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****** TUESDAY, AUGUST 21, 2018 ~ VOL. CCLXXII NO. 43 WSJ.com HHHH $4.00

DJIA 25758.69 À 89.37 0.3% NASDAQ 7821.01 À 0.1% STOXX 600 383.23 À 0.6% 10-YR. TREAS. À 14/32 , yield 2.823% OIL $66.43 À $0.52 GOLD $1,186.80 À $10.30 EURO $1.1484 YEN 110.07 What’s Long Wait Ends With an Embrace for Separated Korean Families U.S. News Toughens

Business&Finance Stance

esla’s tumultuous year On China Thas fueled concern among some suppliers about the electric-car maker’s fi- Tariffs nancial strength, after pro- duction of the Model 3 BY BOB DAVIS drained some of its cash. A1 AND ANDREW DUEHREN PepsiCo agreed to buy WASHINGTON—The Trump seltzer-machine maker administration is moving SodaStream for $3.2 billion, closer this week to levying tar- the company’s latest move iffs on nearly half of Chinese to broaden its offerings. A1 imports despite broad opposi- Tyson Foods struck a tion from U.S. business and deal to acquire Keystone the start of a fresh round of Foods, a top meat supplier talks between the U.S. and to McDonald’s and other China aimed at settling the chains, for $2.16 billion. B1 trade dispute. The twin administration ini- France’s Total is having tiatives—pursuing tariffs on difficulty unloading its $200 billion of Chinese goods stake in a $5 billion natu- while relaunching talks to ral-gas project in Iran to a scrap tariffs—reflect a split Chinese partner. B1 within the U.S. administration.

ConocoPhillips and LEE JI-EUN/YONHAP/ASSOCIATED PRESS Negotiators in the U.S. Trea- Venezuela’s PdVSA agreed DECADES APART: 92-year-old Lee Keum-seom embraced her son, Ri Sang Chol, 71, of North Korea at a reunion Monday. Dozens of sury Department are offering a on a payment plan over a elderly South Koreans crossed the border for the gathering in the north to see relatives for the first time since the Korean War. A16 carrot, while the office of the $2 billion arbitration award U.S. trade representative for the U.S. company. B3 threatens with a stick, both with the approval of President The Dow rose 89.37 Trump, according to people fa- points to 25758.69, its high- miliar with the administra- est level since early February. Some Suppliers Worry About Tesla tion’s internal deliberations. The S&P 500 and the Nas- “Trump is a deal guy,” said daq also notched gains. B11 Vendors are asked to supplied to Tesla. Tesla with components, tool- one person closely following Some CPAs are oppos- By Tim Higgins, Tesla has improved its on- ing of manufacturing parts and the talks. Until the Chinese ing a move to allow people offer rebates or give Marc Vartabedian time payments to production- services such as building con- make a concrete offer, the per- from outside their ranks to the company more and Christina Rogers related suppliers to about 95% struction. Taken together, the son said, Mr. Trump will en- be credentialed to help firms from 90% last year, according survey, interviews and docu- courage both camps to main- value complex assets. B1 time to make payments 22 respondents believe that to people familiar with the ments show some suppliers tain their current efforts. Tesla is now a financial risk to matter. For nonproduction are anxious about Tesla’s abil- Mr. Trump, a Republican, Farfetch filed plans for Tesla Inc.’s tumultuous year their companies, according to suppliers, Tesla is paying on ity to pay them back. continues to take a skeptical, an IPO, looking to seize on has fueled concern among the document reviewed by The time about 80% of the time, “Regarding Tesla, any time hawkish view toward Beijing, optimism about the surge in some of its suppliers about the Wall Street Journal. the people said. there is uncertainty in the said U.S. officials. At a fund- luxury online retailing. B4 auto maker’s financial strength Separately, several suppliers “We’re not behind because marketplace, it causes con- raiser on Friday in the tony Lannett shares plunged after production of the Model in interviews said Tesla has we can’t pay them,” Tesla cerns for suppliers,“ said Julie Hamptons section of New 60% after it said a distri- 3 car drained some of its cash, tried to stretch out payments Chief Executive Elon Musk said Fream, the chief executive of York’s Long Island, he focused bution pact with a supplier according to industry execu- or asked for significant cash in an interview Friday. “It is the Original Equipment Suppli- PleaseturntopageA7 won’t be renewed. B3 tives and documents. back. And in some cases, pub- just because we’re arguing ers Association, which sent the A recent survey sent pri- lic records show, small suppli- whether the parts are right.” survey in the past few weeks— Trump points to Fed chief in Merrill Lynch will pay vately by a well-regarded auto- ers over the past several The suppliers collectively a period that encompassed new complaint on rates...... A2 $8.9 million to settle charges motive supplier association to months have claimed they represent a sliver of the hun- Tesla’s second-quarter earn- Gerald F. Seib: President steps it failed to disclose a conflict top executives found that 18 of failed to get paid for services dreds of vendors that provide PleaseturntopageA2 on his own good news...... A4 of interest, the SEC said. B10 World-Wide Putin’s Secret Weapon: Pope Francis Speaks Out on Abuse The Trump administra- tion is moving closer to levying tariffs on nearly half His Central Banker of Chinese imports despite broad opposition from U.S. business and the start of a fresh round of talks be- Elvira Nabiullina has unusual independence over economic policy tween the U.S. and China. A1 The administration BY ANATOLY KURMANAEV U.S. and Europe from Syria to Ukraine, it’s her moved to overturn Obama- job to shore up the economy against volatile oil era environmental rules on ST. PETERSBURG—After Russia’s central- markets and sanctions. Russia’s