****** TUESDAY, SEPTEMBER 18, 2018 ~ VOL. CCLXXII NO. 66 WSJ.com HHHH $4.00

DJIA 26062.12 g 92.55 0.4% NASDAQ 7895.79 g 1.4% STOXX 600 378.31 À 0.1% 10-YR. TREAS. g 3/32 , yield 3.001% OIL $68.91 g $0.08 GOLD $1,199.70 À $4.70 EURO $1.1685 YEN 111.84 What’s Asia Takes Stock in Wake of Monster Typhoon Kavanaugh News And Accuser Business&Finance

rump said he would im- Tpose new tariffs on about Will Testify $200 billion in Chinese goods and threatened to Senate panel sets a The hearing will give citi- apply them to hundreds of zens and lawmakers a chance to billions of dollars more. A1 hearing next week on hear more about the three-de- cades-old accusations against U.S. retailers are already allegation of assault Judge Kavanaugh from his scrambling to find enough by high-court nominee teenage years at a prep school workers to staff their stores in the Washington, D.C., area. for the holiday season. B1 WASHINGTON—The Senate Judge Kavanaugh has repeat- Tyson Foods said CEO Judiciary Committee said Mon- edly denied the accusation, and Hayes will leave that role day it would hold a hearing the White House has said it at the end of this month next week with Judge Brett Ka- would proceed with his nomi- for personal reasons. B1 vanaugh and the woman who nation. The planned session will A pioneer in the lucrative Byron Tau “give these recent allegations a business of overseas day By , Natalie Andrews full airing,” said Sen. Chuck trading was banned from the and Kristina Peterson Grassley (R., Iowa), the Judi- U.S. brokerage industry. B1 ciary Committee’s chairman. E-commerce tycoon Jack has accused him of sexual as- Several Republican senators Ma used a China-sponsored sault, setting the stage for a whose votes will be key to con- forum to suggest regulators dramatic public showdown that firming Judge Kavanaugh have take a lighter touch with could determine the fate of his said the allegations are serious technology companies. B3 nomination to the Supreme and merit a full public account- Court. PleaseturntopageA4 Google’s Android system will be used by the Re- nault-Nissan-Mitsubishi Alliance to power media displays in millions of cars. B4 Trump to Declassify Natura Cosmeticos of Brazil recently approached Avon Products about a Russia Probe Papers takeover, but the companies aren’t in serious talks. B3 WASHINGTON—President allies in Congress have sought Trump ordered the declassifi- to undermine its legitimacy by U.S. stocks fell, sending cation of sensitive documents painting it as politically moti- the Nasdaq to its biggest one- related to the investigation into vated and tainted by bureau- day loss since July. The Dow Russian election interference, a cratic abuse—an accusation shed 92.55 to 26062.12. B11 move that could eventually al- that senior Justice Department

DowDuPont CEO Breen MIGUEL CANDELA/SOPA IMAGES/ZUMA PRESS low the public unprecedented officials have repeatedly denied. will assume the top job at the DESTRUCTIVE PATH: Workers clean up offices in Hong Kong’s Kowloon district damaged by access to a probe that he has The White House said the specialty-products company Supertyphoon Mangkhut. The storm ravaged the Philippines over the weekend, killing at least 65. A10 repeatedly railed against. president made the decision in that will be created as part of response to requests from the conglomerate’s split. B2 By Byron Tau, members of Congress and to Rebecca Ballhaus further public transparency. Le- A senior Deutsche Bank Dustin Volz gal experts and former govern- executive has been interviewed and ment officials said the move by Singapore authorities as The declassification order represented an extraordinary part of their 1MDB probe. B10 New U.S. Tariffs Hit China; pertains to FBI transcripts, level of presidential involve- SpaceX said Japanese bil- text messages and other law- ment in an investigation that lionaire Yusaku Maezawa will enforcement and intelligence has notched guilty pleas from be its first paying passenger. B2 Beijing Vows to Strike Back material related to an active five of Mr. Trump’s associates. investigation into some of the Mr. Trump on Monday or- World-Wide BY JACOB M. SCHLESINGER would punch back even harder, president’s closest advisers. dered that more than 20 pages AND VIVIAN SALAMA stating that “if China takes re- Mr. Trump has repeatedly of a federal warrant used to Trade Twist taliatory action against our denounced the investigation as obtain a secret wiretap on one A Senate panel will WASHINGTON—President Chinese companies are farmers or other industries, a “witch hunt” and he and his PleaseturntopageA2 hold a hearing next week Trump said he would impose moving toward making we will immediately pur- with Supreme Court nomi- new tariffs on about $200 bil- higher-quality products to sue….tariffs on approximately nee Kavanaugh and the lion in Chinese goods and compete against U.S. goods, $267 billion of additional im- woman who has accused threatened to apply them to an unintended consequence ports.” INSIDE him of sexual assault. A1 hundreds of billions of dollars of the tariff battle...... A12 The announcement means Trump ordered the de- more to pressure Beijing to that starting next week, Mr. classification of sensitive change its commercial prac- Trump will have imposed tar- China has said it would also documents related to the tices, escalating trade tensions iffs on nearly half of the Chi- seek to ratchet up the pain on probe into interference by between the world’s two larg- nese goods imported to the est economies. U.S. exporters by retaliating U.S., which last year were val- Russia in U.S. elections. A1 The 10% tax on Chinese im- with tariffs of its own on U.S. ued at $505 billion. If he fol- Flooding remained ama- ports will take effect on Sept. goods entering its market, just lows through on his next jor concern as North Carolina 24 and will rise to 25% at the as it did after following the threat, all Chinese imports continued to grapple with end of the year, according to administration imposed tariffs would be hit. Florence’s effects. A1, A6 administration officials. The on $50 billion in Chinese prod- Monday’s announcement A probe targeting FEMA’s tariffs will affect thousands of ucts earlier this summer. leaves uncertain the status of chief has been referred to goods from luggage to sea- “If the U.S. imposes any ad- trade talks Treasury Secretary federal prosecutors to de- food, extending the impact of ditional tariffs on China, we Steven Mnuchin has been try- JORDAN STRAUSS/INVISION/ASSOCIATED PRESS termine whether criminal Mr. Trump’s aggressive tariff will have to take necessary ing to organize over the next DREW ANGERER/GETTY IMAGES policy for the first time to a countermeasures and reso- two weeks with high-level Chi- charges should be pursued. A6 broad population of U.S. con- lutely safeguard our legitimate nese officials in an effort to HBO, NETFLIX TYSON’S CEO The administration will sumers. and legal rights and interests,” lower the heat between the slash the U.S. cap for refu- Chinese trade practices Chinese Foreign Ministry countries. Mr. Trump set the TIE FOR MOST TO DEPART IN gee admissions to 30,000 “plainly constitute a grave spokesman Geng Shuang said duties to kick in three days be- EMMY AWARDS SURPRISE MOVE in fiscal 2019. A2 threat to the long-term health earlier Monday, in anticipation fore Chinese Vice Premier Liu and prosperity of the United of the announcement. He was aiming to come to Russia and Turkey have LIFE & ARTS, A13 BUSINESS & FINANCE, B1 reached a tentative deal to States economy,” Mr. Trump Anticipating such a re- Washington—a clear statement create a buffer zone in said Monday in a statement. sponse, Mr. Trump said he PleaseturntopageA12 Syria’s Idlib province. A8 The U.S. accused Russia Don’t Let Them Eat Cake— of trying to weaken action Retailers Hustle against North Korea by Bosses Sour on Office Sweets No Way In, No Way Out blocking a U.N. report on ef- For Holiday Hires forts to evade sanctions. A8 iii The race is already on to find workers to staff stores. B1 Of City Hit by Florence Rescue workers dug BY VALERIE BAUERLEIN Harvey in Texas and Matthew through mud and debris in For some employers, sugary treats U.S. retail jobs sector here in southeastern North the Philippines, seeking Carolina, when interstates were survivors from Super- are the new secondhand smoke WILMINGTON, N.C.—Four 800 thousand days after Hurricane Florence blocked, there were still ways typhoon Mangkhut. A10 cleaved this coastal city from in and out of the city. Not this Japan sent a submarine BY ROLFE WINKLER around the office or a set of the rest of North Carolina, the time. to join three destroyers in an push ups. night’s streets are dark and Authorities are urging those exercise in anti-sub warfare Most mornings, Jamie Glass “Oh my God, I can’t get rid quiet, with no streetlights or who evacuated before the in the South China Sea. A10 starts work fueled by a Star- of these people!” said Ms. Hires traffic signals. storm hit on Friday not to re- 600 China is raising pressure bucks venti mocha, turbo- Glass. She left a boss in New The airport is closed, and no turn. Everyone who stayed is on local governments that charged with two pumps of York City who also wanted to planes fly overhead. The sound stuck, many with dwindling run up debt, reprimanding toffee-nut syrup. Her lunch is cap the office sweet tooth. of a military helicopter some- food and supplies, after prepar- officials in one province that sometimes four Most employ- times punctures the stillness. ing for a far shorter disruption has seen its troubles spill chocolate chip ees like the free There is little birdsong. to their lives. cookies. doughnuts, cake Life for Wilmington’s Mobile service is spotty, and into public protests. A10 400 The 55-year- and other con- 118,000 people is in a holding news of the world outside Wil- old marketing fections that get Openings pattern. The city has virtually mington is hard to come by. CONTENTS Opinion...... A17-19 consultant loves parked “in the no power, no gasoline and no When Ms. Smith found a spot Business News...... B3 Sports...... A16 Capital Journal...... A4 Streetwise...... B1 sugar. Her boss usual place” at way in or out. with a signal, she called her Crossword...... A14 Technology...... B4 hates it. work. But ex- “It’s been waiting for the sister in New Jersey and had Heard on Street. B12 U.S. News...... A2-6 Cody Broder- ploding rates of 200 storm to get here, then waiting her hold the phone next to the Life & Arts...... A13-15 Weather...... A14 ick, 38, would obesity and dia- for the storm to pass,” said television. Markets...... B11-12 World News...... A8-11 like Ms. Glass No-sweet zone betes make sugar Deborah Smith, a 65-year-old “I’m a news junkie and I and the rest of more like ciga- day-care center owner. “Now said, ‘Just give me a little hit,’ ” > the office to snack on the or- rettes to some employers. it’s waiting for the lights to she said. ganic fruits and vegetables he Tempting treats are the new 0 come on so you can get cleaned The Federal Emergency sets out. Rather than an after- secondhand smoke. up. The hardest part is the Management Agency is moving 2008 ’10 ’15 ’18 noon coffee break, the head of The rules at Health IQ in waiting.” PleaseturntopageA6 inWhatLanguage LLC, a trans- Mountain View, Calif., sounded It is rare for a U.S. city to be s 2018 Dow Jones & Company, Inc. Notes: Seasonally adjusted; All Rights Reserved lation service in Salt Lake City, pretty sour when they went July is preliminary so cut off from the rest of the Flooding and potential dam recommends a short sprint PleaseturntopageA10 Source: Bureau of Labor Statistics country. During big storms like breaches are big concerns... A6 A2 | Tuesday, September 18, 2018 ** THE WALL STREET JOURNAL. U.S. NEWS U.S. to Slash Refugee Admissions U.S. WATCH FEDERAL RESERVE Cap of 30,000 in fiscal tional security concerns as the by Mr. Trump. primary motive. The previous Mr. Pompeo said the new Clarida Is Sworn In 2019 is lowest level low was 67,000. cap served the interests of the As Vice Chairman since the current Mr. Pompeo said the new American people and reflected ceiling reflected the need to the need to focus on refugees Columbia University econo- program began in ’80 focus on the “daunting” opera- and asylum seekers already in mist Richard Clarida was sworn tion to process a “massive the country. in as the Federal Reserve’s vice BY JESSICA DONATI backlog” of cases. The new cap The Trump administration chairman on Monday, the central should not be taken as the introduced tighter vetting bank said in a statement. WASHINGTON—The Trump “sole barometer” of U.S. assis- procedures last year, saying Mr. Clarida will serve as the administration will slash the tance to refugees, he added. that more screening was nec- No. 2 to Fed Chairman Jerome U.S. cap for refugee admis- Humanitarian agencies crit- essary to safeguard the U.S. Powell, who administered the sions to 30,000 in fiscal 2019 icized the decision to set the against the risk of allowing oath of office. Mr. Clarida was to focus on a backlog of cases cap in 2019 at a new low. “To- potential terrorists into the nominated to a four-year term and efforts that aim to reduce day’s announcement demon- country. This has contributed as vice chairman in April by

the number of applicants, Sec- strates another undeniable po- JACQUELYNto MARTIN/ASSOCIATED PRESS the backlog as applications President Trump, and the Senate retary of State Mike Pompeo litical attack against people Secretary of State Pompeo will focus on clearing case backlog. take longer to process. confirmed his nomination in Au- said Monday. who have been forced to flee Mr. Pompeo said the U.S. gust on a 69-26 vote. The new ceiling sets a re- their homes,” Amnesty Inter- homes and to promote burden- U.S. refugee admissions anticipated processing around Mr. Clarida was a managing cord low for the cap since the national said in a statement. sharing with other countries. stood at almost 85,000 in fiscal 310,000 refugee and asylum director and global strategic ad- refugee program began in “There is absolutely no excuse He also said the U.S. would fo- 2016, former President requests in fiscal 2019. This viser at Pacific Investment Man- 1980. It also represents a re- for not accepting more refu- cus on ending conflicts that Obama’s final year in office. figure will add to a backlog of agement Co. and an economics duction of almost one-third af- gees in the coming year.” were driving a large flow of The State Department has over 800,000 cases, he added. professor at Columbia. ter the cap was reduced to In the early 1990s, refugee refugees. traditionally advocated in fa- The refugee and asylum —Nick Timiraos 45,000 in 2018. admissions topped 110,000 ev- The U.S. has admitted fewer vor of higher refugee admis- programs are similar in that The president has sole au- ery year, but more recently, than 20,000 in the fiscal year sion rates, but the decision to both require applicants to SENATE. thority to set annual refugee the cap hovered between 2018 through August, accord- lower the ceiling was ex- show a well-founded fear of admission caps. President 70,000 and 80,000. ing to data released by the pected. Mr. Pompeo’s views persecution based on race, re- Bill to Curb Opioid Trump has made reducing ref- Mr. Pompeo said that the State Department. This com- have typically aligned closely ligion, nationality, political be- Epidemic Is Passed ugee admissions a key focus U.S. would focus on helping pares with less than 54,000 in with the hard-line approach lief or membership in a social since taking office, citing na- people to return safely to their the 2017 fiscal year. toward immigration favored group. The Senate on Monday passed sweeping, bipartisan leg- islation aimed at combating the opioid epidemic through new re- Murder Trial search, treatment and help for Begins for families affected by addiction. To become law, the package Chicago Officer would need to be reconciled with legislation that passed the A trial opened Monday for a House of Representatives in white Chicago police officer who June. Senate aides are optimistic fatally shot a black 17-year-old the measures can be reconciled in 2014. and passed by the end of the Jurors were shown a video of year. Jason Van Dyke shooting The Senate legislation would Laquan McDonald 16 times as give money to the National Insti- the teen, holding a small knife, tutes of Health to research a walked away from officers. nonaddictive painkiller. It would “Not a single shot was neces- also try to stop synthetic drugs sary or justified,” special prose- from being shipped across the cutor Joseph McMahon said in border by requiring foreign ship- his opening statement. Mr. Van pers to provide electronic data Dyke has pleaded not guilty to to help U.S. officials target illegal first-degree murder, aggravated packages. battery and official misconduct. U.S. overdose deaths from all Defense attorney Daniel Her- drugs soared to more than bert said Mr. Van Dyke was “a 72,000 in 2017, a record, accord- scared police officer who was ing to preliminary data released fearful for his life and the life of in August by the Centers for others and acted as he was Disease Control and Prevention. trained to do.” That compares with about A demonstrator, right, outside 66,000 deaths in 2016. the Leighton Criminal Court- —Natalie Andrews house on Monday, held a flag with the names of people fatally CALIFORNIA wounded by police officers.

—Associated Press JOSHUA LOTT/AGENCE FRANCE-PRESSE/GETTY IMAGES Two Officers Shot, Suspect in Custody Two Sacramento County Special counsel Robert Muel- tional security division and cow’s U.S. ambassador a month lieved that the person who hired sheriff’s deputies and a by- Trump ler, who was appointed last year founder of the Culper Partners before Mr. Trump’s inaugura- Mr. Steele was “likely looking stander were shot during an in- to lead the probe into Russian consulting firm, said Mr. tion, and prosecutors said he for information that could be cident just outside the capital election interference after Mr. Trump’s action was “especially was cooperating in the investi- used to discredit Candidate #1’s city on Monday afternoon. Eyes Probe Trump fired Mr. Comey, is also unprecedented” because he was gation. If prosecutors are ready campaign.” The firm that paid Department spokesman Sgt. investigating whether Trump overruling subordinates who to sentence Mr. Flynn, that sig- Mr. Steele, Fusion GPS, special- Shaun Hampton said the sus- associates colluded with Mos- had provided a redacted version nals they don’t need his testi- izes in opposition research. It pect is in custody. Documents cow during the campaign and of the surveillance application mony in any trial or prosecution was paid for by the Democratic Mr. Hampton said the shoot- whether the president sought to to Congress and because the or- of any other defendant. Party and Hillary Clinton’s pres- ingoccurredataPepBoysauto- obstruct justice in firing Mr. der pertained to a continuing in- The secret surveillance of Mr. idential campaign through an parts store on a busy street in ContinuedfromPageOne Comey while the FBI’s Russia vestigation of which Mr. Trump Page, which started in October intermediary. Rancho Cordova. He didn’t pro- of his former advisers, Carter probe was under way. is a subject. 2016 and continued through at In February, Mr. Trump vide details on the deputies’ or Page, be declassified, as well Mr. Trump has denied collu- least June of the next year, is at signed off, over the objections the bystander’s condition. as all Federal Bureau of Inves- sion and obstruction of justice, the heart of a partisan battle of top FBI officials, on the re- —Associated Press tigation interviews that went while Moscow has denied elec- There may be some over whether the FBI went too lease of a memo written by into obtaining the warrant. tion interference. far in investigating potential House Republicans that alleged Mr. Trump also ordered As president, Mr. Trump has delay before the ties between Mr. Trump’s cam- abuses in how law-enforcement CORRECTIONS that text messages from senior the power to declassify material material is released, paign and Russia. officials sought surveillance of Justice Department and FBI that he believes is in the public The surveillance was autho- Mr. Page. Democrats then re- AMPLIFICATIONS officials be made public with- interest. A Justice Department experts said. rized under the Foreign Intelli- leased a rebuttal, rejecting the out redactions. Those officials spokesman said such a move gence Surveillance Act, a law contention that agents had a include former FBI director triggers a review process to en- used to obtain wiretaps and partisan motive. Step 1 of the recipe for James Comey, former deputy sure national security and that conduct searches of suspected In July, the Justice Depart- shrimp ssam that appeared in director Andrew McCabe, for- the department was working to The order came three days foreign spies. Because FISA ment released a redacted ver- Off Duty on Sept. 8 calls for a mer FBI agent Peter Strzok, comply with Mr. Trump’s order. after former Trump campaign deals with espionage matters, it sion of the FBI’s application to half-tablespoon of sugar for former FBI lawyer Lisa Page Former government officials chairman Paul Manafort agreed is one of the most closely monitor Mr. Page in response to marinating the shrimp. The and Justice Department offi- said the documents wouldn’t to cooperate with prosecutors in guarded processes in the federal public information requests and published recipe incorrectly 1 cial Bruce Ohr. necessarily immediately become the Mueller probe. And on Mon- government and is overseen by lawsuits filed by the news me- said to add 1/4 tablespoons of Those officials were involved public but would instead likely day, in a signal that Mr. Muel- a secret court. dia. Mr. Trump is now asking sugar to the marinade. at the highest levels of the in- be transmitted to committees in ler’s investigation was moving Democrats on Monday con- for additional portions of the vestigation into Russian inter- Congress that have requested closer to the finish line, his of- tended that the declassification application to be released. A November 2017 analysis ference in the 2016 U.S. elec- the information, particularly the fice said it was ready for a fed- order was another salvo in a The version released in July by the Joint Committee on tion. They are frequent targets House Intelligence Committee. eral judge to sentence Mr. partisan battle being waged to made plain that Mr. Page was in Taxation showed that under a of criticism from Mr. Trump Lawmakers could then choose Trump’s former national secu- protect Mr. Trump and discredit the FBI’s crosshairs and that the draft House Republican tax bill and his allies. All but Mr. Ohr to release the information. It rity adviser, Michael Flynn, on an investigation that has al- Justice Department strongly households earning between have left government service. also would become subject to Nov. 28. ready resulted in guilty pleas or suspected he might have been $50,000 and $75,000 would Messrs. Comey, McCabe and freedom of information laws. Mr. Flynn pleaded guilty in convictions of his former cam- working with Russians to help get a 7% tax cut on average in Strzok were fired, while Ms. David Kris, former chief of December to lying to investiga- paign chairman, his former na- Mr. Trump’s campaign. Mr. Page 2021, while households earn- Page resigned this year. the Justice Department’s na- tors about his calls with Mos- tional security adviser and sev- has repeatedly denied being an ing more than $1 million would eral others involved in his agent of the Russian govern- geta5%cut.ANov.4,2017, campaign or his business. ment. Page One article about the bill “President Trump, in a clear Mr. Trump specified 21 pages incorrectly said the cuts would abuse of power, has decided to of the FISA application be de- be received in 2019. intervene in a pending law en- classified. Those pages, accord- forcement investigation by or- ing to the redacted version, fo- Readers can alert The Wall Street Journal to any errors in news articles dering the selective release of cus on Mr. Page’s links to and by emailing [email protected] or materials he believes are helpful business dealings with Russia. by calling 888-410-2667. to his defense team and thinks will advance a false narrative,” THE WALL STREET JOURNAL said Rep. Adam Schiff (D., Ca- (USPS 664-880) (Eastern Edition ISSN 0099-9660) lif.), the top Democrat on the (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) House Intelligence Committee. Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Republicans allege that the Published daily except Sundays and general legal holidays. FBI relied, at least in part, on al- Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. legations drawn from a dossier All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of compiled by former British in- which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of telligence agent Christopher the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Steele, which was funded by Letters to the Editor: Fax: 212-416-2891; email: [email protected] Democratic-linked groups. Re- publicans have asserted the FBI NEED ASSISTANCE WITH YOUR SUBSCRIPTION? didn’t fully disclose that fact to By web: customercenter.wsj.com; By email: [email protected] the FISA court and noted that By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat Mr. Ohr’s wife worked for one of REPRINTS & LICENSING the firms involved in compiling By email: [email protected]; By phone: 1-800-843-0008 the material.

EVAN VUCCI/ASSOCIATED PRESS The FISA application shows GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS The White House said the president made the decision in response to requests from legislators. that the FBI told the court it be- THE WALL STREET JOURNAL. **** Tuesday, September 18, 2018 | A3 U.S. NEWS JOSE JIMENEZ FOR THE WALL STREET JOURNAL (2) Gladys Peña estimates it will cost $64,000 to tear down and rebuild her San Juan home. The local College of Engineers is helping her. Puerto Rico Warns on Rebuilding BY LAURA KUSISTO will be offered a housing AND ARIAN CAMPO-FLORES voucher to relocate. If proper- ties aren’t available, they are SAN JUAN, Puerto Rico—The eligible for a new home out- Puerto Rican government is side the floodplain, the gov- taking a hard line on rebuilding ernment’s plan says. properties decimated by last Proponents of relocation " ...THE MOST FLEXIBLE OF THE year’s Hurricane Maria, offer- say it is the safer long-term U.S. JET MEMBERSHIP PROGRAMS" ing homeowners federal finan- approach. There has to be a Conklin & de Decker cial assistance only if they way “to incentivize people to move out of flood-prone areas. want to be in a healthy area,” Government officials say said Sandra Knight, a senior they don’t want to rebuild com- research engineer at the Uni- munities on land that is vulner- versity of Maryland’s Center able to soil erosion, chronic for Disaster Resilience. flooding and destruction from Puerto Rico faces particular future storms. challenges. Elevating each “We need to move families home would cost in the range to a safe place,” said Luis Bur- of $44,000, according to the diel Agudo, president of the government, which makes lit- Economic Development Bank tle economic sense on an is- for Puerto Rico, a government- land with a median home owned bank that is helping Benito Lopez is rebuilding his home in Jayuya on a cliff that was value of about $100,000. oversee the recovery. eroded by Hurricane Maria. He can’t afford structural engineers. Homeowners who use fed- Whether to rebuild homes in eral funds to rebuild in place areas that are likely to flood Most local governments of- eral funds for repairing and would also be required to ob- FLY again is a major issue for com- fer homeowners a choice be- rebuilding homes, compared tain flood insurance, a chal- munities in places like Texas tween elevating their homes with $75 million for a volun- lenge on the low-income is- and Florida, especially as the or taking a buyout of their tary buyout program. land. Those denied federal WITHOUT costs of insuring these homes damaged home to move else- Puerto Rico is opting for a assistance may go ahead and soar and rising sea levels mean where. In most cases, families tougher stance. The govern- rebuild themselves, making LIMITS more frequent flooding. The stay and rebuild. ment is set to receive $20 bil- the homes even more precari- federal government has tried to In a buyout program, lion of federal funding to re- ous, nonprofit leaders warn. step up purchases of frequently homes are typically razed, and build from Hurricanes Irma Maria Rodríguez-Collazo, flooded houses from their own- and Maria, and to protect director of housing programs ers instead of repeatedly pay- against future storms. It is giv- at PathStone Corp. Puerto JetCardby Air Partner ing out money from the finan- The government gives ing some homeowners an ulti- Rico, a nonprofit, is working cially troubled federal flood- matum: Either move or there with Benito López, an 81-year- The worldwide private jet program insurance program. some homeowners an will be no funds to rebuild. old who has lived more than that’s all about you. With 100% Now, with floodwaters from ultimatum: Move or This approach is posing a half of his life in a concrete Hurricane Florence inundating difficult choice for thousands home on a cliff that was fully refundable flight credit, cities in the Carolinas, the issue you won’t get funds. of the more than 100,000 eroded during the hurricane. no blackout dates, flight hours of how to get vulnerable home- owners whose homes were de- The home had to be demol- that never expire and the ability to owners to take buyouts is likely stroyed or damaged. ished. It would cost $70,000 apply funds to on-demand charter. to emerge again. North Carolina Norma Judith Colón, a 43- to create a retaining wall to Gov. Roy Cooper said in a press the land is left as open space. year-old resident of a flood- rebuild his home safely—not briefing Sunday that the state In Harris County, which en- prone area, is among those ex- much less than his home was Call us now 888 - 359 - 4349 would have to “look carefully” compasses Houston, buyouts pected to face relocation worth. Or visit www.airpartner.com/wj at buyouts of repeatedly flooded are “100% voluntary” for all pressure. Ms. Colón said she Mr. López doesn’t know properties. “There are places but a few residents, said Matt won’t consider moving and is where he would find the that have been flooded numer- Zeve, chief operations officer determined to build back her money for that and instead is ous times that you just have to for the Harris County Flood home. “I wouldn’t leave here,” going ahead and rebuilding Air Partner is not an air carrier. It acts as agents for its customers in arranging flights operated by air carriers look at and say, It’s just not Control District. Florida has Ms. Colón said. without consulting structural under FAR Part 135 (or foreign equivalent). smart to build back,” he said. set aside $273 million in fed- Those who can’t rebuild engineers or architects. A4 | Tuesday, September 18, 2018 PWLC101112HTGKBFAM123456789OIXX ***** THE WALL STREET JOURNAL. U.S. NEWS Democrats’ Quandary: Turn Anger Into Votes cratic House candidates in a vote was up 24%. That Demo- presidential election year and Dropoff cratic increase, though, came those who vote for Democrats The falloff in voting for the in part because the party has in House elections two years House of Representatives held significantly more con- later has been bigger than the between presidential and tested primaries, which tend same drop experienced by Re- midterm election years has to attract more voters. publicans. Notably, the one tended in recent cycles to be CAPITAL JOURNAL exception came in 2006, when larger for Democrats than for n any case, the irony is Democrats took back control Republicans. that the best turnout mo- By Gerald F. Seib of the House and the Senate. tivator Democrats have Percentage decline in total I this year probably isn’t Mr. national vote in House races he drop between presi- Obama or any other Demo- As critical midterm elec- dential voting and Democrats Republicans crat, but rather President tions approach, here is both a T midterm voting was 0% Trump himself. He is far and statement of the obvious and particularly sharp during the away the most dominant fig- a profoundly important obser- terms of President Obama. In –10 ure on the political scene, and vation: Elections are decided both of the midterms during disdain for him seems more not by those his time—in 2010 and 2014— –20 likely than anything else to who answer the decline in Democratic drive Democrats to the polls. polls, or those turnout was about 40% from –30 Of course, Mr. Trump will who complain the prior presidential elec- motivate Republicans as well, loudly on so- tion, compared with fall- –40 and he already is using the cial media, but backs of 14% and 32% for Re- 2000 2004 2008 2012 specter of a Democratic take- by those who publicans in the same years. -02 -06 -10 -14 over to spur GOP voters. actually show up and vote. That tells you that Mr. JUSTIN LANE/EPA/SHUTTERSTOCK On that front, here’s a cau- And that could be a cloud Obama never quite managed Democrats have a harder time than the GOP in getting voters Source: Federal Election Commission tionary note for Democrats: marring the otherwise sunny to transfer the considerable who show up for presidential elections to turn out for midterms. THE WALL STREET JOURNAL. Their enthusiasm advantage skies Democrats see over No- energy he produced when may well erode when the crit- vember’s election, which will running for president into days excited Democrats long- more enthused about voting this year. The surge came in ical bloc of Trump-supporting determine both control of energy to help other Demo- ing for someone to give voice this fall than are Republi- the wake of the school shoot- evangelical votes is energized Congress and the arc of Pres- crats running for Congress. to their disdain for the Trump cans—and African-American ing in Parkland, Fla., which in this fall’s stretch run. ident Trump’s term. Indeed, the falloff explains presidency. History, though, voters now are showing the produced a wave of activism The Faith and Freedom The hard reality for Demo- how Democrats lost control says that doesn’t automati- same level of interest as are aimed at gun violence. Coalition, an activist group crats is that they have a of Congress two years into cally transfer into hard votes. Democrats overall. There also is some evi- run by longtime evangelical harder time than do Republi- his presidency, in 2010, and The key constituencies in The enthusiasm among dence that these factors have leader Ralph Reed, plans to cans in getting voters who never won it back. preventing the usual falloff in young voters in those poll been pulling more Democrats make two million targeted show up for presidential That, in turn, raises the Democratic turnout are mi- findings is markedly lower, to the polls in primary elec- home visits, distribute 40 elections to turn out for mid- question of how effective Mr. nority voters and millennials, which constitutes a giant tions this year. A Pew Re- million voter guides and term elections. This fall’s Obama can be in motivating and, in theory, Mr. Obama can warning light for Democrats. search Center study of turn- send out 28 million video outcome will turn on Democrats to show up this help there. Indeed, there is But here’s a countervailing out in the first 31 states to ads before the election, all whether 2018 is different. fall now that he has hit the some hard evidence to sug- reading: TargetSmart, a polit- hold primaries showed that with the goal of energizing Data from the Federal Elec- campaign trail on behalf of gest Democrats will do better ical analytics firm, found this the total number of votes supporters for the midterms. tion Commission show that in his party. He remains Demo- this year on both fronts. summer that registration cast in Democratic House “Our voters are going to three of the last four election crats’ most powerful national Wall Street Journal/NBC rates for voters aged 18 to 29 primaries was up 84% over come” to the polls, says Mr. cycles, the drop-off between spokesman, and his return to News polling data have shown had increased “significantly” the same levels four years Reed. “And they’re going to those who vote for Demo- campaign mode in recent all year that Democrats are in key battleground states ago, while the Republican come in big numbers.” CAMPAIGN professor, that Justice Thomas WIRE CourtPick, had sexually harassed her when he had been her supervisor. Justice Thomas denied the alle- WISCONSIN HisAccuser gation. This time, a hearing would GOP Keeps Ad Funds unfold against the additional For Ryan’s District WillTestify backdrop of a growing move- ment against sexual harassment With so many seats in play in and the fractious politics of the November, Republicans are ContinuedfromPageOne Trump presidency and the mid- spending resources for seats ing. The hearing, to be held term election season. they’d otherwise like to consider next Monday, will be Judge Ka- Judge Kavanaugh visited the safe—including Speaker of the vanaugh’s best chance to rescue White House Monday and House Paul Ryan’s. Mr. Ryan is his imperiled nomination and spoke by phone to senators, retiring from Congress at the respond to the allegations in a fielding questions about the end of this term, and the race public forum. sexual-assault allegations, a for his open seat in Wisconsin is The hearing will pit his cred- White House official said. rated lean Republican by the ibility against an explosive ac- Mrs. Ford first contacted nonpartisan Cook Political Report. cusation made by Christine Bla- Congress with her allegations In a sign that the GOP is tak- sey Ford, a California college in July, hoping to remain anon- ing the race seriously, the Con- professor, who said he sexually ymous. The matter spilled into gressional Leadership Fund, a su- assaulted her when they were public view several days ago per PAC aligned with House teenagers. Mrs. Ford told the when Sen. Dianne Feinstein of Republican leadership, has re- Washington Post that when she California, the top Democrat on served $1.5 million in advertise- and Judge Kavanaugh were the Senate Judiciary Commit- ments in the district. One ad at- teenagers at a party in the tee, said she had reported a tacks Democrat Randy Bryce’s Washington, D.C., area, he and a matter involving Judge Ka- history with the law; Mr. Bryce friend pulled her into a bed- vanaugh to the Federal Bureau

has been arrested several times, room. Judge Kavanaugh pinned ALEX WROBLEWSKI/REUTERS of Investigation. Mrs. Feinstein once for driving under the influ- her down on the bed, groped Judge Brett Kavanaugh at his confirmation hearing on Capitol Hill earlier this month. didn’t initially name Mrs. Ford, ence of alcohol. her and attempted to remove saying the individual had re- “I was immature and made a her clothing before she es- Trump and the Republican committee this week and move his performance in the hearing. quested confidentiality. horrible, thoughtless decision. I caped, Mrs. Ford said in the ar- leadership in Congress. him to the Senate floor next The Republicans control the Democrats have been seek- have never forgotten this. I’m not ticle. After initial signals that Re- week—in time for him to join Senate by a narrow 51-49 ad- ing to slow down the Ka- proud of it. I’ve worked every day Mrs. Ford, now a professor publican leaders would pursue the court at the start of its fall vantage, so two Republican vanaugh confirmation process, since to be a man my son can at Palo Alto University in Cali- private phone calls with the session. votes against Judge Kavanaugh which they argue has been look up to,” Mr. Bryce said in a fornia, described the episode as judge and his accuser rather Senate Majority Leader would be enough to sink his rushed in an effort to get the statement about the DUI arrest. aggressive. “I thought he might than a public forum, Mr. Grass- Mitch McConnell said he sup- nomination if Democrats were judge seated before the mid- —Andrew Duehren inadvertently kill me,” she told ley said late Monday the panel ported the decision to hold a to vote against him as a bloc. terms. Republicans, including the Post. She said that Mr. Ka- would go ahead with a hearing Several Republicans have Mr. Trump and Mr. McConnell, NORTH DAKOTA vanaugh appeared to be intoxi- featuring both Mrs. Ford and said that they are withholding see their success in putting cated during their encounter. Judge Kavanaugh. Mr. Grassley Republican leaders judgment until the hearing, in- conservatives on the bench, es- U.S.-China Trade Row Efforts to reach Mrs. Ford said he made the decision after cluding key votes like Susan pecially the Supreme Court, as Shadows Senate Race weren’t successful. his staff spoke with Mrs. Ford had appeared Collins of Maine, Lisa a strong campaign message to Judge Kavanaugh called the and Judge Kavanaugh in the af- reluctant to commit Murkowski of Alaska and Jeff their base voters. The U.S. trade conflict with accusation “completely false.” ternoon. Flake of Arizona. “I need to see Liberal activists have also China has proven to be a political He added: “I have never done President Trump indicated to a hearing. them and listen to their an- put heavy pressure on Demo- obstacle for Republicans in some anything like what the accuser he was willing to accept a small swers to the questions in order crats to oppose the nomination, of the most competitive races in describes—to her or to any- delay in the confirmation pro- to make an assessment,” Ms. concerned about Judge Ka- the country, and the Trump ad- one.” He said he didn’t know cess to sort out the allegations. Collins said. vanaugh’s views on abortion ministration’s decision to unveil who was making the accusation “We want to go through a hearing about the accusations. Other Republicans stood by rights, executive power and fresh tariffs on an additional until Mrs. Ford identified her- full process…and hear every- “The committee has made a Judge Kavanaugh. Sen. Orrin government regulation. $200 billion of Chinese imports self on Sunday. body out,” said Mr. Trump, good decision and we’re going Hatch of Utah said he had spo- Most Senate Democrats have likely won’t help in North Dakota. Republican leaders spent while also praising Judge Ka- to go forward with it,” he said. ken to Judge Kavanaugh and already signaled opposition to The tariffs and retaliatory Monday behind closed doors vanaugh. “If it takes a little de- Sen. John Thune (R., S.D.), an- that the nominee denied being the nomination, though several tariffs from China already in debating over how to proceed lay, it’ll take a little delay.” other member of Senate leader- at the party in question. “I be- who are running for re-election place have caused headaches for with Judge Kavanaugh’s nomi- Members of Republican Sen- ship, said of the hearing: “I just lieve him,” Mr. Hatch said. “He’s this year in states won by Mr. farmers across the Midwest, nation. He was tapped in July ate leadership expressed cau- think that’s the only way that a person of immense integrity.” Trump were believed to be pos- providing political fodder for to succeed the retiring Justice tious optimism that the hearing both Dr. Ford and Judge Kavan- The planned hearing is remi- sible “yes” votes before the ac- Democrats. Sen. Heidi Heitkamp Anthony Kennedy. The confir- could put Judge Kavanaugh’s uagh have the opportunity to niscent of the 1991 confirmation cusations of sexual assault were (D., N.D.) recently released an mation of a new, conservative nomination back on track. Re- make their case.” hearing of now-Justice Clarence made public. advertisement attacking Rep. justice to the high court is a top publicans had been hoping to The path to Judge Kavanu- Thomas that featured testi- —Peter Nicholas Kevin Cramer (R., N.D.) for his priority of both President hold a confirmation vote in agh’s confirmation hinges on mony by Anita Hill, a college contributed to this article. support of Mr. Trump’s trade agenda. The ad features a soy- bean farmer discussing the diffi- culties that the trade war with China has caused him. New Owner Could Buoy Las Vegas High-Speed Rail Mr. Trump won North Dakota by 36 percentage points in 2016, BY JIM CARLTON 185-mile route for electric investment has a meaningful and the nonpartisan Cook Politi- trains to travel at speeds up to role to play in developing cal Report rates the race as a A Florida company has 150 miles an hour between Las transportation infrastructure,” tossup. agreed to acquire the operator Vegas and Victorville, Calif., a Wes Edens, co-founder and co- —Andrew Duehren of a planned high-speed rail high-desert city on the outskirts chief executive officer of For- system connecting Las Vegas of the Los Angeles metro area. tress Investment Group, and Southern California, in a Brightline already runs the which manages funds that own deal that may breathe new life nation’s first privately fi- Brightline, said. Crafted in gold & platinum into the long-delayed project. nanced, high-speed train net- The sale comes as U.S. high- Brightline Trains LLC, based work, which opened in the Mi- speed rail projects have run Rush! Service in Miami, was expected to an- ami metro area earlier this into problems, including rising Available nounce Tuesday that it had year. The company has plans construction costs. One of the agreed to acquire XpressWest, to expand it to Orlando, 230 more controversial is California a private rail project developed miles away, with a total proj- Gov. Jerry Brown’s proposed

and owned by famed Las Vegas ect cost of $3.5 billion. XPRESSWEST bullet train linking Los Angeles Strip contractor Tony Marnell. The Las Vegas venture first An artist’s rendering of a Las Vegas-to-Southern California train. and San Francisco, where the Financial details weren’t got under way in 2005 and has estimated costs have risen disclosed. had trouble raising the money Brightline officials say they altering some of the design above $60 billion. Those trains Immortalize Your Anniversary XpressWest has secured needed to start construction. expect to build it for about and engineering. would travel more than 200 in Roman Numerals! most of the state and federal Earlier projections estimated half that. They expect to “Our experience in Florida mph, much faster than the ones JOHN-CHRISTIAN.COM 888.646.6466 approvals needed to develop a its cost at up to $7 billion, but achieve some of the savings by is proving that private-sector being deployed by Brightline. A6 | Tuesday, September 18, 2018 **** THE WALL STREET JOURNAL. U.S. NEWS Prosecutors Get Probe Of FEMA Chief Long

