, are getting out of it,” she says. “That’s everything.”

“For the love of Pete!” was a sense if you know who Adam As in, “That guy’s Jared-on- Our Tired perfectly acceptable variant is. If you didn’t cut your teeth the-spot.” Many other expres- of “For the love of Mike!” It in this culture, and are not up sions using names from by- Expressions might not be in common use to speed with the Good Book, gone eras can be lumped into in New York or Pennsylvania, it may throw you for a loop. the same general category. MOVING Need to my old stamping grounds. But I hate to see such colorful “Every Tom, Dick and Harry,” TARGETS it still cut the mustard in expressions fall by the way- going great guns in days of Turn Over Western Maryland. side, but this may be a case of yore, is now kaput. Something You could have knocked me having waited until the horse along the lines of “Every Jack- JOE New Leaves over with a feather, that has already left the barn. Call son, Ryan and Skyler” would QUEENAN someone so young was famil- me a stickler for detail, but ring truer today. iar with such a quaint but five’ll get you 10 that the For the same reason, We outmoded expression. I’m reason Old Paint high-tailed should also deep-six moldy- WHILE A BUNCH of us were bowled over when some it out of there in the first oldies like “He’s an average The sitting around playing a low- whippersnapper trots out re- place is because Katy—a Joe.” How about “Pour me a names rent board game last month, a purposed old nautical ex- ding-dong if there ever was cup of Joel, would ya?” Or used in 20-something exasperated by pressions like “Give him a one—forgot to bar the door. “What does Joel six-pack a string of bad luck suddenly wide berth” and “three sheets The long and the short of it is: think?” many old exclaimed, “Oh, for the love of to the wind” and “I’m not sure “For the love of Mike!” would This same rule applies to phrases Pete!” I like the cut of your jib.” For the love of Mike or Pete never have gotten sent to the song titles. It should be Mor- may “You mean ‘For the love of What really knocks my aside, when it comes to keep- sidelines if it had morphed ganwhogetseggedontorow Mike!’ or maybe ‘For Pete’s socks off is when a callow ing American expressions alive into something catchier and the boat ashore, not Michael, sound sake!’” the rest of us corrected youth mouths such time-tested and kicking, we’re hardly more up-to-date, like “For the who is as old as the hills. alien to her. But no, she insisted that expressions as “Mr. John Q. home free. One problem is love of Tyler” or “Oh, for Mad- Other possible upgrades in- back where she grew up in Public” or “Tell ’em Joe sent that the names used in the ison’s sake.” clude “Proud Maya,” “Sydney young Western Maryland, folks got you.” Actually, I haven’t heard pithy phrases belong to an Similarly, it seems weirdly is a Punk Rocker” and “Lexi in ears. ticked off for the love of Pete, asoulreferto“Mr.JohnQ. earlier, simpler time and may anachronistic to refer to men the Sky with Diamonds.” And not the love of Mike. Public” since 1974, when my sound alien to young people’s consorting with ladies of the no, I am not being coy here. We looked it up online, and, Uncle Charlie bought the farm. ears. “I wouldn’t know that night as “johns.” Today they Heavens to Betsy, no!

lo and behold, she was right. But you get the general idea. guy from Adam” only makes should be known as “Jareds.” Well, heavens to Bettina. NISHANT CHOKSI For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

What Is ‘Heredity’? ‘Their Kind of Person’: New genetic technology The Beatles’ press suggests we’re no longer agent, Derek Taylor, stuck with our genes C9 BOOKS remembers the ’60s C12 READ ONLINE AT WSJ.COM/BOOKSHELF THE WALL STREET JOURNAL. **** SATURDAY/SUNDAY, JUNE 30 - JULY 1, 2018 | C7 Masters of the Skies Armies and navies had decided battles for all human history, but World War I taught the primacy of air power RAF: The Birth of the World’s First Air Force By Richard Overy Norton, 150 pages, $22.95 The Imperial Aircraft Flotilla By Margaret Hall ibidem, 397 pages, $50 The Royal Flying Corps, the Western Front and the Control of the Air By James Pugh Routledge, 190 pages, $150

BY PAUL KENNEDY

ND THE DAY may not be far off when aerial operations, ‘A with their devasta- tion of enemy lands ...maybecometheprincipal opera- tions of war, to which the older forms of naval and military operations may become secondary and subordinate.” Thus read the famous sentence from the so-called Smuts Report of August 1917, which historians identify as having provided the operational justi- fication for an independent Royal Air Force in the following year, and indeed the intellectual and strategic basis for the future of air power itself. This was a true watershed in mili- tary history, although the cause in Britain was an immediate, urgent one. As Germany’s very frightening air- craft and zeppelins raided British

cities that summer, Lloyd George’s VIC FLINTHAM/ROYAL AIR FORCE government hastily summoned Jan HELP FROM ABOVE A pair of RAF pilots fly above Iraq in a Westland Wapiti, ca. 1930, from Michael Napier’s glossy photographic essay ’The Royal Air Force: A Centenary of Christiaan Smuts, an influential South Operations’ (Osprey, 339 pages, $40). The book traces the service from its World War I origins to the present. Besides celebrating technological wonders and forgotten heroes, the African general (and pal of Winston book brings home the fact that so many theaters of war—the Middle East, Afghanistan, Korea—not only recur but remain relevant today. Churchill) to assess both the immedi- ate and the larger implications of the in the French air campaign over the Smuts’s ideas, compelled Lloyd power had entered the British public vices in the First World War,” traces raids and to come up with policy rec- Western Front. There had even been George’s government to plump for a imagination, positively and negatively, the eccentric yet successful move- ommendations. The response, as the aerial fighting during the Russian and single, unified service, and then to set by 1919. Airplanes were now—well, a ment by British patriots to encourage broad-minded Smuts suggested, Italian campaigns. But these were it up (as many people noticed) on big thing. And their expansion, and countries, localities and individuals should not be limited to improving rather more in the form of forays and April Fools’ Day, 1918. the statistical record of aerial activi- throughout the Empire to pay for the homeland defenses against further at- improvisations. They were undertaken Growing swiftly month by month, ties within those few four years of production costs of a fighting air- tacks, necessary though those were. because the new technology had be- challenged by multiple calls upon its fighting, is simply staggering. When craft—and have the plane named after Within the space of a single decade, a come available, but were not guided by squadrons, riven by internal per- the RAF was set up in April 1918, it their very selves. Any plane that new form of warfare had emerged to an overall strategy. sonnel issues and resented by most consisted of 25,000 officers and crashed, or was shot down by the en- take its place alongside the struggles By contrast, the key players in the Army generals and all Navy admirals, 140,000 men (although only 8% actu- emy, contributors were assured, of armies and navies and, quite possi- emergence of the concept and prac- the fledgling service was still trying ally flew). By the time of the cease- would be replaced and renamed at no bly, to replace them. Nothing like this tice of independent air power were to establish itself when the war was fire, the new service possessed more extra charge. had occurred in all of history. the British. And this is in part why, suddenly over. The giant four-engine than 22,600 aircraft. Ms. Hall, who has worked as a civil One hundred years later, the reader during this centenary of the establish- Handley Page bombers, destined to servant in Britain’s Foreign Office, has still remains struck by the pace of ment of the Royal Air Force, several reduce German industry to rubble, chosen a slightly dotty story— change among air forces during books have been published exploring had scarcely been rolled onto the German zeppelins contributions came in from West Afri- World War I, and by the huge impli- different aspects of the story. tarmac when the Armistice was can tribal chiefs and the very richest cations this shift had throughout the Richard Overy’s slim book “RAF: declared. raining destruction Chinese Hong Kong bankers, and five 20th century and into the present The Birth of the World’s First Air So, among the many things that on Britain throughout planes were bought by British expats day. As the U.S. Air Force’s long-range Force” is the most important of these, the British government had to deal 1917 finally prompted in Argentina—but she narrates it with bombers cruise the skies over the although it is also somewhat less sig- with during the confused period be- a nice eye for detail. (In the West Af- western Pacific, and President Trump nificant than it might have been. Mr. tween 1918 and 1920 was whether this a strategic response. rican crown colony of the Gold Coast occasionally threatens Kim Jong Un’s Overy, a professor of history at Exeter young aerial organization should [Ghana], rival Ashanti chiefs each North Korea with heavy destruction University and the author of many remain independent, or be returned found it politic to cough up £1,000 to should it undertake any aggressive important historical works (“Why the to its two original parts, as jealous In light of those figures, the his- have an aircraft named after their dis- act, one can clearly trace the histori- Allies Won,” “The Dictators,” “The traditionalists in the Army and Navy tory of a publicly supported plan to trict!) Eccentric or not, this unique cal thread back to these beginnings of Battle of Britain”) has written this an- sought. The RAF survived, but only pay for more planes through indi- fundraising effort had funded slightly air power itself. niversary book at the behest of the just; Mr. Overy reports that, as late as vidual contributions seems incidental more than 600 aircraft by the end of When it come to the 1914-18 con- RAF Museum at Hendon, where he November 1919, Hugh Trenchard, the and rather slight. But the existence of the war. Never mind that the RAF was flict, Britain’s early air forces occupy chairs the research board. Using a service’s head, was pleading to Adm. such a scheme, from 1915 onward, losing that number every fortnight. center stage. (The Americans truly wealth of official and private sources, David Beatty for support against “the says a lot about the British public’s If “The Imperial Aircraft Flotilla” is enter the scene a bit later, with Billy he discusses how two separate opera- large number of Naval and Army offi- patriotic mood as well as the place of not about air power itself, the book Mitchell in the 1920s and the nascent tions—the Army’s Royal Flying Corps cers...whoconsider that the Air the empire in this war. Margaret remains an intriguing insight into the Army air force in the 1930s.) It is true and the Navy’s Royal Naval Air Ser- Force should be broken up.” Hall’s shrewd and wry book “The Im- manifestations (and manipulations) of that there had already been significant vice—developed in parallel in the The author’s account is fine on this perial Aircraft Flotilla,” which she British popular imperialism when the advances made through the German cauldron of war. Only the crisis of the institutional-political story, but thin subtitles “The Worldwide Fundraising Empire was at its height. deployment of zeppelin bombers and German air raids, and the power of on so much else, especially on how air Campaign for the British Flying Ser- PleaseturntopageC8

