President Denies Role in Payments

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****** THURSDAY, AUGUST 23, 2018 ~ VOL. CCLXXII NO. 45 WSJ.com HHHH $4.00

DJIA 25733.60 g 88.69 0.3% NASDAQ 7889.10 À 0.4% STOXX 600 384.02 g 0.03% 10-YR. TREAS. À 7/32 , yield 2.823% OIL $67.86 À $2.02 GOLD $1,196.30 À $3.70 EURO $1.1599 YEN 110.55 What’s Hawaii Prepares as Powerful Storm Nears President News Denies Role Business&Finance

ed officials at their last In Payments Fmeeting signaled they were likely to raise interest rates next month and ex- Trump blasts former president directed him to buy pressed concerns that pro- lawyer who implicated the silence of the women so longed trade disputes could their allegations about affairs disrupt economic growth. A1 him as parties jockey with Mr. Trump wouldn’t harm his presidential bid. Target said it had its best ahead of midterms On Twitter, Mr. Trump ac- quarterly results in more than cused Mr. Cohen of lying and a decade, continuing a string BY REBECCA BALLHAUS mocked his legal talents. On of strong reports from the AND JANET HOOK Fox News, Mr. Trump said he nation’s largest retailers. A1 became aware of the pay- Buyout firm KKR is in WASHINGTON—President ments to the women “later talks to acquire Fiat Chrys- Trump denied playing a part in on,” echoing his statement in ler’s global auto-parts busi- illegal hush-money payments April that he wasn’t aware of ness, Magneti Marelli. B1 to two women during the 2016 the payment to Stephanie Clif- campaign and berated his for- ford, the former adult-film The S&P 500 edged lower, mer lawyer for swearing in star who goes by the name even as the index’s bull run court a day earlier that he had, Stormy Daniels, at the time it reached a milestone. The Dow leaving the White House and took place. fell 88.69 points, while the both political parties Wednes- Last month, a lawyer for Mr. Nasdaq rose 0.4%. B10, B11 day to sort through the fallout Cohen released a tape of a Sep- A robust August rally less than three months before tember 2016 conversation be- in the Treasury market is midterm elections. tween Mr. Cohen and the presi- foiling one of Wall Street’s Mr. Trump and administra- dent in which they discussed most popular trades, a bet tion officials sought to dis- PleaseturntopageA5 on lower bond prices. B1 credit Michael Cohen, who said Tuesday as part of a guilty Lawmakers calibrate their Sales of existing homes plea in federal court that the strategies after plea...... A4 continued their downward slide in July, falling 0.7% from the previous month. A2 Facebook pulled its data-security app from Ap- Pressure, Pique ple’s app store after Apple ruled the service violated its data-collection policies. B4

FROM TOP: HUGH GENTRY/REUTERS; MARCO GARCIA/ASSOCIATED PRESS Led Cohen to Talk Xiaomi swung toaprofit IN THE PATH: Hurricane Lane was downgraded Wednesday to a Category 4 Storm, as Hawaii as smartphone sales rose residents braced for flooding, possible power outages and sustained winds of 155 miles an hour. A3 Michael Cohen had many rea- criminal counts, potentially car- sharply, but a CEO bonus pay- sons to play ball last weekend rying a lengthy prison sentence ment weighed on results. B4 when his legal team sat down to and staggering financial penal- Continental AG’s shares talk to federal prosecutors. ties. fell nearly 15% after the Ger- Adding to the pressure, David man auto-parts giant issued By Rebecca Davis Pecker, the chairman of Ameri- a fresh profit warning. B2 Fed Signals Rate Raises, O’Brien, can Media Inc., which publishes the National Enquirer, provided Santos is acquiring nat- Nicole Hong prosecutors with details about ural-gas company Quadrant and Joe Palazzolo payments Mr. Cohen arranged Energy for $2.15 billion. B6 But Sees Trade Risks The Manhattan U.S. Attor- with women who alleged sexual Hartford Financial agreed ney’s office had testimony from encounters with President to buy insurance underwriter BY NICK TIMIRAOS the minutes of the Fed’s July is designed to neither spur nor Mr. Cohen’s accountant and busi- Trump, including Mr. Trump’s Navigators for $2.1 billion. B10 31-Aug. 1 meeting, which were slow growth. ness partners, along with bank knowledge of the deals. WASHINGTON—Federal Re- released Wednesday. The Fed held rates steady records, tax filings and loan ap- This account of how Mr. Co- World-Wide serve officials at their last Officials also discussed at the meeting after raising its plications that implicated not hen went from a pugnacious de- meeting signaled they were dropping language from their benchmark rate in June to a only Mr. Cohen in potential crim- fender of the president to turn- likely to raise interest rates post-meeting statement that range between 1.75% and 2%, inal activity, but also his wife, ing on Mr. Trump is based on Trump denied playing a next month and expressed has for years described policy the second such increase this who filed taxes jointly with her details provided by people close part in illegal hush-money more concerns than before that as “accommodative,” or de- year. In June, most officials husband. Prosecutors signaled to Mr. Cohen and others briefed payments to two women prolonged trade disputes could signed to stimulate growth. penciled in a total of at least Mr. Cohen would face nearly 20 PleaseturntopageA4 during the 2016 campaign disrupt economic growth. The decision to pull back on four rate increases this year. and berated his former law- If the economy performs in this guidance bears the im- Most officials have signaled yer for saying that he had, line with officials’ expecta- print of Fed Chairman Jerome they are keen to raise rates to leaving the White House and tions, “it would likely soon be Powell, who has signaled such PleaseturntopageA9 Rally Blunts Big Bet Against Bonds both political parties to sort appropriate to take another language is no longer neces- Treasurys’ strength this month has hurt hedge funds and other through the fallout. A1, A4 step” in raising the benchmark sary as short-term rates edge Fed rate ticks up ahead of investors betting that prices were headed lower. B1 Jackson Hole...... B12 The DNC has contacted short-term rate, according to closer to a neutral setting that Weekly net bets on 10-year Treasury futures the FBI after an unsuccess- 400 thousand contracts ful attempt to hack into a voter database maintained 200 by the organization. A6 Target Rides Retail Surge The U.S. and China kicked 0 off two days of talks in Wash- BY KHADEEJA SAFDAR a strong quarter of results tronics and homewares to toys ington aimed at settling an from the country’s largest re- and apparel. –200 escalating trade battle. A7 Target Corp. said it had its tailers, which have benefited “Our progress so far had A Mexican official said best quarterly results in more from increasing consumer been well ahead of our origi- –400 the U.S. and Mexico are close than a decade, buoyed by the confidence and rising online nal expectations,” he said on a Bets that bond prices will fall to resolving some points that retailer’s efforts to improve its sales despite the challenge of conference call Wednesday. –600 stores and e-commerce capa- Amazon.com Inc. Target Chief The results were heralded have stalled Nafta talks. A7 bilities as well as by a boom- Executive Brian Cornell on by analysts as confirmation of –800 The administration is ing economy that has helped Wednesday said it isn’t just a retail “renaissance.” But 2013 ’14 ’15 ’16 ’17 ’18 looking to boost pressure on lift sales across the retail in- the economy fueling growth, PleaseturntopageA8 Iran to abandon its nuclear dustry. pointing to the company’s Source: Thomson Reuters program, Bolton said. A9 The numbers from the Min- gains in market share across a Heard on the Street: Retailer’s good news isn’t over...... B12 A U.S.-backed group in neapolis-based chain continue range of categories from elec- Syria is being pressed by the Assad regime in talks to cede control of its territory. A9 AirPods Aren’t Just Headphones, INSIDE Islamic State released They’re an Invisibility Shield what it said was a recorded speech by Baghdadi, the ter- iii Cut Your ror group’s elusive leader. A9 The administration is fin- Owners of Apple’s wireless earphones use ishing a response to state them as a secretary and a hiding place Amazon laws circumventing the new cap on individual deductions BY REBECCA DOLAN more than transmit music and for state and local taxes. A6 phone calls. Even when muted, Bill in Half Ohio State’s Meyer was Zach Miles learned a valu- or off, they declare: Stay away. DONNA suspended for three games able lesson before graduating “It makes you look like after a probe of his handling this year from Oral Roberts you’re really consumed in your SUMMER’S of domestic-abuse claims University in Oklahoma. Walk- work,” said Hughston May, ‘RADIO’ CLASSIC against an assistant coach. A5 ing across campus while wear- creative resident at Moxie, an Any Oracle Mexico’s president-elect ing his AirPods earphones advertising agency in Atlanta. kept people at a distance. “If AirPods do part-time duty LIFE & ARTS, A12 Amazon Autonomous will hold off auctioning new Database Database oil blocks for at least two you’re not in the mood to talk as a personal secretary, to somebody, screening calls years after taking office. A7 or if you’re in and potential a hurry, it interruptions. Easy to Move—Guaranteed Savings CONTENTS Markets...... B11-12 gives someone Ms. May says Banking & Finance.. B10 Opinion...... A15-17 Business News.. B3,6 Sports...... A14 a visual sig- co-workers There’s the cloud… and there’s the Crossword...... A14 Technology...... B4 nal,” he said. bold enough to Oracle Autonomous Cloud. Heard on Street.. B12 U.S. News...... A2-6 Mr. Miles approach her Life & Arts...... A11-13 Weather...... A14 brought that while they #thinkautonomous Management...... B5 World News..... A7-10 knowledge to I want to be alone dangle from his working her ears “prob- THE NFL TEAM > life in Colorado Springs, Colo., ably have something impor- where his AirPods remain a tant to say.” THAT WENT shield against awkward small At a retail price of $159, ALL IN oracle.com/thinkautonomous talk. “It’s a crutch,” admitted AirPods aren’t cheap, and Guarantee applies to same data warehouse or transaction processing workload run on Oracle Autonomous the 23-year-old app developer. their sound quality is gener- Database Cloud and AWS. Pricing based on standard published pricing for Oracle bring your own license and s 2018 Dow Jones & Company, Inc. AWSasof3/1/18.WorkloadcomparisontobebasedonactualrequirednumberofOCPU/VCPUs,storageamount, SPORTS, A14 andtimerequiredtocompleteworkloadwithminimumworkloadofonehour.Anycreditsduewillbeappliedto All Rights Reserved Apple AirPods, those white ally rated in audiophile re- UniversalCreditcloudaccount.Offervalidthrough5/31/19.Copyright©2018,Oracleand/oritsaffiliates. wireless ear buds, do so much PleaseturntopageA10 A2 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. U.S. NEWS

Home Sales Drop CAPITAL ACCOUNT | By Greg Ip For Fourth Month A Radical Response to China

BY LAURA KUSISTO prime opportunity for current The inten- f the U.S., European AND PAUL KIERNAN owners to sell, adding to in- sifying trade Fading Glow I Union, Japan, Canada, ventory and generating more fight between American businesses are losing faith in China's potential as Australia, Mexico and WASHINGTON—Sales of activity in the housing market. the U.S. and competition from state-owned enterprises intensifies. South Korea brought the previously owned homes con- Instead, many are staying put, China didn’t case jointly and won, China tinued their longest downward often choosing to renovate come out of View of the current business Percentage of respondents would either have to change slide in five years in July as rather than give up low mort- the blue. American frustra- climate in China compared with perceiving their state-owned its policies, or face WTO- rising prices and higher mortgage rates and pay signifi- tion has long been building three years earlier competitors as having the sanctioned penalties on al- gage rates kept more potential cantly higher prices for their over China’s failure to live following benefits, 2017 most all of its exports. Ms. buyers out of the market. next homes. up to its commitments when More optimistic Less optimistic Preferential government financing Hillman goes further: The 63% Existing-home sales fell “Underlying demand is edg- it joined the World Trade Or- 50% findings could be used to 0.7% in July from June to a ing higher, but you can’t sell ganization in 2001. Preferential licensing and approvals amend the WTO charter to seasonally adjusted annual more homes if they’re not there But President Trump’s 58 explicitly prohibit the of- rate of 5.34 million units, the to be sold,” said David Berson, unilateral tariffs risk a Pyr- Preferential access to fending policies. If China 40 government contracts National Association of Real- chief economist at Nationwide rhic victory that dam- 53 couldn’t abide by amend- tors said Wednesday. The drop Insurance and a former Fannie ages global trading rules Tax benefits ments, it would effectively marked the fourth straight Mae chief economist. that have broadly served U.S. 30 45 withdraw from the WTO. month of declines. A shortage of homes on the interests. There may be a Lower land costs Ordinarily the WTO acts by Compared with a year earlier, market has fueled the sharp more effective solution: 40 consensus, so China could just sales in July were down 1.5%. rise in prices, which rose 4.5% threaten China with expul- 20 Other financial subsidies veto the amendments. But Ms. Rising prices and limited inven- in July from a year earlier to a sion from the WTO. 30 Hillman notes that if consen- tory of affordable housing are median price of $269,600. Av- Lower utility costs sus can’t be reached, the WTO 10 28 continuing to sideline buyers erage hourly wages, by com- alling this the nuclear Preferential treatment allows amendments with a su- despite solid economic growth. parison, were up 2.7%. C option doesn’t really in policy enforcement permajority of members. 25 “Too many would-be buyers Mr. Yun said rising mort- do it justice since the 0 All of this is risky and un- are either being priced out or gage rates as the Federal Re- nuclear weapons don’t even Other precedented; only a handful are deciding to postpone their serve tightens monetary policy exist. The WTO lacks a for- 2010 ’12 ’14 ’16 3 of WTO cases have been search until more homes in have also helped make home mal mechanism to throw out Source: U.S. China Business Council member survey THE WALL STREET JOURNAL. brought under Article XXIII. their price range come on to the buying more costly. a member. But its founding No country has left the WTO, market,” said Lawrence Yun, the News Corp., owner of The charter, the General Agree- cluding when it loses cases others can respond to them. much less been expelled. trade group’s chief economist. Wall Street Journal, also oper- ment on Tariffs and Trade, there. And it argues much It doesn’t, because many Putting together a case With prices at all-time ates Realtor.com under license includes a section, Article criticism aimed at it is un- take the form of low-cost would take a long time and highs and the economy boom- from the National Association XXIII, that can, in effect, founded. For example, no for- loans, raw materials or other require the U.S. to work with ing, this would normally be a of Realtors. achieve the same thing. It al- mal laws force foreign com- inputs to or from state- allies it has alienated with lows a case to be brought panies to transfer technology owned enterprises. tariffs. The Trump adminis- against a member for behav- to Chinese firms, it says. China isn’t sued more of- tration has little love for the ior that doesn’t specifically But as Ms. Hillman, a for- ten for such transgressions, WTO and has reportedly violate the treaty but “nulli- mer member of the WTO’s Ms. Hillman says, because weighed withdrawal, while fies or impairs” the benefits top dispute-settlement panel, such cases can be hard to blocking appointments to its every other country expects shows, that misses the many win. Foreign companies are dispute settlement body. Yet to derive from the WTO. ways China violates the com- reluctant to provide evidence some administration officials “China’s economy is struc- mitments it undertook when because they see foreign are willing to entertain this tured differently from any it joined the WTO. competitors as intertwined strategy. Does China “want to other major economy…in Foreign companies report with the Chinese govern- be a part of the WTO and just ways that were not antici- they are routinely compelled ment, which can retaliate, behave like everybody else, or pated by WTO negotiators,” to transfer technology to for example by blocking don’t they?” Kevin Hassett, Jennifer Hillman, a George- Chinese companies to do their expansion. chairman of the White House town University law profes- business there, in violation Many countries won’t Council of Economic Advis- sor told Congress’s U.S.- of Beijing’s commitments. bring cases against China on ers, said on Fox Business Net- China Economic and Security Ms. Hillman notes that even their own for the same rea- work last week. “And if they Review Commission in June. unwritten measures can be son, says Chad Bown, of the don’t...are we going to let WTO rules don’t deal well challenged at the WTO. Peterson Institute for Inter- them stay in the WTO?” with the extensive overlap China’s discriminatory li- national Economics. No such Japanese and EU trade of- between China’s government, censing treatment and its fear exists about suing the ficials are meeting with their ruling Communist party and failure to better police the U.S. American counterparts in companies. Article XXIII, she theft of foreign intellectual Ms. Hillman says this is Washington Friday to discuss said, was designed “exactly property both violate its ob- why other countries should China. They already have for this type of situation.” ligations under the WTO’s bring a “big, bold” case their own reasons for wanting China is more open and side agreement on intellec- based under Article XXIII; by China to change, but now market oriented today than tual property. addressing China’s systemic they have another: forcing before it joined the WTO. It China, like all WTO mem- violations, such a case would China to act like it belongs in has generally adhered to the bers, is supposed to publish depend less on proving the WTO may be necessary to letter of WTO decisions, in- all of its subsidies so that smaller, specific violations. keep the U.S. from leaving. U.S. WATCH

IOWA Murder Suspect Held On $5 Million Bond A judge has ordered a man charged in the kidnapping and murder of an Iowa college student to be jailed on a $5 million cash-only bond. Cristhian Bahena Rivera had been held since Tuesday on a $1 million cash-only bond after being charged with first-degree murder in the death of Mollie Tibbetts. At a hearing Wednes- day, Magistrate Judge Diane Crookham-Johnson granted a state prosecutor’s request to raise the bond amount to $5 million. Assistant Attorney General Scott Brown noted that Mr. Ri- vera is suspected of being in the country illegally, and is charged with a “heinous crime.” He says the higher bond amount would

protect the community. CHARLIE NEIBERGALL/ASSOCIATED PRESS Mr. Rivera’s lawyer, Allan Cristhian Bahena Rivera is escorted into thePoweshiek County Courthouse for an initial court Richards, said he plans to ask appearance Wednesday in Montezuma, Iowa He is charged in the murder of Mollie Tibbetts. for a bond review hearing at a later date. He said his client is a reached five of the six victims, THE WALL STREET JOURNAL young man who has no prior all of whom have left Fayette- CORRECTIONS (USPS 664-880) criminal history and has worked ville. (Eastern Edition ISSN 0099-9660) for a prominent local farmer for “To say they were ecstatic AMPLIFICATIONS (Central Edition ISSN 1092-0935) years. would be an understatement,” (Western Edition ISSN 0193-2241) —Associated Press he said. “They’re all very pleased Editorial and publication headquarters: 1211 Avenue of the Americas, with the outcome.” Greece’s budget deficit in New York, N.Y. 10036 COLD CASES He added: “It’s bringing all our 2009 was 15.1% of its gross do- Published daily except Sundays and general cold cases to life.” mestic product. A World News legal holidays. Periodicals postage paid at Genealogy Helps ID article Wednesday about the New York, N.Y., and other mailing offices. SAN FRANCISCO Postmaster: Rape Suspect end of Greece’s bailout incor- Send address changes to The Wall Street rectly said 2008. Journal, 200 Burnett Rd., Chicopee, MA 01020. Investigators compared online ‘Grand Central’ All Advertising published in The Wall Street Lunascope family tree data with crime- Of the West Opens House of Fraser, a British Journal is subject to the applicable rate card, scene DNA evidence to identify copies of which are available from the department-store chain, ac- Advertising Services Department, Dow Jones Less hectic, more heavenly: and track down a suspect in a Spanning three city blocks, counts for less than 10% of Es- & Co. Inc., 1211 Avenue of the Americas, New The first MeisterSinger with series of North Carolina rapes San Francisco’s $2 billion transit tée Lauder Cos.’ sales. A Busi- York, N.Y. 10036. The Journal reserves the right from a decade ago, police said terminal is open after nearly a not to accept an advertiser’s order. Only a moon phase module ness & Finance article Tuesday publication of an advertisement shall constitute Wednesday. decade under construction. about the cosmetics company final acceptance of the advertiser’s order. One of the lead detectives Coined the “Grand Central of incorrectly said House of Fra- Letters to the Editor: called the approach, similar to the West,” the new Salesforce Fax: 212-416-2891; email: [email protected] www.meistersinger.com ser accounted for roughly 10% what was used in the “Golden Transit Center near the heart of of Estée Lauder’s sales. State Killer” cold case in Califor- downtown is expected to ac- NEED ASSISTANCE WITH nia, a “game-changer” for inves- commodate 100,000 passengers The decade from 1900-1910 YOUR SUBSCRIPTION? tigators who had few leads in each weekday, and up to 45 mil- was incorrectly represented as By web: customercenter.wsj.com; the assaults that terrorized Fay- lion people a year. It welcomed 1990-1910 in a graphic show- By email: [email protected] etteville starting in 2006. its first passengers and visitors By phone: 1-800-JOURNAL (1-800-568-7625); ing total returns on stocks Or by live chat at wsj.com/livechat Darold Wayne Bowden, 43 this month. over the past 12 decades that years old, has been charged with Enveloped in wavy white accompanied the Aug. 14 REPRINTS & LICENSING Scottsdale, AZ: Arizona Fine Time New York, NY: Aaron Faber multiple rape counts related to sheets of metal veil, the five- Streetwise column about Gallery Naples, FL: Exquisite Timepieces Philadelphia, PA: Martin six assaults from 2006 to 2008, level center includes a bus deck, By email: [email protected] emerging markets. By phone: 1-800-843-0008 Pulli Fine Jewelry St.Petersburg&Tampa,FL:Old Northeast Je- the Fayetteville Police Depart- a towering skylit central en- welers San Francisco, CA: Ravitz Watches Denver, CO: Right Time ment said in a news release. trance hall and a rooftop park Readers can alert The Wall Street Atlanta, GA: Worthmore Jewelers Journal to any errors in news articles GOT A TIP FOR US? Lt. John Somerindyke told the with an outdoor amphitheater. by emailing [email protected] or SUBMIT IT AT WSJ.COM/TIPS Associated Press that he has —Associated Press by calling 888-410-2667. THE WALL STREET JOURNAL. Thursday, August 23, 2018 | A3 U.S. NEWS Southern Colleges Grapple With History

Ties to Confederacy the country to its Nashville, conflict with a push Tenn., campus, announced in 2016 that it would pay $1.2 for a more diverse million to the United Daugh- student population ters of the Confederacy to re- name Confederate Memorial Hall as Memorial Hall. BY CAMERON MCWHIRTER The school said the prior AND MELISSA KORN name contradicted its goals of inclusion. Last year, 12.5% of SEWANEE, Tenn.—Shadé first-year Vanderbilt students Shepard recently attended an were black, nearly double the orientation session addressing number from a decade earlier. the slave-owner connections Administrators at Washing- of her new college, Sewanee. ton & Lee University in Lex- Also known as the Univer- ington, Va., are expected to re- sity of the South, the liberal- spond in coming weeks to a arts school in the Tennessee commission report, released in mountains was conceived by May, that recommended a slave owners who didn’t want building erected with proceeds their sons going north for an from a slave sale be renamed, education, and many ex-Con- and that Confederate leader federates taught there after Robert E. Lee no longer be re- the Civil War. ferred to as a general. It also “I appreciated them being recommended that official col- blunt about it,” said Ms. Shep- lege functions no longer take ard, an 18-year-old African- place inside Lee Chapel—or if

American first-year student STACY KRANITZ FORthey THE WALL STREET JOURNAL (3) do, to remove the memo- from Washington. Life on the rial to Confederate soldiers predominantly white campus Freshman Shadé Shepard, left, expects ‘some adjusting’ and sophomore Caroline Graham wants and use a portrait of Lee in ci- “will definitely take some ad- ‘images of hate’ removed in Sewanee, Tenn., where a Confederate memorial, right, has been relocated. vilian dress. justing,” she said, though so far, “W&L’s affiliation with its people have been welcoming. said John M. McCardell Jr., Hispanic graduates is projected rather than removing them. namesakes—particularly R.E. The toppling of a Confeder- vice chancellor at Sewanee. He to triple during the same pe- “I don’t think you take all of Lee—greatly limits the ate statue by protesters on said he has to walk a fine line riod, and new black graduates these remnants of the past, school’s ability to attract di- Monday at the University of between acknowledging the will increase by 40.5%. take all these artifacts, and verse students, faculty and North Carolina at Chapel Hill is school’s history while no lon- The fast-growing South is grind them into dust,” he said. staff,” the report said. The the latest skirmish in an in- ger paying homage to “the diversifying, but Sewanee has Last summer, after a white percentage of black students tense debate over the future of Confederate shadow that struggled to keep up. Black nationalist gathering in Char- at Washington & Lee hovered such monuments and imagery looms over our institution.” students made up just 5.8% of lottesville, Va., erupted in vio- between 2% and 3% for most on Southern campuses. Institu- For many Southern schools, the first-year class in the lence, Confederate statues and of the past half-dozen years; tions from Virginia to Missis- a core issue is economics. 2017-18 school year, up slightly symbols were removed across this coming fall, it is 6%. sippi are trying to come to They need to appeal to a more from a decade earlier, accord- the U.S., including in Balti- Some older alumni see the terms with statues, markers diverse student population, ing to the school. more and Helena, Mont. changes as an effort to aban- and building names linked to and Confederate symbols can Caroline Graham, 20, a Earlier this month, Duke don history and tradition. their Confederate past, without scare off black and Hispanic sophomore, said all “images of University President Vincent Sewanee alumnus James K. alienating alumni and donors. families or prospects from hate” should be removed. The E. Price announced the school Polk Van Zandt, a 65-year-old While Sewanee removed outside the region. school’s history cannot be would leave empty a space at retired Episcopal reverend, Confederate banners from the The population of new high erased, “but we don’t have to the entry to its chapel where a Black students comprised a said he was on the university’s All Saints’ Chapel and moved a school graduates is expected to keep worshiping it,” said Ms. statue of Robert E. Lee had near-record 11.6% of Duke’s board for decades but became general’s monument to a cem- increase nationally by 23% be- Graham, who is white. stood. That statue was vandal- first-year class last year. frustrated by repeated efforts etery, the campus still has tween the 2000-01 and Tim Huebner, a history pro- ized last year, and Dr. Price “How do you get kids to get to erase the institution’s past. stones commemorating Con- 2025-26 school years, accord- fessor at Rhodes College in said the void would “provide a interested and apply and feel “Whether we like it or not, federate officers and a stained- ing to the Western Interstate Memphis, Tenn., who has stud- powerful statement about the like this is a place they want it is part of our history,” said glass window bearing the Con- Commission for Higher Educa- ied the legacy of Confederate past, the present and our val- to be?” said Nicholas S. Zep- Mr. Van Zandt, who is white. federate Seal in the chapel. tion. While the number of new memorials, recommends con- ues,” representing, as the cha- pos, chancellor of Vanderbilt “If they got kids from New Jer- “We are all wrestling with white graduates will shrink by textualizing Confederate mark- pel’s dean phrased it, a hole University. Vanderbilt, which sey who don’t want to go there, this in one way or another,” about 5%, the number of new ers with signs or new courses left by the sin of racism. draws students from across let them go somewhere else.” Hawaii Closes Schools, Prepares for Hurricane’s Arrival BY ZUSHA ELINSON the state on edge. Residents of the islands de- “Hurricane Lane is not a scended on grocery stores and Hawaii closed schools and well-behaved hurricane,” Gov. hardware stores to stock up some government offices David Ige said. “I’ve not seen ahead of the storm, and there Wednesday as is it prepared such dramatic changes in the were long lines at gas stations, for a hurricane with sustained forecast track as I’ve seen according to local media re- winds of 155 miles an hour. with this storm. I urge our ports. Hurricane warnings were in residents and visitors to take Hawaii has found itself in effect for the islands of Ha- this threat seriously and pre- the crosshairs of several hurri- wai’i and Maui as Hurricane pare for a significant impact.” canes in recent years, but the Lane headed toward the state. The weather service pre- last major one to hit the state Hurricane watches, a less se- dicted continued weakening was in 1992, when Hurricane vere designation, were in ef- but said Lane was expected to Iniki killed six people and fect for the islands of Oahu remain dangerous as it drew caused billions in damage. and Kauai. closer to the Hawaiian Islands. Hawaii’s Big Island, a popu- The National Weather Ser- Mr. Ige signed an emer- lar tourist destination, was hit vice downgraded Hurricane gency proclamation Tuesday with another major disaster in Lane Wednesday morning to a that will provide disaster relief May when the Kilauea volcano Category 4 Storm from Cate- if needed and granted leave to erupted, spewing lava and gory 5, the most intense level. nonessential state employees toxic gases into neighborhoods The unpredictability of the in Maui and Hawai’i counties and causing evacuations. The storm and the possibility of until the end of the week. volcanic eruption continued

MARIE ERIELsevere HOBRO FOR THE WALL STREET JOURNAL winds, flooding, power Schools in those counties were throughout the summer and Cars lined up to get gas Wednesday in Mililani in preparation for Hurricane Lane. outages and other damage had also closed until further notice. destroyed hundreds of homes.

The Breitling Jet Squad Jacques Bothelin Christophe Deketelaere Paco Wallaert

#SQUADONAMISSION A4 | Thursday, August 23, 2018 PWLC101112HTGKBFAM123456789OIXX **** THE WALL STREET JOURNAL. U.S. NEWS Lawmakers Calibrate Strategies After Plea

BY BYRON TAU his nomination, called for the will be there.” confirmation hearings to be Democratic Sens. Mazie WASHINGTON—Senate delayed as he continues to Hirono of Hawaii and Ed Mar- Democrats called for Republi- seek more documents on the key of Massachusetts said cans to halt confirmation nominee. they were canceling meetings hearings for Supreme Court It is “unseemly for the with Mr. Kavanaugh, calling nominee Brett Kavanaugh, cit- president of the United States his nomination illegitimate ing his own potential role in to be picking a Supreme Court due to the allegations against legal proceedings involving Justice who could soon be, ef- Mr. Trump.

President Trump, but didn’t fectively, a juror in a case in- Democrats have been look- JOSHUA ROBERTS/REUTERS; J. SCOTT APPLEWHITE/ASSOCIATED PRESS address whether they would volving the president himself,” ing at how Judge Kavanaugh GOP Sen. Lindsey Graham, left, said his party miscalculated in impeaching President Clinton in 1998. pursue any actions in Con- the New York senator said. might rule in any legal case Democratic Sen. Chuck Schumer, right, called for delaying hearings on President Trump’s high-court pick. gress against the president. involving Mr. Trump, amid Republicans, meanwhile, dual investigations into Mr. ber could open its own inves- then, overestimating the pub- take action to respond to this urged restraint and warned Cohen and the separate probe tigation, or try to censure Mr. lic’s appetite for a divisive po- culture of corruption that has Democrats not to overplay Republicans urged by special counsel Robert Trump. Or the House could litical trial that brought Wash- taken hold under Mr. Trump their hand. restraint and warned Mueller. initiate impeachment proceed- ington to a halt in late 1998 and Republican congressional The comments came a day Judge Kavanaugh wrote a ings, the process by which a and early 1999. majorities,” said Rep. Jerrold after the president’s former Democrats not to law-review article in 2009 president is removed from of- “I’ve learned once before— Nadler of New York, the top lawyer, Michael Cohen, told a overplay their hand. that argued Congress should fice after a trial in the Senate. you can feel passionate about Democrat on the House Judi- federal judge that Mr. Trump pass a law that would defer Republicans currently con- your case, but if you can’t con- ciary Committee. directed him during the 2016 civil suits and criminal probes trol both chambers, but polls vince the people, you’re not Republicans said Democrats campaign to buy the silence of involving a sitting president. show Democrats are favored going to be successful,” Mr. will focus on impeachment at two women who allegedly had Republicans control the The Justice Department has to win seats in the House in Graham said. “The public was their own peril in the coming affairs with him. Senate, and there was no sign long taken the position that a the November midterm elec- with Clinton.” midterm elections. Mr. Trump has denied that they planned to delay the sitting president can’t face tions. In the immediate aftermath “I have some confidence those affairs, and denied tell- hearings, set to start Sept. 4. criminal charges while in of- As a House member in of the revelations in court by that our Democratic friends ing Mr. Cohen to pay the two “This is a desperate and pa- fice because such a step would 1998, Sen. Lindsey Graham (R., Mr. Cohen, top Democrats pro- are going to overreach and women to prevent them from thetic attempt by Democrats be too disruptive to the work- S.C.) was an enthusiastic proceeded cautiously, tamping this will be all about impeach- talking. to obstruct a very highly qual- ings of government. ponent of the impeachment of down talk of impeachment but ment,” said Sen. John Cornyn Senate Democratic leader ified nominee,” White House As a result, any immediate President Bill Clinton. saying Congress must hold Mr. of Texas, the No. 2 Republican Chuck Schumer, who met with press secretary Sarah Sanders action related to Mr. Trump With the benefit of hind- Trump and his associates ac- in the chamber. Mr. Kavanaugh on Tuesday said. “The hearing date has would likely have to come sight, Mr. Graham noted that countable. —Natalie Andrews and has said he would oppose been set and Judge Kavanaugh from Congress. Either cham- Republicans had miscalculated “Democrats are poised to contributed to this article.