BY MICHAEL C. BENDER

WASHINGTON—An investi- gation targeting President Trump’s top emergency-man- agement official has been re- ferred to federal prosecutors to determine whether crimi- nal charges should be pur- sued, according to people fa- miliar with the probe. Brock Long, the adminis- trator of the Federal Emer- gency Management Agency, and two other federal employ- ees may have broken as many as six laws as they commuted frequently between Washing- ton and Mr. Long’s home in Hickory, N.C., at taxpayers’ ex- pense, said one of the people briefed on the investigation. Mr. Long has said he is co- operating with the investiga-

VEASEY CONWAY FOR THE WALL STREET JOURNAL tion, which has been led by Russell Jordan walked away from his home in Trenton, N.C., Monday after visiting to feed his dog. Mr. Jordan said for now, the water was too deep to get the dog out. the Department of Homeland Security’s inspector general. Mr. Long declined to comment through a FEMA spokesman. The inspector general’s of- Florence Taxes Vulnerable Dams fice and U.S. attorney’s office in Washington also declined BY JON KAMP The flooding poses a poten- to comment. A White House AND ERIN AILWORTH TheForcesThat Made the Storm Linger tial contamination risk for spokesman didn’t return a re- Florence was caught between high-pressure systems to the north and to the west until at least Saturday. North Carolina’s drinking-wa- quest for comment. NEW BERN, N.C.—Flooding This slowed the storm down and pushed it slightly southwest as it was moving over land. ter supply. There is also con- On Monday, House Over- remained a major concern cern that heavy rains could sight panel Chairman Trey Monday as North Carolina After Saturday, the high-pressure system to the While the storm moves toward the Northeast, breach hog-waste lagoons in Gowdy (R., S.C.) asked Mr. continued to grapple with west began moving north and then east, allowing swollen rivers are still a problem, with some not the state, which is a major Long for documents related to Florence’s effects and officials Florence to move north. forecast to crest until later this week. pork producer. State officials each of his trips home and monitored vulnerable dams for have reported problems with any communications with potential breaches, even as the High-pressure system more than a dozen waste la- FEMA employees who trav- storm moved north. High-pressure system goons in several counties. eled with him. Florence, now a tropical de- The open-air holding ponds During one of those trips, a pression, has been blamed for present a risk of contaminating federal employee was driving at least 32 deaths in the Caro- groundwater with manure a government vehicle that was

linas and Virginia since it be- NORTH stored on the state’s 2,100 hog involved in an accident, the gan battering the region as a farms. people familiar with the probe hurricane late last week, ac- By midday Monday, the said. The driver allegedly cording to authorities in both North Carolina Department of didn’t properly report the ac- states. While the storm moved Environmental Quality reported cident, and that is included in toward the Northeast, swollen two waste lagoons that had the inspector general’s refer- rivers were still a problem, been breached, seven where ral to the U.S. attorney’s of- with some not forecast to Moisture the storm picked up from heavy rain caused spillage over fice, one of the people said. crest until later this week. warm ocean waters played the the top, and four that were in- Richard Painter and Nor- biggest role in the amount of rain undated with floodwaters. man Eisen, ethics lawyers for “The next few days will be Florence generated and in long ones as the flooding con- preventing it from weakening. Reports continue to come former Presidents George W. tinues,” North Carolina Gov. Source: National Center for in and, as soon as the environ- Bush and Barack Obama, re- Dylan Moriarty/THE WALL STREET JOURNAL. Roy Cooper said at a news Atmospheric Research ment is safe, the department spectively, said there are conference Monday. will send staff to evaluate strict federal laws when it At least 25 storm-related according to utilities. Duke En- “We’re not letting people go tives, according to CSX. those reports, department comes to commuting, because deaths have occurred in North ergy Corp. on Monday said it back into the area below the In heavily flooded New Secretary Michael Regan said, it has long been one of the Carolina, including a 3-month- had restored power to more dams until we have confirma- Bern, N.C., City Manager Mark speaking at a news conference. most common ways to abuse old boy killed when a falling than 1.2 million customers. The tion it is safe and secure,” Mr. Stephens said the storm has Duke Energy reported a sec- government resources. “It’s pine tree crushed a mobile storm caused more power Hammond said. caused at least $6 million in ond breach of a coal-ash pond simply too tempting to use home on Sunday. Authorities problems as it moved north. Elsewhere, authorities on damage. Preliminary estimates at its L.V. Sutton Power Plant government resources for per- on Monday found the body of About 12,000 customers were Sunday urged residents down- show about 4,300 homes and near Wilmington, N.C., said sonal commuting,” Mr. Eisen a 1-year-old boy who was car- recently offline in Virginia. river from dams in Creston at least 300 businesses were Reggie Cheatham, director of said. ried away by rushing waters in Authorities have been keep- and Hoke County, N.C., to evac- damaged or destroyed by the the Environmental Protection Top White House officials Union County on Sunday. ing a close eye on dams as storm, he said at a news con- Agency’s office of emergency considered removing Mr. Long A tornado near Richmond, floodwaters rise and have or- ference Monday. management. from his job after learning Va., Monday afternoon caused dered evacuations near several Authorities have Emergency responders have He said the agency didn’t about the preliminary findings a building collapse that killed dams in North Carolina, from rescued more than 800 people know the size or severity of from the inspector general’s a man, the local fire depart- the state’s northwest corner to ordered evacuations there from floodwaters, he that breach. Coal ash can con- investigation, The Wall Street ment said. Authorities in its south-central border. near several dams in said. tain toxic mercury, arsenic and Journal reported on Friday. South Carolina have counted These include evacuations “Our city has suffered, obvi- lead. Those deliberations took place six storm-related deaths. of residents living near the North Carolina. ously, one of the most devastat- The first breach, reported as Hurricane Florence was The storm has prompted dams at Richmond Mill Pond ing storms in its 308-year his- over the weekend, didn’t cause forming in the Atlantic, and thousands of rescues from and Fair Lakes in Scotland tory this past week,” Mr. coal ash to leave the facility, the pending storm was a key floodwaters, sent at least 17,000 County, where authorities de- Stephens said. “As you can ex- Mr. Cheatham said. reason Mr. Long was kept in people in the Carolinas into clared a state of emergency uate due to vulnerable dams. pect, this is a significant setback The second one has the po- place, according to people fa- shelters, derailed a freight train, Sunday evening and ordered A CSX Corp. freight train at the hands of mother nature.” tential to reach water sources miliar with those talks. plunged hundreds of thousands about 500 people to evacuate. derailed on washed-out In Wilmington, a city near that lead to the Cape Fear Still, White House officials of homes into darkness and Water spilled over the top of tracks in Anson County, the coast that has been cut off River, but the EPA had no re- have started discussions flooded roadways from small the Richmond Mill Pond dam, southeast of Charlotte, send- by flooding, authorities said ports of an impact on the river, about potential successors, a streets to major interstates. but the earthen dam didn’t ing nine locomotives and five they were able to open up a he said. senior White House official About 390,000 power cus- fail, said Roylin Hammond, railcars off the tracks Sunday single route into town and —Scott Calvert, Kris Maher said. tomers were still offline in the county’s emergency man- evening. Some diesel and mo- send in 23 trucks with food, and Ben Kesling —Ben Kesling North Carolina late Monday, agement coordinator. tor oil spilled from locomo- water and supplies. contributed to this article. contributed to this article.

Carolinas and Virginia that au- City thorities blame on Florence. Ms. Phillips said she wel- comed the sound of chain saws Is Isolated as workers clear the thousands of oaks, pecans and pine trees clogging Wilmington’s streets. By Storm But she flinched every time she heard a tree fall in her Forest Hills neighborhood. ContinuedfromPageOne Caryn LaVere couldn’t find supplies, such as water and her yard gloves, but didn’t tarps and other necessities, by want to miss the sun after air to Wilmington. nearly four days of rain, so she Before Florence, Wilming- pulled on her black winter Iso- ton’s downtown bustled, with a toner gloves and grabbed a promenade along the Cape Fear rake. She and her husband Da- River typically crowded with vid hung their U.S. flag to the tourists. But the bars and res- front fence after it was ripped taurants are largely boarded from a tree. up, and the rain and overflow School has been out here from the river fill many roads. since Sept. 11 and will be out Now, most businesses are the rest of the week. closed. A Family Dollar store Ten-year-old Kajuan Redd

was looted over the weekend, CAITLIN PENNAand FOR THE WALL STREET JOURNAL his 7-year-old brother with residents reporting theft People formed a line around the block for ice at Rose Ice & Coal in Wilmington, N.C., after the company's electricity returned Monday. Ky’Heim said they have enjoyed of food, diapers, toilet paper their “hurrication.” Kajuan said and children’s clothes. Hourlong lines await those sent word from house to house best they could. Monday had many people he liked sitting on the front Even when roads do open, trying to get in the handful of that he was serving sliders and Two women walked their scrambling to get outside, mov- porch and letting the rain blow life won’t be the same: the open grocery stores, which are barbecue chicken that were go- dogs, taking note of who on ing debris and surveying their in his face. His brother said he docks are damaged, roads torn selling the few items left from ing to go bad without electric- their street had food to pool for surroundings. liked jumping on the bed, mak- up, homes wrecked. before the storm. When power ity to his industrial refrigera- a meal. One neighbor cut up pieces ing a fort and playing cards. Cars wrapped around the came on at Rose Ice & Coal Co., tors and freezers. One of them, Deborah Phil- of the Millses’ 60-foot pecan “It’s been like camping, but Sam’s Club parking lot long be- which makes ice, a line immedi- Besides, he said, all the lips, had managed on Sunday tree, which split and fell during it’s fun camping,” Kajuan said. fore the pumps were set to ately formed around the block neighbors had been helping night to scrape together what the storm. Karin Mills said she Ms. Smith said the inability open Monday. On College Road, Monday afternoon. People jos- one another all week. They she called “Hurricane Florence was sad to lose the tree but felt to get on with daily life—from one of the city’s main arteries, tled for position as police offi- took turns using one generator soup.” fortunate to be safe. A mother taking a hot shower to sleeping a line of hundreds of cars cers monitored to ensure order. by moving a long extension “It had hambone, a few veg- and 8-month-old baby were in a cool room—is wearing on stretched for a quarter-mile to Tom Mills gave up on the cord from house to house, etables and a tomato,” she said. killed a few miles away when a her. “I’m ready to get back,” get gas from one of the few power coming back at his Little powering sump pumps and “It was pretty good.” tree fell on their house, two of she said. “After a while, what open stations. Pond Caterers business and keeping refrigerators cool as A few hours of sunshine on the at least 32 fatalities in the can you do?” THE WALL STREET JOURNAL. Tuesday, September 18, 2018 | A7 A8 | Tuesday, September 18, 2018 ** THE WALL STREET JOURNAL. WORLD NEWS Russia, Turkey to Set Buffer Zone in Syria Move in Idlib aims to avert regime assault, humanitarian crisis in opposition stronghold

BY DAVID GAUTHIER-VILLARS AND RAJA ABDULRAHIM

Russia and Turkey reached a tentative agreement to create a demilitarized buffer zone in Syria’s northwestern Idlib prov- ince, a move that could help avert a fight and likely humani- tarian catastrophe. After a meeting in the Black Sea resort city of Sochi on Monday, Turkish President Re- cep Tayyip Erdogan and his Russian host, President Vladi- mir Putin, said soldiers from the two countries would patrol the last major opposition stronghold—which Syrian President Bashar al-Assad has been eager to reconquer—to enforce its demilitarization. Russia and Turkey agreed that by Oct. 10 all heavy weap- onry as well as radical groups would be moved out of the de- militarized zone, which would serve as a buffer between op- position and government forces OMAR HAJ KADOUR/AFP/GETTY IMAGES in Idlib, Russian wire agencies Syrian rebel fighters patrol in Hama province. A buffer zone in neighboring Idlib province will come into force by Oct. 15, Russian President Vladimir Putin was quoted as saying. quoted Mr. Putin as saying. He added that the zone, a 10- to Mr. Erdogan said that while both Secretary of State Mike Assad even harder if he used risked sending even more refu- Syrian government officials 12-mile corridor along the line radical rebels would be banned Pompeo and national security chemical weapons again in Idlib gees toward its border. didn’t respond to a request to of contact between rebel and from the area, opponents to the adviser John Bolton and their and had consulted with allies. Although they have been comment. pro-Assad forces, would come Assad regime whom Turkey has Russian counterparts, people “We’ve been in consultation coordinating military actions Rebel commanders in Idlib into force by Oct. 15. been backing would be allowed familiar with the talks said. with the British and the in Syria in recent months, Rus- said Monday’s announcement “Russia and Turkey are to keep their positions. While the U.S. has no troops French, who joined us in the sia—the main foreign sponsor of a demilitarized zone was working hard to prevent the “With this agreement, I be- in Idlib, it does have about second strike, and they also of the Assad regime, along the first they had heard of it. crisis from spreading,” Mr. Pu- lieve we have prevented a 2,000 in northeast Syria. agree that another use of with Iran—and Turkey, risked But they welcomed any agree- tin said. huge humanitarian crisis,” Mr. Two weeks ago, President chemical weapons will result finding themselves on oppo- ment that would prevent a Idlib, home to an estimated Erdogan said in a televised Trump used Twitter to deliver in a much stronger response,” site sides of a fight in Idlib. large-scale offensive. three million people—the vast press conference after Mon- a blunt warning about an of- Mr. Bolton said last week. For Russia, Monday’s agree- For weeks, the northwest majority of them civilians— day’s meeting, which came fensive, writing that Mr. Assad Monday’s announcement ment is an opportunity to lure province as well as adjacent contains 10,000 to 15,000 more than a week after lead- “must not recklessly attack could mark a diplomatic suc- Turkey, which boasts the North rebel-held areas in neighboring fighters from groups that Rus- ers of Russia, Turkey and Iran Idlib Province.” U.S. officials cess for Mr. Erdogan, who has Atlantic Treaty Organization’s provinces have braced for an sia, Turkey and the U.S. all failed to come to an agree- said they were especially been complaining he had been second-largest military, closer to offensive led by the regime and consider terrorists. It also is a ment over Idlib’s fate. alarmed by intelligence that “abandoned by the West,” in its side at a time when relations Russia’s military that residents base for tens of thousands of The State Department said Mr. Assad had approved the defending the fate of civilians between Ankara and Washing- feared would be even bloodier more moderate anti-Assad it was encouraged by the effort use of chlorine gas in Idlib. stuck in Idlib province. ton are at a historic low. and more devastating than fighters supported by Turkey. by Russia and Turkey to avert Since taking office last year, Turkey has established a mil- Turkey hasn’t said how it previous assaults in the war. The Assad regime, which a military offensive in Idlib, Mr. Trump has twice ordered itary presence in Syria in an ef- would persuade rebels, such as Thousands fled their homes has regularly referred to all and hoped the de-escalation airstrikes in Syria after Mr. fort to repel armed Kurdish the extremist group and former near the front lines as the regime opposition groups, including zone was made permanent. Assad was accused of using the groups it regards as terrorists al Qaeda affiliate Hayat Tahrir and Russia began carrying out political ones, as terrorists, The Trump administration banned nerve gas sarin in two away from neighboring areas. al-Sham, to disarm. Previous at- airstrikes and artillery attacks. has said it aimed to oust all in recent weeks launched an separate attacks that killed More recently, Ankara, which tempts have failed and the The U.N. warned that a full-scale rebels and reclaim control over unusually vocal effort to fore- scores of people. The Trump provides shelter to an estimated Assad regime’s threats to launch military assault on Idlib risked the entire country. It isn’t a stall an offensive in Idlib. The administration made it clear 3.5 million people from Syria, an offensive have been causing creating “the worst humanitar- party to Monday’s agreement. effort included talks involving that it was willing to hit Mr. said a battle for Idlib’s control friction among militants. ian tragedy of the 21st century.” U.S. Envoy Assails Moscow on North Korea Sanctions BY FARNAZ FASSIHI of convincing Pyongyang to didn’t mention China. While U.S. allies Monday abandon its nuclear weapons A council diplomat said called for the report to be re- UNITED NATIONS—The U.S. and long-range missile pro- China hadn’t tried to block the leased in its original format, and Russia reached an impasse grams. release of the report or to seek none specifically mentioned during a United Nations Secu- U.S. Ambassador Nikki Ha- changes, as Russia had sought Russia or openly condemned rity Council debate Monday on ley said Russia had “cheated” to do. Some diplomats said by Moscow in their remarks. North Korea, threatening to and “lied” to help North Korea omitting China from her com- Russia said it had followed upset a tenuous consensus on evade international economic ments, Ms. Haley attempted to protocol by informing the international efforts to pres- sanctions and had pressured portray a united council Panel of Experts of its con- sure Pyongyang with economic the U.N. to cover Moscow’s against Russia’s actions. cerns and asking that its posi- sanctions days before world tracks by blocking the release “Russia is actively working tion be reflected in the report. leaders gather for an annual of a U.N. investigative report to undermine the enforcement The panel is a group autho- meeting in New York. detailing Russia’s actions. of Security Council sanctions,” rized by the Security Council The impasse comes as U.S.- Russia said the U.S. had she said at Monday’s session, to research and report on the North Korean talks have worked to influence and politi- an emergency meeting called status and effectiveness of its stalled, increasing pressure on cize the report’s findings to by the U.S. She added that North Korea sanctions.

the Trump administration to blame Russia, and wasn’t of- DREW ANGERER/GETTY IMAGES Russia was “impeding our Russian Ambassador Vassily redouble sanctions efforts to fering Pyongyang enough U.S. Ambassador Nikki Haley at a meeting of the U.N. Security ability to achieve denuclear- Nebenzia said the U.S. was us- persuade Pyongyang to give sanctions relief as an incentive Council in New York on Monday. ization in North Korea.” ing the forum to target Russia. up its nuclear weapons, in for disarmament. Ms. Haley called on council “The work of Panel of Experts keeping with a June summit North Korea will be one of Council meeting on Sept. 26 on also cites China for helping members to stand with the became increasingly politi- statement in Singapore. the main topics before world the topic of nonproliferation. North Korea circumvent sanc- U.S. in demanding that the cized and they became hos- The U.S. and Russia at the leaders during the annual U.N. At Monday’s Security Coun- tions, according to a copy of U.N. Panel of Experts submit tages to Washington’s objec- Security Council exchanged General Assembly gathering cil meeting, Ms. Haley focused the document reviewed over their report in its original for- tives,” he said. accusations that the other was next week. President Trump is her comments on Russia. The the weekend by The Wall mat, without modifications —Ian Talley in Washington to blame for impeding the goal scheduled to chair a Security still-confidential U.N. report Street Journal, but Ms. Haley sought by Russia. contributed to this article. Ankara’s Financial Woes Give Hope—to Foreign Investors

BY JON SINDREU bonds and could create signifi- slowdown is under way,” said central bank from raising inter- Turkish economy is already ish banks’ foreign-borrowing cant problems for the coun- Jürgen Odenius, economic est rates to tackle inflation, slowing. In the second quarter, needs will amount to about For some foreign investors, try’s banks, and would be det- counselor at PGIM Fixed In- which hit 17.9% in August. it expanded 5.2% from a year $100 billion a year, estimates a recession would be the best rimental to living standards in come. “Such a downturn is Key for investors is whether earlier, compared with 7.3% by the International Monetary thing that could happen to the country. But for some in- necessary to foster much the lira is weak enough to jus- growth in the first quarter, ac- Fund show, more than Tur- Turkey. vestors, the risk of a recession needed rebalancing.” tify their buying local shares cording to official data. key’s entire stash of foreign- That counterintuitive no- hitting the price of their in- Turkey’s currency has lost and other assets at a discount Recessions are often cred- exchange reserves. tion is based on a view that a vestments may be lower than more than 37% this year, in as a long-term bet, even if the ited with slowing inflation, es- But higher domestic bor- shrinking economy is one of the risk of inflation eroding large part due to concern about economy tanks in the short pecially when unemployment rowing rates in lira may cause the few things that could the value of those shares, the country’s high dollar-de- run. Deutsche Bank calculates is severe enough that workers more pain than investors real- damp Turkey’s high inflation. bonds and other assets. nominated debts and a belief that the Turkish currency is lose the ability to demand ize, said Brad Setser, an econ- Turkey’s central bank took “Indicators suggest a severe that Mr. Erdogan could stop the 40% below its fair value. wage increases. In the 1980s, omist at the Council on For- a swing at inflation on Thurs- But there is a catch. If infla- the Federal Reserve brought eign Relations. day, raising its main interest tion surges above what econo- down the soaring inflation This is because most of rate to 24% from 17.75% and Bank Trouble mists are currently expect- caused by oil-price increases, Turkey’s lending boom to pleasing markets concerned With central-bank rates now at 24%, Turkish banks could end ing—they expect it to peak by pushing up interest rates businesses and households about the bank’s independence up paying more on deposits than they earn on some loans. between 20% and 25% once and causing a recession, many over the past two years was in from President Recep Tayyip the effect of costlier imports economists say. lira, not dollars. Higher short- 50% Erdogan, who one day later re- Estimated rates of outstanding lending feeds through to the econ- But inflation doesn’t always term rates mean that, in the iterated his dislike for higher and borrowing by Turkish banks omy—then much of the value descend with the economy. Af- short run, Turkish banks could lending rates. 40 of the lira could be eroded. ter Mexico’s so-called peso cri- end up paying more to their But many investors believe A slowdown in the Turkish sis of 1994, inflation jumped depositors than they earn on that higher rates alone are un- 30 economy, which last year grew while the economy plunged their outstanding stock of likely to be enough to shore up Personal loans more than any other in the into a deep recession. Inflation mortgages and commercial the lira and tame inflation, 20 Deposits Group of 20 countries, could would later fall just as the loans, estimates by The Wall and that they may also create (up to 1 month) make sure that inflation doesn’t economy began to pick up pace. Street Journal show. problems for Turkish compa- 10 Commercial get out of hand, investors say. Thursday’s rate increases “Most [banks] will be losing nies and banks trying to refi- loans Higher unemployment, for aren’t necessarily good news money on their lira loan book nance large piles of debt. 0 Housing loans instance, would deter workers for Turkey’s embattled banks. as it will take time for lira If this creates a downturn, from asking for much higher In the short term, a more rates to reset,” Mr. Setser it might be a good thing in the 2004 ’10 wages even as import costs stable lira limits these banks’ said. “I am still waiting for long run, some say. Note: Loan rates calculated using an estimate of their average maturity soar and reduce their living capital losses and should help clarity on how Turkey will Recession would hurt the Sources: Central Bank of Turkey (deposits); WSJ calculations (loans) standards. them roll over their large dol- handle the linked restructur- value of Turkey’s stocks and THE WALL STREET JOURNAL. There are signs that the lar-denominated debts. Turk- ing of its banks and its firms.” A10 | Tuesday, September 18, 2018 ** THE WALL STREET JOURNAL. WORLD NEWS Japan Joins South China Sea Drill Beijing Bolstering message Prime Minister Shinzo Abe Censures met Chinese President Xi Jin- from West, Tokyo ping this month at a confer- reveals submarine visit ence in Russia and said he Municipal would visit Beijing in October. to contested waters China has been stepping up its military presence in the Debt Spree BY CHIEKO TSUNEOKA South China Sea for years. In BY CHAO DENG AND PETER LANDERS May, China’s air force said it had landed a heavy bomber on BEIJING—China’s Finance TOKYO—Japan sent a sub- a disputed island, bolstering its Ministry is upping the pressure marine to join three destroy- control of the area. on local governments that run ers in an exercise in anti-sub- As much as a third of global up debt, reprimanding dozens marine warfare in the South trade passes annually through of officials in one province that China Sea, strengthening the the 1.35 million square miles has seen its debt troubles spill resistance by U.S. allies to of ocean, which is also into public protests. China’s military expansion. thought to be rich in natural The ministry said oral or The submarine, the Kuro- resources. China says it has written warnings were issued shio, joined the warships on historical claims to almost the to 32 officials across the Thursday before heading for a entire area. southern province of Hunan, port call at the Vietnamese na- China has repeatedly used while another official, who val base in Cam Ranh Bay, the ships and planes to challenge was in charge of a govern- first such visit by a Japanese Japan’s sovereignty over a ment-financing company, was

submarine, Japan’s Defense JAPAN MARITIME SELF-DEFENSEgroup FORCE/EPA/SHUTTERSTOCK of islets in the East fired. The officials violated Ministry said. The Kuroshio, seen in an undated photo, participated in an anti-submarine exercise on Thursday. China Sea known as the Sen- laws and regulations on gov- The statement was the first kakus in Japanese and Diaoyu ernment debt, the ministry public disclosure by the minis- Mr. Michishita called it visit to Vietnam highlighted and avoid harming regional in Chinese. said in a statement dated Fri- try of a submarine exercise in “very significant” that Japan the cooperation that the U.S. peace and stability.” The presence of Japanese day, and their reprimands are the South China Sea. was practicing its anti-subma- and its allies have been build- Mr. Geng said China was submarines in the South China part of an effort to defuse “It’s part of a strategic mes- rine warfare capability be- ing with Hanoi, which contests committed to working with Sea would be displeasing to debt-related risks. sage that Japan would like to cause China operates nuclear- China’s claims to some South Southeast Asian nations to re- China, said Yoji Koda, a retired While the ministry said the send to China and the coun- powered submarines that can China Sea territory. solve disputes. vice admiral in Japan’s navy. focus on Hunan was due to a tries in the region,” said Nar- fire ballistic missiles. Chinese Foreign Ministry The Japanese exercise could “Submarines are more difficult recent inspection by provincial ushige Michishita, a professor The exercise followed oper- spokesman Geng Shuang, complicate the recent im- to detect than surface war- officials, the province’s prob- specializing in international ations in the region by British asked about the Japanese sub- provement in relations be- ships, so it is more unwelcome lems with local-government security at the National Grad- and French forces and re- marine exercise at a press tween Tokyo and Beijing, than surface warships’ entry debt have grabbed national uate Institute for Policy Stud- peated moves by the U.S. Navy briefing, didn’t directly criti- which has developed in part to the waters,” he said. headlines, most recently when ies in Tokyo. “It’s a demon- to reinforce freedom of navi- cize Tokyo but said countries because both are facing tariffs —Jeremy Page and hundreds of parents clashed stration of Japan’s will to gation in the South China Sea. outside the South China Sea on their exports imposed by Dominique Fong in Beijing with police this month over maintain a balance of power.” The Japanese submarine’s region “should act cautiously the Trump administration. contributed to this article. overcrowding in schools in the city of Leiyang. Spending by local govern- ments has soared since the global financial crisis, when Philippines Searches for Typhoon Survivors Beijing opened the credit taps to forestall a downturn. In re- cent years, Beijing has begun Hundreds of rescue workers trying to tamp down the bor- dug through mud and debris in rowing, worrying that the debts the Philippines, seeking survi- of local governments—which vors from a monster typhoon are estimated to amount to 46% that also caused widespread of the economy—are a long- damage in Hong Kong and the term danger, especially as over- southern China coast. all economic growth slows. The mud was hardening two President Xi Jinping sig- naled a tougher approach last By Jake Maxwell year, telling a national finan- Watts in Singapore cial-policy meeting that offi- and John Lyons cials should remain account- in Hong Kong able for life for debt-related decisions while in office. Fol- days after Supertyphoon Mang- lowing that lead, the Finance khut blasted the northern Phil- Ministry has stepped up public ippines, killing at least 65 peo- naming and shaming of local ple, most of them miners on governments from Baoshan the Cordillera mountain range city in the west to Laibin city of northern Luzon island. Offi- in the deep south, mostly for cials said they hadn’t heeded borrowing via nonbank, or calls to evacuate, instead shadow, lenders. choosing to wait out the storm “Now the fiscal authorities, in a bunkhouse that doubled as particularly on the central- a chapel. government level, are willing “They thought their area to make cases transparent, as was safe so they turned it into part of their strategy for deal- an evacuation center by them- ing with debt,” said Zhiwei selves,” a local mayor, Victorio Zhang, China economist at Palangdan, told radio station Deutsche Bank. DZMM. “We did not allow them Debt problems in Hunan, a

to do so, but they threatened REUTERS rich agricultural area astride to fight us off so our policemen The Philippines bore the brunt of the damage from Supertyphoon Mangkhut, but China’s Guangdong province, above, also was struck. important transport routes, were forced to just leave.” aren’t as egregious as many Rescue teams used hand couraging deadly mudslides heavy winds, big waves and inner harbor streets, where tion of all flights Sunday after- northern and western prov- shovels to sift through the de- and flooding. tidal surges had felled trees, dark green seawater rose at noon through Monday morning inces saddled with resource bris in the mountainous area In addition to widespread damaged skyscrapers and pro- least half way up the street at Guangzhou Baiyun Interna- and rust-belt industries. Hu- where the mudslide also swept damage to infrastructure, au- duced coastal flooding—though level store fronts. Authorities tional Airport, China’s third- nan’s ratio of local-govern- away several houses, a task thorities estimated agriculture no fatalities were reported. took the unusual step of halt- busiest airport. Videos posted ment debt to gross domestic many feared would be futile. took a $53 million hit as crops Hong Kongers returning to ing gambling, a move credited on social media showed panes product reached 58% at the “You can’t even see the roof of were wiped out just weeks be- work Monday picked their way with helping the city avoid fa- of glass falling out of tall build- end of 2017, according to a the building,” said Mr. Pa- fore harvest season. along sidewalks littered with talities. ings and sheds being crushed study led by Zhang Ming, an langdan. Many roads in the Mangkhut was the world’s glass. The winds had punched Mangkhut dumped heavy by the winds. economist with state-run In- area remained blocked by de- strongest storm so far this windows out of many office rains and disrupted transport The scale of the storm’s de- stitute of World Economics bris and electricity and com- year, producing sustained towers and ripped street-level Monday across a swath of struction—and its human toll— and Politics. munications were patchy. winds of 170 miles an hour, facades. Bus service was lim- southern China, where millions may not be known for several The study’s findings include Officials said they didn’t though it lost strength after ited and delayed, and subways of people were evacuated. State days. Jiangmen, the Guangdong estimates of off-book debts by know how many people were hitting the Philippines. By were besieged by crowds. media reported the storm city where the typhoon made local governments. When still buried, but the death toll Monday, as it blew deeper into Farther west in the gam- caused at least four deaths af- landfall, estimated financial those borrowings are factored could climb as high as 100. southern China, it was down- bling hub of Macau, some ter making landfall Sunday in losses would exceed $270 mil- in, the study found, local-gov- Small-scale mining in the graded to a tropical storm. 20,000 households remained Guangdong province, a manu- lion. ernment debt ratios exceeded mountainous northern prov- In Hong Kong, a financial without power. Photos showed facturing and tech hub. —Dan Strumpf in Hong Kong 100% in Ningxia, Guizhou and inces was immediately halted hub of 7.5 million people set on yellow-helmeted emergency Along the coast, the typhoon and Eva Dou Qinghai provinces. by the government, which islands and coastlines, workers workers in red inflatable din- halted public transport, closed and Yang Jie in Beijing —Liyan Qi blamed the industry for en- Monday began a cleanup: The ghies navigating through the highways and led to cancella- contributed to this article. contributed to this article. FROM PAGE ONE

works in development at a surprise that a lot of the selling sugar-sweetened in Los Angeles, told employees Bosses nonprofit in New York, said workplace food was free, with drinks. Going along were such to please avoid their afternoon the amount of sugary treats in much of it high in so-called franchises as Subway, Panda runs to the baked goods store her office is overwhelming. empty calories from sugars Express and Jamba Juice, next door after too many Sour on Every birthday is celebrated and fats. which stopped selling juices sweets piled up at the office with a cake, she said, and U.S. taxpayers spent that weren’t all fruit- or vege- during last year’s holiday sea- there are always leftover cook- roughly $660 each in 2016 table-derived. son. The initiative didn’t last. Sweets ies and sugary snacks after cli- treating obesity-related ill- The nearby Starbucks re- “It was probably me that ent meetings. nesses covered by Medicare sisted. “Our menu is designed caved,” he said. Refuse a cupcake, Ms. and Medicaid, according to es- to reflect a range of choices Another boss, Erin Wynn, ContinuedfromPageOne Walker said, and some co- timates by Adam Biener, assis- from wholesome to indulgent, 52, said it was tough to stay viral earlier this year: “There workers “give you a look like tant professor of economics at which allows customers to healthy leading a 50-person is no sugar, candy bars, soda you’re being dramatic.” On her Lafayette College. make nutritional choices that team of mostly millennials at (diet or otherwise) allowed in own birthday, she brought in a Office crackdowns, though, are right for them,” a company WeLocalize Inc. in New York our office. If you bring some it fruit plate. Colleagues arrived can’t keep workers from their spokeswoman said. City. will get thrown away.” with a red velvet birthday fix. Jennifer Rice, 47, a nurse At UCSF’s Jamba Juice on a Everywhere she looked. Ms. Chief executive Munjal Shah cake. at Abbott Northwestern Hos- recent Sunday, employee An- Wynn said, were bowls of