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C8 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. BOOKS

‘Treason doth never prosper: what’s the reason? / Why, if it prosper, none dare call it treason.’ —JOHN HARRINGTON The Royal Air FIVE BEST BOOKS ON TREASON Force & the Birth Joyce Lee Malcolm Of Air Power The author, most recently, of ‘The Tragedy of Benedict Arnold’

ContinuedfrompageC7 Whatever this public enthusiasm about the Turncoats, Traitors and intelligence desk—the source novelty and the seemingly endless possibili- Heroes: Espionage in the responsible, from the mid-1980s ties of airplanes, though, the fact remains that American Revolution to the early 1990s, for betraying throughout World War I the military and air By John Bakeless (1959) the identities of the agency’s force leaders struggled with the coldly prac- Soviet agents, dooming them. He tical tasks of creating a fighting air force to Fought in the villages and was able to operate untouched help win the conflict in France. These were farmlands of America, the for so long, the authors make not easy, as James Pugh shows in his study 1 Revolution offered clear, because the CIA refused to “The Royal Flying Corps, the Western Front numerous opportunities for believe that one of its own could and the Control of the Air, 1914-1918,” which espionage. A surprisingly clear be the culprit. It looked describes the painfully slow efforts of the record of clandestine behavior elsewhere, ignoring signs like his Army’s aerial service to gain command over survives, as is evident in John lavish spending and huge bank the Western Front. Since the Flying Corps was Bakeless’s history, packed with deposits. Stymied in its search, an organ of the British Army, it showed the lively accounts of the actors and the agency nonetheless refused same tendency as Gen. Douglas Haig’s ground their deeds. Shoemaker Enoch to collaborate with the FBI— forces did toward battering, frontal assaults, Crosby repeatedly joined loyalist helping Ames and his KBG whether in direct support of the infantry or in regiments, then slipped away to handlers escape detection dogfights over the trenches. Little wonder divulge all to the patriots; he was despite the surprisingly simple that so many planes (35,000 in all theaters) shot at by both sides but tradecraft they used. As the had been lost by the conflict’s end. survived to rejoin George authors write, Ames’s British air power could never be deployed Washington’s army. Continental “lamentable chronicle of as precisely as the generals in France army physician Benjamin Church mediocrity” didn’t prevent his wanted it to be, and thus the military treated wounded patriots, though being promoted. A fraudulent tip leadership there felt that they never had he was all the while working for from a KGB double agent further enough aircraft. There were also constant the British. Spies scribbled in sent the CIA on a wild goose calls for ever more squadrons to defend the invisible ink, devised codes, chase, leaving it up to FBI agents British homeland against German air raids. spread misinformation. to track down “one of the

In addition, as the war went on, there was a Washington drafted false plans to YALE UNIVERSITY ART GALLERY sloppiest, most brazen, and least rapid surge in aerial warfare against the be leaked to Tory spies. The most ONE LIFE ‘The Last Words of Nathan Hale’ (1858 or 1881) by F.O.C. Darley. savvy spies imaginable.” Turks and various tribal unrests across the compelling case of all is the Middle East and India. One might also heart-rendingly detailed one that Marshall, a staunch Federalist Union and the feeling of loyalty mention here the increasing need for anti- Bakeless tells of Nathan Hale, and Jefferson’s bitter opponent, and duty of an American citizen, This War Without an submarine patrols (that was the Royal Naval who spied for the patriots in heard the cases. Gen. James I have not been able to raise my Enemy: A History of the Air Service’s job), plus the schemes for the British-led territory and whose Wilkinson—chief witness, twice hand against my relatives, my English Civil Wars strategic long-range bombing of Germany. harsh treatment by his British ousted from the Army, a spy for children, my home.” Shaara By Richard Ollard (1976) In effect, almost all the components of the captors can still summon rage in Spain and Burr’s fellow plotter— renders Lee as tired and air-power story of World War II—apart a reader. altered key evidence to stubborn, an old man who Great issues were at stake from carrier warfare—were already being exonerate himself and damn needlessly sacrifices thousands of in England’s clash discussed and planned for when the conflict Burr. Mr. Newmyer delivers all “his boys.” Chosen to accept the between its proud, aloof The Treason Trial of 5 ended with the armistice of November 1918. the facts and motives in his Southern surrender at king, Charles I, and his Then the scissors-wielding economists at Aaron Burr superb unraveling of the case, Appomattox, Maine’s Joshua cankerous Parliament. Was it the Treasury moved in to decimate, if not By R. Kent Newmyer (2012) which ended with a jury verdict Chamberlain had his troops treason to oppose a monarch demolish, all military forces as swiftly as of not guilty. salute the defeated South. who threatened the rights and possible. R. Kent Newmyer deftly Believing “the issue” had been religion of his subjects? Or had Despite those cutbacks, and also the sets the stage for the settled by combat, “that God has Charles forfeited his right to relentless efforts by the generals and the 2 riveting confrontation The Killer Angels passed judgment,” Lee asked his obedience? As the country Admiralty to wipe it out, the new RAF hung between President By Michael Shaara (1974) men to lay down their arms. He slipped into war, his subjects on. It helped, as Mr. Overy shows, that the Thomas Jefferson, Chief Justice would later ask Congress for a either chose sides or remained exuberant Churchill, now Colonial Secretary, John Marshall and Aaron Burr. In his powerful retelling pardon for fighting against the passive out of well-justified fear. was mesmerized by the (erroneous) notion On Jan. 22, 1807, Jefferson of the Battle of Union. It was never given. Richard Ollard paints a vivid that a small number of aerial squadrons informed Congress that Burr, his 3 Gettysburg, Michael portrait of the times. In this could keep the peace across Jordan and former vice president and hated Shaara shifts from side to concise history, which addresses Mesopotamia. It also helped that King rival, best known for shooting side with vignettes of the Betrayal: The Story of both the constitutional and George V had the proud title of Chief of the Alexander Hamilton in a duel, combatants facing one another. Aldrich Ames, an religious problems involved, he Royal Air Force. Even so, the internal had plotted to create an We meet Lewis Armistead and American Spy brings to life the fate of people bureaucratic attacks continued until, at last, independent country in the Winfield Hancock, dear friends By Tim Weiner, David Johnston plunged into a “war without an in 1926, prime minister Stanley Baldwin had West. Assuming a prosecutorial and generals who wept before & Neil A. Lewis (1995) enemy.” Parliament’s supporters had enough: Defense of Britain and its realm, role, Jefferson elicited damaging leaving for their opposing armies. ultimately won, but, doubtful that he told the House of Commons, was to be testimony against Burr on the Each had been forced to decide Here is a damning tale of they could trust the king, they based upon “three co-equal services.” And so promise of pardons. He ordered where his loyalty lay—whether to treason that succeeded went further—to the shockingly it has been ever since. Burr tried for treason and for the Union or to the rebelling 4 largely thanks to unprecedented act of bringing organizing a military expedition states. At Gettysburg, they would bureaucratic ineptitude. Charles to trial for treason Mr. Kennedy is Dilworth Professor of History in Mexico and, when Burr was face each other as enemies. The reader knows from the start against his people, turning the at Yale University, and the author or editor acquitted of each, tried a third Robert E. Lee confided in a letter: that Aldrich Ames is the mole at traditional notion of treason on of 19 books, including “Engineers of Victory.” time for other alleged crimes. “With all my devotion to the the CIA’s Soviet counter- its head.

ancient coins. Freud used the city of killing of his brother Remus the arche- The City Rome as a metaphor for the human type of multiple acts of civil violence. mind, an accumulation of material The republican general Sulla, when his from all ages still in some sense acces- lucrative command was threatened by sible if we just refocus our gaze. political enemies, turned his army That Rome makes concrete our sense of around and marched on the city. Cori- a deeply layered past, but not one olanus in myth had nearly done the formed by gentle sedimentation. The same. Constantine seized the city from city’s geological stratigraphy has been his rivals after a battle at the Milvian Survived repeatedly convulsed, metamorphosed Bridge. A bitter rivalry between the under spectacular pressures. It is an papacy and the liberal state dominated accumulation of urban wreckage, some the history of the city from Italy’s uni- Rome put to new uses, the rest a sober re- fication in 1871 until the 1930s. What By Matthew Kneale minder that no city can become eter- Mussolini did to the medieval city to