Holocaust survivor. Inside Tracking the Michael Cohen pleaded guilty to campaign-ﬁnance violations related to two payments Mr. Cohen’s father urged him made in the ﬁnal months of the 2016 election campaign to women who alleged they not to protect the president, say- Payments had sexual relations with Donald Trump. ing he didn’t survive the Holo- Cohen’s caust to have his name sullied by Mr. Trump, according to a per- Payments made to How Cohen got paid back son who was told about the con- Guilty Plea versation. The elder Mr. Cohen KAREN MCDOUGAL STEPHANIE CLIFFORD Mr. Cohen sought reimbursement for... couldn’t be reached for com- ContinuedfromPageOne Stephanie Clifford ment. on the discussions with prosecu- payment Connects Ms. tors. Clifford’s $130,000 For weeks, the president had Sending signals lawyer with been distancing himself from Mr. Tips off On June 20, Mr. Cohen Cohen, including by stopping stepped down from his position paying his longtime attorney’s le- ‘tech services’ as the Republican National Com- gal fees, making clear amid the $50,000 mittee’s deputy finance chairman pressure that he was on his own. David Pecker David Pecker $35 wire transfer fee and tweeted his first public criti- Under oath on Tuesday, be- CEO of... Michael Cohen cism of his former boss: “As the fore a packed courtroom, Mr. Co- son of a Polish holocaust survi- hen created a spectacular mo- from... vor, the images and sounds of ment without parallel in promises to Establishes Fraudently this family separation policy American history when he con- reimburse shell company obtains [are] heart wrenching.” The fessed to two crimes that he said tweet no longer appears on Mr. he committed at the behest of American withdraws Trump Cohen’s Twitter account. the man who would become Media $131,000 Organization By then, Mr. Cohen had hired president. Inc. New York lawyer Guy Petrillo to which increased Mr. Cohen pleaded guilty to Essential Home Equity represent him in the Manhattan the payment eight federal crimes, including Consultants Line of Credit U.S. attorney’s probe. The choice tax evasion and making false for tax of Mr. Petrillo, who had once statements to a bank, capping a pays purposes and served as the chief of the office’s monthslong investigation into $150,000 added a bonus, criminal division, was seen as a for rights for a total of his business dealings and work pays $130,000 sign that Mr. Cohen hoped to co- to story of as Mr. Trump’s personal lawyer. for silence of $420,000 operate. Mr. Petrillo began to sig- For the president, it opens up a nal this intent to prosecutors. perilous new legal front. Shortly after Mr. Petrillo’s hir- Mr. Cohen in court said Mr. ing, Mr. Cohen told ABC News in Trump directed him to arrange an interview that his first loyalty payments during the 2016 cam- The payment was described as ‘legal expenses’ was to his family and country, paign to two women who alleged and divided into 12 monthly payments of not to the president. they had sexual encounters with $35,000 In July, a recording became Mr. Trump. The payments vio- public that Mr. Cohen surrepti- lated caps on campaign contribu- tiously made of a conversation he tions and a ban on corporate had with Mr. Trump in Septem- contributions, prosecutors said. ber 2016 about buying the rights On Wednesday, Mr. Trump Karen McDougal Stephanie Clifford to Ms. McDougal’s story. The denied he directed Mr. Cohen to a.k.a. Stormy Daniels president has denied the affair. buy the women’s silence. Contra- The president’s legal team had dicting earlier statements, the waived attorney-client privilege president said he became aware who claimed who claimed sexual on the recording, which had been of the payments to the women extramarital affair with encounter with seized in the April 9 raids. “later on” and said Mr. Cohen Michael Cohen The week of the recording’s was reimbursed from his per- release, the investigation ap- Donald Trump Source: U.S. District Court Southern District of New York sonal funds, not his 2016 cam- Photos: Getty Images; Associated Press; Reuters peared to accelerate, people fa- paign coffers. THE WALL STREET JOURNAL. miliar with the investigation said. The investigation is continu- Federal prosecutors faced an ing, according to a person famil- were involved in both hush- ford payment, according to a hen, prosecutors said in a court comments by Rudy Giuliani, Mr. early September deadline to iar with the matter. money deals that formed the ba- person familiar with the episode. filing. Early this year, they also Trump’s lawyer, put distance be- charge Mr. Cohen. After that, Although the plea deal sis of Mr. Cohen’s guilty plea to Mr. Cohen was swearing loudly had subpoenaed Mr. Cohen’s for- tween the president and Mr. Co- they would have to wait until af- doesn’t require Mr. Cohen’s co- campaign-finance violations, as others on the boat were sip- mer accountant, Jeffrey A. Get- hen and further alienated the at- ter the midterm elections, under operation, it leaves the door prosecutors said on Tuesday. ping their drinks, the person zel, who handled Mr. Cohen’s torney, the person said. Department of Justice guidelines, open for him to talk with both One was a $130,000 payment to said. personal and business tax re- Mr. Cohen told associates and or risk criticism of potentially af- the Southern District of New Stephanie Clifford—a former The search warrant executed turns. friends he felt Mr. Trump didn’t fecting the election’s outcome. York and special counsel Robert porn star who goes profession- on April 9 sought materials and have his back and vented that They had follow-up witness inter- Mueller. The court restricted Mr. ally by Stormy Daniels—as part information related to a wide the president hadn’t personally views scheduled as recently as Cohen’s travel to New York City; of an agreement to keep her range of communications, includ- Feeling exposed offered to pay his legal bills in this week, a person familiar with Chicago, where he owns taxi me- from publicly discussing an al- ing ones related to the payments In May, Michael Avenatti, a the Manhattan investigation, the investigation said, but can- dallions; South Florida, where his leged affair with Mr. Trump. The to Ms. Clifford and Ms. McDou- lawyer for Ms. Clifford, released which he said were “bankrupt- celed them as the plea agreement parents live; and Washington, payment was first reported by gal. At the same time, investiga- a memo detailing payments ing” him. came together over the weekend. D.C., where the special counsel is The Wall Street Journal in Janu- tors subpoenaed Mr. Pecker, made to Mr. Cohen from compa- Mr. Cohen’s troubles in- Given the Justice Depart- based. ary. American Media and the Trump nies including AT&T Inc. and No- creased in May, when Evgeny ment’s policy of not indicting sit- The deal doesn’t preclude fur- The second was a $150,000 Organization, Mr. Trump’s busi- vartis AG, as well as an invest- “Gene” Freidman, a New York ting presidents, a guilty plea from ther prosecutions, including payment to former Playboy ness. ment firm linked to a Russian City taxi mogul who managed Mr. Cohen and his public implica- other charges against Mr. Cohen. model Karen McDougal for her Prosecutors had reason to be oligarch. Federal agents investi- taxi medallions owned by Mr. tion of Mr. Trump were among exclusive story of an alleged ex- concerned that without raiding gated whether Mr. Cohen lobbied Cohen and his relatives, pleaded the strongest outcomes prosecu- tramarital affair with Mr. Trump, Mr. Cohen’s office, “records Trump administration officials guilty to state criminal tax fraud tors could have hoped for, ac- On the yacht a story that was purchased by could have been deleted without on the companies’ behalf without and agreed to cooperate with cording to former federal prose- Prosecutors built their case American Media in August 2016 record and without recourse for registering as a lobbyist, the federal prosecutors in their cutors. For prosecutors, the guilty partly by using materials seized at Mr. Cohen’s urging, and then law enforcement,” according to a Journal previously reported. probe of Mr. Cohen. plea meant they could avoid a in April 9 raids of Mr. Cohen’s never published. The payment court filing. Initially, Mr. Cohen seemed By then, prosecutors and the contentious trial and free up re- home, office and hotel, including was first reported by the Journal Prosecutors in the Southern unlikely to turn on the president. Internal Revenue Service had fo- sources to pursue other investi- recordings and other items that in November 2016. District said the investigation Although their relationship was cused on Mr. Cohen’s personal gations. provided evidence of campaign- On April 5, days before the into Mr. Cohen was, in part, a re- at times turbulent, Mr. Trump income taxes. In conversations On Monday, Manhattan fed- finance violations. raids, Mr. Trump told reporters ferral from the special counsel’s appreciated Mr. Cohen’s absolute with a potential witness in June eral prosecutors filed a court Investigators quickly zeroed on Air Force One he didn’t know office. It isn’t clear when the re- loyalty. On the day of the raids, and July, investigators asked document, in a case then labeled in on Mr. Cohen’s relationship about the payment to Ms. Clif- ferral took place, or if the office Mr. Trump called the move a “very pointed” questions about as U.S. v. John Doe, indicating a with American Media, including ford, and referred questions was already investigating Mr. Co- “disgrace” and a “witch hunt.” various tax filings, according to a guilty plea was forthcoming. its role brokering deals on behalf about the matter to Mr. Cohen. hen when the referral came Soon after the April raids, Mr. person familiar with the conver- By Tuesday night, hours after of Mr. Trump. Mr. Pecker had “You’ll have to ask Michael Co- through. Cohen’s relationship with Mr. sations. Mr. Cohen implicated Mr. Trump been an open supporter of Mr. hen,” Mr. Trump said. “Michael The special counsel’s office Trump began to deteriorate. “They knew what they in a possible crime, one of Mr. Trump’s candidacy. Prosecutors is my attorney.” was examining Mr. Cohen’s fi- The estrangement began over wanted, they knew what they Cohen’s lawyers, Lanny Davis, ap- say Mr. Pecker offered to help Mr. Cohen, who that night nances since at least October legal bills, said a person who has had, and they went after it,” the peared on cable news shows to keep quiet negative stories about was staying aboard the yacht of 2017, according to a person fa- spoken with Mr. Cohen about the person said. say Mr. Cohen wouldn’t accept a Mr. Trump that might come to Trump donor Franklin Haney, miliar with the matter. matter. The Trump family cov- In late June, Mr. Cohen openly pardon from Mr. Trump and “is the National Enquirer, a practice which was docked in Miami, Prior to the raids, investiga- ered part of Mr. Cohen’s legal broke with Mr. Trump. more than happy to tell the spe- in the business known as “catch grew irate on the ship soon after tors had already obtained covert fees after the raids, but then A personal turning point for cial counsel all that he knows.” and kill.” Mr. Trump made his remarks search warrants on multiple stopped paying. Mr. Cohen was a conversation —Michael Rothfeld contributed American Media executives distancing himself from the Clif- email accounts used by Mr. Co- Mr. Cohen felt exposed. Public with his father, Maurice Cohen, a to this article. THE WALL STREET JOURNAL. **** Thursday, August 23, 2018 | A5 U.S. NEWS Backlog Stalls Veterans’ Appeals Ohio State Suspends Federal agency tries of the regional VA offices that to speed up, improve handle disability claims. “If the veteran is tenacious, the Coach for a clogged process for cutting of the corner will fi- disability rulings nally be caught, but a lot of veterans don’t appeal.” 3 Games VA officials dispute the as- BY BEN KESLING sertion that employees are tak- BY RACHEL BACHMAN ing shortcuts or that veterans WASHINGTON—Hundreds are being harmed. But the VA’s Ohio State University sus- of thousands of veterans face Office of Inspector General pended football Coach Urban yearslong delays in their ap- concluded in a report this year Meyer without pay Wednes- peals of disability rulings be- that the department “did not day through Sept. 2 and for cause of a backlog of cases dedicate sufficient resources to the Buckeyes’ first three choking the Department of timely address appeals” as it games of the season after Veterans Affairs, but a new pushed initial claims through finding in an investigation round of efforts aims to im- the system faster. that Mr. Meyer and Ohio State prove and speed up the An inspector-general report athletic director Gene Smith claims-and-appeals process. issued this week showed that “went too far” in their efforts The backlog causes a num- a 2016 procedure change in- to help an assistant coach ac- ber of problems, according to tended to streamline the cused of domestic violence. the department’s inspector claims process ended up leav- Ohio State suspended Mr. general and veterans advo- ing complex claims being de- Smith without pay from Aug. cates, as well as VA statistics. cided by undertrained VA em- 31 to Sept. 16. The two men

Rushed rulings on initial WILLIAM DESHAZER FOR THE WALL STREET JOURNAL (2) ployees. kept their jobs after Ohio claims can be riddled with er- Veterans say the process is State concluded that neither rors. Veterans who appeal Lawrence Acree appealed the confusing, and they often have “violated any policy, rules, their cases typically wait be- VA’s rejection of his disability to turn to lawyers for help law or contractual obligation” tween three and seven years claims. He awaits a decision. navigating the process. in connection with the accu- for resolution, according to Navy combat veteran Law- sations against former wide the Government Accountabil- new documentation and medi- rence Acree appealed his case receivers coach Zach Smith. ity Office. An inspector gen- cal examinations. The outcome after the VA rejected his claims The findings, announced eral report also found that one of the appeal can determine for multiple disabilities he said just before a Wednesday night in 14 veterans dies while the amount of disability pay- stemmed from his service, in- news conference, concluded a awaiting a decision on their ments and access to future cluding psychiatric illness. dramatic three weeks that disability-claim appeal. treatment. When he showed up for the saw one of the nation’s most The appeals system remains A disability claim is first appeals hearing, though, he successful football coaches “horribly flawed,” said Chief decided at one of 56 regional said he unwittingly forfeited fighting for his job as trou- Judge Robert Davis, the top offices, and the VA decided 1.4 many of his claims because he bling allegations swirled judge on the U.S. Court of Ap- million claims for disability was confused by the process. around him. peals for Veterans Claims, the benefits in 2017. Of those It took a pro bono lawyer and “We believe Urban Meyer independent federal court that claims, more than 90,000 years of litigation for his case did not and does not condone oversees and reviews rulings cases were formally appealed to be heard in June by a fed- domestic abuse,” Ohio State from the VA’s internal appeals to a VA board. In those cases, eral court—highlighting an- President Michael Drake said. board. The pressure to deal the board found flaws or re- other layer of complexity: Mr. Meyer apologized and with a heavy backlog of dis- TheVAisontracktopro- appeals modernization law quested more information for Many veterans who appeal said, “I am fully aware that ability claims “contributes to cess a record 80,000 appeals will make needed changes to 57%, VA statistics show. their cases don’t have lawyers, I’m ultimately responsible for poor decision making,” he said in 2018, spokesman Curt Cash- the system, he added, but oth- Judge Davis said his higher- because technically, the pro- this situation that has harmed in an interview. our said, thanks to the in- ers remain skeptical. level veterans appeals court cess doesn’t require them. this university as a whole. At VA officials say they have creased funding and person- “We are anxiously awaiting hears about 4,000 cases a “I can see why a lot of vet- every juncture, I gave Zach worked hard to process dis- nel. As of August 2018, the to see if the appeals modern- year, and of those, about 3,000 erans get frustrated and give Smith the benefit of the ability claims—and appeals to appeals backlog stood at about ization act will make any last- are found to have some sort of up, and a lot of them don’t feel doubt.” those claims—faster. The de- 238,000, according to VA data. ing change and provide any error, problem or need for they have anywhere to turn,” He added that he “should partment in recent years has A program designed by the lasting benefits for veterans,” more information. Mr. Acree said. “It was frus- have demanded more from added funding and personnel U.S. Digital Service, a govern- said Judge Davis. “I’m not sure Employees are rewarded for trating, especially with me him and recognized red flags.” and has invested in technology ment tech incubator, also that’s the case.” speed rather than quality, said taking different medications, Gene Smith said he was the to increase its efficiency. Last streamlined the process, re- The disability-claim process Bart Stitchman, executive di- and things were a little con- first one contacted about the year, President Trump signed duced clerical errors and al- can be complicated. Many vet- rector of National Veterans Le- fusing for me. When I got de- 2015 allegation against Zach the Veterans Appeals Improve- lowed judges to more quickly erans claim multiple injuries, gal Services Program, a non- nied a couple of times, I got a Smith and that he had taken ment and Modernization Act read a case. each of which requires its own profit that focuses on VA bit of depression.” it to Mr. Meyer but that the of 2017, which will go into full “VA believes veterans are decision. As a veteran’s case benefits issues. Mr. Acree won his appeal but two didn’t share it with other effect next year and will create waiting too long for appellate works its way through the sys- “Time pressure to get his case isn’t closed. His dis- Ohio State administrators. rapid-appeals lanes to speed decisions,” Mr. Cashour said. tem, claimed disabilities can claims out the door causes ability claim goes back into line. —Brian Costa the process. The department expects the worsen or change and require them to cut corners,” he said He is still awaiting a decision. contributed to this article. Trump Denies Role In Payments ContinuedfromPageOne In 2008, buying from a magazine publisher the rights to the story of the U.S. Government the second woman, a former Playboy model, about an affair with Mr. Trump. used Palantir to: On Capitol Hill, both parties began to assess how Mr. Co- hen’s revelations could affect the November elections, in which Democrats need to flip Combat terrorism. 23 seats to take the House and Republicans are seeking to hold their narrow Senate majority. Mr. Cohen’s guilty plea to tax

fraud and campaign finance vi- EDUARDO MUNOZ/REUTERS olations—on the same day for- The White House and both parties contended with the fallout mer Trump campaign manager from Michael Cohen’s guilty plea to campaign-finance charges. In 2018, Paul Manafort was found guilty by a federal jury in Virginia of major development,” said Rob questions about the president tax evasion and other crimes— Jesmer, a former executive di- to focus on more popular is- our global partners heightened the GOP challenge. rector of the National Republi- sues. Sen. Heidi Heitkamp (D., “It’s not helpful to Republi- can Senatorial Committee. “But N.D.), asked about the latest cans,” said Sen. Lindsey Gra- there is so much noise every Trump controversies, said she use Palantir to: ham (R., S.C.), who at times has day. I wonder how many minds was “staying in our lane and allied with the president. “It’s are actually changed.” doing our job.’’ just one more narrative of peo- Mr. Trump’s problems could Charlie Kelly, executive di- ple around the president doing bolster Democrats’ campaign rector of House Majority PAC, bad things. The economy’s go- message that giving them con- the House Democrats’ super ing strong, we’ll have our side trol of the House would coun- PAC, said “kitchen table” issues Prosecute financial crimes. of the story, but I don’t think terbalance the Trump adminis- are “still our strongest message you have to be a political genius tration and GOP-held Senate. and our strongest case with to understand that stuff like Some Democrats on the voters.” Safeguard supply chains. this doesn’t help.” left—most prominently, billion- Mr. Trump is expected to Of particular worry for the aire environmentalist Tom campaign widely for GOP candi- GOP are independent voters Steyer—had already been call- dates this fall. He learned of Mr. Track illegal firearms. they need in suburban battle- ing for the president’s impeach- Cohen’s guilty plea and Mr. ground districts viewed as key ment and arguing that the Manafort’s conviction aboard to control of the House. party should push more aggres- Air Force One on his way to a Fight child exploitation. “We’re on the cusp of Labor sively on that front. campaign rally in West Virginia Day. This is when the electorate But most party leaders have Tuesday and returned to the starts to lock in. It’s not good,” eschewed impeachment talk in White House that evening in a Identify cyber threats. said Ken Spain, a former ad- ahead of the midterms. They “rotten” mood, further irritated viser to the National Republican see the 1998 midterms as a by what he felt had been a flat Congressional Committee. “It cautionary tale: Republicans, audience, according to people Combat terrorism. not only could accelerate the after pushing for Democratic close to the White House. movement of independents President Bill Clinton’s im- His frustrations were ampli- away from Republicans, It could peachment, lost five House fied by the fact that his lawyer, cement it.” seats, the first time since 1934 Rudy Giuliani, is golfing in A Wall Street Journal/NBC that the president’s party Scotland this week, people News poll in July found that in- gained seats in midterms. close to the president said. dependents, asked which party House Speaker Newt Gingrich One person characterized they want to control Congress resigned. the White House strategy as after the 2018 elections, favored A drive for impeachment “carry on with business” and Democrats by a 22-percentage- also could galvanize Republican said aides weren’t concerned point margin. In polling during voters seeking to protect Mr. about the possibility of im- the first half of the year, Demo- Trump in an election season peachment. “On what? That Mi- crats were preferred by an 8- that has been notable for Dem- chael Cohen said he lied before, Quietly powering the institutions percentage-point edge. ocratic enthusiasm. Many Dem- and now he’s telling the truth?” Some Republicans argued ocratic senators up for re-elec- the person asked. we depend on most. that the Cohen and Manafort tion are running in red states —Kristina Peterson, Natalie news would have little impact packed with Trump voters. Andrews and Peter Nicholas on GOP voters. “This a pretty Many of them are sidestepping contributed to this article. A6 | Thursday, August 23, 2018 ** THE WALL STREET JOURNAL. U.S. NEWS

Medal of Honor Awarded Posthumously Treasury Sets Sights On State Tax Credits

BY RICHARD RUBIN the regulations, signaling their release is imminent. WASHINGTON—The Trump “The expectation I have is administration is finishing that the IRS would disallow what is expected to be a crack- the recharacterization of a tax down on state laws circumvent- payment as something else, as ing the new $10,000 federal cap a charitable contribution,” on individual deductions for said Jared Walczak, a senior state and local taxes. policy analyst at the conserva- The rules are likely to halt a tive-leaning Tax Foundation. strategy embraced in New The biggest open question York, New Jersey and Con- is what happens to similar tax necticut, high-tax states where breaks in other states. high-income residents are get- For instance, Arizona, Ala- ting pinched by the cap. bama, Georgia and South Car- Tax experts are watching olina let taxpayers get a 100% the rules for how the Treasury state tax credit for donations Department handles similar to charities supporting private credits that predate last year’s schools. That is more generous GOP tax law, including pro- than the New York, New Jer- grams in Alabama, Arizona, sey and Connecticut proposals, Georgia and South Carolina. and those programs have im- Though New York, New Jer- portant political backing from sey and Connecticut have dif- Republicans and the conserva-

CHIP SOMODEVILLA/GETTY IMAGES ferent approaches, all let tax- tive school-choice movement. FALLEN HERO President Trump presents the family of Air Force Tech. Sgt. John Chapman, who was killed in Afghanistan in 2002, the payers claim a partial credit Before the new tax law, Medal of Honor on Wednesday at the White House. Sgt. Chapman ‘gave his life for his fellow warriors,’ the president said. against state or local taxes if those programs generally didn’t they make donations to gov- provide a federal tax advan- ernment-backed charities. Tax- tage, because taxpayers turned payers, on their federal re- deductible state taxes into de- turns, would claim those ductible charitable contribu- DNC Reports Attempted Hacking donations as deductible chari- tions. They directed how their table contributions—which state taxes were spent but of- don’t face the new cap. ten didn’t pay less in total tax. The Democratic National cated attempt to hack into our an emailed statement. threats as we head into mid- Treasury officials have But now those programs Committee, which was hacked voter file and we are treating Such phishing attempts term elections and we must warned for months that they are pitched by accountants as by Russian intelligence officers it as such,” said a Democratic have been routine for over a remain vigilant in order to would block these work- savvy tax-avoidance moves to during the 2016 presidential official in an email message. decade against political cam- prevent future attacks,” Mr. arounds, and the Office of turn nondeductible state taxes campaign, has contacted the CNN reported the attempted paigns and affiliated organiza- Lord said. Management and Budget re- into deductible charitable con- Federal Bureau of Investigation intrusion earlier Wednesday. tions. But this incident comes He said the VoteBuilder da- cently finished its review of tributions. after an unsuccessful attempt The FBI declined to comment. amid repeated warnings from tabase contains the DNC’s to access a voter database The fake page, known as a senior U.S. intelligence officials “most sensitive information.” maintained by the organization. phishing page, is a first step in that Russia is intent on inter- Department of Homeland The DNC was alerted on many cyber-intrusion attempts fering in the 2018 midterm Security Secretary Kirstjen and widely used by both crimi- elections. Russia denies in- Nielsen said the investigation By Robert nals and state-sponsored ac- volvement in election hacking. into the DNC phishing attempt McMillan, Alexa Corse tors. The technique, among On Monday, Microsoft Corp. was in its early stages. and Dustin Volz other things, attempts to obtain said it took down six internet The blocked intrusion at- authentic passwords from peo- domains registered by a Rus- tempt and the cooperation Tuesday by the computer-secu- ple who believe they are sign- sian hacking group and used in with federal authorities rity firm Lookout Inc., which ing on to the legitimate site. a phishing campaign against “shows our system is work- uncovered a replica of the login Lookout, which isn’t associ- the U.S. Senate and conserva- ing,” Ms. Nielsen said at a page to the DNC’s Votebuilder ated with the DNC, discovered tive-leaning think tanks. briefing on election security. database during an online scan. the fake page using the com- Neither Lookout nor Digital- Emails stolen from the DNC VoteBuilder is a system pany’s new phishing-detection Ocean Inc., the internet-service by the Russian hackers in used by the Democratic Party platform. provider that hosted the fake 2016—acquired through phish- and associated campaigns to In this case, the phishing login page, could say whether ing campaigns—were later pub- collect voter data and track attempt was unsuccessful as it was created by criminals or lished online by the antisecrecy other campaign activities. no one gained unauthorized state-sponsored actors. group WikiLeaks and others,

“We believe that this was access, said Bob Lord, the “This attempt is further which U.S. intelligence agencies ANDREW HARRER/BLOOMBERG NEWS the beginning of a sophisti- DNC’s chief security officer, in proof that there are constant said were fronts for Russia. Treasury Secretary Steven Mnuchin, center, in Washington last month.

October23,2018|SanFrancisco,CA

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Beijing’s struggle to credit grew as rapidly as China’s Obstacles to progress the fight isn’t settled by No- maintain economic over a five-year period, “only Sputtering Engine abound. For starters, the two vember—the goal of Beijing five ended without a major sides remained at loggerheads and some in the Trump ad- growth hangs over bid slowdown or financial crisis.” China’s value-added industrial Nonrural ﬁxed-asset investment, over what to discuss at this ministration—he figures it will output, year-over-year change year-over-year change to settle trade battle Stepped-up government week’s talks, a person briefed last at least another year. spending, powered by easy fi- 30% 25% on the matter said. Then it would make sense to nancing, exacerbates China’s Chinese officials said they move factories out of China to The U.S. and China kicked off debt woes and crowds out 25 were ready to discuss China’s service the U.S. market and two days of talks in Washington credit available for businesses 20 exchange-rate policy, a U.S. pri- avoid 25% tariffs, he said. aimed at settling an escalating and consumers, some econo- 20 ority. In Beijing on Tuesday, Li In the past, Beijing has trade battle, with the U.S. claim- mists said. “The market is wor- 15 Bo, a senior official at China’s stepped up infrastructure and ing the advantage because Bei- ried about the risk of stagfla- 15 central bank, said China won’t property investment to spur jing is struggling to keep its tion,” said Jiang Chao, chief devalue the yuan, which is growth. But soaring home economic growth from faltering. economist at Haitong Securities 10 10 down 10% since April, as a way prices in many areas of the Co. in Shanghai. Chinese stocks, to hit back at the U.S. on trade. country make the government 5 By Lingling Wei in bonds and the yuan have all de- “The yuan’s exchange rate is wary of encouraging more Beijing and Bob Davis clined in recent weeks. 5 decided by the market,” he said. real-estate investment. In fact, 0 in Washington The U.S. has focused on Others tracking the talks Mr. Xi has pledged to continue China’s weakness in the run-up –5 0 said they expected Beijing to to rein in housing bubbles. Beijing has tried a number of to the talks that started in promise to buy more U.S. Beijing’s campaign to slow approaches to strengthening its Washington on Wednesday. Last 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’11’10’12 ’13 ’14 ’15 ’16 ’17 ’18* goods—essentially sweetening borrowing is taking a toll on in- economy in the short term, in- week, National Economic Coun- Source: National Bureau of Statistics via Wind Information an earlier offer to boost pur- vestment and consumption. For cluding relaxing credit controls cil Director Lawrence Kudlow *through July THE WALL STREET JOURNAL. chases by $70 billion. Mr. the first seven months of this and encouraging more lending said Beijing’s economy looked Trump rejected that offer. year, official data show, spend- and spending, especially on terrible. At the end of July, Rea- ing cloud over China’s economy new round of negotiations One sign of Beijing’s con- ing on factory machinery and highways, rail lines and other gan-era economist Arthur Laf- is a reason to delay negotia- would pry additional conces- cern about the impact of a public works cooled to its low- big-ticket government projects. fer, an adviser to President tions until additional U.S. tar- sions out of the Chinese. deepening trade conflict: Chi- est point in nearly two decades. But the actions threaten to Trump, sent to the White House iffs kick in, U.S. officials said. The talks are aimed at find- nese officials have been quiz- In July, growth in retail sales weaken the economy over the an economic analysis titled On Thursday, the U.S. will ing a way for both sides to zing big U.S. technology com- fell below market expectations. longer term, many economists “The Great Fall of China,” which put tariffs on $16 billion of Chi- tackle the dispute, officials in panies about whether they That said, Chinese officials warn. That is because China’s said U.S. tariffs on Beijing were nese goods in addition to the both nations say, and could plan to move their production are likely to do their best to hit debt load has soared since producing “substantial risk of $34 billion in imports already lead to more rounds of discus- facilities out of China. Beijing official growth targets, which 2009, when Beijing was fight- derailing much of the past 50 targeted. By the end of Septem- sions designed to culminate in hasn’t offered incentives to is an important factor in how ing a global recession, and the years of growth in China.” ber, the U.S. could add levies on planned meetings between Mr. stay or threats if they leave, they are judged. Beijing has set trade fight may prompt Beijing For some in the administra- another $200 billion—about Trump and Chinese President some U.S. executives said. a growth target of about 6.5% to put off debt restructurings. tion, including White House half of overall Chinese imports. Xi Jinping at November’s multi- A U.S. technology executive for 2018. Last year, the econ- The International Monetary trade adviser Peter Navarro So far, Treasury Secretary lateral summits, including the said his firm’s relocation cal- omy grew 6.9%, though many Fund said this year that in the and U.S. Trade Representative Steven Mnuchin has Mr. Group of 20 and the Asia-Pacific culation depends on how long economists believe official 43 cases internationally where Robert Lighthizer, the darken- Trump’s blessing to see if a Economic Cooperation forum. the trade battle continues. If numbers are inflated. Nafta Talks Near Accord on Key Points, Mexico Says BY SANTIAGO PÉREZ ments for how much of an AND JOSHUA ZUMBRUN auto must be manufactured in New Leader to His administration won’t sole marketer of oil produced North America for vehicles to propose changes to Mexico’s by private firms under produc- WASHINGTON—U.S. and be imported free of tariffs. Pause Oil Auctions constitution, which was tion-sharing contracts. Mexican officials are close to A person familiar with the amended in 2013 to allow for Rocío Nahle, an opponent of resolving some of the sticking talks said both sides are now private investment in oil and the energy overhaul who has points that have stalled nego- very close on those auto rules MEXICO CITY—Mexican gas, but will use its majority in been nominated by Mr. López tiations to overhaul the North of origin, raising manufactur- President-elect Andrés Manuel Congress to tweak the hydro- Obrador as his future energy American Free Trade Agree- ing content within Mexico, the López Obrador will hold off carbons law, the people said. minister, didn’t respond to calls ment, Mexico’s chief trade ne- U.S. and Canada to 75% from auctioning new oil blocks for at Planned changes would let seeking comment. gotiator said on Wednesday. the current 62.5%. least two years after taking of- Pemex choose partners to de- The legal changes would “We hope that we’ll have a The two sides have also fice, and plans to modify laws velop reserves without needing mean that the approval of the solution” within a couple of been discussing how much of a to bolster the role of state oil the favorable opinion of oil reg- National Hydrocarbons Commis- days, said Ildefonso Guajardo, vehicle’s content would have company Petróleos Mexicanos, ulators, allow the government sion won’t be needed to directly Mexico’s economy minister be- to come from factories that according to two people with to grant Pemex new oil blocks grant new oil blocks to Pemex.

fore entering the offices of SASHENKA GUTIERREZ/EPA/SHUTTERSTOCK pay higher wages. knowledge of the situation. directly, and make Pemex the —Juan Montes U.S. Trade Representative Mexican President-elect Andrés If a deal on autos can be Robert Lighthizer in a last- Manuel López Obrador sealed, that would remove a minute dash to reach an agree- major stumbling block to an ment before the end of this breakthrough is really when overall agreement. month. He offered no details. you finish everything.” “We’d reserve the right to U.S. officials didn’t respond Trump administration offi- review the details, but the di- to a request for comment. cials hope a “handshake deal,” rection of the discussion has After Wednesday’s talks or a kind of verbal agreement, been very positive,” said Matt ended, Jesus Seade, the in- could be announced on Thurs- Blunt, president of the Ameri- coming trade negotiator for day, Politico reported late can Automobile Policy Council Mexican President-elect An- Tuesday. which represents the Big drés Manuel López Obrador, A deal between the two Three U.S. auto makers. “We said he was “optimistic” of countries on some trade items certainly hope they’re very reaching a deal on Nafta but could act as catalyst for solv- close on auto rules of origin that it was premature to spec- ing more complex issues that and completing an agree- ify the timing. He said “it would also include Canada. ment.” could be that we finish every- Canadian Foreign Minister thing between the U.S. and Chrystia Freeland said Mexico this week.” Talks are Wednesday that she has been set to resume on Thursday. Negotiators rush to in close contact with Mexico Trade negotiators from reachanaccord and the U.S. this week and is both countries want to sort encouraged by what she’s out bilateral trade issues in before a new Mexican heard, including on rules of the treaty before Canadian ne- leader takes office. origin for cars. gotiators rejoin talks, possibly “We’re hearing optimism in coming days. from them about the work All three countries are rac- they’re getting done on the bi- ing against the clock. Under Those issues include Trump lateral U.S.-Mexico issues, very GREAT RATES on CERTIFICATES U.S. law, Congress can only administration demands to central there is rules of origin vote on a new deal after 90 create a sunset clause that on cars,” she said. “What days, meaning the earliest would end the deal every five we’ve agreed with the U.S. and vote would come in late No- years unless explicitly re- Mexico is once the work on vember, just days before Mexi- newed—and remove the inter- these bilateral issues is done, can President Enrique Peña Ni- national arbitration panels then Canada is looking for- PENFED’S CERTIFICATE RATES UP TO etoleavesofficeonDec.1. that currently resolve com- ward to joining the negotia- 5X HIGHER THAN NATIONAL AVERAGE If all sides can’t agree by mercial disputes. tion and a swift conclusion of then, Mr. López Obrador It isn’t clear whether a deal the Nafta negotiations.” would almost surely want to between the U.S. and Mexico But a deal on auto rules have a say in a deal before he would include agreements on with Mexico would still leave ONE PENFED APY 2.45% signs it, potentially complicat- those demands. difficult unresolved questions YEAR NAT’L OVER 5X THE NATIONAL AVG* ing matters. Already, his camp Following Mexico’s presi- that are “not a complex tech- AVG has objected to Mexican nego- dential elections in early July, nical negotiation,” but rather .42% tiators’ stance on issues in- trade negotiators from the two “high-level, high-stakes politi- cluding energy. countries resumed talks in cal decisions,” said Antonio “We’ll try to cover the few Washington. Mexican officials Ortiz-Mena, senior vice presi- items that we still have ahead cited progress on U.S. de- dent at strategic advisory firm FIVE PENFED APY 3.00% of us,” Mr. Guajardo added. “A mands to increase require- Albright Stonebridge Group. YEAR NAT’L NEARLY 3X THE AVG 1.07% NATIONAL AVG*

APY 1.00% 2.00% 3.00%

*Source as of 7/26/18: www.fdic.gov/regulations/resources/rates/

We have a proud history of serving those in the Armed Forces, Department of Defense, Department of Homeland Security, Military Associations, eligible veterans and retirees, and their families. You may also qualify through membership in select organizations within our ﬁeld of membership. PenFed.org To receive any advertised product, you must become a member of PenFed Credit Union. PenFed Annual Percentage Yield (APY) is current as of August 1, 2018, and is subject to change. Minimum opening deposit is $1,000. A penalty will be imposed for early withdrawal. This will reduce earnings on the account. For all certificates funded by ACH, funds cannot be withdrawn within the first 60 days of the account opening. © 2018 Pentagon Federal Credit Union ERIC BARADAT/AGENCE FRANCE-PRESSE/GETTY IMAGES Mexico’s chief negotiator, Ildefonso Guajardo, seen in Washington after talks ended on Wednesday. A8 | Thursday, August 23, 2018 **** THE WALL STREET JOURNAL. WORLD NEWS South Korea Pushes Engagement Seoul Takes Risks BY ANDREW JEONG By Downsizing, SEOUL—As the U.S. and North Korea track an unsteady course toward a non-nuclear North, Seoul is trying to sus- U.S. General Says tain the engagement by deploying a veteran adviser with BY ANDREW JEONG ing with the North to close the distinction of being re- some guard posts along the spected in both Washington SEOUL—South Korea’s plans DMZ and the military demarca- and Pyongyang. to dismantle some defenses tion line, the actual border. Moon Chung-in, special ad- along the border with North Gen. Brooks, who oversees viser to South Korean Presi- Korea would introduce new se- some 28,500 U.S. forces in Ko- dent Moon Jae-in, said in an curity risks, the top U.S. gen- rea, praised those plans as a interview that U.S.-North Ko- eral on the peninsula warned, tension-reducing measure. But rea talks are stalled—and that as he vowed to maintain mili- he also expressed worries. Seoul aims to prod both sides tary readiness following an “I have some concerns about to keep moving in the direc- end to the allies’ exercises. what that means militarily for tion of disarmament and The remarks Wednesday by the ability to defend along the peace. Gen. Vincent Brooks came af- Military Demarcation Line,” While “the U.S. is demand- ter Seoul said last month that Gen. Brooks said in Seoul. “I ing North Korea front-load it plans to downsize its mili- believe there is a reasonable vows to declare and accept in- tary by over 100,000 men by amount of risk involved in this, spections of its nuclear arms” 2022 and pull back army divi- not an excessive amount.”

before easing sanctions, South AKIO KON/BLOOMBERG NEWS sions from the demilitarized South Korea’s defense min- Korea encourages mutual con- Special adviser Moon Chung-In speaking at The Wall Street Journal CEO Council in Tokyo in May. zone by a few miles. The steps ister has said any dismantling cessions that can build trust— are aimed at reducing tensions of the guard posts would be and is trying to ease the pro- Moon’s recent published arti- reconsider conducting U.S.- diplomatic circles said of Mr. with the North while address- reciprocated by North Korea cess, he said. South Korea, for cles for praise, Mr. Lee said. South Korean military exer- Moon. “It’s not always clear ing a manpower shortage. under a bilateral agreement. instance, has offered to host He lived in the U.S. for cises in return for a halt to when he’s speaking on guid- The demilitarized zone sep- Hwang Jin-ha, a retired talks between U.S. and North nearly two decades, studying Pyongyang’s missile tests. The ance from the Blue House or arating the Koreas is a heavily South Korean lieutenant-gen- Korean officials. and later teaching at colleges comments enraged South Ko- somebody else. But it’s pretty mined no-man’s-land of eral who later became a con- President Trump has re- from 1978 until returning to rean conservatives. The gov- clear that he is relevant.” barbed wire and guard posts, servative lawmaker, said fewer peated assurances that North Seoul in 1994. His son is an ernment in Seoul didn’t pub- In late April, days after the with thousands of armed in- guard posts would mean “the Korean leader Kim Jong Un is American citizen. licly support Mr. Moon’s first inter-Korean summit, Mr. fantrymen on each side. Spo- loss of eyes on the battlefield.” committed to denuclearization, “The South Korean presi- comments at the time. Moon traveled to New York radic clashes have occurred Gen. Brooks said President after the two met in Singapore dent has relatively few North The U.S. has traditionally and Washington to hear what since the Korean War ended in Trump’s decision to scrap in June. But some U.S. officials, Korea experts who are fluent called its exercises with South key American foreign-affairs 1953, but an improvement in combined military exercises such as national-security ad- English speakers and who Korea “defensive in nature,” specialists had to say about cross-border relations this with South Korea—announced viser John Bolton, have ex- know Americans well,” said a although Mr. Trump in June the event. He also huddled year has raised hopes for after his meeting with North pressed skepticism. North Ko- former senior U.S. diplomat in with former Secretary of State peace and led to negotiations Korean leader Kim Jong Un in rea has said it dismantled a Seoul. Henry Kissinger. between North Korea and the June—would deprive the U.S. nuclear testing site, but outside “This social capital is im- Daniel Sneider, a Stanford U.S. on eliminating Pyong- military of a critical tool for monitors accused Pyongyang of mensely valuable to the Moon Adviser with many University lecturer who has yang’s nuclear arsenal. improving preparedness. But failing to halt development of administration, because [Moon friends and a flair for known Mr. Moon since the As South Korea seeks to sus- the four-star general said he nuclear weapons. Chung-in] has friends and col- early 2000s, said the South tain the detente, Seoul’s defense would find other ways to stay Meanwhile, Seoul is prepar- leagues across the political controversy tries to Korean is a networker who ministry has said it is negotiat- battle-ready. ing for the third meeting this spectra in almost every coun- keep detente rolling. knows how to sell Seoul’s year between Messrs. Moon try that matters to the Korean agenda. “He is there as a pub- and Kim, to be held in Pyong- issue,” said Peter Hayes, direc- licist more than as a policy yang in September. The U.S. tor of the Nautilus Institute maker,” he said. Embassy in Seoul declined to for Security and Sustainability, said they were “provocative,” Mr. Moon has drawn criti- comment on progress of en- a research center in Berkeley, a term commonly used by cism, however, for comments gagement with the North. Calif., who coedited a book North Korean state media. that appeared to rationalize Mr. Moon, 67 years old, has with Mr. Moon. Months later, the proposi- North Korean aggression, such built relationships in both Mr. Moon has played a role tion became policy when Mr. as when he said the former countries over the years. In in steering public debate, and Moon sought to delay and South Korean government pro- 2000, North Korea allowed him potentially influencing policy downsize the exercises. In voked a North Korean artillery to appear alongside South Ko- makers, through public com- June, Mr. Trump said he was barrage in 2010 that destroyed rea’s future unification minis- ments that have tended to suspending joint exercises and homes and killed four South ter, Lee Jong-seok, on a panel foretell the Seoul govern- wanted to bring U.S. forces Koreans. in a live television broadcast ment’s direction. home. In the interview, Mr. Moon from Pyongyang. In talks with During a period of height- “I would definitely say he’s stressed that he considered