said the rules, more flexible Ms. Walker cut herself a NICOLE FRIEDMAN/THE WALLpital STREET JOURNAL in Minneapolis, said that thony Patchill said he has candy, leftover cake and “ba- than they sounded, were re- tiny slice, she said, and delib- An office cake break is ready. after the hospital banned the warned customers from order- gels, bagels, bagels.” laxed after the social media erately forgot to take home sale of sugar-sweetened ing a Protein Berry Workout She finally told workers in outrage. leftovers. scribed his colleague as “a drinks, colleagues discovered a smoothie. His location uses 2014 to stop. “I don’t care if The company, however, still At inWhatLanguage, staff- health nut who eats rabbit fully stocked vending machine only unsweetened soy milk. you have it yourself, just don’t wags a finger at secondhand ers fall into a similar divide. food.” Mr. Adair said Mr. At- in the basement of a nearby “It just tastes like nothing,” put it all over the office,” she sugar. “The sales people are more on water is nicknamed “Charles- office building. Mr. Patchill said. said. “I can’t help myself.” “Don’t tempt me with your the healthy side, and the proj- ton Chew Man,” after the old- The University of Califor- Not all of the sugar-sham- One of her employees at the kids’ leftover chocolate cake,” ect management team wants timey candy bar with the nia, San Francisco, took a ing stems from concern about time was Ms. Glass, now work- said Mr. Shah, who leads a doughnuts,” said Cyle Adair, nougat center. more circuitous path. In 2015, worker health or the well-be- ing for inWhatLanguage. After startup that sells cut-rate life director of business develop- In June, the Centers for Well-Being Services Executive ing of customers. Sometimes, hearing the boss’s order four insurance to health-conscious ment. He keeps almonds and Disease Control and Preven- Director Leeane Jensen per- it is to help the boss avoid cal- years ago, Ms. Glass recalled, buyers. protein bars by his desk. tion published the first na- suaded more than two dozen ories. she sped to the aptly named The shaming goes both Abel Atwater, director of tional study looking at the food outlets at the hospital Rudy Chung, 41, a partner Black Market nearby for a ways. Hy-Deia Walker, 24, who project management, de- food people get at work. No and across campus to stop at two small music companies stash of candy. THE WALL STREET JOURNAL. **** Tuesday, September 18, 2018 | A11 WORLD NEWS ‘Nest of Spies’: Niger Turns Security Hub Western nations build stretches of territory around the northern city of Gao. Along presence in poor African the southern frontier with Ni- country, hoping to stem geria, a rejuvenated Boko Haram is mounting intensify- migration and terrorism ing attacks against security forces, including around the BY JOE PARKINSON city of Diffa, where the U.S. has AND MACKENZIE KNOWLES-COURSIN dozens of troops stationed. To the north lies Libya, which has NIAMEY, Niger—Diplomats, become a hotbed of instability, spies and hostage negotiators weapons and radicalization. gather nightly on the moonlit “Niger is the only place in terraces of colonial-era hotels the region where we can oper- in this remote desert capital ate safely,” a senior EU official to trade intelligence on secu- said. “We can’t allow this proj- rity threats. ect to fail.” Foreign bases and vast new The European Development embassy complexes are rising Fund last year awarded $1 bil- along sand-caked streets. In lion to Niger through 2020, and the shadows, smugglers move unusually for a country gover- migrants, guns and drugs nance watchdogs deem chroni- across lawless territory. cally corrupt, 75% is now in- Niger, a poverty-stricken na- fused directly into the Nigerien tion perched on the southern budget instead of through non- belt of the Sahara, is rapidly governmental organizations. being transformed into one of Islamist extremism isn’t the world’s most strategic se- new to the Sahel region, but curity hubs. Its capital has be- community leaders and ana- come ground zero for a multi- lysts say the problem is mu- billion-dollar Western project tating into an emergency as to halt the migrant trail from localized conflicts fuse and West Africa toward the Medi- compound one another, creat-

terranean and combat the ex- MACKENZIE KNOWLES-COURSIN FORing THE WALL STREET JOURNAL (2) an arc of instability pansion of jihadist activity Niger’s capital Niamey is becoming the center of a Western project to halt the flow of West African migrants to Europe and fight terror. stretching thousands of miles. across the Sahel, the semiarid It is into this realm that U.S. region south of the Sahara. recipient of European Union serious risks. dying in the desert in failed at- and European powers have ex- Advocates say the strategy aid. Western leaders, including U.S. and European policy ‘This place is tempts to find new routes. panded their military presence. is fortifying the country German Chancellor Angela makers praise the government now for the “The West is pleased be- The U.S. now has 800 personnel against security threats. Oppo- Merkel and French President as a good partner that has wel- Americans and cause Niger’s government is a in Niger, up from 100 in 2013, its nents say it makes Niger a tar- Emmanuel Macron have vis- comed foreign military person- French,’ a willing partner, but they are second-largest deployment in get. Central districts of Niamey ited, offering pledges of part- nel and slashed the migrant former securitizing the country Africa after Djibouti’s maritime are being overrun by what lo- nership and investment. flow by almost 90% from 2015 smuggler in against the will of the major- base, according to U.S. Africa cals call the Green Zone: diplo- Western military forces op- highs. But some locals fear the Agadez says. ity,” said Julien Brachet, an Command, or Africom. France matic facilities cloistered be- erate from at least nine bases capital is being dragged into the expert on the region at Oxford declined to provide troop num- hind rings of checkpoints and in Niger, government officials heart of the region’s conflict. University. “It could come bers per country but its Defense armed soldiers. said. On a recent day at Nia- Locals, nongovernmental the opposition is fearmonger- back to haunt them.” Ministry said it has boosted “This place is a nest of mey’s airport, two French jet organizations and opposition ing to undermine the region’s Niger’s security chief, Mo- personnel across the Sahel to spies,” said one contractor fighters screeched skyward activists say the government is most stable administration. hammed Bazoum, said West- 4,500, a 50% increase. German who is working to secure the from the runway as a giant using international backing to Swaths of the nation’s cen- ern partners need to increase and Italian special forces have release a European hostage American C-130 transport plane neutralize dissent and embez- turies-old transportation econ- aid to stop the country from also been deployed in Niger. kidnapped by jihadists in the taxied below. The U.S. is finish- zle millions of dollars in aid, omy—the movement of people being engulfed by regional Security experts said Ni- same region where Islamic ing a large air base in Agadez, charges the government de- and goods from West Africa security threats. “We have ger’s longer-term stability State militants killed four U.S. while the Central Intelligence nies. The opposition—backed through the Sahara—has essen- become a hinge country, a hinges on whether local and commandos in October 2017. Agency has begun flying armed by rights group Amnesty In- tially been criminalized by the geostrategic hub, but it is a foreign interests align. “Below the radar, it’s become drones from an airstrip outside ternational—says President EU crackdown on migration. disaster for us. We are known “This place is now for the a key country for the West.” the northern town of Dirkou, Mahamadou Idriss Issoufou, in Some of the desert-dwelling as a land of terrorism and mi- Americans and French,” said A surge in financial assis- Nigerien officials said. power since 2011, is arbitrarily Tuareg people, who have trans- grant traffic.” Sadiq, a former migrant smug- tance from European nations Western powers have jailing activists and spending ported goods for centuries, are Across Niger’s western bor- gler who evaded arrest and is seeking to stem the flow of Af- cheered the strategy to trans- Western aid on bolstering his now smuggling weapons, men der with Mali, jihadist groups now unemployed. “They took rican migrants has made Niger form Niger into a regional bul- elite Presidential Guard. and money for cash-rich jihad- including Islamic State and al our livelihood and don’t give the world’s largest per capita wark, but it also comes with Government officials say ist insurgencies. Migrants are Qaeda franchises control us anything in return.” Extreme Poverty Fuels Risks in Sub-Saharan Africa BY BETSY MCKAY productivity, access to repro- east and facing violent clashes cause of political opposition to AND GABRIELE STEINHAUSER Feeling the Pain ductive health tools, so that the over farmland in its center. In migrants, said Mr. Gates, Extreme poverty is declining globally, but it is expected to youthful population of Africa Congo, which is battling its whose foundation invests in The number of people living become more concentrated in sub-Saharan Africa, home to becomes an asset rather than a second Ebola outbreak this programs to eliminate disease in extreme poverty is becom- growing youth populations. burden to those countries,” Bill year, violence has spread be- and improve access to health ing concentrated in some of Gates said in an interview. yond the restive east since care in developing nations. the most unstable and popu- Share of population living in extreme poverty* He pointed out both the 2016, when President Joseph “Each country to some de- lous parts of Africa, raising the Sub-Saharan Africa South Asia 10 poorest countries in 2050 promise and peril that Africa’s Kabila put off national elec- gree is on its own to solve risk of political violence and SE Asia, East Asia and Oceania 2050 projections 2017 rising youth population poses. tions due that December. their challenges,” he said. devastating disease outbreaks. Global Today, six out of 10 Africans Lambert Mende, the coun- Countries need an adult lit- Just two countries—Nigeria 60% Somalia are under the age of 25. If ed- try’s information minister, re- eracy rate of at least 70% to in- and the Democratic Republic of Projections ucated and healthy, they could jected the report’s findings. dustrialize and grow at a pace 50 Burundi Congo—will be home to 44% of Madagascar be a source for rapid economic “We will prove them wrong,” that leaves the average citizen people living in extreme pov- growth, he said. he said. “We are on our way to better off, said Charles Robert- 40 Zambia erty by 2050 if trends continue, In a speech last week, Nige- leave poverty behind thanks to son, global chief economist at according to a new report from 30 Malawi rian Vice President Yemi Osin- a more rational management Renaissance Capital in London, the Bill & Melinda Gates Foun- C. African Republic bajo touted the country’s young of our natural resources.” who has studied the impact of dation, compared with 20% to- 20 Congo population as an economic op- European leaders have education on African econo- day. The World Bank, which 10 Nigeria portunity, but warned that fail- voiced concerns about wasting mies. Birthrates begin to taper will release its own report on Guinea-Bissau ure to provide education, jobs the continent’s demographic po- off when societies, including extreme poverty this week, de- 0 South Sudan and other opportunities to this tential. German Chancellor An- women, reach higher levels of fines the status as subsisting 1990 2000 ’10 ’20 ’30 ’40 ’50 0% 25 50 75 new generation could leave the gela Merkel, French President education and gross domestic on less than $1.90 a day. *Less than $1.90 a day country sitting on a “popula- Emmanuel Macron and U.K. product per capita, he said. Sub-Saharan Africa as a Source: Institute for Health Metrics and Evaluation via Bill & Melinda Gates Foundation tion time bomb.” Prime Minister Theresa May Swaths of the continent, es- whole will be home to 86% of THE WALL STREET JOURNAL. “To avoid the time-bomb sce- have all visited the continent in pecially East African nations the world’s extreme poor un- nario, we must act with urgency the past three months, promis- such as Kenya and Tanzania, are less action is taken, such as number of extremely poor ical uprisings and governments’ to build an economy that can ing investment and cooperation starting to reach the literacy educating more women and people, long in decline, could challenges in providing health support that population, provide on vocational training. At the thresholds and other conditions giving them access to contra- begin rising again. care, education and job oppor- jobs and economic opportunity, same time, however, Europe is for an economic takeoff, Mr. ception, the report says. That Extreme poverty is concen- tunities for a growing popula- education and health care, hope boosting its border controls to Robertson said. Yet Mali, Niger compares with 57% in 2017. trating in these countries be- tion could generate more insta- and optimism,’’ he said. keep out unwanted migrants. and other countries in West and The trends risk stalling de- cause their birthrates are higher bility, experts warn. Nigeria is still trying to Immigration to richer na- Central Africa have adult liter- cades of progress curbing dis- than in wealthier nations. The “We need to invest in the shake off the 2014 oil-price tions, where population growth acy rates below 40%, he said. ease and lifting people out of rising numbers of very poor human capital—the health, nu- collapse, while fighting Boko is slower or stagnant, probably —Gbenga Akingbule poverty, the report says. The people in areas marred by polit- trition, education, agricultural Haram jihadists in the north- won’t provide a solution be- contributed to this article.

WORLDWATCH In Mexico, a Mother Confronts Her Loss

MACEDONIA UNITED KINGDOM UKRAINE U.S. Says Russia High Cost for Messy Orthodox Envoys Obstructs NATO Bid Brexit, IMF Warns Meet With President Defense Secretary Jim Mattis The International Monetary Ukraine’s president met with warned that Russia is actively Fund said that an abrupt and two envoys sent by the spiritual working against a referendum in messy break from the European leader of the world’s Orthodox Macedonia that would clear the Union would cause severe harm Christians to prepare for establish- way for the Balkan nation to to the British economy, adding ing a Ukrainian church that is ec- join the North Atlantic Treaty that the U.K. won’t be prepared clesiastically independent from the Organization. for such an outcome when Brit- Russian Orthodox Church. Mr. Mattis, who flew to ain leaves in March. The prospect of an indepen- Macedonia on Monday to meet In its annual report on the dent church in Ukraine has deeply the country’s leaders in advance British economy, the IMF said it angered the Russian church, which of the Sept. 30 vote, told re- expects the U.K. economy to ex- last week gave a sharp spiritual porters traveling with him that pand around 1.5% this year and rebuff to Ecumenical Patriarch said there was “no doubt” Rus- in 2019, provided that London Batholomew I and questioned his sia has funded pro-Russian and Brussels can agree on terms status as “first among equals.” groups to work against the ref- for a divorce before the U.K. Archbishop Daniel of the erendum and to hinder the leaves the bloc. Ukrainian Orthodox Church of the small country’s attempts to join Christine Lagarde, IMF man- USA said in the Monday meeting with the West. aging director, said that failure with President Petro Poroshenko “They have transferred to conclude an agreement would that “we have come to Ukraine money, and they’re also conduct- likely mean “substantial costs” this time...to continue work on ing broader influence cam- for the U.K. economy, with lesser the question that has already paigns,” Mr. Mattis said of Rus- costs also falling on the EU. been decided, that the beginning

sia’s actions. “We ought to leave If a deal is agreed, the econ- of the process of declaring the FELIX MARQUEZ/ASSOCIATED PRESS the Macedonian people to make omy might get a short-term Ukrainian Orthodox Church auto- GRIEF: A woman is comforted at a mass grave in Arbolillo, in Veracruz state, where her son’s remains up their own minds.” boost, the fund said. cephalous has begun.” were found. Close to 170 human skulls were dug up in early September, evidence of an epidemic of drug —Gordon Lubold —Jason Douglas —Associated Press. cartel kidnappings and murders. More than 37,000 people were missing in Mexico by the end of April. A12 | Tuesday, September 18, 2018 ** THE WALL STREET JOURNAL. IN DEPTH Tariff Twist: A More Competitive China

To avoid losses, Chinese manufacturers are racing even faster to more advanced products

BY LIZA LIN AND DAN STRUMPF seems to care about low-tech factories like the one he runs SHENZHEN, China—There in Zhongshan. “We were the is an unintended consequence backbone of China’s growth,” of White House’s trade battle Mr. Hubbs said. “Now China with China: Companies in the is…saying ‘We don’t need you, Pearl River Delta, the center we want higher quality manu- of China’s manufacturing facturing.’ ” might, are accelerating toward Mr. Hubbs is slowly shrink- making higher-quality prod- ing his production in the re- ucts to compete against Amer- gion, and moving some manu- ican goods. facturing to the U.S. In response to tariffs, China’s focus on developing which make his goods more its high-technology sectors is expensive, Michael Lu of LTS one of the key issues in the Group plans to trim costs by U.S.-China trade dispute. In using more robots at his his March 22 report on Chi- plants, which make lamps, nese trade practices, U.S. bulbs and other lighting prod- Trade Representative Robert ucts sold at American stores. Lighthizer zeroed in on Bei- He is also moving low-skilled jing’s Made in China 2025 in- work elsewhere in Asia. dustrial policy, introduced Left in Shenzhen will be his three years ago, which aims to research and development op- make China a global leader in erations and a team of skilled industries such as robotics workers who make his com- and electric vehicles. pany’s more complex prod- ucts, such as smart lighting. “The U.S. tariffs are push- Unfair policies

ing China toward making the ANTHONY KWAN FOR THE WALL STREET JOURNAL (3) Those goals have led the higher-end stuff,” Mr. Lu said Jimmy Liao of TechTurbo Innovation, left, and Michael Lu of LTS Group, right, have adjusted their businesses to account for tariffs. Chinese government to insti- as he walked past red-uni- tute unfair policies, the report formed workers in his Shen- decades ago, Chinese leader said, including subsidizing fa- zhen factory. “It’s helping Deng Xiaoping chose the re- Tech Powerhouse vored Chinese industries with China be more competitive gion to be the vanguard for Guangdong province, home to the Pearl River Delta, has increasingly turned to making high-tech products. government capital and re- down the road.” China’s economic liberaliza- quiring Western firms to give After building its economy tion. In the years since, it has Share of high-tech products in Guangdong industrial output† Industrial production of up trade secrets when they on a mountain of inexpensive turned to making sophisti- exports from Guangdong 12 months ended May 2018 high-tech products form joint ventures with Chi- exports, China has been on a cated electronics. 45% High-medium tech $3.0 trillion nese firms. The Trump admin- mission to upgrade its output. Manufacturers say the re- Other manufacturing istration’s tariffs are partly Over the past few years, Bei- gion’s many attributes include 40 Non-manufacturing 2.5 aimed at getting China to jing has embarked on a cam- rock-solid supply chains, easy abandon these practices. paign to ship low-skill factory access to ports, proximity to Analysts say that Beijing 35 2.0 work out of the country and the financial precincts of Hong 9 sees Made in China as a na- build an economy that uses Kong and the political stability tional imperative and isn’t 30 1.5 advanced manufacturing tech- ensured by Beijing. There’s likely to back away from its Total: niques to produce high-value also a large workforce, with 47.9 central aim. products. about 60 million residents. 25 $3.2 trillion 1.0 China “can’t stay low end— U.S. tariffs promise to make In 2000, 17% of the region’s 43.1 Rest of China if you stay low end, your selling low-cost goods to industrial output was classi- 20 0.5 wages stay low end,” said Ali- American consumers less fied as high-tech products, in- cia Garcia Herrero, the chief profitable. Companies as a re- cluding electronics, biotech 15 0 Guangdong economist for Asia in Hong sult are rethinking their oper- and aerospace components. 2000 ’05 ’10’15 ’17* Manufacturing: 91% 2000 ’05 ’10 ’15 Kong at French investment ations and products, while the That rose to 44% last year, ac- bank Natixis. “It is essential *Estimate †‘High-medium tech’ includes computer and telecommunications equipment, electronics and biotech and aerospace products, among government is offering more cording to figures from the lo- others. ‘Other' includes goods such as food and beverages and oil, chemical and metal products. that disposable income con- incentives to help the transi- cal government and HSBC Re- Source: HSBC THE WALL STREET JOURNAL. tinues to increase so that Chi- tion along. search. nese are happy, because that To help spur the manufac- U.S. customers. are still plenty of gritty fac- be subject to the latest tariffs. is the social contract.” turing revolution in the face With its futuristic skyscrap- tory towns like Dongguan, He is moving one-fifth of pro- The new U.S. tariffs of 10% The next round of tariffs, Guangdong prov- ers and lush greenbelts, Shen- with its boxy, low-slung build- duction to Vietnam for his on $200 billion worth of Accelerating that process ince, which includes the Pearl zhen established itself as a re- ings churning out inexpensive U.S. exports, and keeping pro- China imports—to be later wasn’t exactly the goal of River Delta, recently an- pository of electronic furniture, clothing and chemi- duction for European and raised to 25%—adds to the President Trump’s tariffs. The nounced plans to invest more component parts more than a cal products—though there, other markets at his factory in current 25% on $50 billion of U.S. action is aimed at stop- than 450 billion yuan ($65.46 decade ago, and manufactur- too, change is in the air. Even Dongguan. imports. With the new tariffs ping what the administration billion) through 2020 to subsi- ers flocked in from around the before the recent trade ten- Mr. Lee said the company in effect, China’s annual GDP says is unfair competition, cit- dize strategic industries in- world. The biggest city by sion, factories making low-end will incur higher costs in growth could fall to 5.6% in ing Beijing’s support for stra- cluding information technol- economic output in the Delta, products had already begun worker training and material 2019, research firm Oxford tegic industries such as semi- ogy, high-end equipment Shenzhen relies on exports for shifting inland or to other shipment in the short term, Economics predicts. That conductors and an assortment manufacturing and biomedical about three-quarters of its countries, as wages in the but he expects the move will would be its lowest level in al- of tactics, including industrial products. gross domestic product, which delta region rose and the gov- save money in the long run. most three decades. espionage, to unlock the trade Jimmy Liao’s company in was 2.24 trillion yuan in 2017. ernment tightened environ- “The supply chain and capa- Last week, Guangdong secrets of U.S. auto makers Shenzhen, TechTurbo Innova- Today, it is home to the mental protection rules. bility in Vietnam takes time to province published new in- and other companies. tion Ltd., buys and modifies biggest operation center in Telecommunications giant build,” he said. “Once it is vestment rules allowing for- The initial tariffs on $50 computer chips for use in China for iPhone maker Fox- Huawei Technologies Co. is built up, Vietnam will be eign investors to produce an billion in Chinese imports smartwatches, internet-con- conn Technology Group, and opening a new 13 million- cheaper than China.” array of high-tech products largely hit so-called intermedi- nected home devices and spe- is headquarters for Chinese square-foot campus alongside Mr. Lee intends to keep the without a joint-venture part- ate goods purchased by busi- cialty lighting products. Many internet giant Tencent Hold- bucolic Songshan Lake for its manufacturing of more com- ner, as previously required, in nesses, including semiconduc- of its clients make products ings Ltd. Many old factory research and development plicated products such as out- an effort to bolster higher-end tors, plastics and machinery. that were expected to fall on buildings are home to re- team and other units. door wooden drink coolers in manufacturing. Mr. Trump’s next round of tar- the $200 billion list of tariffs, search and design studios, or Tony Lee’s Sintai Furniture China for now. Wang Guanghui said he re- iffs on roughly $200 billion of leaving them searching for startups working in artificial Co. makes outdoor furniture As battle lines on trade alized last year, before the tar- goods will sweep in many ways to cut costs—including intelligence or financial tech- and other products sold at were being drawn earlier this iffs, that his business making more consumer products. asking Mr. Liao for less expen- nology. Costco, Home Depot and other year, GMM Nonstick Coatings plastic packaging for smart- Since the tit-for-tat trade sive chips. Outside Shenzhen, there U.S. stores that he expected to in Zhuhai decided to shift fac- phone covers and other con- threats begun, the Chinese His solution: Buy fewer tory work to India and build sumer products might be at yuan and the nation’s stock chips from his chief American four additional facilities there. risk to lower-cost competitors markets have slid, with the chip supplier, Qualcomm Inc., Ravin Gandhi, chief executive elsewhere. With the help of a currency down almost 6% and steer more business to a officer, said GMM worried $63,000 grant from the local against the dollar this year. Chinese supplier, Telink Semi- that its nonstick coatings, government, Mr. Wang’s Shen- The trade friction is also conductor Co. which are used on cookware zhen Fulee Industrial Co. de- weighing on an economy that “Chinese chips don’t per- such as George Foreman grills, veloped a machine that auto- is already slowing, in part due form as well as their U.S. might be next on the tariffs mates the process of making to a top-priority debt cleanup. counterparts,” Mr. Liao said. hit list. plastic packaging, saving labor Beijing is easing off that cam- “But the manufacturers here “There’s already been a costs. paign to arrest the slowdown, are very keen to work with us natural shift away from China, His company now sells that and its desire to revive to improve their chips, and but now it’s accelerated since machine, along with continu- growth may limit its ability to they are also getting much the trade friction,” he said. ing to make plastic packaging. endure a lengthy trade battle. better.” Charles Hubbs, a director “We knew we had to invest Meanwhile, the shift to TechTurbo engineers are at Houston-based Premier in research and development higher-value products is well working to tweak the chips to Guard, which makes operating to upgrade our products, or under way in the Pearl River boost performance, he said, room drapes and other medi- we would be phased out,” Mr. Delta—one of the world’s larg- and the modified chips are cal shielding products, said Wang said. est cluster of urban areas, good enough so that he can what bothers him is that the —Zhang Chunying with nine cities. Nearly four now show off samples to his A TechTurbo employee tests a prototype smart LED light. Chinese government no longer contributed to this article.

would start out at 25%, but Bluetooth devices, bicycle hel- Heartland vowed to try to turn U.S. Levies ended up deciding to phase mets, high chairs and car its opposition to the new im- Apple Avoids Levies about earlier this month. them in, starting at 10% next seats. port curbs into an issue in this That reliance also could Monday before going to 25% Despite those adjustments, fall’s congressional campaign, On Some Devices make the iPhone and other de- New Tariffs at the beginning of 2019. the president’s new round of one already seen as difficult vices vulnerable if Chinese offi- “We wanted to give people tariffs drew criticism from the for Mr. Trump’s Republican Apple Inc. dodged stinging cials follow through on retalia- more of a chance to look for U.S. business community, Party. “Together, we will en- duties on its smartwatches tory moves to restrict sales of On China alternative supplies…to make which has steadily opposed sure that Washington under- and wireless earbuds after the materials, equipment and parts adjustments,” a senior admin- such duties, even as many ex- stands the real-life conse- U.S. excluded those gadgets key to U.S. manufacturers— istration official said. Other ecutives said they share the quences of tariffs for from tariffs on $200 billion in measures The Wall Street ContinuedfromPageOne officials have said they also administration’s complaints communities across the coun- Chinese goods, though the Journal on Sunday reported that there would be no pros- wanted to diminish the impact about Chinese trade practices. try,” the group said. tech giant still faces retaliatory that Beijing is considering. pect the talks could stave off on consumers in the holiday “We are extremely discour- The duties on $200 billion measures being weighed by The timing of the countries’ the latest round of penalties. shopping season. aged by the decision to move in goods were finalized less China that could strike iPhone new measures could be espe- Asked if Mr. Liu would go In response to thousands of forward on tariffs on millions than two weeks after the end production there. cially bad for Apple, which this ahead with the trip if the tar- comments submitted by im- of products American consum- of a comment period that The trade tensions are rat- week starts shipping two of its iffs were announced before he porters seeking to be spared ers buy every day,” said Hun drew 6,000 written submis- tling companies in a range of three new iPhones and a new arrived, Mr. Geng said China the taxes, the administration Quach, vice president of inter- sions and more than 300 wit- industries, but Apple’s heavy smartwatch. Those new de- would only hold talks “on the removed about 300 products national trade for the Retail nesses at public hearings. That dependence on the U.S. and vices are expected to help fuel basis of equality,” an indica- that had been included in the Industry Leaders Association, compares with the three China makes it especially vul- the company’s sales in the fi- tion that the new penalties original tariff list released in a trade group representing weeks spent earlier honing a nerable as the world’s two nal three months of the year, could scuttle the meetings. early July. large chains like Walmart and list of tariffs covering just $34 largest powers escalate their when holiday shopping helps The Trump administration Among the products re- Best Buy. “Tariffs are a tax on billion in goods, with $16 bil- economic feud. Because Apple deliver about one-third of Ap- did take some steps to soften moved were smartwatches, American families, period,” lion added a month later. assembles nearly all of its gad- ple’s annual revenue. the potential blow to the U.S., following a direct plea by Ap- Ms. Quach said. “Consumers— The Consumer Technology gets in China, its devices are Apple Chief Executive Tim with the final plan reflecting ple Inc., which relies heavily not China—will bear the brunt Association trade group called vulnerable to the Trump ad- Cook has urged Mr. Trump to some changes from the origi- on production in China and of these tariffs.” the expected tariffs “legally ministration’s plans to widen avoid a trade battle, saying it nal version laid out a few has said it would be hit espe- A recently formed coalition questionable.” the scope of tariffs on Chinese would hurt U.S. companies. weeks earlier. cially hard by the duties. Offi- of business and farming —Lingling Wei in Beijing imports—a risk Apple warned —Tripp Mickle Officials had said the duties cials said they also removed groups called Tariffs Hurt the contributed to this article. THE WALL STREET JOURNAL. ***** NY Tuesday, September 18, 2018 | A12A GREATER NEW YORK Yeshiva Has Ardent Fans and Critics BY LESLIE BRODY A lawyer representing the were part of the curriculum,” ten through college age, and is yeshivas said none barred en- said one father. But he said stu- fundraising for a major build- Chaim Levin, who attended a try. Last week, the department dents learn analytic skills from ing expansion. Its website fea- Brooklyn yeshiva called Oholei said nine of the schools that studying Judaic texts. “It’s not tures a video with tributes Torah from age 5 through 15, weren’t toured earlier have of- like you’re sitting there for from years past, including a said the school taught no Eng- fered dates for visits, but de- eight hours looking at the wall.” glowing interview with former lish or science, scant geography, clined to identify which ones. These parents argue they Mayor Rudy Giuliani. and little history except for that Some Oholei Torah alumni have the right to educate their One father who pulled his of the Chabad-Lubavitch move- have been particularly outspo- children as they see fit. Some children out of Oholei Torah ment at the heart of its mission. ken in saying the school’s focus taxpayers, however, support recently said, “If someone Mr. Levin, now 29 years on religious studies left them state oversight, partly because wanted to grow up to be a old, has been vocal in criticiz- unprepared for jobs and mod- private schools get public rabbi this could be a great ing the school’s academics. ern life. State law requires pri- money. Yeshivas in New York school, but I don’t think 1,800 “The hardest part is the com- vate K-12 schools to provide City received a total of nearly kids will grow up to be rabbis.” munity you come from views academic instruction, including $36 million in federal funding Some parents say they love you as an enemy because you English, ‘‘substantially equiva- in the last school year for ex- Oholei Torah’s power to moti-

dare to bring it up,” he said. lent” to that in public schools. ERIN LEFEVREtra FOR THE WALL STREET JOURNAL academic supports for low- vate students. Itchie Gross, Now he is studying multiplica- Rabbi Joseph Rosenfeld, ex- Chaim Levin was a student at Oholei Torah yeshiva in Brooklyn achieving children, as well as who produces spice packets tion and fractions in a reme- ecutive director of Oholei To- from age 5 through 15, but says there are big gaps in his education. nearly $7 million worth of for pizza makers, said his 8- dial math course at Stony rah, didn’t agree to a reporter’s books through a state pro- year-old son comes home Brook University. request for a tour or interview. their children learn numbers book version of “Curious gram, and about $48 million happy every day. “He has con- The large private boys’ He said through a public-rela- and measurement when they George” at home, “doesn’t get in state reimbursement for fidence in his ability to learn,” school in Crown Heights is one tions firm that the students come up as part of a Jewish text. ABCs in school, that’s the begin- busing, according to the city Mr. Gross said. “They instill in of 30 Orthodox yeshivas under are taught to be global think- Even so, they said the ye- ning and end of it.” She said her education department. the kids to be a mensch.” scrutiny by the city’s Depart- ers, through an academically shiva offers what they want older sons explore science in the The schools under scrutiny Activists who left that de- ment of Education, which says rigorous “dynamic model of most for their sons, a strong context of religious texts’ refer- are a fraction of the roughly 275 vout community keep pressing it is investigating allegations learning” that extends well religious foundation in Hebrew ences to agriculture, constella- yeshivas citywide, which have for change. Yossi Newfield, a the institutions fail teach past traditional school hours. and Yiddish. They said many tions and other parts of nature. about 115,000 students, accord- 38-year-old alumnus, said the enough secular studies. Last Four parents willing to de- parents teach their children “The instruction in Oholei To- ing to a coalition representing yeshiva’s goal is to keep stu- month, the department said 15 scribe the curriculum declined English and math after school, rah is more than adequate, and the yeshivas under review. dents in an insular world. “They of these yeshivas had allowed to be named. They said the or pay tutors to do so. Some what we choose for our children Many Jewish day schools are don’t want the boys to assimi- visits and pledged to expand school gives no formal lessons students use online lessons is to give them a good founda- known for strong academics. late into America,” he said, “so secular academics, but the in English writing, grammar or from Khan Academy. tion for moral and constructive Oholei Torah, founded in they cut away the type of study other 15 had denied access, in- spelling, though teachers often One mother said her young life in society,” she added. 1956, says it serves more than that would help kids be suc- cluding Oholei Torah. speak English in class. They said son, who is reading a comic “I would be happy if English 1,850 students from kindergar- cessful outside the community.” Man Arrested in Blaze at Brooklyn Mall That Injured Dozens of Firefighters Police Shoot Woman In Queens BY KATIE HONAN

New York Police Department officers shot and killed a woman who lunged at them with a knife inside her Queens apartment on Monday after she called to report a burglar in- side her home, police said. Officers responded to a 911 call about a burglary at 52-14 69th St. in the Maspeth neigh- borhood of Queens at around 5:30 p.m., according to Chief of Detectives Dermot Shea. Four uniformed officers in two patrol cars arrived and were met by a 54-year-old woman who said there was an- other woman with a knife or razor burglarizing her second- floor apartment, Mr. Shea said at a news conference. The woman followed the of- ficers upstairs as they searched for a burglar and

STEPHEN YANG/REUTERS then lunged at them with a 10- inch knife, he said. The officers A 23-year-old man was ar- Department said. The suspect, Avon Stephens, The fire started in an area About 50 people suffered told her to put down the knife rested and charged with arson in The seven-alarm fire broke was arrested after he was seen rented by a car dealership on the non-life-threatening injuries, in- but she refused, Chief Shea connection with a massive fire out at the Kings Plaza Shopping on surveillance video in the vicin- second level of the garage, said a cluding six civilians, the FDNY said. One of the officers then that broke out in the parking ga- Center’s garage at about 8:30 ity when the fire erupted, accord- spokesman for the Fire Depart- spokesman said. shot her three times in the rage of a Brooklyn shopping mall a.m. Dozens of firefighters suf- ing to the NYPD. It wasn’t ment of New York. At least 20 to —Melanie Grayce West torso, according to Chief Shea. Monday, the New York Police fered minor injuries, officials said. known if he had a lawyer. 30 cars were destroyed, he said. and Katie Honan She died at the scene, he said. There was no sign of a bur- glary at the home, Chief Shea said. Police said there have been several other 911 calls to the home in the past. Fatal Drug Overdoses Increased in 2017 “This is a tragedy all the way around,” Chief Shea said. BY MELANIE GRAYCE WEST 100,000 people in 2017, com- was highest among Bronx resi- ages 55 to 84, it is possible The woman lived in the On the Rise pared with 20.7 in 2016. dents, compared with other they have been using drugs for apartment with a man, but he Unintentional drug overdose The number of people who Fentanyl—a powerful, syn- boroughs. The largest increase years. With the advent of fen- wasn’t home at the time. deaths in New York City die of drug overdoses in New thetic opioid—was detected in in the rate of overdose tanyl, however, there is a “dra- York City rose in 2017, but the more than half of the deaths, deaths—a 16% rise—occurred matic impact” and “many, 1,500 deaths rate at which people are dying New York City Department of among people ages 55 to 84. many don’t know” that a drug CORRECTIONS is slowing, according to new Health and Mental Hygiene offi- “For the first time in over a has been mixed, she said. data released Monday by the cials said. The drug, which is in- decade, the risk of fatal over- The health department said AMPLIFICATIONS 1,000 city’s health department. creasingly mixed with non-opi- dose is higher in African- it would distribute at least There were 1,487 confirmed oid drugs such as cocaine, has Americans than in whites,” 15,000 naloxone kits—an opi- unintentional drug overdose driven the overall rise in over- acting Health Commissioner oid overdose-reversal drug—in New York state Sen. Jeff 500 deaths in 2017, up 62 from dose deaths between 2014 and Oxiris Barbot said. the Bronx, focusing on areas Klein formed the Independent 2016. The rate of unintentional 2017, health officials said. Her- Denise Paone, who oversees where the drug fatalities are Democratic Conference in deaths increased for the sev- oin was the second most com- the city’s drug-overdose data, highest. The city said it would 2011. An article Friday about 0 enth straight year; one New mon drug involved in deaths. said fentanyl plays a role in expand access to buprenor- Thursday’s primary election Yorker dies every six hours The rate of drug overdoses the spike in fatalities among phine to treat opioid addiction incorrectly said 2014. 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 from an overdose. was highest among black New black New Yorkers. The rate of at new sites in the Bronx and Source: NYC Office of the Chief Medical The rate of fatal drug over- Yorkers, compared with white cocaine deaths is highest Manhattan. It also will fund Readers can alert The Wall Street Examiner; NYC DOHMH Bureau of Vital Journal to any errors in news articles Statistics doses remained relatively flat, and Latino New Yorkers. The among black New Yorkers, she buprenorphine in several by emailing [email protected] or THE WALL STREET JOURNAL. however, with 21.2 deaths per number and rate of overdoses said, and for an older person emergency departments. by calling 888-410-2667. THE WALL STREET JOURNAL. ****** Tuesday, September 18, 2018 | A13 LIFE&ARTS

TELEVISION Netflix and HBO Tie in Emmys Race

‘Game of Thrones,’ ‘Marvelous Mrs. Maisel’ take the night’s top prizes for drama and comedy