Simon & Schuster, 417 pages, $30 nal except through constant demo- GETTY IMAGES make space for his grandiose trium- lition and reconstruction. DRAMA The remains of Pompey’s theater in Rome, Italy. phal Road of the Imperial Forums was BY GREG WOOLF In “Rome: A History in Seven Sack- a different kind of civil sack. ings,” Matthew Kneale, a British novel- My favorite was the vignette of Hein- of Rome’s hundreds of public baths: A powerful strand of this story is OME IS ONE of the ist whose works reveal a deep under- rich Himmler in Cosenza, deep in the “In Christian eyes water was for the sad story of the Jewish ghetto. oldest continually in- standing of the tangled human life of south of Italy, gathering local worthies drinking, not bathing, while it was Centuries of prejudice seemed to have habited cities in the cities, has had the good idea of writing at dawn in 1937 to witness his search certainly not for pleasure bathing, ended in the mid-19th century, and R world. Three thousand the biography of Rome not as a study for the grave of Alaric the Goth and which smacked of licentiousness.” Rome’s Jews supplied prime ministers, years or so of history in longevity but as a tale of disaster. the plunder from his fifth-century sack By the 16th century cardinals and generals and even leading fascists to take us down beneath the modern Disaster after disaster, in fact, as the of Rome: Himmler “began to lecture other antiquarians began to take an the newly united Italian state until the streets, past Mussolini’s imperial city, city faced invasions of Gauls and the Cosenzan officials on ways in interest in the sculpture that occa- ghastly consequences of Mussolini’s on through the capital of Risorgi- Goths, Byzantines and Normans, Cath- which the river might be diverted from sionally turned up in these plots of alliance with Hitler brought about mento Italy, past Baroque palazzos olic and Protestant armies in the wars its course so its bed could be drained.” land. That first harvest of classical their disaster. Rome has been fought and churches, through the castles of of religion, Napoleon and the Nazis, Most of Mr. Kneale’s story, however, is art would be largely pillaged by over by a hundred generations of its medieval militias, and on to the and somehow survived each trauma. staged within the walls of the city he Napoleonic armies, but as Rome re- inhabitants. Enemy invasions have Romes of Constantine, Trajan, Augus- The effect is rather like that of a biolo- evokes with casual brilliance. generated more of its past has resur- been an occasional distraction from tus, Caesar and their republican gist telling the story of life on earth in Perhaps inevitably, the most excit- faced in fields turned back into domestic violence. predecessors. Deepest of all is the terms of mass extinctions. The sacks of ing passages relate the sacks them- suburbs. Another story line tracks Yet Rome has survived, a beautiful archaic age, where mythology locates Rome were nowhere near as traumatic. selves, from motley barbarian armies public health and cleanliness, from jumbled collection of ruins and Romulus and Remus and their Trojan Before gunpowder it was not that easy appearing below the walls (several the spectacular public baths to the stories. Marx wrote that “the tradi- ancestor Aeneas, and archaeology for armies to do serious damage to times in fact) to the horror of Allied grim conditions of lower-class hous- tion of all dead generations weighs finds clusters of wooden huts on hill- cities built of stone and brick, but in- bombing raids on a city that had no ing in the 20th century’s interwar like a nightmare on the brains of the tops around the boggy forum. vaders could steal treasures, commit adequate air force or antiaircraft artil- years. This is not a tale of decline and living.” Romans today seem to enjoy Notoriously the modern city pre- rape and murder, terrify residents and lery to defend it. The fall of Mussolini fall so much as a slow roller-coaster an altogether more tranquil relation- serves traces of nearly all these generally make them doubt the power is a splendid read. ride through the fortunes of a place ship with their past, somehow making ancient Romes, often incongruously of their gods or god. There are many other gripping vi- deeply entangled in its past. antiquities part of the furniture of a juxtaposed. An ATM pokes out of a The sacks of Rome provide punctu- gnettes. The cutting off of the aque- Seven sackings is, as Mr. Kneale civilized life lived largely outdoors. At wall right next to the columns of an ation marks in a long story. Typically ducts in the sixth century during the frankly admits, an arbitrary total. least by day, it is now difficult for the ancient temple opposite a Baroque Mr. Kneale uses an impending disaster Gothic Wars meant that the carrying Arguably Rome has been sacked on visitor to conjure up many ghosts. Mr. church. A trattoria shelters in the sub- to grab our attention, then surveys capacity of the city was dramatically many more occasions. His story is of Kneale’s achievement is to remind us structures of Pompey’s theater. Chris- how Rome had fared since the last reduced. For generations Romans constant external threats and repeated of the past upheavals that lie only a tian basilicas cannibalize the column crisis, before concluding each chapter lived in a largely abandoned city. recoveries. An alternative narrative few inches beneath the cobbled capitals from pagan temples; gardens with a racy narrative of the sack and Areas that had been densely popu- might have explored the violence that streets of the eternal city. planted in the 16th century spread its immediate aftermath. Now and lated became part of the disabitato, Romans did to their own city, and each among the ruins of imperial palaces. then he interrupts the narrative with a areas of vineyards and gardens within other, over the millennia. That was a Mr. Woolf, the director of the The manhole covers in the streets time traveler’s sidelong view or whisks the ancient wall circuit. The loss of theme that would have appealed to the Institute of Classical Studies at the read SPQR, a Latin abbreviation for us away to some distant place touched the aqueducts and changing mores, historians and poets of classical Rome University of London, is the author “Senate and People of Rome,” echoing by the successive tragedies of Rome. Mr. Kneale notes, also meant the end who found in the story of Romulus’s of “Rome: An Empire’s Story.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | C9 BOOKS

‘I am the family face; / Flesh perishes, I live on, / Projecting trait and trace / Through time to times anon . . .’ —THOMAS HARDY An Examination Of the Life Worth Living

The Darker the Night, the Brighter the Stars By Paul Broks Crown, 319 pages, $27

BY EMILY BOBROW

’LL TELL YOU something,” Paul Broks’s wife, Kate, said to him on her deathbed, as an oxygen ‘I machine sighed in the background. “You don’t know how precious life is. You think you do, but you don’t.” Theirs was a loving marriage, and they strove to drink up as much life together as possible before she died of cancer in her late 50s. But for Mr. Broks, his wife’s pointed words left a mark. Did he, in fact, understand the value of life? What, he wondered, does it mean to live well? These are just some of the heady questions swirling around “The Darker the Night, the Brighter the Stars,” Mr. Broks’s dazzling book about life, death and the profound mysteries of consciousness. Trained as a neuro- psychologist, the author studied the relationship between the brain—the “1,200 cubic centimeters of gloop that fills our skulls”—and the mind, that repository of subjective thoughts, feelings and sensations that gives rise to our sense of self in the world. But his explorations have yielded few clear answers. Is there, he asks, such thing as a “self,” or what some might call a soul? Are we, as René Descartes suggested, physical machines guided by a nonmaterial spirit? Or is the very concept of a soul an adaptive illusion that humans have evolved so that we see individual life as something precious and CIRCLE OF LIFE Genome map worth preserving? comparing humans (outer ring) with, from It is a credit to Mr. Broks’s considerable inner ring outward, chimpanzees, mice, rats, gifts as a writer that readers will willingly dogs, chickens and zebrafish. And below: a follow him in and out of these rabbit holes. He tray containing part of the human genome. is a trustworthy guide, as adept at evoking the nuances of grief as he is at explaining the findings of brain scans or the views of the philosopher Arthur Schopenhauer, who saw Biology’s Strange New World life as a sliver of consciousness between slabs of eternal nothingness. “My heart rebels against it,” Mr. Broks writes of Schopen- She Has Her Mother’s parts customized for your body. It Nature invented us, too. And our teria pass themselves down by hauer’s bleak theory, “but better to confront a Laugh also creates new ways of making bodies are full of perversions. You migrating to eggs. In other species, harsh truth than swallow a consoling lie.” By Carl Zimmer babies. By returning skin cells to probably think that all your cells including ours, bacteria have Such discursiveness makes this often poetic the embryonic stage, we can con- have the same DNA. They don’t. become mitochondria, the micro- book difficult to classify, as it blends fact and Dutton, 656 pages, $30 vert them to eggs or sperm. This Like other animals, we acquire organs that power our cells. Mito- fiction, philosophy and psychology, mythology BY WILLIAM SALETAN means that fertility doctors won’t mutations that show up in some chondria have their own genes, and and memoir. Stories of vengeful gods stewing have to harvest your eggs, much cells but not in others. We notice they replicate in us each time our in Hades sit beside essays dedicated to the MAN LOVES a less clone you. They can generate this in obvious cases, such as cells replicate. In essence, says Mr. struggle to define consciousness. Mr. Broks woman, a sperm hundreds of embryos, each with a cancer or multicolored skin. But Zimmer, they’ve “merged into our suggests that readers feel free to skip and meets an egg, and a different combination of your internal mutations are pervasive. In heredity.” roam among the chapters, which defy A baby begins. Her genes, and let you choose. Two an embryo’s first few days, Mr. Not all mergers are benign. chronology and are often as short and DNA unfolds in a men can make a baby. Four people Zimmer reports, “over half of its Some are horror stories. In clams, impressionistic as vignettes. But he writes perfect symphony, forming a can pair up, create two embryos cells end up with the wrong num- there’s a cancer that spreads with such clarity and sensitivity that it is hard unique individual. Germs attack, and combine gametes from those ber of chromosomes.” through expulsion in water. In to imagine anything haphazard in the way he but her cells unite to repel them. embryos to make a baby that has We’re designed to overcome Tasmanian devils, there’s one that arranged the book, which offers a meaningful The earth grows food for her. four parents. these errors, but some of the errors spreads through facial bites. In journey when read straight through. That’s the story we tell children, Another breakthrough is gene persist. One study found that in dogs, there’s one that spreads The relationship between brain, mind and and, basically, we believe it. Bad editing. Through a process called people who had died of something through sex. These cancers, in Mr. self is a confusing one, which Mr. Broks things happen—aging, disease, Crispr, which tags DNA segments other than liver disease, one-quar- Zimmer’s words, gain “immortality illustrates with anecdotes about neurological death—but everything follows the for deletion, we’re learning how to ter to one-half of their liver cells by sending forth their tumors to patients who “inhabit the twilight zones of laws of nature. program cells to make specific had the wrong number of chromo- burrow into new hosts for thou- the mind.” One woman in her early 40s It’s a nice story, but it’s not changes to their genomes. We’re somes. A study of 247 women sands of years.” Along the way, experienced a sudden case of amnesia; when quite true. Nature’s laws are vio- also learning how to program or- found that each subject had about they acquire advantageous muta- her father died a few months later, she didn’t lated all the time, and the cardinal ganisms to pass down these editing 160 mutations in her immune cells. tions. Eight contagious cancers know him well enough to cry. Jeff, once a violator is nature itself. This is the instructions to their progeny. You may also think that you’re have been identified in the world loving father and husband, became paradox that Carl Zimmer ex- Experiments have shown that this just one person. But are you? Mr. so far, and the number is expected unrecognizably angry and abusive after a plores in “She Has Her Mother’s technology could, at some point, Zimmer describes a girl created to rise. “After all,” says Mr. Zim- nasty car crash; his wife continued to dote Laugh: The Powers, Perversions, cure hereditary diseases such as by fused embryos. He tells the mer, referring to the leukemia cells on him, guided by the belief that “deep and Potential of Heredity.” Mr. cystic fibrosis. In addition, that float among clams, “now down, at the magical, essential core we all Zimmer, a New York Times science scientists think it could wipe we know they can swim.” imagine inside others and ourselves, it is columnist and author, is careful out destructive rodents and It’s a wonder that such really Jeff.” But who are we without our malaria-carrying mosquitoes. monsters haven’t conquered memories, personality or a continuous But self-proliferating genetic the planet. But it’s also heart- identity? What do malfunctions in the brain Acquired traits can be software—what experts call a ening. Maybe nature is strong do to our sense of self? “mutagenic chain reaction”— enough to withstand its per- Mr. Broks has an admirable willingness to inherited. Biological carries the risk of runaway verts. Viruses, gene drives hover in a realm of uncertainty. As an atheist time can turn unintended consequences. and contagious cancers have who has spent decades immersed in the backward. And In the face of such technol- been around for eons. Some rationalism of clinical neuroscience, he claims ogies, it’s sensible to worry species evolved to endure or not to believe in immaterial souls or an monsters are real. about tampering with nature. defeat them. Other species afterlife. Yet he admits to a moment, upon