ability to con- power-plant emissions, an bank chief, Elvira Nabiullina, moved to shut tinue its quest rests in large part on whether action designed to help coal- down a large lender last year for allegedly fal- Ms. Nabiullina can keep the financial system burning plants compete. A3 sifying accounts, the nation’s top prosecutor’s stable. Russian hackers are wid- office issued an order to leave the bank alone. Given Russia’s messy, corruption-filled bank- ening their targeting for the She closed it anyway. ing system, that is a challenge. She has strug- midterm elections to include In her five years in office, Ms. Nabiullina has gled to regulate some state banks, analysts the Senate and conservative closed hundreds of weak banks, stymied the said, and her job has grown more difficult with FILIPPO MONTEFORTE/AGENCE FRANCE-PRESSE/GETTY IMAGES groups, Microsoft says. A4 exodus of Russian wealth abroad and trans- looming new U.S. sanctions against Moscow for ‘With shame and repentance, we Trump told donors he is formed monetary policy to bring inflation to a nerve-agent attack against a former Russian unhappy with the Federal record lows. That has earned her an unusual spy in the U.K. Moscow has repeatedly denied acknowledge as an ecclesial community that Reserve’s recent interest- amount of freedom to make tough decisions, involvement. we were not where we should have been.’ rate increases and raised even if that means treading on powerful inter- Ms. Nabiullina has earned public praise from ests. Mr. Putin, who rarely commends subordinates, doubts about Powell. A2 Thinking of Ms. Nabiullina merely as a cen- as well as from abroad. Last year at the Krem- In a letter, the pope calls for improved efforts Kavanaugh’s stance on tral banker understates the significance of her lin, Mr. Putin told her that “under your leader- to protect children. A7 executive power is expected role. As President Vladimir Putin bids to return ship, the central bank has done a great deal to to be a focus of the high Russia to great-power status, challenging the PleaseturntopageA8 court nominee’s meetings with Democratic senators. A3 Phish Fans Are Usually Peaceable Pope Francis,inaletter INSIDE PepsiCo Buys Seltzer to Catholics world-wide, ex- pressed shame and repen- —Until the Tarps Come Out tance over the sexual abuse iii Rival That Vilified It of children by priests. A7 Much of Greek society Tempers flare when concert-goers grab BY JENNIFER MALONEY remains beset by pessimism AND SAABIRA CHAUDHURI Bubbling Up and anger despite the coun- choice space; ‘What have we become?’ U.S. sparkling-water consumption try’s exit from an interna- PepsiCo Inc. has agreed to has grown sharply in recent years. tional financial bailout. A6 BY IRA IOSEBASHVILI Tobey, a 37-year-old podcast buy one of its fiercest critics, producer from Minneapolis seltzer-machine maker Soda- Domestic sparkling water, Korean families separated volume sold for decades were reunited Nathan Tobey went to a who has been to 70-odd shows. OUT OF Stream International Ltd., for as Seoul and Pyongyang Phish concert hoping to enjoy “I had to assert—as a fellow ‘AFRICA,’ A HIT $3.2 billion, the latest move by 800 million gallons pushed ahead with humani- the medley of song improvisa- fan—that this is not fair.” the beverage-and-food giant to tions and laid-back vibes that Fans fight about “tarping” broaden its offerings beyond 600 tarian engagement. A16 REBOOTS have drawn followers to the pretty much anywhere there is sugary sodas and salty snacks. The Taliban accepted a band for more than three de- a band on stage and general- Israel-based SodaStream 400 Russian invitation to join cades. Instead, he found him- admission seating up for grabs. LIFE & ARTS, A9 makes countertop machines regional talks on Afghani- self in the middle But easygoing that allow consumers to car- 200 stan’s future that are likely of a vicious battle Phish fans—or bonate tap water at home by to exclude the U.S. A7 for real estate. Phans, as the tie- filling a reusable bottle and 0 When the gates dyed die-hards are adding flavors if desired. As 2000 ’10 CONTENTS Opinion...... A13-15 at Virginia’s Hamp- known—fighting? consumers have shifted from Source: Beverage Marketing Corp. Business News... B3,5 Sports...... A12 THE WALL STREET JOURNAL. Capital Journal...... A4 Streetwise...... B1 ton Coliseum fi- That’s a bummer, sugary soft drinks to bottled Crossword...... A10 Technology...... B4 nally opened after man. water, the Nasdaq-listed com- Heard on Street.. B12 U.S. News...... A2-4 an hourslong wait, Schooled Phish, currently pany has pivoted to promote it- luting the environment. Life & Arts...... A9-11 Weather...... A10 Mr. Tobey rushed on a normally self as a maker of homemade “Shame on PepsiCo,” Soda- Markets...... B11-12 World News... A6-7,16 to stake out a choice seat on cheery summer tour, has sold seltzer rather than a maker of Stream Chief Executive Daniel the first row of the balcony. more than eight million albums COLLEGE homemade soda. Birnbaum said last year when > Seconds before he got there, and DVDs in the U.S. since The deal creates somewhat the soda giant launched its another fan swooped in and emerging from the Vermont FOOTBALL’S of an awkward pairing. Soda- premium bottled-water brand covered the entire row with a college-rock scene in the 1980s, BEST BATTER Stream has singled out PepsiCo LIFEWTR. “I’ll say it till I’m giant tarp, grabbing all eight drawing a flock with a chilled- and other beverage companies PleaseturntopageA4 seats. out, neo-hippie ethos. As the in public statements and adver- s 2018 Dow Jones & Company, Inc. All Rights Reserved “I’m a very mellow guy, but band’s security procedures SPORTS, A12 tising campaigns criticizing Heard on the Street: Pepsi is we had some words,” said Mr. PleaseturntopageA8 bottled-water makers for pol- right to splurge on deal..... B12 .