South Korea, Pyongyang’s dele- ened tension with North Korea close” to the South Korean the attack unjustifiable, but WOOHAE CHO/GETTY IMAGES gates often single out Mr. last year, he said Seoul should president, a person in Seoul’s defended his past comments. South Korea soldiers patrol a beach in the border village of Hyeonnae. FROM PAGE ONE

retail analyst at Forrester Re- A robust U.S. economy is search. “The biggest challenge spurring more people to open Target is to continue growing in a re- their wallets, boosting retail- tail environment that is funda- ers such as Home Depot Inc. mentally stable.” and Nordstrom Inc. Earlier Rides Many retailers have been this month, Walmart Inc. said gaining online sales at the ex- its quarterly sales rose at the pense of margins, said Simeon fastest rate in over a decade. Surge Hyman, global investment Some retailers also have been ContinuedfromPageOne strategist at ProShares, which picking up market share from some said that while they runs an exchange-traded fund competitors such as J.C. Pen- credit Target and other chains called the Decline of the Re- ney Co. and Toys “R” Us Inc. for bouncing back from an ex- tail Store ETF. “I’m certainly that have closed locations. tended swoon, the true test is not one to declare that any of Target said its comparable ahead. the retailers that have had a sales, meaning those from “The cost of doing business decent quarter have found a stores that have been open for as a retailer is all the costs permanent strategy,” he said. at least 13 months and from you had in the past and then “That’s going to take a lot lon- digital channels, increased some,” said Sucharita Kodali, a ger to play out.” 6.5% in the quarter ended Aug. 4, representing the company’s strongest quarterly performance since 2005. Total revenue climbed 6.9% to $17.78 billion, and the company raised its full-year earn- EXTRA ings outlook. This was Tar- get’s fifth straight quarter of increasing comparable sales. “Rising tide or not, we’ve COMFORT been seeing progress in Tar- get’s results,” said Seth Sig- man, an analyst at Credit Suisse. He said the company stands out among competi- IN EVERY tors, some of which haven’t performed as well even in the favorable environment. “The gap is essentially widening STEP between the haves and the have-nots.” Target has said it expects margins to improve in the second half of the year. Margins slipped in the latest quarter in

part because of higher digital- RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS fulfillment costs, though Tar- The retailer gave away ice cream at the New York City opening of one of its small stores. get said some of that pressure was moderated by efforts to efiting from the movement of days to pick up share from the iffs, saying they would “in- cut costs and retool its pricing shopping online, and Walmart, recent closures at Toys “R” crease prices on everyday and promotions. which had remodeled stores Us. products for American fami- The company said its menu and lowered prices. In early Target said it expects com- lies.” He also said worsening of exclusive brands and new 2017, Mr. Cornell announced a parable sales in the third ties between the U.S. and its store designs helped it attract multibillion-dollar spending quarter and rest of 2018 to be global trade partners “could more shoppers to its stores, plan to help Target catch up. in line with comparable-sales damage economic growth and pushing up store-only compa- Target since has sharpened growth so far this year, which vitality in the United States.” rable sales 4.9% in the second its pricing strategy, rede- Target said has been 4.8%. For the quarter that re- quarter. Comparable digital signed stores, introduced ex- The company said it expects cently ended, Target’s profit The Un-Sneaker™ goes to work. sales rose 41% in the same pe- clusive products, and updated earnings from continuing op- rose 19% to $799 million, or Youdeserveinsanecomfort24/7.Sowhy riod, boosted by a one-day its supply chain and technol- erations to be between $1 a $1.49 a share, from $671 mil- sale in July intended to help ogy. It also has acquired gro- share and $1.20 a share in the lion, or $1.22 a share, for the not treat your feet to the Hubbard 24 Seven? Target test its systems before cery-delivery startup Shipt third quarter. comparable quarter a year the holiday period. Target Inc. and opened smaller stores For the year, Target expects earlier. On an adjusted basis, said customers also have been in urban areas and college earnings from continuing op- earnings were $1.47 a share, using new fulfillment services, towns. erations to be between $5.30 up from $1.22 a share. Ana- including in-store pickup and The retailer said its invest- a share and $5.50 a share. lysts were expecting adjusted same-day delivery. ments in improving the fresh- Target had previously forecast earnings of $1.40 a share. Tar- Two years ago, Target was ness and presentation of gro- earnings between $5.15 a get shares rose 3.21% to Free shipping and returns. Order online or call 844.482.4800. struggling to keep up with ceries helped it gain more share and $5.45 a share. $85.94 Wednesday. competitors such as Ama- market share, and that it Mr. Cornell on Wednesday —Allison Prang contributed zon.com, which has been ben- would push during the holi- highlighted the threat of tar- to this article. THE WALL STREET JOURNAL. ** Thursday, August 23, 2018 | A9 WORLD NEWS

50 miles

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Aleppo Raqqa Idlib IRAQ

Deir Ezzour SYRIA Homs

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Areas of control, July 31 Damascus Russia/Iran/Syrian regime Syrian Kurds Opposition/al Qaeda permissive JORDAN Opposition/Turkey Islamic State DELIL SOULEIMAN/AGENCE FRANCE-PRESSE/GETTY IMAGES Source: Institute for the Study of War THE WALL STREET JOURNAL. Syrian Democratic Forces members at a regimental ceremony. In July, regime officials met for the first time with the group’s political wing. Syria Pressures Kurds to Cede Territory

Assad gives U.S.- ment is pushing to re-establish ocratic Forces. They agreed to terests of all Syrians. Turkey—which is trying to the antigovernment combatants control over territory it lost form a committee, with seven The Syrian regime and Kurd- stamp down a Kurdish separat- surrendered and withdrew. backed group two during seven years of war. Be- members from each side, to ish groups have coexisted ist movement in its own terri- The regime has been brutal options: negotiate or sides the area under Kurdish discuss a prospective agree- mostly peacefully since the be- tory—captured a Kurdish en- against its opponents during administration, Turkish-backed ment over administrative con- ginning of the conflict in 2011, clave in Syria’s north in a bid to the civil war as it tries to re-es- face the military opposition rebels control terri- trol of the area, said Sinam when the government largely push the Kurdish militia back tablish the same environment tory in the country’s north- Mohamad, the council’s for- withdrew from the northeast from near its border. In June, of fear and fealty that existed BY RAJA ABDULRAHIM west, while Islamic State still eign representative in the U.S. region. That pullout was a bid Turkey got assurances from in Syria under more than four holds a shrinking pocket of Last week, committee mem- to appease the minority group— Washington that Kurdish forces decades of Assad family rule. BEIRUT—A U.S.-backed land near the Euphrates River. bers went to Damascus to be- which had been denied many would withdraw from another That concern remained even group in Syria is being pressed But the government’s ef- gin discussions but left with- basic rights such as getting a northern Syrian town that had when the Kurdish-led adminis- by the government of Presi- forts to retake the Kurdish-run out any progress, said Ilham passport—and prevent the been the cause of tension be- tration was ascendant. Some dent Bashar al-Assad in talks region, which includes pre- Ahmad, a council leader. Kurds from joining the burgeon- tween the U.S. and Turkey. residents in the Kurdish region to cede control of its territory dominantly Arab towns, have “We are always looking for That agreement could be anticipated an eventual return to a regime Washington has been complicated by the pres- the political solution,” said complicated by the continuing by the Assad regime and took long sought to unseat. ence of foreign powers with Ms. Ahmad, who attended the spat between the two North precautions, including register- The Kurdish-led group, which diverging interests. A deal first meeting in Damascus An agreement would Atlantic Treaty Organization ing their properties and vehicles assisted the U.S. in the fight with the Kurds would likely with regime officials. “We put the vast majority allies. Ankara, which appears to only with the central Damascus against Islamic State, controls a bolster Russia’s position as the have never attacked the re- be drawing closer to Moscow, government for fear that they region stretching across much main arbiter in Syria as the gime, so what excuse does the of Syria back under has indicated it would welcome could otherwise be confiscated. of northern and eastern Syria, U.S. tentatively withdraws. regime have to attack us?” the regime’s control. regime control near its border. But the council’s Ms. Mo- including major cities such as An agreement would put The Syrian government Russian leaders have previ- hamad remains hopeful re- Raqqa and some of the coun- the vast majority of Syria back didn’t respond to requests for ously blamed Western coun- garding talks with the regime, try’s largest oil and gas fields. under the control of Mr. Assad, comment. A spokesman for the tries for fueling what they echoing what protesters first The U.S. has more than who the U.S. has said repeat- U.S.-led coalition in Syria said ing antigovernment uprising. called separatist Kurdish sen- called for in the uprising—de- 2,000 troops fighting Islamic edly it wants to oust. However, it isn’t involved in the talks be- Kurdish political and armed timent for their own interests. mands the Assad regime re- State in Syria, indirectly safe- officials have indicated that tween its allies and the regime. groups then used the war With its ultimatum—negoti- sponded to with a crackdown. guarding the Kurdish adminis- other objectives in Syria had A State Department official against Islamic State to ex- ate or face military action—Mr. “We are not asking for in- tration. President Trump has become higher priorities, such said the U.S. was aware of re- pand their territorial control Assad is deploying a tactic he dependence or to secede,” she indicated he wants to with- as the defeat of Islamic State ports about meetings between and establish their own gov- has used often. In the past two said, referring to the Kurdish draw those troops. and the removal of Iranian members of the council and the ernment infrastructure and years, regime forces have un- north. “We are asking for plu- With the U.S. commitment troops from the country. Syrian regime in Damascus. laws in the area. A deal to give leashed devastating assaults on ralism and democracy and de- to Syria in question, Mr. Assad In July, regime officials met The U.S. isn’t involved in the up administrative control areas controlled by rebels or Is- centralization. We think this is has given the Kurds two op- for the first time with the Syr- talks, the official said, and fa- would be a major blow to their lamic State militants, including the solution.” tions: negotiate or face mili- ian Democratic Council, the vors Syrian territorial integrity aspirations for autonomy. the Damascus suburb of Eastern —Jessica Donati tary action. Backed by Russia mostly Kurdish political wing as well as a political transition Already, they have suffered Ghouta and the southern prov- in Washington and Iran, the Assad govern- of the U.S.-backed Syrian Dem- process that considers the in- several setbacks. In January, inces. The assaults ended when contributed to this article. U.S. Aims to Tighten ISIS Leader Emerges in Audio Message

Iran Sanctions Waivers BY SUNE ENGEL RASMUSSEN leaders had betrayed them. He specifically mentioned recent BY FELICIA SCHWARTZ BEIRUT—Islamic State re- battles in Eastern Ghouta and pected to impose tougher leased what it said was a re- Daraa near the Syrian capital of JERUSALEM—The Trump sanctions on Iran’s oil sales corded speech by its elusive Damascus, where President administration is looking to and banking sector in Novem- leader Abu Bakr al-Baghdadi, Bashar al-Assad’s government ratchet up pressure on Iran to ber. who called for more attacks in forces cleared large areas of abandon its nuclear program, Historically, U.S. adminis- the West and urged members antiregime rebels. going beyond previous interna- trations have given companies of other militant groups to join Islamic State released the tional sanctions, national-secu- waivers to deal with Iran un- his terrorist outfit. speech to coincide with the rity adviser John Bolton said. der certain circumstances, in- “The supporters of the Ca- Muslim Eid al-Adha holiday. “We’re not just going to cluding trade in medical and liphate should follow in their While competing jihadist com- stop at where the sanctions humanitarian goods. Those ex- path, and trust in Allah, and manders communicate with were in 2015, our goal, our ob- ceptions remain in place de- carry out an attack that breaks their followers frequently, in- jective really is essentially spite the new sanctions, but their heart, and rip them apart, cluding al Qaeda’s Ayman al-

we’d like to say no waivers to other permissions allowing either with gunfire or a stab to ASSOCIATED PRESS Zawahiri who has made several the sanctions,” Mr. Bolton said companies to trade with Iran their bodies, or a bombing in A 2014 image of Islamic State leader Abu Bakr al-Baghdadi. video appearances this year on Wednesday after two days through foreign subsidiaries their countries,” Mr. Baghdadi alone, this was the first public of meetings with Israeli offi- will be removed in November. said, according to a translation defeated in Syria and Iraq. dadi praised recent terrorism sign of life from the Islamic cials. He next travels to Ge- Mr. Bolton said the first provided by the research firm The speech gave several in- in Canada and Europe and im- State leader since September neva to meet with his Russian wind-down period has ended, SITE Intelligence Group. dications of being recorded re- plored followers to continue at- last year. counterpart. with the U.S. only granting When the recording was cently. Mr. Baghdadi mocked tacks such as driving vehicles Meanwhile, former Islamic After Mr. Trump withdrew two “very limited” sanctions made and whether it was the the U.S., referring to its con- through crowds in Western cit- State officials have told The the U.S. in May from the Iran waivers in a bid to show that voice of Mr. Baghdadi, who is tinuing spat with Turkey over ies. He said one such attack Wall Street Journal about a nuclear deal, Washington this the administration is pushing believed to be in poor health, the jailed American pastor An- was equal to 1,000 attacks in meeting with Mr. Baghdadi last month imposed sanctions tar- tough enforcement. A spokes- couldn’t be independently veri- drew Brunson, and Turkey’s re- Syria and Iraq. year, in which the terrorist geting Iran’s trade of gold and man for Mr. Bolton declined to fied. If if were Mr. Baghdadi, it fusal to comply with U.S. sanc- Elsewhere in his speech, Mr. leader exposed rifts within other precious metals, its car say who had received those would be his first public com- tions against Iran, which took Baghdadi called on members of leadership ranks over military industry and the purchase of waivers, as the information munication in almost a year, at effect in August. rival rebel groups in Syria to setbacks and showed signs of U.S. dollars. The U.S. is ex- hasn’t been released. a time when the group is nearly In the recording, Mr. Bagh- join Islamic State, saying their sickness. FROM PAGE ONE

sessment of the federal-funds prolonged dispute would harm Separately, Mr. Powell said Fed Signals rate relative to its neutral business investment, sentiment at the recent meeting he level could convey a false and hiring. It would reduce the would resume a technical but sense of precision.” purchasing power of U.S. important discussion this fall Rate Boost President Trump signaled households and disrupt supply around how the Fed imple- his unhappiness with Fed rate chains that would further de- ments its rate decisions. increases more than a week grade already-sluggish busi- Fed officials tabled this Next Month before the officials met The ness productivity. And it could question last year when they minutes didn’t indicate any precipitate “a severe slow- agreed on a plan to shrink ContinuedfromPageOne discussion of those comments. down” in emerging markets. their $4.5 trillion portfolio of at least a neutral setting, Still, Mr. Trump’s critique While none of these risks bonds and other assets. The though there is considerable points to a potential collision appear material enough to outcome of the debate could uncertainty about what consti- between the White House and push the Fed off its current shape how long the Fed pro- tutes this relative sweet spot. the Fed during the current, path of rate increases, the ceeds with its current policy As the Fed gradually raises delicate period of raising rates risks also “don’t seem likely to of shrinking those holdings. its benchmark federal-funds to a level that might deliber- disappear soon,” said Roberto The portfolio has shrunk to rate, describing interest-rate ately slow growth to prevent Perli, an analyst at Corner- around $4.2 trillion, and the

policy as accommodative the economy from overheating. ANDREW HARRER/BLOOMBERG NEWS stone Macro, in a report debate over how the Fed would “at some point fairly Such episodes weren’t un- The Fed’s Jerome Powell wants to drop the term 'accommodative.’ Wednesday. That “should pre- should set its benchmark rate soon…no longer be appropri- common before the early vent the Fed from tightening will help determine how long ate,” the minutes said. 1990s. President Bill Clinton minutes show how trade un- only concern. “Most [officials] aggressively over the course they continue the run-off. The impulse reflects Mr. adopted a rule against com- certainties loom large for U.S. expressed the view that an es- of this cycle,” he said. If officials return to a sys- Powell’s concern about provid- menting on Fed policy to businesses and Fed officials. calation in international trade The minutes provided few tem that resembles one used ing too much precision about boost investor confidence that When Mr. Powell testified disputes was a potentially con- new clues about how much lon- before 2008, it would require the key variables about the inflation would be held in before Congress last month, sequential downside risk for ger Fed officials believe they fewer reserves and a smaller economy used to chart mone- check. Presidents George W. he pointed diplomatically to real activity,” the minutes said. will need to raise interest rates portfolio, meaning the run-off tary policy. Bush and Barack Obama main- both potential benefits and Officials last month re- beyond its Sept. 25-26 meeting. could continue well into the The minutes said recent ef- tained the hands-off approach. hazards from trade disputes. If ported that businesses in their The written account of the next decade. forts to stimulate growth The Fed has been able to the disagreements yielded an districts hadn’t yet scaled back meeting, released with a cus- If they maintain the current through federal tax cuts, slowly and predictably raise accord to ultimately reduce planned investments because tomary three-week delay, said framework, they would have spending increases and Fed interest rates this year be- tariff barriers, “that would be of tariffs “but might do so if officials “generally expected more reserves and a larger actions had made such esti- cause the economy has per- a good thing,” he told lawmak- trade tensions were not re- that further gradual [rate] in- portfolio, meaning the runoff mates more uncertain. As a re- formed largely in line with its ers in July. solved soon,” the minutes said. creases…would be consistent might end in the next couple sult, providing “an explicit as- expectations, but Wednesday’s But the minutes revealed Among officials’ concerns: A with a sustained expansion.” of years. A10 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. WORLD NEWS Fed-Up Brazil Voters Threaten Status Quo

Political outsider with law-and-order message leads, as nation reels from violence, graft

BY SAMANTHA PEARSON AND PAULO TREVISANI

SÃO PAULO—Brazil’s election campaign is set to be the country’s most unpredictable in three decades. Yet, by global standards, it’s following a familiar pattern: the candidate leading the pack has struck a chord with a deeply disillusioned public and is threatening to overturn the political status quo. Former army captain Jair Bolsonaro has won a loyal following among voters terrified NELSON ALMEIDA/AGENCE FRANCE-PRESSE/GETTY IMAGES of epic violence and so dis- PILAR OLIVARES/REUTERS gusted with the country’s graft- Residents of a Rio de Janeiro slum, left, passed a military vehicle on patrol on Tuesday. Jair Bolsonaro, a former army captain, campaigned in São Paulo last week. ridden politics that they are losing faith in democracy itself. many voters against him. Congress in Focus, a congres- seconds. The winner will suc- In a country with the world’s Ever since the end of mili- Citizen Worries sional monitoring group. ceed President Michel Temer, most homicides, the ex-military tary rule in the 1980s, Brazil’s Thinking about Brazil and its current situation, what are your A 2015 ban on corporate do- whose term finishes at the end man has made law and order presidential race has largely biggest fears about the future? nations intended to limit graft of this year. his main theme. come down to a battle between also leaves parties more reliant “While social media’s influ- Mr. Bolsonaro, who is run- the same two parties: the left- Top ﬁve responses on scant federal funds this ence in the elections is likely to ning for the tiny PSL party, has ist Workers’ Party and the cen- year, which party leaders tend reach new proportions this the largest social media follow- trist PSDB party. Violence increases 27.2% to give to incumbents. year, traditional media such as ing of any candidate and is “We haven’t seen an election But for Brazil’s establish- TV and radio will continue to leading the polls ahead of the this uncertain since 1989…this Economy worsens 20.7 ment, television remains cru- play a leading role in shaping October vote with about 20% year could mark the rupture of cial. In a vast country where electoral preferences,” said support. a party system that was estab- Unemployment 19.8 one in four adults are function- Thomaz Favaro, a São Paulo- Brazil’s former President lished after the country re- Getting sick with no ally illiterate, it’s a powerful based analyst with Control 17.5 Luiz Inácio Lula da Silva, who turned to democracy,” said Ra- medical assistance medium and one that has al- Risks, a global risk consultancy. is trying to run for the Work- fael Cortez, a political scientist Corruption increases 17.5 ways favored the status quo. Digital media experts also ers’ Party from a police cell at São Paulo-based consultancy Candidates are prohibited point to the unpredictable in- where he is serving a 12-year Tendências. He compared the from buying airtime. Instead, fluence this year of WhatsApp, Note: Each interviewee could cite more than one fear corruption sentence, polls at mood in Brazil to the ground- Source: Paraná Research personal interviews of 2,002 Brazilian voters conducted August 9-13; they are allotted two slots of the messaging app used by around 30%. But legal experts swell of antiestablishment sen- margin of error: +/-2 pct. pts. THE WALL STREET JOURNAL. state-funded TV time three about 60% of Brazil’s popula- say he will be barred from the timent that preceded Brexit, days a week, calculated accord- tion. campaign, which officially the election of President Over the past four years, the nostalgia for the heavy-handed ing to the size of their parties Mr. Bolsonaro’s campaign kicked off last week. Trump, as well as that seen Car Wash investigation has re- rule of the dictatorship. Nearly and allies. team has relied on WhatsApp Despite a long career as a across parts of Europe. vealed corruption across all 40% of respondents in a recent The PSDB’s candidate, Ger- to publicize its government federal lawmaker after the While compulsory voting major parties, bombarding Bra- Vanderbilt University study aldo Alckmin, a business- plan, said Gerald Brant, a Bra- army, Mr. Bolsonaro remains rules in Brazil have tended to zilians with sordid tales of poli- would back a military coup to friendly former state governor zilian-American adviser to the unblemished by the country’s moderate the country’s politics, ticians’ enrichment just as they tackle crime and corruption. of São Paulo, will get slots of 5 Bolsonaro family, playing down major graft scandals. His prom- a record number of people are struggled to make ends meet But Brazil’s political estab- minutes 33 seconds. The Work- the importance of slick televi- ise to revive traditional family expected to cast a blank vote amid the country’s worst reces- lishment stands a good chance ers’ Party, which is expected to sion ads. values has also delighted Bra- this year or just not turn up, sion on record. to survive. A record number of pick ex-São Paulo Mayor Fer- “In 2018, Brazilians are zil’s evangelical Christians. Yet making the race more unpre- Only 6% of Brazilians trust lawmakers in Congress will nando Haddad to replace Mr. readier to relate to organic, his outspoken comments, in- dictable, analysts said. the federal government, ac- seek re-election this year, da Silva, will get 2 minutes 20 grass roots marketing efforts cluding telling a female law- Brazilians have more reason cording to Brazil’s Getulio Var- partly to retain the immunity seconds, according to Brasília- that while sometimes amateur- maker she wasn’t pretty than most to hate the estab- gas Foundation. from prosecution afforded to based consultancy Arko Advice. ish carry a greater degree of enough to rape, have turned lishment. That has spurred a latent sitting politicians, according to Mr. Bolsonaro will get just nine credibility,” he said. WORLDWATCH

ITALY 43 people. against her include incitement to Italian prosecutors on Tuesday protest and providing moral sup- Deadly Flash Flood opened a criminal investigation port to rioters. Prompts Probe Calls into the gorge deaths, and the “Any execution is appalling, but government has asked for a sep- seeking the death penalty for ac- Italy’s environmental minister arate administrative proceeding to tivists like Israa al-Ghomgham, urged prosecutors to look at pos- determine if there were lapses who are not even accused of vio- sible criminal responsibility and that contributed to the deaths. lent behavior, is monstrous,” said administrative lapses that may Prosecutors were looking at Sarah Leah Whitson, Middle East have contributed to the deaths of whether weather alerts had been director at Human Rights Watch. 10 people swept away by a flash properly issued and heeded, and A Saudi government communi- flood as they hiked through a whether access to the gorge and cations office didn’t respond to a narrow gorge in the southern re- its challenging terrains should request for comment. gion of Calabria. have been better regulated. Saudi Arabia, an absolute mon- Rescue workers saved 34 peo- —Associated Press archy where public protests and ple Monday after a torrent about political parties are banned, has 8 feet deep filled the narrow Ra- SAUDI ARABIA enacted high-profile social and ganello Gorge in the Pollino Na- economic reforms in recent years. tional Park. Of those, 11 were hos- Activists Could Face They have, however, been accom- pitalized, including at least four Death in Secret Trial panied by a crackdown on dissent, children—several of whom lost ei- with dozens of clerics, intellectuals ther one or both of their parents. Saudi Arabia’s public prosecu- and activists arrested in the past “Italy is tired of crying for the tor is seeking the death penalty year, including women who had dead. Enough,” environment min- against five human rights activists campaigned for the right to drive ister Sergio Costa said. “If what from the kingdom’s Eastern Prov- in the deeply conservative Muslim happened is the result of negli- ince currently on trial in a secre- country. gence, sloppiness or a lack of tive terrorism court, groups includ- Ms. Ghomgham is a prominent awareness of the risks, we are ing Human Rights Watch said. Shiite Muslim activist who docu- facing a serious situation that we Among the detainees is Israa mented mass demonstrations in need to get to the bottom of.” al-Ghomgham, whom Saudi activ- the Eastern Province starting in

KONTROLAB/AGENCE FRANCE-PRESSE/GETTY IMAGES The incident came days after a ists said was the first woman to 2011. She was arrested in Decem- Rescue workers searched the Raganello Gorge in southwest Italy for victims of a flash flood that highway bridge collapse in the possibly face the death penalty ber 2015 along with her husband. killed 10 hikers on Monday. Some 34 people were rescued after the torrent washed through the gorge. northern port city of Genoa killed for rights-related work. Charges —Reuters FROM PAGE ONE

seen—as a cloak of invisibility. “It’s just ridiculous,” she rude and offensive,” Mr. Luis it acceptable. step of powering them on, AirPods “If something interesting is said. “If you weren’t on your said. “I’d recently bought mine. AirPods occupy many ears making sure they’re paired. happening on the train, and AirPods, it probably would Every time we met, she’d actu- once filled by Bluetooth head- When I have my AirPods, it’s a you want to be able to listen to have been correct!” ally make a point of asking me phones, partly because they quarter of a second.” Signal: it while not seeming to listen Dave Luis, 44, head of mar- to remove these from my ears.” seem to disappear. For Ms. May in Atlanta, they to it, you can still hear what is keting for a hospitality startup Mr. Luis posted a poll on his “I forget they’re in my ears. have become like a daily fash- happening around if you have in Dubai, heard a friend com- Facebook page asking for opin- I’ve gone to itch the inside of ion accessory. “If I get up to Stay Away them in while they’re not play- plain about insouciant col- ions about wearing the devices my ear and ran into an Air- do anything, they come with ing,” said Jasiel Martin-Odoom leagues wearing AirPods dur- during meetings. He said he Pod,” said Mr. Miles, the app me, until I’m just wandering of Brooklyn. ing business meetings. was surprised to find that only developer. “With Bluetooth around the office like they’re ContinuedfromPageOne Mr. Martin-Odoom, 25 years “She found it incredibly 9% of his 80-plus friends found headphones, it takes an extra earrings,” she said. views as good enough. Yet old, said he gets annoyed when Andy Nicolaides of Kent, their popularity contributed to people fail to observe the stay- England, first saw the unadver- 60% year-over-year growth in away rule. Heading to a tised benefits of AirPods while Apple Inc.’s wearables cate- friend’s house, he said, “I had in line at a U.K. Apple store gory in the most-recent quar- my AirPods in because it’s an last year for the iPhone X re- ter. UberPool ride—I don’t want to lease. “We’re thrilled to see so talk to anybody.” “I like Apple products, obvi- many customers enjoying Air- The other rider in the car, ously, but these front-of-the- Pods,“ Apple CEO Tim Cook he groused, wanted to chat. line guys push it way too far said during the company’s July “The fact that I had to pause for me,” Mr. Nicolaides said. He 31 earnings call. ”It reminds my music and had to engage in slipped in his AirPods to avoid me of the early days of iPod a conversation—which we both conversations, but he couldn’t when I started noticing white could have avoided, if she’d get cell service to stream mu- earbuds everywhere.” just also put her headphones sic. He wore the headphones in Apple’s latest phones, from in—bothered me,” Mr. Martin- silence but tapped his feet and the iPhone 7 to the new X, Odoom said. nodded in time to an imaginary have no headphone jacks, en- The rules of etiquette are track. couraging the purchase of still evolving. Amber Rosario, a The effect on the chatterers wireless AirPods, which aren’t barista at Starbucks in Mid- nearby was immediate. “I saw included. town Manhattan, finds it rude them look over and start to Wearers of AirPods have when customers wear AirPods talk before noticing the quite adapted their daily behavior to while ordering drinks, some- visible headphones,” he said.

the product in ways even its times resulting in mix-ups over JOHANNA HUCKEBA/THE WALL“Both STREET JOURNAL sides mouthed a silent, designers might not have fore- their order or name. A man wearing Apple’s wireless AirPods strolls through Midtown Manhattan in New York City. ‘Oh,’ and turned away.” THE WALL STREET JOURNAL. **** NY Thursday, August 23, 2018 | A10C GREATER NEW YORK Dispute Delays Access to DNA Database

NYPD, state disagree individual who committed vio- for the NYPD, said the contracts filed a lawsuit alleging the Di- dozen sex crimes, some at gun- on requirements to lent rape.” would require police to disclose vision of Criminal Justice Ser- point, between 1994 and 1997, Familial DNA searching was details on the investigations to vices and the forensic commis- according to the police. While search for relatives approved by the state’s Com- the state, which could compro- sion didn’t have the authority police have DNA evidence from of possible suspects mission on Forensic Science in mise an investigation. to allow the searching. the crime scenes, they have yet June 2017. It allows police to Janine Kava, a spokes- “Familial DNA searching is to catch the perpetrator. take DNA evidence gathered at woman for the Division of flawed and the procedure it- “You think of the family,” BY ZOLAN KANNO-YOUNGS a crime scene and eventually Criminal Justice Services, said self tends to create a suspect Chief Shea said. “Twenty years search it against a state data- the state has been working class of poor folks of color,” and never having closure on a The New York Police De- base of 600,000 people who with the NYPD but “we must said David Loftis, a lawyer at case. That’s why for us it’s so partment and state officials have been convicted of a crime. ensure that individual protec- the Legal Aid Society. important.” are in a stalemate over the re- If the search produces a hit, tions, privacy or civil rights Police officials said no civil One person who called for quirements to search the law-enforcement officials can are not compromised during liberties are violated by the the approval of familial DNA state’s DNA database for rela- use it as a lead to help identify these searches.” technique because a match can searching at public hearings tives of suspects as investiga- relatives of a potential suspect. “The agreements in ques- only be used as an investiga- was Phil Vetrano, the father of tors seek to solve eight cases, At issue is a disagreement tion protect the integrity and tive lead. Karina Vetrano, who was at- including a decadesold one in- between the NYPD and the confidentiality of the process “A detective in the flesh tacked and killed while out for volving a serial rapist. state Division of Criminal Jus- by holding individuals ac- still has to go and investigate a run in Howard Beach, The NYPD’s Chief of Detec- tice Services over policy. Offi- countable for their work and that lead and flesh it out,” Queens, in 2016. DNA was left tives Dermot Shea is frus- cial regulations require the their obligation to report cer- Chief Conry said. at the scene, but the searching

trated. It has been nine DREW ANGERER/GETTY IMAGES police to sign contractual tain information about the Chief Shea added that fa- tool hadn’t yet been approved. months since the cases were Chief of Detectives Dermot agreements for each investiga- case to the state,” Ms. Kava milial DNA searching can only Police later identified and ar- submitted to the state and he Shea would like more results. tion approved for familial DNA said. be used after police have ex- rested a suspect without using still doesn’t have results. A searching, according to the Some civil liberty advocates hausted all other investigative familial DNA searching. ninth case was rejected for bly,” Chief Shea said. “We’re state. The NYPD has yet to argue familial DNA searching options and it is only used for “It can only be used for having insufficient DNA, he talking about serious cases sign those agreements, saying raises privacy concerns, espe- the most violent incidents. good,” Mr. Vetrano said said. and the fear on our side from there should be just one mem- cially for minorities, who are One of the cases the NYPD Wednesday. “There are fami- “Would I like to see more of law enforcement is that we orandum of understanding for disproportionately represented submitted involves the cold case lies out there that don’t have a a sense of urgency by all of have an individual that killed all searches. in the state database. In Feb- of the so-called East Side rapist, clue. That don’t know who our involved partners? Proba- someone or that we have an Patrick Conry, a spokesman ruary, the Legal Aid Society who committed more than a killed their loved one.” City Will Open Three Jets Quarterbacks Gear Up for the Season Freelance Space BY MAYA SWEEDLER stand the city’s resources and obtain insurance and more fi- New York City’s freelancers nancial security. will soon have a free place to Advance online registration hone their skills, talk shop and will be required to reserve a get help finding a gig. spot in classes and in the co- The Mayor’s Office of Media working space. Hub members and Entertainment announced don’t have to be a part of the the creation of the first city- Freelancers Union. sponsored freelancer’s hub on Ms. Menin said her office Wednesday. The hub, which currently isn’t planning to cap will be located in the Made in registration, as the hub has the NY Media Center in Brooklyn’s space, expertise and staff to Dumbo neighborhood, will of- meet whatever demand there fer free membership that in- will be. The hub will cost the cludes workshops, resources city about $500,000 a year, she and meetups. said. Two full-time staff mem- The Freelancers Union will bers will be assigned to the operate the space, which is space in addition to other cir- slated to open in early Octo- culating instructors, Ms. ber, with support from the Pearce noted. mayor’s office. The Indepen- “As we launch and grow this dent Filmmaker Project man- hub, we’ll be co-designing it ages the Made in NY Media with our members,” Ms. Pearce Center. said. “The vision is really to Julie Menin, the commis- supply all the basic things sioner of the Mayor’s Office of someone needs to know to run Media and Entertainment, said an independent business or get

in an interview Tuesday that started freelancing.” JULIO CORTEZ/ASSOCIATED PRESS the hub marks the first con- The hub’s establishment SET, HUT-HUT: New York Jets quarterbacks, from left, Josh McCown, Teddy Bridgewater and Sam Darnold worked out on Wednesday certed effort by a U.S. city to comes after the 2016 Freelance during NFL football training camp in Florham Park, N.J. Their next preseason game is Friday at MetLife Stadium against the Giants. support freelance workers in Isn’t Free Act, a city law that the gig economy. guarantees protections such as “When we know that nearly written contracts and timely two out of every five workers payment for freelance workers. in New York City—about Although about 900 square 38%—are freelancers, we want feet will be set aside for the Carlyle Fund Bets on Long Island City to make sure that we as a city freelancer’s hub, members will government are meeting their have access to resources and BY KEIKO MORRIS Ward Elliott Inc. Mr. Silverman where in the U.S. but outside needs and providing the ser- facilities in the 20,000-square- represented the joint venture of the city, 30% came from vices they want,” she said. foot Made in NY Media Center. A fund managed by the Car- selling the property. Manhattan and 23.4% moved The hub’s services will range Placing the freelancer’s hub lyle Group LP has agreed to pay “People are treating supply to the building from some- from classes in marketing and in a “freelance ecosystem” will $284 million for a luxury rental like obesity and a better anal- where in Queens, Mr. Silver- budgeting, to legal clinics that allow members to take advan- tower in Long Island City, ogy is indigestion,” Mr. Silver- man said. The joint venture will help freelancers protect tage of both existing facili- Queens, marking a milestone man said. “It’s Thanksgiving at selling the property includes their work, said Caitlin Pearce, ties—which include theater, for the neighborhood where de- 6 p.m., and everybody feels Property Markets Group, How- the executive director of the classroom and networking velopers have built thousands like they won’t be able to eat ard Lorber’s real-estate firm Freelancers Union. Services spaces—and the new business of apartments in the last de- again, but by next Tuesday New Valley LLC and The Ha- aim to help freelancers under- curriculum, Ms. Pearce said. cade, according to a broker and they will be fine.” kim Organization, a developer an investor involved in the deal. In the last five years, Long and owner of a large New York When the sale closes, the Island City has added 11,738 City portfolio of properties. 45-story1QPSTowerisex- apartment rental units and has Developers of the sky- pected to be the highest pur- another 5,775 in the pipeline scraper, located within a block chase price for an apartment through 2021, according to of the Queensboro Plaza sub- rental building in Queens and Modern Spaces, a real-estate way station, began leasing the yet another sign a maturing brokerage. However, today New tower’s 391 market-rate apart- Long Island City is on the radar York City has about 30,000 ments in February 2017. It is of sophisticated global inves- fewer rental apartments than it now between 98% to 99% oc-

tors, real-estate brokers said. did in 1980 and 1.5 million AND PARTNERS cupied, said Brett Wolfe, direc- With Carlyle beating out more people, according to Mr. A rendering of 1 QPS Tower tor of sales and marketing of other competitors, the deal Silverman’s analysis. More Property Markets Group. also reflects an awareness that, than half the people moving to land City adds more residents The developers packed the despite headlines of landlords the city become free-market and solidifies its standing as a tower with condominium-level extending tenant concessions renters, he said. thriving neighborhood, land finishes and amenities such as such as free rent periods in the The surge in luxury residen- prices there likely will rise and one of the city’s highest out- luxury sector, there is little tial apartments occurred as de- hit levels that no longer sup- door pools, a gym with four- pipeline behind the most re- velopers rushed to get projects port rental-apartment develop- story high ceilings, and events cent surge in residential devel- in the ground before a city tax- ment, Mr. Silverman said. and programs from mixology

KELLYANN PETRY FOR THE WALL STREET JOURNAL opment, said Will Silverman, a break program expired at the About 33% of the tower’s and gardening to outdoor yoga Adetoro Makinde worked in an area to be dedicated to freelancers. managing director at Hodges beginning of 2016. As Long Is- tenants moved from some- sessions, Mr. Wolfe said. A10D | Thursday, August 23, 2018 NY ** THE WALL STREET JOURNAL. GREATER NEW YORK

GREATERNEW ‘Sweeney’ Exit Leaves Fans Hungry YORKWATCH

Show to close despite generating impressive COURTS $8.5 million in ticket Ex-Soccer Boss Gets sales in 18 months 4 Years in FIFA Probe A former South American soc- BY CHARLES PASSY cer official convicted on corruption charges in the sprawling FIFA Talk about your blood bribery scandal was sentenced money. Wednesday in Brooklyn federal When it closes this Sunday court to four years in prison. after an 18-month run, a re- José Maria Marin, a former vival of “Sweeney Todd,” Ste- president of Brazil's soccer feder- phen Sondheim’s classic musi- ation, also was ordered to forfeit cal about a murderous barber, $3.3 million and pay a $1.2 million will have proved itself one of fine in connection with his partic- the true financial success sto- ipation in a scheme to accept ries on the off-Broadway bribes in exchange for the media scene. and marketing rights to various Created on a budget of $1.2 soccer tournaments, according to million, the show recouped its the office of the U.S. Attorney for investment in a fairly quick the Eastern District of New York. period of 24 weeks, according “His crime was one of pure, to producers. And despite the unmitigated and unchecked fact it has played in a small greed,” said Judge Pamela Chen, Greenwich Village theater with who added that she wanted “to 130 seats, it has generated send a message of deterrence.” $8.5 million in ticket sales, an —Associated Press impressive figure by off- Broadway standards, say in- CONNECTICUT dustry professionals.