But we’ve been tampering for SCIENCE SOURCE (2) died out, taking their killers discovering his wife’s long-lost wedding ring, a long time. Carrots, tomatoes with them. when he wondered whether Kate was trying and well-informed. So when he and horses are the distorted prod- story of a woman who got her We’re just another pervert. A to contact him from beyond the grave. There says that research is overturning ucts of breeding. Corn is a perver- white blood cells from the dead smart one, but a copycat. We study are times, it seems, when “you simply can’t things you were taught in biology sion of what used to be a weed. brother with whom she had viruses to learn how to hack cells. help but read something magical, something classes, he’s worth heeding. Ac- We’ve modified ourselves, too. By shared a womb. Another woman We study bacteria to learn how to supernatural, into a coincidence.” He quired traits can be inherited. Bio- cultivating cheese, we have favored hadanabortiononlytofindthat edit chromosomes. We study gene empathizes with Carl Sagan’s irrational logical time can turn backward. the spread of human genes for DNA related to her boyfriend drives to understand how to rig yearning to communicate with his dead And monsters are real. lactose tolerance. Through medi- had—presumably through the organisms to pass down the traits parents, his desire to believe that something When we hear about perver- cine and prosperity, we’re thwart- fetus—populated an entire lobe of we want. Maybe we’ll learn to do of them still exists. “He knew, and I accept, sions of heredity, we tend to think ing natural selection. Genes that her liver. And in low doses, DNA these things more powerfully than that nothing remains, and yet the sense that of sensational genetic achieve- would have killed people long ago, exchanges are normal. In 21% of our predecessors did. But nature something does never goes away.” ments. Mr. Zimmer tells some of Mr. Zimmer notes, “are accumulat- fraternal triplet pregnancies, each has seen such tricks before. If death yields eternal nothingness, then it those stories: a cloned sheep, a ing in our DNA as we find more kid gets some of the others’ DNA. Mr. Zimmer ends the book with is all the more important to live well. For frog made from an intestinal cell, ways to shield ourselves from Roughly 42% of children end up a story: Scientists have pro- guidance, Mr. Broks consults the Stoics, who X-ray machines hauled into corn- suffering and death.” with cells from their mothers. grammed mosquitoes to pass down understood that time is life’s most precious fields to induce mutations. He men- All of these “perversions” are Most moms get cells from their genetic software. The software commodity. Seneca observed that too many tions bizarre legal cases: a wife man-made, and, like all deviants, fetuses. In a study of women who makes the mosquitoes’ descen- people live wastefully, as if they were destined who used her dead husband’s we prefer to think that our perver- had died while they were pregnant dants edit their own DNA to to live forever, when they should be sperm to get pregnant; parents sions are original. But they’re not. with sons or died within a month of spread a gene. The gene inhibits appreciating the present. Mr. Broks who harvested their dead daugh- Nature is far more twisted. It has giving birth, each had brain and malaria. It’s a clever, multi-layered recommended that his wife read the Stoics, to ter’s eggs to make grandchildren. invented viruses, which replicate lung tissue made from her son’s scheme, but it’s running into a which she responded with “a weary smile.” The bigger breakthroughs are themselves by using the contents DNA. An analysis of women who problem. Apparently, a chromo- This was a woman, after all, who did not need more fundamental. One is the de- of other organisms. It has invented had died in their 70s found that 63% somal repair program deep in to consult Marcus Aurelius to know that “the velopment of induced pluripotent corals and sponges, which release had Y chromosomes in some of mosquito DNA is counter-editing last dregs” of life “were to be savored.” Even stem cells. By adding four proteins parts of themselves to float away their brain cells. what the scientists have done. on the brink of death, with her lungs failing to adult cells, scientists have and become new bodies. It has Did I mention that you’re part Nature wins again. and her legs and hips swollen with learned how to make them embry- invented certain genes, known as microbe? We rely on bacteria that lymphedema, she was already determined to onic—“turning back developmental gene drives, that hijack procreation live in us and have evolved with us. Mr. Saletan is Slate’s national have one last swim in the sea. time,” as Mr. Zimmer puts it. This even in higher animals—producing Within families, we inherit similar correspondent and the author of is a big step toward regenerative toxins, for example, that kill sperm bacteria as surely as we inherit “Bearing Right: How Conserva- Ms. Bobrow, a former editor for the medicine, which can grow spare carrying alternative genes. similar genes. In some species, bac- tives Won the Abortion War.” Economist, is a journalist based in New York. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

C10 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. BOOKS

‘People see everything through the lens of their obsessions.’ —FRANCINE PROSE Essential Reading...andLess

What to Read and Why most deeply. These essays on their story “Goodbye, My Brother,” one of By Francine Prose own make the book worth reading Ms. Prose’s favorite pieces of fiction to Harper, 314 pages, $23.99 and buying; they made me buy a teach (and mine too) because of the couple of the books she most pas- engrossing challenge in puzzling out BY BROOKE ALLEN sionately endorses. just what the pathologically repressed George Gissing’s “New Grub narrator is trying so hard to conceal. HE TITLE of Francine Street,” for example, that marvelous Ms. Prose’s favorite writer, I am Prose’s new essay fictional exposé of London literary guessing, is Mavis Gallant, the collection is a bit dis- life in the 1880s: “Even as the novel prolific Canadian author of novels, T honest. Or let’s say, per- chills us with its still recognizable plays and, above all, magnificent haps, that it doesn’t portrayal of the crass and vulgar short stories. When she writes of quite constitute truth in advertising. world of literary endeavor, its very Gallant it is clearly from true love When I picked up the book I optimis- existence provides eloquent, encour- rather than dutiful admiration. “Line tically assumed that it would be Ms. aging proof of the fact that a power- by line, word by word, no one writes Prose’s personal manifesto: a simple ful, honest writer can transcend the more compactly, more densely, with account of which books she loves constraints of commerce, can speak more compression. Great short most, and why. But soon enough it louder than the clamor of the stories are sometimes said to be as proved to be just another critic’s marketplace.” The milieu Gissing rich as novels. Gallant’s are like collection of previously published wrote about, as Ms. Prose cleverly encyclopedias—of her characters’ articles, reviews, and introductions to illustrates in her essay, is still with psyches and lives.” Gallant, who reprints of classics, yoked together in us, more or less unchanged; so is the died in 2014, was indeed a writer’s a slightly artificial manner for pub- greed-driven universe of Balzac’s writer, and no doubt Ms. Prose’s lication in book form. For a careful “Cousin Bette.” But the way readers experiences as a teacher have made critic (who is, by definition, poorly interact with such fiction has her doubly appreciative of the paid) wastes nothing. changed, a fact of which Ms. Prose, economy with which Gallant who teaches literature at Bard Col- achieves her sharp effects. “She lege and elsewhere, is well aware. builds her fictions with moments When passionate about Contemporary readers, as she points and incidents so revealing and reso- a book, Francine Prose out, seem to think it’s the author’s nant that another writer might have duty to provide “relatable” charac- made each one a separate story.... can be an exciting critic. ters and to uphold appropriate stan- Her trademarks: the specificity, the In her latest collection dards of social justice—Ms. Prose’s density of detail and incident, the graduate students “were offended by control of language and tone, and of essays, alas, she is . . . an author who tacitly condoned her gift for creating a deceptively passionate too seldom. a hero who would deceive an op- comfortable distance between the pressed female sex worker.” Hence characters and the reader, then the onus heaped upon the late, indu- suddenly and without warning Being myself the author of a bitably great Philip Roth by many narrowing that distance...”Afar couple of such tomes, I can’t censure Gen X and Y readers, who brand him cry from Roberto Bolaño, whom Ms. the practice, but this one’s “through- with “toxic masculinity”—one of the Prose praises in a less convincing line” struck me as particularly arbi- current deadly sins. Balzac, as Ms. manner, with his “encyclopedic trary. Had Ms. Prose started from Prose points out, also shows us— impulse, a drive to include every- scratch and produced a volume “us” meaning not just men but thing that can be known about a about what she really thought we women, too—exactly who and what subject, as proof that nothing can should read and why, surely it would we are, in less-than-flattering colors: ultimately be known about that sub- prove rather different. And, in fact, ject, if that subject happens to be she has already produced such a list, So much of what Balzac tells us the mystery of evil.” in her 2006 collection “Reading Like has by now become much more There are enough heartfelt pieces a Writer.” Some of the authors on difficult, indeed practically impos- in “What to Read and Why” to make that list of favorites reappear in sible (or impermissible), for us to it worth perusing, and most of Ms. “What to Read and Why”—Babel, admit to ourselves, or to say: the Prose’s readers will be lucky enough Dickens, Balzac, Nabokov, Austen, fact that the poor and the ugly to discover a new favorite in its