A2 | Tuesday, August 21, 2018 ****** THE WALL STREET JOURNAL. U.S. NEWS Trump Points to FedChief in New Complaint on Rates BY PETER NICHOLAS 1.75% and 2%. Officials are ex- Mr. Powell has been follow- AND NICK TIMIRAOS Head Economist and forecasting of the domestic pected to raise them in quarter- ing through on gradual rate in- economy and financial markets. percentage-point increments at creases started by Ms. Yellen in President Trump told donors Will Step Down Staff economists at the Fed meetings in September and De- December 2015. he is unhappy with the Federal produced overly optimistic fore- cember, and have projected in- Some of Mr. Trump’s politi- Reserve’s recent moves to in- casts for U.S. economic growth creases to around 3.4% by cal advisers worry that if the crease interest rates and raised The Federal Reserve Board during the earlier years of Mr. 2020. Fed continues to raise rates, doubts about the man he said its head economist will re- Wilcox’s tenure. Last year, how- Mr. Trump last year chose economic growth and job cre- placed in charge of the institu- tire at the end of 2018, in what ever, they correctly predicted Mr. Powell to succeed Fed ation might slow just as his re- tion, Jerome Powell, people in would be the most significant that an inflation slowdown Chairwoman Janet Yellen. In an election campaign kicks in. attendance at a fundraising change in a senior staff position would prove temporary, a key interview with Reuters on Mon- “It’s very difficult for re- event said. since Chairman Jerome Powell projection that encouraged offi- day afternoon, Mr. Trump said election in 2020,” one person Mr. Trump said his advisers took office in February. cials to continue raising rates he hadn’t decided whether he close to the White House said. told him last year that Mr. Pow- David Wilcox plans to step David Wilcox even though inflation was below made the right call to promote A spokeswoman for the Fed- ell would support “cheap down after a seven-year stint as the 2% target. Mr. Powell. eral Reserve declined to com- money” as the Fed’s chairman, director of research and statis- bank outside the committee “David’s depth of expertise “Am I happy with my ment. A spokeswoman for the and then Mr. Powell surprised tics at the Fed board and 30 that votes to set interest rates. and wise counsel have helped choice?” he said. “I’ll let you White House didn’t respond to him by embracing rate in- years of total service at the The Fed’s research director is re- guide the Federal Reserve know in seven years.” a request to comment. creases, which the president central bank, the board said. sponsible for briefing the com- through a time of unprece- Mr. Powell has a four-year In making known his con- fears will cool off the fast- As research director, Mr. Wil- mittee on the outlook for the dented challenges,” Mr. Powell term and can’t easily be re- cerns about the Fed’s rate in- growing economy. cox has fulfilled one of the most U.S. economy, overseeing 350 said in a statement. placed by a dissatisfied presi- creases, Mr. Trump is also lay- “That can only happen to important roles at the central employees who produce analysis —Paul Kiernan dent. ing out a defense in the event Trump,” the president said rue- Higher rates are meant to that the economy stumbles, one fully at the event Friday in New prevent the economy from person close to the White York’s Long Island, according to with increasing frequency in re- month, according to a person White House and the central overheating and causing infla- House said. one person familiar with the cent weeks. He has also grown who attended, and before that bank as the Fed proceeds with tion or a financial bubble. They “He wants to get it out that matter. more vocal publicly, expressing once on Twitter and in a televi- long-planned increases in also have the effect of slowing the Fed is to blame, rather than Mr. Trump, who supported his misgivings over the Fed’s sion interview. short-term rates. economic growth when pushed some deficiency with him or his easy-money policies during the policies to chief executives The president’s growing dis- The Fed has raised rates high enough. Some past Fed policies or anything you can 2016 campaign, has voiced his meeting at his golf club in Bed- content could become a precur- twice this year, most recently rate-increase campaigns have rightly hold the president re- concerns privately to advisers minster, N.J., earlier this sor to clashes between the in June to a range between even led to recession. sponsible for,” this person said. U.S. WATCH Funeral Held for Firefighter Killed in Northern California Wildfire

NORTH CAROLINA nose was pointed downward, these people said, smashing Confederate Statue into a sparsely inhabited island Toppled at Campus near Seattle on the evening of Aug. 10. Mr. Russell, 28 years A Confederate statue in the old, died in the fiery crash, heart of North Carolina’s flagship which has prompted govern- university was toppled Monday ment, airline and airport offi- night during a rally by hundreds cials to reassess employee of protesters who decried the screening and aircraft security memorial known as “Silent Sam” issues nationwide. Information as a symbol of racist heritage. downloaded from the Bombar- The crowd gathered across dier Inc. Q400’s flight-data re- the street from the University of corder shows both of its en- North Carolina Chapel Hill plaza gines were putting out power for a series of speakers before and the plane hadn’t exhausted heading over to the quadrangle. its fuel supply. Then, about two hours into the The Federal Bureau of Inves- protest, a group surrounded the tigation, which is heading the statue and pulled it down, ac- probe, declined to comment cording to television footage. pending further analysis of evi- Gov. Roy Cooper had called dence. for removing Silent Sam and —Andy Pasztor other rebel symbols on public and Andrew Tangel land. Still, the Democratic gover- nor issued a statement on Twit- TEXAS ter arguing the protesters took

the wrong approach to removing Shooter, Manager Die RICK BOWMER/ASSOCIATED PRESS the statue. The university in Warehouse Attack HUGE LOSS: The life of Battalion Chief Matthew Burchett was honored Monday in West Valley City, Utah. He was struck by falling debris. echoed the sentiment. “Tonight’s actions were dangerous, and we An employee opened fire at a are very fortunate that no one Houston-area food distribution was injured.” center early Monday, killing a “If there was any doubt in from 9% to 20% of what the —Associated Press company manager and wounding SomeTesla our suppliers in the first place Leaky Vehicle company paid dating back to another worker, police said. that should definitely be Tesla's free cash flow 2016, according to people fa- HORIZON AIR CRASH The shooter, identified by po- strongly extinguished, with our miliar with the requests. In one $0.50 billion lice as Kristine Peralez, 38 years Suppliers commentary and our results email to a supplier reviewed by Investigators Believe old, was also killed in the attack, and the ramp-up of our pro- 0.25 -$740 million the Journal, Tesla asked for Pilot Was Suicidal which happened around 2:30 duction,” Mr. Ahuja said. 0 help to