Moreover, producers note JOAN MARCUS (2) Largest Freshman that this is the longest-run- Sally Ann Triplett and Thom Sesma in ‘Sweeney Todd’ at Barrow Street Theatre. Below, Joseph Taylor in a scene from the musical. Class at University ning “Sweeney Todd” on record. The original Broadway show’s executive producer. The new freshman class at production, which bowed in The concept is a carry-over The Mad Math of the University of Connecticut 1979, lasted only a little more from when this revival was first represents the largest in the than a year. staged in London four years A Bloody Revival school’s history, with about If there is a key factor that ago at a renowned pie shop in Tallying a few numbers* from 5,500 students. More than played into this revival’s suc- that city. Producers noted audi- the off-Broadway production: 4,000 hail from 164 of Connecti- cess, say producers, it is the ences’ enthusiastic reaction, cut’s 169 cities and towns. unique concept behind it: The and thought the concept also Performances: 636 UConn President Susan theater essentially becomes a would play well in New York. Pies served: 37,354 Herbst said Wednesday the class pie shop/restaurant, playing Just as important: They Costume changes: 31,400 of 2022 is academically excep- off the musical’s story line in recognized the concept al- Times characters are killed: tional. The incoming students av- which Sweeney’s victims are lowed them to appeal to an 5,661 eraged 1306 on their SAT scores, turned into meat pies. Much of audience well beyond the mu- Patrons with the name higher than any UConn class. the audience sits at communal sical-theater fans who nor- Sweeney: 18 The university is “competing dining tables instead of tradi- mally would be attracted to a Gallons of fake blood: 12.5 with many of the best schools tional theater seats. “Sweeney” revival. Specifi- in America for talented Connect- Plus, for a surcharge, pa- cally, the show’s immersive as- Source: ‘Sweeney Todd’ production icut high school graduates,” she * Figures include projected totals for per- trons are even given the op- pect spoke to a new and youn- formances through Sunday. said. Ms. Herbst credits UConn’s portunity to dine on savory ger generation of theatergoers, “winning formula” of good aca- pies and mashed potatoes be- the same who attend interac- demics, faculty and campus facil- fore the show. tive shows such as the long- the producers’ own. A new have been hard to find some- months, despite the generally ities at a value for Connecticut The production went so far running off-Broadway hit theatrical tenant, the non- thing suitable given the need to challenging economics of families and students. as to tap Bill Yosses, a former “Sleep No More,” a reinterpre- profit company Ars Nova, is have the pie-shop element as working in the non-Broadway About 3,764 of the freshmen White House pastry chef, to tation of “Macbeth” in which slated to move into the Green- well. Instead, they say they are arena. Another example is the will be based at UConn’s main helm the culinary operations. audiences wander through a wich Village space, Barrow looking to bring the show to National Yiddish Theatre campus in Storrs, where they “I think the audience felt mock abandoned hotel as Street Theatre, in the fall. other U.S. cities, if not abroad. Folksbiene’s current revival of will begin moving into residence they were getting a complete Shakespeare’s story unfolds. “Sweeney” producers say “Sweeney” is not the only “Fiddler on the Roof,” which halls on Friday. Classes begin experience. It was a full night The decision to end the they could have looked for other off-Broadway show to enjoy sold out its initial run and has Monday at all campuses. out,” said Nate Koch, the “Sweeney” run wasn’t entirely homes in the city, but it would commercial success in recent been extended through Oct. 25. —Associated Press CHEWON THIS

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WORK & FAMILY | By Sue Shellenbarger A Promotion Without the Pay Bump

When your boss offers a bigger job without a higher salary, stay calm and analyze your options ROB WILSON

MORE WORKERS are facing the same dilemma: How do you re- A Shot at the Title spond when your boss offers you a nice new title, without a nice new Before you decide to take a new raise to match? title without a raise: Some 39% of employers often n Ask open, neutral questions to hand out promotions without a probe your boss’s thinking. pay raise, up from 22% in 2011, according to a recent survey of 300 n Explore other benefits the title employers by the staffing firm might bring, such as a bigger bo- OfficeTeam. Many employees are nus. left wondering whether to swal- n Know your employer’s policies low their resentment and accept and practices on handing out the news, or push back for more raises. money. n Ask for time to think about A smart response requires tak- the offer if needed. ing stock of pay practices at your company, figuring out what’s in it n Research what others in the for you and making a well- same or comparable positions are informed decision. paid. After Fredda Hurwitz took on n Get advice from trusted col- duties at a previous employer sim- leagues and mentors. ilar to the two C-suite executives she reported to, she decided to ask n Consider long-term gains in in her annual review for both a skills and experience. new title and a raise. Her bosses’ Wenham, Mass. perks, such as a larger bonus, more about the offer. Discreetly ask cur- n Weigh the likely impact on initial response: “We might be able His boss explained the mixed vacation, tuition reimbursement or rent or past co-workers about your value in the job market. to get you the title, but not both,” message: Mr. Lowry was perform- stock options, says Roy Cohen, a what others at that level are paid. says Ms. Hurwitz, chief strategy ing well, but his division wasn’t, New York-based career coach. If you decide to accept but want and marketing officer at RedPeg and the firm’s policies prohibited “Most important is looking at to keep your hopes of a raise alive, Marketing in Alexandria, Va. raises for employees in laggard di- the opportunity and the big pic- ask when you might be eligible When Shawn Rhodes, a Tampa, She stood firm and insisted that visions. Mr. Lowry took on his new ture,” says Mikaela Kiner, who has and what you’ll have to accomplish Fla., speaker and owner of Shoshin she deserved both. Ms. Hurwitz role as a welcome opportunity to held human-resources leadership to qualify, says Ms. Kiner, CEO of Consulting, a change-management had done her homework on pay learn and grow. roles at Amazon, Starbucks and uniquelyHR, a Seattle consulting firm, was asked to step into a for- practices at the company and had There are other reasons em- Microsoft. “Is this a role you’ve as- firm. mer boss’s job while he was away come prepared to make a strong ployers give promotions without pired to? Is it a role where you’re Ask to revisit the topic in a few for several months, he made the case, ticking off her accomplish- raises. Some only raise pay once a going to be learning and creating, months, and consider getting the mistake of saying yes. “I wore my- ments in a factual, unemotional year. Others restrict groups of job that will allow you to advance boss’s commitment in writing, says self out doing two jobs with no way, she says. Hearing the evi- titles to specific pay ranges, bar- your career in a way you want?” Helene Lollis, CEO of Pathbuilders, pay raise, no extra privileges, not dence, her bosses granted her both ring additional increases for peo- If you’re startled or dismayed an Atlanta human-resources con- even a nice letter in my permanent the raise and title she wanted. ple who are already at the top of by an offer of a no-raise promo- sulting firm. One executive she ad- record,” he says. When pressured Some pay decisions call for the range. tion, don’t react defensively. “Ex- vised received a big promotion to later to do it again, he says, he pushback, including those driven Other employers are doling out press genuine interest in the boss’s head a major project, without a told his supervisor, “not without a by racial, gender, ethnic or reli- small changes in job titles, or mi- thinking,” says Amy C. Edmond- raise to match. The executive led pay raise,” and resigned. gious bias. cro-promotions, to satisfy millen- son, a professor of leadership and the project so well that she was Saying no can damage your rep- But sometimes, no-raise promo- nial workers’ craving for feedback, management at Harvard Business soon hiring staffers making more utation internally. But some jobs tions make sense. Alexander Lowry says Carolyn Betts Fleming, School. That means asking neutral, money than she was, Ms. Lollis are a setup for failure, says Mr. was startled when he received a founder and CEO of Betts Recruit- curious questions about his or her says. Frustrated, she devised an Cohen, author of “The Wall Street congratulatory letter on a previous ing in San Francisco. A recruiting reasoning. If your boss comes upbeat way to reopen the topic by Professional’s Survival Guide.” job at a Wall Street firm saying he associate might be named a re- across as intimidating and closed- saying, “Isn’t it fantastic that this “If you know a number of folks was being promoted to deputy cruiter, for example. While Ms. minded, “screw up your courage project has gone so well that we have come and gone in this role, COO from vice president. Period. Betts Fleming says she doesn’t be- and ask anyway,” says Dr. Edmond- need this high level of talent? Now then you should be concerned that “I looked at the letter and lieve in promoting people without son, author of “The Fearless Or- we just need to get my pay in line the same will happen to you,” he thought, ‘They made a mistake a raise, “getting a title increase is ganization,” a forthcoming book with the talent needed to do it,” says. Consider accepting the job here.’” There was no mention of something to be proud of” for on psychological safety in the Ms. Lollis says. She got the raise. on an acting or interim basis, al- salary, says Mr. Lowry, a professor some young workers, she says. workplace. Some pay decisions are simply lowing you to give it a try while of finance at Gordon College in A new title may confer other Request a little time to think unfair. maintaining an exit plan.

MOVIES ‘MINDING THE GAP’ MAKES A BUZZY DEBUT

BY ELLEN GAMERMAN and maintains a 100% in the movie. In real life, it takes a positive rating on Rot- lot longer to create true soul- ten Tomatoes. searching change, and it has to WHEN THE RAPTUROUS reviews Mr. Liu made his come from within. started pouring in for Bing Liu’s first movie at 17, and [Zack] still has trouble express- “Minding the Gap,” a skateboarding his first big job was on ing his emotions. His charisma was movie that’s not really a skate- the crew of 2013’s Den- so recognized by a fiction film- boarding movie, the director was nis Quaid-Zac Efron maker that he got cast as the lead at a skate park in Brooklyn—skat- movie “At Any Price.” of [another] film. He plays a father ing but not really skating. He spoke with the who is having these deeply disturb- “I was just dissociating,” he Journal about making ing, repressed feelings and it causes said. “It felt like a weird dream.” “Minding the Gap,” him to run away from his family The movie, a story of fathers and what led him to its and his children. He says it’s oddly sons, domestic violence, race and a subjects and how they nice to be able to release his emo- struggling Rust Belt town, is the 29- have reacted to seeing tions through the confines of the year-old filmmaker’s feature debut. themselves. Here are character. Although the documentary seems to edited excerpts from convey years of friendship between the conversation. When you approached Nina about an him and two other young men, in audio recording of one of her fights reality, Mr. Liu built the film first Did this movie come out with Zack, she told you that he hit and the friendships later. of years of friendship her but asked that you not mention The central characters are skate- with Keire and Zack? it to him. Zack ends up explaining boarding high-school dropouts in The press paints it as why women sometimes deserve to Mr. Liu’s hometown of Rockford, this film that slowly be hit. How did this confessional

Ill. Keire seems to grow up on cam- formed over time. I HULU scene happen? era, diving into his feelings about didn’t meet Keire until a ‘The idea was I’m going to examine skateboarders’ relationships with their fathers,’ Bing We were just going to keep fo- his late father, including his year into making “Mind- Liu, center, says of ‘Minding the Gap,’ with Keire Johnson, left, and Zack Mulligan, right. cusing on that recording, what method of discipline. (“Well, they ing the Gap.” It started happened in that recording, so it call it child abuse now,” he says.) out, the idea was I’m going to exam- every shot of footage I had of him laughed in person. Zack was cry- doesn’t become about, “Did you Zack, a new dad who describes ine skateboarders’ relationships in the few times I’d filmed him ear- ing. It was the second time I’d ever hit her?” That interview, like many getting hit by his father, explains with their fathers. My first [inter- lier and built up a sense of who he seen him cry. He was like, “You got moments, those are deep into long why it’s sometimes OK to hit view] shoot with Keire was him talk- was as a teenager. I just saw Zack it.” He also was concerned about hour or two-hour conversations. women in a conversation about his ing about his father’s abuse and his at the skate park, he was really how he would be portrayed. He At the beginning of that interview girlfriend Nina. Later in the film, feelings about it. And then my first good. I filmed people for how good was relieved his nightmarish ex- he was like, “So Bing, do you want Mr. Liu confronts his mother about shoot with Zack was talking with they were. I maybe had 15 or 20 pectations weren’t reality. the real shit or do you want the the late stepfather who had beaten him about his father. minutes of footage of him total fake shit?” I was like, “I always them both. that I could scrap together. Zack is seen throughout the movie wanted the real shit.” He was like, The movie, released on Hulu and It feels like it’s about the three of you drinking, smoking pot and fighting “All right, let’s do this.” He really in theaters on Friday, won the U.S. growing up together. How did Keire and Zack react to their with his girlfriend. Has the film just opened up the floodgates documentary special jury award for It was reverse-engineered. I portrayals in the movie? caused him any soul-searching? there, and I think that was a cul- breakthrough filmmaking at the went back to archival footage. I Keire, it was like he’s an emo- [Requests for interviews with mination of his decision to just Sundance Film Festival. It went on went to others who were younger tional mirror—every time he cried Mr. Liu’s documentary subjects jump off the cliff in a way and just to receive more than two dozen and took footage of Keire to build a on-screen, he cried in person. Ev- were declined.] be like, “OK, I’m going to be vul- film festival awards and honors sense of who he is. For Zack, I took ery time he laughed on-screen, he It’s very dramatic and cathartic nerable here.” A12 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. LIFE & ARTS

ANATOMY OF A SONG |ByMarcMyers Donna Summer’s Radio Classic

The dance song ‘On the Radio’ started with filler vocals and became one of the disco era’s defining hits

IN 1979, Donna Summer re- chorus, I started singing “on the old brown overcoat.” She wrote corded “On the Radio” for radio, oh-oh oh oh oh, on the ra- the rest of the song’s story from “Foxes,” a teen coming-of-age dio” just to fill it out. that one line. film due for release in early 1980. I recorded a demo of the song But before the movie came out, with me singing and playing piano. Stephen Bishop: Donna and I were the dance song was added to Then I called Donna. She came good friends. I think the song that Summer’s double album, “On the over, and I played her the tape. inspired her was “On and On,” Radio: Greatest Hits Volumes I She didn’t like the song, so we from my 1976 album “Careless.” and II,” recently reissued on vinyl shelved it. The song is about a breakup. by Island Def Jam/UMe. Six months later, Neil Bogart of In late 1979, the single Casablanca urged me to see a Mr. Sudano: At Rusk, she typi- reached No. 5 on Billboard’s pop rough cut of the film “Foxes.” Af- cally set up mics and ran tape chart, while the double album ter the screening, I was asked to as she came up with lyrics went to No. 1. Ms. Summer, who write a ballad score and disco vo- while singing in a stream of wrote the song’s lyrics, died cal for a dance scene. consciousness. What in 2012. At home, I pulled out my “On emerged was a narrative Recently, the song’s co-writer the Radio” demo and called up about a woman who re- and producer Giorgio Moroder, Donna. She came over, and I grets dumping her boy- Summer’s husband Bruce Sudano, played it for her again. I told her friend: recording artist Stephen Bishop, I was considering it for the movie “Don’t it kinda strike arranger Harold Faltermeyer, and wanted her to write the lyr- you sad / When you hear drummer Keith Forsey and alto ics. This time she loved it and our song / Things are not saxophonist Gary Herbig recalled took my demo tape with her. the same / since we broke the song’s evolution. Edited from up last June.” interviews. But it’s more complicated than that. When she hears Giorgio Moroder: I first met Donna that her boyfriend just dedi- Summer in Munich in 1973. I was cated their song to her on the working on a demo with Pete radio, she has a change of Bellotte, my co-producer, and heart: we needed three backup “Yeah, you kinda made singers who didn’t have a me feel proud / when I German accent. Donna heard him say came in to audition. / You couldn’t find She had been living the words to say it and working in Germany yourself.” since 1967. We could Ultimately, the hear she was a pro and radio became a way that she had a lot of gos- for the two lovers pel experience. Soon after to reunite: “If you the recording session, Pete think that love isn’t and I signed her to my Oasis found on the radio / record label. Then tune right in you In the months that followed, may find the love you lost Donna lived in Munich and did / ’Cause now I’m sitting here studio work for us. I urged her to / with the man I sent away come to me anytime she had an long ago.” idea for a song. Months later, she had a song-title idea: “Love to Harold Faltermeyer: Donna brought Love You, Baby.” I thought it was At the song’s core, me the rough demo tape of her vo- great. Donna Summer said, cal. I used it to arrange and record In early 1975, after we recorded the basic rhythm track at Westlake “Love to Love You,” Casablanca was a big, beautiful Studios. Records in the U.S. wanted to dis- Italian legato melody. For the intro, I opened playing tribute a longer, 17-minute version a ballad version of the song on a of the song. So we re-recorded it grand piano. The bass line you with a much more elaborate disco hear throughout is me playing a production. It became a huge hit Bruce Sudano: At home, Donna Model D Minimoog. The entire bal- single and album. tried to write lyrics for Giorgio’s lad intro was in the key of D. Donna returned to the U.S. in music but soon handed me the When the dance section kicks in, early 1976, and I soon moved to cassette. She said I should write the key ascended to E-minor to Beverly Hills to compose for the the lyrics. I insisted that she write give it drama. movies and produce her disco al- them. She finally said, “OK, if I can bums. find a way in.” Keith Forsey: It was the disco era, In early 1979, I wrote a song for Donna told NPR in 2003 that so the drums in the dance section Donna on my piano at home in she was at L.A.’s Rusk Studio were all about four beats on the Beverly Hills. The melody was when she became stuck writing kick drum, hitting the snare on the great but my first languages were the lyrics. Then she spotted a second and fourth beats, and using Donna Summer, shown above in 1978, wrote the lyrics for ‘On the Radio,’ Italian and German, and my Eng- Stephen Bishop album on the pi- 16th notes on the hi-hats. about a woman who regrets dumping her boyfriend. Below, the singer in Italy lish was limited. So I sang along ano. After looking at the album’s around 1976 with Giorgio Moroder who co-wrote and produced ‘On the Radio.’ using words that didn’t make lyrics, she came up with, “It must Mr. Moroder: At Rusk, I recorded much sense. When I reached the have fallen out of a hole in your Donna’s master vocal. companied by Keith’s four-on-the- album “On the Radio: Greatest Hits Mr. Faltermeyer: Once floor kick drum. Volumes I and II.” we had Donna’s master vocal, I began to Gary Herbig: IusedmySelmer Mr. Sudano: When I hear “On the overdub. On the in- Mark VI alto saxophone and an Radio” now, I feel as if Donna is in tro, I added a Fender AKG-C414 mic, which allowed the the room with me. We were very Rhodes electric piano engineer to capture my alto’s edge. much in love in late 1979 but not on top of my grand- I recorded my solo in one take. yet married. That would come in piano notes for color. July 1980. Just before Donna Mr. Faltermeyer: At the end of the fi- She loved “On the Radio.” At started to sing, I in- nal chorus, Giorgio had the song end the song’s core, she said, was a troduced strings. This abruptly for dramatic impact. We big, beautiful Italian legato mel- gave the intro a re- put an echo on Donna’s voice, so you ody. One day, to illustrate, she flective mood. Then hear, “On the radio, radio, radio.” sang an operatic version of the Keith came in with a song in fake Italian. She was so drum fill just before Mr. Moroder: The version we used good with languages that it Donna’s second verse. for the “Foxes” theme and the film’s sounded like real Italian to me. My arrangement incidental music was an extended At home in L.A., there was a lot for the disco section version of Donna’s ballad portion going on after our daughters, came pretty fast. backed by Harold’s piano. The disco Brooklyn and Amanda, were born Two bars before section was used for the movie’s in 1981 and ’82. Donna never had Donna’s first chorus, dance-party scene. her awards or gold records around I started the brass But we realized immediately the house. They were in a box. She section with a cre- that the song had huge potential said, “I don’t want you and our scendo chord. as a hit, so I decided to add it onto kids living with Donna Summer. “Stabs” by the brass the greatest hits album we were That’s over here. At home, I’m

GETTY IMAGES (2) section followed ac- preparing. I simply renamed the mommy and wife.”

WORK & FAMILY MAILBOX | By Sue Shellenbarger EARLYFINANCIAL LESSONS

I read your July 17 column Peck says. They also might help Your Kid a Money Genius (Even If A: You’re about having a plan to price items for a yard sale, or help You’re Not),” by financial-literacy already doing Qlaunch your children into with everyday decision-making, such advocate Beth Kobliner; “Raising more for your financial independence, and as shopping for groceries on Financially Fit Kids,” by financial son than I’d like more information. How can a budget. educator Joline Godfrey; and “The most parents. I prepare my kids?—W.J. Teens need practice managing Opposite of Spoiled,” by journalist I’d suggest A: Children can learn earning money to build confidence. Have Ron Lieber. telling him and saving skills in elementary them get a job, open a checking ac- what you can school. One popular method is to count for their wages and set a contribute label jars for saving, spending and savings goal, such as figuring out My son wants us to pay and drawing

sharing and have your child divide how many lawns they have to mow $60,000 a year for the out- the line at JOHN DYKES gifts and allowances among them. to buy the sneakers they want. Qof-state college of his choice. that. He can Set aside 10% for sharing with a Make them responsible for paying My wife and I both work and work or borrow to cover any addi- and make a budget of his own. Use worthy cause and split the rest be- such bills as athletic or activity we’ve set aside $25,000 a year for tional costs, and be responsible for a loan calculator like Bankrate to tween saving and spending, says fees or car insurance. And consider his college costs, but we have to repaying any loans. estimate the size of his monthly Liz Frazier Peck, a fee-only finan- giving them experience borrowing think about our own retirement. I’m This could be an opportunity for student-loan payments and the sal- cial planner in Somers, N.Y. Decid- money and paying it back with in- 66, but I plan to work until all three him to learn financial-management ary required to manage them with- ing what to save for and tracking terest by giving them a small loan of my kids are all out of school. My skills. Consider showing him your out too much financial difficulty. progress toward that goal helps a or adding them to your credit-card son won’t qualify for any financial household budget and what you’re Also, many students who think child learn budgeting. account. Share your household aid, and he doesn’t understand why already sacrificing to set aside they’re ineligible for aid actually Allow youngsters to earn extra budget, explaining how you make his friends who do qualify can afford money for college. Have him re- are able to qualify for various money by doing a special chore, spending plans and repay debt. to go to better colleges. Any sugges- search his likely income and esti- scholarships and grants. For help such as weeding the garden, Ms. Helpful books include “Make tions?—M.S. mated expenses after graduation finding opportunities, try FastWeb. THE WALL STREET JOURNAL. Thursday, August 23, 2018 | A13 LIFE & ARTS

Detail of Wang Hui’s ‘10,000 Miles Along the Yangzi River’ MUSEUM OF FINE ARTS, BOSTON

ART REVIEW A Trip Down the Yangzi in 40 Feet

Wang Hui’s lengthy handscroll stirs emotions while evoking poetry, earlier paintings, history and cultural references

BY LEE LAWRENCE where the sound helps. We hear, as Moving right to left, we see this blooming groves reminders of wrote: “I must use the brush and though from afar, notes from a play out in a number of configura- mortality. Certainly, they would ink of the Yuan to move the peaks stringed instrument and the lapping tions as the river narrows, widens have admired his command of the and valleys of the Song and infuse Boston of water, and our attention pulls and occasionally embraces a tribu- brush and his hallmark repertoire them with the breath-resonance of WHEN THE MUSEUM of Fine away from the grand sweep to set- tary. Rocky banks rise and fall of brushstrokes. the Tang. I will then have a work Arts, Boston announced it was dis- tle on the scene before us. away. Here, a mountain bursts be- Born into a family of profes- of the Great Synthesis.” playing a landscape by the Chinese Although early paintings typi- yond the scroll’s confines; there, sional painters, Wang was not yet Looking at “10,000 Miles Along master Wang Hui (1632-1717) in an cally depict the river from its peaks extend ever smaller, ever 20 when Wang Jiang and Wang the Yangzi River,” art lovers would “immersive installation” with source in the Tibetan highlands to paler, into the distance. And Shimin, two highly regarded or- have marveled—as scholars and “soundscapes of water, birds and its outlet into the East China Sea, throughout, negative space rib- thodox painters, took him under collectors still do—at his syncretic fishermen,” I imagined something by the 17th cen- bons behind and their wing, the latter inviting brushwork, and they would have distractingly Disneyesque and, well, tury this con- through the land- young Wang to study his collec- spotted quotations from earlier cringed. I needn’t have. The sound- vention had scape, morphing tion of paintings. Which he did, landscapes. Collector Wan-go H.C. scape merely establishes a calm long been re- The work, recently from a sugges- spending years copying past mas- Weng details the latter in a re- mood and pace, appropriate for a versed. So Wang donated to the museum, tion of open sea ters, stroke by individual stroke. cently published book that he re- type of landscape that sought to begins the jour- to thick trails of As time went on, collectors pur- fers to in a video interview in- stir viewers’ emotions while evok- ney near the casts nature as the mist to bright chased Wang’s work for ever- cluded in the show. We also see a ing memories of poetry, earlier mouth of the protagonist horizon lines to higher prices while also giving colophon Mr. Weng wrote in which paintings, history and cultural ref- river in his na- fingers of fog in him access to yet more ancient he describes how his great-great- erences. With the help of wall texts, tive province of the dense moun- works. At the home of Zhou Liang- grandfather’s purchase of the “10,000 Miles Along the Yangzi Suzhou, where tain chains at gong in Nanjing, for example, handscroll in 1875 “made him most River” still delivers this. in 1699, he painted this master- the river’s source. Wang saw Yan Wengui’s pan- elated.” Now Mr. Weng, who More than 40 feet of this 53- piece. In its opening tranche, Wang’s contemporaries would oramic “Landscape of the Yangzi turned 100 last month, has do- foot-long handscroll are unfurled in mountains dwarf a city’s gate, have recognized famous towers River” (sometime between 970 nated “10,000 Miles Along the a desk-high display case running houses and people, and the ocean and other sights just as they and 1030), which he cited as an Yangzi” to the MFA. Our turn—cu- the length of the gallery, with a re- beyond yawns wide and infinite. would have known that the fisher- inspiration for this painting. rators and visitors alike—to be production of the remaining portion The protagonist is unquestionably men provided more than local In many ways a nonconformist, “most elated.” hanging on the side wall. Even nature, not man, with mountain color. They have multiple associa- Wang rejected the hierarchy of knowing that such scrolls should be chains almost appearing animate tions in Chinese literature, includ- styles set out by the influential 10,000 Miles Along the Yangzi viewed in segments of about three thanks to Wang’s “dragon veins.” ing that of high-placed officials painter and theoretician Dong River feet, the length one would unfurl in He built up mountains with irregu- leaving unworthy kings to fish in Qichang (1555-1636). No good Museum of Fine Arts, Boston, a single gesture, who can resist lar, billowing arcs whose angular self-imposed exile until better rul- work was unworthy of his atten- through Sept. 30 glancing down the impressive crests he lined up to suggest ers sat on the throne. So, too, tion as he pursued his ambition. stretch of meandering shorelines rather abstractly the sinuous some might have seen in Wang’s Referring to artists from different Ms. Lawrence writes about Asian and rocky mountainscapes? This is movement of a dragon’s back. inclusion of dead trees within periods in China’s history, he and Islamic art for the Journal.

MUSIC REVIEW A MAESTRO’S TIME IN CLEVELAND STILL SHINES

BY ALLAN KOZINN and CBS Masterworks labels, start- ments that have more to do with ing in 1947, were exemplary in changing interpretive fashion than their day, and they remain so now, with any deficiencies of Szell’s. His WHEN GEORGE SZELL died, in a point Sony Classical makes viv- Mozart, Haydn and Bach, for exam- 1970, he was revered for having idly in its 106-CD “George Szell: ple, sound a bit ponderous by to- built the Cleveland Orchestra into The Complete Columbia Album Col- day’s standards. And despite his one of the world’s great ensembles lection,” out now. Except for some reputation as a literalist, he often in a 24-year tenure that began in live recordings issued by the or- jettisoned exposition repeats, argu- 1946, and as an interpreter whose chestra itself, all of Szell’s Cleve- ing in interviews (several are in- streamlined but high-power read- land recordings are here, along cluded in the set) that repeats ings were rooted in his belief that with a few Szell made with the were necessary only when works a composer’s intentions were sac- New York Philharmonic, the Colum- were new and audiences were unfa- rosanct. But though he played bia Symphony Orchestra, and as a miliar with them. down the Romantic notion that in- remarkably vibrant chamber-music Szell’s specialty was the Roman- terpretation should also reflect the pianist. The discs are beautifully tic repertory. His Beethoven and performer’s personality, Szell’s remastered, and packaged in Brahms Symphonies remain among readings were always identifiable sleeves that replicate their original the most tightly reasoned and pre- by their structural logic, textural artwork and liner notes, with pe- cisely executed on the market, and clarity, unerring balances and riod-correct labels and a hardcover his collaborations on those com- sheer energy. Under Szell’s baton, book that provides all the record- posers’ piano concertos, with Leon an orchestra was a highly polished, ing details. Fleisher, are still the gold standard. precision machine, and in music by Mammoth boxes like this, which It’s not easy to find a recording Beethoven, Schubert, Brahms, have become plentiful lately, are that captures the same level of ur- Dvořák and Wagner, he was un- the last gasps of the physical re- gency and anxiety Szell brought to touchable. cord industry, intent on presenting Strauss’s “Death and Transfigura- Yet, at the time of his death, the its wares as they were in their tion,” and his Wagner Overtures music world as Szell knew it was heyday, one last time before are truly regal. Even pieces that, hurtling toward obsolescence. One streaming blows away the tactile today, are typically curtain-raisers of the last great podium martinets, side of music collecting entirely. or encores—Rossini Overtures, the Szell wielded absolute authority They are comprehensive, relatively Dvořák “Slavonic Dances”—have an and executed it with severity—an inexpensive (the Szell set can be uncommon intensity that makes approach that vanished once had for less than $2 a disc) and them sound like major statements. unions began asserting themselves provide the eerie sense that you Lately, the sweep of reductive

in matters of how musicians should are holding the full shape and sub- ALFRED EISENSTAEDT/THE LIFEhistory PICTURE COLLECTION/GETTY IMAGES has elevated Arturo Tosca- be treated. Vanished, too, is the stance of a great musician’s career Conductor George Szell leading the Cleveland Orchestra at Carnegie Hall. nini, Leonard Bernstein and Her- kind of devotion Szell showed to in your hands. bert von Karajan to almost mythic the Cleveland Orchestra. These The Szell box is a fascinating modern competition. It is also hard orful performances of Walton’s status, leaving the other great con- days, a tenure lasting nearly a glimpse at how the supposedly os- to imagine a conductor today re- Partita for Orchestra and Sym- ductors of the 20th century as quarter century is rare; beyond a sified classical canon has evolved cording 106 discs with only a hand- phony No. 2; or a curious reading footnotes that only specialist col- decade, critics wonder (often abet- (albeit slowly) over the decades. ful devoted to contemporary music of Bartók’s Concerto for Orchestra lectors care about. That’s not how ted by off-the-record carping from There is, for example, very little and, of that, only a single Stravin- that begins sedately but eventually it seemed at the time, of course. the players) whether the relation- Mahler or Bruckner, indispensable sky work, the “Firebird” Suite. explodes from the speaker—he is And the new Sony box is a re- ship is growing stale. staples of a conducting career now. Yet when Szell considered a new an eloquent advocate, as focused minder, disc for disc, that Szell de- Szell’s, with Cleveland, never But what there is—most notably, a work worth recording—for exam- on detail, balance and the subtle- serves a place in that pantheon. did; the chemistry between them rich-hued 1966 Mahler Fourth Sym- ple, a spiky, high-contrast account ties of color as he is in the great consistently yielded both heat and phony, and a broad-boned 1970 of Samuel Barber’s Piano Concerto, Romantic works. Mr. Kozinn writes about music for light. Their recordings for the Epic Bruckner Eighth—stands up well to with John Browning; or taut, col- There are occasional disappoint- the Journal. A14 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. SPORTS

FOOTBALL The NFL Team That Went All In

The Los Angeles Rams made a flurry of high-profile moves—and defied the models of patience that have gripped sports

BY ANDREW BEATON

Irvine, Calif. THE LOS ANGELES Rams did something radical this offseason: They acquired a bunch of really good players. It sounds so obvious that calling it radical sounds obtuse. A team with playoff aspirations went out and got players who will help them achieve that goal. They brought in players who have gone to Pro Bowls and been among the most productive players at their positions. But doing that also broke convention—not just in the NFL, but across a broader sports ecosystem that obsesses over long-term visions. It plays out the same in any sport: an executive, often with an Ivy League degree, tells fans some version of “trust the process,” the mantra that became both beloved and mocked in Philadelphia over the years with the 76ers. The team hoards draft picks and prospects with an eye on the long-term future. In this world, the Rams’ offseason spree turned heads. It’s not that any of the moves, taken individually, was remarkable. But Los Angeles made so many that, taken together, they seemed to be a

statement: Brandin Cooks, Marcus PATRICK SMITH/GETTY IMAGES Peters, Ndamukong Suh and Aqib After winning the NFC West last year, the Los Angeles Rams enter this season with an upgraded roster and Super Bowl hopes. Talib were coming to Hollywood to take a team to the Super Bowl— rosy. division.) 2016, he was one of two All-Pro crunching to figure out how to pay now. But with a new head coach in The change in perspective also corners. Talib was the other. The so many players who command big “It’s refreshing,” said Rams McVay, the youngest in NFL his- reshaped the team’s offseason cost for completely overhauling checks. They already locked down coach Sean McVay. “We’ve got a tory, something different took plans. The Rams went from seem- this position: fourth and fifth Gurley and Cooks with new long- group that does an excellent job of hold. Goff, who people had already ingly being years away from con- round picks in the 2018 draft and term deals. Goff will be due for still having a long-term perspec- started writing off as a possible tention to games away from win- a second rounder in the 2019 one eventually. Donald, for the tive but also saying we’re going to bust, came into his own. Gurley ning it all. “The Rams are actually draft. second straight season, is holding make this work and manage it.” led the league in rushing touch- on people’s radar,” Snead said. Yet the cornerbacks may not be out for a deal that could break re- This isn’t how football teams downs and once again struck fear “People are paying attention.” the most intimidating part of their cords for players at his position. normally gear up for a champion- in opposing defenses. After a hold- After these developments, they own defense. That’s because they The typical plan to accommo- ship run. There’s no promise the out, defensive lineman Aaron Don- splurged on a flurry of risky also signed Ndamukong Suh, the date pricy talent is with cheap, moves will turn out to be strokes ald returned to the field and made moves. In other circumstances, ferocious defensive lineman who young players in the draft. The of brilliance and there’s consider- every snap a nightmare for oppos- Snead says the team had plans to will now attack opposing offensive Rams can’t do that like most able long-term risk. Unlike the ing quarterbacks. lines next to Donald, the reigning teams—they traded a boatload of NBA, where one superstar switch- It was a turnaround that no- defensive player of the year. their draft picks away. At the same ing jerseys can completely alter body could have seen coming. The The fourth, and costliest move, time, because of players they lost the league’s power dynamic, that’s Rams went 11-5 and reached the The Rams are throwing gave Goff a new weapon. Los An- in free agency and that their big- rarely the case in the NFL. All of playoffs.Theywentfromhaving their weight around like geles shipped a first-round pick to gest moves were via trade, they the Rams’ moves combine to make the least productive offense in the New England for receiver Brandin expect to recoup some of those a fraction of the ripple caused by NFL to having the most productive a big-market team from Cooks, who has posted three con- losses with compensatory picks in the biggest offseason acquisition offense in the NFL. They also went Los Angeles. secutive 1,000-yard receiving sea- next year’s draft. They also flipped in Los Angeles: The Lakers getting from thinking about how they sons. a couple of their more expensive LeBron James. could contend to how they could There is no guarantee this ap- players, Robert Quinn and Alec But there’s nothing normal win a Super Bowl. proach will work as well in reality Ogletree, to save money and re- about the path the Rams took to “People always go: ‘Did you ex- spend his draft picks on players at as it appears on paper. coup picks. contention. During their first sea- ceed expectations?’” said Les the positions he ended up trading Talib, 32, may not be the lock- Now the Rams find themselves son in Los Angeles in 2016, they Snead, the Rams’ general manager. for. This wasn’t a deliberate plan down option he once was. Cooks in an unusual position for a team produced one of Hollywood’s big- He always replied: “Obviously.” to set the world on fire. But he has career numbers buoyed by that went through a number of gest flops in recent memory. They Snead says he learned some- wound up doing just that. catching passes from Drew Brees lean years. The combination of last went 4-12. There wasn’t much in- thing about expectations. They It began with a pair of moves and Tom Brady. Suh and Peters year’s success and this off-season’s spiring about the quarterback they change quickly. By the middle of that remade the team’s defensive have reputations as two of the splurge has cast the team in a new had taken with the No. 1 pick in last season, at which point the backfield. They traded for Denver most talented players in the light. The Rams are throwing their the draft, Jared Goff. At the same Rams had already shown how good for Aqib Talib, a five-time Pro league—and two of the most diffi- weight around like a big-market time, the team’s prodigious run- they could be, his forecast had Bowl cornerback who’s 32 years cult to handle. team from Los Angeles. ning back, Todd Gurley, appeared changed. All of a sudden, he would old but still one of the most reli- And the Rams’ approach inevi- “You want to be able to do what to take a major step backwards. have been disappointed if the team able players at his position. They tably raises long-term questions. It you can to compete now,” McVay The expectations for 2017 weren’t didn’t win the division. (It won the also traded for Marcus Peters. In will require some serious number- said.