Alice Munro, Mavis Gallant, Edward might envy the beautiful and the GETTY IMAGES pages or rediscover an old one. And, St. Aubyn—but by no means all. rich, that our craving for sex and TOP SHELF ‘The Bookworm’ (ca. 1850) by Carl Spitzweg. of course, that in itself is the best Other pieces in “What to Read and money is so powerful and so anar- reason to read a collection like this Why” seem to have been included as chic that it can defeat, with hardly still read here at all. It made me want sets a character outside the parame- one. But I couldn’t help wishing that one might throw odd scraps into a a struggle, our better instincts to immediately pick up “Cousin ters of ‘normal’ or ‘ordinary’—or what Ms. Prose had stuck to the mandate stew. Why else would reviews of and good judgment. Balzac, who Bette,” which I have not read since we’ve agreed to call normal and ordi- of her title—had trimmed the fat, ex- books of Diane Arbus and Helen knew about all these things from college. Vive Balzac! nary—interior chatter.” Nevertheless, cluded the authors who meant less Levitt photographs be incorporated? personal experience, continues to Subtlety and ambiguity rather than she goes on, “it’s a different sort of to her, and focused exclusively on Ms. Prose writes pleasantly if not remind us...whatwehumans moral certainty are what make much challenge to find the language in her true favorites and what makes very excitingly about icons like are capable of—that is to say, great art great, a fact Ms. Prose which to portray the interior life of a them so essential. Louisa May Alcott, George Eliot, what we are. confirms repeatedly. Writing of character who is even better trained Jane Austen, her tone that of a contemporary authors like Denis than we are to monitor and control Ms. Allen teaches literature at chatty, approachable educator. But This message is so inimical to 21st- Johnson, Michael Jeffrey Lee and the fragments of self that break loose Bennington College. Her literary her writing sharpens, focuses and century idealism that one wonders George Saunders, she notes the “kind and rise to the surface.” A perfect essays and reviews are collected in occasionally even thrills when she whether Balzac will continue to be of freedom and exhilaration involved example of such a character is the “Twentieth-Century Attitudes” and writes of the authors who move her read in this country, insofar as he is in finding the language that so clearly narrator of John Cheever’s tricky “Artistic License.”

The Ungraspable ‘Miracle’ of Machado de Assis

PERHAPS THE MOST hopeful fingered, open-ended realism staring into space.” What religion centered on sin. (It’s Ciccio, a teenager in the 1960s, book to appear in 2018 is “The of Chekhov or Turgenev. Faced emerges is a subtle and successful but the Devil is finds a letter hidden inside the Collected Stories of Machado with such diversity, critics tenderly comic portrait of a enraged that people keep family copy of “The Golden de Assis” (930 pages, $35),an have tended to throw up their childlike woman who thinks backsliding into virtue.) Bough” that suggests that his enormous, gorgeously designed hands. Both Mr. Bloom and the she is running her household A streak of morbidity comes father sired a child while living story omnibus from the eternal Mexican novelist Carlos but in fact is being carefully to the fore, striking for its in Berlin in the 1930s. Ciccio’s optimists at Liveright Fuentes call Machado a managed by everybody in it. juxtaposition with Machado’s father, an eccentric who Publishing. Joaquim Maria “miracle,” as though only From the same period decorous prose. “Final spends his days entombed Machado de Assis (1839-1908), providence can explain him comes “The Alienist,” one of Chapter” is the suicide note of inside “the largest private FICTION a mixed-race grandson of and submission before the Machado’s masterpieces. a man who, chivalrous to the library in São Paulo,” is slaves, is considered by almost inexplicable is required to end, wants to ensure that impervious to questioning, so SAM SACKS unanimous opinion to be the appreciate him. THIS WEEK'S BOOKS someone else enjoys his Ciccio’s search for this long- greatest writer in Brazil’s Of course, as this collection leather boots. In “Posthumous lost half-brother becomes a history. His books, particularly shows, even miracles have The Collected Stories of Picture Gallery,” a man who lifelong obsession, bringing the proto-Modernist novels growing pains. Machado’s Machado de Assis hopes to publish the journals him into contact with Brazil’s “The Posthumous Memoirs of stories before 1881—or the Translated by Margaret Jull of a deceased, highly sprawling community of Brás Cubas” and “Dom first third of the book—are Costa & Robin Patterson respected elder statesman is German expats and Casmurro,” have enjoyed a largely undistinguished tales shocked to find it filled with summoning the manifold The rich, succession of translations, of courtship and marriage My German Brother insulting, and mercilessly horrors of the war years. varied, each adorned by lavish involving Rio de Janeiro’s By Chico Buarque perceptive, sketches of his Meanwhile, Brazil is gener- encomia from a murderer’s landed gentry. Flashes of friends and himself. ating its own horrors. Ciccio’s ironic row of critics, Susan Sontag, brilliance stand out—don’t “You must never use full brother, Mimmo, a louche short Philip Roth and Harold Bloom skip “Luís Duarte’s Wedding,” Framed as a straight-faced irony—that mysterious little ladies’ man but hardly a fiction of chief among them. Yet he a boisterously satirical tableau historical chronicle, it tells of a at the corner of the dissident, falls in with the remains something of an open of an aristocratic Rio wedding Brazilian psychiatrist who mouth,” a father counsels his wrong crowd and is “disap- Brazil’s secret, seemingly destined to party—but mostly the love founds the region’s first insane son in the supremely ironic peared” by the military greatest occupy a mysterious blind spot stories feel dated. asylum and then begins locking “How to Be a Bigwig.” That government. The twin absences writer. in the consciousness of Machado was epileptic and up everyone he encounters. His little twitch—Machado’s Mona blend together, forming a void American readers. some have speculated that a reign of terror is brought to an Lisa smile—is the hallmark of that Ciccio fills with books, The new volume, the first in health scare when he was end only when he concludes this watershed collection and music, women and increasingly English to bring together all around 40 provoked the sea that “mental disequilibrium” is the source of its inexhaustible lunging efforts to discover the seven of Machado’s story change in his style. Whatever the natural state of humanity. interest and puzzlement. fates of his missing siblings. He collections, illustrates both the the case, the sublime “Dona As the city’s lone sane man, he Brazil’s vexed family ties even contemplates hiring a refined pleasures and the Benedita” gives a sense of the lets his patients go and with Europe provide the shaman to inspect the house somewhat ungraspable nature deeper currents he had commits himself. subject of Chico Buarque’s for poltergeists: “I repeat that I of his art. Given a fresh entered. On the surface, this is Madness becomes the new latest book, “My German have never believed in witches, translation by the accom- another tale of upper-class normal in Machado’s tales, Brother” (Farrar, Straus & but, as Sancho Panza and plished duo of Margaret Jull matchmaking. But the focus which start to invert and Giroux, 199 pages, $25), trans- everyone knows, there’s no Costa and Robin Patterson, has shifted to the character of parody, rather than simply lated with great flair by Alison denying they’re real.” these 76 stories move among a the scatterbrained matriarch, imitate, European storytelling Entrekin. Mr. Buarque is a Late in “My German bewildering range of and amid the bustle of dressing conventions. The Western legendary samba singer, but Brother” Ciccio identifies W.G. traditions. Some validate and socializing Machado cap- canon is his playground. “In he’s the genuine article as a Sebald’s “Austerlitz” as the Machado’s reputation as a tures moments of illuminating the Ark” produces “unpub- novelist as well. I loved “Spilt for his account, and missing link in the lineage of forgetfulness: “Dona Benedita lished” Bible chapters that Milk” (2009), which recounted here too Mr. Buarque combines comic experimentalists turned [a] slipper over and show Noah’s sons in a violent the decline and fall of a once- documentary records with running from Laurence Sterne over, passing it from one hand property dispute mere minutes mighty Brazilian clan through imaginative leaps into the unlit to John Barth. Others fore- to the other, lovingly at first, after the Lord has cleansed the meandering monologue of recesses of history. Just as shadow the metafictional then mechanically, until her wickedness from the Earth. a sardonic centenarian. ghosts mingle with their techniques that Jorge Luis hands stopped moving com- “The Devil’s Church” is a “My German Brother” has survivors, fact bleeds into Borges would immortalize. Still pletely, and the slipper fell into scathing parable about the the same energy, wit and feel fiction to create a book of others display the light- her lap, and Dona Benedita sat Devil’s efforts to found a for the past. It begins when potent emotional force. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. **** Saturday/Sunday, June 30 - July 1, 2018 | C11 BOOKS