make “an immediate a.m. at the Ben E. Keith facility AreWorried All of the respondents to the impact” by providing a rebate Federal investigators have in Missouri City, about 15 miles survey said they wanted to –0.25 on products already purchased. tentatively determined the southwest of Houston. ContinuedfromPageOne sustain or grow their business –0.50 Tesla has said the rebates ground-services worker who “We actually had an officer ings and Mr. Musk’s announce- with the auto maker, and none –0.75 applied to less than 10 capital- stole an empty Horizon Air tur- that engaged the shooter,” Police ment on Twitter that Tesla had wanted to exit. equipment suppliers. Mr. Ahuja boprop this month ended up Chief Mike Berezin said. secured funding for a plan to Delays in the production of –1.00 stressed that production-re- crashing the airliner in a suicidal “Whether or not the shooter ac- go private. the Model 3 drained Tesla’s –1.25 lated suppliers—those it de- dive, according to people familiar tually was hit by one of our offi- The survey was sent to cash, which fell by $1.13 billion –1.50 pends on to keep cars coming with the probe. cer’s bullets or if it was self-in- members of the Original Equip- in the first six months of the off the assembly line—weren’t Horizon Air employee Rich- flicted, we’re not totally sure at ment Suppliers Association’s year to $2.24 billion. –1.75 asked for rebates, but instead ard Russell was at the controls this point.” council, which is made up of Tesla’s current cash picture 2015 ’16 ’17 ’18 Tesla is seeking to get costs re- when the twin-engine aircraft’s —Associated Press lead North American sales ex- looks similar, according to duced on future work. Note: Defined as operating cash flow less ecutives representing about 100 company records reviewed by capital expenditures Eleven of 23 responding suppliers. It isn’t known how the Journal and to people fa- Source: FactSet suppliers in the survey said many exactly were surveyed. Of miliar with the situation. THE WALL STREET JOURNAL. Tesla had asked them to extend the 35 that responded, 23 were Tesla’s cash and cash equiv- payment terms. current or past Tesla suppliers. alents fell to $1.69 billion as of the second half of the quarter, Mr. Ahuja said it is normal Some respondents didn’t an- Aug. 12, according to the re- is expected to leave it with sev- for auto makers to ask for bet- swer all questions. cords. That was largely be- eral hundred million dollars ter terms as the business im- In the interview, Mr. Musk cause it repaid $500 million of more in cash at the end of Sep- proves. and financial chief Deepak Ahuja a revolving credit line in July. tember compared with three Public records show 16 com- said Tesla’s financial strength is Tesla plans to tap that same months earlier, according to panies since October have improving and it remains on amount again later this quar- the records. taken the unusual step of filing track to be cash-flow positive ter, according to the records. To conserve cash, Tesla has mechanic’s liens—or legal and profitable in the current That, plus additional cash flow asked some of its capital- claims seeking unpaid compen- quarter. They said relations with that Tesla anticipates from an equipment suppliers in recent sation—against Tesla claiming its suppliers are good. increase in vehicle deliveries in weeks for cash back ranging bills haven’t been paid for sup- plies and services. Previously, only four liens had been filed THE WALL STREET JOURNAL CORRECTIONS AMPLIFICATIONS against Tesla in all of 2015 and (USPS 664-880) (Eastern Edition ISSN 0099-9660) 2016 combined. (Central Edition ISSN 1092-0935) The liens were mostly filed (Western Edition ISSN 0193-2241) Thomas Cooke is a demog- ters for kindness and thought. this year in Alameda County, Editorial and publication headquarters: rapher at the University of Con- Calif., by small subcontractors 1211 Avenue of the Americas, necticut who studies U.S. mobil- Robert Salmon’s last name against Tesla and contractors New York, N.Y. 10036 Published daily except Sundays and general ity patterns. A Page One article was misspelled as Sammon in of the auto maker, primarily legal holidays. Periodicals postage paid at Monday about fewer Americans an Off Duty article Saturday for providing work at the com- New York, N.Y., and other mailing offices. relocating for new jobs incor- about cologne. pany’s Fremont factory. Some Postmaster: rectly said he is a sociologist. of the suppliers have since Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. Roughly 4,379 retail stores been paid, and the total out- All Advertising published in The Wall Street Afghanistan’s president pro- have shut in the U.S. this year standing dollar amount of Journal is subject to the applicable rate card, posed a conditional three-month through Aug. 10, according to claims is relatively small, total- copies of which are available from the cease-fire in the government’s Coresight Research. A Page One ing nearly $8 million, accord- Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New U.S.-backed war against the Tal- article Friday about the perfor- ing to the documents. York, N.Y. 10036. The Journal reserves the right iban. In some editions Monday, mance of retailers incorrectly Liens filed by suppliers not to accept an advertiser’s order. Only a World-Wide item incorrectly said about 4,375 U.S. stores have against auto makers are rare, publication of an advertisement shall constitute final acceptance of the advertiser’s order. said it was a U.S.-based war. shut since the beginning of 2017. say industry specialists. Letters to the Editor: Mr. Ahuja, Tesla’s CFO, said Fax: 212-416-2891; email: [email protected] A slogan on one of the main Panasonic Corp. and Tesla it would be wrong to see the buildings in the political re-edu- Inc. say they never had a con- liens by subcontractors as a NEED ASSISTANCE WITH cation camp in Turpan, China, tract under which Tesla agreed sign of financial distress. “It is YOUR SUBSCRIPTION? reads: “Sense the party’s kind- to buy all the output from a so- an issue between the subcon- By web: customercenter.wsj.com; ness, obey the party’s words, lar-panel factory they operate tractor and contractor,” he By email: [email protected] follow the party’s lead.” A in Buffalo, N.Y. A Technology said, adding that it is common By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat World News article Saturday article Friday about the two practice for subcontractors to about China’s detention of Mus- companies, based on a Pana- name the manufacturer in a REPRINTS & LICENSING lims incorrectly said the slogan sonic spokeswoman’s statement lien to create pressure on it. began with the words “sense that the company later re- In an email on Friday to the By email: [email protected] By phone: 1-800-843-0008 the party’s thought” owing to a versed, said they had an exclu- Journal, Mr. Musk said, “We similarity in the Chinese charac- sive supply contract. are definitely not going bank- GOT A TIP FOR US? rupt.” SUBMIT IT AT WSJ.COM/TIPS Readers can alert The Wall Street Journal to any errors in news articles by —Mike Colias emailing [email protected] or by calling 888-410-2667. contributed to this article. .