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Hall of Fame 60s 70s Ice SHORT STORIES | By Colin Gale 18 Feel 54 “Camelot” sympathetic composer U.S. Forecasts Today Tomorrow Today Tomorrow Across 55 Super stoked City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W 27 After-shave 49 Output of some 22 Off base, s...sunny; pc... partly cloudy; c...cloudy; sh...showers; additive guns maybe 56 Chains of Omaha 74 68 t 87 65 s Frankfurt 89 59 s 76 52 pc 1 Source of a draft t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Orlando 92 75 t 89 75 t Geneva 83 61 pc 75 53 t 29 Middle-distance 53 Cause of a 24 Copying treeless, rolling Today Tomorrow 4 Give a second Philadelphia 79 62 s 83 64 s Havana 89 72 pc 90 72 pc runner Steve hills City Hi Lo W Hi Lo W airing to holdup, perhaps 25 Gateau’s cousin Phoenix 101 81 pc 102 83 c Hong Kong 91 81 t 90 81 t who won gold 57 “The Golden 10 Beijing blanket 57 Short buildings, 28 Carmela’s Anchorage 57 51 r 59 50 sh Pittsburgh 75 54 s 78 62 s Istanbul 88 76 s 86 74 s at the 1980 Compass” Atlanta 84 65 s 84 65 pc Portland, Maine 78 56 s 81 60 s Jakarta 91 77 pc 91 76 pc and a clue to this portrayer 14 Dazzle Moscow heroine Austin 102 73 s 101 73 s Portland, Ore. 75 57 pc 72 54 pc Jerusalem 86 71 s 90 71 s puzzle’s theme 30 Prey for the 15 Neon Desert Olympics Baltimore 80 59 s 82 62 s Sacramento 84 55 pc 84 54 pc Johannesburg 73 47 s 73 49 s 60 Lakeside Morlocks 58 The Empress of Boise 91 58 s 84 52 pc St. Louis 82 65 pc 81 73 t London 75 52 r 66 49 c Music Festival 33 Goldenrod Australia, for one Boston 78 64 s 84 65 s Salt Lake City 86 68 s 91 64 s Madrid 93 66 pc 95 64 s Lombardy 31 Recount site cousin 59 Plug, say Burlington 78 58 pc 85 63 s San Francisco 70 55 pc 68 53 pc Manila 88 79 t 86 78 t resort 32 Like the pack 16 Batting practice 39 Treasury head Charlotte 82 59 s 83 62 s Santa Fe 78 55 t 84 59 c Melbourne 61 40 pc 62 42 s 61 Plug, say animal about 61 All the rage Chicago 81 64 s 71 68 t Seattle 70 56 pc 70 55 c Mexico City 71 56 t 73 55 t backdrop before Mnuchin 62 Mamet play in which Nash 63 Hosp. bunch Cleveland 79 59 s 82 67 s Sioux Falls 73 66 pc 81 61 s Milan 91 68 pc 88 66 t 17 “Like a good 40 Out of harm’s Dallas 98 79 s 100 78 s Wash., D.C. 81 64 s 85 66 s Moscow 68 50 s 73 52 s which Madonna wrote “he’s a 64 Start of a long neighbor, State way, perhaps Denver 8857pc8860s Mumbai 84 79 sh 84 79 sh made her beast” drive? 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New York City 78 64 s 82 66 s Dublin 62 47 c 59 45 c Warsaw 81 65 s 87 62 t s AR I ES V I N APNEA Oklahoma City 93 75 s 95 76 pc Edinburgh 61 48 c 59 44 sh Zurich 83 59 pc 71 53 t Solve this puzzle online and discuss it at WSJ.com/Puzzles. MYRRH ENS US E RS THE WALL STREET JOURNAL. Thursday, August 23, 2018 | A15 OPINION

Cohen, Manafort and Midterms BOOKSHELF | By D.G. Hart By Karl Rove grudges: I can’t remember in- Mr. Trump directed him to seled their way into Mr. Believe It teracting with him after that make the payments to protect Trump’s orbit before and dur- hey show up for every campaign, and I last saw him his election prospects, an ac- ing his presidential campaign. T presidential campaign: at the 1996 GOP convention. tion some believe constitutes a This notion will be reinforced wannabes like George Following Tuesday’s verdict, violation of campaign-finance further when Mr. Manafort’s Or Not Papadopoulos, self-promoters the president declared that laws. next trial begins in September, like Carter Page, and worse, special counsel Robert Muel- But many legal analysts over charges of money laun- grifters like Paul Manafort ler’s successful prosecution of doubt the payments were ille- dering, failing to register as a and straphangers like Michael Mr. Manafort “has nothing to gal, including Bob Bauer, for- foreign agent, and lying to fed- Skepticism and American Faith Cohen. do with Russian collusion.” Mr. mer White House counsel to eral agents. By Christopher Grasso Grifters attach themselves to Trump is right—for now. Only President Obama and legal ad- The events will also (Oxford, 649 pages, $34.95) campaigns to refresh their cre- the final special-counsel report viser to Mr. Obama’s cam- strengthen congressional Dem- dentials so they can sell their will settle that definitively. paigns. In an article last ocrats’ argument that their eligious nationalism is now out of favor for many services to foreign governments Still, there’s reason to be skep- party is a necessary check on R Americans, but as recently as 1942 you could hear and political parties, or busi- tical of the collusion narrative. the president. Yet while Demo- Franklin Roosevelt justify America’s involvement in nesses looking to buy influence. Every presidential campaign The convictions make crats have the advantage now, World War II with biblical rhetoric. In his State of the Straphangers hope to land a job leaks, and the Trump cam- they could easily overplay Union address that year, Roosevelt declared not only that in the West Wing—and if that’s paign leaked more than any in the Democrats’ hand their hand and turn off swing the world was too small for “Hitler and God” but that the not possible, to cash in on their history. If there had been col- stronger—but they voters who don’t want Amer- United States was fighting “inspired by a faith that goes connections. lusion, the public would likely ica plunged into a political cir- back through all the years to the first chapter of the Book The consequences for Presi- know about it by now. could overplay it. cus like the one Republicans of Genesis.” The idea that “God created man in His own dent Trump of having people Some defenders of the pres- created by impeaching Bill image,” he said, was the reason to fight and “uphold the like this around him became ident dismiss the Manafort Clinton in 1998. doctrine that all men are equal in the sight of God.” clearer than ever Tuesday, verdict as a witch hunt. This is month, Mr. Bauer suggested Given Justice Department Of course, it would be wrong to imply that FDR was when his former campaign wrong and unwise. Mr. Mueller that “the question for legal guidelines, Mr. Mueller—in drawing on a continuous and unquestioned cultural chairman, Mr. Manafort, was acted within his mandate, and purposes is whether Trump contrast to James Comey—is tradition of piety and biblical reverence. Only 17 years found guilty of tax and bank Mr. Manafort was found guilty would have made this payment unlikely to act in ways that af- before, William Jennings fraud and hiding foreign bank of failing to pay taxes on $30 even if he had not been a can- fect the election once Septem- Bryan had become an object accounts, while the president’s million of income from con- didate.” The president, he be- ber begins. The president may of ridicule during the Scopes longtime personal lawyer and sulting in Ukraine, $18 million lieves, “does not have to deny still choose to lash out at the Trial in Dayton, Tenn., for his “fixer,” Mr. Cohen, pleaded of which he spent on clothing, that politics played some part special-counsel investigation, fundamentalist beliefs about guilty to tax evasion, making antiques, real estate and home in his and Cohen’s plotting.” but that would hurt him and creation. Even the Declaration false statements, and cam- expenses. Though they may be Rather, Mr. Bauer argues that his party. Rather than attack- of Independence presents a paign-finance violations. distressed by the notion of 69- Mr. Trump’s desire to protect ing the Mueller probe, Mr. less than clear picture of the So what’s the likely political year-old Mr. Manafort spend- his personal reputation com- Trump’s best approach would role of religion in the national fallout from these courtroom ing decades in prison, Mr. plicates the campaign-finance be to focus on his agenda. That idea. The 1776 justification of bombshells? Trump’s allies could spend question: “A dual motive is would be a better strategy the country’s founding appealed First, full disclosure: When their energy better by pointing enough to muddy the legal wa- than reviving Tuesday’s sordid to “Nature’s God” and grounded Mr. Manafort wrote Mr. Trump out that the president was not ters.” Unable to prove the pay- drama. unalienable rights in a in spring 2016 to offer his as- involved in his schemes and ments were made solely for a “Creator’s” decree. But the sistance, he said I was his was in fact used by him. political purpose, it is unlikely Mr. Rove helped organize author of that language, Thomas “blood enemy.” By that Mr. Mr. Cohen’s guilty pleas are that prosecutors will proceed the political-action committee Jefferson, was not an orthodox Manafort referred to the un- more troubling for Mr. Trump, with charges. American Crossroads and is Christian by any means, preferring a deist successful campaign he man- and not simply because Mr. Still, Tuesday’s events will the author of “The Triumph of Unitarianism to traditional Protestantism. aged for my rival for the na- Cohen admitted to paying hush bring significant damage. William McKinley” (Simon & Christopher Grasso, who teaches history at the College tional chairmanship of the money to Stormy Daniels and Messrs. Manafort’s and Co- Schuster, 2015). of William and Mary, is keenly aware of the tension be- College Republicans—in 1973! Karen McDougal, who claim to hen’s legal troubles will fur- tween believers and nonbelievers in American history. In- Mr. Manafort must have an have had affairs with Mr. ther cement in the public’s Daniel Henninger is away. deed, that tension is the theme of “Skepticism and Ameri- enormous capacity for Trump. Mr. Cohen now says mind that corrupt people wea- can Faith,” a revealing look at religion in the new nation. The period he covers runs from roughly 1800 to the Civil War, a time during which, Mr. Grasso argues, disagreements over belief and skepticism were especially acute. Don’t Trust Anyone Over 21 Pursuing this theme requires Mr. Grasso to devote a lot more space to books, speeches, pamphlets and newspaper By Nicole Ault memories, we’re more realis- embrace retail brands, reject become self-absorbed. Calling accounts—the places where such ideas play out—than to tic than idealistic. religion and live longer with us millennials, or characteriz- the laws and policies of the federal and state governments, reshmen entering col- We work hard, and we their parents than any previ- ing us by the worst of our where politicians and voters matter more than the authors F lege this fall don’t re- care. A 2014 study from the ous generation. youthful habits, will only en- of books. At times the lives of the people arguing for either member 9/11. I’m a se- consultancy Sparks & Honey My generation is expected courage the latter. faith or skepticism take a back seat to the ideas they nior, and for me it is only the found 72% of high-school stu- to be the same, but worse: When the New York Times espouse. Those deficiencies notwithstanding, Mr. Grasso’s dimmest of memories. We’re a dents wanted to start a busi- frenetic snobs, caught up in asked a few months ago what book shines a light on an aspect of America’s cultural new generation, and we’re not ness and nearly a third of the immediacy of social me- iGen wants to be called, history that is too often neglected. His chief contribution is “millennials,” whose birth those age 16 to 19 volunteered dia, headed toward a “WALL- among the most popular re- to put on center stage a cast of skeptics and freethinkers years fall between 1981 and their time. With their plaid- E” dystopia. But we’re already sponses was “Generation whom historians often relegate to the wings. 1996, according to Pew Re- clad hipster phase and chia- setting ourselves up to do Scapegoat,” because older Some of these figures may well be familiar, like the search. We’re Generation Z, or seed fetish, millennials have better. We are pursuing mean- generations are bound to bash patriot Ethan Allen. Most of us know him for his military “iGen,” as psychologist Jean ingful passions. We care about us, and this term might make successes—he and his Green Mountain Boys, of course, Twenge has dubbed us. We causes and take up political them pause. Another popular became heroes for capturing Fort Ticonderoga from the were born in 1997 and after. America’s young activism. Millennials also did response was similarly jaded: British early in the Revolutionary War—and not for his The term “millennial” has this, but iGen’s practical ori- “Don’t call us anything. The arguments against “priestcraft.” In 1785, Mr. Grasso become a smear on anyone generation has entation should lead to a whole notion of cohesive gen- reminds us, Allen published “Reason, the Only Oracle of under 35, a vague indictment had it up to here more grounded activism that erations is nonsense.” Man,” a book that “urged readers to discard the warped of selfish sloth. But iGen-ers won’t quickly burn out. Labels are dangerous, and theologies derived from ancient biblical fables.” aren’t millennials by birth with millennials. I don’t mean to suggest with something as complex as year or behavior—and by that iGen-ers are a whole new a generation—defined more lumping us in with them, breed; we have our own prob- fairly by cultural context than A strong current of religious belief ran through older generations hold us to a been characterized—not un- lems. Many of us are addicted the growing pains of its the young American nation, but so did a distressingly low standard. justly in many cases—by their to screens. Called “digital na- youthful members—they’re We have the potential to do— whims. Born during more af- tives” because smartphones probably wrong. Not even countercurrent of doubt and freethinking. and be—so much more. fluent years, they face life were introduced when we mayonnaise-killing millennials Young as it is, iGen is prov- more sunnily and perhaps were children, we can some- are wholly deserving of the ing itself smarter than the av- more lackadaisically than times be overwhelmed by the grief they’re given. Many other skeptics in Mr. Grasso’s chronicle are ocado-toast-and-Instagram iGen. temptations of technology. Whether you call us iGen obscure, like John Fitch, the inventor of an early steamboat stereotype. Studies have found Hipster millennials, like The oldest of us are just or Gen Z or Generation Scape- well ahead of Robert Fulton. He went from Universalism that we’re cautious and prac- Baudelaire’s dandy, strive to setting foot into the profes- goat, make it a term of hope (the belief that everyone will be saved) to deism, which tical, more averse to student “create a personal form of sional world. Some are even and encouragement, not dis- featured a belief in the Creator but in few tenets of debt. We do less drinking, originality, within the exter- starting families. The worst paragement. Hold us to a Christianity. In Philadelphia, Fitch helped to form the take fewer drugs and have nal limits of social conven- we could do is let our screens higher standard, and help us Universal Society, a kind of philosophical discussion club less sex than millennials did tions”—to be themselves draw us into ourselves. We meet it. whose leader, Elihu Palmer, a former Baptist preacher, at our age. With the war on while fitting in. The product have the choice, now, to use proudly denied the divinity of Christ. Later in Mr. Grasso’s terror and the 2007-09 reces- is an odd mix of individualism our technological platforms in Ms. Ault is a senior at chronicle comes the remarkable tale of John R. Kelso, a sion shaping our earliest and dependency: Millennials moderation to do good, or to Hillsdale College. schoolteacher, Civil War combatant (fighting Confederate guerrillas in Missouri) and congressman. In his autobiography, written in the third person, Kelso described his despair, in the 1840s and ’50s, at being unable to find Get Serious About Human Shields the faith that he believed to be essential to his salvation. “Therefore, he went boldly forward and having once dared By Mark Dubowitz ing their hold on important of our women and children.” deterred travel to Europe by to use his reason, he soon emerged from the darkness of And Orde Kittrie territory. The plan worked, he claimed, former George W. Bush and ignorance and superstition, and into the light and gladness During the 2006 conflict as “our people” forced onto other former U.S. and Israeli of truth. His fetters were broken and he became a free iven the kind of pre- between Israel and Iran- “the world’s television screens officials. Human-shield sanc- man.” And yet Kelso returned to a kind of deism after the ‘G cision weaponry you backed Hezbollah, a senior ...thesacrifice of their chil- tions can be used to help turn war. Mr. Grasso takes Kelso to be an emblem for many are using,” a French United Nations official said: dren.” Hamas official Salah the lawfare tables against the Americans of the period, caught between reason and faith. TV reporter demanded, “how “Hezbollah must stop this Bardawil later admitted that terrorists. For the side of Christianity, Mr. Grasso includes the do you explain so many civil- cowardly blending ...among most of those killed by Israeli Western forces must con- obvious (e.g., Timothy Dwight, Jonathan Edwards’s ian deaths, and are you not women and children.” Today troops defending the border tinue to minimize civilian ca- grandson, who presided over Yale College) along with the afraid that basically hurts the group has reportedly were Hamas operatives. But sualties. Fighting with one all but forgotten, like Jedidiah Morse, a prominent New what you believe to be the le- turned thousands of Lebanese the television images had al- hand tied behind their backs England Congregationalist who defended both Calvinism gitimacy of the fight?” homes, schools and hospitals ready done the intended dam- is the price of decency. But and the Federalist Party at the turn of the 19th century to The spokesman for the into command posts and age to Israel’s reputation. the U.S. government currently help keep the American Revolution from turning into a U.S.-led coalition against Is- weapons depots. While U.S. laws impose has no provision to impose version of the French one, with its religious skepticism and lamic State answered: “We are sanctions for terrorism, our sanctions specifically for us- political radicalism. On the eve of the Civil War, James fighting a brutal enemy that recent study of Hamas leading human shields. Legislation Henley Thornwell, a South Carolina Presbyterian, attacked uses noncombatants as Congress considers ers involved in using human to do so has unanimously abolitionists, who, he thought, favored a lamentably loose shields.” shields shows that several passed the House and is interpretation of the Bible because they discarded the Terrorists’ use of human a special sanctions have not been named as ter- backed by a bipartisan group parts they found objectionable. Mr. Grasso also tells the shields is a remarkably effec- regime for terror rorists by the U.S., let alone of senators. Ambassador Nikki story of Ezra Stiles Ely, a Presbyterian minister who tive tactic against countries the European Union or the Haley is spearheading a simi- founded Marion College, on the western banks of the like the U.S. and Israel, whose groups that use them. U.K. At least one has traveled lar effort at the U.N. Mississippi in Missouri, a school that would prove, he ethical and military codes re- to Europe on behalf of Terrorists and their spon- hoped, faith’s compatibility with reason. The institution quire avoiding civilian casual- Hamas without facing soring regimes must be held failed not so much because of skepticism’s success but ties. Terrorists hide among ci- The most prominent recent consequences. accountable for their brutal because flood waters and the financial panic of 1837 sank vilians to shelter themselves example is the Hamas-orga- Sanctions for using human practice of using civilians as the college. from lawful attack or deliber- nized “March of Return,” a shields could lead to prosecu- human shields. Doing so These efforts and disputes, Mr. Grasso contends, were at ately cause civilian casualties. multiweek campaign during tion in European courts and would save civilian lives and the center the country’s search for a self-definition. Was The use of human shields is which thousands of Gaza civil- counter false claims that give democracies the freedom America to be a society that owed its stability to faith or proscribed by the Geneva ians—including women and Western democracies are to to fight without both hands was it going to foster liberty in such a way that made Conventions. children—repeatedly rioted at blame for harm to these civil- tied behind their backs. freethinking the norm? By 1861 the need for a civil religion In August 2016, Islamic the border with Israel. Groups ians. Too many Europeans be- supplied the answer. Mr. Grasso lets Lincoln, by no means an State fighters fleeing Manbij, of armed Gazans used these lieve that one man’s terrorist Mr. Dubowitz is chief exec- orthodox believer, have the last word. Lincoln knew firsthand Syria, escaped destruction by riots as cover to attempt to is another’s freedom fighter, utive at the Foundation for the appeal of freethinking but contended that unbelief placing civilians in each of breach the border. but war crimes still are taken Defense of Democracies. Mr. should not “insult the feelings” of the majority’s faith. The 500 vehicles in their retreat- Yahya Sinwar, Hamas’s seriously in Europe. In recent Kittrie is a law professor at appeal of such civil religion is one reason that American ing convoy. U.S. forces didn’t leader in Gaza, admitted that decades, universal-jurisdiction Arizona State University, a se- presidents in times of crisis—from Lincoln to Roosevelt and fire on the cars. ISIS also used the march was designed to complaints alleging involve- nior fellow at FDD, and author beyond—appeal more often to God than to reason. human shields during battles generate civilian casualties— ment in war crimes, based on of “Lawfare: Law as a for the Iraqi cities of Mosul, to sacrifice “that which is mere allegations from non- Weapon of War” (Oxford, Mr. Hart teaches history at Hillsdale College and is the Fallujah and Ramadi, prolong- most dear to us—the bodies governmental organizations, 2016). Novakovic Fellow at the Foreign Policy Research Institute. A16 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Trump and Quarterly Capitalism Longer Truck Proposal Is a Dangerous Idea resident Trump has directed the Securi- larger if reporting is less frequent. The economy is booming yet your by the second trailer. The driver ties and Exchange Commission to study Corporate 10-Q reports also provide infor- editorial board argues that growth didn’t stop because he had no sen- P is somehow being held back because sation that he hit anyone. whether to shift from quarterly public mation for policy makers and your humble re- Congress won’t mandate larger trail- DON TATZIN reporting to a semiannual porter—for instance, eco- ers known as “twin 33s” on roads in Mayor schedule. By all means study Regular corporate nomic trends and the effects all 50 states (“We’re Gonna Need a Lafayette, Calif. away, but there’s scant public earnings reports of government policy. Home- Bigger Truck,” Aug. 17). evidence that quarterly re- builders, manufacturers and Although the economic case for Increasing the length of twin tan- porting hurts investment, and enhance accountability. beverage makers reported in twin 33s is weak, my primary ob- dem trailers from 28 to 33 feet will it’s indisputable that public the second quarter higher jections to this proposal have al- add nearly 100 square feet of “sail” markets benefit from more in- commodity costs from Mr. ways been driven by safety. The area to the rig, which can endanger formation. Trump’s tariffs. Deere & Co. said it is raising overwhelming majority of law en- several passing automobiles when a Liberals have long complained about “short- prices to offset higher materials costs, but that forcement officers and other inde- sudden sidewind gust swerves the term” management, and there’s always been an its sales have been surging amid high demand pendent safety advocates I have truck into their lane—especially if echo in corners of corporate America. Who from farmers and contractors. spoken to have expressed signifi- the truck is lightly loaded. cant concerns over these trucks, JOHN E. HAMMOND wants to deal with those annoying journalists There’s little evidence that quarterly report- which are longer than an eight- Virginia Beach, Va. and stock analysts? The Business Roundtable ing encourages myopic management. Research story building is in June urged corporations to drop quarterly and development expenses as a share of the tall. The U.S. earnings guidance because the results may re- economy have been increasing since the 1970s Department of flect ephemeral factors and entice management when the SEC first required quarterly report- Transportation to focus excessively on short-term profits or ing. Capital expenditures declined following the found consis- juice earnings by deferring spending. 2008 downturn, but corporate investment has tently longer Companies issue quarterly guidance as per- been increasing again thanks to tax reform and stopping dis- formance benchmarks for investors and man- deregulation. tances for these agement, but it’s not required by the SEC. Many Quarterly reporting also hasn’t dampened larger trucks do because it’s come to be expected. Large asset investor enthusiasm for forward-looking com- than the already

large trucks ISTOCK/GETTY IMAGES managers and active investors often conduct panies like Amazon or Apple, or deterred their they seek to re- their own earnings forecasts or employ re- executives from plowing cash into initiatives place. “Severe nationwide shortage of search shops, and stock prices are influenced with a long-term payoff. Executives like Warren You cite proponents of twin 33s truck drivers” my foot! Classic rules by factors other than whether companies meet Buffett and Jeff Bezos have invested for the to claim there is no safety concern. of supply and demand still apply. or miss their own guidance. long term even as they report quarterly results. Given the financial stake these advo- We have an abundance of drivers. But the issue of whether public companies Investors can look below a company’s top-line cates have in allowing larger trucks, Thousands have walked from unsat- should offer quarterly guidance is distinct from earnings and judge a company’s growth poten- research they commissioned should isfactory working conditions and whether they should be required to disclose tial by other metrics. be viewed with a high degree of compensation. In addition, many their financial performance every quarter, in- Quarterly reporting does consume manage- skepticism. shippers are unwilling to offer fam- cluding income, revenues, cash and liabilities. ment time and resources and is more burden- In 2016 nearly 4,000 Americans ily friendly work schedules—hence died in accidents involving large the driver shortage. The SEC has required quarterly earnings disclo- some on small companies. But the regulatory trucks. Does anyone believe even JIM BARRETT sures since 1970 to protect public investors and burden pales next to Sarbanes-Oxley’s third- larger trucks on the roads would de- Lowell, Mass. enhance corporate accountability. party audits of internal controls. There are crease this tragic figure? Investors use this information to forecast a many reasons that startups delay issuing stock SEN. ROGER WICKER (R., MISS.) Trucks are essential to our econ- company’s outlook, and in aggregate their in public markets including the increased avail- Tupelo, Miss. omy, but this idea doesn’t help our trades send signals to corporate boards and ex- ability of private capital and the risk of share- infrastructure one bit. A better solu- ecutives. More frequent reporting improves the holder lawsuits. Quarterly reporting probably While there may be fewer roll- tion is to give railroads 100% invest- efficiency of public markets and reduces the doesn’t make the top five. over accidents, the length of the ment tax credits to modernize and temptation for insider trading. “Short-termism” has become a bogeyman on truck puts the driver out of touch increase freight capacity. It would Technological disruption and competition the left, which wants more political control over with what is going on at the back save roads, reduce congestion and also mean that corporate fortunes shift more corporate decisions. Hillary Clinton issued a end. Unfortunately, a bicyclist in our help our pocketbooks. community was killed last week by BRUCE GILLINGS quickly today than decades ago. Consider Face- white paper in 2015 on curbing “short-term” in- a twin-trailer truck. He was struck Mission Viejo, Calif. book’s decline in European users during the sec- vesting that included higher taxes on capital ond quarter following privacy regulations, gains and an attack on corporate stock buy- which appeared to augur a slowdown in growth. backs. Let’s hope the SEC’s study doesn’t turn Investors can sometimes overreact to a quar- mythology about “quarterly capitalism” into Affinity Credit Unions Are Rightly Nonprofit terly slump, but stock gyrations are likely to be proposals that damage capital markets. Regarding Alex Sanchez’s “Credit in Italy, Spain, Japan, Florida, Vir- Unions Shouldn’t Get a Free Ride” ginia, California and even Oklahoma. (op-ed, Aug. 15): Critics of the credit The NFCU is large because it has a Is Kavanaugh Legitimate? union tax status say credit unions use very large, legitimate, “common a tax advantage to create a strangle- bond” base of customers and provides e figure we’ve seen everything, but tation of presidential authority somehow hold on the market, a claim that is pa- its members with a unique and irre- W then Chuck Schumer keeps provid- eluded James Madison. tently false. While credit unions were placeable service. ing a daily education in weird politi- As for Judge Kavanaugh being a “juror” for established to provide many of the I agree that some institutions that cal science. The Senate Demo- Mr. Trump if he is confirmed same services as banks, their tax sta- started as legitimate “common bond” cratic leader on Tuesday Senate Democrats now to the High Court, the Chief tus has always been about the struc- credit unions have morphed into wan- attempted the double bank want to deny Trump the Justice presides over Senate ture and mission of credit unions; it nabe banks and are exploiting an un- shot of claiming that Brett Ka- impeachment trials. Associate has never been about the size or pow- fair competitive advantage over com- vanaugh shouldn’t be con- appointment power. Justices have no role. The jury ers of credit unions. A credit union’s mercial banks without much of a firmed for the Supreme Court is 100 Senators, who get a vote growth is a key indicator that it is do- “common bond.” CMDR. ROBERT B. JOHNSON, USN (RET.) because Michael Cohen only after the House im- ing exactly what Congress intended copped a guilty plea. peaches a President. when it established their tax status: it Orange Park, Fla. is successfully serving its members. “It is unseemly for the President of the Mr. Cohen has implicated Mr. Trump in ap- If the banking lobbyists had their The NFCU offers services to junior United States to be picking a Supreme Court proving the payoffs, but Mr. Trump denies it and way and credit unions were taxed, the service members in remote locations Justice who could soon be, effectively, a juror no court or Congressional committee has heard consequences for consumers would be who are frequently deemed “unbank- in a case involving the President himself,” Mr. the evidence. Mr. Cohen has merely asserted it, detrimental; for the government able” or “targets” by other institu- Schumer declared, picking up a trope that has no doubt under prosecutorial persuasion as part would be inconsequential; and for tions. quickly become part of the liberal echo chamber. of his plea, and it isn’t clear reimbursing Mr. Co- bankers would be a windfall. CAPT. BRIAN FERGUSON, USAF Senators Mazie Hirono (Hawaii) and Ed Markey hen for the payments would be a crime even if It isn’t hard to see why the bank Abilene, Texas (his own private Idaho) cancelled meetings with Mr. Trump approved it. That would depend on lobbyists continue their quixotic bid Judge Kavanaugh, with Mr. Markey saying he Mr. Trump’s state of mind and other evidence. to get Congress to tax credit unions. is now an “illegitimate” nominee. But Mr. Schumer already seems to have Mr. It’s equally easy to see why that Government Pensions Must So let’s see. Donald Trump is the elected Trump impeached and on trial. would be a bad deal for everyone but the banks they represent. Be Fully Funded Each Year President with the power of appointment under We know the Democratic leader is under JIM NUSSLE Regarding your editorial, “Saving the Constitution, but because his former lawyer enormous pressure to show he’s fighting really, President and CEO New Jersey, if That’s Possible” (Aug. has pleaded guilty to evading taxes and paying really, really hard to defeat Mr. Kavanaugh, but Credit Union National Association 13): Can saving the Garden State off a couple of Mr. Trump’s alleged mistresses, Mr. Schumer ought to show more respect for Washington ever be possible without a massive Mr. Trump no longer enjoys the powers of the his own reputation. The daily histrionics are tax infusion? Presidency under Article II. This novel interpre- getting embarrassing. There is a reason the NFCU is the This crisis should be a great big largest credit union in the U.S. It pro- wake-up call to all governmental vides service to its members around agencies promising pensions. Every the globe. I have walked into branches city, county and state should be re- The Food Stamp Farce quired to fully fund pension plans by the end of each year. The funds used he House and Senate are negotiating a work rules for part or all of the state. An Illinois Greece’s Biggest Headwind for this should not be based on hope- T farm bill, and for once the stakes are waiver exempts 101 of 102 counties, though ful actuarial predictions, counting op- more important than subsidies for none has a 10% unemployment rate. May Be Its Demographics timistically on growth or dividends. wealthy sugar farmers. Repub- The USDA also allows waiv- Yannis Palaiologos’s “Greece’s Bail- Each year money should be set aside licans are debating reforms to State evasions show ers in places with an unem- out Ends, but Prospects Still Grim” to meet all pension obligations. a food stamp program that is the need for new ployment rate 20% above the (op-ed, Aug. 20) doesn’t have to be Should, by some stroke of good for- divorced from work and eco- national average. States can prophesy if Greece continues the more tune, these funds earn more than the nomic advancement. Allow us work requirements. also group together areas with profound change of aligning 20th cen- forthcoming required amount, any to illustrate how a current variable unemployment rates tury public policy and social and eco- surplus might be applied to the fol- waiver process has corroded and qualify the larger area on nomic institutions to 21st century age lowing year’s needs. even minimal requirements. an inflated average unemployment rate. The demography. Greece’s “tax and social- Had fully vested retirement funds insurance burdens are crushing” be- been mandatory in New Jersey, Illi- The House farm bill includes a requirement status quo allows for automatic approval. cause they have not sufficiently nois and California, those states that adults aged 18 and 59 work or train for 80 The foundation notes that Georgia’s waiver changed to accommodate the reality wouldn’t be facing the black holes hours a month (20 hours a week, or part time). exempts 66 counties even as the state unem- that over one quarter of its population they are. Seniors, the disabled, pregnant women and any- ployment rate is less than 5%. Michigan, Ari- is over age 60. This isn’t due to the C.M. KASE one caring for a child under 6 is exempt. The zona and Idaho all have waivers for some areas. expansion of social welfare programs, Bloomington, Ind. Senate’s bill doesn’t reform food stamps, which Nevada (4.6% unemployment rate) is exempt but the more profound change of how go to millions of prime-age adults even as busi- entirely. All have Republican governors. we work and live differently in an ag- nesses can’t find enough workers despite rais- California as usual deserves an award for ing economy. Greece’s shift in its re- Pepper ... ing wages. shamelessness. The Golden State manipulates tirement age from 57 when the crisis And Salt Some note that food stamps already have a curiosity in the rules by starting a waiver dur- erupted to 67 today is a start, but a work requirement, which is true on paper but ing the last month of the fiscal year. A loophole barely enough as Greeks live longer THE WALL STREET JOURNAL and they continue their low 1.4 fertil- not in practice. The 1996 Bill Clinton-Newt then allows the state to rely on employment ity rate. Greece, like Japan in Asia, is Gingrich welfare overhaul required 80 hours data that is three years old. Its waiver for 2019 the canary in the mine shaft. Profound a month of work or training for able-bodied exempts 55 of 58 counties, including wealthy structural institutional change and adults 18 to 49 without dependents. Those who Marin with a jobless rate of 2.7%. not just fiscal or monetary policy or refuse to comply are limited to three months The Trump USDA is looking at cleaning up bailouts is what’s needed. of benefits over three years. the requirements, but a regulation can be re- MICHAEL HODIN Then comes the magic asterisk. States can versed by the next Administration. Better for CEO, Global Coalition on Aging waive the time limit with an Agriculture De- Congress to fix the statute. The House bill tight- New York partment dispensation. Congress intended ens the waiver process to limit gaming by geog- these waivers for areas with high unemploy- raphy and excludes the 20% avenue to places Letters intended for publication should ment, defined in statute as 10%, or with insuffi- with 7% unemployment or higher. be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, cient job opportunities. Yet over time the USDA The Senate bill does nothing, and Senator or emailed to [email protected]. Please has expanded waiver eligibility. Pat Roberts of Kansas opposes the House re- include your city and state. All letters The Foundation for Government Account- form. But state waivers as they exist are a farce, are subject to editing, and unpublished “Oh, that was just my UPS guy ability has done yeoman’s work detailing the and a farm bill that doesn’t change these bu- letters can be neither acknowledged nor performance. You should see returned. waiver misuse: Some 33 states have waived reaucratic abuses is no GOP victory. my mailman show.” THE WALL STREET JOURNAL. Thursday, August 23, 2018 | A17 OPINION Why Mueller Can’t Subpoena Trump