‘When I write, I make my memories tangible, and in this way I can get rid of them.’ —JORGE SEMPRÚN

SCIENCE FICTION A Man of Many Lives TOM SHIPPEY

Exile, Writer, Soldier, Spy Despite thousands of people dying A Fantasy Novel By Soledad Fox Maura there, no gas chambers were ever Arcade, 299 pages, $25.99 built on the site. Semprún also writes lyrically about the sig- Destined BY TOBIAS GREY nificance of the sign above the Buchenwald entrance gates. The S A SUBJECT for bi- only problem: The sign he de- To Be a Classic ography, Jorge Sem- scribes, with the motto “Arbeit prún is as hard to pin Macht Frei” (Work Sets You Free), A down as the Scarlet was used at Auschwitz and else- WORLDS WHERE magic Pimpernel. He was a where but not at Buchenwald. works have been a common man of many facets: a Spanish In one of the novel’s most theme in sci-fi ever since Republican, a Resistance fighter in moving scenes, Semprún, who was Robert Heinlein wrote occupied France, a Buchenwald not Jewish, recalls a Jew singing “Magic, Inc.” in 1940. What survivor, a Communist undercover the Kaddish in Yiddish. Ms. Fox Hannu Rajaniemi has given agent in Franco-era Spain, a gar- Maura notes that this was yet an- us in “Summerland” (Tor, landed author, an Oscar-nominated other example of “poetic license,” 302 pages, $25.99) is a world screenwriter (“The War Is Over” as the Kaddish was habitually re- where Spiritualism works— and “Z”) and a Spanish culture cited in Aramaic. Far more damn- the whole nine yards, ecto- minister. One can only sympathize ing was Semprún’s depiction of Ilse plasm, spirit mediums and all. The difference with author Soledad Fox Maura for Koch, the sadistic wife of Buchen- is that its odd and uncertain phenomena have wondering whether she was going wald’s commandant Karl-Otto been codified and turned into science by a to “spend the rest of [her] life writ- Koch, whom he luridly imagines consortium of the radio scientists Oliver ing this book.” collecting the tattooed skins of Lodge and Guglielmo Marconi, and Eusapia Ms. Fox Maura, a professor of inked inmates to cover the lamp- Palladino, a famous medium. Spanish and literature at Williams shades of her living room. Not only It’s the 1930s, and Britain has a National

College, has been teaching Sem- GETTY IMAGES was Ilse Koch gone by the time Death Service, not a National Health Service. prún’s work for over 15 years. She is MULTI-FACETED Jorge Semprún in 1998. Semprún arrived in Buchenwald, For those who have a Ticket, death is no distantly related to her subject, who but the scene is pure kitsch. longer to be feared. You can hold your died in 2011, age 87. It is debatable they led there did not preclude chenwald books, including “The None of this escaped the atten- mother’s hand as she dies, and 10 minutes whether this first English-language Semprún’s attending one of Paris’s Long Voyage” (1963), “What a Beau- tion of the Hungarian Nobel laure- later get a call from her on the ectophone biography, which grapples daunt- elite high schools. It was at the tiful Sunday!” (1980) and the best- ate Imre Kertész, a fellow Holo- from the Other Side, from Summerland. lessly with Semprún’s “poetic lycée that he mastered French, the selling “Literature or Life” (1994), caust survivor who criticized No more fear, grief, bereavement! What license” as a memoiristic writer, will language in which he would write will have wondered whether these Semprún for choosing “the wrong could go wrong? Well, a loss of authority for awaken American interest in an au- most of his books. are works of testimony or if they technique, narrating only the most the Church, which has led to a socialist thor whose fame was, and still is, In 1940, while Semprún was contain elements of fiction. spectacular of events and mangling utopia in Spain and an immediate backlash far greater in Europe. studying for the baccalauréat, the From her years of research, Ms. temporality in the process.” While from a certain Gen. Franco. Just as in our “What was exceptional about Germans occupied Paris. This led Fox Maura is convinced of the there is no doubt that Semprún world, Britain and the Soviet Union are Semprún’s life is not that it co- him to join the communist French latter: “Semprún has been misclas- was a deeply cultivated writer, one fighting a proxy war in Spain—and, just as in incided with so many of the his- Resistance group Jean-Marie Action, sified as a testimonial author, when has to wonder at his motivations. our world, the British war effort is hampered torical convulsions that defined his for which he collected arms dropped what he in fact writes is a sophisti- His champions celebrate him for by Communist traitors. era,” writes Ms. Fox Maura, “but by parachute at night. According to cated autobiographical fiction most having kept the flame of Holocaust Mr. Rajaniemi’s heroine is trying to un- that he involved himself so assid- Semprún’s later boss Felipe akin to the picaresque.” It is not as memory alive in both his literature mask them, but she is fighting a war on two uously in all of them.” To begin González, who was Spain’s longest- though Semprún made a secret of and his numerous public pro- fronts, in the Winter Court of London, and with, Semprún grew up in the lap of serving prime minister (from 1982 his technique. He himself said that nouncements. But there is some- the Summer Court on the Other Side, neither Spanish luxury. His maternal grand- to 1996): “The sole reason” that “the only way to make horror palpa- thing jarring about how Semprún of them to be father, Antonio Maura (1853- 1925), Semprún joined the Communist ble is to construct a fictional body frames himself in his work. “His THIS WEEK'S BOOKS trusted. The end was a five-time Spanish prime Party was because it was “the most of work.” But what he does not pro- camp narratives, in general, avoid of death, more- minister whose political reforms committed group willing to fight in vide his readers with is any kind of any kind of self-portrayal as a vic- Summerland over, has led to helped to entrench the country’s the Resistance movement.” road map demarking where testi- tim,” Ms. Fox Maura writes. “On By Hannu Rajaniemi fears beyond constitutional monarchy. Semprún’s work for the Resis- mony ends and fiction begins. the contrary, he retains an unusu- death. Those Semprún’s privileged childhood tance ended when he was arrested Semprún’s first book, “The Long ally healthy sense of vanity, humor, The Grey Bastards who die without was turned upside-down at age 9, by the Gestapo in October 1943. His Voyage,” which was published 18 irony, and a kind of literary show- By Jonathan French the meritocratic when his mother died, and again subsequent deportation to Buchen- years after his liberation from manship that other survivors have Ticket cross four years later, when the Spanish wald, where he remained until its Buchenwald, paints a very muddy found disquieting.” What, she asks, over, but then Civil War erupted. Like many liberation at the end of the war, picture. Ms. Fox Maura calls Sem- was this seducer’s “personal rela- they do what ghosts normally do—they Fade, Spanish Republicans opposed to became the defining event of his life prún out here for “co-opt[ing] the tionships to trauma, memory, and becoming the chittering, powerless spooks of Franco, Semprún’s diplomat father and the inspiration for much of his most well-known representations forgetting?” The mystery remains. folklore. and his strictly authoritarian new work. It is here that Ms. Fox Maura’s of the Holocaust.” For a start he In any case, there is something wrong on wife gathered their family and fled sleuthing really comes into its own. describes Buchenwald as a “death Mr. Grey is a writer and critic the Other Side: not enough people. Where to France. The hand-to-mouth life Many who have read Semprún’s Bu- camp,” which it patently was not. living in Paris. are all the cavemen, ancient Egyptians, Romans and Native Americans who appeared so often as spirit guides for pre-scientific mediums? Some of the few surviving Old Dead fear that they have been culled by some non-human force. The only hope is to form a Presence, an overmind of the dead, for truly Galactic Adventures eternal life. But there’s a Soviet overmind as well, probably directed by Lenin. ace in online relationships; they are chameleon is stuck in a predica- A story like this depends on constant wise to remember that a stranger ment that brings to mind Ray- twists, threats, opportunities and develop- who seems warm and genuine mond Chandler’s brilliant line ments. Ectotanks for warfare, Faraday cages may have dark motives and om- about a fellow looking “about as and spirit-crowns to ward off thought- inous intent. inconspicuous as a tarantula on a transfer, charter-bodies to enable the dead to A dreaded interstellar slice of angel food cake.” For return physically and by contrast female CHILDREN’S BOOKS warrior gets a hilarious comeup- the protagonist of “Neon phantasms made out of ectoplasm to seduce pance in “Are You Scared, Leon” (Nosy Crow, 22 the living—Mr. Rajaniemi keeps pulling new MEGHAN COX GURDON ?” ( pages, $14.99), the prob- ideas out of his hat, each one making you Press, 42 pages, $17.99),a lem is color. In Britta think, with a shudder, “Of course—but who ROMY SILVERS is 16 years old, haunted by meta picture book by Teckentrup’s bold il- would have thought of that?” memories and utterly alone. In Lauren Adam Rex that starts be- lustrations, Leon Mr. Rajaniemi is already the crowned king James’s gripping romantic sci-fi thriller ing funny even before stands out in of cyberfiction and nanofiction, with his “The Loneliest Girl in the Universe” the first page. (The electric orange “Jean le Flambeur” trilogy. This stand-alone (HarperTeen, 303 pages, $17.99), she’s the dedication reads: “For against the gen- novel makes him the all-time great of un- sole surviving passenger—and now Henry...Iamyourfather. –A.R.”) tler greens, grays and blues of the world. intended consequences as well. “Summer- commander—of a spacecraft hurtling On a series of tenebrous paintings, “Oh dear,” writes Jane Clarke in this chatty land” is a masterpiece, set to be a classic— toward a remote, habitable planet with the ragged yellow lettering enlists the young tale for 2- to 5-year-olds, “Leon’s so bright, but not by any means a comfortable one. mission of founding a colony. reader in a taunting dialogue with the he’s keeping all the other chameleons One cliché of epic fantasy is that any Born on the ship, Romy has no famous villain, asking repeatedly: awake! What a lot of grumpy chameleons!” connection, let alone intermarriage, between experience of other people than what she “Are you scared, Darth Vader?” In his mask Will Leon find his place in the world? (Well, orcs and goblins on one side and human remembers of her parents and what she can and shroud, Darth Vader stands impassive yes, but where?) beings on the other is utterly unthinkable. see of life on Earth from movies and TV and unimpressed as first a “wolfman” and Thick obsidian lines run through vivid, Jonathan French has set out to challenge shows stored in the ship’s computer. A tech then a “vampire” and a “witch” jump out at jostling colors in the aboriginal Australian that convention, and the moral simplifica- genius, Romy is also surprisingly normal: him. As the provocations increase, Darth artwork to be found in Bronwyn Bancroft’s tions that go with it. In his “The Grey She writes fan fiction starring characters Vader becomes “most displeased” but “Shapes of Australia” (Little Hare, 24 Bastards” (Crown, 424 pages, $27) we have from her favorite TV series and insists: “I am not scared. I will never be pages, $17.99). Each richly ornamented a human empire pitted against an always- corresponds at great intervals (because of scared. Who could possibly scare Lord threatening world of orcs: frails against her distance from Earth) with her therapist. Vader?” As it happens, there is such a THIS WEEK'S BOOKS thicks, to use their own terms. When Romy learns that another ship is person, as readers ages 4-8 will be de- Patrolling the badlands in the middle, coming, one with superior technology that lighted to realize. The Loneliest Girl in the Universe however, are groups of half-orcs, mounted on will allow it to overhaul her before she Is it better to stand out or fit By Lauren James their giant war-hogs, including the Grey reaches the planet, she’s thrilled and in? Two stories explore this Bastards, the Orc Stains, the Tusked Tide, relieved: She won’t have to settle vexed question. In the pages Are You Scared, Darth Vader? the Sons of Perdition. Like street gangs, they Earth II on her own. Better still, of the first, “Twig” (Simon & By Adam Rex have their own code of honor, their own the commander of the Schuster, 32 pages, $17.99), complex alliances. approaching vessel, “J,” is young, readers ages 4-8 meet a girl Twig Jackal, Mr. French’s central character—it’s charming, communicative—and named Heidi who feels invisible By Aura Parker hard to describe him as a hero—is mainly lonely too. As news comes of at her new school. And it’s true, engaged in two things: trying to overthrow catastrophic war on Earth and she is, because Heidi is a stick Neon Leon the current leader of the Grey Bastards, and, NASA severs contact with Romy, insect, “tall and long like the By Jane Clarke with unexpected chivalry, trying to keep safe she finds herself drawn yet more twig of a tree,” with camou- Illustrated by Britta Teckentrup an elf girl he has rescued. She, as one might deeply into a relationship of trust flage that makes her blend in expect given all the cross-species interaction and love (and momentary lust) with the background to such a de- Shapes of Australia going on, is pregnant by an orc, an event so with a compelling stranger who gree that the other students at By Bronwyn Bancroft rare as to make her valuable, with conse- seems to have an uncanny feel for Bug School—the honeybees, fire quences we can’t even guess at. her deeper thoughts and desires. ants and praying mantises, among It’s refreshing to see the old tropes Warning sirens may not yet be others—overlook her. page in this picture book for the smallest undermined, but the Grey Bastards live up going off in Romy’s spaceship, but Aura Parker’s quirky, delicate children evokes objects such as boulders, to their name in all respects. Their code of they will be blaring in the pictures (see left) of the school creeks and honeycombs. “Grasslands create honor allows what most people would call minds of readers age 13 and and its pupils are full of seek- a quilt of nature’s comfort,” we read as treachery, they’re in it for themselves alone, older, and rightly so. As a psy- and-find interest, especially her serpentine lines of green traverse bright and they are incurably foul-mouthed. As for chological drama, “The Loneliest jolly scenes of a crowded play- square blocks of meadow. Teardrop shapes a contest between Good and Evil, nobody in Girl in the Universe” is a good read with ground. Eventually Heidi’s teacher gets the crammed with acrylic dots and circles are Mr. French’s universe would know where to several shocking twists. It’s even sharper as class to devise a colorful solution for the “termite nests settle[d] comfortably by a start looking for either. There’s non-stop an extended metaphor for certain risky re- new girl that gives her visibility whenever doomed tree.” Tucked into the riot of color action, though not for faint hearts, and alities of modern adolescence. Teens who she wants it. is a slender black-and-white sapling, its life never an unassuming hobbit or fatherly ent