THE WALL STREET JOURNAL. ** Tuesday, August 21, 2018 | A3 U.S. NEWS

Coal still produces the most carbon emissions in the power sector even though its use has declined dramatically. Power-Plant Wash. Maine Mont. N.D. Minn. Vt. Ore. N.H. Wis. Mass. Rules Set Up Idaho S.D. N.Y. Wyo. Mich. R.I. Iowa Pa. Neb. Conn. Nev. Ohio Ind. N.J. Utah Ill. Legal Fight Calif. W.Va. Del. Colo. Va. Md. BY TIMOTHY PUKO Kan. Mo. mandate costly technological Ky. D.C. overhauls at coal plants. While N.C. The Trump administration the Clean Power Plan was de- Tenn. moved to overturn Obama-era signed to reduce greenhouse Ariz. Okla. N.M. Ark. environmental rules on power- gases and fight the cause of cli- S.C. plant emissions, a long-tele- mate change, the Trump ad- Miss. Ala. Ga. Share of electricity graphed action designed to ministration cast the regula- La. produced by coal, 2017 help coal-burning plants com- tion as setting unfair rules that Texas pete with natural gas and other coal plants wouldn’t be able to 0% 25 50 75 100% cleaner alternatives as a na- meet. Alaska tional energy source. “The entire Obama adminis- Fla. Andrew Wheeler, President tration plan was centered Hawaii Trump’s acting administrator around doing away with coal,” of the Environmental Protec- Mr. Wheeler said in an inter- tion Agency, on Monday signed view. a proposal to scrap environ- Coal has long been a pri- Power-sector emissions in 2017, millions of metric tons of carbon dioxide Carbon dioxide emissions by sector mental restrictions on power mary source of power in the Petroleum 3 billion metric tons plants and leave much of the U.S., but in recent years it has 28.3 Fuel oil/distillate regulation of the industry to faced stiff competition 2 Transportation states. The move is the from cheaper and 9.2 Electric Power agency’s first under Mr. Trump cleaner alterna- 1 Other to detail how it will regulate tives. As a Coal the power-sector carbon emis- result, the ul- 1,207.4 sions that contribute to climate timate effect 0 Natural gas change, and it sets up months of the Trump 2001’05 ’10 ’15 ’17 of public and legal reviews, and EPA move 505.8 potentially a yearslong court could be lim- Electricity generated battle. ited. The 2billion megawatt hours Environmental groups are agency’s own plotting a challenge, saying the numbers Natural gas proposal at best provides mini- forecast the 1 Coal mal legal cover for a 2007 Su- power sector’s coal Nuclear preme Court decision requiring consumption to keep the agency to regulate carbon shrinking under this proposal, 0 emissions as a pollutant. They though at a slower rate. Coal- Source: U.S. Department of Energy Petroleum will likely seek to reinstate the industry leaders say they need Erik Brynildsen and Dylan Moriarty/THE WALL STREET JOURNAL. 2001 ’05 ’10 ’15 ’17 major changes to how whole- sale markets operate to make tion, said Hal Quinn, president Environmentalists have Power Plan, noted the influ- which fuels should be part of coal more competitive. and chief executive of the Na- criticized the administration’s ence of climate change is be- their electricity system. The EPA proposed Power companies have al- tional Mining Association. conclusions. Coal emissions coming tangible—deadly heat Mr. Trump has made sup- scrapping restrictions ready said they expect to keep The Clean Power Plan “was from the power sector are one waves and rising sea levels— port of the coal industry a up a large-scale shift to cleaner a major impediment for our in- of the nation’s biggest sources and said the new proposal’s central part of his platform, on plants and leaving fuels. Natural gas is cheaper dustry going forward in terms of the greenhouse gases that scaled-back mandates do little embracing donors from the in- regulation to states. today than coal, and its supply of what our markets look like,” cause climate change, and the to address it. dustry and hosting coal min- is still growing rapidly, while Mr. Quinn said. “This removes proposal could increase car- “That is essentially a huge ers at the White House. prices for wind and solar keep that pressure.” bon emissions by helping coal- gimme to coal-power plants “Obviously the president dropping, too. Mr. Trump’s energy team burning plants to run harder by giving them a free pass,” thinks he appeals to his base Obama-era policy, called the Roughly 40% of the nation’s has argued that coal is a cru- and stay open longer. Coal is she said. by talking about bringing back Clean Power Plan, which itself coal-fired power plants have cial fuel source and that its de- also a leading contributor to While the proposal meets coal,” said David Doniger, se- is hung up at the Supreme shut or announced plans to cline is a threat to the ability human health problems. many of the headline demands nior strategic director of cli- Court in a case about whether close, according to the Ameri- of electricity distributors to Obama-era EPA leadership the coal industry has made for mate and clean energy at the it was illegally broad. can Coalition for Clean Coal supply businesses and consum- said Monday that their moves years, Mr. Wheeler, himself a Natural Resources Defense The new plan recommends a Electricity, a trade group. ers. The Energy Department were a careful effort to follow former coal industry lobbyist, Council and former director of menu of upgrades designed to The worst of that fall is has made similar arguments in a legal requirement to regu- denied it is designed to save climate change policy at the let coal-fired plants pro- past, but the proposal is most separate proposals to help late carbon emissions. Gina coal. Instead, he stressed the Clinton-era EPA. “But the poli- duce energy with less fuel and likely just enough to help sup- struggling coal and nuclear- McCarthy, the administrator effort gives the states author- cies are not going to bring seeks to eliminate triggers that port the industry’s stabiliza- plant operators. who approved the Clean ity to make determinations on back coal.” Kavanaugh to Face Questions on Probes of Presidents BY NATALIE ANDREWS crats, including Senate Minor- Mr. Trump has denied any ton had committed perjury. Later, Judge Kavanaugh rono (D., Hawaii), saying it is ity Leader Chuck Schumer of wrongdoing and the Kremlin A 1998 memo lists sexually wrote a law review article in striking to her how “gung ho” WASHINGTON—Supreme New York and Sen. Claire Mc- has denied interference. explicit questions he wanted 2009 that argued Congress he was to go after Mr. Clinton. Court nominee Brett Ka- Caskill of Missouri. He also On Monday, the National Mr. Starr to ask, saying Mr. should pass a law that would The National Archives also vanaugh plans to continue to plans to meet with Republican Archives released a memo in Clinton “should be forced to temporarily defer civil suits posted more than 10,000 pages meet with Democratic sena- Sen. Susan Collins of Maine. which Judge Kavanaugh said account for all of that and to and criminal probes involving of material from Judge Ka- tors this week, with his stance Democrats are looking at he was opposed to giving defend his actions.” a president while in office. vanaugh’s time with Mr. Starr. on executive power expected how Judge Kavanaugh might then-President Clinton any Judge Kavanaugh wrote Democrats say the memo While excerpts of the explicit to be a central focus. rule in any legal case emerging “break” in questions regarding that if the questions weren’t highlights how he has shifted memo have been published, On Monday, Judge Ka- from the special counsel’s his affair with Monica Lewin- asked, Mr. Starr would be “fail- on his position on executive the full memo was posted by vanaugh met with California probe into any possible collu- sky. At the time, Judge Ka- ing to fulfill our duty to the power. The nominee’s hearing the National Archives in its re- Sen. Dianne Feinstein, the top sion between the Trump presi- vanaugh worked as an associ- American people if we will- is slated for Sept. 4. sponse to a Freedom of Infor- Democrat on the Judiciary dential campaign and Russia, ate counsel for independent ingly ‘conspire’ with the Presi- “I think he’s definitely mation Act lawsuit by Fix the Committee. On Tuesday, he as well as any obstruction of counsel Ken Starr, who was in- dent in an effort to conceal the changed his mind” on execu- Court and requests by media plans to meet with five Demo- justice by President Trump. vestigating whether Mr. Clin- true nature of his acts.” tive power, said Sen. Mazie Hi- organizations.