BY JOHN JURGENSEN

BO and Netflix tied for the most Emmy Awards with 23 each, Hhighlighting the race for dominance in a television industry whose competi- tive landscape is rapidly shifting. HBO’s “Game of Thrones” won Outstanding Drama Series for the third time in four years, edging out competing series from Netflix, NBC and AMC, along with last year’s winner, Hulu’s “The Handmaid’s Tale.” Amazon became the first streaming service to win Outstand- ing Comedy Series with “The Mar- velous Mrs. Maisel,” about a Man- hattan woman moonlighting as a stand-up comedian in the 1950s. “Mrs. Maisel” dominated in most of Monday night’s comedy categories. Rachel Brosnahan, who plays the title character, won for lead actress in a comedy. Her co- star, Alex Borstein, won the sup- porting actress category, and se- ries creator Amy Sherman- Palladino made two trips to the stage to collect writing and direct- The cast of the HBO series ‘Game of Thrones,’ above, accept the award for Outstanding Drama Series at the Emmys. ‘The Marvelous Mrs. Maisel,’ an Amazon ing trophies. series about a woman who tries stand-up comedy in the 1950s, won Outstanding Comedy Series, below. Matthew Rhys, bottom left, took an acting trophy for Among Netflix’s wins, Claire Foy his role in FX’s ‘The Americans,’ as did Claire Foy, bottom right, for her performance in the Netflix series ‘The Crown.’ landed the award for lead actress in a drama series for her portrayal “Black Mirror,” William Bridges Unlike most entertainment of Queen Elizabeth II in “The and Charlie Brooker, thanked some awards shows that honor a crop of Crown,” which is continuing with a of the show that influenced them, new releases, the Emmys represent new actress in the role as the se- including “Star Trek” and “The a mix of debut shows, long-running ries moves into the monarch’s later Twilight Zone.” series, specials and programs that years. Regina King won for lead ac- In addition to HBO’s win for have taken their final bows. tress in a limited series for her “Game of Thrones,” “Barry,” about For example, the heavily deco- role in “Seven Seconds,” which was a hit man attempting a career rated “Game of Thrones” stormed canceled after its first season. change, picked up several awards. back into the Emmys this year with The FX period drama “The “Barry” star Bill Hader won lead 22 nominations, after sitting out Americans,” about a family of un- actor in a comedy, while industry the competition in 2017 because of dercover Soviet spies, was largely veteran Henry Winkler received his eligibility reasons. It went on to ignored by Television Academy first-ever Emmy for his supporting win the most awards of any series, voters through much of its six-sea- role in the series as an acting guru. including a supporting actor prize son run. But it received a final “Saturday Night Live” became a for Peter Dinklage. dose of Emmy glory when Matthew repeat winner for variety sketch In the supporting actress cate- Rhys earned a trophy for lead ac- series, and John Oliver’s “Last gory for dramas, Thandie Newton tor, and producers Joel Fields and Week Tonight” won variety talk se- won for her turn as a rebellious au- Joe Weisberg won for their writ- ries for a third year in a row. tomaton in HBO’s “Westworld.” ing. Netflix scored 112 nominations, The Emmys show opened with a Producer Ryan Murphy and FX, slightly more than HBO’s 108, mock self-congratulatory song seasoned winners in the limited se- though the network entered Mon- about Hollywood ending racism, ries category, won the top prize for day’s telecast slightly ahead in featuring the chorus “We solved the latest iteration of their anthol- wins from previous days of the it.” Co-hosts Michael Che and Colin ogy series “The Assassination of awards. Jost joked about the entertainment Gianni Versace: American Crime The comedy series award went industry’s problems with sexual Story.” Other winners from the se- from one of the most predictable misconduct and diversity. ries included lead actor Darren Emmys—dominated by “Modern Perhaps the most heartwarming Criss and Mr. Murphy himself, who Family” from 2010 to 2014, and moment of the night happened won a trophy for directing. “Veep” from 2015 through 2017—to when Glenn Weiss won for direct- Merritt Wever and Jeff Daniels one of the most competitive, as ing this year’s Oscars telecast. He won for their supporting roles in new, edgy series like Donald used his acceptance speech to the Netflix western “Godless” (and Glover’s often surreal “Atlanta,” make an apparently surprise mar- Mr. Daniels thanked his horse, “Barry” and the 1980s ladies’ wres- riage proposal to his girlfriend, Jan Apollo). The winning writers for tling dramedy “GLOW” have Svendsen, then slid a ring on her

the streaming service’s sci-fi series emerged. finger on stage. CLOCKWISE FROM TOP: ROBYN BECK/AGENCE FRANCE-PRESSE/GETTY IMAGES; MIKE BLAKE/REUTERS; CHRIS PIZZELLO/INVISION/AP (2)

WORK & FAMILY | By Sue Shellenbarger WHEN COMPANIES BENEFIT FROM NAYSAYERS

IT STARTS with an uneasy feel- book, was drawn to the company in many obstacles. One is the by- ing—a gnawing sense that your 2011 partly because of its mission stander effect—people’s reluctance employer’s way of doing business of connecting people and its suc- to intervene against wrongdoing doesn’t square with its principles, cess in doing so during the Arab when others are present and wit- or yours. Spring uprising. nessing it too, Dr. Grant says. Ask What do you do when your em- He says he tried while working yourself in such cases, “If no one ployer strays from its mission? there in 2011 and 2012 to call exec- acted here, what would be the con- About one in eight employees utives’ attention to data-security sequences?” he says. Be careful not cite their employer’s mission as the problems. Facebook’s data-privacy to argue too passionately for the main reason they stay on the job, problems hadn’t yet surfaced pub- changes you want, Dr. Grant says. according to a recent survey of licly at that time, and Mr. Parakilas Show respect for others’ viewpoint. 36,348 workers by Comparably, a got what he calls “a feeble re- Acknowledge the flaws in your ar- workplace culture and salary site. sponse.” He left the company and gument to show you’ve thought it Companies often embrace lofty has penned op-ed articles criticiz- through carefully. mission statements partly to retain ing the company. Be open about your concerns, workers, such as vowing “to inspire Facebook changed its mission says Jonah Sachs, an Oakland, Ca- humanity” (JetBlue) or “to refresh statement last year to put more lif., speaker and author of “Unsafe the world in mind, body and spirit” emphasis on building community. Thinking,” a book on creative risk- (Coca-Cola). Its previous mission was “to give taking. People who complain in se- However, intense pursuit of a people the power to share and cret are more likely to make ene- mission can foster groupthink and make the world more open and mies and be seen as disloyal,

resistance to change. Companies BRIAN STAUFFER connected.” Now it aspires to “give compared with those who resist in need naysayers to bring problems people the power to build commu- the open, research shows. to light—even though speaking up lost hope and quit. She has since dissatisfied workers. Dissenters are nity and bring the world closer to- Sydney Cavero-Egúsquiza, a di- can jeopardize their standing in the founded a consulting firm, Connec- most vocal in Silicon Valley, home gether.” etitian and nutritionist, grew un- organization, or even their job. tive Impact, to help clients set phil- to some of the most ambitious cor- Facebook encourages dissenters easy when a former employer Dissenters face these conflicts at anthropic priorities and choose porate missions. (YouTube aims “to to speak up, says Bertie Thomson, asked her to help run a weight-loss companies and nonprofits alike. projects with the greatest impact. give everyone a voice and show director of corporate communica- competition in retail stores. She’d Joanne Sonenshine was dismayed Inspiring mission statements can them the world.” Snapchat’s parent, tions. Facebook has said that while seen so many clients discouraged when her former employer, a non- blind people, says Adam Grant, au- Snap Inc., claims to “contribute to it was fair to criticize its enforce- by repeated dieting failures that profit promoting sustainability, be- thor of “Originals,” a book on non- human progress by empowering ment of privacy policies in 2012, she believed in a gentler approach. gan shifting funding toward court- conformists. “The point of a mis- people to express themselves.”) it’s devoting hundreds of people Ms. Cavero-Egúsquiza of Tulsa, ing and entertaining corporate sion is that it’s never finished, or Former employees and managers and new technology to better en- Okla., says she pushed back diplo- partners, away from the grass-roots never entirely achieved. This can have formed or joined advocacy forcement now. matically, urging her managers to development work she valued. The make people extremely zealous groups to battle what they say are As chief strategy officer at the run a healthy-living program and organization’s mission had been a about doing whatever it takes to the addictive, divisive effects of the Center for Humane Technology, a prize drawing instead, to no avail. major reason she signed on. “I felt fulfill it, even if some of their ac- technology they built. Many signed nonprofit launched in February, Mr. She was soon laid off in a downsiz- strongly I was doing my part to tions are at odds with the organiza- petitions recently protesting their Parakilas is advocating now for ing. Ms. Cavero-Egúsquiza has change the world,” says the Arling- tion’s values,” says Dr. Grant, a pro- companies’ work with Immigration technology and policies to make us- since started her own nutrition- ton, Va., economist and author. fessor of management at the and Customs Enforcement over the ing social media safer, less addic- therapy firm, Simply You Nutrition. She says she tried to persuade Wharton School. agency’s role in separating migrant tive and less vulnerable to manipu- She says she has no regrets about leaders to shift their focus, but Some employees mount protests children from their parents. lation. voicing dissent. “I never have to faced mounting attempts to micro- about ethical issues via Sandy Parakilas, a former plat- People who object on principle look back and think, I wish I’d spo- manage her work. She eventually Coworker.org, a meeting place for form operations manager at Face- to their employers’ conduct face ken up,” she says. A14 | Tuesday, September 18, 2018 THE WALL STREET JOURNAL. LIFE & ARTS

WHAT’S YOUR WORKOUT? | By Jen Murphy Marathons Between Her Big Deals

WHEN PEGGY JOHNSON wants the upper hand in business negoti- ations, she picks up the pace. “When I run with customers, the goal is to go just fast enough so they can’t talk much and I can dominate the conversation,” she says. The 56-year-old Microsoft exec- utive is known for her ability to spearhead major deals for the company. That competitive drive also fuels her dedicated running routine. Ms. Johnson has her sights set on completing the world’s five biggest marathons—in Berlin, Boston, Chicago, London and New York City. Ms. Johnson says the most she’d run before college was a lap around her high school track. Her college roommate, a member of the San Diego State University cross-country team, inspired her to go longer. Running helped re- lieve stress, kept her focused and, as she started her career, provided time to plan her days and prepare for presentations. “Running has kept me in the tech industry for 30 years,” she says. “On those long, frustrating days, it’s my sal- vation.” In 1998, Ms. Johnson discovered that the Dublin Marathon coin- cided with a family trip to Ireland. She signed up and bought a book on marathon training. “I remem- ber crossing the finish line and they put a medal around my neck and gave me a beer and a candy bar,” she says. “I thought, ‘Wow, is

every marathon like this?’ ” CLOCKWISE FROM BOTTOM RIGHT: PEGGY JOHNSON; DANIEL SILVERBERG FOR THE WALL STREET JOURNAL (2) Hooked, she went on to run five Microsoft executive Peggy Johnson trained for the 2018 Berlin Marathon on her company’s Redmond, Wash., campus, above, and on Evergreen Point Floating New York City Marathons. She Bridge near her home outside Seattle, below left. Ms. Johnson, below second from right, with family members after they ran the marathon in Germany. says her children, ages 19, 27 and 29, encouraged her to chase the Ms. Johnson has passed the The Workout outside. She believes exploring runs she stays fueled with energy Big Five. Last year she ran the running bug on to her family. Her Ms. Johnson, Microsoft’s execu- new cities on foot gives her a busi- chews. If you want to get on her Chicago Marathon and on Sunday two eldest children, both mara- tive vice president of business de- ness edge. good side, buy her Red Vines lico- she toed the line at the Berlin thoners, joined her in Berlin, and velopment, doesn’t have time for “If I’m sitting across from a rice. “Not Twizzlers, for the re- Marathon. She finished with a her husband, Eric Johnson, who more than 5 miles during the partner or potential customer and cord,” she says. time of 4 hours, 27 minutes and she says was never a big runner, week. She aims to run every day, I know a bit more about their lo- 27 seconds. made his marathon debut. but sometimes early flights make cale, it helps me learn more about The Gear that impossible. She is on the road them,” she says. Sydney and Paris Ms. Johnson likes minimalist about every other week for mostly are two of her favorite cities for sneakers like Nike Free. She buys domestic travel. She is so adamant running. In some places, including capri leggings with a side pocket about getting in her training that Saudi Arabia, she settles for the to stash her cellphone. If she runs when she accidentally packed two treadmill. pre-sunrise, she wears a headlamp left sneakers on a business trip, At home, she’s up by 4:30 a.m. and a vest with flashing lights. “I she laced them up. “It wasn’t very and off for her run by 6 a.m., look like a Christmas tree,” she comfortable, but I had to get in 5 fueled by a few cups of coffee. She jokes. She wears a FitBit and lis- miles,” she says. runs the same loop in her neigh- tens to tunes via a small in-ear Ms. Johnson almost always runs borhood in Medina, Wash., to en- Bose headset. sure she gets back on time for work. She saves her long runs for The Playlist weekends, putting in at least one Ms. Johnson sets her running 20-to-22-mile run ahead of a mara- playlist on Spotify to shuffle. “I thon. “I don’t ever want to be un- have quite a variety on there and prepared on race day,” she says. like never knowing what will come up,” she says. “I do flip past songs The Diet if the beat is too slow, and when I Ms. Johnson is a creature of hit a hill I try to find a pump me habit when it comes to diet. She up song like ‘My House’” by Flo eats plain yogurt and granola al- Rida. most every morning. Lunch is soup Her playlist includes “3 Rounds or salad. Her husband is the cook. and a Sound” by Blind Pilot, “Ten- Dinner is salad and a protein, like nessee Whiskey” by Chris Staple- turkey burgers or veal. ton, “Vanderlyle Crybaby Geeks” On longer running days she by the National and “Dirty Old grazes on nuts and granola. During Town” by the Pogues.

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 1234 5678910111213 Down 28 Fits of anger 50s Edmontondt 40s <0 40s 50s 1 “Get down!” VancouverV 0s 14 15 16 29 Exerciser who Calgary 50s 10s 2 Antioxidant-rich might stop at Seattle Winnipegp 17 18 19 60s 60s 20s berry the food court PPortlandd Montreal 20 21 22 23 Helenal 70s 30s 3 State of change 31 Deg. for a Bismarckk 60s Ottawa designer 60s Billings AugustaA 40s 24 25 26 27 Eugene 80s 4 Word aptly 80s Mpls./St.ppls/ /St.P.Pa. PauPaul AlbanyA bany Bostont 50s hidden in 32 Timeshare, often 60s Pierre TorontoT 28 29 30 70s Boisei Hartfordrtford 70s Milwaukeek Detroit Buffalol 60s Instagram Newew Y Yorkk 34 Pothole’s place Siouxoux FFalls FLORENCE 70s 31 32 33 34 35 80s Reno ChicagoCh g ClevelandCCl l d 5 Super 35 Party with power Cheyenne 80s 80s PhiladelphiaPh d ph 80s 60s Sacramento Salt Lake City Omahah Deses Moinesi IndianapolisIndianap li PittsburghPittsb h 80s 36 37 38 39 “POW!”-er? 70s Washingtonh onn D.C.D.CDC 37 Class with Sann Franciscoi 90s 90s Denver 90s Topeka SpringfieldSpringpg d 40 41 42 6 Sign at a live CharlestonCh Richmondh d 100+ integrals, for 70s 90s Colorado Kansas St.. Louis LouLLouisvilleill telecast Springspg City short LasL 90s Wichitahit Raleighihh VegasV g 70s 70s 90s 43 44 45 46 LosA AngelesAngel 7 Square of XL 90s Santaa F Fe 80s Nashvilleh ill CChCharlotte l tt 38 Whodunit 100s Memphish ColumbiaC b 47 48 49 PhoenixPh AlbuquerqueAlbb q q Oklahomahoma City 8 ___-country discovery San Diego Little Rock AtlantaAtl t Warm Rain 70s TucsonTuc Birminghamih 50 51 52 53 54 (modern music 90s DllDallas JacksonJack 39 Pony’s pace Ft.F . Worthth Cold genre) ElP Paso 90s T-storms Mobilebil JJacksonvillek ill 55 56 57 58 59 60 44 Part of TGIF 30s 80s AustinA 9 Sinuous fish 40s Houstont Stationary Snow Neweww Orleans Orlandoldd 61 62 63 45 Second of two 80s Sanan AntonioA i TaTampap 10 Seth Rogen’s 50s 64 65 66 physique Honolulull 60s Miami Showers Flurries 46 Puzzle AAnchorageh g 60s 90s 80s 70s 11 Lambda Literary 47 Swing and a miss Ice FOLDING INWARD Award category | By Erik Agard 48 Refined over U.S. Forecasts Today Tomorrow Today Tomorrow Across 12 Locations time City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W 30 Regale at 50 Gustav who s...sunny; pc... partly cloudy; c...cloudy; sh...showers; bedtime composed “The 13 Vampire fighter’s Omaha 91 72 pc 93 73 pc Frankfurt 85 60 pc 85 59 pc 1 Cockamamie 49 Subtly malicious t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Planets” Orlando 92 73 pc 92 74 pc Geneva 81 59 pc 81 58 pc weapon Today Tomorrow 5 Got booed 31 Audacious Philadelphia 82 68 t 83 64 pc Havana 89 74 t 87 73 t 52 Skater Rippon City Hi Lo W Hi Lo W offstage, say 51 Mornings: Abbr. 18 “That’s hilarious!” Phoenix 106 83 s 95 78 pc Hong Kong 88 78 t 89 79 t 32 Corp. honchos 53 Give a hoot Anchorage 58 49 c 57 47 pc Pittsburgh 82 62 c 80 61 pc Istanbul 78 66 pc 77 69 s 11 Van fuel 52 Oft-injured knee 23 Furrow Atlanta 90 72 s 90 72 s Portland, Maine 74 56 r 65 50 pc Jakarta 93 77 pc 92 76 t 33 Start for angle part, for short 54 Minnesota’s Austin 92 70 pc 92 72 s Portland, Ore. 72 48 pc 70 53 pc Jerusalem 83 66 s 83 66 s 14 The Bruins’ sch. or cycle 24 “___ la vie!” WNBA team Baltimore 82 67 t 82 64 s Sacramento 79 52 s 89 55 s Johannesburg 87 59 s 89 53 s 55 Ballpoint fill Boise 80 49 pc 74 46 s St. Louis 94 72 s 95 74 s London 74 61 pc 73 57 pc 15 Martin of 36 •Got good vibes 25 Capital between 57 Timber tool Boston 75 61 r 66 58 pc Salt Lake City 88 55 s 80 49 s Madrid 85 61 pc 89 63 s SCTV on the first date, 56 What this puzzle Philadelphia and Burlington 80 54 c 68 51 pc San Francisco 66 53 pc 71 53 pc Manila 90 77 t 88 78 t say is celebrating, New York 58 What a cow Charlotte 87 68 s 87 68 s Santa Fe 89 57 s 85 55 t Melbourne 68 43 pc 59 42 sh 16 Gallery display judging by what’s chews Chicago 84 66 t 83 72 r Seattle 67 48 pc 66 54 pc Mexico City 72 56 t 74 57 t 40 Hand-based 26 Immense time • been “eaten” by Cleveland 81 65 s 78 67 pc Sioux Falls 71 63 t 76 62 r Milan 81 64 t 83 65 pc 17 Came down communication periods 59 Ringside cheer Dallas 94 76 s 92 74 s Wash., D.C. 81 70 t 83 66 s Moscow 61 48 pc 68 54 pc with something the starred Denver 92 62 s 85 58 s Mumbai 89 77 pc 89 79 pc sys. answers 27 Detective’s job 60 Mariner’s milieu Detroit 83 62 pc 77 67 pc International Paris 80 59 t 79 58 s 19 Nay negator Honolulu 88 75 pc 90 76 s Rio de Janeiro 83 71 c 84 74 s 41 Sugar Previous Puzzle’s Solution Today Tomorrow 61 Promoter’s cut Houston 94 74 pc 91 74 s Riyadh 107 81 s 105 82 s 20 Soccer player’s swarmers City Hi Lo W Hi Lo W OAF ALMS GASBAG Indianapolis 88 69 s 88 70 pc Rome 79 65 t 80 66 pc favorite cereal? 62 Rejoices RCA SEAM ESTATE Kansas City 90 72 s 91 74 s Amsterdam 73 58 pc 73 59 s San Juan 89 78 pc 89 78 sh 42 Bicolor marine CH I CKENOFTHESEA Las Vegas 100 73 s 98 73 s Athens 83 68 pc 81 66 s Seoul 79 64 pc 77 65 pc 21 Pal in Provence fauna 63 Merit SER I F EGOS WEAR Little Rock 93 73 s 93 72 pc Baghdad 110 81 s 110 80 s Shanghai 87 78 t 90 78 t STOAT RUN STS 43 “On it” 64 Dime prez GOFERS KAPOW Los Angeles 81 62 pc 82 64 pc Bangkok 88 77 t 85 76 t Singapore 86 78 c 86 77 c 22 Recess ASA I SAY MAYAS Miami 89 78 pc 90 78 pc Beijing 79 61 c 77 62 pc Sydney 77 59 s 79 51 s • SH I POFTHEDESERT Milwaukee 71 62 t 72 63 r Berlin 83 60 s 81 63 pc Taipei City 99 78 pc 99 78 s 24 Do the 46 Not narrow 65 Late-night flight PARED ALDO AGE Minneapolis 72 61 sh 70 62 r Brussels 77 59 pc 76 59 s Tokyo 7968sh7768r navigator’s job ZORRO JOBHOP 47 •“Who’d’ve 66 Visa competitor, OCT MEL SOBER Nashville 91 70 s 92 71 s Buenos Aires 75 53 t 68 47 s Toronto 7956pc6959s 28 “That is to say...” thunk it?” for short SHOE D I SC TR I CK New Orleans 94 77 pc 92 76 t Dubai 106 89 s 103 88 s Vancouver 62 49 c 62 51 pc K I NGOFTHE JUNGLE

New York City 78 68 r 77 63 pc Dublin 67 51 t 62 46 c Warsaw 7957pc8259pc s ALKAL I ONUS HUE Oklahoma City 89 71 s 89 71 s Edinburgh 64 49 r 60 45 r Zurich 78 54 pc 79 55 pc Solve this puzzle online and discuss it at WSJ.com/Puzzles. READER PETE TEN THE WALL STREET JOURNAL. Tuesday, September 18, 2018 | A15 LIFE & ARTS

and tender, “Zéro de conduite” was quickly banned. Its executive pro- ducer, Jacques-Louis Nounez, then gave Vigo a script that promised to be less risky, a story on a popular theme of river life. With contribu- tions from a loyal team of friends and collaborators—including cine- matography by Kaufman and music by Maurice Jaubert—Vigo trans- formed this banal material into a sublime depiction of love, erotic attraction, friendship and the mys- teries of daily life. From the film’s opening, when poker-faced villagers follow Jean and his bride from a church to the barge, “L’Atalante” is riveting. Dasté is believably ardent and im- pulsive as Jean, as is Parlo as his adventurous bride, Juliette. After they first embrace on the barge, Juliette restlessly walks along it— her dress glowing against the darkening sky—before Jean fol- lows her and gathers her in his arms. Later, when disagreements lead to a painful night apart, a montage of poetic shots breathtak- ingly captures the separated lov- ers’ yearning for each other. Michel Simon brilliantly brings to life the eccentric first mate Père Jules, who has filled the barge with cats and his cabin with a sur- real array of junk and treasures. Juliette marvels at his jam-packed lair, a world far removed from con- ventional village life. Vigo and his

CLOCKWISE FROM TOP: FILMcrew FORUM (2); BRITISH FILM INSTITUTE even included a pair of hu- man hands in a jar, which Père CULTURAL COMMENTARY Jules claims belonged to a de- parted friend. Although Juliette’s connection with the earthy sailor piques Jean’s jealousy, when Père Bottomless Cinematic Magic Jules later helps to reunite the lov- ers, love and freedom triumph. Vigo enthusiasts shouldn’t miss “Tournage d’hiver” (“Winter Shooting,” BY KRISTIN M. JONES 2017), in which Mr. Eisenschitz has elegantly IN ONE OF THE MOST exquisite edited newly scenes in Jean Vigo’s only feature- restored length film, “L’Atalante” (1934), a rushes and bargeman (Jean Dasté) dives into a outtakes from river and sees the ghostly figure “L’Atalante” and smiling face of his beloved together with (Dita Parlo), her veil waving in the illuminating waterasitwasblownbythewind narration. His on their wedding night. Vigo’s ca- commentary reer was as brief as it was daz- captures the zling—he died of tuberculosis at painstaking age 29, shortly after the film’s re- care and deft lease. His work was neglected after improvisation his death, but when it was later re- Vigo and his discovered, it electrified the Clockwise from left: A scene from collaborators brought to creating French New Wave. His influence Jean Vigo’s ‘Zéro de conduite’ (1933); this jewel of the filmmaker’s brief endures in the work of many youn- Dita Parlo and Jean Dasté in Vigo’s oeuvre. The material also gives a ger auteurs. ‘L’Atalante’ (1934); Michel Simon in sense of the harsh conditions un- Presenting new digital restora- ‘L’Atalante’ der which they worked—including tions of all of Vigo’s work, “The location shooting in bitter winter Complete Jean Vigo” opens at New weather—and which exacerbated York’s Film Forum on Friday. The Vigo’s work, including his most the director’s frail health. program includes a “director’s cut” çaise and the Film Foundation. used funds from his father-in-law personal film, the surreal satire In “Tournage d’hiver,” Mr. of “Zéro de conduite” and rare Vigo films will also travel to the to make “À propos de Nice” (1930), “Zéro de conduite” (1933), in Eisenschitz notes Kaufman’s recol- rushes and outtakes from “L’Atal- Cleveland Institute of Art Cinema- with the talented Boris Kaufman. A which students stage an uprising lection that they worked with ev- ante” and “Zéro de conduite.” theque, the Nuart Theatre in Los witty, subversive, visually dynamic at a sinister boarding school. The erything, including the sun, fog, “L’Atalante” was disastrously recut Angeles and the UC Berkeley Art city portrait, it bears affinities to influence of Vigo’s story of youth- snow and night. The gift of “L’Atal- before its initial release and has Museum and Pacific Film Archive. Soviet films such as “Man With a ful rebellion can be seen in films ante” is that with every viewing it undergone several restorations The creative freedom that fueled Movie Camera” (1929) by Dziga including François Truffaut’s “The makes us see the world—and the over the years. It was restored to a Vigo’s work had a powerful Vertov, Kaufman’s brother. Vigo’s 400 Blows” (1959) and Lindsay An- medium’s possibilities—anew. version close to the director’s orig- source—he was the child of anar- short “Taris” (1931), an exuberant derson’s “If....” (1968). The new These restorations bring us an- inal vision through the work of chists. His father, a journalist who tribute to a champion swimmer— version screening at Film Forum other step closer to a film that is film scholar Bernard Eisenschitz took the name Miguel Almereyda, commissioned by the filmmaker incorporates five minutes of re- an inexhaustible source of cine- and Vigo’s daughter, Luce Vigo. was found strangled in prison in Germaine Dulac—ends with Taris, cently rediscovered footage and matic magic. The new digital restorations were 1917. Vigo began his filmmaking ca- wearing a coat and bowler hat, omits intertitles that have ap- carried out by Gaumont in associa- reer in Nice, where he settled with seeming to walk away on water. peared in some prints. Ms. Jones writes about film and tion with the Cinémathèque fran- his wife, Elisabeth Lozinska. He Playfulness surfaces in all of As scathing as it is effervescent culture for the Journal.

MUSIC REVIEW A MASTER INTERPRETS HIMSELF

BY JOSEPH HOROWITZ mandy’s premiere performance with a soul-baring even more private than the Philadelphia Orchestra in January his piano-rehearsal with Ormandy. In 1941. This turned out to be no morsel, terms of his creative odyssey—his exile ONE OF THE saddest and most paradoxical but 26 minutes of a 35-minute compo- and accommodation in a strange land— artistic exiles of the 20th century was Sergei sition. And it’s now embedded in a it is nothing less than a closing of the Rachmaninoff, who fled the Russian Revolu- three-CD Marston set titled “Rachma- circle. tion and wound up in New York and Los An- ninoff Plays Symphonic Dances.” The How does Rachmaninoff himself per- geles, in equal measure celebrated and ob- result is one of the most searing lis- form this secret passage, the meaning scure. tening experiences in the history of re- of which was his alone? Very slowly, Rachmaninoff (1873-1943) left Moscow a corded sound. lingeringly. Even more affecting is his composer and conductor of high conse- Most of the best piano recordings treatment of the movement’s second quence who also played the piano. Yet in are made in concert. They’re not as subject, a long saxophone melody he America he barely conducted and his compo- perfect as studio products, but by and invests with a heaving surge and ebb of sitional output plummeted. To earn a living, large they’re more spontaneous, more feeling, imparting a trembling under- he turned himself into a keyboard virtuoso of intense, more creative. Vladimir Horo- tow of anguish, of memories faraway singular fame and attainment—a late em- witz, an intimate friend, claimed that and yet unresolved. The second move- bodiment of the heroic Romantic piano lin- only one of Rachmaninoff’s commer- ment waltz, under Rachmaninoff’s fin- eage beginning with Franz Liszt. Offstage, he cial recordings—that of the second gers, is an essay in macabre shadow- retained a lonely Russian home and Russian movement of his own First Concerto, play. The final dance is primal. The customs. His severe crewcut and gimlet eyes recorded in 1939-40—gave a fair im- work emerges as an iconic leavetaking disclosed little to the world at large. His per- pression. If you listen to that record- as bittersweet as any Mahler Abschied. sonal poise was awesome and implacable. ing, you’ll easily ascertain what Horo- I own a 10-volume 1954 edition of Rachmaninoff’s privacy took other forms. witz was talking about—it’s “Grove’s Dictionary of Music” that al- He refused permission to have his concerts untethered. lots to “Rakhmaninov” less than a broadcast, effectively preventing any docu- As privately imparted to Ormandy, page. It contains the sentence: “The mentation of what he sounded like in live Rachmaninoff’s impromptu solo-piano enormous popular success some few of performance. Instead, he recorded exten- rendering of his “Symphonic Dances” [his] works had in his lifetime is not sively for RCA. But, absent the oxygen a documents roaring cataracts of sound, likely to last, and musicians never re- body of listeners can activate, those readings massive chording, and pounding ac- garded it with much favour.” Today are as celebrated for their emotional control cents powered by a demonic thrust CORBIS/GETTY IMAGES that sentiment is as forgettable as as for their sovereign interpretive mastery. the likes of which no studio environ- Composer and pianist Sergei Rachmaninoff c. 1920s Rachmaninoff is imperishable. They enshrine kaleidoscopic miracles of ment has ever fostered. Rachmani- The little box containing these Rach- color and texture wedded to a vice-like com- noff’s humbling presence, re-encountered, is comes in the first movement coda, which maninoff memories within memories in- mand of musical structure. But the cap re- gigantic, cyclopean. cites and pacifies the “vengeance” motto of cludes other rarities. I cannot imagine a bet- mains on the bottle. And there is more: the piece itself; it is the confessional First Symphony, a youthful ter introduction to this artist at his true No longer. A decade ago, a researcher was Rachmaninoff’s valedictory. Summoning his effusion Rachmaninoff discarded following worth. It stands as a rebuke to the slickness browsing a collection left by the conductor waning creative energies in this last major its disastrous 1897 premiere. It is music as that often passes for Rachmaninoff interpre- Eugene Ormandy to the University of Penn- work, he fashioned his musical testament. naked as the nostalgic Rachmaninoff of the tation nowadays. More than a lost art, it doc- sylvania—and read: “33 1/3:12/21/40: Sym- The dances originally bore titles: “Midday,” Second Piano Concerto is decorous: a baring uments a lost world. phonic Dances...Rachmaninoff in person play- Twilight,” “Midnight.” These are stations of of the soul. The First Symphony was com- ing the piano.” That is: Ormandy had life. The finale ends in a blaze of glory; near pletely unknown in 1940 (only in 1944 was a Mr. Horowitz’s books include “Artists in privately recorded Rachmaninoff playing the close, Rachmaninoff inscribed: “Alliluya.” set of parts discovered). And so Rachmani- Exile,” a study of immigrants in the through his “Symphonic Dances” prior to Or- But the work’s most poignant moment noff’s allusion in the “Symphonic Dances” is American performing arts. A16 | Tuesday, September 18, 2018 THE WALL STREET JOURNAL. SPORTS

FOOTBALL An Un-American New Fad: Ties

With the Packers-Vikings game ending 29-29 this past weekend, the NFL had more draws than the English Premier League

BY JOSHUA ROBINSON AND ANDREW BEATON

THE NFL IS DEVELOPING a dis- turbing new habit—one that is strange, uncomfortable, and very…European. Football is now being forced to reckon with the tie. As Green Bay and Minnesota played out a 29-29 draw at Lam- beau Field, the NFL was aghast at its second tie in as many weeks. In fact, with one tie this weekend, the NFL had more standoffs than the English Premier League. The NFL does not like this. “It’s not losing,” Vikings re- ceiver Stefon Diggs said, “but it’s damn sure not winning.” Two ties in two weeks may be a random aberration, but NFL teams—and fans—may need to get used to it. Ahead of last season, the league slashed overtime from 15 minutes to 10. Previously, in 2012, the league had changed the rules so that both teams would get the ball unless the receiving team scores a touchdown on the open- ing possession. But ties in football aren’t nearly as common as they are in soccer. Despite the rule changes, there weren’t any in the NFL last season,

and they happen so infrequently MIKE ROEMER/ASSOCIATED PRESS that it’s awkward to even to look at Minnesota Vikings kicker Daniel Carlson reacts after missing a field goal in the final seconds of overtime against the Green Bay Packers on Sunday. a team’s record that features a gro- tesque third column. It confuses riods—the record of six has stood its peace with the idea of a hard- their games end with the score at the outcome: a tie game.” fans who prefer a result, even one for more than 60 years. And base- fought battle that yields equal dis- knotted up. And in some sense, Steelers coach Mike Tomlin was they don’t like, and leaves players ball will play extra inning after ex- satisfaction. In the Premier League they should embrace deadlocks equally miffed. “It’s an awkward emotionally disoriented. tra inning in front of near empty last season, more than a quarter of even more than soccer teams. Ties, feeling after a game like that. You “I don’t know what to feel after stands theoretically forever. all matches ended in draws, with in football, are functionally half a don’t know what to feel or to say a tie,” said Vikings quarterback In 2009, a Connecticut-Syracuse 99 occurring over the 10-month win—which makes them more or think.” Kirk Cousins. college basketball game went to campaign. valuable than the one point most Some players showed signs of Americans love to look down on six overtimes. It took so long that With three points awarded for a soccer leagues award. acceptance. Aaron Rodgers, a self- soccer for its willingness to recog- it felt like college football, which, victory and one for a tie, a stale- If there’s any team that should styled fan of England’s Manchester nize that sometimes two teams by the way, eliminated ties a cou- mate can still give a team some- pop champagne after a draw it’s City, noted it’s “better to be stand- can’t settle the score. They are so ple of decades ago because this thing positive to cling to. For an the Browns. That’s because the ing here with a T instead of an L.” repulsed by the concept of saying most distinctly American breed of underdog, it might even make the Browns lost every single game last And Vikings coach Mike Zimmer at that neither side won that the fans abhorred the very concept. whole journey worthwhile. season and all but one the year be- least had the clarity to identify the most common analogy is “kissing Even soccer, during its early “An away point in the Premier fore that. Then they tied the Pitts- difference between losing and your sister.” So most American forays on the American pro sports League is always good,” David Wag- burgh Steelers, annually one of the other results: “It’s better than a sports are prepared to go to ab- scene, recognized that ties might ner, manager of struggling Hud- best teams in the league, during loss, obviously.” surd lengths to avoid ties. be an issue. The North American dersfield Town, said after a recent Week 1 for Cleveland’s best start But it’s mostly as foreign as The NHL abolished ties follow- Soccer League banished ties to draw on the road at Everton. “It’s a to a season in more than a decade. meat pies. The Browns’ Jackson ing the 2003-04 season and now oblivion in the 1970s and replaced deserved point due to our defen- Browns coach Hue Jackson re- was asked if there’s any consola- uses overtime and shootouts to them with penalty shootouts and sive organization and the effort fused to see it as anything but a tion that Cleveland left the field determine a winner. The NBA has eventually hockey-style shootouts, from the players in this game was frustration. There was no solace in with a tie and not a loss. He had a so much scoring that a winner even for regular-season games. great. They worked their socks off.” taking anything from this result. curt reply. emerges with enough overtime pe- Europe, however, long ago made NFL teams aren’t giddy after “Obviously,” he said, “disappointed “No.”