By David B. Rivkin Jr. ton should discipline or fire Mr. poena Mr. Trump in connection with And Lee A. Casey Espy, who did resign. To justify pro- Michael Cohen’s guilty plea on ducing such sensitive materials in- charges unrelated to presidential onald Trump’s lawyers volving “the exercise of [the presi- power, although there are other rea- have signaled he won’t dent’s] appointment and removal sons why such a subpoena would agree to a voluntary in- power, a quintessential and non-del- neither be issued nor enforced.) D terview with special egable presidential power,” the We also now know that Mr. counsel Robert Mueller. court required the independent Trump authorized White House If Mr. Mueller insists, he will have to counsel to demonstrate with “speci- counsel Don McGahn to answer all subpoena the president. To enforce ficity” why he needed the materials of Mr. Mueller’s questions regarding a subpoena, the special counsel and why he could not get them, or every alleged obstructive action. Ac- would have to go to court and meet equivalent evidence, from another cording to press reports, Mr. Mc- a highly exacting standard, showing source. (Mr. Espy was acquitted in Gahn spent nearly 30 hours describ- what he wants and why he needs it. 1998.) ing the substance of his He would be unlikely to succeed, Mr. Mueller’s initial charge was to conversations with Mr. Trump and given that Mr. Trump already has investigate Russian interference in offering his assessment that the cooperated extensively with the in- the 2016 presidential election and president’s actions were lawful. vestigation, producing 1.4 million possible collusion between the With access to the relevant docu- documents and making dozens of Trump campaign and the Russian ments and everyone around the White House staffers available for government. But his investigation president, the special counsel has

interviews. has expanded to cover whether Mr. EVAN VUCCI/ASSOCIATED PRESS;JOSHUA ROBERTS/REUTERS no material facts left to find. Inter- Trump has obstructed justice. The President Trump and special counsel Robert Mueller. viewing or interrogating the presi- president’s critics say his obstruc- dent could shed additional light The president can rely on tive acts include urging then-FBI Di- Any prosecution based on Mr. be pardoned. Under such logic, a only on his own thoughts and mo- rector James Comey to “go easy” on Trump’s exercise of his core consti- president under investigation could tives—exactly what executive privi- a Clinton-era precedent— former national security adviser tutional authority would dramati- not discharge his constitutional du- lege is designed to protect. They re- one that doesn’t involve Mike Flynn, subsequently firing Mr. cally impair the executive’s status as ties at all, including the use of mili- late entirely to a constitutionally Comey, and his public criticism of a coequal branch of government, tary force overseas—which can al- proscribed obstruction inquiry that Starr or Lewinsky. Mr. Mueller, Attorney General Jeff considering that Congress enjoys ways be cast as a “wag the dog” would violate the separation of Sessions and Deputy Attorney Gen- immunity under the Speech and De- strategy. powers. eral Rod Rosenstein. bate Clause while exercising its leg- These considerations distinguish Applying the In re Sealed Case The leading precedent is a 1997 There are significant factual dis- islative powers. It would also inject Mr. Trump’s situation from that of standard, Mr. Mueller cannot show opinion, In re Sealed Case, by the putes about these episodes, but all the judiciary into the president’s de- Mr. Clinton, who in August 1998 be- that any need for Mr. Trump’s testi- U.S. Circuit Court of Appeals for the involve the president’s exercise of cision-making process, requiring came the only sitting president to mony outweighs the president’s in- District of Columbia. The case in- his core constitutional powers as judges to delve into matters that are appear before a grand jury. That interest in keeping his thoughts pri- volved the independent counsel in- chief executive, including the power inherently political. dependent-counsel investigation did vate. The president hasn’t asserted vestigation of former Agriculture to appoint and remove high-level ex- Developments over the past year not concern the exercise of presi- executive privilege vis-à-vis the spe- Secretary Mike Espy, who was ac- ecutive-branch officials, to supervise reinforce our view that it would un- dential authority. They concerned cial-counsel investigation. But if Mr. cused of receiving unlawful gifts. the performance of their duties (as constitutionally debilitate the presi- allegations of perjury and obstruc- Mueller seeks his testimony directly, The independent counsel sought to in the Espy case), and to determine dency to base an obstruction charge tion from Mr. Clinton’s personal re- he can and should. Mr. Mueller obtain sensitive documents pro- law-enforcement priorities. We have on gainsaying the president’s mo- lationship with a White House in- knows that losing a subpoena court duced in the course of an internal argued in these pages that the presi- tives in exercising his core responsi- tern. Independent counsel Kenneth fight would prolong and delegiti- White House inquiry. These materi- dent cannot obstruct justice by exer- bilities. Mr. Trump’s critics have Starr subpoenaed the president but mize his investigation. He is unlikely als involved the preparation of a re- cising the discretionary powers of also accused him of obstructing jus- withdrew the subpoena when Mr. to press the point. port to then-President Clinton him- his office, especially in determining tice by using his pardon power. They Clinton agreed to appear voluntarily self. Although Mr. Clinton had whether and why to fire high-level claim his pardons of Joe Arpaio, by video. Because constitutional Messrs. Rivkin and Casey practice directed that most of the materials presidential appointees like Mr. Scooter Libby and Dinesh D’Souza— considerations were not in play, the appellate and constitutional law in be provided, he asserted executive Comey. According to the two leaked whom he considers victims of previ- In re Sealed Case analysis would not Washington. They served in the privilege to withhold some items. letters from Mr. Trump’s lawyers to ous political prosecutions—were have favored the president. (The White House Counsel’s Office and At issue in particular was infor- Mr. Mueller, they take essentially meant to reassure targets of Mr. same might apply if New York-based Justice Department under Presidents mation regarding whether Mr. Clin- the same view. Mueller’s probe that they too might federal prosecutors attempt to sub- Reagan and George H.W. Bush. How to Argue With a Young Socialist By Crispin Sartwell omy in many dimensions. The ask your young interlocutor, if the much more power over his own life? was merely the citizenry acting to- welfare state would become even U.S. were a democratic socialist This is one reason—one of sev- gether. Neither of these claims was f you’re reading this newspaper, more pervasive and activist. Perhaps country and all that power fell into eral—that wanting the state to pro- ever plausible. Without them, the I you’re probably not flirting with the government would guarantee his hands? What if the Trump ad- vide everything for everyone is sim- logic of socialism unravels. If the democratic socialism. But many things like universal employment at ministration controlled the universi- ply a terrible idea. It should be people who wield state power are no young Trump-resisters are, so you a living wage, as Alexandria Ocasio- ties and ran the hospitals? obvious to the sort of people who better or more trustworthy than any- may find yourself in debate with an Cortez has proposed. are putting socialist ideas forward. one else, then the arc of history is li- energetic new democratic socialist, In other words, socialism would Those on the left may well believe able to bend toward reaction or fas- perhaps even around the family din- dramatically increase the govern- So you can’t stand Trump. that the U.S. is a persistently racist cism or oppression. The more powers ner table. The socialist-vs.-capitalist ment’s power and resources while country. They may believe that placed in the hands of government, debate has a certain 1960s or 1840s making Americans more dependent Do you want him to “mass incarceration” is an extension the deeper this bend is likely to be. flavor, and you may want to bone up on it for goods and necessities: food, control the universities of Jim Crow. By this account, a so- Americans need to start talking on the arguments and find some clothing, shelter, education, health cialist transition would put an even about more realistic ways to provide contemporary clinchers. Here’s one: care. The socialist argument runs and run the hospitals? greater share of the nation’s out- for each other, and other solutions The rise of Donald Trump displays from the basic truth that all people put—every new welfare program or or at least reforms are possible. But exactly why socialism is a bad idea, ought to have these things to the ap- power—under the control, at least right at this moment, with every in a way that a young leftist can parently almost trivial corollary that A government that feeds its citi- intermittently, of evil racists. Why Trumpian irruption, it should be readily understand. the state should provide them. zens tells them what and whether to would people with this view be so clear, above all to the young leftist, Defining “socialism” is a classic Under democratic socialism, these eat. And it is possible that the U.S. eager to create the powers they be- that more government power is at problem and one of dubious useful- vast powers and resources would be might end up someday with a leader lieve likely to oppress them? least as likely to exacerbate as to ness, but start here: If the U.S. were overseen by elected officials. But to that the socialists find even more ab- Back in the day, socialism was ac- ameliorate injustice. to follow the advocates of demo- say the absolutely obvious, Mr. horrent than Mr. Trump. So why, you companied by the notion that the cratic socialism, it would involve in- Trump was elected president in can ask your young friend, is he so whole human species was on a pro- Mr. Sartwell teaches philosophy creasing state control of the econ- 2016. What would it mean, you can eager to give people he may hate so gressive arc, and that government at Dickinson College in Carlisle, Pa. Driverless-Car Legislation Is Unsafe at This Speed By Ralph Nader trust of the motoring public. Without tonomous weapon, leading to high- Nothing in the bill compels com- Not so. A majority of motorists that trust, you can forget about driv- way mayhem. prehensive crash-data collection or harbor deep skepticism about self- n my 1965 book, “Unsafe at Any erless cars. So-called white-hat hackers have recording—essential for both the driving technology and fear losing I Speed,” I strongly urged auto Mr. Thune’s bill would eviscerate demonstrated that they can exploit Transportation Department and the control of their vehicles due to out- companies to accelerate their vehicle regulations by allowing com- smart features and take control of insurance industry to assess on-road side penetration or inside computer adoption of proven lifesaving tech- panies to sell potentially limitless brakes in existing passenger vehicles. vehicle performance. malfunctions. From their own self-in- nologies. A year later, Congress au- numbers of driverless cars that Driverless cars, with their tens of There isn’t even a requisite safety terest, manufacturers are foolish to thorized the Transportation Depart- would be exempt from established millions of lines of computer code standard covering a “vision test” for push the Senate to rush this law. ment to issue mandatory safety federal safety standards. This bill and many internet-connected what the self-driving vehicle must be The National Transportation standards. This federal program has would also pre-empt states from ex- systems, would be much more able to see and react to. Pedestrians Safety Board has several open inves- prevented millions of fatalities and ercising their own safety duties. vulnerable. and cyclists, beware. tigations into fatal and injurious injuries, and the auto industry has If auto lobbyists succeed, their As Jeanna Matthews, a computer crashes involving vehicles with auto- prospered. worst nightmares will be realized as science professor at Clarkson Univer- mated driving systems. Why would Now, the situation is reversed. motorists become aware of the legis- sity, said in a July statement: “The Congress seeks to exempt auto executives want the Senate to The autonomous vehicle, or self- lation’s contents. Mr. Thune’s bill ne- AV START Act would only require rush ahead, with minimal time for driving car, industry is moving too glects cybersecurity requirements to manufacturers to have a written plan autonomous vehicles debate, before the release of findings quickly in pending legislation to ex- protect driverless cars from hack- for identifying and reducing cyberse- from federal safety from transportation investigators? empt itself from existing and needed ing—the kinds of cyberattacks, mal- curity risks. That is simply not Mandatory performance standards regulations. A bill, the Self Drive Act ware and data breaches that have oc- enough. More substantive cybersecu- regulation. Not so fast. based on open, peer-reviewed data, (H.R. 3388), has already made it curred in other sectors of the rity standards are only common with adequate budgets, continuing through the House. The Senate is economy. Without critically needed sense before we the public—driver, research, inspections and recall au- poised to consider its version, the protections, hackers could seize con- passengers, bicyclists, pedestrians— Autonomous-vehicle manufactur- thority are tested ways of ensuring AV Start Act (S. 1885), after summer trol of a driverless car. In a best-case is asked to share the road with au- ers argue that completely driverless public safety. Whether drivers prefer recess. scenario, that would result in an an- tonomous vehicles.” cars would be safer than conven- to control their vehicles or relinquish If this legislation, driven by Com- noying glitch in which the infotain- Manufacturers are now prohibited tional cars, in that they would elimi- control to fully autonomous technol- merce Committee Chairman John ment screen freezes. In a worst case, from rendering safety systems inop- nate driver error and never get ogy, they prefer this kind of human Thune, is enacted, it will increase a vehicle, or an entire model line or erable without getting a government drunk. Yet the manufacturers are in- intelligence over unbridled, underde- risk and recklessness and destroy the fleet, could be hijacked into an au- exemption. This bill would allow ebriated with power over Congress. veloped artificial intelligence. manufacturers to switch off safety They tout data-starved claims of in- systems related to driving tasks, novative, revolutionary technologies Mr. Nader is a consumer advocate such as steering and braking, during premised on “if you build it they will and the author of “Breaking Through PUBLISHED SINCE 1889 BY DOW JONES & COMPANY autonomous operation. come.” Power: It’s Easier Than We Think.” Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Notable & Quotable: Unsafe Space Mark Musgrave, Chief People Officer; Jason Anders, Chief News Editor; Thorold Barker, Edward Roussel, Chief Innovation Officer; Europe; Elena Cherney, Coverage Planning; From “The Racist Language of Starting in the late 1400s, Great now, the Moon and Mars are devoid Anna Sedgley, Chief Operating Officer Andrew Dowell, Asia; Neal Lipschutz, Standards; Space Exploration” by Caroline Britain, Spain, and Portugal funded of life, so this colonizing language is Meg Marco, Digital Content Strategy; OPERATING EXECUTIVES: Haskins, TheOutline.com, Aug. 14: missions to the Americas in order not actually putting other beings at Alex Martin, Writing; Michael W. Miller, Features Ramin Beheshti, Product & Technology; & Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; to gather natural resources that risk. But, there is the risk that the Rajiv Pant, Product & Technology; Ann Podd, News Jason P. Conti, General Counsel; “I don’t know who it will be, and would power up their economies. same racist mythology used to justify Production; Matthew Rose, Enterprise; Tracy Corrigan, Chief Strategy Officer; I don’t know what they will dis- By stealing the land that made this violence and inequality on earth— Michael Siconolfi, Investigations; Frank Filippo, Print Products & Services; Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; cover, or what they will accom- resource extraction possible, colo- such as the use of frontier, “cowboy” Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; plish,” [Sen. Ted] Cruz said. “But I nizers used genocide, enslavement, mythology to condone and promote Carla Zanoni, Audience & Analytics Nancy McNeill, Advertising & Corporate Sales; think it is every bit as vast and biological weaponry, and warfare the murder and displacement of in- Christina Van Tassell, Chief Financial Officer; Gerard Baker, Editor at Large Suzi Watford, Chief Marketing Officer; promising a frontier as the New and that resulted in the deaths of digenous people in the American Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International World was some centuries ago.” . . . tens of millions of indigenous peo- West—will be used to justify mis- Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher Earning money in space is an ex- ple living in the “New World.” The sions to space. In a future where hu- WALL STREET JOURNAL MANAGEMENT: Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; citing prospect for a far-right, pro- concept of race, and therefore rac- mans potentially do live on non-earth Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head business, anti-regulation politician ism, was invented as a way of justi- planets, that same racist mythology

EDITORIAL AND CORPORATE HEADQUARTERS: like Cruz, and he explicitly associ- fying their violence and legitimizing would carry through to who is al- 1211 Avenue of the Americas, New York, N.Y., 10036 ated it with European countries a hierarchy of race-divided labor. lowed to exist on, and benefit from, Telephone 1-800-DOWJONES having colonized the Americas. Based off of what we know right extraterrestrial spaces.

wsj_20180823_a017_p2jw235000_0_a01700_1______xa2018.crop.pdf 1 23-Aug-18 06:13:16 TECHNOLOGY: KEYLESS-LOCK MAKERS GET FOOT IN THE DOOR B4 BUSINESS&FINANCE

S&P 2861.82 g 0.04% S&P FIN g 0.26% S&P IT À 0.48% DJ TRANS g 1.00% WSJ $ IDX g 0.07% LIBOR 3M 2.312 NIKKEI (Midday) 22403.90 À 0.18% See more at WSJMarkets.com Treasury Rally Burns Wall Street KKR Has

Record number of A record number of hedge floor for a rate that stands at ing the government’s borrow- and return them at a lower Talks on funds and other speculative the center of financial markets ing needs. The S&P 500 on price later. hedge funds and investors are betting on lower and factors into trillions of Wednesday entered its lon- Predictions that bond yields speculative investors U.S. government bond prices dollars in outstanding mort- gest-ever bull market, a day should rise have found favor Acquiring and higher yields, in part be- gages and other loans. after setting its first new in- Goldman Sachs Group econo- bet on lower prices cause the math behind such a The move has hurt inves- traday high since January. mists, DoubleLine Chief Execu- wager appears too good to tors who bet on a bond-price As of last week, speculators tive Jeffrey Gundlach and Fiat Unit BY DANIEL KRUGER pass up. decline. Many have been doing had a record net short posi- James Dimon, CEO of JPMor- BY BEN DUMMETT The bets on lower prices, or so based in large part on a tion of 698,194 Treasury fu- gan Chase & Co., who said 10- A robust August rally in the “shorts” in traders’ parlance, U.S. economy that grew at a tures contracts, according to year yields could reach 5%. U.S. buyout firm KKR &Co. Treasury market is foiling one however, have been squeezed 4.1% pace in the second quar- the most recent data available “We see the ingredients is in talks to acquire Fiat of Wall Street’s most popular by this month’s price rise in ter, its fastest pace since 2014. from the Commodity Futures across the board for general Chrysler Automobiles NV’s trades, a bet that solid U.S. Treasurys, which has pushed The unemployment rate is at Trading Commission. That is upward pressure on yields,” global auto-parts business economic growth, rising infla- the yield on the 10-year note 4%, its lowest in decades. U.S. up from a net short of 75,840 said Bill Merz, head of fixed- Magneti Marelli, said people tion and eroding government to 2.83%. That’s well below the tax cuts have lifted corporate on Jan. 2. Short sellers borrow income research at U.S. Bank familiar with the matter. finances will compel global in- 3% level that many investors profits, potentially further securities and sell them, plan- Wealth Management, whose The potential sale price vestors to sell bonds. have viewed as the current boosting activity and increas- ning to profitably repurchase PleaseturntopageB10 couldn’t immediately be learned. Magneti has been valued between €3.23 billion ($3.74 billion) and as much as Water Gusher €6 billion or more by some an- Companies are hoping to reap profits from wastewater generated by the fracking industry. alysts, suggesting the sale price could reach or exceed Top Permian water producers How fracking works 4. Fluid that reaches the the top end of that range. surface is taken away for In barrels a day 1. A rig drills down into oil-and Talks could still collapse be- disposal or treated and fore a final agreement is gas-bearing rock. Gun reused. Occidental 3.5 million charges blast holes through reached. the well casing and into the FCA’s newly appointed chief ExxonMobil 1.2 surrounding rock. executive, Mike Manley, is Apache 1.0 tasked with managing the auto maker’s lower-margin busi- Chevron 0.7 Well nesses in Europe after the death last month of his prede- Concho/RSPP 0.6 cessor, Sergio Marchionne. Aquifer FCA said that it is pursuing Kinder Morgan 0.6 a plan to separate Magneti, Sheridan 0.5 subject to final approval by Note: Drawing is the board and shareholders. Cimarex 0.4 schematic; 3. Fracking fluid flows back But meanwhile, and as it has Occidental uses an up the well, clearing the previously indicated, it will Pioneer 0.4 enhanced oil- 2. Water, chemicals and sand (fracking(fracking fluid)fluid) way for oil and gas to be recovery method Shale evaluate proposals for alterna- are pumped at high pressure intonto thethewe well,ll, extracted. Anadarko 0.4 that is water- tive transactions. intensive. further fracturing the rock. “The company does not in- Sources: Bernstein analysis of Drillinginfo data (production); EPA (explainer) THE WALL STREET JOURNAL. tend to comment on market rumors with respect to any such proposals,” FCA said. Under Mr. Marchionne, FCA Companies See Gold in Fracking Wastewater has for several years identified Magneti as a potential sale BY CHRISTOPHER M. MATTHEWS nounced plans for an initial candidate, but price has been public offering, and others are a sticking point, people famil- Some investors see fortunes expected to follow suit. iar with the matter have said. to be made in the U.S.’s hot- “The math on this is really, In April, the Italian-Ameri- test oil field—by speculating really easy,” said Christopher can auto maker signaled a in water, not crude. Manning, a managing partner plan to spin off the business to Fledgling companies, many of Trilantic Capital Manage- FCA’s shareholders and list the backed by private equity, are ment LP, which has invested in stock by the end of this year rushing to help shale drillers Solaris Water Midstream and or early next on the Milan deal with one of their trickiest committed as much as $100 stock exchange. problems: what to do with the million to the company. “If the Typically, companies pursue vast volumes of wastewater Permian goes up by one mil- a spinoff in conjunction with a that are a byproduct of frack- lion barrels per day in oil pro- separate sale process to try to ing wells. duction, it’s going up six mil- generate the highest value by When producers blast a mix lion barrels in water. That’s an increasing competition for po- of water, sand and chemicals opportunity.” tential buyers. to release oil and gas from Larger pools of capital are An outright sale suggests rock formations miles under- looking for a way into the game, Mr. Manley expects to gener- ground, they not only unlock and Mr. Manning and others ex- ate more value than he would oil and gas, but also massive pect the companies to attract from a spinoff. It is unclear, quantities of briny water long billions of dollars in investment. however, whether the execu- buried beneath the surface. KKR & Co., one of the world’s tive has had to lower previous Drillers in the Permian Basin largest private-equity firms, has price expectations.

in New Mexico and Texas cur- JAMES DURBIN/ASSOCIATED PRESS begun approaching companies A sale could also prove to rently generate more than Private-equity firms have invested over $500 million in Permian Basin wastewater-disposal businesses. in the space in recent months, be a more efficient solution to 1,000 Olympic-size swimming according to people familiar help Mr. Manley focus his at- pools full of this murky, salty could produce more than five WaterBridge Resources LLC, wastewater and dispose of it with the matter. A KKR spokes- tention on investing in FCA’s water every day. Handling it million barrels of oil a day by Goodnight Midstream LLC deep underground, hoping to woman declined to comment. core portfolio of Jeep, Ram amounts to up to 25% of a 2023, more than the current and Oilfield Water Logistics displace the trucks that cur- Finding a long-term solu- and other car brands. well’s lease operating expense, daily production of Iran. LLC. There are roughly a rently do the job. Some com- tion to the wastewater prob- Investors have also ques- according to analysts. Sensing a chance for a big dozen of these water-focused panies have a longer-term lem is essential for Permian tioned what would be the best Investors have expressed in- return, private-equity firms companies that analysts said plan: recycling the wastewater producers. A single shale well route for separating Magneti, terest in this corner of the U.S. have invested more than $500 could each be worth hundreds to sell it back to drillers to re- can produce more than a mil- with many saying an outright shale industry as oil production million into wastewater-dis- of millions of dollars. use. Most of the companies lion of barrels of oil over its sale would be “cleaner” if a in the Permian soars to record posal companies such as So- These companies are build- are currently private; Water- lifetime, and many times that desirable price could be levels. Analysts said the region laris Water Midstream LLC, ing pipelines to transport the Bridge Resources in June an- PleaseturntopageB2 PleaseturntopageB2 Sensodyne INSIDE STREETWISE | By James Mackintosh Pitch Takes Sorry for Quibble, but This Record Is Bull Investors grade and eurozone implo- Bite Out in big U.S. American Bulls Run Faster sion. stocks will U.S. stocks have outpaced the rest of the world The S&P 500 itself fell have no trou- since the March 2009 low, in dollar terms. 19.4% from its postcrisis clos- ble believing S&P 500 ing high to the closing low of Of Crest that we are in 300% October 2011, although even BY SHARON TERLEP the longest bull market here we can split hairs. Use ever, with Wednesday set- intraday highs and lows and The giants of toothpaste are ‘BIG BANG ting a new “record” of 3,453 250 the index was down 21.6%, wrestling with an unlikely foe. THEORY’ ENDS days. Quibbles about exactly for a new bear market. Cer- Sensodyne, a 60-year-old what happened in 1990, 200 tainly to many investors it brand that long occupied a IN THIS UNIVERSE 1998 or 2011 won’t matter felt like a renewed panic and specialized niche of the den- for those who had the fore- nothing like a bull market. tal-care world, has cut into sight and luck to hold the 150 Whether today marks a re- TELEVISION, B3 Crest’s and Colgate’s lead in S&P 500 during its 320%- Emerging cord is open to doubt either the U.S. market, capitalizing plus run from the low of markets way. Based on closing prices, on shoppers’ growing prefer- March 9, 2009. 100 Japan there was no bear market ence for toothpastes that do What truly matters for in- Eurozone from 1987 until 2000 in the more than clean. vestors is that the market S&P 500, making that by far 50 U.K. Sensodyne’s share of the has gone up a lot—really, a the longest bull run. Based U.S. market has more than lot—over a long period. But on intraday prices, there doubled over the past decade given how much attention 0 were bear markets in 1990 while Crest’s and Colgate’s has bull markets and new re- and 1998, but that run was 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 shrunk, according to Euromon- cords get, it is worth spend- still longer than the run itor. ing a bit of time on the quib- Note: Weekly data through Tuesday; since 2011. For decades, Sensodyne was bles. Indexes are MSCI Emerging Markets, Topix, MSCI EMU, FTSE 100 This is the financial histo- a low-profile player in the The widely accepted defi- Source: Thomson Reuters THE WALL STREET JOURNAL. rian’s equivalent of counting toothpaste aisle, promising re- XIAOMI SHOWS nition of a bear market is a angels on the head of a pin. lief for painful teeth, while drop of 20% from the last U.S. market has only been in The S&P 1500, Russell Who cares how long this bull Crest, Colgate and others PROFIT FRESH peak in this cycle, while bull a bull phase since October 1000, Russell 3000 and market has been going, so lured buyers with the promise FROM IPO markets are usually mea- 2011, when most stock Wilshire 5000 were hurt by long as you are making of fresh breath, a white smile sured from the lowest point gauges were back in a bear their holdings of smaller money? And U.S. stocks have or appealing flavors. As con- reached until the peak before market, down 20% from their companies, which fell fast as been making big money. sumers in recent years have SMARTPHONES, B4 the next bear market. postcrisis highs hit earlier the market plummeted after From 2009 to 2011 they re- PleaseturntopageB2 On this basis, the broad that year. the U.S. credit-rating down- PleaseturntopageB11 B2 | Thursday, August 23, 2018 **** THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A Golar LNG...... B6 Pfizer...... B12 Amazon.com...... B4,B11 Goodnight Midstream Pinnacle Foods...... B12 ...... B1 Pirelli...... B2 Car-Parts Supplier Raises an Alert Ambeon Holdings...... B6 Groupe Casino...... B12 PNG LNG...... B6 Anadarko Petroleum...B2 BY WILLIAM BOSTON Apache...... B2 H ProShares Decline of the Retail Store ETFA8 Apple...... A10,B4 Harbour Energy...... B6 BERLIN—Continental AG’s AT&T...... B3 Q Hartford Financial....B10 shares plunged nearly 15% on B Quadrant Energy...... B6 I Wednesday after the world’s S Brookfield Asset Intercontinental second-largest automotive Management...... B4 Exchange...... B3 Samsung Electronics..B4 parts supplier by sales issued Brookfield Business Santos...... B6 J a fresh profit warning, blam- Partners...... B6 Schaeffler...... B2 ing softer demand for cars in C J.C. Penney...... A8,B3 Solaris Water J.M. Smucker...... B12 Midstream...... B1 Europe and China as well as Cboe Global Markets..B3 JPMorgan Chase...... B10 Susquehanna higher costs. Conagra Brands...... B12 K International Group..B3 Continental lowered its Concho Resources...... B2 forecast for revenue for the Continental...... B2 KKR...... B1 T CVS Health...... B3 L Target...... A1,B12 year to €45 billion ($52 bil- Tencent Holdings...... B4 lion) after exchange-rate ef- D Latchable...... B4 Total...... B6 fects, a reduction of €1 billion Darwin LNG...... B6 Lowe's...... B3 U from previous forecasts. The Depository Trust & M Clearing...... B3 Uniqlo...... B3 auto supplier based in Ger- Macquarie Group...... B6 many also slashed its profit- E V Michelin...... B2 margin outlook to 9% from Valeo...... B2 Estee Lauder...... A2 N 10%, its second profit warning Exact Sciences...... B12 Virtu Financial...... B3 Nasdaq...... B3 this year. F Volvo Car Group...... B4 Navigators Group.....B10 W The news surprised the Facebook...... B4,B11 Noble Energy...... B2 market despite demand for Fiat Chrysler...... B1 Nomad Foods...... B12 Walmart...... A8,B4 Wesfarmers...... B6 cars in Europe softening this ALEX KRAUS/BLOOMBERG NEWS Five Point Energy...... B2 O-P year, partly in reaction to A Continental technology factory in Ingolstadt, Germany. The auto supplier cut its revenue forecast. X G Occidental Petroleum.B2 fears about possible city bans Xiaomi...... B4 General Mills...... B12 Oilfield Water Logistics on diesel engines and fallout the year comes as global auto ten statement that develop- General Motors...... B4 ...... B1 Y from Britain’s expected exit makers face more headwinds Warning Sign ment costs for new technology GlaxoSmithKline...... B2 Options Clearing...... B3 Yulong Eco-Materials.B4 from the European Union. in China and Europe, a combi- Continental’s daily share price reached a record €20 billion In China—locked in a trade nation of a maturing cycle and during the first half of the dispute with the U.S. that has economic uncertainty caused €230 year. It also said there were INDEX TO PEOPLE seen Beijing raise import tar- by an unresolved trade dispute additional costs related to iffs on American cars—auto between the U.S. and its major 220 starting new businesses in its sales fell 4% in July from a trading partners. This comes ContiTech division and in its 210 A-B F Long, Jason...... B2 year earlier, according to the as the auto industry and its powertrain division as the in- Allen, Paul...... B2 Federer, Roger...... B3 M government-backed China As- suppliers face rising invest- dustry moves from combus- Baumgartner, John...B12 200 G Mackenzie, Colin...... B2 sociation of Automobile Manu- ment costs to develop electric tion engines to hybrid and Berson, David...... A2 Manning, Christopher.B1 Gabriel, Allison...... B5 facturers on Aug. 10. vehicles and self-driving cars. plug-in electric vehicles. Bolsonaro, Jair...... A10 Gallagher, Kevin...... B6 Merz, Bill...... B1 190 Brooks, Vincent...... A8 Greenspan, Elyse...... B10 P The warning, which fol- All these factors have led Under pressure to shift the C Gundlach, Jeffrey...... B1 Phil West...... B2 lowed another downward revi- car companies such as Daimler 180 company’s business as the en- Capobianco, David...... B2 H-J Pirrong, Craig...... B3 sion in April, sent Continen- AG, which makes Mercedes- tire industry is in the throes of Cohen, Michael...... A1 Hillman, Jennifer...... A2 S-T-Y tal’s shares as low as €159.10 Benz cars, and Fiat Chrysler 170 Wednesday change, Continental last D-E Hwang Jin-ha...... A8 Schoenfelder, Luke.....B4 before they recovered slightly Automobiles NV to curb ex- €160.85 month unveiled a reorganiza- Denton, David...... B3 Hyman, Simeon...... A8 Sigman, Seth...... A8 160 Jay, John...... B3 to close off 13% at €160.85 in pectations in recent months. ▼13% tion to focus more on new Deshpande, Abhay....B12 Smith, Gene...... A5 Frankfurt. Shares in fellow Continental, which has its technology trends. Dimon, James...... B1 K-L Smith, Zach...... A5 150 Donohue, Craig...... B3 Kahl, Kelly...... B3 Stillwell, David...... B4 auto suppliers Michelin, Pire- roots as a rubber manufac- Part of the plan involves a Drake, Michael...... A5 Kodali, Sucharita...... A8 Thompson, David...... B3 lli and Valeo SA fell 4%, 4.6% turer, is one of the world’s JuneMay July Aug. partial listing of the com- Ellison, Marvin...... B3 Lei Jun...... B4 Yun, Lawrence...... A2 and 4.9%, respectively. Shares leading makers of tires. €1 = $1.1571 Source: SIX pany’s powertrain business in Schaeffler AG, the indus- The company also special- THE WALL STREET JOURNAL. next year. trial group whose controlling izes in key auto components Continental said it no lon- the best solution, according to family is Continental’s largest such as powertrains, brake invested heavily in software ger believes the powertrain Sensodyne Colin Mackenzie, GlaxoSmith- shareholder, declined 6% in systems, auto electronics and development as technology business will meet its 2019 Kline’s president of North Frankfurt. safety systems. companies emerge as chal- targets of achieving €10 billion America Consumer Healthcare. The deterioration of Conti- In recent years, Continental lengers to their business. in revenue and €850 million in Wins Over In 2012, Sensodyne’s U.S. nental’s business outlook for and other auto suppliers have The company said in a writ- pretax profit. sales were one-third of Crest’s. Last year, they were roughly Brushers half. Where Crest and Colgate Magneti employs more than and lighting systems, com- would place KKR in a better have lost market share, Senso- KKR Seeks 40,000 people, making a range pressors and powertrains. position to capitalize on its in- ContinuedfrompageB1 dyne continues to gain. Senso- of auto components. It gener- That broader portfolio would vestment when it decides to begun to seek out toothpastes dyne, with U.S. sales of $556 ated revenue of €7.9 billion in allow Magneti and Calsonic to sell the new combined com- that offer benefits other than million in 2017, had roughly Deal to Buy 2016 according to the com- address a bigger customer pany holding. cleaning or brightening, Sen- 18% of the market, up from pany’s website. base and reduce their historic The sale, if executed, would sodyne has seen a jump in 12% in 2012, according to Eu- FCA’s latest annual report reliance on FCA and Nissan, inject some much-needed cash sales. romonitor. Crest had 35% mar- Fiat Unit said 34% of Magneti’s revenue respectively, for a big part of into Fiat Chrysler at the same The company has built on ket share and Colgate has 33%, came from business within the their sales. time it is working to pay down that trend by introducing new compared with shares of 36% group. Customers would include debt and fund a costly five- lines that don’t just soothe a and 34%, respectively, in 2012. ContinuedfrompageB1 KKR is expected to acquire FCA, Mazda Motor Corp., year plan that includes devel- sensitive mouth but also reached, analysts with Ever- Magneti through Japan-based oping electric vehicles and promise protection against core Partners wrote in a re- Calsonic Kansei Corp., accord- boosting sales globally. The cavities and extra-fresh Showing Teeth cent note. ing to the people familiar with The sale, if executed, Italian-American auto maker’s breath. Sensodyne has made inroads Mr. Marchionne had also the matter, creating an auto- €45 billion spending plan over Sensodyne, created in 1961 in the U.S. talked about potentially spin- parts giant that could cut would inject some the next five years will focus by New Jersey-based Block ning off Comau, a subsidiary costs by eliminating overlap- on four core brands: Jeep Drug and acquired in 2000 by U.S. toothpaste market share based in Turin, Italy, that ping operations. The New much-needed cash sport-utility vehicles, Ram London-based GlaxoSmith- Crest Colgate Sensodyne makes robots and other auto- York-based private-equity firm into Fiat Chrysler. pickups and Alfa Romeo and Kline PLC, was well positioned 40% mated systems for use in man- acquired Calsonic last year Maserati luxury cars. to capitalize on the changing ufacturing. from Nissan Motor Co. and The company in a presenta- consumer mind-set. 30 The potential deal also un- other shareholders for about tion in June, led by Mr. Mar- In 2007, the company came derscores the growing appe- $4.5 billion. Geely Automobile Holdings chionne, told analysts and in- out with a toothpaste that, ac- 20 tite among the largest private- The companies are similar Ltd., General Motors Co. and vestors it expects to double cording to independent re- equity firms to do bigger deals in size, each generating a total Daimler AG among others. It operating profit to €16 billion search, appeared to limit sen- 10 after efforts to raise record of more than $9 billion in an- would also oversee a network by 2022 and hit double-digit sitivity-causing erosion of the amounts of new cash. nual revenue. Together the of production plants and re- profit margins, up from 6.8% teeth. It also overhauled its 0 Last year, KKR closed a $9.3 combined entity would manu- search-and-development facili- today. marketing with the goal of billion fund targeting invest- facture a wider range of auto ties across Europe, North and —Mike Colias raising awareness about sensi- ’132012’14 ’15 ’16 ’17 ments across Asia Pacific, the parts, including air condition- South America and Asia. and Christina Rogers tive teeth and persuading con- Source: Euromonitor largest such fund in the re- ing, ducts and other products Meanwhile, a more compet- in Detroit sumers that Sensodyne was THE WALL STREET JOURNAL. gion. for a car’s interior, exhaust itive auto-parts company contributed to this article.

anywhere from 60 cents to Investors $1.50 a barrel compared with more than $2 by truck, said Mr. Capobianco, who previ- Betting on ously headed Vulcan Capital, Microsoft Corp. co-founder Paul Allen’s investment firm. Wastewater Apache Corp., one of the largest producers in the Perm- ContinuedfrompageB1 ian, wants to reuse more wa- amount of water. ter to reduce the millions of Energy consultancy Wood barrels it must dispose of and Mackenzie has found that in limit the freshwater it pur- some parts of the Permian Ba- chases for fracking, according sin, wells produce 10 times as to a company presentation much water as they do hydro- earlier this year. Apache recy- carbons. cled more than 22 million bar- In the Delaware portion of rels of water from 2013 to the Permian, the area’s most 2016 in just one subsection of popular geologic deposit, wa- the Permian. ter-to-oil ratios conservatively “Prudent water manage- average 5 to 1, analysts said. ment is critical to our success. For years, drillers have re- It’s good for communities, it’s lied on trucks to move the wa- good for the environment and ter, but surging U.S. shale pro- it’s good for business,” said duction means trucks alone Apache spokesman Phil West. may not be able to handle the That potentially means a growth, a problem exacer- new business opportunity for bated by a continuing trucking water-disposal players. Histori- shortage. Moving the water by cally, producers have mostly truck, about 125 barrels at a used freshwater for fracking, time, is no longer feasible but water companies are set-

when a single well produces JAMES DURBINting FOR THE WALL STREET JOURNAL up their networks with an thousands of barrels a day. A water pool surrounds a drilling rig in Midland County, Texas. Producers must dispose of vast amounts of water that come out of a well. eye on treating produced water And rising water-management so it can be reused for fracking costs could add as much as $6 pipelines that are scalable. dling 600,000 barrels a day. “We could sit back in 2020 Still, producers are signing and resold to the shale drillers to the cost of producing a bar- Outside of Pecos, Texas, Wa- “We really don’t know the and have 500 miles of pipe in up for long-term contracts who paid them to take it away rel of oil, according to Wood terBridge is building a net- potential here,” said Jason the ground.” with companies like Water- in the first place. Mackenzie, potentially curbing work of pipelines to take away Long, WaterBridge’s chief There are looming regulatory Bridge. That is a shift from “You can flare gas,” said the growth of future Permian wastewater from some of the commercial officer, during a and environmental challenges. what had been a spot market Mr. Capobianco. “You can’t oil supply by 400,000 barrels area’s biggest producers—Oc- recent tour of one of the com- Studies have linked disposal priced by the truckload and a flare water. Once the water a day by 2025. cidental Petroleum Corp., pany’s roughly 20 disposal wells to earthquakes as waste- sign that producers need to stops flowing you have to shut Truckers and the new en- Concho Resources Inc., Ana- sites on the edge of the Chi- water from fracking can put lock up a solution for their in a well. When we began trants typically dispose of darko Petroleum Corp. and huahuan Desert, a compound stress on underground faults water, said David Capobianco, looking at this sector seven wastewater in underground Noble Energy Inc. The com- of steel tanks that process and increase seismic activity, whose investment firm, Five years ago, that was really an wells, but the latter group pany said it would have 125 thousands of barrels of water and some in the industry pre- Point Energy, has pledged epiphany.” hopes it can provide drillers miles of pipelines built by the before pumping them into an dict regulators will tamp down $200 million to WaterBridge. —Miriam Gottfried the service more cheaply using end of the year capable of han- underground disposal well. on permitting new wells. Moving water by pipe costs contributed to this article. THE WALL STREET JOURNAL. **** Thursday, August 23, 2018 | B3 BUSINESS NEWS ‘Big Bang Theory’ To End Its Long, Successful Run BY JOE FLINT pays the majority of that in its license fee to Warner Bros., a The long-running CBS hit person close to the show said. “The Big Bang Theory,” the If the show were to return, most-watched comedy on tele- both CBS and Warner Bros. vision, is coming to an end. would likely face significantly Warner Bros. Television, higher costs for the cast and which produces the show, said producers. Wednesday it would end next The departure of “The Big May after 12 seasons and 279 Bang Theory” will put extra episodes. pressure on the network to The show, about a group of find a hit during the develop- geeky physicists and their ment period for the 2019-2020 friendship with a beautiful TV season. CBS has struggled next-door neighbor, averaged launching new comedies over 18.9 million viewers last sea- the past few seasons. Last season. Its absence will leave a son’s bright spot was a “Big

big hole in CBS’s prime-time Bang Theory” prequel of sorts ANDREW BOYERS/REUTERS lineup. called “Young Sheldon.” The The 37-year-old tennis star’s endorsement deal with Uniqlo will cost the apparel giant about $30 million a year over the next decade. The show’s viewership has show averaged a strong 17 mil- declined from five years ago, lion viewers, according to when it averaged more than Nielsen. 23 million viewers, but the This fall CBS is launching Uniqlo Sees a Federer Match program is still expected to go three new comedies, including out near the top of the ratings. a revival of the 1990s show The final season will make its “Murphy Brown.” Japanese company other public events off the year at the Australian Open. could present some complica- debut on Sept. 24. For Warner Bros., “The Big court. He will don their latest Uniqlo is mostly known for tions for Uniqlo because he is As recently as a few weeks Bang Theory” has been a cash signs player to big collaboration, a line of polo basics, not sports attire. It a relatively private person ago, CBS was trying to coax at cow. The show has generated deal, though sports shirts and shorts, at the U.S. previously outfitted tennis outside of tennis. least one more season out of more than $1.5 billion in reve- Open. player Novak Djokovic, who is Mr. Jay said that was part the show’s cast. CBS Enter- nue for domestic reruns alone, attire isn’t its thing “The collaboration is much now with Lacoste. of the attraction. “There’s a tainment President Kelly Kahl a person familiar with the bigger than sports,” said John Mr. Federer ended weeks of certain level of being discreet told reporters earlier this matter said. BY KHADEEJA SAFDAR Jay, Uniqlo’s global creative speculation about his deal and private that we cherish,” month that the network didn’t Several episodes air on the director. “We develop high- with Nike Inc. this summer he said. “Of course, we’re run- believe the show was in its fi- TBS cable channel every night Weeks after it signed Roger performance clothes for every- when he stepped onto the ning a business, but we very nal year and that there were and still generate strong rat- Federer to a $300 million en- one off the court, and we’d court at Wimbledon wearing a much respect that part of his preliminary discussions with ings. With close to 300 epi- dorsement deal, Uniqlo is ex- like to think the technology is white shirt that bore a little life.” Warner Bros. for a renewal. sodes at the end of the coming plaining why a company not good enough for an athlete.” red square reading “Uniqlo” Besides, Mr. Jay said, the “The Big Bang Theory” had season, Warner Bros. doesn’t known for sports attire is The deal will cost Uniqlo instead of Nike’s swoosh. The company doesn’t expect Mr. become one of the most ex- need to make additional epi- making such a big commit- roughly $30 million a year for tennis star has been repre- Federer to disappear. “One day pensive shows on television. sodes to sell. Warner Bros. is a ment to a tennis player in the the next decade, raising ques- senting Nike for about 20 he will retire from tennis, but The show’s five stars and its unit of AT&T Inc. twilight of his career. tions around why the Japa- years, collaborating on shoe he’s not retiring from life,” he two co-stars all earn close to Besides having its own big The Japanese apparel giant nese brand picked Mr. Federer designs and wearing the said. $1 million an episode, people audience, the show has said the tennis player will pro- as an ambassador. He just brand’s gear at matches. A Mr. Federer said his love of close to the show said. The brought viewers to other CBS vide input on product designs, turned 37 and is widely con- plaza at Nike’s Oregon head- fashion and travel, and his af- show costs about $10 million programs, making it even appear in ads and dress in the sidered to be near retirement, quarters is named after him. finity for Asia, position him to an episode to produce and CBS more valuable. brand’s clothes both during though he recently won his Signing the athlete as an be a global ambassador for the matches and at charity and 20th Grand Slam title this off-the-court representative brand. Lowe’s CEO Takes Aim at Home Depot