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A4 | Tuesday, August 21, 2018 PWLC101112HTGKBFAM123456789OIXX ****** THE WALL STREET JOURNAL. U.S. NEWS The President Steps on His Own Good News the bad and controversial. That would make Mr. Trump the 45th president (out of 45) who has made that complaint. It goes with the territory. In fact, Mr. Trump almost compels the press to cover CAPITAL JOURNAL stories that infuriate him by refusing to ignore them him- By Gerald F. Seib self. His almost daily attacks on Mr. Mueller are actually keeping a spotlight on his in- Let’s imagine for a mo- quiry. When the president is ment a parallel universe in publicly attacking a special which President Trump last counsel, or FBI agents, or a week didn’t call a onetime former CIA chief, by name, top female aide a “dog,” re- that is not a story that can voke the security clearance or should be ignored. of a former director of the Central Intelligence Agency, reasonable gauge of author 10 tweets attacking this president’s public Federal Bureau of Investiga- A messaging is his tion officials, Twitter feed, and there the or unleash 11 count over the past week is others criti- as follows: Tweets on the cizing aspects disputes regarding the of the investi- Mueller investigation, the gation of spe- security clearance of former cial counsel CIA head John Brennan and Robert Mueller. the feud with former aide In that parallel universe, Omarosa Manigault New- which of these other stories man: 43. Tweets on the might have gotten more atten- economy: seven.

tion? ANDREW HARNIK/ASSOCIATED PRESS One price of that practice A Commerce Department President Trump’s addiction to controversy draws attention away from positive developments, such as the economy. is its distraction from posi- report on booming sales in tive developments elsewhere. grocery stores, restaurants the Trump presidency: the picture is one any president could turn around any day. and Clinton faced their own A prime example lies in the and department stores. way the president’s addiction would envy. Economic growth For now, though, that’s not independent counsel investi- work being done by Dr. Scott The largest one-day rise to controversy and his attrac- is steady, employment is the picture. And the point is gations, they set up systems Gottlieb, the Trump-ap- in the stock market in four tion to fights get in the way growing, retail sales are soar- that the president often de- to keep the investigations, pointed commissioner of the months. of his own best interests. ing and the stock market is flects attention to the nega- and the stories about them, FDA. One of his top priorities The approval by Mr. way up. A new report last tive. He seems incapable of out of the Oval Office. Mr. is to find ways to go beyond Trump’s own Food and Drug n a conventional presi- week found that worker pro- moving away from his long- Reagan, in particular, agreed talking about lowering drug Administration of a lifesav- dency, the president ductivity, oddly stagnant in standing practice in the pri- under urging by aides to re- prices and to actually do it— ing generic version of the I would be far more in- recent years, is rising, an- vate sector of punching back fuse to even answer questions in particular, by speeding ap- EpiPen injector device for al- clined to ignore critics and other development that got at all who challenge him. about the Iran-Contra inquiry provals of generic alterna- lergic reactions. stay away from feuds, particu- virtually no attention. That may make sense in a until it was completed. Mr. tives to expensive brand- The resumption of trade larly when there are good Of course, this economic real-estate battle, but in a Trump, by contrast, brings name drugs. talks with Chinese officials things to talk about instead. surge may be a temporary presidency the practice of the Mueller investigation into That initiative helped pro- who increasingly appear The White House is the ulti- sugar high, driven by a tax constantly counterpunching the White House on an al- duce last week’s EpiPen deci- shaken by the Trump admin- mate bully pulpit, after all, cut that is driving up the actually turns the initiative most daily basis. sion, a move that figures to istration’s tough actions. with the ability to help set the deficit—and by extension in- over to the punchers. One of The president and his aides lower the cost of a lifesaving Probably, all of them would national conversation. terest rates—to unsustain- the powers a president has is doubtless blame the media— drug for Americans across the have gotten more attention. And there actually are able levels. What now appear to ignore critics and deprive otherwise known as the fake- land. For them, that’s a lot Which simply points to one of good things to talk about in to be Chinese efforts to calm them of oxygen. news, enemy-of-the-people more important than the pres- the most baffling aspects of Trump world. The economic fears of a crippling trade war When Presidents Reagan media—for focusing only on ident’s tweets about Omarosa. Russia Widens Election Cyberattacks, Microsoft Says BY DUSTIN VOLZ The IRI is a Republican-lean- to resemble legitimate ones have said the 2016 break-ins work on promoting American parent shift in tactics. AND ROBERT MCMILLAN ing think tank that has where they steal login creden- were carried out by Russian global leadership and tracking Disclosure of the hacking counted Sens. Lindsey Graham, tials, according to security re- intelligence. Last month, spe- kleptocratic regimes would attempts also comes as senior Russian hackers linked to John McCain and Marco Ru- searchers. cial counsel Robert Mueller make it an especially appeal- officials in the Trump admin- the 2016 election cyberattacks bio—all of whom advocate After slowing efforts last charged a dozen Russian intel- ing target for Moscow. istration, including Vice Presi- on the Democratic Party are tough policies against Russia— year targeting the American ligence officers in the hacks. The attack was “consistent dent Mike Pence, have issued widening their targeting for among its board mem- Russia has denied involvement with the campaign of med- warnings about Russia’s intent the coming midterm elections bers. Another target is the in the hacking and said the in- dling that the Kremlin has to interfere in future elections to include the Senate and well- Hudson Institute, which is a dictment was designed to waged against organizations and vowed to halt such at- connected conservative Washington-based conserva- The domains “spoil the atmosphere” of the that support democracy and tacks. Mr. Trump, who has groups, according to research tive think tank, Microsoft said. appeared to mark the July meeting between Presi- human rights,” said IRI Presi- been criticized for not sending from Microsoft Corp. Microsoft said it had no