Tooele County, Utah CYCLING | By Jason Gay “NOW WHAT?” Shea Holbrook shouted. “Now what do we do?” The 28-year-old race THE BICYCLIST car driver from Florida burst into laughter. She knew it wasgoingtobetoughtotopthe madness she’d just experienced. WHO HIT 184 MPH Moments before, Holbrook had driven a rattling red dragster 183.9 miles per hour across the transfix- ing moonscape of the Bonneville Salt Flats…with a bicycle trailing directly behind. Denise Mueller-Korenek shattered a Atop the bicycle was Denise land speed record on the Bonneville Mueller-Korenek—a 45-year-old Salt Flats in Utah. Above, Mueller- former junior cycling champion, Korenek, right, with Shea Holbrook. home security company CEO and mother of three from Valley Cen- speeds, air rushing off the vehicle ter, Calif.—and now the holder of can also create an air pocket that the land speed world record for pushes the rider forward—a phe- motor-paced cycling. nomenon known as the Von Kar- One-hundred-and-eighty-three- man effect, after the Hungarian point-nine miles per hour. On a physicist Theodore von Kármán. bike. The Hand of God, is how Mueller No cyclist has gone as fast on describes it. She felt it in 2016. And their own power as Mueller-Kore- in 2018, she felt it even stronger. nek went in the late afternoon of Mueller-Konorek was coached Sunday, Sept 16. by John Howard, the 71-year-old I saw it with my own eyes, but American cycling legend and it still feels so wild, not to mention Olympian who at one point held dangerous—a throwback to the the land speed record himself at daredevil stuntcraft of prior eras. 152 mph. Howard coached Mueller- “Now I know how Evel Knievel Korenek when she was an up-and- felt,” a beaming Mueller-Korenek coming teenager, then reunited said. with her later in life when Muel- The motor-paced cycling land ler-Korenek began competing

speed record is both an eccentric ANDRIA CHAMBERLIN FOR THE WALL STREET JOURNAL (2) again. It was Howard who first mark and true combined effort. suggested his former protégé take Trust is critical. In the record-set- greeted his mother at the finish 60-tooth chainrings which work in charge, she said—and miraculously on the speed record. ting run, Holbrook towed Mueller- line and was the first to tell her combination with a 12-tooth cog, escaped serious injury. “This time, it all came to- Korenek close to the two-mile she had broken the record. allowing Mueller to achieve up to Even as Team Speed reached gether,” Howard said. “It was the mark of the five-mile salt flats “She had no clue,” Daniel said. 130 feet of travel on a single pedal the flats, problems persisted. The culmination of all the work and course, hitting a speed around 150 “She was kind of in shock.” stroke. The unusual setup is neces- aging dragster—the same car energy.” mph. Then Mueller-Korenek re- Mueller-Korenek’s historic run— sary to keep the bike accelerating Rompelberg used in 1995—proved Back in the pits, champagne ar- leased her cable tether, pedaling which happened on the same day at speeds far beyond 100 mph. finicky. A leaky tire needed repair. rived. Plastic red cups were raised. the final three miles on her own that distance runner Eliud Kip- Mueller-Korenek and Holbrook High winds wiped away an at- Team bike mechanic Chris Garcia power, but tucked into the drag- choge took more than a minute off had competed on the salt flats tempt on Saturday afternoon. asked everyone to sign his Project ster’s slipstream. the marathon world record, finish- once before, in 2016, when Muel- After their first Sunday attempt Speed T-shirt. Mueller-Korenek As Holbrook continued to accel- ing at 2:01:39 in Berlin—took place ler-Korenek set a women’s mark of maxed out at 155 mph, Mueller-Ko- was asked what crazy goal she erate, Mueller-Korenek hit 183.9 at World of Speed, a four-day rally 147.7 mph. But mechanical issues renek and Holbrook agreed they wanted to chase next. mph, shattering the prior world on the flats that features every- and weather had cut short their needed to go faster out of the “No, no, no, NO!” Mueller-Kore- record of 167 mph set by Dutch cy- thing from motorcycles to muscle attempt to surpass Rompelberg’s gate—and push the limits of their nek said, waving off the question. clist Fred Rompelberg in 1995. cars to streamliners capable of overall record. dragster-bike battery. “World record for margaritas,” “I’m speechless,” Mueller-Kore- surpassing 450 mph. Mueller-Korenek was eager to “I wasn’t going to leave with re- said her husband. nek said. “It hasn’t hit me yet.” Mueller-Korenek’s operation, return to the salt, but her follow- grets,” said Holbrook, who ordi- She’d earned any celebration Still in her red racing suit, known as “Team Speed,” was the up attempt felt snakebit at times. narily races Lamborghinis in the she wanted. The unthinkable had Mueller-Korenek hugged her cow- event’s biggest curiosity. In February 2017 she suffered a Super Trofeo North America se- been achieved. When the timing boy hat-wearing husband, Chris For days, spectators crowded crash while training and broke a ries. When Mueller-Korenek re- station confirmed the 183.9 mph Korenek, whom she’d met and around Mueller-Korenek’s custom shoulder blade. Later in the year leased her tether, Holbrook pushed mark, Mueller-Korenek reminded married in the prior year, and had bicycle, itself a marvel of engineer- she accidentally shot herself in the the dragster’s pedal to the floor. Holbrook: “There were people who played a key role in her record-set- ing. Equipped with motorcycle leg (!) at a competitive shooting Riding a bicycle in the slip- didn’t believe we could do it.” ting effort. She hugged her 18- wheels, the carbon fiber bike is event—a faulty after-market prod- stream of a vehicle has obvious “You did it!” Holbrook exclaimed. year-old son, Daniel, who had long and low and features a pair of uct caused her to handgun to dis- wind-cutting benefits. At high They did. THE WALL STREET JOURNAL. Tuesday, September 18, 2018 | A17 OPINION

It’s Susan Collins’s Moment BOOKSHELF | By Sam Kean If Brett Ka- there. Absent corroborating publican Susan Collins told the In remarks to reporters Poor Richard vanaugh were testimony, even the Federal New York Times that she con- Monday afternoon, Ms. Collins on trial for Bureau of Investigation would siders the allegations of sexual called for accuser and accused sexual assault, have no way to reveal much assault serious and wants Ms. to testify before the Judiciary all he’d need more. Ford interviewed to get her Committee under oath. Not Sows His Oats do is demon- So here we are, just days whole story. Just as telling, long after that, the Judiciary MAIN strate reason- before what should have been she made clear she finds the Committee scheduled a one- STREET able doubt a Thursday vote in the Senate low and the last-minute nature day hearing Monday on the is- Young Benjamin Franklin By William about the Judiciary Committee. Since of the way the Democrats han- sue. Ms. Ford and Judge Ka- By Nick Bunker McGurn charges being Ms. Ford’s name became pub- dled the charges fishy. vanaugh will each be heard. made against lic, one member of that com- “If they believed Professor This is a risky accommoda- (Knopf, 445 pages, $30) him. But a Re- mittee, Jeff Flake, the retiring Ford, why didn’t they surface tion, because the media and publican nominee to the Su- Republican from Arizona, an- this information earlier so that Democrats won’t be satisfied he Autobiography of Benjamin Franklin” is one of preme Court is tried in the me- nounced he wouldn’t feel com- he could be questioned about no matter what Republicans ‘T the most celebrated books in U.S. history. By turns dia, where Mr. Kavanaugh must fortable going ahead with a do. But if it provides the space frank, funny and wise, it chronicles how the young now do the impossible: prove vote without a fuller airing of GOP senators need to move Franklin persevered in a world beset on all sides with an assault never happened. Ms. Ford’s complaint. In a Failing to treat ahead to confirm Judge Ka- temptation and iniquity and emerged as one of the Founding Christine Blasey Ford alleges committee of 11 Republicans vanaugh, it may be the least Fathers of a vibrant new nation. As long as there’s an that at a high-school party 36 and 10 Democrats, Mr. Flake Kavanaugh fairly damaging accommodation. The America, the “Autobiography” will be part of our canon. years ago, 17-year-old Brett Ka- would give the Democrats the would give us a nasty test is whether the hearing The book is also, as the British historian Nick Bunker vanaugh pinned her to a bed, majority they need to stall a serves the purpose of keeping demonstrates in his exhaustive “Young Benjamin Franklin,” tried to remove her clothes, vote. #MeToo precedent. confirmation process close to something of a fraud. Despite his reputation for probity and and covered her mouth so she Republicans Bob Corker, schedule, or whether it will be straight-dealing, Franklin twisted or censored key episodes couldn’t scream. Ms. Ford, now the retiring senator from Ten- turn into what the Democrats in his autobiography, and his “public image,” Mr. Bunker a professor at California’s Palo nessee, and Alaska’s Lisa it?” Ms. Collins said. “And if are really pushing for: the first notes, “was very different from the picture we now have of Alto University, says she was Murkowski have also come out they didn’t believe her and of many delaying actions to him.” Mr. Bunker certainly doesn’t set out to chop Franklin able to flee the room only after against holding a vote until chose to withhold the informa- come—what one Judiciary down; he greatly admires the man. But the Franklin that a friend of Mr. Kavanaugh’s, Ms. Ford can be heard. They tion, why did they decide at Committee staffer describes as emerges here is often bullheaded and foolish—even a cad. Mark Judge, jumped on top of are joined by Democratic in- the 11th hour to release it? It is “Borking 2.0.” Above all, he’s more them and they all tumbled off cumbents facing tight election really not fair to either of them By all means let’s hear dynamic and real than his the bed. Ms. Ford further says races in states carried by Don- the way it was handled.” what Ms. Ford has to say. But homespun alias Poor she didn’t tell anyone what ald Trump: Joe Donnelly Ms. Collins’s complaints let us hope Ms. Collins insists Richard ever could be. happened at the time. (Ind.), Heidi Heitkamp (N.D.) about fairness aren’t easily dis- it not be at the expense of Glimpsing that Franklin Judge Kavanaugh’s denial is and Joe Manchin (W.Va.). missed. She’s a strong advocate fairness to Judge Kavanaugh. requires some patience, categorical: “I have never done Though Democrats would love for women’s rights; she an- Because right now the effort however. Mr. Bunker opens the anything like what the accuser to kill the Kavanaugh nomina- nounced in 2016 she wouldn’t to put off his confirmation book with a deep, deep plunge describes—to her or anyone,” tion, the more practical aim is vote for Donald Trump; and she votes seems aimed at estab- into the religious and political he said in a statement Monday. a lengthy delay that would hasn’t been afraid to buck her lishing an odious, new post- controversies of 17th-century Mr. Judge likewise denies it all. spare these Democrats a tough party, as when she voted hearing precedent, whereby a England, the milieu in which “It’s just absolutely nuts,” he vote before the November against ObamaCare repeal. single, inconclusive and un- Franklin’s ancestors were estab- told the Weekly Standard. “I midterms. She’s also firmly pro-choice but corroborated #MeToo accusa- lishing themselves as craftsmen never saw Brett act that way.” But there’s another senator recently stood up to a nasty tion can upend all Senate and merchants. Franklin (1706-90) The truth is, no one knows who may hold the key to crowdfunding effort to bribe norms and leave a man with himself isn’t born until page 56. what went on in that Mary- whether the GOP hangs to- her into voting against Judge an otherwise sterling reputa- Even after that, when the action shifts to land bedroom at that party— gether or heads for the tall Kavanaugh over claims he tion twisting in the wind. colonial Boston and Philadelphia, Mr. Bunker keeps veering or if Mr. Kavanaugh was even grass. On Sunday Maine Re- would overturn Roe v. Wade. Write to [email protected]. off into minor skirmishes and long-forgotten eccentrics. One can’t fault the impressive research, but one is occasionally impatient to get back to Franklin himself, to see what new trouble the youth would stumble into next. Imperialism Will Be Dangerous for China And there were troubles aplenty. In 1723 a silversmith entrusted the 17-year-old Franklin with carrying a large cash China’s real Ironically, this is exactly for markets and infrastructure loans, countries across Asia payment (£35) from one city to another. But along the way problem isn’t where “communist” China projects to keep China Inc. sol- and Africa started rereading Franklin met a friend of his, a drunkard down on his luck. the so-called stands today. Its home market vent. In a 2014 article in the the fine print of their con- With remarkably little persuading, Franklin began lending the Thucydides is glutted by excess manufac- South China Morning Post, a tracts, muttering about un- funds to the man, who of course squandered everything. trap, which turing and construction ca- Chinese official said one objec- equal treaties. Franklin’s love life was messy, too. He tried clumsily to holds that a pacity created through de- tive of the BRI is the “transfer Meanwhile, China’s mer- seduce another friend’s lover, ruining the friendship. More GLOBAL rising power cades of subsidies and of overcapacity overseas.” Call cantilist trade policies—the seriously, he fathered a child with one woman while courting VIEW like China runaway lending. Increasingly, it “imperialism with Chinese subsidies, the intellectual- a second—his future wife. “Notoriously, in his memoirs,” Mr. By Walter must clash neither North America, Eu- characteristics.” property theft, and the coor- Bunker writes, “Franklin passed over the episode in complete Russell Mead with an es- rope nor Japan is willing or But as Lenin observed a dinated national efforts to silence.” Franklin’s behavior, he adds, “was not the path of tablished able to purchase the steel, century ago, the attempt to identify new target industries goodness that Franklin had read about in books.” power like aluminum and concrete China export overcapacity to avoid and make China dominant in Franklin made opportunistic professional choices as well, the U.S., the way ancient Ath- creates. Nor can China’s mas- chaos at home can lead to them—are keeping Europe choices that seem dubious in retrospect. As printers, he ens clashed with Sparta. It sively oversized infrastructure conflict abroad. He predicted and Japan in Washington’s and his brother benefited financially from the slave trade, was Lenin, not Thucydides, industry find enough projects rival empires would clash embrace despite their dislike running ads for auctions and printing notices to help who foresaw the challenge the to keep it busy. Its rulers have of President Trump. capture runaways. The brothers also profited off the People’s Republic is now fac- responded by attempting to China’s chief problem isn’t colonial version of an antivaccination campaign, giving a ing: He called it imperialism create a “soft” empire in Asia Beijing risks blowback U.S. resistance to its rise. It mouthpiece to quack doctors who denounced inoculations and said it led to economic and Africa through the Belt is that the internal dynamics against smallpox. Such opinions were popular, and while collapse and war. and Road Initiative. as it exports surplus of its economic system force neither brother really opposed inoculation, they were Lenin defined imperialism Many analysts hoped that economic capacity to its rulers to choose between happy to promote that viewpoint for a quick buck. as a capitalist country’s at- when China’s economy ma- putting China through a tempt to find markets and tured, the country would Africa and Asia. wrenching and destabilizing investment opportunities come to look more like the economic adjustment, or else Later famous for his probity, the young Franklin abroad when its domestic U.S., Europe and Japan. A pursuing an expansionist de- squandered money, mocked a grieving father and economy is awash with ex- large, affluent middle class over markets, but other dy- velopment policy that would cess capital and production would buy enough goods and namics also make this strat- lead to conflict and isolation impregnated one woman while wooing another. capacity. Unless capitalist services to keep industry egy hazardous. Nationalist abroad. Lenin thought that powers can keep finding new humming. A government wel- politicians resist “develop- capitalist countries in markets abroad to soak up fare state would ease the ment” projects that saddle China’s position were Disgracefully, Franklin then mocked preacher Cotton the surplus, Lenin theorized, transition to a middle-class their countries with huge doomed to a series of wars Mather—a vociferous supporter of inoculation—after they would face an economic society. debts to the imperialist and revolutions. Mather lost a daughter and granddaughter to what might implosion, throwing millions That future is now out of power. As a result, imperial- Fortunately, Lenin was have been smallpox. One of Franklin’s most beloved out of work, bankrupting reach, key Chinese officials ism is a road to ruin. wrong. Seventy years of pseudonyms was Silence Dogood, and today we remember thousands of companies and seem to believe. Too many China’s problems today Western history since World these columns for their witty exposure of hypocrisy and wrecking their financial sys- powerful interest groups have are following this pattern. War II show that with the bawdy double entendres (“Women are the prime cause of a tems. This would unleash too much of a stake in the sta- Pakistan, the largest recipi- right economic policies, a mix great many male enormities”). But Franklin actually chose revolutionary forces threat- tus quo for Beijing’s policy ent of BRI financing, thinks of rising purchasing power the name as a sneering reference to a sermon (“The Silent ening their regimes. makers to force wrenching the terms are unfair and and international economic Sufferer”) Mather gave about his grief. Under these circumstances, changes on the Chinese econ- wants to renegotiate. Malay- integration can transcend the Eventually Franklin’s wicked pen proved his undoing in there was only one choice: omy. But absent major re- sia, the second largest BRI imperialist dynamics of the his native Boston. To be sure, he could be charming when expansion. In the “Age of Im- forms, the danger of a serious target, wants to scale back 19th and early 20th centuries. he chose and was quite versatile: He once dashed off some perialism” of the 19th and economic shock is growing. its participation since pro- But unless China can learn doggerel about the capture and beheading of Blackbeard the early-20th centuries, Euro- The Belt and Road Initiative China politicians were swept from those examples, it will pirate that proved a hit. But as an avid reader of philosophy pean powers sought to ac- was designed to sustain con- out of office. Myanmar and remain caught in the “Lenin when young, Franklin modeled his behavior after Socrates, quire colonies or dependen- tinued expansion in the ab- Nepal have canceled BRI trap” in which its strategy for “and in his boyhood,” Mr. Bunker writes, “he irritated his cies where they could market sence of serious economic re- projects. After Sri Lanka was continued domestic stability neighbors almost as much as Socrates upset the Athenians.” surplus goods and invest sur- form. Chinese merchants, forced to grant China a 99- produces an ever more pow- He eventually angered too many important people and had plus capital in massive infra- bankers and diplomats year lease on the Hamban- erful anti-China coalition to flee Boston for Philadelphia when still a teenager. structure projects. combed the developing world tota Port to repay Chinese around the world. Perhaps embarrassed by such incidents, Franklin declined to publish his “Autobiography” during his lifetime and altered certain details in it to make himself look better. For one thing, his family growing up was not as hardscrabble as Stranger Things Have Happened he implies. In later life Franklin also cloaked his militant teenage atheism in the vague mantle of Deism, which was By Larry Sleep me, I’m a college student in We honed our technique in some were long. Each driver more publicly palatable. So can we conclude from all this California trying to get to [fill Europe. The rides came much was a book to be read. I that Franklin was a hypocrite, even a scoundrel? n the 1940s and ’50s it in desired city], and I’m won- more easily if you hitched with learned a lot about human Possibly, but that would be uncharitable. While it’s easy to I wasn’t uncommon to see dering if it might be possible a young woman. It didn’t hurt nature. I learned that people denounce Franklin—or roll our eyes at his constant self- hitchhikers thumbing for a to join you if you’re heading to put a small American flag almost everywhere are kind, improvement projects—he still did many amazing things, ride. Many were military men that way.” There was always a on your backpack. Many of the generous and good; that re- especially after growing bored with the printing trade. By the with knapsacks, and they pause, but usually a “Sure, locals wanted to practice Eng- gardless of where you live, 1740s Franklin was seeking a new career, “one that made full didn’t have to wait long before why not” followed. lish, hear about the Los Ange- we all have similar likes, dis- use of all his faculties,” Mr. Bunker writes. “Not merely his getting picked up. The ’60s had les riots, or talk about surfing likes and desires; that the skill with language, but also his mechanical genius, with tools hippies and hitchers riding the and California girls. If you best things often happen and apparatus, and his powers of logical analysis.” The career roads in their Volkswagen Today’s young people made a sincere effort to speak without any plans in place; he chose was science, and his groundbreaking experiments on vans. Hitchhiking was still cool will never hitchhike— the native language, you’d and that life is a long high- electricity—he went far, far beyond flying a kite in a lightning when I made trips from Los probably get a free meal. way, and sometimes you just storm—earned Franklin world-wide renown and helped Angeles to New York and all but I did in the 1970s. There were unforgettable have to go with it—wherever launch his next career in politics. over Europe in the early ’70s. moments and people. My girl- it takes you. Even when Franklin screwed up, he usually made amends. Today, my kids can’t visualize friend (later my wife) and I My children will never He eventually paid back, with interest, the funds he let his their dad at a roadside with a Most rides turned out fine. got a ride from Calais to Paris hitchhike, and yours won’t ei- drunkard friend squander, and he raised his out-of-wedlock cardboard sign and a back- Drivers often had stories to from Bernard, a perfume ther. They will never know the son as his legitimate child after getting married. Most pack, but I was there, “heading tell, and I paid for my ride by salesman. He spoke nine lan- adventure or the mystery lurk- poignant, when Franklin’s next son, Franky, died of smallpox down the highway, looking for listening and asking questions, guages and was suave and en- ing around the next bend in in November 1736, at age 4, Franklin wrote a stirring defense adventure.” so I got quite an education on tertaining. We had a wonder- the road. But hitching was an of inoculation, however unpopular, and later went out of his My travel buddy and I of- those open roads. But conver- ful trip, and the very moment experience I’ll never forget— way to praise his onetime nemesis Mather. ten found it ineffective to sation wasn’t always the goal. at dusk when we turned onto moments when random, inno- In the end “Young Benjamin Franklin” is a useful correc- wait at the roadside with a A nice couple, Chuck and the Champs-Élysées, all of the cent encounters often took me tive to the self-hagiography of Franklin’s memoirs. And while thumb up and a smile, so for Irene, once picked up my street lights came on, and Ber- on life-changing trips down Mr. Bunker is forthright about Franklin’s moral lapses, he best results we would head to friend and me at a gas station nard smiled and said, “To- the boulevard of life. nevertheless recognizes the greatness of our oldest Founding a nearby gas station or How- in Oklahoma City. They drove night, young lovers, Paris is Father. “He was never an uncomplicated human being,” Mr. ard Johnson’s. It helped to two cars; I rode with Irene yours.” Wherever you are, Mr. Sleep is a retired presi- Bunker notes, “spared from inner conflict or from frailties. It have combed hair, clean and my buddy rode with Bernard, merci foramemory dent of Lawrence Group, a does a disservice to his memory to pretend that he was.” clothes and a pleasant de- Chuck. We both got proposi- thatlaststothisday. company providing sales and meanor. We would pick a nice tioned before we crossed into No two rides were the management training for Mr. Kean is the author, most recently, of “Caesar’s Last car and politely say, “Excuse Missouri. same. Some were short and corporations. Breath: Decoding the Secrets of the Air Around Us.” A18 | Tuesday, September 18, 2018 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR The #MeToo Kavanaugh Ambush Present Economic Success Has Many Fathers he woman accusing Brett Kavanaugh of highly irregular and transparently political. In “Why the ‘Obama Recovery’ investment and employment worked a drunken assault when both were teen- The ranking Democrat on the Judiciary Com- Took So Long” (op-ed, Sept. 11), Pe- against a steady job recovery. Even T ter J. Ferrara leaves out a few de- so, the unemployment rate fell be- agers has now come forward publicly, mittee knew about Ms. Ford’s accusations in tails in his political versus economic low 5% by 2015. 3) The financial cri- and on Monday it caused Re- late July or early August yet analysis. It is impossible to know sis President Obama faced was publicans to delay a confirma- A story this old and kept quiet. If she took it seri- what economic activity would have highly extraordinary in depth and tion vote and schedule another unprovable can’t be ously, she had multiple oppor- been under any alternate adminis- scope and virtually assured a lon- public hearing. Yet there is no tunities to ask Judge Ka- tration after the 2008 financial cri- ger-than-usual deleveraging time. 4) way to confirm her story after allowed to delay a vanaugh or have committee sis. Three key variables are conve- The housing crash left many de- 36 years, and to let it stop Mr. staff interview the principals. niently unaddressed. There are few spairing homeowners underwater, Kavanaugh’s confirmation confirmation vote. But in that event the details economists that compare the recov- with lingering effect on their confi- would ratify what has all the would have been vetted and ery after a dramatic financial reces- dence and buying power. 5) Of at earmarks of a calculated polit- Senators would have had time sion to those resulting from typical least equally great impact was the ical ambush. to assess their credibility. supply/demand imbalances. History virtual vow by GOP congressmen to This is not to say Christine Blasey Ford isn’t Instead Ms. Feinstein waited until the day be- is clear that recoveries after a bal- block all Obama proposals, including ance-sheet meltdown take years lon- any new stimulus measures. sincere in what she remembers. In an interview fore a committee markup on the nomination to ger to normalize than their cyclical Mr. Ferrara alleges that, accord- published in the Washington Post on Sunday, release a statement that she had “information” brethren. ing to “Obama apologists,” it was Ms. Ford offered a few more details of the story about the accusation and had sent it to the FBI. Further, no other modern-era re- impossible for the economy to grow she told anonymously starting in July. She says Her statement was a political stunt. cession has coincided with the de- more than 2%. That’s another mis- she was 15 when Mr. Kavanaugh, who would She was seeking to insulate herself from liberal mographics of the baby-boom gener- statement. Many economists (in- have been 17, and a male friend pushed her into charges that she sat on the letter. Or—and this ation, close to retirement, cluding this writer) believed the a bedroom at a drinking party, held her down, seems increasingly likely given the course of intersecting a global meltdown of rate of growth could have been and pawed her until the male friend jumped on events—Senator Feinstein was holding the story such magnitude. Finally, it becomes higher, especially if Congress them both and she escaped to a bathroom until to spring at the last minute in the hope that events even harder to point fingers at a passed the $1 trillion infrastructure the two boys left the room. would play out as they have. Surely she knew that faulty U.S. policy when almost every plan Donald Trump touted later; Mr. Kavanaugh denies all this “categorically once word of the accusation was public, the press other major economy hit by the that infrastructure spending was es- global financial crisis took even lon- pecially appropriate when employ- and unequivocally,” and there is simply no way would pursue the story and Ms. Ford would be ger to recover than ours did, with ment was still low. But, at that to prove it. The only witness to the event is Mr. identified by name one way or another. many countries have not fully recov- time, such stimulus was anathema Kavanaugh’s high school male friend, Mark iii ered to date. to Republicans. Now, in order to cut Judge, who also says he recalls no such event. Democrats waited until Ms. Ford went public RICHARD J. COHEN taxes and raise military outlays, the Ms. Ford concedes she told no one about it—not to make public statements. But clearly some Margate, N.J. Trump GOP has embraced huge def- even a high school girl friend or family mem- were feeding the names of Ms. Ford and her law- icit spending with blithe disregard ber—until 2012 when she told the story as part yer to the press, and now they are piling on what Here are some of the Obama-era as to what the consequences of a of couples therapy with her husband. they hope will be an election-eve #MeToo con- headwinds Mr. Ferrara overlooks: 1) growing debt bomb may be in the The vagaries of memory are well known, all flagration. U.S. export demand was impaired by long run. IRWIN SHISHKO the more so when they emerge in the cauldron “Senator [and Judiciary Chairman] Grassley persistent weakness in the European economy. 2) A slump in oil-industry Delray Beach, Fla. of a therapy session to rescue a marriage. Ex- must postpone the vote until, at a very mini- perts know that human beings can come to be- mum, these serious and credible allegations are lieve firmly over the years that something hap- thoroughly investigated,” declared Minority pened when it never did or is based on partial Leader Chuck Schumer on Sunday. “For too long, College Rankings and What Students Retain truth. Mistaken identity is also possible. when women have made serious allegations of The Post reports that the therapist’s notes abuse, they have been ignored. That cannot hap- As a retired high-school guidance are finding a path toward a good and from 2012 say there were four male assailants, pen in this case.” counselor, I am impressed with the purposeful life? but Ms. Ford says that was a mistake. Ms. Ford His obvious political goal is to delay the con- information in your “U.S. College What percentage of a college’s also can’t recall in whose home the alleged as- firmation vote past the election, fan the #MeToo Rankings” (Journal Report, Sept. 6). graduates 10 years out report that sault took place, how she got there, or how she political furies until then, and hope that at least What concerns me is the gap in re- they feel happy and successful at got home that evening. two GOP Senators wilt under political pressure. sources between public and private what they do? How many are married colleges. A democracy needs an edu- and have started a family? How many This is simply too distant and uncorroborated If Republican Senators Jeff Flake and Bob cated public, so shouldn’t more feel a sense that their life matters in a story to warrant a new hearing or to delay a Corker think a hearing will satisfy Mr. Schumer, money be allocated by the states for their community? vote. We’ve heard from all three principals, and they are right to retire from politics. public education? When I attended a The University of Virginia, which I there are no other witnesses to call. Democrats GOP Senators should understand that the po- state university, I could rent books attended long ago, had many good will use Monday’s hearing as a political specta- litical cost of defeating Mr. Kavanaugh will likely from the university, and I attended on features, but the challenge to stu- cle to coax Mr. Kavanaugh into looking defensive include the loss of the Senate. Democrats are al- a teacher-training scholarship. Why dents carved over one of the old brick or angry, and to portray Republicans as anti- ready motivated to vote against Donald Trump, aren’t there more scholarships for entrances gave me my understanding women. Odds are it will be a circus. and if Republicans panic now their own voters professions for which we need highly of what is important in college and iii will rightly be furious. They would be letting qualified students? Why are some after graduation. It said: “Enter by The timing and details of how Ms. Ford came Democrats get away with the same dirty trick state universities cutting programs this gateway and seek the way of and departments? Why shouldn’t honor, the light of truth, the will to forward, and how her name was coaxed into they tried and failed to pull off against Clarence there be more state colleges and uni- work for men.” public view, should also raise red flags about the Thomas. versities in the Top 100? DAVID BURNS partisan motives at play. The Post says Ms. Ford It would also be a serious injustice to a man BECKY CEDERHOLM Springfield, Va. contacted the paper via a tip line in July but who has by all accounts other than Ms. Ford’s Hilton Head, S.C. wanted to remain anonymous. She then brought led a life of respect for women and the law. Ev- I am chagrined that you fail to rank her story to a Democratic official while still hop- ery #MeToo miscreant is a repeat offender. The The criteria used in your college America’s technical colleges. They edu- ing to stay anonymous. accusation against Mr. Kavanaugh is behavior rankings aren’t what matters most. cate and train our youth in sophisti- Yet she also then retained a lawyer, Debra manifested nowhere else in his life. Where are the data for questions like: cated skills that today’s world re- Katz, who has a history of Democratic activism No one, including Donald Trump, needs to at- What percentage of students com- quires. Alas, even with the good wages and spoke in public defense of Bill Clinton tack Ms. Ford. She believes what she believes. plete at least one class that gives and benefits that come with these po- against the accusations by Paula Jones. Ms. Katz This is not he said-she said. This is a case of an them a foundation in our civilization sitions, many go unfilled. Why? Ameri- and culture? What percentage say cans believe such an education is sec- urged Ms. Ford to take a polygraph test. The alleged teenage encounter, partially recalled 30 they look forward to their classes ond-rate. You would serve U.S. Post says she passed the polygraph, though a years later without corroboration, and brought most days or feel confident that they businesses and all of society better if polygraph merely shows that she believes the forward to ruin Mr. Kavanaugh’s reputation for you highlighted technical education. story she is telling. partisan purposes. CHARLES BENSONHAVER, M.D. The more relevant question is why go to such Letting an accusation that is this old, this un- Serena Advanced Neither Johns Island, S.C. lengths if Ms. Ford really wanted her name to substantiated and this procedurally irregular Women’s Rights Nor Herself stay a secret? Even this weekend she could have defeat Mr. Kavanaugh would also mean weap- It would be cheaper to send my 96- chosen to remain anonymous. These are the ac- onizing every sexual assault allegation no mat- In response to “Naomi Osaka Gets year-old mother to No. 1-ranked Har- tions of someone who was prepared to go public ter the evidence. It will tarnish the #MeToo the Last Word” (Sports, Sept. 10), vard University than to keep her in from the beginning if she had to. cause with the smear of partisanship, and it will Serena Williams wasn’t so serene the senior-living facility where she The role of Senator Dianne Feinstein is also unleash even greater polarizing furies. with her disgraceful behavior in the now resides. U.S. Open. She is just a sore loser. It JACK PLEDGER makes you long for the days of real Belleville, Ill. queens of the tennis court such as Cracking the Proxy Racket Chris Evert and Sue Barker. To use the excuse that Ms. Williams was All Sciences Must Be Based ctivist investors grab headlines, but But proxy advisory firms aren’t “indepen- fighting for women’s rights is totally On Objective Data, Process A their clout pales next to proxy advisory dent.” ISS sells consulting service to corpora- dishonest, the wrong place at the firms Glass Lewis and Institutional tions that are trying to get in its good corporate- wrong time, and she compounded As a scientist, I puzzled over the Shareholder Services (ISS). Credit to the Securi- governance graces. Glass Lewis is owned by two her sins by including her daughter in “Notable & Quotable” (Sept. 13) ex- ties and Exchange Commission for shaking up Canadian pension funds: Ontario Teachers’ Pen- her diatribe. She ruined what should cerpt from the American Sociologi- this government-enlarged duopoly. sion Plan and Alberta Investment Management have been the best day in the life of cal Association website about the Naomi Osaka, the well-deserved win- need to liberate themselves from the The SEC last Thursday took the laudable, if Corporation. ner. Ms. Williams should eat humble shackles of using the dreadful, real- overdue, step of withdrawing guidance from Not to worry, SEC staff said, these conflicts pie, admit she was wrong, apologize ity-based habit of “objectivity.” 2004 that enshrined proxy advisory firms as are kosher. The SEC’s guidance thus encouraged to the umpire and say a huge sorry Since objectivity is the heart of the stewards of corporate governance. Rescinding corporations to consult proxy firms to obtain fa- to her devoted followers. scientific method, I suggest they the guidance, the SEC said, is intended “to facili- vorable recommendations. Since the Dodd- JOHN FAIR also liberate themselves from the tate the discussion” about “the proxy voting Frank Act requires shareholder votes on CEO Castlebar, Ireland shackles of referring to their field as process, retail shareholder participation and the pay, for example, executives had a pecuniary in- a social science. They clearly reject role of proxy advisory firms.” centive to seek their advice. Unfortunately, the classy Ms. the “science” bit. Proxy firms advise institutional investors on A 2012 survey by Stanford University’s Rock Osaka will not have the last word. DALLAS WEAVER, PH.D. shareholder proposals regarding executive pay, Center for Corporate Governance, The Confer- When Ms. Williams’s immature bully- Huntington Beach, Calif. director elections, political spending and other ence Board and Nasdaq found that 72% of pub- ing tactics failed her, she then claimed she was fighting for women’s CORRECTION issues. A 2003 SEC rule required institutional in- licly traded companies consulted proxy advisory rights, thereby garnering instant sup- vestors like Fidelity or pension funds to develop firms on executive comp. A 2014 Rock Center port from the media and talking and disclose proxy-voting policies but said they study found that when ISS and corporate man- heads who will ensure Naomi Osaka’s Narendra Modi is prime minister of could satisfy their fiduciary obligation to clients agement disagreed about pay, large money man- victory always has an asterisk. India, not the president as was stated by relying on the recommendations of third par- agers voted with the proxy firm more than 95% MARK HOFFMAN in “Culling the Emerging-Market ties like ISS and Glass Lewis. The giants control of the time. Amherst, N.Y. Herd” (Review & Outlook, Sept. 14) 97% of the proxy advisory market. Meantime, an uptick in shareholder activism Since institutional investors may hold shares in conjunction with a shift toward more index- Regarding Alan M. Dershowitz’s in thousands of companies, conducting rigorous fund investing has made proxy firms more pow- “Bad Sports Don’t Deserve To Lose” Pepper ... research to ensure that each of their votes is in erful. Activist investors have been putting for- (op-ed, Sept. 14): Ms. Williams was And Salt their clients’ best interest can be costly. The rule ward more shareholder proposals on subjects losing before she went ballistic. I think she wanted to make Ms. Osaka THE WALL STREET JOURNAL thus encouraged institutional investors to farm from board diversity to climate change. These lose concentration, but Ms. Osaka out voting recommendations to ISS and Glass proposals are voted on in block by large asset showed her strength and is the Lewis, which don’t have a fiduciary obligation managers based on recommendations of ISS and champion. to shareholders. Glass Lewis. Serena was the worst possible role In 2004 the SEC issued guidance that gave Withdrawing the SEC’s 2004 guidance is the model for women, using gender, after proxy firms and companies that rely on them first step in subjecting the proxy giants to much- the fact, to explain her failure. a safe harbor. Institutional investors sometimes needed scrutiny. The House last year passed leg- JUDITH L. HOYT provide services to corporations in which they islation requiring proxy firms to disclose their Camp Hill, Pa. own shares—for instance, underwriting bonds potential conflicts of interest and methodolo- or managing employees’ pensions. But SEC staff gies for formulating recommendations. The SEC Letters intended for publication should said the “recommendations of a third party who could also impose a fiduciary obligation on be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, is in fact independent of an investment adviser proxy firms. or emailed to [email protected]. Please may cleanse the vote of the adviser’s conflict.” Corporate boards answer to shareholders, include your city and state. All letters In other words, by taking dictation from ISS or and asset managers to clients. Why are the two are subject to editing, and unpublished Glass Lewis, an institutional investor could pro- most influential voices in corporate America im- letters can be neither acknowledged nor returned. tect itself from lawsuits. mune from accountability or transparency? THE WALL STREET JOURNAL. Tuesday, September 18, 2018 | A19 OPINION Stop Bezos From Hiring A Spectral Witness Materializes By Lance Morrow that cry to heaven for vengeance. The offense alleged is not noth- Poor People? he Salem witch trials ing, by any means. It is ugly, and turned on what was called stupid more than evil, one might “spectral evidence.” That think, but trauma is subjective and By Andy Puzder T was testimony from wit- hard to parse legally. Common sense nesses—either malicious is a little hard put to know what to t’s called the Stop Bad Employers or hysterical—who claimed the ac- make of the episode, if it happened. I by Zeroing Out Subsidies Act, the cused had assumed the form of a The dust of 36 years has settled over acronym an homage to Amazon black cat or some other devilish the memory. The passage of time CEO Jeff Bezos. The bill, introduced creature and had come visiting in the sometimes causes people to forget; by Sen. Bernie Sanders and Rep. Ro night in order to torment the witness sometimes it causes them to invent Khanna, would tax corporations with with bites and scratches, or to rear- or embellish. Invention takes on more than 500 employees at 100% range the bedroom furniture, or to bright energies when its muse is pol- for every dollar their employees re- send the baby into paroxysms. itics, which is the Olympics of illu- ceive via food stamps, the school- Susannah Sheldon, aged about 18, sion. Inevitably, people will sort the lunch program, Section 8 housing testified that the defendant Sarah matter out along mostly partisan and Medicaid. Mr. Sanders calls it Good’s apparition—not the actual lines. A lot will depend upon the tes- “corporate welfare” to pay benefits Sarah Good, but her spirit, her spec- timony of Ms. Ford, who has volun-