BY KIMBERLY CHIN way to determine the future of quisition of health insurer stronger sales and profit in its AND SARAH NASSAUER other nonretail investments. Aetna Inc. latest quarter. Mr. Ellison, who left J.C. Mr. Ellison, 53 years old, Lowe’s said second-quarter Marvin Ellison is stepping Penney Co.’s CEO post earlier said the company needs to re- sales rose 7.1% from a year up efforts to close Lowe’s this year and previously spent duce its inventory of low-per- earlier to $20.89 billion. Cos.’s performance gap with its more than a dozen years at forming products and increase Comparable sales for larger rival Home Depot Inc. Home Depot, joined Lowe’s in stocks of faster-selling items. Lowe’s rose 5.2%. Home Depot Lowe’s is planning to shut early July and is working to put He said in an interview that reported last week that sales down Orchard Supply Hard- his stamp on the retailer. some fundamental retail tac- jumped 8.4% in its latest quar- ware stores, a small regional On Wednesday, Lowe’s said tics had been lost at Lowe’s in ter and its U.S. comparable- hardware chain it acquired it recruited David Denton, CVS recent years and key execu- store sales rose 8.1%. five years ago. Mr. Ellison, Health Corp.’s finance chief, to tives didn’t have enough on- Net income for Lowe’s was chief executive of the world’s join the company as its new the-ground experience. $1.52 billion, or $1.86 a share, second-largest home-improve- chief financial officer. Mr. Den- Shares of Lowe’s rose 5.8% compared with $1.42 billion,

MICHAEL YARISH/CBS ment retailer, said Wednesday ton announced plans to leave to $105.52 in trading Wednes- or $1.68 cents a share, a year The comedy has been a cash cow for Warner Bros. Television a portfolio review is under CVS once it completes its ac- day as the retailer posted earlier. Battle Simmers in Fiercely Competitive Options Market

BY GUNJAN BANERJI Mr. Donohue made a name through the central entity. for himself leading exchange Options Middleman Smaller exchange competitors Craig Donohue’s turnaround giant CME Group Inc., where The OCC, the options market's only have argued it gives the owner plan for the nation’s options he helped oversee $20 billion clearinghouse, started paying dividends to exchanges an additional clearinghouse has hit a road- in acquisitions and the com- owners in 2015—a move opposed by stream of revenue and an un- block. pany went through an initial traders who pay clearing fees. SHAREHOLDSHAREHOLDERS fair advantage in the fiercely Mr. Donohue has boosted public offering—the first U.S. competitive options market. the prominence of Options exchange to go public. CLEARING MEMBERS C The shareholder returns OOCCC ER ING S Clearing Corp., which acts as Now the OCC is mired in un- Old Method ADADINGD “create a ‘golden goose’” that TTR IONN a guarantor for every trade in certainty over the capital plan TIONSORAT produces “outsized returns 1) Clearing members pay fees. OPTIONSO RPP the U.S. listed options market. Mr. Donohue helped devise 1 COC into perpetuity to the sole Fe Clearinghouses—critical parts years ago. In a separate pres- 2) OCC spends money on es benefit of those shareholder of the financial system—came sure point, the SEC is investigat- operating expenses. exchanges,” wrote David under greater scrutiny after ing how the OCC handled a bout 3) OCC refunds excess RS Thompson, a lawyer repre- BE the last financial crisis and are of market volatility this year. fees to EM 3 Dividends senting Susquehanna, Virtu its clearing MEMBERS 2 responsible for preventing po- Just before Mr. Donohue be- NG M 4 Expenses and smaller exchanges at Coo- members. RI Re tential defaults from rippling came chief in 2014, the SEC hit funds per & Kirk PLLC in January. through markets. OCC with a range of criticisms CLEARINGCLEA C A spokesman said the OCC is But after four years at the on how it manages risk. After OC committed to a structure as an helm, OCC’s executive chair- the 2008 financial crisis, OCC industry utility and still gives man and chief is locked in a was deemed one of a handful 1 refunds to clearing members. Fe battle with options traders of financial institutions consid- es New Method In a blow to the OCC, Chief who oppose his plan to boost ered “systemically important.” Judge Merrick Garland of the income for OCC sharehold- This designation led to Mr. 1) Clearing members pay fees. U.S. Court of Appeals ordered 2 2) OCC spends money on ers—three publicly listed ex- Donohue’s overhaul. When he 3 Expenses the SEC to re-evaluate OCC’s Re expenses, restores reserves. change-operators—while trim- joined the OCC, the clearing- funds proposal last year, saying it ming returns to traders. house had only enough cash to 3) Roughly half of remainder didn’t do a rigorous job of de- A group of trading firms operate for about six weeks, he goes to shareholders. termining whether the share- and smaller, competing ex- said in November. He helped 4) Roughly half is refunded to holder payouts hurt investors. changes, including Susque- raise its cash stockpiles to clearing members. “That is a central issue: if the hanna International Group $247 million from $25 million. dividend rate represents an LLP and Virtu Financial Inc., Mr. Donohue also raised the Returns* OCC’s revenue and expenses Average fee per contract unnecessary windfall for made the unusual move of su- OCC’s visibility. In late 2017, shareholders,” he wrote. 25% Return on shareholder $400 million 3.5 cents ing the Securities and Ex- the firm’s executives rang the cash infusion If the SEC rejects the pro- change Commission in 2016 for closing bell at Nasdaq Inc. in 300 3.0 posal, Mr. Donohue will have 20 Return on approving the OCC proposal Times Square—the first time net capital to devise a new plan. early that year, throwing the in its four-decade existence 200 2.5 Potentially adding uncer- plan’s fate up in the air. The that the clearinghouse partici- tainty, the NYSE recently con- SEC is currently re-reviewing pated in the tradition. 15 100 2.0 sidered selling its stake in OCC, it on the order of a U.S. ap- “He’s taking his CME rein- according to people with knowl-

peals court. A spokesman for vention hat over to OCC,” said 10 REVENUE 0 1.5 edge of the matter. The Deposi- the SEC declined to comment. Craig Pirrong, a professor at tory Trust & Clearing Corp., a Though the plan remains in the University of Houston who 100 1.0 clearinghouse for stocks and place and has been paying divi- has consulted for exchanges. 5 bonds, approached OCC about a 200 0.5

dends to shareholders, its fu- For decades, OCC’s potential EXPENSES potential merger, but those ture is unknown. Shareholder to generate cash sat untapped. talks have since cooled, accord- 0 300 0 payouts have been climbing It essentially operated as a ing to the people. since their inception in 2015, nonprofit utility for the indus- 2015 ’16 ’17 2008 ’10 ’12 ’14 ’16 2008 ’10 ’12 ’14 ’16 The DTCC is “continually as- hitting a high in 2017, accord- try. Money made from clearing Sources: Court documents, SEC comment letters, OCC ﬁnancial statements (methods); * Shareholders contributed $150 million. sessing opportunities to en- ing to OCC financial statements fees was spent mostly on bare- SEC comment letters, OCC (returns); OCC (revenue and expenses, fees) THE WALL STREET JOURNAL. hance our support of clients, and comments to the SEC. bone expenses, and leftover improve operational efficien- Mr. Donohue defended his cash was returned to members, holders, which are the three turn for cash posted by the ex- in the markets, affecting how cies and strengthen risk man- actions in an interview last like banks and other firms that biggest options-exchange op- changes to OCC. difficult it is to swoop in and agement across the industry,” November. “I’m confident that give traders access to clearing. erators—Intercontinental Ex- Options traders say the plan out of positions. They say it a spokesman said. “There is we did a professional and Under the new plan spear- change Inc.’s New York Stock could hurt investors by making exploits the clearinghouse’s nothing specific to report at thorough job,” he said. “We headed by Mr. Donohue, Exchange, Nasdaq and Cboe it more onerous to trade and monopolistic position, since all this time.” The NYSE and OCC think this is the right plan.” money is paid to the share- Global Markets Inc.—in re- potentially crimping liquidity listed options trades funnel declined to comment. B4 | Thursday, August 23, 2018 **** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech Facebook Cuts Security App From Apple Store

BY DEEPA SEETHARAMAN Facebook that Onavo also violated a part of its developer Facebook Inc. pulled its agreement that prevents apps data-security app from Apple from using data in ways that go Inc.’s app store after the iPhone beyond what is directly relevant maker ruled that the service vi- to the app or to provide adver- olated its data-collection poli- tising, the person added. cies, according to a person fa- Apple officials suggested miliar with the matter. that Facebook voluntarily take Apple’s decision widens the down the app and Facebook schism between the tech giants agreed, said the person, who over privacy and is a blow to described the discussions as Facebook, which has used data cordial. The app won’t vanish gathered through the app to from the phones of users who track rivals and scope out new already downloaded the app, product categories, The Wall but Facebook will no longer be Street Journal reported last able to push updates. Onavo year. The app, Onavo Protect, will still be available on An- has been available free through droid devices, the person said. Apple’s app store for years. Apple said its updated

Onavo allows users to create guidelines made clear that WANG ZHAO/AGENCE FRANCE-PRESSE/GETTY IMAGES a virtual private network that apps shouldn’t collect infor- The Chinese company is one of the few big smartphone vendors to post rising sales in the increasingly cutthroat handset market. redirects traffic to a private mation about other apps in- server managed by Facebook. stalled on a user’s device for Facebook is able to analyze analysis or marketing. Onavo users’ activity to get a “We’ve always been clear Xiaomi Gets Back to Profit picture of how people use their when people download Onavo phones beyond Facebook’s apps. about the information that is Earlier this month, Apple of- collected and how it is used,” Smartphone maker Xiaomi’s results were “Our performance is on stores, stepping up its efforts ficials informed Facebook that a Facebook spokesman said. skewed by a number of un- track and exceeds market ex- to reach more rural parts of the app violated new rules out- “As a developer on Apple’s issues first earnings usual factors, including 9.9 bil- pectations,” Chew Shou Zi, the the country. lined in June designed to limit platform we follow the rules report since its IPO; lion yuan worth of stock-based company’s chief financial offi- Still, the $54 billion valua- data collection by app develop- they’ve put in place.” compensation to executives, cer, told investors. tion the company earned in its ers, the person familiar with the —Tripp Mickle revenue rises by 68% accounting for a payout to Xiaomi faced a rocky path IPO was well below the $100- situation said. Apple informed contributed to this article. Chief Executive Lei Jun. leading up to its IPO last billion-plus it originally sought BY DAN STRUMPF The Wall Street Journal month. Though the company in the lead-up to the stock reported in June that Xiaomi is best known for internet- sale. HONG KONG—Chinese was awarding Mr. Lei one of connected gadgets such as Xiaomi shares are up 4% Social-Media Site Bans Quiz App smartphone maker Xiaomi the biggest executive payouts smartphones, rice cookers since its $4.7 billion Hong Facebook Inc. on Wednes- months after the app was ini- Corp. swung to a profit in the in history—about $1.5 bil- and air purifiers, it sold it- Kong offering on July 9, day banned from its platform tially suspended by Facebook second quarter as smartphone lion—as the company was self to investors as an inter- though they are down 18% a quiz app that could have ex- and four months after the sales rose sharply, but the re- preparing to go public. net stock—akin to Facebook from their post-IPO highs. posed the data of as many as company was alerted to the sults were weighed down by a The company didn’t break Inc. or China’s Tencent Shares of tech companies have four million users, after the fact that user data gathered by big bonus payment for its out Mr. Lei’s compensation Holdings Ltd.—to try to get broadly sold off in recent developers declined to be au- myPersonality could be ac- chief executive. in the report. a higher valuation, according weeks, with the Hang Seng In- dited by the social-media giant cessed relatively easily online, The results marked the first Smartphone and other gad- to people familiar with the ternet and Information Tech- as part of its effort to track according to a Facebook quarterly earnings report for get sales rose sharply during matter. nology Index down 7% since down potential abuses. spokeswoman. The app hasn’t Xiaomi since its $4.7 billion the quarter, the company said. Though Xiaomi offers inter- the Xiaomi IPO. Facebook said it banned the been used much since 2012. initial public offering of stock Shipments of the company’s net services that it uses to Still, the company remains app, called myPersonality, “for One researcher behind the in Hong Kong last month. smartphones increased 44% to push out advertisements and one of the few big smartphone failing to agree to our request app, David Stillwell, called the The Beijing-based company 32 million during the period. other services to its gadget us- vendors to post rising sales in to audit and because it’s clear ban “nonsensical and purely posted a profit during the sec- Those gains helped it pull ers, the company still made the increasingly cutthroat that they shared information for PR reasons.” Facebook said ond quarter of 14.63 billion ahead of rivals like Samsung 67% of its revenue from handset market. with researchers as well as it had no evidence that myPer- yuan ($2.14 billion), compared Electronics Co. in key markets smartphones in the latest The company also said sales companies with only limited sonality accessed records about with a loss of 12 billion yuan a such as India, where it is the quarter. It said it has built a of its “internet and lifestyle protections in place.” its users’ Facebook friends. year earlier. Revenue rose 68% top-ranked vendor, according supply network across China products” more than doubled The move comes almost five —Deepa Seetharaman to 45.24 billion yuan. to industry tracker IDC. that reached more than 360 to 10.4 billion yuan.

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—Colin Kellaher DANIEL MCKINNEY

wsj_20180823_b004_p2jw235000_4_b00400_1______xa2018.crop.pdf 1 23-Aug-18 06:11:41 THE WALL STREET JOURNAL. Thursday, August 23, 2018 | B5 MANAGEMENT How to Cope When Undermined at Work Mistreatment of women by female colleagues still happens and can range from putdowns to intentional sabotage, experts say

BY JOANN S. LUBLIN woman’s importance by occasionally praising her competi- Do some women under- tive prowess during meetings. mine other women? It is one The complimented vice presi- of the trickiest workplace is- dent subsequently ap- sues. proached her colleague and Managerial women often “created a couple of things hesitate to speak openly that they could collaborate about female on,” Ms. Sharpnack said. YOUR colleagues un- Such moves don’t always EXECUTIVE dercutting work. An executive recruiter CAREER each other— tried—and failed—to mend a and not just strained relationship through because doing respectful chats after placing so seems to reinforce a nega- a longtime friend in the high- tive stereotype. Even those est human-resources job at an who have clashed with female East Coast hedge fund. The colleagues say broader gen- friend soon turned on her, der bias in pay and promo- lambasting the recruiter’s tions pose bigger career ob- judgment and fees in front of stacles. And such the fund’s CEO. undermining appears less “I was being betrayed and common than it used to be as undermined by the very per- more women reach higher son I had introduced to the management and actively firm,” the recruiter said. Dur- mentor less experienced ing one face-to-face encoun- women. ter about her mistreatment, Nevertheless, run-ins with the recruiter said the HR undermining women at work chief blamed work-related can still happen, career advis- stress and said, “Don’t take it ers and recruiters say, and personally.’’ there are ways of coping. A New York lawyer at an Among them: Find allies in Asian bank curbed her female the office who support you, mentor’s unsupportive behav- said Gail R. Meneley, co- ior by divulging less. In 2013,

founder of Shields Meneley ELLEN WEINSTEIN the lawyer told her mentor Partners, a career-transition that she planned to take ad- firm for top executives. Yeatman advises the female eral female executives report- treated disrespectfully. It undermined, the only re- vantage of their company’s “You must forge close chief executive officer of a ing to her and is expanding found that women mistreated course is to change jobs. policy and work from home enough ties that those allies family-owned consulting firm that pool. by female counterparts re- Kerry Jordan, a financial-ser- one day a week once she re- can judge you and your work whose board chairwoman be- There remains little agree- ported lower job satisfaction. vices industry veteran, said a turned from maternity leave. themselves,” she said. littles her in front of her ment on the extent of the “We are the first to help female executive she reported Her mentor cautioned that Women who undermine management team. problem of women undermin- clarify that it [incivility] to in a past position repeat- “you really are giving up your other women sometimes do “My client’s boss makes ing other women, but recent seems to be more of an expe- edly undermined her, includ- career plans,” she said, and so when they feel precarious her feel like she’s underper- research sheds some light on rience women are experiencing criticizing her public- mocked the altered schedule, about their own position and forming, and so she wonders such misbehavior. Women are ing from other women than speaking skills to their joking sarcastically that she view the other woman as a if she really is as good as she 14% to 21% more likely than from men,” Ms. Gabriel said. colleagues behind her back. would “love to work in my competitive threat, experts believed and her results indi- men to report experiencing Most women at a 2016 When the female supervisor pajamas once in a while.” say. This attitude can stem cate,” Ms. Yeatman said. uncivil treatment from female program on female rivalry nixed Ms. Jordan’s request to The lawyer stopped dis- from the belief that there are “Women shouldn’t tolerate co-workers, according to a hosted by the National Asso- accept an outside director- cussing her personal life with limited avenues for women to bad behavior just because it study led by Allison S. Ga- ciation for Female Executives ship, she left the company. the executive. “I don’t want advance in an organization. comes from another woman.” briel, an associate professor reported that other women Rayona Sharpnack, an or- to share things that can be Mistreatment can range Workplaces, of course, at University of Arizona’s had undermined them, yet ganizational consultant, said used against me,” she said. from humiliating putdowns to abound with examples of sup- Eller College of Management. only a handful admitted to she counseled a vice presi- —Ms. Lublin, former intentional sabotage, and tar- portive women helping other The study, which reflects acting that way themselves, dent at a Fortune 500 health- management news editor at geted women tend to be out- women succeed. Mary Barra three surveys covering 1,340 said Betty Spence, president care company who told the The Wall Street Journal, is spoken and are often chided became the first woman to male and female employees in of NAFE. consultant that another fe- the author of “Earning It: for making their voices heard, head a major car company in the U.S. in a variety of occu- “Women don’t see them- male VP stole customers and Hard-Won Lessons from career advisers and research- 2014 when she was named pations and industries, de- selves as undermining other territory from her. Trailblazing Women at the ers say. chief executive at General fined incivility as being ig- women,” she said. Ms. Sharpnack persuaded Top of the Business World.” Leadership coach Perry Motors Co. Ms. Barra has sev- nored, interrupted, mocked or For some women who feel her client to signal the other (HarperCollins).

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The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. Santos Boosts Gas Business Wednesday, August 22, 2018 52-Wk % 52-Wk % 52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg BRSS 38.40 0.4 SPNE 15.25 4.8 BY RHIANNON HOYLE GlobalBrass SeaSpine covery in oil prices. partners control about 22%. Santos said its purchase will Highs GlobalPtrsPfdA GLPpA 26.24 -0.3 SeattleGenetics SGEN 76.48 0.8 GrandCanyonEduc LOPE 123.30 ... SeaWorldEnt SEAS 26.72 0.8 Santos Chief Executive The rest is held directly or in- be funded by existing cash re- AMC Ent AMC 19.55 0.8 GreenDot GDOT 86.44 1.2 ServiceCorp SCI 42.22 -0.1 ANGI Homesvcs ANGI 21.10 4.3 SYDNEY—Santos Ltd. said Kevin Gallagher said the Quad- directly by Wesfarmers Ltd., sources and new committed HD Supply HDS 46.02 0.3 SotherlyHotels SOHO 7.31 2.0 AT&T Nts 2067 TBC 24.95 0.2 HackettGroup HCKT 19.72 1.0 Square SQ 76.83 1.7 it would buy Quadrant En- rant deal will be “materially AMB Holdings and Quadrant debt. Since taking the helm in ATN Intl ATNI 75.94 -1.1 Harsco HSC 27.10 1.7 StaarSurgical STAA 44.10 1.6 Aaron's AAN 51.19 1.2 ergy, the natural-gas company value accretive for Santos management. early 2016, Mr. Gallagher had HaymakerAcqWt HYACW 1.25 4.2 StevenMadden SHOO 58.25 ... AcerTherap ACER 34.10 6.7 shareholders and advances Quadrant holds more than HealthInsInnov HIIQ 56.95 3.6 StitchFix SFIX 37.33 1.9 whose owners include Brook- tied Santos’s future to the AdvanceAuto AAP 161.97 0.4 HealthStream HSTM 31.01 0.7 StrategicEd STRA 138.84 -0.7 field Business Partners, the Santos’ aim to be Australia’s 20,077 square miles of natural- GLNG gas-export operation in AdvDrainageSys WMS 32.15 -0.8 Heico HEI 80.96 -0.6 SutherlandAsset SLD 17.00 0.6 AdvMicroDevices AMD 20.92 2.5 publicly traded arm of To- leading domestic natural-gas gas and oil acreage, mainly in east Australia that counts To- Heidrick&Strug HSII 44.55 2.3 TJX TJX 107.56 -0.7 AgreeRealty ADC 57.04 -0.1 HershaHospitality HT 22.59 0.8 TabulaRasaHlth TRHC 79.28 0.9 ronto-based Brookfield Asset supplier.” the Carnarvon Basin offshore tal SA among its partners, the AirT AIRT 35.74 -1.1 Hill-Rom HRC 97.61 0.6 TandemDiabetes TNDM 38.40 5.9 Alarm.com ALRM 57.92 1.7 Management Inc., for $2.15 bil- of Western Australia state. PNG LNG operation in Papua HomeFedBncpLA HFBL 35.98 -1.6 TargaResources TRGP 55.80 2.6 AllegroMerger ALGR 9.59 ... Infr&EnerAltern IEA 10.86 3.4 TargaRscsPfdA NGLSpA 27.38 0.7 lion as it seeks to build its Santos estimated savings of New Guinea, the Darwin LNG AltisourcePortf ASPS 37.86 -0.2 Inseego INSG 2.94 11.1 Target TGT 88.89 3.2 AmalgamBank AMAL 17.05 2.4 Australian gas business. $30 million to $50 million a project in northern Australia IntelligentSys INS 14.98 12.5 TetraTech TTI 5.11 -1.0 Amedisys AMED 122.00 1.6 Quadrant holds more InterParfums IPAR 66.05 0.8 TottenhamAcqnI TOTAU 10.24 0.5 Santos, one of the largest year from merging the busi- and assets including in the AmerEagle AEO 29.88 -0.8 IntlSeawaysNts23 INSWpA 25.28 0.1 TractorSupply TSCO 87.19 3.5 AmerExpress AXP 106.26 1.0 independent oil-and-gas pro- than 20,077 square nesses. Cooper Basin straddling South Invitae NVTA 11.49 4.4 Transcat TRNS 25.35 1.5 AmerSoftware AMSWA 17.41 1.1 ducers in the Asia-Pacific re- The deal will include possi- Australia and Queensland IridiumComm IRDM 21.25 -0.7 US BancorpPfdK USBpP 25.34 0.1 ApolloGlPfdB APOpB 25.33 0.1 miles of natural-gas IridiumCommPfdB IRDMB 702.71 1.7 UnionAcqnUn LTN.U 10.45 1.0 ble royalty payments tied to AquaVenture WAAS 18.72 1.6 gion, has been chasing growth states. iRobot IRBT 106.05 3.8 UniversalHealthB UHS 129.32 0.4 ArborRealty ABR 11.82 0.7 close to home, pledging to ex- and oil acreage. future production from the “This acquisition delivers JackHenry JKHY 155.79 7.8 UrbanOutfitters URBN 52.50 -4.7 AresCommRealEst ACRE 14.47 -0.2 KAR Auction KAR 64.55 -0.8 VectoIQAcqn VTIQ 9.64 -0.1 pand near existing infrastruc- Bedout Basin off Western Aus- increased ownership and oper- ArloTech ARLO 23.14 4.0 KalVistaPharm KALV 18.47 7.4 VeevaSystems VEEV 89.19 2.2 AscenaRetail ASNA 5.29 ... ture and diversify its mainly tralia, where Quadrant re- atorship of a high-quality port- KSCitySouthern KSU 118.55 -1.6 Verso VRS 29.60 -1.5 AspenTech AZPN 110.55 0.7 KeysightTechs KEYS 70.40 6.2 ViaviSolutions VIAV 11.41 1.0 oil-linked revenue. The com- cently reported the sizable Do- folio of low-cost, long-life con- AtkoreIntl ATKR 28.34 ... Kohl's KSS 82.22 -1.4 VinceHolding VNCE 24.17 4.8 ATRC 33.61 3.3 pany over the past few years Brookfield Business Part- rado-1 oil discovery. ventional Western Australian AtriCure Koss KOSS 4.69 5.9 Virtusa VRTU 56.26 3.0 ATTU 20.19 3.8 Attunity Kroger KR 31.99 1.2 Wayfair W 129.06 1.9 has rebuffed several takeover ners and its institutional part- Quadrant Energy was estab- natural-gas assets which are ADP 143.62 0.2 ADP LHC Group LHCG 99.30 1.3 WellCareHealth WCG 297.58 -0.2 AVNS 71.84 2.7 offers, the latest from private- ners control roughly 48% of lished in 2015 following the well known to Santos, and im- AvanosMedical LRAD LRAD 3.28 0.6 WestamericaBncp WABC 64.61 0.7 AVT 49.33 -1.0 Avnet La-Z-Boy LZB 39.15 13.1 WolverineWwide WWW 38.83 0.1 equity-backed Harbour En- Quadrant, while Macquarie $2.1 billion sale of Apache En- portantly significantly RILYH 25.73 0.1 B.RileyNts2023 LadderCapital LADR 17.38 -0.3 Worldpay WP 94.90 1.1 BEL 16.55 1.2 ergy Ltd. valued at more than Capital, part of the financial- ergy’s Western Australian oil strengthens Santos’s offshore Belmond LindbladExpedWt LINDW 4.33 1.2 Yext YEXT 25.12 2.3 BBY 84.37 -0.6 $10 billion that Santos in May services company Macquarie and gas assets to the Brookfield operating capability,” Mr. Gal- BestBuy Lowe's LOW 109.80 5.8 ZebraTech ZBRA 171.23 0.2 BLFS 24.98 -2.7 BioLifeSols MagnoliaOilWt MGY.WS 4.07 4.5 Zumiez ZUMZ 31.80 ... said was too low given the re- Group, and its institutional and Macquarie-led consortium. lagher said. BEAT 58.90 2.8 BioTelemetry MagnoliaOil MGY 14.09 1.5 BHBK 23.65 2.0 BlueHillsBncp ManhattanAssoc MANH 55.42 1.1 Lows BoozAllen BAH 50.72 0.3 116.75 0.9 Masimo MASI BancoMacro BMA 44.47 4.5 BrookfieldBusPtr BBU 42.50 2.4 21.75 2.1 MatrixService MTRX BioTimeWt BTX.WS 0.01 -25.5 Brown&Brown BRO 30.39 -0.3 96.14 0.4 Medtronic MDT CPFLEnergia CPL 10.56 1.9 CACI Intl CACI 194.95 ... 12.55 0.9 MesaAir MESA Cango CANG 8.20 -5.1 Curo CURO 30.21 1.6 75.10 2.9 Methanex MEOH CementosPacasm CPAC 10.75 -1.9 CalavoGrowers CVGW 104.95 2.8 75.96 -1.6 MichaelKors KORS Cemtrex CETX 1.63 -9.3 Caleres CAL 39.13 0.8 MinervaNeurosci NERV 9.75 8.4 CommunityFin TCFC 33.53 -0.1 CanPacRlwy CP 206.96 0.6 Congress Lends Ear to Price-Gouged MolinaHealthcare MOH 140.75 0.5 Copa CPA 81.06 -2.7 CanopyGrowth CGC 40.40 3.6 MongoDB MDB 66.64 2.2 Cosan CZZ 6.66 0.7 Carbonite CARB 41.80 1.2 MonolithicPower MPWR 146.72 0.6 Daktronics DAKT 7.51 -2.2 Cardtronics CATM 38.15 1.9 MyriadGenetics MYGN 48.87 12.5 DarioHealth DRIO 0.89 15.1 CareDx CDNA 20.26 15.6 Natera NTRA 26.65 2.4 DelphiTechs DLPH 37.44 -4.8 Catasys CATS 8.92 4.9 NatlBankHoldings NBHC 41.44 0.5 EagleBncpMT EBMT 16.85 1.9 Hearing Aid Users… Sort Of CavcoIndustries CVCO 242.50 -0.1 140.30 -0.1 NatlPrestoInds NPK FiveStarSrLiving FVE 1.00 -4.8 Chegg CHGG 31.44 -0.1 NaturalHlthTrends NHTC 26.85 1.7 Genprex GNPX 2.50 -4.5 ChesapeakeLodging CHSP 33.09 0.3 NavigatorsGroup NAVG 70.13 8.8 GreenPlainsPtrs GPP 15.30 0.6 CTRN 32.95 1.7 CitiTrends Neogen NEOG 87.41 0.9 GreenlandAcqnRt GLACR 0.31 2.9 CLH 66.50 2.1 CleanHarbors NexPointResidentl NXRT 33.04 0.8 GpoFinGalicia GGAL 27.36 3.3 CTRL 36.39 2.9 The Good News? Control4 NextEraEnergy NEP 50.66 -2.6 GpoSupervielle SUPV 8.63 5.0 CPRT 63.25 0.8 Copart Nike NKE 83.68 -0.4 GuangshenRail GSH 22.38 -2.5 CORE 35.17 -0.7 Core-Mark NomadFoods NOMD 20.67 -0.3 HartfordFinSvcsWt HIG.WS 45.25 -4.4 Hearing aid prices are Costco COST 230.23 0.3 45.15 0.6 NorthrimBanCorp NRIM iPass IPAS 0.18 -8.3 20.71 1.2 Crocs CROX Novanta NOVT 77.53 3.1 JustEnergy JE 2.88 -2.0 15.75 1.7 CrossTimbers CRT OaktreeCapPfdA OAKpA 25.95 0.2 LomaNegra LOMA 8.43 -0.5 going down! 34.35 4.6 CryoLife CRY OldRepublic ORI 22.37 -0.2 NewAgeBev NBEV 1.30 -16.7 139.24 1.5 DexCom DXCM Ollie'sBargain OLLI 80.95 0.3 NovaBayPharm NBY 1.90 -2.6 27.48 -1.8 DiscoveryC DISCK Omnicell OMCL 66.95 0.8 Novan NOVN 2.27 6.1 109.05 -0.3 The Bad News? DollarGeneral DG OspreyEnergy OSPR 11.40 0.4 Oi OIBR.C 3.56 -2.7 139.90 1.3 EPAM Systems EPAM PGT Innovations PGTI 25.95 -1.0 OneSmartIntlEduc ONE 8.50 -0.4 100.02 ... EtnVncGlbIncBldr EVGBC PacerCFRAStovall SZNE 25.84 0.3 PacificEthanol PEIX 1.70 -9.0 Congress wants you to EldoradoResorts ERI 49.20 3.1 ParkHotels PK 33.40 0.6 PacGE pfC PCGpC 20.50 -2.1 EmergentBiosol EBS 60.91 1.0 PaycomSoftware PAYC 145.74 0.9 PacGE pfG PCGpG 19.01 0.6 EncompassHealth EHC 82.46 1.3 PennyMacTr PMT 20.07 -0.1 PacGE pfH PCGpH 18.20 -0.4 wait... But you don’t Energen EGN 79.73 1.3 PetIQ PETQ 39.20 6.2 PriorityIncmPfdA PRIFpA 24.27 ... EnstarPfdD ESGRP 26.19 0.3 PhibroAnimal PAHC 51.09 -1.3 RegionalHlthPfdA RHEpA 1.25 1.0 EnvivaPartners EVA 32.45 0.8 Pluralsight PS 33.00 1.8 RoadrunnerTrans RRTS 1.58 -5.3 have to! EPRT 14.40 0.4 26.30 14.3 EssentialProp PureStorage PSTG SafeguardSci SFE 9.90 -0.5 Everbridge EVBG 58.76 2.6 QTSRealtyPfdB QTSpB 109.95 0.1 SearsHoldings SHLD 1.15 -4.1 F5Networks FFIV 185.00 0.6 Qiagen QGEN 39.34 2.8 SelectInterior SIC 12.20 -1.6 Popular, doctor-made FairIsaac FICO 222.49 1.6 RPM RPM 66.08 -0.2 SifcoInd SIF 4.80 ... FirstBanCorp FBP 9.00 1.2 Regis RGS 22.40 3.4 SkySolar SKYS 0.78 -5.7 FirstCitizBcshA FCNCA 474.63 1.1 RenaissancePfdF RNRpF 25.74 1.1 Sparton SPA 11.96 0.4 hearing aid costs FiveBelow FIVE 114.71 1.2 RenewableEnergy REGI 26.20 3.8 StreamlineHlth STRM 1.12 -2.2 Five9 FIVN 45.37 0.4 Repligen RGEN 51.79 0.7 SuperMicroComp SMCI 14.20 -14.7 Fortinet FTNT 78.01 1.4 Rollins ROL 58.12 0.2 TelefonicaBras VIV 9.72 -0.5 82.2% Less*! ForwardAir FWRD 65.11 -0.4 S&T Bancorp STBA 46.74 0.6 UltraparPart UGP 10.24 2.1 Funko FNKO 23.67 6.7 SIGA Tech SIGA 8.47 -0.8 VectorGroup VGR 16.17 -1.8 Genesco GCO 47.40 -0.2 SM Energy SM 30.10 2.3 WorkhorseGroup WKHS 1.02 -7.1 For millions of Americans Can You Tell the Difference? These hearing aids have similar GlacierBancorp GBCI 45.52 0.3 SPS Commerce SPSC 96.58 0.4 YatraOnline YTRA 4.62 -2.1 who need hearing aids but technological features, yet one costs 82.2% less. IPO Scorecard can’t afford them, here’s some Performance of IPOs, most-recent listed first overcharged, one board- overly amplifying background % Chg From % Chg From welcome news. Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day certified otolaryngologist sounds.” IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close After years of listening to has listened attentively to his Bionano Genomics 6.30 2.8 2.4 Spartan Energy Acquisition 10.12 1.2 0.5 “They have great sound BNGOU Aug. 21/$6.13 SPAQ.U Aug. 10/$10.00 consumer complaints about patients’ complaints and has Tenzing Acquisition 10.03 0.3 ... Vaccinex 11.00 –8.3 –3.3 overpriced hearing aids, the clarity,” says new MDHear- TZACU Aug. 21/$10.00 VCNX Aug. 9/$12.00 done the unthinkable. TKK Symphony Acquisition 10.02 0.2 –0.2 Arlo Tech 21.48 34.3 –2.8 US Congress has come to the ingAid customer, Phillip G. TKKSU Aug. 16/$10.00 ARLO Aug. 3/$16.00 A Chicago-based MD “They work for my hearing loss Aridis Pharmaceuticals 12.87 –1.0 –1.0 Forum Merger II 10.01 0.1 0.6 rescue… so to speak. ARDS Aug. 14/$13.00 FMCIU Aug. 3/$10.00 frustrated by his patients’ exceptionally well. I have had Mesa Air Grp 12.44 3.7 5.9 Tottenham Acquisition I 10.23 2.3 1.0 Lower Prices Ahead? inability to purchase hearing them for two weeks and they MESA Aug. 10/$12.00 TOTAU Aug. 2/$10.00 When the OTC Hearing aids, has taken matters into only get better with time.” Sources: Dow Jones Market Data; FactSet Research Systems Aid Act of 2017 takes effect, his own hands and created Same Features as Hearing ADVERTISEMENT it will wrest control of hearing a low-cost, feature-packed Aids Costing 10X More aid sales from state licensed hearing aid that costs over 80 MDHearingAids have the The Marketplace audiologists – the #1 cause of percent less than comparable To advertise: 800-366-3975 or WSJ.com/classiﬁeds same technologically advanced astronomical hearing aid pricing hearing aids. 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Call Toll-Free 1-800-966-4403 www.earn11.com Save Up To 60% First & Business Or Visit: www.TryMDHearingAid3.com EARNup to11% INTERNATIONAL *82.2% less when comparing MDHearingAid AIR to the average price of a mid-level hearing aid of $2,250, according to a survey recently INVESTING IN 1st MORTGAGES Major Airlines, Corporate Travel Short Term, High Yield, Low LTV. Never Fly Coach Again! published by the Hearing Review. Secure & Great Monthly Income. www.cooktravel.net Call 800-359-1111 (800) 435-8776 B10 | Thursday, August 23, 2018 THE WALL STREET JOURNAL. BANKING & FINANCE Hartford to Buy Navigators JPMorgan Lays Off 100 In Asset Management Insurer expects the come leaner organizations or During a second-quarter find transactions to improve earnings call last month, Hart- BY EMILY GLAZER JPMorgan spokeswoman $2.1 billion purchase their bottom lines. ford Chief Executive Christo- Kristen Chambers said. “Any to add to its earnings A decade of ultralow inter- pher Swift said the company JPMorgan Chase &Co.is reductions will be relatively est rates hurt insurance com- was seeking deals in commer- laying off around 100 em- small and will not impact our starting next year panies’ ability to earn interest cial specialty lines and indus- ployees in its asset-manage- continued investment in cli- income on premiums that they try verticals. He previously ment division as the bank ad- ent coverage and our busi- BY KIMBERLY CHIN receive. said Hartford was targeting justs staffing amid market ness.” The Hartford, Conn., insur- deals in the $1 billion-to-$2 shifts, people familiar with In the quarter ended June Hartford Financial Ser- ance company was also hard- billion range. the matter said. 30, JPMorgan reported reve- vices Group Inc. agreed to buy hit during the financial crisis, In the deal announced The layoffs, which amount nue of $1.8 billion from its insurance underwriter Naviga- when it had to take $3.4 billion Wednesday, Navigators share- to 1% to 2% of the division, asset-management business, tors Group Inc. for $2.1 bil- in U.S. government aid, which holders would receive $70 a are occurring throughout the a 2% increase from a year lion, as the firm looks to spe- it has since repaid. The firm share in cash, an 8.9% pre- business and in cities around earlier. cialty lines of business for was particularly vulnerable mium to Tuesday’s closing the world, the people said. During a mid-June inves- growth. due to its long market-leading price. The bank already has laid tor presentation, asset and The purchase of Navigators, position in sales of a stock- Hartford expects the pur- off employees in its fixed-in- wealth management head which will bring its global ma- market-linked retirement-in- chase to add to its profits come, administration and Mary Callahan Erdoes said rine, construction and energy come product that proved starting in 2019 and $200 mil- sales groups, with layoffs in JPMorgan is constantly eval- liability lines of business to riskier than anticipated. lion to annual core profits its equity group also ex- uating its strategies. Hartford, comes less than a Shares of Hartford fell over four to five years. pected, the people said. “There are funds that need

year after the company agreed $2.18, or 4.2%, to $50.16 in PETER FOLEY/BLOOMBERG NEWS Stamford, Conn.-based Nav- The asset-management to be shut, there are funds to acquire an Aetna Inc. unit Wednesday trading, while Hartford CEO Christopher Swift igators, founded in 1974, also layoffs were spurred by an that need to be consolidated, that provides insurance prod- shares of Navigators rose serves the U.S. excess casualty internal review that identi- there are fees that need to be ucts to U.S. employers’ bene- $5.65, or 8.8%, to $69.90. sult in earnings growth over and surplus insurance mar- fied potential staffing adjust- cut and there are funds that fits programs. Wells Fargo analyst Elyse time. kets. It has 820 employees at ments, one of the people said. need to be started, and there Insurers such as Hartford Greenspan said in a note that “For HIG, shareholders had 22 locations in the U.S. and “We routinely review our are funds that need to be in- have been under significant Hartford shares were likely to hoped for capital return as op- eight locations internationally. coverage model to ensure ap- vented, and there are things pressure in recent years, with trade lower as some investors posed to M&A,” Ms. Greenspan —Bowdeya Tweh propriate staffing levels that need to be changed,” she many choosing to either be- express doubt the deal will re- said. contributed to this article. across a variety of functions,” said.