HARPERTEEN; LUCASFILMfeel PRESS isolated are often tempted to seek sol- In a second picture book, a maladapted gone already. by way of relief. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

C12 | Saturday/Sunday, June 30 - July 1, 2018 **** THE WALL STREET JOURNAL. BOOKS

‘There are places I’ll remember / All my life, though some have changed / Some forever not for better / Some have gone and some remain...’—LENNON-MCCARTNEY What It Was Really Like

As Time Goes By By Derek Taylor Faber & Faber, 228 pages, $14.95

BY D.J. TAYLOR

T TOOK ONLY a few mo- ments’ exposure to this re- issue of Derek Taylor’s four- I and-a-half-decades-old memoir, “As Time Goes By,” for me to be transported to a scene from Eric Idle’s cinematic Beatles spoof, “The Rutles” (1978). Outside a building clearly doubling as the London HQ of the Fab Four’s ill-fated Apple Corps, a journalist can be found interrogating a hapless employee identified as “Eric Manchester.” Be- hind them, shoals of light-fingered visitors tote pilfered TV sets and office equipment through the un- guarded front door. The interviewer is played by a gamely self-satirizing George Har- rison; Manchester (represented by Mr. Idle’s Monty Python colleague Michael Palin) pastiches Derek Taylor’s patter as the Beatles’ press officer. Shortly afterward, John Belushi, in the guise of money-man “Ron Decline,” will begin his re- morseless tramp around the corri- dors as accountants run screaming from their cubbyholes and secretaries shrink paralyzed from his touch. In the 49 years—the exact date