to low-wage employees. ter—“most violently pulled down my BLOOMBERG NEWS teered to appear before the Senate But the first step on the path to head behind a chest and tied my Sen. Dianne Feinstein during Judge Kavanaugh’s confirmation hearing, Sept. 5. Judiciary Committee. If the left ex- financial self-sufficiency is finding a hands together with a whale band pects a windfall from all this in No- job. A tax on employing welfare re- and almost choked me to death.” nominee was a seeming paragon— ground screams of people being led vember, it may find itself instead the cipients would discourage employers Other witnesses blamed Good for the perfect father and husband and coach away for disrupting the proceedings. victim of a terrific backlash. from hiring them. It would increase mysterious deaths of cows or for of his daughters’ basketball teams. It seemed as if Ms. Feinstein, not lik- These are part of the 21st cen- the cost of employing such people causing a broom to fly up into an ap- He is a Roman Catholic with an Irish ing the odds of defeating Judge Ka- tury’s strange sectarian struggles. In without an offsetting increase in ple tree. name, but now the script became as vanaugh’s confirmation, had found a another Senate hearing a year ago, The judge, William Stoughton, gleefully Calvinist as a Hawthorne devilishly clever way to head it off Ms. Feinstein addressed Amy Coney admitted this nonsense into evi- tale. What imp of hell had possessed after all. Barrett, a Notre Dame law professor, Bernie Sanders’s latest dence. Hysterical fantasies had real the Kavanaugh boy? The Protestant But then the accuser materialized, about her nomination to the Seventh consequences: Sarah Good and four tale seemed to obtain subliminal ver- in the form of a 51-year-old Califor- U.S. Circuit Court of Appeals. Ms. brainstorm would make other defendants were hanged on ification against the background of nia professor of clinical psychology, Feinstein began fretting earnestly the transition from welfare July 19, 1692. Catholic sex-abuse scandals. Christine Blasey Ford. about the nominee’s Catholicism. Three hundred twenty-six years Whattomakeofitnow?Thetale “The dogma lives loud within you,” to work more difficult. later, an anonymous woman—a spec- became a lot less spectral. Still, the senator told the professor—an tral and possibly nonexistent The passage of time there had been no police report, and oddly mystical locution. woman, for all that one knew when there were no witnesses. The second But 21st-century progressivism is productivity or employee satisfac- the story emerged—accused Brett sometimes causes people boy allegedly in the room said he also a religion—a militant faith, a tion, since the extra payment would Kavanaugh of sexually assaulting her to forget, sometimes had no memory of such an incident true church in nearly all important go to the government rather than 36 years ago, when he was a high- and called the accusation “absolutely respects. It is a community of belief the employee. Companies could school student. It seemed as if the to invent or embellish. nuts.” Judge Kavanaugh flatly denied and shared values, with dogmas, avoid the tax simply by hiring peo- American constitutional process it. Her therapist’s notes from 30 heresies, sacraments and fanatics; ple not on welfare, reducing job op- might be drawn back to the neigh- years later are not objective report- with saints it reveres and devils it portunities for the people most in borhood of Salem, Mass. According Thus the constitutional process ing, merely a transcription of what abhors, starting with the great Satan need of jobs and opportunity. to this phantom testimony, 17-year- takes on an aspect of the 21st-cen- Ms. Ford herself said. Donald Trump. If religion were to The bill acknowledges that dan- old Brett held the girl down, pawed tury medieval. The accuser’s story The thing happened—if it hap- disqualify a Catholic from public ser- ger by prohibiting employers from her and tried to force himself upon first emerged in a letter that came pened—an awfully long time ago, vice, it would logically have to dis- asking if a candidate is receiving her, and held his hand over her into the hands of California Sen. Di- back in Ronald Reagan’s time, when qualify a practicing progressive, who welfare. But how hard is it for a hir- mouth when she screamed, until a anne Feinstein. Ms. Feinstein the actors in the drama were minors is the creature of a belief system ing manager to distinguish between second prep-school devil piled on brought it to light only after the and (the boys, anyway) under the that is, on the whole, considerably an unemployed 20-year-old living top, they all tumbled to the floor, Senate Judiciary Committee’s hear- blurring influence of alcohol and ado- more dogmatic than the one with with her parents and an unemployed and the girl managed to slip away. ing, which featured somewhat Sa- lescent hormones. No clothes were re- headquarters in Rome. single mother living with her chil- The boys were “stumbling drunk,” lem-like drama—costumed appari- moved, and no sexual penetration oc- dren or a father of four who’s been according to the account. tions from “The Handmaid’s Tale” curred. The sin, if there was one, was Mr. Morrow, a senior fellow at out of work for months? You were supposed to feel the arranging themselves outside the not one of those that Catholic theol- the Ethics and Public Policy Center, Putting welfare recipients at a sudden wind-shear of hypocrisy. The committee room; inarticulate back- ogy calls peccata clamantia—sins is a former essayist for Time. disadvantage in the job market would diminish the effectiveness of government efforts to encourage work. Able-bodied adults without Extremism Advances in the Largest Muslim Country dependents must work at least part- time or participate in a work pro- By Benedict Rogers ordering them to stop all activities. friends with people like you.” Widyawan, a priest at Santa Maria gram to receive food stamps for Mr. Amin has been behind other These anecdotes are reinforced by Tak Bercela Catholic Church, told me more than three months in a 36- ndonesia, the world’s largest repressive measures, including re- news footage that shows marching that the consistent message from his month period. Why require welfare I Muslim nation, has long stood as strictions on the construction of children at a kindergarten in east parishioners was: “We must love oth- recipients to work and then put a role model for religious plural- places of worship, proposals to crim- Java, dressed in black robes and face ers, we forgive the attackers, we do them at a competitive disadvantage ism. That’s changing. Political Islam inalize homosexuality, support for fe- veils, wielding realistic-looking toy not want revenge.” One woman who when they try to find a job? and violent extremism have been tak- male genital mutilation and local Sh- rifles, with the theme “Fight with the lost two sons, 8 and 12, in the attacks, The Stop Bezos Act would exacer- ing root in society and may soon do ariah laws. Messenger of Allah to Increase Faith said: “I have already forgiven the bate the perverse incentives welfare so in the government. President Joko Indonesia’s pluralism has come and Piety.” As Mr. Gultom told me, bombers. I don’t want to cry any- recipients face due to what policy Widodo’s choice of Ma’ruf Amin, a under increasing threat. Local au- “The seed of radicalization has more. I know that our Mother Mary wonks call the welfare cliff. Welfare 75-year-old cleric, as his running thorities, under pressure from Is- spread throughout Indonesia.” also lost her son, Jesus. I forgive.” programs can punish people who mate in next year’s election marks an lamic extremists, forced hundreds of The second message was from work because even a slight increase ugly turn for Indonesian politics. churches to close. While there have Muslims who reject extremism. in income may result in a severe de- Religious minorities had regarded been few closures since Mr. Widodo Indonesia’s president, Within hours of the bombings, they crease in government benefits. Eligi- Mr. Widodo as their defender. His ri- took office, the Rev. Gomar Gultom, came to clear up the wreckage. At bility for food stamps ends when an- val, retired general Prabowo Subi- general secretary of Indonesia’s once considered an ally of Jakarta’s cathedral that evening, two nual gross income exceeds 130% of anto, was expected to play the reli- Communion of Churches, says religious minorities, puts a Muslim women arrived at Mass, of- the federal poverty line. In most gion card, questioning the “there has been no justice for old fering red and white roses, the colors states, Medicaid eligibility ends incumbent’s Islamic credentials and cases.” Authorities continue to mis- radical cleric on his ticket. of Indonesia’s flag. when gross income exceeds 138% of building a coalition supported by rad- use blasphemy laws. A Buddhist President Trump’s administration poverty. Some employees make the ical Islamists. By choosing Mr. Amin, woman in North Sumatra was jailed has made the promotion of interna- rational economic decision to work the president’s defenders argue, he for 18 months for asking a mosque Religious intolerance and terror- tional religious freedom a priority. If less, keeping their income below the not only has neutralized the religion to turn down the volume on its ism aren’t the same, but as the Wa- it is serious, the U.S. should work to cutoff and retaining thousands of factor, but might have prevented it loudspeakers. hid Foundation’s Alamsyah M. Djafar strengthen the voices of moderate dollars in benefits. from spilling over into violence Last month a foreign scholar who told me, “if intolerance increases, the Indonesian Muslims. At the same Should the Sanders-Khanna bill against minorities. In office, they be- has lived in Indonesia for more than threat of radicalism increases, and time, Indonesian politicians whose become law, an employer with em- lieve, Mr. Amin will be contained. half a century told me of a Muslim that will change the face of Indone- heart is with the defenders of plural- ployees earning an amount short of Yet Mr. Subianto is unlikely to be man who asked his 12-year-old son sia.” And on May 13 a family of sui- ism must stop playing identity poli- the welfare cliff could raise the em- deterred from playing identity poli- what he had learned at school one cide bombers attacked three tics and stand up to the preachers of ployees’ compensation by increasing tics, and rumors that Mr. Amin is day. “We learned about kafir”—infi- churches in Surabaya within minutes hate. If they don’t, Indonesia’s plu- their wages or hours just enough to reaching out to radical Islamists for dels—his son replied. When the fa- of each other. The parents strapped ralism is in increasing peril, which push them over the cliff, throw support are troubling. Mr. Amin has ther asked what they had learned, explosives onto their daughters, 6 will have grave consequences be- them off benefits and avoid the Stop a history of intolerance. He signed a the boy replied: “We learned that and 8, and their teenage sons. At yond Southeast Asia. Bezos tax. Ironically, employers fatwa that put a Widodo ally, Ja- they must be killed.” least 13 people were killed. could lower the cost of employing karta’s former Gov. Basuki Tjahaja Last year, in Yogyakarta, a Chris- Three months later, I visited all Mr. Rogers is East Asia Team workers by increasing their com- “Ahok” Purnama, in jail on blas- tian man told me his 15-year-old three churches. I heard two key mes- Leader at the international human- pensation while the workers would phemy charges. Ahok, who is Chris- daughter’s best friend, a Muslim, sages, which offer some hope for In- rights organization CSW and author have less to support themselves or tian and ethnically Chinese, was a had told her that they could no lon- donesia. The first was from the vic- of “Indonesia: Pluralism in Peril—the their families because they got a symbol of Indonesia’s diversity, and ger be friends: “After Ahok’s case, tims, and can be summed up in one Rise of Religious Intolerance Across raise. as a popular governor was expected my God does not allow me to be word: forgiveness. Father Aloysius the Archipelago” (2014). The Stop Bezos Act would ob- to be re-elected. Instead he lost after struct the path out of poverty for rivals told Muslims not to vote for a the people progressives claim to non-Muslim. care about and the welfare system is Mr. Amin also signed the anti-Ah- Venture Out of Your News Bubble designed to help. You can’t lift peo- madiyya fatwa in 2005, which led to ple out of poverty by punishing severe restrictions and violence By Ted Rall Cable news channels have slightly got the impression of an off-the-rails businesses for hiring them. against the Ahmadiyya, an Islamic more than half as many viewers as president obsessing over a matter sect some Muslims regard as hereti- merican democracy faces a me- network news. But cable viewers are that, if they noticed it at all, had Mr. Puzder is a former CEO of cal. I met recently with Ahmadis in A dia-created crisis, according to far more engaged, watching longer faded in the rearview mirror of their CKE Restaurants and author of “The Depok, a Jakarta suburb, where their politicians and pundits across and more frequently, and studies consciousness. Conservatives pointed Capitalist Comeback: The Trump mosque is closed. The previous week the ideological spectrum. Citizens see have found they’re more politically to the deprioritizing of the Tibbetts Boom and the Left’s Plot to Stop It.” they were visited by 15 local officials issues through increasingly narrow active. Thus cable news has an out- story as evidence of liberal media ideological blinders. They read and size influence on American politics. bias. The end result was the politici- listen and watch opinion-tainted jour- zation of a murder and widening the nalism that reinforces their prejudices chasm between left and right reali- PUBLISHED SINCE 1889 BY DOW JONES & COMPANY and preconceptions. Liberal and conservative ties. Liberals had no idea why—or Rupert Murdoch Robert Thomson But what if there’s a bigger prob- that—conservatives were angry. Con- Executive Chairman, News Corp Chief Executive Officer, News Corp cable networks cover lem than slanted coverage? What servatives couldn’t understand why Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher about the news story that captivates different stories altogether. liberals didn’t care. Of course they half the electorate, while the other didn’t care—they didn’t know. Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Ramin Beheshti, Chief Technology Officer; half hardly knows that it exists? The Similarly, liberal-leaning news out- Jason Anders, Chief News Editor; Mark Musgrave, Chief People Officer; Thorold Barker, Europe; Elena Cherney, Coverage list of those stories is growing. A Each channel has its quirks. CNN has lets give much more coverage to po- Edward Roussel, Chief Innovation Officer; Planning; Andrew Dowell, Asia; Neal Lipschutz, study that examined the frequency of found ratings gold in hurricanes, lice violence against people of color. Anna Sedgley, Chief Operating Officer; Standards; Alex Martin, Writing; Christina Van Tassell, Chief Financial Officer words appearing in chyrons—the text while Fox is drawn to what critics call The message to liberals: White cops Michael W. Miller, Features & Weekend; Shazna Nessa, Visuals; Rajiv Pant, Product & OPERATING EXECUTIVES: at the bottom of the television “missing white woman syndrome.” kill a lot of black men. To conserva- Technology; Ann Podd, News Production; Kenneth Breen, Commercial; screen—revealed that the words But those differences don’t move the tives: It doesn’t happen that often, Matthew Rose, Enterprise; Michael Siconolfi, Jason P. Conti, General Counsel; “Mueller,” “Flynn,” “Putin,” “Krem- political needle. and is often justified when it does. Investigations; Louise Story, Strategy; Tracy Corrigan, Chief Strategy Officer; Nikki Waller, Live Journalism; Frank Filippo, Print Products & Services; lin,” “Moscow,” obstruct” and “Rus- Unless they do. Fox’s coverage of To be a well-informed citizen today, Stephen Wisnefski, Professional News; Steve Grycuk, Customer Service; sia” appeared far more frequently on the disappearance of 20-year-old Mol- you must not only follow the news but Carla Zanoni, Audience & Analytics Kristin Heitmann, Chief Commercial Officer; MSNBC than Fox. Thus Democrats, lie Tibbetts ramped up after an illegal seek it from sources that make you Nancy McNeill, Corporate Sales; Gerard Baker, Editor at Large Josh Stinchcomb, Advertising Sales; who are likelier to watch MSNBC, are alien was charged with her murder. uncomfortable, even angry. Instead we Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Chief Marketing Officer; likelier to be riled up about the spe- CNN and MSNBC took the opposite live in an age of side-by-side media Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International cial-counsel investigation into alleged tack, throwing shade on the story af- bubbles, and God help us, we like it. WALL STREET JOURNAL MANAGEMENT: DJ Media Group: Almar Latour, Publisher Joseph B. Vincent, Operations; Professional Information Business: Christopher collusion between Russia and Donald ter the arrest. When President Trump Larry L. Hoffman, Production Lloyd, Head; Ingrid Verschuren, Deputy Head Trump’s 2016 campaign than Repub- took to Twitter to discuss Tibbetts, Mr. Rall is a political cartoonist

EDITORIAL AND CORPORATE HEADQUARTERS: licans, who tend to watch Fox. To and the MS-13 gang violence that Fox and author of “Francis: The People’s 1211 Avenue of the Americas, New York, N.Y., 10036 Fox, and therefore Fox viewers, has covered more extensively than Pope,” the latest in his series of Telephone 1-800-DOWJONES Russiagate isn’t as big a deal. CNN or MSNBC, liberal news junkies graphic novel-format biographies. PERSONAL TECHNOLOGY: IOS 12 IS APPLE’S BIGGEST UPGRADE THIS FALL B4 BUSINESS&FINANCE

© 2018 Dow Jones & Company. All Rights Reserved. ***** THE WALL STREET JOURNAL. Tuesday, September 18, 2018 | B1

S&P 2888.80 g 0.56% S&P FIN g 0.36% S&P IT g 1.39% DJ TRANS g 0.88% WSJ $ IDX g 0.28% LIBOR 3M 2.339 NIKKEI (Midday) 23342.85 À 1.07% See more at WSJMarkets.com

Meat Glut Tyson shares are down 22% year Retailers Rush to Hire for Holidays to date. U.S. meat production has soared, pushing down Some offer higher off for part-time associates. looking at nonretail jobs, such more than for workers hired new incentives will be enough wholesale prices. They also are hosting recruit- as openings for administrative before Sunday. The increase is to woo and retain staff. wages, paid days off, ing marathons with the goal of assistants. “I’d rather have a part of Target’s plan to raise Chris Alfors, who works in Stock performance during profit sharing to lure hiring thousands of workers in full-time job,” said the 28- its minimum hourly wage to the men’s suit department of a Hayes's CEO tenure a single day. year-old. $15 by 2020. In recent months, Macy’sinBridgewater,N.J., $85 a share Christmas-season help Some 757,000 retail job Kohl’s Corp. and J.C. Penney retailers from Walmart Inc. to said he received an extra $240 were open across the country Co. started hiring seasonal CVS Health Corp. have been in pay as part of a new incen- 80 Monday BY SUZANNE KAPNER in July, about 100,000 more workers in June—about three Macy’s raising starting hourly pay. tive plan that Inc. in- $63.06 AND INTI PACHECO than the same time a year ago. months earlier than usual. This Delivery companies are also troduced earlier this year. All 75 The number of openings of all year, as an added incentive, going to be hiring in full force full- and part-time workers are The holiday shopping sea- types surpassed the number of Penney’s will give its part-time for this Christmas season as eligible to share in a bonus 70 son is still two months away. hires from March through hourly workers one week of they continue to deliver more pool doled out quarterly. For But faced with record-low un- June for the first time in a de- paid time off a year. Penney online orders. United Parcel employees to receive the bo- 65 employment and rising wages cade, according to the Bureau plans to hold a National Hiring Service Inc. said Monday it nus their store must hit sales in other industries, U.S. retail- of Labor Statistics. Some big Day on Oct. 16, similar to an plans to hire about 100,000 and online-fulfillment goals. 60 ers already are scrambling to cities, including New York, San event it held last year that full- and part-time workers “I’m thankful for whatever find enough workers to staff Francisco and Seattle, face a helped it hire 22,000 workers. from November through Janu- extra money comes my way, 55 their stores. shortage of workers with retail Target Corp. said last week ary, up from a goal of 95,000 a but I’m not sure it would keep 2017 ’18 Retailers have begun their skills, according to data from that it plans to hire 120,000 year earlier. FedEx Corp., me at Macy’s,” said the 58- Source: SIX annual push for holiday work- LinkedIn. seasonal workers, 20% more meanwhile, is looking to add year-old, who worked in fi- THE WALL STREET JOURNAL. ers earlier than ever, raising James Chan of New York than last year. The starting 55,000 workers for the holi- nance for 33 years until he was pay and offering perks such as said he plans to apply for holi- wage for those hired starting days. laid off in 2010. “If someone profit-sharing and paid time day retail work but is also this week is $12 an hour, $1 It isn’t clear whether the PleaseturntopageB2 TysonCEO STREETWISE | By James Mackintosh Resigns Social, Environmental Investment Scores Diverge InSurprise

Is Elon Decision Musk’s elec- BY JACOB BUNGE tric-car maker Tesla the Tyson Foods Inc. said Chief best, the Executive Tom Hayes is leav- worst or a ing at the end of this month merely middling performer for personal reasons, a sur- on environmental issues? Is prise leadership shift as the Warren Buffett’s Berkshire top U.S. meat company re- Hathaway one of the worst- vamps its strategy to priori- governed big U.S. compa- tize branded meat products. nies? Is General Motors one Tyson said Monday that of the most socially aware Noel White, a longtime Tyson businesses, or one of the executive who has overseen least? chicken, beef and pork pro- Investors picking a scor- cessing, will become its new ing system for ESG—envi- chief executive. ronmental, social and gover- The abrupt change sur- nance—issues facing prised Tyson employees and companies can have any of investors, coming less than those outcomes. two years into Mr. Hayes’s The differences are easy tenure. He has focused on enough to understand if you overhauling Tyson’s executive dig into the details. Yet, they leadership team and reposi- show just how difficult it is tioning the 83-year-old meat to take a simple approach to giant as a modern food com-

ESG investing, a style that is FROM LEFT: TY WRIGHT/BLOOMBERG; JOE AMON/GETTY IMAGES; STEFAN WERMUTH/BLOOMBERG pany marketing branded con- becoming ever-more popular. Exxon gets high grades for its worker policies; Berkshire, which owns BNSF, ranks low on disclosure; Tesla has widely varying ratings. sumer products, such as In addition to the billions of Jimmy Dean sausages and dollars of exchange-traded Stocks with better MSCI enviornmental, social and Corporate ESG scores can differ significantly Overall ESG score Hillshire Farm cold cuts. funds based on ESG indexes, governance (ESG) scores lagged behind in the U.S., depending whom you ask.† Sustainalytics FTSE MSCI‡ Mr. Hayes said in an inter- increasingly fund managers while they outperformed elsewhere view that his decision to leave Tesla are being pushed to produce 60% Cumulative total return wasn’t related to any issues of portfolios with better ESG personal conduct or integrity MSCI U.S.A. Exxon Mobil ratings, encouraged by pub- 40 MSCI U.S.A. ESG Leaders at Tyson. The 53-year-old said lic mutual-fund ESG scores. MSCI Europe ESG Leaders* he isn’t facing significant 20 Berkshire Hathaway The problem here isn’t the MSCI Europe* health problems and that he ESG ratings, but that they Alphabet isn’t pursuing a job at another are used as though they 0 company. He said his decision were some sort of objective was driven by “things that are –20 General Motors truth. In reality they are no personal to me.” more than a series of judg- 2015 ’16 ’17 ’18 0 20 40 60 80 “It’s a choice I made in con- ments by the scoring compa- *In U.S. dollar terms †Some scores recalculated to be out of 100 ‡Weighted-average key issue score sultation with the board and nies about what matters – Sources: Thomson Reuters (stock performance); FTSE Russell; MSCI; Sustainalytics THE WALL STREET JOURNAL. my family,” Mr. Hayes said. and investors who blindly People familiar with the mat- follow their scores are buy- MSCI and Sustainalytics, all prise is Tesla, ranked by and how the measurement is products, and the opportuni- ter said the decision surprised ing into those opinions, used for ESG indexes and by MSCI at the top of the indus- affected by disclosure. ties the company has in members of Tyson’s board. mostly without even know- institutional investors. The try, and by FTSE as the MSCI gives Tesla a near- clean technology. The company, based in ing what they are. companies are Tesla, Berk- worst car maker globally on perfect score for environ- FTSE gives Tesla a “zero” Springdale, Ark., reiterated its To illustrate these differ- shire, Exxon Mobil, Google- ESG issues. Sustainalytics ment, because it has selected on environment, because its guidance for the year and still ences, we can dig into the owner Alphabet and General puts it in the middle. two themes as the most im- scores ignore emissions from expects adjusted earnings to scores given to five big com- Motors. The explanation comes portant for the car industry: its cars, rating only emis- be between $5.70 and $6 a panies by FTSE Russell, Perhaps the biggest sur- down to what is measured, the carbon produced by its PleaseturntopageB10 Please see page B2 Goldman’s J. Aron Era Ends INSIDE U.S.RegulatorsBan With David Solomon’s Rise ADay-TradingGiant BY DAVE MICHAELS Europe. At his empire’s peak BY LIZ HOFFMAN phen Scherr, to his inner cir- out in 1999, only to have them around 2012, his traders were cle. All three men are steeped resurge under Mr. Blankfein. A pioneer in the lucrative responsible for three billion When Goldman Sachs in capital markets, the busi- The J. Aron crew that fol- business of overseas day trad- shares changing hands a Group Inc. purchased com- ness of helping corporations lowed him up the ranks has ing was banned from the U.S. month, or as much as 3% of modities brokerage J. Aron & and governments raise money. mostly left the firm over the brokerage industry Monday, U.S. stock volume at the time, Co. 37 years ago, it acquired a Even Goldman’s traders past two years. the latest target of a govern- according to former employees bloodline of executives that now report to a former Mr. Cohn, a former silver JACK MA URGES ment campaign to root out al- and brokers who handled his would come to dominate the banker: Jim Esposito, who was trader who was Mr. Blankfein’s leged manipulation in Ameri- firm’s trades. firm’s upper reaches for years. elevated in August to jointly No.2foradecade,joinedthe BEIJING TAKE can markets stemming from The Financial Industry Reg- That era is over. run the firm’s securities arm. Trump White House. (He has LIGHTER TOUCH foreign trading floors. ulatory Authority, a self- Lloyd Blankfein, who joined Power follows profits on since left after losing a battle The trader, Simon Librati, funded Wall Street overseer, J. Aron as a gold salesman in Wall Street. Mr. Blankfein rose over tariffs.) Mr. Schwartz, a agreed to a five-year suspen- and the Securities and Ex- 1982 and became Goldman’s to prominence in the 2000s as former derivatives salesman REGULATION, B3 sion from 10 U.S. stock ex- change Commission have for chief executive in 2006, is re- trading boomed. He installed who ran Goldman’s trading changes and a $400,000 fine, years waged a campaign to tiring on Oct. 1. The cadre of J. trading-floor colleagues in top arm and became its finance according to disciplinary set- choke off access points for Aron alumni he elevated as he roles across Goldman, oversee- chief in 2013, left in April. tlements with U.S. regulators such manipulation from over- rose—Gary Cohn, Harvey ing finance, human resources Ms. Ealet, an oil trader, re- resolving a nearly five-year in- seas traders. Schwartz, Isabelle Ealet, Edith and technology. J. Aron’s trad- tired this spring from her post vestigation of his firms’ trad- Finra spearheaded the Cooper and others—is mostly ers were firmly in charge. running Goldman’s trading ing. The outcome ends Mr. Li- probe that Mr. Librati settled gone. When Martin Chavez, a But Goldman’s trading reve- arm. Mr. Chavez, who joined J. brati’s ability to control or Monday. Mr. Librati declined former J. Aron strategist, steps nues have fallen sharply, to $12 Aron in 1993, is stepping down work for a U.S. brokerage firm, to comment. His lawyer said down as Goldman’s chief finan- billion in 2017 from $27 billion as CFO and returning to the although it doesn’t bar him Mr. Librati “looks forward to cial officer in November, it will in 2006, the year Mr. Blankfein securities division. Edith Coo- from trading personally. That moving on with his life.” mark the end of the commodi- became CEO. Commodities per, who ran Goldman’s com- is typical of such cases. The day-trading impresario ties traders’ decadelong grip trading, in particular, has modities business in Europe Mr. Librati, who neither ad- never sent orders himself, and on the executive suite. struggled. The firm’s invest- and later was head of human COAL KEEPS mitted nor denied the allega- tried to curb questionable ac- Taking their place is a crew ment bankers, meanwhile, have resources, retired in January. tions, has been involved in tivity by terminating traders of deal makers and money ridden a deal-making boom. Among the few J. Aron ITSGLOWFOR high-stakes trading for over a and developing a surveillance men, led by incoming CEO Da- Of course, fortunes can alumni still in senior positions MINING GIANTS decade, providing what U.S. system to screen for manipula- vid Solomon. Last week, he change quickly. Plenty of peo- is Timothy O’Neill, who joined regulators say was a conduit tive activity, said the lawyer, named two veterans of Gold- ple thought Goldman’s traders J. Aron in 1985 and now over- for overseas traders engaged Stephen Crimmins of Murphy man’s investment-banking were permanently on the outs sees Goldman’s $1.5 trillion as- ENERGY, B11 in rapid-fire manipulation, & McGonigle P.C. arm, John Waldron and Ste- after Jon Corzine was pushed set-management arm. mainly from China and Eastern PleaseturntopageB2 B2 | Tuesday, September 18, 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 Duke Energy...... A6 O Thailand Cave Explorer Sues Elon Musk E Japanese Alibaba Group...... B3 1Malaysia Development Alphabet...... B1,B4 Exxon Mobil...... B1 ...... B10 Amazon.com...... B11 F Oracle...... B3 Anglo American...... B11 P Tycoon Is FedEx...... B1,B3 Ant Financial...... B3 PowerShares QQQ Trust Apple...... A12,B4,B11 Fortress Investment..A4 G ...... B12 AT&T...... B12 R SpaceX’s Aurora Cannabis...... B12 General Electric...... B10 Automation Anywhere General Motors...... B1 Rio Tinto...... B11 ...... B10 Glencore...... B11 S Avon Products...... B3 Goldman Sachs...... B1 Salesforce...... B3 First Fare B H Saudi Arabian Oil.....B10 BY ANDY PASZTOR Saudi Basic Industries Berkshire Hathaway...B1 H&M Hennes & Mauritz AND ANNE STEELE BHP Billiton...... B11 ...... B3 ...... B10 Blue Prism Group.....B10 Hulu...... B12 Sequoia Capital...... B10 C I Space Exploration HAWTHORNE, Calif.—Space Technologies...... B2 Exploration Technologies CapitalG...... B10 iShares Russell 2000 T CBS...... B3 Index ETF...... B12 Corp.’s first paying passenger Cerberus Capital...... B3 L Tencent Holdings...... B3 will be Japanese billionaire Chevron...... B10 Tesla...... B2 Yusaku Maezawa. Lucid Motors...... B10 Coca-Cola...... B12 Teva Pharmaceutical B12 Mr. Maezawa is to blast off M Twitter...... B11 Comcast...... B12 from Earth in 2023, circle the Credit Suisse Group.B10 Macy's...... B1 21st Century Fox.B4,B12 Tyson Foods...... B1,B2 moon and return, SpaceX CSX...... A6 Meredith...... B3 D N U founder and chief executive UiPath...... B10 Elon Musk said at an event Deutsche Bank...... B10 National Amusements United Parcel Service.B1 Monday evening, where the Didi Chuxing Technology ...... B3 W ...... B3 Natura Cosmeticos.....B3 space tourist also made brief Dow Chemical...... B2 Netflix...... B12 Walmart...... B10 remarks. DowDuPont...... B2 News Corp...... B4 Walt Disney...... B4,B12 Mr. Musk said he and Mr.