ev- dent Trump and Russian Presi- dent Daniel Twining in a state- clear signals to Moscow that Microsoft last week took idence any of the spoofed in- early stages of spear- dent Vladimir Putin. ment. A spokeswoman for the cyberattacks targeting Ameri- down six internet domains ternet domains were used in phishing attacks. “We are not surprised by Senate’s sergeant at arms, can elections won’t be toler- registered by a Russian hack- any successful cyberattacks this,” said David Tell, a which handles the chamber’s ated, signed an order last ing group that sought to before the company seized spokesman for the Hudson In- computer protection, declined week rescinding classified mimic legitimate websites. control of them. stitute, in response to the new to comment on the alleged Obama-era rules that limited The domains appeared to The domains were regis- political system, the Russian Microsoft findings. “There phishing attempts. the offensive use of cyber- mark the early stages of spear- tered by a hacking group asso- hacking group launched at- can’t be an even peripherally “There is a breadth that is weapons. phishing attacks intended to ciated with Moscow’s military tempted digital intrusions in involved office in politics in starting to match what we saw Microsoft has historically compromise political opera- intelligence agency, the GRU. recent months, Microsoft said. Washington that does not rou- in 2016,” said Brad Smith, been able to gain control of tives working for or around In the past, the hackers, com- Sen. Claire McCaskill (D., Mo.) tinely get emails ending in .ru president and chief legal offi- phishing domains such as the targeted organizations. monly referred to as Fancy last month disclosed that her with weird attachments in cer of Microsoft, in an inter- these by claiming trademark One of the domains mim- Bear or Strontium, have used office had been a target of a them,” referring to the inter- view. Mr. Smith said the ef- violations when the domains icked the International Repub- phishing emails to direct tar- phishing scam. net domain for Russia. forts appeared to be targeting masquerade as the lican Institute, Microsoft said. gets to fake websites designed U.S. intelligence officials Mr. Tell said the institute’s both political parties, in an ap- firm’s websites.

ture its North America bever- soda giant pivot to the health- Pepsi Buys age business amid weak sales Health Kick ier and more environmentally of its core brands Pepsi-Cola, PepsiCo is adding nutritious friendly offerings she envi- Mountain Dew and Gatorade. products to its sales lineup. sioned. The sales slump came after In addition to LIFEWTR, Home Soda the company last year shifted Recent PepsiCo acquisitions, PepsiCo sells the Aquafina wa- too much shelf space and ad- with purchase price ter brand in the U.S. and earlier vertising money to new, health- this year launched a new brand Company 2018 SodaStream* ier products including Seltzer-machine maker of flavored seltzer called Bubly. ContinuedfromPageOne LIFEWTR. $3.4 billion Sparkling water has grown blue in the face: The bottled- Shares in PepsiCo rose after more quickly than the overall water industry is the biggest the announcement but later 2010 Wimm-Bill-Dann Foods bottled water category in the Russian dairy, juice company marketing scam of all time.” fell, closing 12 cents down at 4.5 U.S., clocking volume growth of A SodaStream spokeswoman $114.84. SodaStream’s shares 38% last year, according to in- It’snotjustaboutachievingyourgoals... on Monday referred questions rose 9.4% to $142.111 in New 2008 Lebedyansky† (91.43%) dustry tracker Beverage Mar- Russian maker of fruit and It’s about the path that gets you there. to PepsiCo. York. vegetable juices and baby food keting Corp. That compares In an interview, PepsiCo fi- Wells Fargo analyst Bonnie 1.7 with 7% growth for the overall nance chief Hugh Johnston Herzog offered a skeptical 2007 Sandora† packaged-water industry. said: “SodaStream’s point of view of the deal, saying it was Ukranian juice company Meanwhile, sales of bottled view is that they want a questionable whether buying 0.7 water—a much bigger cate- healthier, more sustainable SodaStream would do much to Note: Purchase price may vary because it is gory—have slowed amid com- planet,” a goal the soda giant help PepsiCo’s efforts to im- based on fully diluted share count petition from sparkling water, shares. He added, “There was a prove volumes in its North Source: Dealogic *Pending †In two deals tea, coffee and other beverages. good cultural match here in American drinks business. THE WALL STREET JOURNAL. A backlash against single- terms of the values.” Mr. Johnston said the deal use plastic has taken hold in In discussions between the isn’t a response to the com- in the SodaStream deal, two some countries in Western Eu- two companies over the past pany’s flagging North America people familiar with the matter rope, where SodaStream makes several years, “we got more beverage sales, but rather an said. most of its sales. comfortable that, in fact, we opportunity to expand Soda- Mr. Laguarta, who is cur- One SodaStream ad featur- think about things in the same Stream’s sales around the rently PepsiCo’s president, ap- ing “Game of Thrones” actors way,” Mr. Johnston said. world and to give PepsiCo bet- proached Mr. Birnbaum about Hannah Waddingham and Thor PepsiCo has been under ter reach into markets such as four weeks ago about doing a Bjornsson has captured 2.7 mil- A place to become... Abusinessleader,ateacher,an pressure this year to restruc- Germany and Japan, where deal, one of the people said. lion views on YouTube. It paro- artist.Ifkidsandteenscandreamit,Boys&GirlsClubscan SodaStream is strong. It also The pact came together dies a scene from the television help them become it. Because at our Clubs, it’s not magic gives PepsiCo entree into what quickly, with no other bidders series, with a woman crying that makes dreams come true, it’s the people. Like our Mr. Johnston called “in-home involved, both people familiar “Shame!” as she follows a man Crafted in gold & platinum Youth Development Professionals who ensure our youth have beverage creation.” with the matter said. carrying bottled sparkling wa- a place to feel physically and emotionally safe. A place to Under departing CEO Indra PepsiCo had built a relation- ter out of a grocery store. belong. A place to have fun. A place to learn and grow on their Rush! Service Nooyi, PepsiCo has expanded ship with SodaStream under As recently as this month, path to a Great Future. Available from its cola roots into hum- Ms. Nooyi, selling its cola with SodaStream had been planning mus, kombucha and other SodaStream machines in 2015 a fall campaign “against single- healthier products, although as an experiment in a few use plastic bottles and big bev- results have been mixed. The dozen stores across the U.S. erage,” a company spokes- company has set a target for PepsiCo had previously ap- woman said in early August. sales growth of nutritious proached SodaStream at least PepsiCo said Monday that products to outpace the rest of once in the past eight years, buying SodaStream is one of GreatFutures.org Immortalize Your Anniversary the portfolio by 2025. people familiar with the matter several ways in which the soda in Roman Numerals! Incoming PepsiCo CEO Ra- said. 