was Aug. 20, 1969—since John JANE BROWN/IMAGE WORKS; IMAGE ON COVER VIA GETTY Lennon, Paul McCartney, George HANDS-ON STYLE John Lennon and Derek Taylor (front) with others at Apple Corps HQ in 1968. Harrison and Ringo Starr last sat in a studio together, there have been chancers and nest-featherers who fornia, two transcendental meditators and Mr. Starr, we learn that Taylor set setting up the Monterey Festival in several plausible candidates for the swirled around them—Taylor was from Rishikesh, two Beatles, Yoko the fateful deal in motion by telling the summer of 1967 and attempting co-starring role of “Fifth Beatle.” To their kind of person: a local lad whose Ono, a German television producer one of Klein’s associates that he to finesse the likes of Captain Beef- Pete Best, the founding drummer roots in West Kirby were almost iden- and the Sinhalese poet Tambimuttu might as well call the band to offer heart and His Magic Band into the kicked out of the band at the insti- tical to their Merseyside upbringings; fetched up simultaneously on the his help. “Well,” he writes, “being as pages of such innocuous teen maga- gation of producer George Martin, an old-style journalist bowled over by Savile Row doorstep “needing cups of how I brought Klein to Apple, by zines as Tiger Beat and Flip. All this is can be added Sir George himself, this new-style music; a man reliably tea and conversation.” making sure the way was clear, I owe intensely, if not quite always inten- whose technical pizazz turned the unbothered by the drugs and the be- Borne aloft on a cloud of marijuana someone, somewhere something, tionally, amusing, and yet inevitably band into something bigger than a havioral excess. Though technically smoke, filing endless scrawled dis- that’s for sure.” the best bits are those dreamy elegies mere pop group. Brian Epstein, the off the payroll in the mid-’60s, Taylor patches from an Alice in Wonderland That sentence gives a good idea of from 1968. group’s manager until his untimely was always someone on whom the landscape of acid-inspired grooviness, Taylor’s slightly tripped out, conver- At one point, Taylor (high on death in 1967, and Neil Aspinall, the band members could depend, and sational and—it must be said—quint- drugs) and Mr. McCartney, in a long-serving aide-de-camp who went when Harrison paid his famous visit essentially 1960s style, in which judg- chauffeur-driven car on their way on to manage Apple Corps, have to Haight-Ashbury in the summer of When George Harrison ment comes by way of situational south from Liverpool, stop off in a champions. And yet, of all the 1967 to gain firsthand experience of incongruity and the humor is by Bedfordshire village named Harrold. smaller fry who fizzed in the Beat- the West Coast hippy tribes, it was paid his famous visit turns wry, impressionistic, tongue-in- After a session in the pub they are les’ effervescing slipstream, Taylor Taylor who capered at his side. to Haight-Ashbury in cheek, buried and laconic. (Of a libel entertained by the local dentist, (1932-1997) seems to be have been Beatle and minder alike were 1967, it was Derek Taylor writ against the London Sunday whose daughter hands Mr. McCart- the one whose madness—to refer- frankly appalled by the Haight Times: “Allen Klein doesn’t like being ney a guitar on which he plays a new ence that old Steely Dan song “Mid- (around which Harrison frisked, trou- who capered at his side. called a dirty, lying, self-aggrandising song entitled—you guessed it—“Hey night Cruiser”—ran most closely badourlike, strumming the recently tax-dodger. He is funny that way.”) Jude.” The evening ends at 3 a.m. in with their own. composed Beatles song “Baby You’re Taylor also specializes in jaw-drop- the reopened pub (“In your honor, One curious aspect of Taylor’s a Rich Man”) and its complement of Taylor is rarely less than a room or ping bathos, as in the account of a Paul”), as Mr. McCartney dances place in Beatledom is how compara- “ghastly drop-outs, bums and spotty two distant from the rot seething night out in London with the Byrds in with a woman who has just sung tively little time he spent with “the youths.” Back in London the following away at Apple’s core. Long derided as 1965, which ends up with a visit to “The Fool on the Hill” to his piano boys” in their tumultuous heyday. A year, with a brief to promote Apple’s a vanity project ripe for collapse the the Rolling Stone Brian Jones’s apart- accompaniment. year taken up overseeing the “Beatle- newly consecrated record label, a moment its directors got bored, ment, “where we smoked some hash Once again I was transported mania” of 1964 was abruptly cur- boutique and the half-dozen other Apple, the author insists, needed only and some grass and as there was no back—not to the ransacked office of tailed when he fell out with Epstein. commercial activities on which the a controlling intelligence to make it food in the place and, after the wine The Rutles, but to the moment in the Later, he received a providential re- Beatles’ gaze desultorily fell, Taylor’s triumphantly viable. “All we wanted,” had finished, no liquid excepting a “Beatles Anthology” series in which appointment in the spring of 1968, eye for the countercultural cavalcade he writes, “was more consistency and half-bottle of milk, solid as chalk, we Harrison, viewing some ancient foot- with Epstein dead, his charges bick- that flowed up and down the staircase a visionary with a business brain at went out for hamburgers and then age of milling fans, declares that he ering and the organization in melt- at 3 Savile Row was no less acute. the top (rather than four visionaries went home.” would like U2 to see this. That way down as break-up loomed. And he did Here the reader’s attention is growing up and apart painfully and Not all of “As Time Goes By” takes they could understand what it was some post-split work on books and directed to the memorable event publicly).” As for Allen Klein—so place in Beatle-land. Vowing that he like to be really famous. film projects. known as “Black Friday,” the day on cruelly taken off by Belushi—the “could make anyone famous,” Taylor Embedded in the Beatles’ world which a gang of Hells Angels, the contract-renegotiating New Jersey whomps up a storm in the LBJ-era Mr. Taylor’s novel “Rock and Roll Taylor conspicuously wasn’t, and managers of the Grateful Dead, a hustler whose importation set Mr. States, softening reality for the Beach Is Life” has just been published by yet—far more so than many of the homeless family of seven from Cali- McCartney against Lennon, Harrison Boys (“Christ, they were hard work”), Canongate in the U.K.

Best-Selling Books | Week Ended June 24 With data from NPD BookScan

Hardcover Nonfiction Hardcover Fiction Methodology

TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK NPD BookScan gathers point-of-sale book data from more than 16,000 locations across the U.S., The Legend of Zelda Encyclopedia 1 New Calypso 6 3 The President Is Missing 1 1 Tom Clancy Line of Sight 6 3 representing about 85% of the nation’s book sales. Nintendo/Dark Horse Books David Sedaris/Little, Brown and Company J. Patterson & B. Clinton/Little, Brown & Company & Knopf Mike Maden/G.P. Putnam’s Sons Print-book data providers include all major Magnolia Table 2 Girl, Wash Your Face 7 The Perfect Couple 2 Shelter in Place 7 booksellers (now inclusive of Walmart) and web 1 8 New 5 retailers, and food stores. E-book data providers Joanna Gaines & Marah Stets/William Morrow & Company Rachel Hollis/Thomas Nelson Elin Hilderbrand/Little, Brown & Company Nora Roberts/St. Martin’s Press include all major e-book retailers. Free e-books and Fail Until You Don’t 3 The Plant Paradox 8 The Outsider 3 An Elephant & Piggie Biggie! 8 those sold for less than 99 cents are excluded. The New 4 2 9 fiction and nonfiction lists in all formats Bobby Bones/Dey Street Books Steven R. Gundry/Harper Wave Stephen King/Scribner Book Company Mo Willems/Disney-Hyperion include adult, young adult, and juvenile titles; the business list includes only Little Moments of Love 4 12 Rules for Life 9 PopularMMOsPresentsAHoleNewWorld 4 Dog Man and Cat Kid (Dog Man 4) 9 New 6 New – adult titles. The combined lists track Catana Chetwynd/Andrews McMeel Publishing Jordan B. Peterson/Random House Canada PopularMMOs /Harpercollins Dav Pilkey/Graphix sales by title across all print and e-book formats; audio books are excluded. Refer questions Yes We (Still) Can 5 New The Subtle Art of Not Giving a F*ck 10 7 Oh, the Places You’ll Go! 5 4 Wonder 10 – to [email protected]. Dan Pfeiffer/Twelve Mark Manson/Harper Dr. Seuss/Random House Books For Young Readers R. J. Palacio/Alfred A. Knopf Books for Young Readers

Nonfiction E-Books Nonfiction Combined Fiction E-Books Fiction Combined Hardcover Business

TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK

Things That Matter 1 – The Legend of Zelda Encyclopedia 1 New The Perfect Couple 1 New The President Is Missing 1 1 StrengthsFinder 2.0 1 1 Charles Krauthammer/The Crown Publishing Group Nintendo/Dark Horse Books Elin Hilderbrand/Little, Brown and Company J. Patterson & B. Clinton/Little, Brown & Company & Knopf Tom Rath/Gallup Press Freakonomics 2 – Fail Until You Don’t 2 New The President Is Missing 2 1 The Perfect Couple 2 New Bad Blood 2 4 S. D. Levitt & S. J. Dubner/HarperCollins Publishers Bobby Bones/Dey Street Books James Patterson & Bill Clinton/Little, Brown & Company Elin Hilderbrand/Little, Brown & Company John Carreyrou/Knopf Publishing Group What Your Clutter Is Trying to Tell You 3 – Kitchen Confidential 3 1 A Merciful Silence 3 New The Outsider 3 2 Emotional Intelligence 2.0 3 3 Kerri L. Richardson/Hay House, Inc. Anthony Bourdain/Ecco Press Kendra Elliot/Montlake Romance Stephen King/Scribner Book Company Travis Bradberry & Jean Greaves/TalentSmart Kitchen Confidential 4 1 Magnolia Table 4 2 Mister Tonight 4 New The Rooster Bar 4 – The Five Dysfunctions of a Team 4 6 Anthony Bourdain/Bloomsbury USA Joanna Gaines & Marah Stets/William Morrow & Company Kendall Ryan/Dream Press John Grisham/Dell Patrick Lencioni/Jossey-Bass Born Trump 5 New Calypso 5 4 The Outsider 5 3 A Merciful Silence 5 New Total Money Makeover 5 8 Emily Jane Fox/HarperCollins Publishers David Sedaris/Little, Brown and Company Stephen King/Scribner Kendra Elliot/Montlake Romance Dave Ramsey/Thomas Nelson Educated 6 5 Yes We (Still) Can 6 New The Perfect Mother 6 – Shelter in Place 6 5 Principles: Life and Work 6 7 Tara Westover/Random House Publishing Group Dan Pfeiffer/Twelve Aimee Molloy/HarperCollins Publishers Nora Roberts/St. Martin’s Press Ray Dalio/Simon & Schuster The Hemingses of Monticello 7 – The Plant Paradox 7 3 White Lace and Promises 7 – Tom Clancy Line of Sight 7 3 The Energy Bus 7 – Annette Gordon-Reed/W. W. Norton & Company, Inc. Steven R. Gundry/Harper Wave Debbie Macomber/Random House Publishing Group Mike Maden/G.P. Putnam’s Sons Jon Gordon /Wiley Calypso 8 3 Little Moments of Love 8 New Shelter for Blythe 8 New The Black Book 8 7 Extreme Ownership 8 5 David Sedaris/Little, Brown and Company Catana Chetwyno/Andrews McMeel Publishing Susan Stoker/Susan Stoker James Patterson & David Ellis/Grand Central Publishing Jocko Willink and Leif Babin/St. Martin’s Press A Brief History of Time 9 – The Subtle Art of Not Giving a F*ck 9 7 The Bitter Season 9 – The Cottages on Silver Beach 9 New Measure What Matters 9 9 Stephen Hawking/Random House Publishing Group Mark Manson/HarperOne Tami Hoag/Penguin Publishing Group RaeAnne Thayne/HQN John Doerr/Portfolio Bad Blood 10 4 12 Rules for Life 10 8 The Cottages on Silver Beach 10 New Mister Tonight 10 New Radical Candor 10 – John Carreyrou/Knopf Doubleday Publishing Group Jordan B. Peterson/Random House Canada RaeAnne Thayne/Harlequin Kendall Ryan/Dream Press Kim Scott/St. Martin’s Press