SOE ZEYA TUN/REUTERS Maezawa weren’t disclosing the price tag for the lunar joyride. INDEX TO PEOPLE Elon Musk has been sued by Tesla declined to comment. An $75,000 and an unspecified “For me, this project is very a British cave explorer involved effort to reach Mr. Musk directly amount of punitive damages. meaningful,” Mr. Maezawa said. in rescue efforts to save a Thai wasn’t immediately successful. The suit says Mr. Musk was “This is my lifelong dream.” B J P youth soccer team, alleging he “Elon Musk falsely accused “apparently angered” by Mr. Un- The e-commerce mogul and Benioff, Marc...... B3 L Pavlik, Jeffrey...... B12 was defamed by the Tesla Inc. Vernon Unsworth of being guilty sworth’s criticism, on July 13, of collector stunned the art Bensoussan, Maurice.B2 chief executive for suggesting he of heinous crimes. Musk’s influ- Mr. Musk’s suggestion to use a world last year when he paid LaFemina, Christopher Q Boyadjis, Mark...... B4 was a pedophile. ence and wealth cannot convert minisubmarine to save the boys, Sotheby’s $110.5 million for a ...... B11 Quiros, Jairo...... B10 Breen, Edward...... B2 Vernon Unsworth, seen his lies into truth or protect him who were trapped in a cave in Jean-Michel Basquiat painting Le Clair, Craig...... B10 above, brought the lawsuit to Thailand and faced rising waters. C S from accountability for his of a black skull, a record for a Librati, Simon...... B1 “hold Musk legally accountable wrongdoing in a court of law,” On July 15, Mr. Musk pub- U.S. artist at auction. Saucer, John...... B11 Chen, Julie...... B3 Lynne...... B3 for his wrongdoing and to vindi- said L. Lin Wood, an Atlanta- lished a tweet that referenced Mr. Maezawa, a 42-year-old Cook, Tim...... A12 M Schultz, Kare...... B12 cate his reputation,” says a copy based attorney who is part of Mr. Unsworth as a “pedo guy.” former rock drummer, amassed Cutifani, Mark...... B11 Smith, Fred...... B3 of the complaint filed Sept. 17 in Mr. Unsworth’s legal team. He soon deleted that tweet and a $3 billion fortune selling im- Maezawa, Yusaku...... B2 D T the U.S. District Court for the Mr. Unsworth seeks compen- apologized for writing it. ported records and then trendy Ma, Jack...... B3 Central District of California. satory damages of more than —Micah Maidenberg clothes through his online Dines, Daniel...... B10 Marnell, Tony...... A4 Tan Boon-Kee...... B10 fashion conglomerate. Dinh, Viet...... B4 Moonves, Leslie...... B3 U E Mos, Kal...... B4 Unsworth, Vernon...... B2 Edens, Wes...... A4 Murdoch, Lachlan...... B4 line shopping. such as manufacturing, it Gray & Christmas Inc. “We W Retailers In recent months, as busi- poses a particular problem for might be getting to a point Edmonds, Brian...... B11 Murdoch, Rupert...... B4 ness has improved along with stores that depend on seasonal where there is a limit to how H Musk, Elon...... B2 White, Noel...... B1 the overall economy, many staff. much companies can grow be- N Z Hansen, Ole...... B11 Chase Staff chains have concluded they Sales representatives are cause it’s hard to get labor.” Heckman, Dan...... B11 Nallen, John...... B4 Zweifach, Gerson...... B4 may have cut too far. Dick’s among the hardest jobs to fill Some labor representatives Sporting Goods Inc. and Macy’s in the U.S., according to Man- say retailers created their own For Season are among the big retailers powerGroup, a staffing com- problems by not making the who have said they are looking pany. jobs appealing enough. to add staff to make the shop- Stephen Frank, a Manpower “A temporary, part-time job DowDuPont Chief ContinuedfrompageB1 ping experience in stores more managing director, said there with an uncertain schedule, offered me a job in finance enjoyable in the hopes of dif- also is a shortage of drivers low pay and no benefits is not again, I’d take it.” ferentiating themselves from that is so severe in some areas going to ramp up their hiring To Captain Spinoff The moves to lure and keep online-only retailers. retailers are asking all employ- needs,” said Stuart Appel- BY JACOB BUNGE of two bastions of U.S. indus- workers are an about-face for These stores are ramping ees to pitch in by delivering in- baum, president of the Retail, try. Both Dow Chemical and retailers who in recent years up hiring as the economy picks ventory to stores. Wholesale and Department DowDuPont Inc. Chief Ex- DuPont had faced shareholder have closed stores and up and the overall labor mar- “There’s going to be a war Store Union. “These are not ecutive Edward Breen will as- pressure to streamline opera- trimmed staff to cut costs as ket tightens. While the labor for retail talent,” said Andrew jobs that enable people to sume the top executive posi- tions and focus on faster- sales and profits came under shortage in the retail industry Challenger, vice president of build their lives and support tion at the specialty-products growing businesses. Since pressure from the shift to on- isn’t as bad as it is in sectors outplacement firm Challenger, their families.” company that will be created merging, Mr. Breen has over- next year as part of the con- seen efforts to cut $3.3 billion glomerate’s yearslong plan to in costs while preparing to partner, Maurice Bensoussan, split into three entities. break the combined entity into DayTrader financed the trading, reviewed Mr. Breen will become exec- three separate companies fo- the strategies and reaped a cut utive chairman of the spe- cused on materials, agriculture of profits that flowed from the cialty-products company, to be and specialty products such as Bannedin activity, according to Finra’s named DuPont, managing its enzymes and fibers. agreement. Mr. Bensoussan, a portfolio of businesses and The materials business, to French businessman, also Interactive steering its capital invest- be named Dow, is planned to U.S.Market agreed to be barred from own- ments. The spinoffs are spin off from its parent by ing or working for a brokerage planned to be completed by April 2019. Corteva Agri- firm in the U.S. A lawyer for June 1 of next year. science, the agricultural busi- ContinuedfrompageB1 Mr. Bensoussan declined to Brokers DowDuPont, jointly based in ness, and DuPont should be According to the settle- comment. Michigan and Delaware, was separated by June, company ment, Mr. Librati was respon- Mr. Librati’s managers created a year ago in a merger officials said. sible because he was an owner sometimes cited regulatory of firms whose traders repeat- scrutiny of the business when pays 1.41% edly engaged in “layering,” a they withheld payment from has been president of its practice that attempts to rig overseas traders working for In Surprise beef, pork and international stock prices with fake orders— Mr. Librati’s businesses, said operations. and beat computers at the Jack Liu, a trader in Xiamen, on idle cash Mr. Hayes said Mr. White game of high-speed trading. China, who added he wasn’t Shift, Tyson was deeply involved in Tyson’s Finra detected over 200,000 paid about $30,000 that he recent decisions and invest- cases of allegedly manipulative was owed. Mr. Librati’s lawyer ments, and would carry that orders by traders working for declined to comment. in your CEO Quits strategy forward. Mr. Librati’s firms from 2012 Mr. Librati often spent time Tyson’s board had consid- to 2013, according to Finra’s in Miami Beach, Fla., where he ered Mr. Hayes uniquely suited disciplinary settlement. has owned a waterfront man- ContinuedfrompageB1 to the CEO role, given his Layering involves firing off sion. brokerage share. Shares of Tyson, down background managing supply a flurry of orders designed to Lately, Mr. Librati has 22% year to date, fell slightly chains for Hillshire Brands— create the impression that moved into the lightly regu- 1 to $63.06 on Monday. the owner of the Jimmy Dean supply or demand have lated world of cryptocurren- Tyson and other U.S. meat and Ball Park brands—which changed. Once the trader gets cies. A Russian group calling account processors are struggling as Tyson acquired in a $7.7 bil- the favorable price he wants, itself United Traders has listed domestic production of beef, lion deal in 2014. A few he cancels his other orders. Mr. Librati as a partner on a chicken and pork rises to re- months before he was named Repeated many times, layer- website for an initial coin of- cord levels, pushing down CEO in late 2016, Mr. Hayes ing—and a similar stratagem fering. wholesale prices. had been promoted to Tyson’s called “spoofing”—can pro- —Stella Yifan Xie Trade disputes have led to president. Before that he was duce big profits. and Lisa Schwartz chief commercial officer. Mr. Librati and a business contributed to this article. Hillshire has become the Noel White engine for Tyson’s expanded was deeply push into branded consumer Brokers Sometimes nancial Industry Regulatory Au- involved in goods, part of a strategy that thority and the Securities and recent aims to reduce the company’s Paid Price for Ties Exchange Commission, Wed- decisions and exposure to the ups and To Librati’s Firms bush Securities Inc. severed investments, downs of meat prices and ag- ties with Mr. Librati’s business Mr. Hayes said. ricultural markets. in October 2012, according to Mr. Hayes has also overseen Simon Librati entered day regulatory filings and a person a remake of Tyson’s executive trading in 2000 when he familiar with the matter. A tariffs on U.S. meat products office suite, hiring leaders opened a Montreal branch of Finra complaint against Wed- in top export markets such as from companies including Swift Trade Inc., a Toronto firm bush, filed in 2014, stemmed Mexico and China, while rising Boeing Co. and HP Inc. He that became the first global mostly from the broker’s failure freight costs have driven up also named a chief sustainabil- collective of rapid-fire foreign to supervise Mr. Librati’s trad- To learn more visit: costs for food suppliers and ity officer—a first for Tyson— day traders. ers, who were suspected of other companies. Tyson in late and oversaw investments in By 2012, Mr. Librati’s net- layering, according to the latest ibkr.com/141 July cut its profit forecast for plant-based burgers and tech- work of trading firms had rela- disciplinary settlement. the year but touted the perfor- nology to grow meat from ani- tionships with 1,200 traders in Wedbush paid about $4.2 mance of its prepared-foods mal cells. China, according to two people million in 2014 and 2015 to business. Some investors have sup- familiar with the business. settle SEC and Finra probes Tyson’s board considered ported Tyson’s direction under Such traders routed their or- over claims that it sponsored several candidates to succeed Mr. Hayes. ders through funds that Mr. Li- access to risky overseas trad- Mr. Hayes, a spokesman said, Other shareholders have fo- brati and his partners regis- ers without adequate controls. and chose an experienced ex- cused on the challenges Tyson tered in the Cayman Islands, Wedbush said at the time that Interactive Brokers Rated #1 ecutive from its own ranks. faces in its meat-processing according to Finra’s settlement. “to our knowledge, the trading Best Online Broker 2018 Mr. White, 60, spent decades divisions, said Jeremy Scott, Mr. Librati had relationships activity at issue did not result by Barron’s* managing Tyson’s meat-pro- an analyst with Mizuho. with brokers across Wall in any losses to any other mar- Member NYSE, FINRA, SIPC. Supporting documentation for any cessing operations in the U.S. “Noel is a proven leader Street, which gave the traders ket participants, to Wedbush claims and statistical information will be provided upon request. and overseas, having joined who has played an integral direct access to U.S. stock ex- Securities or to its clients.” *Interactive Brokers rated #1, Best Online Broker according to the company in 2001 via Ty- role in our enterprise leader- changes. Many of those bro- “He’s been very ambitious, Barron’s Online Broker Survey 2018: All Together Now, March 26, 2018. For more information see, ibkr.com/ info - Barron’s is a reg- son’s acquisition of beef and ship team for many years,” kers have taken heat from reg- and not always very clean, but istered trademark of Dow Jones & Co. Inc. [1] Credit interest rate pork supplier IBP. He was Chairman John Tyson said of ulators for lax oversight of his he’s done very well,” said Daniel as of 7/3/2018. USD credit interest is paid on balances over USD president of Tyson’s core Mr. White in a statement. traders’ orders. Zini, Mr. Librati’s former busi- 10,000 in security accounts with Net Asset Value exceeding USD poultry business from 2013 —Allison Prang Under pressure from the Fi- ness partner. 100,000. For more information, see ibkr.com/interest 7-IB18-1189 to 2017, and most recently contributed to this article. THE WALL STREET JOURNAL. ***** Tuesday, September 18, 2018 | B3 BUSINESS NEWS Avon Jack Ma Urges Beijing to Ease Up Fields Market, not regulator, senger, the second since May. In January, Alibaba’s mo- should determine how bile-payments affiliate Ant Fi- Takeover technology evolves, nancial Services Group be- came a target when Chinese tycoon tells AI session regulators said the company Interest violated new standards on Brazil’s Natura Cosmeticos BY YOKO KUBOTA protection of personal data. SA recently approached Avon Mr. Ma didn’t directly refer Products Inc. about a take- SHANGHAI—Chinese e- to any of those events in his over, according to people fa- commerce tycoon Jack Ma speech, which also included miliar with the matter. used a government-sponsored his views on how artificial in- forum to suggest regulators telligence could transform take a lighter touch in dealing businesses and society. Mr. Ma By Dana Mattioli, Sharon Terlep with technology companies, urged traditional industries to saying the market should be embrace new technologies and and Dana Cimilluca allowed to decide how new in- spoke about how sectors such dustries such as artificial in- as manufacturing could be The companies aren’t in se- telligence develop. transformed through data. rious talks and Avon, which has “I personally think that the In his speech, Mr. Ma also received other expressions of government has to do what referenced the recent crack- interest, is focused on turning the government should do, down on Chinese peer-to-peer itself around and reviving its and the companies do what lenders, which match small shares, one of the people said. companies should do,” Mr. Ma borrowers with ordinary in- Following years of decline said at the World Artificial In- vestors. These internet lenders in its once-formidable direct- telligence Conference in have been blamed for strand- sales business, Avon had a Shanghai on Monday, recalling ing investors when they fail. market value as of Monday’s a conversation he said he had Mr. Ma suggested many of

close of just $900 million. Still, last year with U.S. Secretary of ALY SONG/REUTERS those lenders operated ille- with $5.7 billion in sales last Transportation Elaine Chao The e-commerce mogul plans to retire from Alibaba as China tightens rules for internet companies. gally under the camouflage of year and $1.9 billion of debt, a about self-driving cars. internet-driven financial ser- purchase of the company “Protecting the backward plans to retire in one year as to pursue philanthropic inter- Holdings Ltd.’s shares plunged vices. He said the risk with would be a substantial deal. forces who are crying out loud executive chairman of Alibaba ests, but some observers saw as the government announced companies that use actual data Natura, which also sells will be the most important Group Holding Ltd., the inter- his decision as part of the fall- its plan to tighten its grip on and artificial intelligence to cosmetics via a direct sales factor in destroying innova- net giant with businesses in out from China’s authoritarian videogames. Ride-hailing firm control risks is low. force, said in a statement that tion,” Mr. Ma said. online retailing, cloud comput- government increasing restric- Didi Chuxing Technology Co. —Yang Jie in Beijing and “there are no negotiations in Mr. Ma’s comments came a ing and mobile payments. tions on internet companies. has come under scrutiny after Liza Lin in Singapore progress concerning a possible week after he announced his Mr. Ma said he wanted time In recent weeks, Tencent police said a driver killed a pas- contributed to this article. acquisition of Avon.” It de- clined to comment further. A spokesman for Avon, which after a restructuring two years ago focuses on for- New Owners Acquire Time at Digital Crossroads eign markets and is based in London, declined to comment. BY JEFFREY A. TRACHTENBERG viewed an offering document with greater scale are strug- the world, one that is also an top line. Print revenue has de- Avon’s shares have ground used in the transaction pro- gling. Daniel Kurnos, an ana- incredibly strong business. clined from $83 million in lower—it once sported a mar- With their acquisition of cess. Revenue is expected to lyst with Benchmark, said the That’s what we’re looking for 2015 to an expected $38 mil- ket value of more than $20 bil- Time magazine, Sales- fall nearly 9% to $158 million in price the Benioffs are paying when we invest as a family,” lion this year, the people said. lion—as the direct selling force.com Inc. co-founder 2018, reflecting industrywide is in line with Meredith inves- he said. A spokesman for Mr. The proposed acquisition is model it pioneered has largely Marc Benioff and his wife pressures, while operating in- tors’ expectations. and Mrs. Benioff had no fur- unrelated to Salesforce.com, been supplanted by online Lynne will take on a publica- come will be about the same. Meredith doesn’t disclose fi- ther comment. where Mr. Benioff serves as shopping. In the second quar- tion racing to find digital reve- The Benioffs are paying nancials for individual titles. A There are signs Time has chairman and co-chief execu- ter, its revenue fell 3% from a nue to offset a steep erosion around 5.76 times operating spokesman for Meredith said begun to stabilize declines in tive. year earlier to $1.35 billion and in the print business, accord- profit for Time magazine. De- the actual valuation multiple circulation revenue. It is pro- The Benioffs said they it had a net loss of $37 million. ing to people familiar with the tails of valuations in compara- would be closer to 8 times op- jected to fall from $89 million wouldn’t have a role in day-to- In 2016, private-equity firm magazine’s financials. ble transactions weren’t im- erating income, if additional last year to $83 million this day operations or journalistic Cerberus Capital Manage- The Benioffs announced mediately available. expenses are factored in that year. Total circulation revenue decisions at Time. ment LP paid $170 million for Sunday they were buying Time Craig Huber, a media ana- would lower Time’s earnings. in 2015 was $104 million, the As part of the agreement an 80% stake in Avon’s North from Meredith Corp. for $190 lyst at Huber Research Part- In an interview Sunday, Mr. people familiar with the finan- with the Benioffs, Meredith American business, which is million, a deal expected to ners, said “Meredith did very Benioff said he is optimistic cials said. will continue to provide ser- now a separate, private com- close within 30 days. well with the price that they about the state of Time’s busi- Digital revenue is projected vices such as paper purchas- pany (Avon Products owns the Time generated revenue of got.” He said the Benioffs may ness, including its large audi- to increase from $28 million ing, printing and consumer remaining 20%). Cerberus paid $173 million in 2017, and oper- find it difficult to operate a ence and growth in video. last year to $36 million in marketing services, and will another $435 million for a 17% ating profit of $33 million, ac- single magazine at a time “We’re investing in a company 2018, though it still represents continue to include Time in its stake in Avon Products itself. cording to the people, who re- when magazine publishers with tremendous impact on a small portion of the overall corporate advertising deals. BUSINESSWATCH Julie Chen, Moonves’s FEDEX be starting to succeed. Sales in the quarter ended Wife, Exits ‘The Talk’ Executives Warn Aug. 31, excluding value-added BY JOE FLINT ing himself on any women. Mr. Of Trade Tensions tax, rose 9% to 55.82 billion Moonves has also denied pun- Swedish kronor ($6.17 billion). Julie Chen, wife of former ishing women professionally FedEx Corp. executives said Analysts polled by FactSet had CBS Corp. Chairman and Chief who rebuffed his alleged ad- fears over the escalating trade expected sales of 54.03 billion Executive Leslie Moonves, who vances, which was also alleged fight between China and the U.S. kronor. H&M shares rose 20.48 last week resigned amid sex- in the New Yorker articles. are starting to hurt economic ac- kronor to 143.64 kronor. ual-harassment allegations, After the first New Yorker tivity between the countries. —Saabira Chaudhuri will quit as a host on the net- article in July, Ms. Chen The tariffs implemented so far work’s daytime talk show “The tweeted that Mr. Moonves is a have hit about 10% of FedEx’s ORACLE Talk,” a person familiar with “good man” and a “kind, de- business in China, where the car- themattersaid. cent and moral human being.” rier generates about 2% of overall Increase in Revenue Ms. Chen hasn’t been on She said she stood behind his revenue. But uncertainty over Misses Expectations “The Talk” since Mr. Moonves statement. She also made a further actions, including an ex- resigned under pressure from similar statement on “The pected round of additional U.S. Oracle Corp. boosted revenue,

CBS’s board and controlling Talk” in July. tariffs on $200 billion worth of MARC MCANDREWS/BLOOMBERGbut NEWS the performance may in- shareholder National Amuse- News of Ms. Chen’s pend- Chinese imports and how Beijing FedEx posted a jump in fiscal first-quarter earnings and revenue. crease pressure on the company ments Inc. ing departure was first re- retaliates, is creating jitters and to explain how it plans to win She is expected to an- ported by the New York Post resulting in a slowdown in eco- ments as FedEx reported a jump HENNES & MAURITZ customers over to its cloud- nounce her departure from the and CNN. Ms. Chen’s lawyer nomic activity, executives said. in fiscal first-quarter earnings based offerings. show via video on Tuesday’s didn’t respond to a request “History is very, very clear and revenue. Revenue rose 11% Turnaround Efforts For the quarter ended Aug. 31, program. for comment. that countries that pursue the to $17.1 billion, with double-digit Appear to Advance revenue rose 1% to $9.19 billion, Since allegations of sexual Ms. Chen’s exit removes an most open markets are the ones revenue increases in all three of less than the $9.24 billion analysts harassment and assault by Mr. awkward situation for a show that prosper the most and the FedEx’s main segments. For the Shares in Hennes & Mauritz surveyed by FactSet had predicted. Moonves appeared in the New hosted by four women who ones whose citizens’ income in- period, FedEx reported earnings AB surged 17% Monday after the Earnings rose to $2.27 billion, or 57 Yorker magazine, Ms. Chen often talk about newsy top- creases the most,” said FedEx of $835 million, up from $596 fashion retailer reported stronger- cents a share, from $2.21 billion, or has supported her husband; he ics, including the #MeToo Chairman Fred Smith. million a year earlier. than-expected quarterly sales, a 52 cents a share, a year earlier. has denied assaulting or forc- movement. Mr. Smith made the com- —Paul Ziobro sign its turnaround efforts could —Micah Maidenberg Invest in Knightscope at $8.00 per share Our fully autonomous security robots are already operating across 15 states, in 4 time zones operating 24/7, helping humans better secure the places you work and visit. Now we are bringing the experience closer to you in Midtown Manhattan. Visit our showroom to see cool robots, meet our humans and snap a robot selfie!

VISIT WWW.KNIGHTSCOPE.COM

Knightscope and www.knightscope.com are operated by Knightscope, Inc. Investment opportunities are “private placements”, are subject to long hold periods, are illiquid investments and investors must be able to afford the loss of their entire principal. Offers to buy or sell any security can only be made through official offering and subscription documents that contain important information about risks, fees and expenses. You should conduct your own due diligence including consultation with a financial advisor, attorney, accountant, or other professional that can help you to understand the risks associated with the investment opportunity. Security transactions are administered by WealthForge Securities, LLC, a registered broker/dealer and member FINRA/SIPC. Knightscope and WealthForge Securities, LLC are not affiliated. B4 | Tuesday, September 18, 2018 ** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

PERSONAL TECHNOLOGY | By David Pierce Google to Partner With iOS 12 Upgrade Revives Old Phones Biggest Car Alliance BY TIM HIGGINS veloped by the car companies Apple’s AND CHESTER DAWSON and their suppliers. And these most impor- executives have grown com- tant upgrade Alphabet Inc.’s Google is fortable with Google, which be- this fall making a major push into the gan open sourcing its software doesn’t cost auto industry, partnering with in 2007. $1,000, and the Renault-Nissan-Mitsubishi “The trust was built in the you don’t have to go to the Alliance to use the tech com- last few years,” said Kal Mos, Apple Store to get it. In fact, pany’s Android operating sys- the alliance’s vice president of after testing iOS 12—the lat- tem to power media display connected vehicles, in an inter- est version of the software that will eventually be sold in view. that powers iPhones and millions of cars world-wide. The companies declined to iPads—I suspect a lot of peo- The auto-making alliance, disclose the terms of the part- ple can skip buying a new which together sells more vehi- nership. Google will have ac- phone altogether this year. cles than any other auto maker, cess to the data generated by iOS 12 brings plenty of is picking Google to provide the its in-car apps but must get the new features, but its primary operating system for its next- customer’s permission first be- purpose is, to borrow an Ap- generation infotainment sys- fore collecting it, Mr. Mos said. ple phrase, to just work. Re- tem, marking a major victory Car companies have been re- cently, iOS hasn’t just for the Silicon Valley tech gi- luctant to go too far with worked. Confusing interfaces ant, which has spent more than Google, unsure how their busi- and odd bugs have crept a decade trying to replicate the ness models will evolve, said their way into the software, success it has had with the Mark Boyadjis, a global tech- and if you had an older de- smartphone in the car. nology lead for IHS Markit. vice, you practically had to The alliance, which last year “Apple went to market with pray to the processor gods sold a combined 10.6 million iTunes, coined it as a way to that the latest software up- vehicles globally, will launch protect the music industry and date wouldn’t slow your the system in 2021, giving driv- then subsequently took over phone to a crawl. And often ers better integration of the music industry,” Mr. Boyad-

the gods didn’t answer. JAMES PACE-CORNSILK/THE WALL STREET JOURNAL Google’s maps, app store and jis said. Auto makers are asking Starting Monday, iOS 12 In iOS 12, you can add an alternate face in Face ID, which uses facial recognition to unlock a device. voice-activated assistant from themselves: “‘How much do I rolled out to all the same de- the vehicle’s dashboard, the give over to this tech com- vices that could run iOS 11. an app—and besides, I al- most of iOS 12’s most ambi- Pod. Unfortunately, Siri companies said. pany?’” he added. That means every iPhone ready knew I used my phone tious features. Surprisingly, Shortcuts are maddeningly Many drivers remain wed- Google has been working to since the 5s and every iPad too much. that is good news. complicated to set up. The ded to their phones, opting to alleviate those concerns, put- since the Mini 2. TwootherfeaturesiniOS app does have a showcase of use them in their cars to call up ting out its Android operating I’ve been testing it on 12 have been far more useful ake Siri Shortcuts. The pre-made shortcuts, some of directions. The auto industry software to be used free of four devices that span Ap- in that regard. Anytime I get new app allows you to which are quite useful. has struggled to develop inter- charge. ple’s past five years: an a notification, I can swipe T set up custom routines Siri still lags far behind faces that are as reliable and IHS Markit estimates that iPhone X, an iPad Pro, an left and quickly change set- on your phone, with surpris- Alexa and Google Assistant easy to use. car makers this year are using iPhone 6s and an iPad Mini tings for that app’s notifica- ing power and granularity. in terms of overall function- The alliance’s executives some level of Android soft- 2. The best thing about iOS tions. They can appear qui- Since iOS 12 wasn’t publicly ality. But on the plus side, it said many of its customers are ware in 19% of the infotain- 12 is how well it runs on etly, showing up in my available during my testing, has new voices, and I’m a big already predisposed to using ment systems installed in ve- older gadgets. Though not notification list but not most apps didn’t yet support fan of my new Irish Guy Siri. Google’s apps over the ones de- hicles globally. quite as fast as my newer buzzing or lighting up my it, but I still set up a few I Many of iOS 12’s new fea- devices, they are close. And phone, or they can stop com- use frequently. When I say tures involve the camera: some of iOS 12’s features im- pletely. “Hey Siri, I need coffee” or You can do more with the prove my relationship with Apple has vastly improved tap the corresponding icon digital mask Animoji feature, the latest iPhones and iPads, its Do Not Disturb feature, in the Shortcuts app, Siri including creating a too—in part by helping me which quiets all my phone’s searches for coffee shops “Memoji” that looks sort of use them less. notifications and buzzes. I nearby, shows me the closest like you. Apple added lots of can turn on DND for an hour few, then provides Google Instagram and Snapchat- pple has made a big or until I leave my current Maps navigation to which- style camera effects, and is deal about Screen location, both of which I’ve ever one I tap. If I say “Send rolling out group FaceTime A Time, its new feature found hugely helpful. A DND this to Anna,” it grabs the video chat later this fall. for tracking how much time feature called Bedtime will URL of whatever webpage I That’s all in addition to you spend in apps and on hide all your overnight noti- am looking at and texts it to the added security features, your phone. So far, I have fications until morning. I my wife. These are the sorts patches and bug fixes that gotten little benefit from the recommend setting it to end of small things that can always make it worthwhile feature. As my colleague Jo- after you’ve had your coffee make your phone feel a lot to upgrade to the latest ver- anna Stern noted, it is too and are ready to face the more intuitive—and that will sion of iOS. The new version

easy to ignore the warnings day. open totally new possibilities isn’t entirely bug-free, but it PAU BARRENA/BLOOMBERG NEWS about exceeding my limit in Siri is at the center of on an Apple Watch or Home- is much closer. The Google Maps application on a car’s touch screen New Fox Selects Legal Chief U.S. GOV’T SILVER BY JOE FLINT Mr. Dinh, 50 years old, will come chief operating officer of be based in Los Angeles and the new Fox. He will also re- Longtime 21st Century Fox report to Lachlan Murdoch, port to Lachlan Murdoch. board member Viet Dinh is who will be the chairman and “Viet brings to ‘Fox’ a PUBLIC OFFER: stepping down to take a senior chief executive of the new Fox. unique strategic mind and position with “Fox,” the tenta- Mr. Dinh will be a member of deep knowledge of our busi- Announcing The Release of 3,250 Original, Genuine, tive name for the company ness based on his many years that will consist of entertain- of service on the 21st Century Brilliant Uncirculated U.S. Mint Morgan Silver Dollars ment and news assets not be- Viet Dinh, 50 Fox board,” Lachlan Murdoch ing acquired by Walt Disney years old, is said in a written statement. Co., including Fox News and the second Mr. Dinh’s board seat won’t Morgan Silver Dollars from 1878-1921 the Fox broadcast network. significant be filled. from Mr. Dinh, who has served leadership The new Fox’s holdings in- $ 00 on 21st Century Fox’s board appointment clude Fox Broadcasting and its 49 for 15 years, has been named to the new Fox. local television stations, the each chief legal and policy officer Fox News and Fox Business for the new Fox, the company channels and the national said. In addition to oversight the office of the chairman, sports channel Fox Sports 1. of its legal affairs, Mr. Dinh which will be comprised of the Live programming including will also direct the new Fox’s leadership of the new Fox. sports is expected to play a government and public-affairs During his tenure on the major role at the new Fox. Be- operations. board, Mr. Dinh became close sides airing National Football Most recently a partner at to both 21st Century Fox Exec- League games on Sundays and the law firm of Kirkland and utive Chairman Rupert Mur- Thursdays, the Fox Broadcast- Ellis, and before that a profes- doch and Lachlan Murdoch, a ing unit has struck rights sor at Georgetown University’s person close to the company deals with World Wrestling law school, Mr. Dinh will take said. He is the second signifi- Entertainment and Premier on many roles previously held cant leadership appointment Boxing Champions. by 21st Century Fox General to the new Fox. John Nallen, The Murdoch family is a Counsel Gerson Zweifach, who the chief financial officer and major shareholder in 21st Cen- will depart when the sale of senior executive vice president tury Fox and Wall Street Jour- assets to Disney is completed. of 21st Century Fox, will be- nal parent News Corp. GENUINE BRILLIANT UNCIRCULATED

• ORIGINAL U.S. COINS FROM 1878-1921 ★ ★ NOW IN STOCK • ONLY 3,250 AVALABLE A MORGAN SILVER DOLLAR SET HAS 96 • ALL COINS BRILLIANT UNCIRCULATED DIFFERENT COINS • INVESTMENT QUALITY START A SET TODAY • GUARANTEED TO SELL OUT STARTER SETWITH 30 DIFFERENT COINS WITH FREE ALBUMS $1995 HALF SETWITH 50 DIFFERENT COINS Comes with Certificate of Authenticy WITH FREE ALBUMS $5900 Big5banks Synchrony Bank ALL COINS UNCIRCULATED 10 - Original Morgan Silver Dollars $490 VERY LIMITED SUPPLY 20 - Original Morgan Silver Dollars $980 BUILD A SET FOR YOUR GRANDKIDSTODAY 40 - Original Morgan Silver Dollars $1,960 How do your savings rates stack up? 100 -Original Morgan Silver Dollars $4,900 synchronybank.com CALL US AND FIND OUTWHY OUR GOAL ISTO BE: Find out at or call 1-800-753-6870. Morgan Silver Dollar Starter Set $1,995 # IN CUSTOMER 30 different Morgan Silver Dollars with FREE Albums SPECIALRATE13-MONTHCD 1 SERVICE Morgan Silver Dollar HALF Set $5,900 50 different Morgan Silver Dollars with FREE Albums $2,000 # IN CUSTOMER % minimum 1 SATISFACTION TOLL FREE Phone lines are open. CALL NOW: opening FAMILY OWNED AND OPERATED 2.65 * deposit FOR OVER 19 YEARS 1-888-678-7977 APY Exclusively www.americancoinvault.com through SynchronyBankhasconsistentlyearnedtheBankrateSafe&Sound®5-StarRating!* RISK-FREE GUARANTEE: If you are not CA residents must pay applicable sales tax. *Annual Percentage Yield (APY) is accurate as of 9/1/18 and subject to change at any time without notice. A minimum absolutely satisfied, return the package We accept all major credit cards. of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early within 15 days by insured mail for a withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you will earn the base rate of full refund (less shipping and handling). interest in effect at that time. Visit synchronybank.com for current rates, terms and account requirements. Offer applies Satisfaction is 100% guaranteed. ©2018 ACV. Distributor of U.S. Government issued gold to personal accounts only. and silver. Not affiliated with the U.S. Government. AWARDS: Bankrate Safe & Sound 5-Star Rating earned for 2014 through 2018. Dana Point, CA © 2018 Synchrony Bank B10 | Tuesday, September 18, 2018 **** THE WALL STREET JOURNAL. BUSINESS & FINANCE Software ‘Robots’ Power Startups Deutsche

BY ROLFE WINKLER secondary share sale in Janu- policy, Mr. Le Clair said. with lower error rates. Ui- Executive ary. Robot Wars With robotic process auto- Path’s bots cost 20% to 33% of After years toiling in obscu- Together, the companies Valuations of three robotic mation, humans train the soft- a human clerical worker and Questioned rity, three startups have sud- have raised nearly $700 mil- process automation companies ware robots to perform simple, can complete 3-4 times the denly hit the jackpot in a cor- lion this year as they sprint to repeatable jobs like data entry work, said Jairo Quiros, vice ner of the enterprise-software open offices around the globe. UiPath that today are handled by hu- president of global shared ser- $3 billion $3 billion market sprinkled with artifi- At stake is leadership in the mans, such as opening a pdf vices at Equifax Inc., one of On 1MDB cial intelligence. Now they are market for so-called software file attached to an email, scan- the company’s customers. racing to one-up each other to robots that mimic humans to ning the document for specific Mr. Dines declined to pro- BY SAURABH CHATURVEDI Automation appear the market leader. complete back-office tasks 2 Anywhere information, and then entering vide annual financial figures, The companies are UiPath such as entering invoice infor- $1.8 billion the information in some other but said UiPath by the end of SINGAPORE—A senior Inc., Blue Prism Group PLC mation into databases, pro- company database where it this year will be generating Deutsche Bank AG executive and Automation Anywhere cessing insurance claims or needs to be stored. revenue at a rate of $200 mil- has been interviewed by au- Inc. They were all founded in automatically sending out of- 1 The market took years to lion annually, compared with thorities in Singapore as part 2005 or earlier, but it wasn’t fer letters to new hires. develop as the companies im- $43 million at the end of last of their investigation into the until the past few years that The market will grow to al- proved their software to make year, and just $3 million a year multibillion-dollar scandal at Blue Prism* they took off after hitting on most $1.1 billion in revenue $1.9 billion it ready for big corporate cus- earlier. Customers include Malaysian state fund their current business auto- this year from $325 million in 0 tomers. A dash of marketing General Electric Co., Walmart 1Malaysia Development Bhd., mating simple back-office 2016, estimates Craig Le Clair, 2016 ’17 ’18 magic helped too, after Blue Inc., and Chevron Corp. people familiar with the probe tasks and dubbing it “robotic analyst at research firm For- Prism used the word “robotic” Sequoia Capital and Capi- said. *Market capitalization as traded on London process automation.” rester. While a handful of Stock Exchange to describe this type of soft- talG are set to lead UiPath’s These people identified the UiPath on Monday finalized other companies compete in Note: Valuations for Automation Anywhere ware, giving it the scent of AI. latest funding, a $225 million executive as Tan Boon-Kee, a new funding round at a $3 the sector, UiPath, Blue Prism, and UiPath from private financing rounds. “AI makes it sexier for compa- round bringing the company’s who until recently was Asia billion valuation, said a person and Automation Anywhere Sources: WSJ Market Data Group (Blue nies to think about automa- total raised to just over $400 Pacific head of Deutsche familiar with the process, six dominate it, he said. But that Prism); the companies (Automation tion,” said UiPath Chief Execu- million. Bank’s financial institutions months after a prior round isn’t enough to justify their Anywhere, UiPath) tive Daniel Dines, who co- Blue Prism reported reve- group. She was recently inter- valued it at $1.1 billion. In July, huge valuations, he said. THE WALL STREET JOURNAL. founded the company in nue of £22.9 million ($29.9 viewed by Singapore police, Automation Anywhere raised The soaring valuations re- Romania in 2005. million) for the six months these people said Monday. its first round of financing at a flect in part the buzz over ar- ligence software can learn The market for robotic pro- ended in April, up 145% from a It couldn’t be determined $1.8 billion valuation. Shares tificial intelligence, or AI, when presented with new data cess automation is growing year earlier. Its customers in- when Ms. Tan was interviewed in Blue Prism, a public com- which has benefited the three and make decisions without quickly because chief informa- clude Coca-Cola Co. Automa- or whether she has been pany in the U.K., have risen companies even though their human input, such as monitor- tion officers can show their tion Anywhere hasn’t disclosed charged with any wrongdoing. nearly 30 times since they software doesn’t precisely fall ing credit-card charges for bosses real cost savings by us- revenue figures. New Enter- Efforts to reach Ms. Tan for were listed in March 2016. It in that category. fraud, or determining whether ing bots to complete clerical prise Associates led its $250 comment were unsuccessful. raised about $60 million in a Higher-order artificial-intel- to underwrite an insurance tasks faster, more cheaply and million funding round in July. A spokeswoman for Deutsche Bank declined to comment. Singapore police didn’t respond to a request for comment. Saudi Sovereign Fund Raises $11 Billion Loan Ms. Tan is on gardening leave, which is time off be- BY RORY JONES tween jobs to safeguard sensi- tive deal information and cli- DUBAI—Saudi Arabia’s sov- ent relationships, according to ereign-wealth fund has begun the people familiar with the in- cobbling together billions of vestigation. It couldn’t be de- dollars from different sources termined if Ms. Tan’s leave was to help deliver an economic related to the investigation. overhaul and replace funds it Bloomberg News first re- had expected from the stalled ported that Singapore authori- listing of oil giant Aramco. ties had interviewed Ms. Tan The Public Investment Fund as part of their 1MDB-related said Monday it signed an $11 investigations. billion syndicated loan from banks and it is also in talks to sell a 70% stake in Saudi Ara- bia’s state-owned petrochemi- cals company to Aramco for as Credit much as $70 billion. The sover- eign fund also has drawn on foreign-currency reserves at Suisse the Saudi central bank in re- cent months to boost overseas spending, according to econo- Laundering

mists and comments Sunday by AHMED JADALLAH/REUTERS a bank official to Saudi media. The Public Investment Fund has been charged with diversifying the country’s oil-dependent economy. A facility in an Aramco oil field. PIF’s debt raising is an un- Curbs Hit usual strategy for a sovereign Saudi Arabian Crown Prince roughly $225 billion sovereign- Lucid Motors to help the firm Corp. Aramco is negotiating fund, which often uses na- Mohammed bin Salman has wealth fund has shifted from a launch its first electric vehicle the price for Sabic, as the firm BY BRIAN BLACKSTONE tional resources to increase a charged PIF with diversifying little-known holding company in 2020. is known, but is expected to AND PIETRO LOMBARDI country’s wealth for future the country’s oil-dependent for government assets to one The fund’s interest in elec- raise about $10 billion in bank generations. But the Saudi economy as part of a program of the world’s most influential tric-car markets is driven by loans and a further $40 billion ZURICH—Switzerland’s fi- sovereign has a double- known as Vision 2030. investors, buying stakes in Sili- its ambition to one day create in bonds to fund the deal, the nancial regulator on Monday pronged mandate to both in- The program’s centerpiece con Valley companies such as an electric vehicle, battery and Journal has reported. ordered Credit Suisse Group crease wealth and create new had been a listing of Aramco, Uber Technologies Inc. and solar-power production hub in The Saudi government itself AG to bolster its anti-money- industries that will boost the known officially as Saudi Ara- Tesla Inc. It also has made the kingdom, The Wall Street has tapped bond and loan laundering processes, but the government’s non-oil reve- bian Oil Co., which was ex- tens of billions of dollars of Journal has reported. markets for more than $50 bil- bank avoided any monetary nues. Other sovereign funds, pected to inject as much as commitments to SoftBank PIF’s foray into the interna- lion over the past roughly penalties for its shortfalls. such as Singapore’s Temasek $100 billion into PIF’s coffers. Group Corp.’s $100 billion Vi- tional market for loans mir- three years, a steep increase in The regulator, Finma, Holdings Pte. Ltd. and China The IPO was supposed to hap- sion Fund and a $40 billion rors wider Saudi government borrowing. It is running a fis- stopped short of imposing Investment Corp., have raised pen late this year, but the pro- Blackstone Group LP infra- appetite for debt. cal deficit after launching a fines on the Swiss bank after debt and are making bets on cess has since been put on structure investment vehicle. Saudi officials are encour- major domestic spending pro- uncovering shortfalls over sectors such as venture capital hold, while PIF still requires After news of the loan aging Aramco to raise billions gram to stimulate private-sec- nearly a decade through 2014 and technology that sovereign- cash to meet its stated ambi- emerged Monday, PIF said it in loans and bonds to buy tor growth while trying to in the bank’s dealings with wealth funds have typically tions and commitments. had invested about $1 billion PIF’s stake in the chemicals raise revenues through new South American oil companies shied from. In only two years, the into California-based startup firm Saudi Basic Industries taxes and other means. and Switzerland-based FIFA, the world’s top governing body for soccer. Finma said it “iden- Tesla, which discloses lit- roed by FTSE on both envi- number of factors that mat- tion and instability” issues. tified deficiencies in the bank’s Corporate tle about its operations com- ronment and social scores. ter to each company, making FTSE takes the opposite ap- adherence to anti-money-laun- pared with other auto mak- Another problem is how to each important to the overall proach, putting Alphabet in dering due diligence obliga- ers, suffers from FTSE’s put the separate environmen- score. FTSE includes a the top half of its peer group tions in relation to suspected Grades Are approach, particularly on so- tal, social and governance broader set of factors, but is for governance, and says it is corruption” involving FIFA, cial issues (where all three scores together. Should a still rules-based. Sustainalyt- held back in part by a weak Petróleo Brasileiro SA and graders anyway give it low highly polluting company be ics also has a broad set of score for anticorruption as- Petróleos de Venezuela SA. Diverging scores on how it treats able to offset that by having factors, and uses analyst sessments and training, as The Swiss watchdog ordered workers). MSCI is more gen- great governance and treating judgments for some of its as- well as tax disclosure. the bank to strengthen controls erous, assuming that if workers well? Sustainalytics sessments. In all three cases Investors should not treat and said it would appoint an in- ContinuedfrompageB1 there’s no disclosure, the ranks Exxon top of the five the design of the rules and ESGscoresassettledfacts dependent third party to moni- sions from its factories (to company operates in line companies overall because it scoring system makes a big to be used on their own, but tor implementation. Finma ac- confuse things further, with regional and industry puts a 40% weight on social difference to the outcome. as potentially worthwhile knowledged “some substantial” FTSE’s separate “Green reve- norms. Sustainalytics de- issues, where Exxon does well And sometimes the as- analysis that needs to be un- improvements in Credit Suisse’s nue” score gives Tesla 100%). clined to explain its method- thanks to strong policies for sessments simply differ. derstood before being acted money-laundering controls and Tesla highlights another ology, but it gives points for its workers, supply chain and MSCI puts Alphabet in the on. The thick ESG reports cooperation. major difference in scoring: disclosure of policies—again, local communities. MSCI bottom quartile of its indus- behind the scores offer use- The findings are “part of an what to do when a company Tesla suffers—as well as low ranks Exxon fourth of the five try for the subcategory of ful detail about the policies ongoing review of legacy cases doesn’t disclose. FTSE says scores for issues where there in part because it puts a 51% corporate governance thanks and controversies around across the Swiss banking sec- it assumes the worst if no is too little disclosure to cal- weight on environment and to controlling shareholders each business. But just as tor,” it added, noting that the information is provided on culate, such as Tesla’s re- only 17% on social issues. and related-party transac- with financial accounts, in- cases originated between 2006 an important issue—and that newable-energy use. The three create their tions, although its overall vesting without understand- and 2014, which was before the giving the worst score en- Berkshire suffers on dis- scores differently, too. MSCI governance score is lifted by ing is unlikely to deliver arrival of Chief Executive Ti- courages more disclosure. closure, too, again being ze- selects—using rules—a small a strong score on “corrup- what you want. djane Thiam.