A Bull Record, for Now Outside Appeal Japanese mom-and-pop investors have snapped up bonds known Currencies in developing as Uridashi, often denominated in foreign currencies. economies have dropped, BY MICHAEL WURSTHORN would be the Jan. 26 close of when few had access to real- Biggest overseas Uridashi Monthly issuance of Turkish particularly Turkey’s lira. 2872.87, about 10 points north time data and powerful com- markets* lira-denominated Uridashi Change against the U.S. dollar The debate about the lon- of where the index closed on puters weren’t widely avail- bonds for Japanese investors 10% gest-ever S&P 500 rally is both Tuesday and Wednesday. able to quickly spit out alive and well. This all might seem impos- factoids and comparisons with Australian $16.5 billion 0 The S&P 500 has been in a sibly arcane, but there is some previous periods. dollar $300 million “bull market” for 3,453 days, small part of financial history They contend the S&P 500 U.S. –10 meaning it is at least 20% at stake. In the (for now) un- intraday record Tuesday 13.3 dollar above a previous low and hasn’t likely event that the S&P 500 stands and that even if the in- 200 –20 suffered a 20% decline from a drops 20% before it reaches a dex now drops 20% over com- Brazilian 10.7 record in almost 10 years. new closing high, the current ing days, months and years, it real Fornow,thatisadaylon- bull market that started in would be tied for first with –30 100 Indian rupee ger than the previous record March 2009 will be rolled the bull run of the 1990s. Turkish 7.6 –40 South African rand bull market—the one that back and judged retrospec- It isn’t unusual for the in- lira Brazilian real ended in March 2000 with the tively to have ended with the dex hit several intraday re- Turkish lira Mexican 0 –50 collapse of the tech bubble— last record close, said Howard cords and fail to clinch a new 3.8 according to S&P Dow Jones Silverblatt, a senior index ana- closing high before sliding into peso 2016 ’17 ’18 2018 Indices. lyst with S&P Dow Jones Indi- bear-market territory. In 2007, *Estimated total outstanding But the case isn’t quite ces. That would shave 208 the S&P 500 reached a closing Sources: Thomson Reuters (Uridashi markets, lira-dominated bonds); Tullett Prebon (currencies) THE WALL STREET JOURNAL. closed yet. In the argot of the days from the current bull and high of 1565.27 on Oct. 9, and stock market, the latest bull restore 1990-2000 as the lon- proceeded to hit two more in- market hasn’t yet been “con- gest bull run in history. traday records in the ensuing TurkeyMeltdownHitsJapan firmed” by a record closing Other market participants days. But the index went on to high. The S&P 500 hit a new view intraday data as suffi- fall 56% over the next year- all-time intraday record on cient for settling these sorts of and-a-half as the financial cri- Turkey’s financial trouble the Indian rupee, Indonesian funding at the World Bank’s Tuesday at 2873.23, but many debates, reasoning that the sis deepened, and the S&P 500 has claimed some distant vic- rupiah and Brazilian real are International Finance Corp., analysts view a closing record longstanding reliance on clos- wouldn’t hit another closing tims: small investors in Japan, at or near multiyear lows. said the Uridashi market was as the relevant standard. That ing data is a relic of the past, record until March 28, 2013. who have dabbled in emerg- Yasuyuki Tokue, a 49-year- an important source of funding-market assets to escape old legal professional who ing for the IFC, letting it reach superlow domestic returns. lives near Osaka, said he Japanese retail investors. bought lira bonds with a face Issuers typically use deriva- Only $29! By Suryatapa value of 7.5 million yen tives known as cross-currency You would be hard pressed Bhattacharya in Tokyo ($67,500) between 2015 and swaps. This effectively means and Saumya to find a timepiece of this 2017. “I was attracted by the they can borrow relatively Vaishampayan high interest rate,” Mr. Tokue cheaply in dollars, while the outstanding quality in Hong Kong said. However, he said he Japanese bond buyers, who and precision at ended up losing 1.2 million yen purchase through local broker- this price. The upset illustrates the when he sold some bonds back ages, get the higher rates suit- appetite for risk among an to his broker in April, and his able for an emerging market. army of punters often dubbed outstanding holdings have While there is no market “Mrs. Watanabe,” after the fallen in value. “I made a mis- for trading Uridashi, brokers stereotypical Japanese home- take” in failing to hedge cur- can buy them back at face maker. Last year, Deutsche rency risk, Mr. Tokue said. value in the local currency for Bank researchers said these An investor in Yokohama a fee, and sell them back to buyers had fueled a rally in said he had lost about 300,000 the underwriter or to another  bitcoin and made up half of yen on lira bonds bought in investor. In Mr. Tokue’s case, global foreign-exchange trad- 2012, or about 65% of his orig- he said he paid fees equal to “Are you kidding? ing using borrowed money. between 3.2% and 8% of the What a great watch Individuals have snapped total on the bonds he sold. at a ridiculous price. up Uridashi, high-yielding ‘I made a mistake’ However, because the bonds Thank you Stauer!” bonds marketed to households aren’t in the owner’s home that are frequently denomi- in failing to hedge currency, they can fall or rise — Gitto, Hicksville NY nated in foreign currencies in value even if the issuer’s such as the lira, Brazilian real currency risk, said creditworthiness doesn’t and South African rand. These a Japanese investor. change. Buybacks don’t com- It’s Enough to Make You aren’t highly leveraged instru- pensate the investor for any ments, but usually regular such move. bonds. However, they offer Market participants reckon Blue in the Face juicy returns thanks to ele- inal outlay including commis- a long history of investing in vated interest rates in emerg- sions. “I’ve learned a lesson,” developing economies means Time to take a stand against overpriced watches with the ing markets. said this investor, who de- many investors will probably The appeal is obvious after clined to be named. “It was keep Uridashi, whose value Stauer Urban Blue, now only $29. years of rock-bottom rates. A stupid of me to invest in a sin- could recover if currencies re- ou need a new watch…the one you are we’re busy revolutionizing the watch industry recent offer from Rakuten Se- gle emerging-market bond.” bound. Historically, buyers wearing was made when Nixon was in to bring you more real value, you can take your curities touted a 23.1% yield Uridashi are typically is- have tended to hold these Y on lira debt issued by the Eu- sued by outfits with high bonds until maturity. “Japa- office, but extravagantly-priced watches that own stand against overpriced watches with ropean Investment Bank. That credit ratings like the World nese retail investors are very add zeros just because of a high falootin’ name the Urban Blue. echoes the 10-year yield on Bank and mature within five tolerant to fluctuations in for- are an insult to your logic. Why shell out big Your satisfaction is 100% guaranteed. Wear Turkish government bonds of years, so currency declines— eign currencies,” said Yuno- money so some foreign company can sponsor the Urban Blue for 30 days. If you’re not 20.9%, and is far above the rather than bond defaults—are suke Ikeda, an economist at another yacht race? It’s time to put an end to convinced that you achieved excellence for less, 0.1% available on benchmark the main risk. Based on ex- Nomura Securities in Tokyo. such madness. It’s absolutely possible to have send it back for a refund of the item price. The Japanese government debt. change rates at issuance, there Mr. Tokue said the damage the highest quality, precision classic timepiece Urban Blue is one of our fastest sellers. It takes Now, some of these individ- is about $155.3 billion out- to his overall portfolio wasn’t without the high and mighty price six months to engineer this watch so don’t uals are sitting on large paper standing, Thomson Reuters es- that serious and his remaining tag. Case in point: The Stauer Urban Blue. wait. Take a stand against overpriced watches losses. The lira has slid nearly timates, including $10.74 bil- position could regain some Packed with high-end watch in impeccable style. Limited to the first 1900 20% this month against the lion in Brazilian real and $7.64 value. “You never know—the performance and style, minus the high- responders to this ad only. Don’t miss dollar, and 21% against the billion in lira. lira may not be that cheap in yen. Other currencies such as Flora Chao, global head of the distant future,” he said. end price tag. It’s everything a high-end out...call today! watch should be: Sturdy stainless steel and genuine leather construction. Precision Stauer Urban Blue Watch $199† among economists about the tion, as tariffs lift prices of timing that’s accurate to four seconds a Bond Rally prospect for an economic imported goods. day––that’s more precise than a 27-jewel Offer Code Price $29 + S&P Save $170 slowdown. And, in a typical bit of fi- automatic watch priced at over $6,000. And, So far, there is no reason to nancial markets justice, the good looking–– with simple, clean lines 1-800-333-2045 Surprises doubt that the U.S. economy size of the short position and a striking metallic blue face. will continue growing some likely is itself contributing to Your Insider Offer Code: UBW372-02 “Blue watches are one of the growing style nine years into a tepid but the Treasury rally, as those You must use this insider offer code to trends seen in the watch world in the past Wall Street steady expansion. Instead, in- who had wagered prices would get our special price. vestors and portfolio manag- fall respond to bad news by few years”––WATCHTIME® ContinuedfrompageB1 † Special price only for customers using the offer code versus ers said, this month’s decline closing out bets—a decision Your great escape from the over-priced the price on Stauer.com without your offer code. firm isn’t betting that Trea- in 10-year yields stems from a that forces them to buy the se- watch craze. At Stauer, we go directly to the sury prices will fall. host of factors. curities they were betting source (cutting out the middleman), and The recent decline in yields They cite the Fed’s determi- against. engineer our own watch designs. This means also defies the Federal Re- nation to raise interest rates “It’s definitely been a fac- ® Rating of A+ we can offer a top quality timepiece that Stauer serve’s tightening campaign, even in the face of inflation tor,” said Wan-Chong Kung, a happens to only cost the same as two well- 14101 Southcross Drive W., Ste 155, Dept. UBW372-02 which is pushing up the rate that, while recently at the bond fund manager at Nuveen made cocktails at your favorite bar. So, while Burnsville, Minnesota 55337 www.stauer.com on shorter-term bonds. To- highest in six years, remains Asset Management. gether, the long-term Treasury low historically and relative to Some of the speculative Precision movement • Stainless steel caseback and crown • Cotswold™ mineral crystal rally and the Fed’s rate in- joblessness. Also at play: the short bets may reflect inves- • Date window • Water resistant to 3 ATM • Genuine leather band fits wrists 6 ¾"–8 ¾" creases have narrowed the risk that escalating trade spats tors hedging other positions spread between short- and between the U.S. and its major or may be parts of multifac- Smart Luxuries—Surprising Prices™ long-term debt to its lowest trading partners could curb eted trades involving other se- level in years, raising concern exports and reduce consump- curities, analysts cautioned. THE WALL STREET JOURNAL. **** Thursday, August 23, 2018 | B11 MARKETS World Stocks Are Outrun by the U.S. Bull

BY STEVEN RUSSOLILLO bottom over nine years ago. AND MIKE BIRD The next closest rival is Japan, with the Nikkei 225 index U.S. stocks are on the verge gaining over 200%, while Hong of the longest bull market in Kong’s Hang Seng has gained history. Investors elsewhere nearly 150%. have not had it nearly so good. In mainland China, the Most major stock markets Shanghai Composite is up only have fallen short of the S&P 27% since March 2009. The di- 500 since it bottomed on vergence has intensified in re- March 9, 2009, during the fi- cent months as trade escala- nancial crisis. tions continue. The Shanghai Indexes in Japan, China and index tumbled into a bear Europe have lagged behind the market earlier this summer. U.S. Markets in Portugal and Some of the worst-perform- Greece are lower from where ing equity markets can be they were 9½ years ago. And found in Europe, where sec- the rise in a broad gauge of tors and entire countries have emerging markets is less than struggled to recover from the half that managed by the S&P sovereign debt crisis in the eu- 500. rozone. The gulf is partly a testi- Though the continent’s mony to U.S. economic dyna- broad Stoxx 600 index has mism. For a start, the country risen by 64%, low interest and its banks rebounded faster rates, slow growth and sickly from the financial crisis than balance sheets have hurt the Europe, while Japan is still region’s banks, which are emerging from decades of down 8%.

stagnation. And although tech- DREW ANGERER/GETTY IMAGES Most emerging markets nology is reshaping the world, Tourists pose with the Wall Street bull statue in New York’s Financial District this week. U.S. stocks are on a long-running tear. have also struggled to keep no market has benefited more up. The MSCI Emerging Mar- from the rise of tech giants Tech stocks have outperformed globally, offering a boost to countries kets Index has risen by about such as Amazon.com Inc. and 400% 150% during the U.S. bull mar- Facebook Inc. ket, but has stumbled of late, where they make up a large portion of the market. Information The rally also cuts against falling near bear-market terri- 400% Technology the conventional notion that tory. S&P 500 investors should enjoy out- Some investors worry that 300 Tech: 25.6% sized returns for the risks they U.S. valuations have gotten too Stoxx Nikkei 225 300 assume by venturing into risk- 200 Europe 600 45.3% rich. The S&P 500 trades at ier countries in earlier stages 4.9% Hang Seng nearly 18 times projected 10.2% of development. 100 MSCI Emerging Markets earnings for the current finan- “The U.S. was the first to Shanghai Comp. ex. China cial year, well above its 10- SINCE MARCH 9, 2009 INDEX PERFORMANCE 3.8% 22.2% get hit in the financial crisis, 0 year average, according to and also the first to start re- 015304560% 200 Industrials Thomson Reuters. covering,” said Hannah Ander- CURRENT WEIGHTING OF TECH STOCKS In contrast, the Shanghai son, global market strategist Financials Composite trades at 10.2 times at J.P. Morgan Asset Manage- MSCI All Country World sector performance forward earnings, while the ment. “Other markets were Stoxx 600 in Europe fetches still going through a lot of 14.5 times. 100 pain when the U.S. bull market “The relative valuation of was already ongoing.” Materials emerging market equities ver- The divergence between the sus broader global equities re- U.S. and the rest of the world Utilities mains very attractive,” said has grown more stark this Michael Levy, a portfolio man- year. U.S. economic growth hit 0 ager at Barings. its fastest pace in nearly four March 9, 2010 2011 2012 2013 2014 2015 2016 2017 2018 Guillermo Felices, a senior years in the second quarter, 2009 fund manager at BNP Paribas and earnings are soaring. Sources: FactSet (index performance, MSCI sectors); the indexes (weighting of information technology stocks) THE WALL STREET JOURNAL. Asset Management, said the “This has been a period of gap between returns on U.S. rapid profit growth that has vestors say could continue. BNY Mellon. In August, fund A boom in technology has other global sector. Such com- stocks and overseas peers was pretty much outstripped any The S&P 500 is less correlated managers were more positive contributed to the rally in U.S. panies make up more than a likely to narrow. “The [eco- other period in U.S. economic to markets in Japan, Britain, about U.S. equities than any stocks. During this bull mar- quarter of the S&P 500, but nomic] cycle is more mature, history,” Ms. Anderson said. Germany and France than in other region for the first time ket, usually defined as an up- slightly less than 5% of the and interest rates are starting That has helped U.S. mar- all but two instances over the in five years, according to a ward run unbroken by a selloff Stoxx Europe 600. to rise. That makes the out- kets pull away from the rest of past 20 years, according to Si- monthly survey by Bank of of 20% or more, tech stocks In the U.S., the S&P 500 has performance of the U.S. mar- the world, something many in- mon Derrick, a strategist at America Merrill Lynch. have outperformed every gained 320% since the market ket more difficult,” he said.

confidence, uncertainty is the Treasurys Treasury market’s best friend.” S&P 500 Rally Hits a Milestone Treasury yields then bounced off their session lows BY MICHAEL WURSTHORN ings Group. “That uncertainty Fluctuate and hovered in a narrow range Speed Bump is what’s going to give the after the Federal Reserve re- The S&P 500 edged slightly Wednesday's minor loss dashed a four-session market a little bit of heart- leased minutes from its July lower Wednesday, even as the winning streak for the S&P 500. burn today and maybe the After Fed 31-Aug. 1 meeting. index extended its bull run next couple of days.” Analysts and investors had from the depths of the finan- 2880 The S&P 500 fell 1.14 been looking for clues on how cial crisis to become the lon- points, or less than 0.1%, to Minutes the Fed intends to steer policy gest ever. 2870 2861.82, dashing a four-ses- BY AKANE OTANI in the second half of the year. Uncertainty around the po- sion winning streak. The Dow Wednesday’s minutes largely litical fortunes of President 2860 Jones Industrial Average fell U.S. government bond reaffirmed what many had ex- Trump weighed on investor 88.69 points, or 0.3%, to prices edged higher Wednes- pected: that the central bank senti- 2850 25733.60 to also snap a four- day as stocks drifted lower af- is acknowledging potential WEDNESDAY’S ment, con- day run of gains, while the MARKETS ter the S&P 500 closed just risks posed by trade disputes tributing 2840 Nasdaq Composite rose for a shy of an all-time high. and the housing market, but it to a mo- fifth consecutive session, The yield on the benchmark is still likely to raise short- mentary adding 29.92 points, or 0.4%, 2830 10-year U.S. Treasury note set- term interest rates next lull in trading activity in what to 7889.10. tled at 2.823%, compared with month. is typically a slow period for The S&P 500’s bull-run 2.846% Tuesday. The move would be the the stock market, several 2820 milestone isn’t concrete just CREDIT Yields fall as Fed’s third interest-rate in- money managers and analysts yet. Some analysts contend a MARKETS bond prices crease of the year. said. 2810 new closing high is needed to rise. A strong U.S. economy has It was the lowest full day Aug. 16 17 20 21 22 ensure the index’s run is in Bond yields driven many investors to bet of trading volume for the Source: SIX THE WALL STREET JOURNAL. fact the longest ever. fell overnight after President that the central bank will raise year, with just 5.2 billion The S&P is 0.4% away from Trump’s former lawyer, Mi- rates a total of four times in shares changing hands, well they tried to gauge the im- the stock market’s outlook, its previous closing high set chael Cohen, said Mr. Trump 2018. Federal-funds futures, below the year’s average pact of news related to two money managers and analysts on Jan. 26, and if the index directed him to pay off women which traders use to place trading volume of 6.8 billion. former associates of Presi- said they raise the likelihood suffered a 20% drawdown be- who said they had affairs with bets on the course of interest That caused the S&P 500 to dent Trump. Michael Cohen, of further turbulence ahead fore notching a new record him. Separately, former Trump rates, recently pointed to a bounce around the flatline the president’s former per- for Mr. Trump heading into close, several analysts would campaign chairman Paul 63% probability of the Fed before closing down less than sonal lawyer, pleaded guilty the midterm elections, and consider Jan. 26, the last S&P Manafort was convicted Tues- raising interest rates four 0.1% Wednesday. Tuesday to eight criminal could cause volatility to come 500 closing record, as the fi- day of eight charges related to times by year-end, according Even with the tepid trading charges, including campaign- roaring back into the market. nal day of the rally. tax and bank fraud. to CME Group. activity, the S&P extended its finance violations. Mean- “If it starts looking more Elsewhere, the Stoxx Eu- “Investors found the safe- The minutes show “the Fed bull run from March 9, 2009, while, former Trump cam- like the president is in jeop- rope 600 fell less than 0.1%. In haven trade more preferable believes we’re not as late in to 3,453 days to become the paign manager Paul Manafort ardy, that is a clear negative Asia early Thursday, the than the risk-on trade…at least the business cycle as some longest rally in U.S. history, was convicted of eight for the market, but ex that, Shanghai Composite Index was for now,” said Kevin Giddis, may think,” said Mike Loewen- surpassing the previous record charges related to tax and the market will continue to up 0.3%, while Japan’s Nikkei head of fixed-income capital gart, vice president of invest- set between 1990 and 2000. bank fraud. follow earnings,” said Matt Stock Average was up 0.2% but markets at Raymond James, in ment strategy at E*Trade, in Still, investors didn’t cheer While those developments Lockridge, senior portfolio Hong Kong’s Hang Seng Index an email. “In the absence of an email. the milestone too much as shouldn’t substantially alter manager at Westwood Hold- wasdown0.3%.

stocks priced in that cur- Quibbles rency—just look at the Cara- Oil Prices Rise on Decline in U.S. Inventories cas stock exchange’s 17,266% BY STEPHANIE YANG by 5.8 million barrels, exceed- reacting to moves in the dollar specifically targeting the Is- gain this year, before Vene- ing average analyst forecasts on an hour-by-hour basis the lamic Republic’s oil industry Over Streak zuela’s bolivar was abolished Oil prices rose to a two- for a 2-million-barrel drop. past few weeks, so we can go are set to be implemented by to try to deal with hyperin- week high on Wednesday after The American Petroleum In- back to becoming amateur November. flation. But the dollar has government data showed that stitute, an industry group, es- currency traders as we did for The move helped push In Market strengthened from its 2009 crude stockpiles fell by more timated Tuesday that stock- much of the early part of this Brent temporarily above the lows against most currencies than analysts expected last piles fell by 5.2 million barrels. decade,” fuel marketer TAC $80-a-barrel threshold this ContinuedfrompageB1 and barely had any inflation. week. Prices have risen for five Energy said Wednesday. past spring. But prices have bounded with the rest of the After the financial crisis a Light, straight sessions, as the mar- Looming U.S. sanctions on come down since then in the world, but since then they focus on the recent trouble COMMODITIES sweet ket has rebounded from bear- Iran’s oil industry have wake of plans by the Organiza- have soared. Measured in helped keep investors cau- crude for ish inventory data a week ear- boosted market sentiment as tion of the Petroleum Export- dollars, British, eurozone, tious, but that restraint is October de- lier. well. ing Countries and partner pro- Japanese and emerging-mar- long gone. Investors again livery gained 3.1% to $67.86 a Analysts said prices have President Donald Trump ducers like Russia to begin ket equities have all roughly are relying on hope when barrel on the New York Mer- also been supported by a pulled the U.S. out of a 2015 ramping up crude output after doubled from the 2009 lows they part with their money, cantile Exchange, the highest weaker U.S. dollar. Commodi- international agreement to more than a year of holding (emerging stocks bottomed and signs of excess are easy close since Aug. 7. Brent, the ties like crude oil are priced in curb Iran’s nuclear program in back production. out a few months earlier), to find. But for all the excess, global benchmark, advanced dollars and become cheaper May, setting the stage for the Gasoline futures rose 2.5% while U.S. stocks have qua- it is still hard to identify a 3% to $74.78. for foreign buyers when the reimposition of economic to $2.0680 a gallon and diesel drupled. true bubble. On Wednesday, the U.S. En- U.S. currency falls. sanctions on the Islamic Re- futures gained 2.1% to $2.1683 This isn’t about a weaker Booms don’t have to end ergy Information Adminis- “After taking a break from public. a gallon. dollar, at least against other in unsustainable exuberance tration reported that the each other for most of the Some sanctions took effect —Christopher Alessi major currencies. A weak and froth, but history sug- amount of crude in storage fell year, energy prices have been this month, while measures contributed to this article. currency can certainly help gests they often do. B12 | Thursday, August 23, 2018 **** THE WALL STREET JOURNAL. MARKETS FedRate Ticks Up Ahead of Jackson Hole

BY SAM GOLDFARB The Fed’s key interest rate has moved closer Fed’s targeted range 2.0% Low fed-funds trading something you need to get out volumes suggest lenders and be talking about a little An uptick in the Federal Re- to the top of its targeted range. 1.92% prefer the repo market. bit more,” he said. serve’s benchmark interest this week $100 billion Last week, volumes of fedrate is putting more pressure fund contracts fell to the low- on the central bank to clarify est level since December 2016, 90 plans for its $4 trillion bond a possible sign that the rate portfolio just as Fed officials nudged higher more because 80 prepare to convene at their 1.5 of the absence of lenders than annual Jackson Hole sympo- a surge of borrowers needing sium, which kicks off Thurs- 70 to replenish reserves. Range day. Estimates of when banks The effective federal-funds Effective fed-funds rate 60 might need to borrow more in rate, the rate on overnight the fed-funds market vary in loans between banks that is 50 part because of the complexi- the Fed’s primary means of in- ties of rules governing how MayAprilJune July Aug. fluencing the U.S. economy, 1.0 much in high-quality, liquid inched back up to 1.92% last assets they must hold and the week—and remained there this The Fed’s shrinking bond different ways they can meet week—after spending nearly portfolio could also eventually those requirements. two months at 1.91%. push up the fed-funds rate. Before last week, the fed- That put the rate just 0.08 $5 trillion funds rate had already spent percentage point from the top several days at 1.92% shortly of the Fed’s targeted range of 4 after the Fed had raised its 1.75% to 2%. If the rate knocks 0.5 target range by 0.25 percent- up against the top of the Mortgage bonds age point at its June policy 3 range, investors and traders meeting. The gap between the maytakeitasasignthatthe rate and the top end of the central bank is losing control 2 Fed’s target range had shrunk of the rate. to as little as 0.05 percentage A major reason why ana- 1 Treasurys points in the spring, before lysts say the fed-funds rate the June increase. has been rising within the 0 0 For now, analysts say there Fed’s target range is that the 2015’16 ’17 ’18 2017 ’18 is little cause for alarm be- Treasury Department has been cause 0.08 percentage point is ramping up its issuance of Issuance of short-term Treasury debt has been increasing. The surge in Treasury bills has still a reasonable cushion. debt, particularly short-term The central bank at its June $800 billion led to spikes in repo rates. bonds, to fund a growing fed- meeting sought to address the 2.10% eral budget deficit. 700 problem by setting the so- The deluge of short-term called IOER rate—which it 600 bonds has increased the 2.05 uses to try to cap the fed- amount of collateral that can 500 funds rate—0.05 percentage be used in the repurchase- points below the top of its tar- 400 agreement, or repo, market, 2.00 get, a technical adjustment which is the primary alterna- 300 meant to ease concerns if the tive to the fed-funds market fed-funds rate bumps against 200 for overnight lending. 1.95 the IOER rate. As the volume of collateral 100 Minutes of the Fed’s increases, borrowing in the July-31-Aug. 1 meeting re- 0 1.90 repo market also tends to in- leased Wednesday noted that crease. That allows repo lend- 2015 ’16 ’17 ’18 July Aug. the fed-funds rate had “traded ers, such as Federal Home Sources: Federal Reserve (rate, trading volume, holdings); Securities Industry and Financial Markets Association (issuance); DTCC Solutions LLC (repo rate) THE WALL STREET JOURNAL. well within its target range” in Loan Banks, to charge higher the period after the June interest rates, which in turn which ballooned after the fi- could also cause the rate to of debate among analysts. But pen, according to some in the meeting. encourages them to also in- nancial crisis. rise by draining the reserves there is agreement that it market. Fed Chairman Jerome Pow- crease rates in the fed-funds Shrinking the portfolio by of banks and creating more would be helpful for Fed offi- “Jackson Hole is a great fo- ell said at the latest meeting market. not replacing maturing bonds demand for overnight loans. cials to give further insight rum for those types of ideas,” that officials would “likely re- One concern is that the fed- with new debt forces the Trea- Just how small the Fed’s into their thinking on the said Blake Gwinn, U.S. rates sume a discussion” in the fall funds rate could also move sury to sell even more bonds bond portfolio needs to get to topic. This week’s symposium strategist at NatWest Markets. about how they implement higher as the Fed continues to to the private market as buy- have a significant impact on in Wyoming seems like the Especially given the recent their rate-setting decisions, wind down its bond portfolio, ing from the Fed diminishes. It the fed-funds rate is a matter ideal setting for that to hap- market moves, “it seems like according to the minutes. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Nomad Wins as Frozen Food Is Hot OVERHEARD At Target, Good News When most investors and marketing and now sells Exact Sciences doesn’t do think of frozen foods, they Reheating trendy, updated products like glamorous work, but on Isn’t Over think of the has-been brands Nomad Foods' quarterly organic sales, change from a year earlier fish with gluten-free or whole- Wednesday its shareholders they ate growing up. In the grain coatings, new pea-based got beautiful results. U.K., that might bring to 7.5% proteins and such. Organic net The health-care company Target added to retailers’ mind something like Aunt sales growth has been positive announced a collaboration winning streak, posting sec- Bessie’s Toad in the Hole. But 5.0 for six straight quarters. deal with Pfizer to market its ond-quarter results that beat the new owner of that brand, Investors have noticed: No- signature product, Cologuard, expectations, including a 41% Nomad Foods, is far more 2.5 mad shares are up 33% over a stool DNA screening test for surge in digital sales. Target’s dynamic than mere nostalgia the past year and jumped colorectal cancer. Certain pa- success is partly due to a would suggest. 0 5.4% in a single day earlier tients can send their samples strong consumer economy: Nomad is a buy because it this month on strong earn- to the company for analysis. Rising wages and low unem- is perfectly positioned to –2.5 ings and higher guidance. While the process sounds ployment are helping retailers benefit from the resurgence Nonetheless, Nomad re- somewhat daunting and across the board. But it is also of the frozen-food aisle, –5.0 mains cheap. It is trading at messy, the advantage is be- a sign that the company’s $7 which is one of the few just 14.6 times forward earning able to avoid what is billion investment to revamp bright spots in the otherwise –7.5 ings, according to FactSet, surely one of the least-pleas- its business is paying off. struggling packaged-food in- 2016 ’17 ’18 compared with an average of ant routine medical proce- Target on Wednesday re- dustry. Consumers seeking Source: the company THE WALL STREET JOURNAL. 17.2 times for a dozen other dures—a colonoscopy. Pfizer ported earnings of $1.47 a both health and convenience U.S. and European food com- will share profits and ex- share, above estimates of are buying items such as fro- 25, frozen-food sales rose frozen brands, including two panies. Its valuation is more penses with Exact in ex- $1.40 a share, and revenue of zen vegetables and meat sub- 2.9% across Europe, accord- recently acquired U.K. compa- in line with growth-chal- change for the use of its $17.78 billion, over estimates stitutes, which are boosting ing to data provider Nielsen, nies—frozen-pizza maker lenged giants such as General large sales force. of $17.28 billion. That is a growth at Nomad. accelerating from 1% growth Goodfella’s and Aunt Bessie’s. Mills and J.M. Smucker,at15 The news brought Exact year-over-year increase of This trend is being recog- the prior annual period. Last year, Nomad had a 14% and 13.2 times, respectively, shareholders some major re- 7%. Sales increased 6.5%, over nized by investors in the U.S., Nomad was formed in share of the savory frozen- than rapidly growing frozen lief as the stock rocketed 31% estimates of 4%; that is the who late last year started bid- 2014 and quickly began to food market in Western Eu- players Conagra and Pinnacle, higher Wednesday. Other in- strongest same-store sales ding up shares of frozen-food consolidate the European rope, nearly triple that of their whose merger hasn’t yet vestors, however, were expe- growth the company has seen specialists Conagra Brands frozen-food sector. In 2015 it closest competitor, according closed, at 16.5 and 21.7 times. riencing some serious discom- in 13 years. Much of it was and Pinnacle Foods. Conagra acquired the Iglo and Findus to Wells Fargo Securities an- That means Nomad shares fort as the stock soared. thanks to the surge in digital agreed in June to acquire Pin- brands, which sell frozen fish alyst John Baumgartner. have room to rise as investors More than 9% of the shares sales, which were helped by nacle for $8.2 billion. sticks, vegetables and so on The company initially strug- come around to its growth available were sold short at Target’s one-day sale in July, The same sales trend is across the Continent. gled to stabilize sales of aging story. It isn’t too late to jump last count, according to Fact- held in partnership with Am- occurring in Europe. Over The company has since frozen brands. Since then, No- onto the frozen-food trend. Set data. azon Prime Day. the 52 weeks through March built up a broad portfolio of mad has updated packaging —Aaron Back Target is drawing consumers into its stores, too. “Traf- fic continues to exceed market expectations, and the Groupe Casino Risks Making a Simple Business Complex bear thesis has succumbed to the fundamental reality that Retail is among the oldest to franchisees, shifting losses swers is that they address consolidated but not fully Target is a relevant brand in and simplest trades in the Short Interest off the balance sheet. There is some of the detail but not the owned. the digital age,” said Abhay world. Any company in the in- Groupe Casino’s share price nothing hidden about the substance of the underlying The earlier short seller also Deshpande, chief investment dustry with convoluted finan- transactions, which are de- concern, which is the discon- questioned the company’s officer at Centerstone Inves- cial statements is asking for €100 tailed in notes to the accounts, nect between Casino’s key treatment of profits from realtors, which owns Target trouble. 80 Bernstein report but the brokerage said their profit numbers and the money estate development as recur- shares. The shares climbed French supermarket chain 60 impact was greater than it pre- due to shareholders. ring earnings. Casino eventu- 3.2% on Wednesday. Groupe Casino got into trou- viously realized. Casino’s web of majority ally revealed that property The company raised its 40 ble with investors three years To its credit, Casino has re- and minority stakes in emerg- sales accounted for roughly outlook for the year. It now ago over its tangled ownership 20 sponded openly. Over the past ing-market retailers was criti- half of French operating profit expects earnings between of stores in emerging markets, 0 three years it has sold majority cized by a short seller in 2015. in 2015. This shone a much $5.30 and $5.50 a share. Go- among other problems. Now it 2013 ’14 ’15 ’16 ’17 ’18 stakes in loss-making stores to But investors previously brighter light on the deteriora- ing into the holiday season, it is under scrutiny again for the Note: €1 = $1.16 franchisees, sweetening the thought the fully owned tion of the underlying grocery is looking to take advantage same issue, this time in France. Source: SIX deals by packaging them with French business was free from business. of the void in the toys-and- Casino shares are down 9% THE WALL STREET JOURNAL. minority stakes in profitable this problem. Now it turns out One lesson is that bad babies market left by the clo- this month following a fresh stores, a spokesman said. The that Casino’s key French profit things happen when a com- sure of Toys “R” Us. Analysts set of revelations suggesting likely to win investors’ trust company detailed the extent numbers understate share- pany’s accounts are much expect it to capture a large its headline profit numbers longer term. and profit impact of majority- holders’ exposure to loss-mak- more complex than its operat- market share for items such don’t tell the whole story. The Analysts at Bernstein set off stake sales, though it gave no ing stores, which are part- ing business. Complexity is a as diapers and games. company’s answer—to report the latest doubts with a report information regarding minor- owned but not consolidated, problem no amount of extra The company’s brightest more numbers—is a necessary on the way Casino has sold ity-stake sales. and overstate their exposure disclosures can resolve. days may still be ahead. short-term fix but seems un- stakes in some French stores The problem with such an- to profitable stores, which are —Stephen Wilmot —Elizabeth Winkler