Data provided by Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Mutual Funds Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fidelity MagIn 11.14 -0.10 11.7 JPMorgan Funds PIMCO Funds I2 EqIdxInst 21.57 -0.14 9.8 TotIntlAdmIdx r 28.65 -0.02 -4.9 TotIntBdIxInv 10.92 +0.01 1.3 Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. 500IdxInst 101.36 -0.56 9.5 OTC 12.52 -0.23 18.4 MdCpVal L 42.05 -0.17 4.4 Income NA ... NA IntlEqIdxInst 19.62 +0.05 -2.7 TotStAdml 72.67 -0.48 9.8 WellsI 26.67 +0.01 0.4 VANGUARD ADMIRAL Welltn 42.83 -0.03 3.2 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e 500IdxInstPrem101.35 -0.57 9.5 Puritn 24.87 -0.14 7.0 JPMorgan R Class PIMCO Funds Instl TxMIn r 13.73 +0.03 -3.2 500Adml 267.86 -1.50 9.5 WndsrII 39.64 -0.06 5.7 and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 500IdxPrem101.35 -0.57 9.5 SrsEmrgMkt 18.55 -0.18-13.4 CoreBond 11.24 +0.01 -1.1 IncomeFd NA ... NA ValAdml 43.50 -0.04 6.3 BalAdml 36.18 -0.14 5.3 VANGUARD INDEX FDS 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r ExtMktIdxPrem r 68.80 -0.76 11.0 SrsGroCoRetail 19.73 -0.31 18.6 CorePlusBd 8.03 ... -1.1 Price Funds WdsrllAdml 70.34 -0.11 5.8 CAITAdml 11.55 ...... 500 267.81 -1.50 9.5 apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not IntlIdxPrem r 41.89 +0.12 -2.9 SrsIntlGrw 16.23 -0.04 0.5 Lord Abbett F BlChip 111.96 -1.63 16.2 WellsIAdml 64.62 +0.03 0.4 CapOpAdml r173.23 -1.49 12.8 SmValAdml 60.61 -0.36 7.1 available due to incomplete price, performance or cost data. NE-Not released by Lipper; SAIUSLgCpIndxFd 15.50 -0.08 9.6 SrsIntlVal 10.27 +0.05 -3.9 ShtDurIncm 4.16 ... 0.7 EqInc 34.30 -0.04 3.9 WelltnAdml 73.97 -0.05 3.3 EMAdmr 33.64 -0.32-11.2 TotBd2 10.35 ... -1.6 data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. SerLTTreBdIdx 8.33 ... -4.8 TotalBond 10.33 ... -1.0 Metropolitan West EqIndex 77.81 -0.43 9.4 WndsrAdml 80.57 -0.22 2.9 TMktIdxF r 83.56 -0.55 9.8 First Eagle Funds TotRetBd 10.34 ... -1.3 Growth 70.93 -0.88 13.2 EqIncAdml 80.28 ... 4.3 VANGUARD FDS TotIntl 17.13 ... -4.8 TMktIdxPrem 83.55 -0.55 9.8 GlbA 58.55 -0.01 -0.9 TotRetBdI 10.33 -0.01 -1.3 HelSci 81.82 -1.02 16.3 ExplrAdml 106.62 -1.67 20.6 DivdGro 28.50 -0.03 9.4 TotSt 72.63 -0.48 9.7 Monday, September 17, 2018 USBdIdxInstPrem 11.19 ... -1.6 FPA Funds TRBdPlan 9.72 -0.01 -1.2 InstlCapG 43.19 -0.59 17.0 ExtndAdml 93.51 -1.04 11.0 HlthCare r 222.65 -1.14 11.1 VANGUARD INSTL FDS Net YTD Net YTD Net YTD Fidelity Advisor I FPACres 35.50 +0.01 3.0 MFS Funds Class I IntlStk 18.10 -0.06 -3.1 GNMAAdml 10.16 -0.01 -0.8 INSTTRF2020 22.95 -0.05 1.9 BalInst 36.19 -0.14 5.3 Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret NwInsghtI 35.31 -0.35 12.6 Franklin A1 ValueI 41.28 -0.04 2.1 IntlValEq 14.14 +0.03 -6.5 GrwthAdml 81.54 -0.92 13.3 INSTTRF2025 23.37 -0.06 2.2 DevMktsIndInst 13.74 +0.02 -3.2 HlthCareAdml r 93.92 -0.48 11.1 DevMktsInxInst 21.48 +0.03 -3.2 American Century Inv Baird Funds Fidelity Freedom CA TF A1 p 7.24 ... -0.7 MFS Funds Instl MCapVal 31.64 -0.09 4.1 INSTTRF2030 23.71 -0.06 2.6 IntlVal 19.03 +0.07 -5.4 5.78 ... 1.5 93.50 -1.05 11.0 FF2020 16.39 -0.04 1.4 IncomeA1 p 2.32 ... 1.3 IntlEq 25.29 +0.08 -0.7 MidCap 97.98 -0.87 12.6 HYCorAdml r INSTTRF2035 24.05 -0.07 2.9 ExtndInst Ultra 51.01 -0.67 17.5 AggBdInst 10.51 ... -1.6 IntSmCo 20.36 +0.07 -4.0 InfProAd 25.17 ... -0.7 GrwthInst 81.55 -0.91 13.3 FF2025 14.31 -0.04 1.7 FrankTemp/Frank Adv Nuveen Cl I N Inc 9.15 ... -1.5 INSTTRF2040 24.38 -0.08 3.2 American Funds Cl A CorBdInst 10.86 ... -1.3 IntSmVa 21.19 +0.11 -7.7 IntlGrAdml 96.59 -0.68 1.1 InPrSeIn 10.25 ... -0.8 FF2030 17.97 -0.06 2.2 IncomeAdv 2.30 ... 1.4 HYMunBd 17.17 -0.01 2.1 NHoriz NA ... NA INSTTRF2045 24.60 -0.09 3.4 AmcpA p 34.47 -0.30 12.2 BlackRock Funds A TAUSCoreEq2 19.48 -0.14 8.0 ITBondAdml 10.92 +0.01 -1.9 InstIdx 264.42 -1.48 9.5 Freedom2020 K 16.37 -0.04 1.4 FrankTemp/Franklin A Oakmark Funds Invest OverS SF r 10.99 +0.01 -2.8 INSTTRF2050 24.63 -0.08 3.4 AMutlA p 42.66 -0.05 6.0 GlblAlloc p 19.50 ... -0.7 US CoreEq1 24.74 -0.17 9.2 ITIGradeAdml 9.39 ... -1.5 InstPlus 264.45 -1.47 9.5 Freedom2025 K 14.29 -0.04 1.7 RisDv A p 65.55 -0.18 7.7 EqtyInc r 32.49 -0.04 0.9 R2020 23.01 -0.06 2.1 IntlVal 38.09 -0.02 -4.5 BalA p 27.80 -0.03 3.7 BlackRock Funds III US CoreEq2 23.14 -0.15 7.9 LTGradeAdml 9.74 +0.01 -5.4 InstTStPlus 64.61 -0.43 9.9 17.95 -0.07 2.2 FrankTemp/Franklin C Oakmark 88.46 -0.43 4.9 R2025 18.02 -0.05 2.4 BondA p 12.50 ... -1.5 iShS&P500IdxK345.30 -1.92 9.5 US Small 39.21 -0.35 9.5 Freedom2030 K MidCpAdml 204.41 -1.56 7.4 LifeCon 20.00 -0.03 1.2 MidCpInst 45.16 -0.34 7.4 Income C t 2.35 ... 0.9 OakmrkInt 25.82 +0.31 -9.6 26.64 -0.09 2.8 CapIBA p 60.09 +0.11 -2.0 BlackRock Funds Inst US SmCpVal 40.61 -0.32 7.3 Freedom2035 K 15.24 -0.06 2.9 R2030 MorgAdml 104.52 -1.35 15.2 LifeGro 34.33 -0.10 2.9 MidCpIstPl 222.71 -1.70 7.5 FrankTemp/Temp A Old Westbury Fds CapWGrA 50.28 -0.21 -0.2 EqtyDivd 23.91 ... 5.9 US TgdVal 26.31 -0.19 6.1 Freedom2040 K 10.71 -0.05 3.0 R2035 19.54 -0.07 3.0 MuHYAdml 11.15 -0.01 0.2 LifeMod 27.43 -0.07 2.0 SmCapInst 78.38 -0.81 11.3 LrgCpStr 14.94 -0.06 3.3 EupacA p 52.11 -0.26 -4.6 GlblAlloc 19.63 ... -0.4 USLgVa 40.10 -0.07 3.5 Fidelity Invest Growth A p 26.92 +0.08 -1.2 R2040 28.12 -0.11 3.2 MuIntAdml 13.80 -0.01 -0.3 PrmcpCor 29.52 -0.14 9.7 SmCapIstPl 226.24 -2.33 11.4 Oppenheimer Y FdInvA p 64.43 -0.24 5.2 StratIncOpptyIns 9.72 ... -0.1 Dodge & Cox Balanc 25.12 -0.12 6.6 FrankTemp/Temp Adv Value 37.95 -0.07 1.7 MuLTAdml 11.31 -0.01 -0.6 SelValu r 29.98 -0.08 -4.1 STIGradeInst 10.45 ... 0.2 GwthA p 55.50 -0.55 12.0 Bridge Builder Trust Balanced 108.87 -0.14 3.9 BluCh 99.41 -1.44 17.6 GlBondAdv p 11.22 -0.07 -2.1 DevMktY NA ... NA PRIMECAP Odyssey Fds MuLtdAdml 10.82 ... 0.7 STAR 27.50 -0.10 3.3 TotBdInst 10.38 ... -1.5 HI TrA p 10.27 ... 3.2 CoreBond 9.83 ... -1.3 GblStock 13.75 -0.02 -0.8 Contra 13.85 -0.18 14.9 Harbor Funds IntGrowY 41.08 -0.11 -5.8 AggGrowth r 51.29 -0.75 15.7 MuShtAdml 15.71 ... 1.0 TgtRe2015 15.54 -0.02 1.4 TotBdInst2 10.35 ... -1.6 ICAA p 41.50 -0.13 5.3 CorePlusBond 9.77 ... -1.1 Income 13.46 +0.01 -0.6 ContraK 13.85 -0.18 14.9 CapApInst 80.04 -1.21 15.3 PGIM Funds Cl Z Growth r 42.76 -0.50 14.8 PrmcpAdml r150.94 -1.04 13.0 TgtRe2020 31.96 -0.06 1.8 TotBdInstPl 10.38 ... -1.5 IncoA p 23.14 +0.01 1.2 Del Invest Instl Intl Stk 42.65 +0.03 -7.9 CpInc r 10.07 -0.02 2.0 IntlInst r 63.39 +0.13 -6.1 TotalReturnBond 13.98 ... -1.9 Stock r 34.38 -0.14 7.7 RealEstatAdml118.27 +0.47 2.5 TgtRe2025 18.90 -0.04 2.2 TotIntBdIdxInst 32.76 +0.02 1.3 N PerA p 46.10 -0.34 6.8 Value 23.17 +0.07 8.8 Stock 213.93 -0.55 7.0 DivIntl 39.06 -0.04 -2.4 Harding Loevner PIMCO Fds Instl Principal Investors SmCapAdml 78.38 -0.81 11.3 TgtRe2030 34.48 -0.09 2.5 TotIntlInstIdx r114.57 -0.06 -4.8 NEcoA p 48.24 -0.61 8.1 Dimensional Fds DoubleLine Funds GroCo 21.07 -0.33 17.9 IntlEq NA ... NA AllAsset NA ... NA DivIntlInst 13.31 -0.03 -4.2 SmGthAdml 65.74 -1.01 16.6 TgtRe2035 21.28 -0.06 2.9 TotItlInstPlId r114.59 -0.06 -4.8 NwWrldA 62.79 -0.44 -6.2 5GlbFxdInc 10.92 ... 0.5 CoreFxdIncmI 10.67 ... -0.6 GrowCoK 21.08 -0.33 18.0 Invesco Funds A ShortT 9.89 +0.01 1.8 Schwab Funds STBondAdml 10.22 ... -0.2 TgtRe2040 36.90 -0.13 3.2 TotStInst 72.69 -0.47 9.8 SmCpA p 59.69 -0.52 7.0 EmgMktVa 28.76 -0.25 -7.9 TotRetBdI 10.37 ...... InvGB 7.68 ... -1.4 EqIncA 11.01 -0.01 1.5 TotRt 9.88 ... -2.0 S&P Sel 45.12 -0.25 9.5 STIGradeAdml 10.45 ... 0.2 TgtRe2045 23.25 -0.08 3.3 ValueInst 43.50 -0.04 6.3 TxExA p 12.72 -0.01 -0.5 EmMktCorEq 20.54 -0.19-11.1 Edgewood Growth Instituti InvGrBd 10.91 ... -1.0 John Hancock Instl PIMCO Funds A TIAA/CREF Funds TotBdAdml 10.38 ... -1.5 TgtRe2050 37.41 -0.14 3.3 Western Asset WshA p 46.60 -0.09 6.8 IntlCoreEq 13.78 +0.04 -4.1 EdgewoodGrInst 35.41 -0.48 19.8 LowP r 51.87 -0.11 2.0 DispValMCI 24.06 -0.04 3.2 IncomeFd NA ... NA BdIdxInst 10.45 ... -1.6 TotIntBdIdxAdm 21.83 +0.01 1.3 TgtRetInc 13.56 -0.01 1.0 CorePlusBdI NA ... NA THE WALL STREET JOURNAL. **** Tuesday, September 18, 2018 | B11 MARKETS Bets on Coal Pay Off at Mining Firms

Glencore is a winner recorded in the first half of 2018, generating more than a as it bought unwanted quarter of its $8.3 billion in assets when rivals earnings before interest, taxes, depreciation and amortization. fled from the market Even after recent weakness, Glencore shares have more BY PAUL GARVEY than quadrupled since the 2016 low in coal prices. Shares Global mining companies of global mining firms Rio that bet on coal are enjoying Tinto PLC and BHP Billiton the best prices in years—a Ltd. doubled over the same pe- sign there is money to be riod. “Glencore is just generat- made from the industry even ing tons of cash from those as an energy transition to gas [coal] assets,” said Jefferies and renewables takes place. analyst Christopher LaFemina. Glencore PLC has used ris- Glencore’s decision to ex- ing sentiment against coal to pand in coal might look less

expand its position in the mar- charmed if and when global WOLFGANG RATTAY/REUTERS ket, scooping up unwanted as- warming and pollution con- Some observers say in the near term, lack of coal-mining investment can offset the effect of softer demand. sets. The cerns cut into demand. COMMODITIES Swiss min- Other mining companies While renewables and gas people think.” ing and have shied away from the mar- are making inroads into West- Mr. Cutifani said that while Warming Up trading gi- ket. Rio Tinto completed its ern power markets that have Anglo American would con- Growing demand from Asia has helped push coal prices higher. ant has a history of pushing exit from the coal market ear- long depended on coal, emerg- tinue supporting its remaining into businesses where rivals lier this year. BHP has almost ing markets in Asia remain thermal coal operations, the Thermal coal demand, Spot price of thermal coal from are reluctant to tread. halved its exposure through hungry for large, cheap company was unlikely to make selected countries and regions Newcastle, Australia, yearly average So far, Glencore’s gamble divestments in recent years sources of energy, increasing major investments in the sec- 4 billion metric tons Estimates $125 a metric ton Estimates appears to be paying off. High and in April quit the World their coal demand. Some in the tor. demand from Asia helped ther- Coal Association over the in- market say that at least in the Mining companies have mal coal prices delivered from dustry group’s position on cli- near term, the lack of invest- been very cautious about in- 100 Newcastle, Australia, the mate change. Anglo American ment in coal mining can offset vesting in new projects across 3 world’s largest coal-export PLC has sold off its Australian the impact from softening de- commodities broadly, and port, more than double since thermal coal assets. mand, leading to higher prices. given the longer-term uncer- China 75 they bottomed in early 2016 to The diverging strategies on Mark Cutifani, chief execu- tainties surrounding coal, in- 2 Asia excluding China about $110 a metric ton. Ex- coal show how companies are tive of Anglo American, said in vestments in new coal projects North America port prices from South Africa grappling with a long-pre- an interview that thermal have been particularly less Europe 50 and import prices into Europe dicted transition in energy coal—the type of coal used in likely. are also at or near their high- consumption. heating and power genera- For companies still inter- 1 est levels in years. Recent gains in coal prices tion—will be strong for the ested in the sector, like Glen- 25 Glencore stock has strug- are a reminder that timing this next “five to seven years.” core, it can be cheaper to ac- gled this year amid regulatory expected switch into gas and But “beyond that it gets a quire unwanted mines from scrutiny linked to businesses renewables can be tricky, with lot harder to forecast because other parties than invest in 0 0 in Africa and Venezuela. But mining firms liable to leave of the climate-change issues,” new mines or expand existing ’122010’14 ’16 ’18 ’20 ’22 ’122010’14 ’16 ’18 ’20 ’22 its coal division was a big money on the table from their he said. “We think switching operations. That further slows Source: CRU Group THE WALL STREET JOURNAL. driver in the record earnings it coal assets. will occur quicker than most the pace of supply growth. Oil Prices Retreat as Market Ponders Iran Sanctions

BY CHRISTOPHER ALESSI and expectations of a global currency against a basket of 16 280,000 barrels a day in Au- However, efforts by the Or- supply last month, according AND STEPHANIE YANG supply crunch, but reversed of its peers, was trading down gust to stand at 1.9 million ganization of the Petroleum to the IEA. course as the trading day went 0.3% Monday. barrels a day, the International Exporting Countries and its “The oil market is in any Oil prices edged lower on on. More broadly, investors Energy Agency reported last partner producers, including case adequately supplied at Monday, giving back gains as “Every time we make a run “aren’t ready to sell off oil” in week. Russia, to begin ramping up present—and next year there traders weighed the potential at $70, we meet some stiff re- the run-up to U.S. sanctions President Trump in May production this summer after will even be a certain cushion impact of Iran sanctions. sistance,” said John Saucer, being imposed on Iran’s oil in- pulled the U.S. out of a 2015 more than a year of holding to absorb supply outages,” an- Light, sweet crude for Octo- vice president of research and dustry at the start of Novem- international agreement to back output have helped keep alysts at Commerzbank wrote ber delivery lost 0.1% to $68.91 analysis at Mobius Risk Group ber, said Ole Hansen, head of curb Iran’s nuclear program, a cap on prices. in a note Monday. a barrel on the New York Mer- in Houston. “We’re kind of in commodity strategy at Saxo setting the stage for the reim- Brent last week temporarily Oil-market observers are cantile Exchange, after trading this grind” between $67 and Bank. position of economic sanctions crossed the $80 a barrel looking ahead to the weekend as high as $69.71 earlier in the $71, he added. Top buyers of Iranian on the Islamic Republic. Ana- threshold for the first time meeting in Algiers between session. Brent, the global Dollar-denominated com- crude, including China and In- lysts have estimated that more since May, returning to a more key OPEC members and Russia benchmark, closed down 4 modities like oil tend to have dia, already have begun to re- than one million barrels a day than 3½-year high, but soon for signs of whether the pro- cents to $78.05 a barrel. an inverse relationship with duce imports, potentially of Iran’s roughly 2.5 million retreated on news that rising duction allies will continue to Prices rose Monday morn- the greenback. The WSJ Dollar tightening global supply. Total barrels a day in exports could OPEC production had more raise output to meet the Ira- ing on a weaker U.S. dollar Index, which measures the U.S. exports of Iranian crude fell by be at risk. than made up for lost Iranian nian shortfall. Nasdaq Posts Worst Day Since July Treasurys End Lower

BY AKANE OTANI AND RIVA GOLD After Seesaw Trading BY DANIEL KRUGER the economy, he said. U.S. stocks slipped, sending Several analysts said yields the Nasdaq Composite to its U.S. government bond were unlikely to surge without biggest one-day loss since July, prices fell Monday as investors a change in inflation expecta- as fresh trade threats between analyzed conflicting data tions. The gap between yields the U.S. and China stoked cau- about the economy and Fed- on inflation-indexed 10-year tion among investors. eral Reserve policy. Treasurys and conventional Signs that the U.S. trade fight The yield on the benchmark government securities of the with China is set to escalate this 10-year Treasury swung back same maturity, known as the week capped stock gains and and forth before closing at break-even rate of inflation, sent the dollar 3.001%, the high- has recently hovered around MONDAY’S lower. The CREDIT est since May 23, 2.1 percentage points. The gap MARKETS Trump adminis- MARKETS from 2.992% Fri- reflects the bond market’s tration unveiled day. The high forecast for annual inflation

new tariffs on GIULIO NAPOLITANO/BLOOMBERG NEWS yield for the year during the life of the debt. $200 billion in Chinese goods. Amazon shares fell 3.2% after the company confirmed it is investigating suspected data leaks and bribes. is 3.109%, reached May 17. Investors are looking ahead Chinese officials have said they Yields rise as bond prices fall. to next week’s Fed meeting could pull out of trade talks if be truly problematic for the Yields briefly rose, then de- where policy makers are ex- Mr. Trump carried out his plans. economy and markets,” he said. Under Pressure clined, then climbed again, as in- pected to raise rates for the “The big question is what Shares of technology-focused Shares of technology-driven companies slid Monday, weighing on the vestor sentiment shifted against third time this year. Many in- happens with tariffs, because companies retreated, weighing S&P 500. a backdrop of a growing supply vestors expect officials to raise they’re the one thing people on the Nasdaq. of corporate and government rates in December, as policy 0% worry could cause the economy Amazon.com slid $62.16, or bonds. Investors were assessing makers have forecast. Expecta- to roll over,” said Brent Schutte, 3.2%, to $1,908.03 after the the importance of recent climbs tions are growing that the Fed chief investment strategist at company confirmed a Wall S&P 500 in wages, weakening price pres- will continue to increase rates Northwestern Mutual Wealth Street Journal report that it was –1 sures in other parts of the econ- at a steady pace in 2019, ana- Management. investigating suspected data Facebook omy and plans by U.S. officials lysts said. The Dow Jones Industrial Av- leaks and bribes of employees. to impose additional tariffs on “Everyone’s now focused on erage fell 92.55 points, or 0.4%, Twitter, whose price target was goods imported from China. the data,” said Brian Edmonds, to 26062.12, ending near its low lowered by an analyst at Mof- –2 Recent Labor Department head of Treasury trading at for the day. The S&P 500 lost fettNathanson, shed 1.26, or reports showed that average Cantor Fitzgerald LP. Investors 16.18 points, or 0.6%, to 2888.80, 4.2%, to 28.86, while Apple lost hourly earnings rose 2.9%, the no longer have the mind-set snapping a five-day winning 5.96, or 2.7%, to 217.88. fastest pace in August since that the Fed will raise rates ev- streak, and the Nasdaq Compos- Beyond trade, investors and –3 2009, but that inflation has yet ery quarter “no matter what,” ite dropped 114.25 points, or analysts are looking ahead to Amazon.com to take root throughout the he said. 1.4%, to 7895.79. next week’s Federal Reserve broader economy, as the con- meeting, where the central bank Even with Monday’s pull- –4 sumer-price index slowed last AUCTION RESULTS back, U.S. stocks remain near is expected to raise short-term Netflix month to 2.2%. 9:30 10 11 noon 1 2 3 4 Here are the results of Monday's Treasury auctions. records. Analysts have attri- interest rates for the third time Inflation poses a risk to the All bids are awarded at a single price at the market- THE WALL STREET JOURNAL. clearing yield. Rates are determined by the difference buted the market’s relative re- this year. Source: SIX value of long-term bonds be- between that price and the face value. silience to trade developments The WSJ Dollar Index, which cause it diminishes the future 13-WEEK AND 26-WEEK BILLS so far being incremental and measures the dollar against a pean Union. 0.9%. purchasing power of a bond’s 13-Week 26-Week Applications $141,004,614,800 $129,844,773,100 having a minimal impact on the basket of 16 currencies, fell The latest trade worries con- Analysts pointed to muted fixed principal and interest Accepted bids $48,000,062,300 $42,000,198,600 U.S. economy. 0.3%. tinued to hurt Asian stocks, trading volumes across the re- payments. " noncomp $1,053,199,800 $760,612,100 “We already have real trade Elsewhere, the Stoxx Europe with the Shanghai Composite gion resulting from Typhoon “Labor markets are still " foreign noncomp $251,000,000 $303,300,000 Auction price (rate) 99.462847 98.842278 issues,” but it doesn’t appear 600 swung between small gains falling 1.1% to its lowest level Mangkhut and a holiday in tightening,” said Dan Heckman, (2.125%) (2.290%) that the U.S. and China have and losses and ended up 0.1%. since November 2014 and Hong Japan, where markets were senior fixed-income strategist at Coupon equivalent 2.166% 2.349% Bids at clearing yield accepted 4.51% 32.91% reached the point of no return, Italy’s FTSE MIB Index rose 1.1% Kong’s Hang Seng dropping closed. Early Tuesday, the Nik- U.S. Bank Wealth Management. Cusip number 912796QP7 912796RC5 said Jason Ware, chief invest- as investors bet the country’s 1.3%. Early Tuesday, the Shang- kei was up 0.6%. “Businesses will have to pay up” Both issues are dated Sept. 20, 2018. The 13-week bills mature on Dec. 20, 2018; the 26-week bills mature ment officer at Albion Financial coming budget won’t set it on a hai benchmark was down 0.2% —Amrith Ramkumar to attract workers, leading wage on March 21, 2019. Group. “If we get there, that will collision course with the Euro- and the Hang Seng was down contributed to this article. inflation to infect other parts of B12 | Tuesday, September 18, 2018 THE WALL STREET JOURNAL. MARKETS Election Uncertainty Spurs Hedging BY GUNJAN BANERJI Though markets have been calm and the S&P 500 has risen this quarter, While the stock market has investors have increasingly turned to options to hedge stock bets. marched higher this quarter, investors are increasingly S&P 500 turning to options to protect their bets ahead of the U.S. 2850 midterm elections. Autumn tends to be volatile for equities, and this year, inves- tors are focused on a particular date: Nov. 6, when voters head 2800 to polls to determine whether Jan. Feb. March April May June July Aug. Sept. Republicans will maintain their slim control of Congress or lose ground to Democrats. Options prices on the S&P 2750 500 index show investors are taking protective steps against higher volatility the week of Nov. 6, according to a Wells Fargo Securities note last week. 2700 “It’s a significant event,” said Jeffrey Pavlik, chief in- The S&P 500 has gone 58 days without a move vestment officer of Pavlik Cap- greater than 1%, its longest stretch since January. ital Management, who over- The largest such streaks since December 1995 sees options strategies on 2650 exchange-traded funds. “You’re April 2014 - July ’14 62 bound to have some effect” if Dec. ’16 - Feb. ’17 55 the Trump administration’s pro-growth and business- May ’17 - Aug. ’17 58 friendly agenda is potentially 2600 Sept. ’17 - Jan. ’18 94 stymied, he said. While turbulence in the June ’18 - present 58 market has been low recently, with the S&P 500 up more than 6% so far this quarter, in- The gap between anticipated volatility in Traders are bracing for bigger stock moves The ratio of bearish options to bullish The fall months tend to be the most vestor expectations for volatil- the market versus the volatility that around the midterm elections on Nov. 6, contracts on the tech-heavy PowerShares turbulent for markets, based on the ity are elevated, partly due to actually occurred has widened recently. based on options prices. QQQ Trust has risen over the past month. average of the Cboe Volatility Index. the election, analysts said. S&P 500 expected weekly move Monthly average since 1990 For example, the S&P 500 has gone 58 days without a move of greater than 1%, the 35% Week ending 2.25 25 1.4% longest streak since January. Sept. 14 One-month implied volatility Meanwhile, investors have 30 Sept. 21 1.4 been loading up on hedges for One-month realized volatility 2.20 20 major ETFs that track small- 25 Sept. 28 1.5 cap, large-cap and technology Oct. 5 1.4 2.15 15 companies, analysts said. 20 An options measure known 1.5 as “skew” is elevated for the Oct. 12 15 tech-heavy PowerShares QQQ 2.10 Oct. 19 1.6 10 Trust and iShares Russell 10 2000 Index ETF, which tracks Oct. 26 1.7 small companies, according to 2.05 5 Trade Alert. Skew measures 5 Nov. 2 1.8 how expensive bearish put op- 2.2 tions are relative to bullish Nov. 9 0 2.00 0 call contracts. When it moves 1.6 higher, that signals investors JFMAMJJASNov. 16 August September J FMAMJ J A SOND are paying up for protection. Sources: FactSet (S&P 500); Dow Jones Market Data (streaks, VIX); Wells Fargo Securities (volatility, S&P 500 weekly moves); Trade Alert (QQQ options) THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Disney Should Weigh Hulu Sale OVERHEARD Pain Relief Disney may be better off Hulu, Disney also would be It seems like all the cool For Teva battling Netflix without Streaming Rivals boosting its competitors. Un- kids are doing it, but many Hulu. Domestic subscribers derstandably, it doesn’t seem were surprised to see that Investors The media giant will gain to favor this option after its the world’s largest beverage control of the video-stream- 60 million fierce bidding war with Com- company is considering dip- Generic-drug investors ing service as part of its ac- cast for the Fox assets. ping its toes into the canna- had an unfamiliar start to quisition of assets belonging 50 Netflix Second, it could buy out bis market. Maybe it isn’t so the week: good news that led to 21st Century Fox. But it Hulu its partners and control Hulu out of character. to a stock rally. still won’t have full owner- 40 outright. After losing the Fox Coca-Cola says it is mull- Teva Pharmaceutical In- ship, and Hulu’s losses are assets, though, Comcast ing beverages infused with dustries announced Friday mounting. Selling the unit 30 may be unwilling to give up CBD or cannabidiol, a nonpsy- evening that it had secured would be a straightforward Hulu too. choactive substance in mari- Food and Drug Administra- 20 way for Disney to cut debt That leaves a third option: juana that is purported to tion approval for its new an- and free up resources for its sell its 60% stake and focus have health benefits. The timigraine drug, Ajovy. Teva 10 own streaming endeavors. on its own platforms. Com- company reportedly is in talks shares rose 2.5% in New Hulu reported 20 million cast is the most obvious with Canada’s Aurora Canna- York on Monday. 0 U.S. subscribers in May, com- buyer. It needs Hulu more bis to develop the drinks. Ajovy sales won’t make or pared with 58 million for Q2 2012 Q2 ’14 Q2 ’16 Q2 ’18 than Disney does. Comcast Many forget, though, that break Teva’s fortunes. Pre- Netflix at the end of its latest Source: the companies THE WALL STREET JOURNAL. doesn’t own anything compa- the original recipe, as re- ventive migraine treatment quarter. Netflix also has 77 rable to Disney’s BAMTech flected in the product’s name, is a growing but competitive million international sub- Hulu will be just one of ing up ground with energies video-streaming technology. contained a far more potent market. Analysts at Leerink scribers while Hulu has yet several streaming projects at divided between three plat- A 60% stake in Hulu could and controversial drug still il- Partners expect annual Ajovy to venture abroad. Disney. In 2019, Disney is forms. fetch between $9 billion and legal in all 50 states: cocaine. revenue of $629 million by Hulu’s ownership is cur- launching two others, one for The company has three $12 billion, analysts say, alle- It was still legal, though, 2023—a small fraction of rently split four ways be- children and another for options. One is to roll all its viating some of the financial when the company decided Teva’s projected annual tween Disney, Fox and Com- adults, drawing on its library content and platform plans burden of the $71 billion to remove all but a trace sales. cast, with 30% each, and of Fox content and Disney into Hulu, which has the ben- Fox deal. amount of the drug. Teva, unlike generic com- AT&T, which owns 10%. classics. efit of at least some steady Disney may end up con- That still helped it com- petitors, benefits from a hy- Comcast’s most recent quar- Disney is the only media subscribers, rather than cluding that the managerial mercially, though—a situation brid model with some origi- terly report logged a $107 company posing an existen- building other platforms headache of juggling sepa- that may repeat itself if cus- nal drugs like Ajovy. It will million loss for its Hulu tial threat to Netflix, given from the ground up. Yet Dis- rate streaming projects and tomers who have shunned carry higher profit margins stake, while Fox put its loss its vast library and media ney would have to contend working alongside Comcast fizzy drinks pick one up be- than the bulk of Teva’s prod- at $127 million. That sug- budget. Yet Netflix has a big with minority stakes owned and AT&T isn’t worth the cause of the proposed new uct portfolio, helping to gests annual losses in the re- lead and loyal subscribers. by Comcast and AT&T. That benefit of Hulu’s head start. ingredient. counter the effects of falling gion of $1.5 billion. Disney might struggle mak- means that in expanding —Elizabeth Winkler generic-drug prices. That trend has hammered Teva’s profit margins and, in turn, its stock price, which is down 70% from its 2015 Collapsing Investment Doesn’t Mean Collapsing China high. Higher profit margins Infrastructure investment oned by Chinese President Xi power and heat, slowed to a but state-owned company also should also help reduce in China is nose-diving and Jinping. But two other im- Property Prospers record low of 4.2%. But prop- defaults have been rare and Teva’s $30 billion debt load bears are roaming the portant drivers of the econ- Change from a year earlier erty developers’ year-to-date so have property-related more quickly. Shanghai Stock Exchange. omy—state-owned firms and funding actually rose 6.9% on ones. Problems for private Beyond the immediate fi- Does that mean that Presi- real estate—are doing well. 30% Infrastructure the year, according to ANZ, industry matter far less for nancial impact, the news is a investment* dent Trump’s planned tariffs As long as real estate holds 20 the second straight month of Chinese bank balance sheets big win for Chief Executive on another $200 billion of up, a sharp slowdown re- acceleration. than the health of the heav- Kare Schultz, who took the Chinese imports, which could mains unlikely. 10 While infrastructure is im- ily leveraged state and real- top job last fall. Teva had be announced any day, will Real estate is thriving 0 Property portant to Chinese growth, estate sectors. disappointed investors all be enough to nudge the Chi- thanks to a massive Beijing- investment real estate is far more im- Things could get tougher too often in recent years. nese economy over the financed apartment-buying –10 portant. Sky-high land prices early next year, particularly Missing guidance for key op- brink? program for “slum dwellers,” 2012 ’13 ’14 ’15 ’16 ’17 ’18 and tweaks to China’s statis- since policy makers are now erational and financial fore- Maybe not. There is a risk which has kept inventories *Excludes power and heat tical methodology make the dialing back the critical slum casts had become the norm. that American trade negotia- near multiyear lows. That Source: CEIC headline property investment redevelopment program. But Winning regulatory approval tors, watching the forest, are helps prices keep rising, even data hard to interpret. But for now, the message ema- for Ajovy was anything but missing some important— though sales growth has explosion of asset-backed se- the message from property- nating from China is still a certain so the market’s reac- and still rather healthy— been trending sideways. curities. Overall shadow related industry is that for relatively mild slowdown. In- tion is warranted. trees. Developers also have credit outstanding fell 3.8% now, things remain healthy. vestors hoping for wholesale Mr. Schultz’s rebuilding Infrastructure and small- proven adept at finding ways on the year in August, and This also matters for fi- capitulation on trade or a efforts are in their early scale private industry are around restrictions on infrastructure investment nancial vulnerability. Several 2015-style massive stimulus stages, but investors can suffering from the shadow- shadow banking. One helpful growth in the first eight private firms have defaulted will likely be disappointed. point to some tangible prog- banking crackdown champi- development has been the months of the year, excluding on bond payments this year, —Nathaniel Taplin ress. —Charley Grant