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A6 | Tuesday, August 21, 2018 NY THE WALL STREET JOURNAL. WORLD NEWS Many Left Adrift as Greek Bailout Ends Pessimism and anger his life to change after this summer. He has little hope for prevail while the EU the country’s future. celebrates symbolic “These children are born in- debted,” he said, pointing to end to the debt crisis his three children, who are aged 5, 7 and 9. “And I’m not BY NEKTARIA STAMOULI talking about my own, but the country’s debt.” ATHENS—Giorgos Fa- Young Greeks are absorbing sois may never hold a full-time the reality that many will job again. He has come to never achieve their parents’ terms with that, he said. He former income level, nor even will just do whatever it takes sufficient livelihood to start a to feed his three children. family of their own. It is little Charis Karakosta Papachris- wonder that the country has tou works as a doctor in Swe- lost a generation of college den. She doesn’t intend to re- graduates to emigration. turn. Dr. Karakosta Papachristou Evelyn Karyofylli kept her described how, during a recent swimsuit-making business go- inauguration she attended, the ing, but isn’t sure it was worth dean of Athens Medical School it. told new students that their “I had to let go of the whole degrees would make it easy personnel gradually: 25 people for them to find a job abroad. in total,” she said. “I’m now The battered economy has a alone; I’m sewing the swim- long way to heal from a trau- suits in the winter, selling matic past decade. But busi-

them in the summer.” MYRTO PAPADOPOULOS FORness THE WALL STREET JOURNAL (2) activity is flickering back These three Greeks, and mil- Giorgos Fasois, above, and his family live on the equivalent of about $290 of monthly benefits meant for his three children, plus part to life. GDP grew 1.4% last lions of their compatriots, of his parents’ pensions. Evelyn Karyofylli hasn't been able to hire back any of the 25 workers she once employed at her business. year, the first substantial rise aren’t celebrating Monday’s since 2007, and is expected to end of Greece’s international fi- grow 2% this year. After waves nancial bailout. The moment Long Road Back of insolvencies, fewer shops marks the symbolic end of the Greece’s economy has slowly emerged from the financial crisis. and businesses are closing. eurozone’s long debt crisis, Business surveys show new or- which put the survival of the Quarterly change in GDP Fiscal balance as a share of GDP ders and hiring intentions at single currency in doubt. 3% 0% levels not seen for years. The Athens government Ms. Karyofylli is one of the hails the end of the bailout as a survivors. Her sales are rising historic day when Greece re- again at last, as Greek consum- 0 –5 covers its national freedom and ers regain some confidence. independence. European Union “It is funny that I was call- officials hold up Greece’s grad- ing myself a business person uation from its bailout as proof –3 –10 all these years, when I was that the bloc’s much-criticized making an income equal to the crisis management succeeded. minimum wage,” she said. But many Greeks find it hard –6 –15 She still isn’t ready to hire to believe that this truly is the back workers. Her main prob- end of an era. Pessimism and ’08’10 ’18 ’08 ’10 ’18 lem now is painfully high taxa- anger prevail in much of Greek Source: Eurostat THE WALL STREET JOURNAL. tion. society, after a decade of eco- Panagiotis Makaronis, a 41- nomic depression that has left €290 billion ($331 billion) of leading to the collapse of Unemployment, though slowly He hasn’t been able to find a year-old taxi driver on the is- people exhausted and disillu- emergency loans from the euro- Greece’s bond market. The state falling, remains nearly 20%. full-time job since then. The land of Lesbos, dismisses the sioned. Austerity—in the form zone and the International now has a small budget surplus. “I’m 49 years old and that’s five-member family lives on end of the bailout era as “a of deep cuts to public services Monetary Fund, are the biggest But the austerity measures to a huge problem. All employers €250 of monthly benefits meant joke.” and suffocatingly high taxes—is financial rescue of a stricken achieve it—totaling €72 billion, prefer 20-year-olds, who are for the children, plus part of Mr. “If you pay all the taxes you set to continue for a generation, sovereign in history. In return or around 40% of GDP—acceler- paid less and can work more,” Fasois’s parents’ pensions. But have to, you might as well put under a deal between the Ath- for loans, creditors made Greece ated the country’s slump. said Mr. Fasois, who worked pensions have been cut 13 times a stone around your neck and ens government and its lenders. shut a budget deficit that had The Greek economy has as a cabin steward on cruise during the bailout era. “I live drown yourself,” he said. “We Greece’s bailout programs ballooned to more than 15% of shrunk by a quarter since the ships until 2010, earning like a zombie,” Mr. Fasois said. are stuck on this island, like since 2010, totaling around gross domestic product in 2009, global financial crisis began. €1,500 to €2,000 a month. Mr. Fasois doesn’t expect the migrants, working all day.”

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AFGHANISTAN Taliban to Attend TalksinMoscow Pope Expresses Shame Over Abuses The Taliban have accepted a BY FRANCIS X. ROCCA outrage in January when he said Russian invitation to travel to victims accusing a Chilean Moscow to join regional talks on ROME—Pope Francis in a bishop of covering up sex abuse Afghanistan’s future that are letter to Catholics world-wide were guilty of slander. The pope likely to exclude the U.S., people expressed shame and repen- later said he had committed familiar with the decision said. tance over the sexual abuse of grave mistakes in the matter be- Moscow has taken an in- children by priests, following cause he had been misled. creasingly active role in efforts months in which the escalating In an effort to resolve the to end the 17-year war in Af- scandal in several countries has crisis in Chile, all of the coun- ghanistan, citing concerns about raised pressure on the Vatican. try’s bishops offered their resig- the emergence of Islamic State The pope in Monday’s letter, nations in May. So far, the pope and the U.S. failure to negotiate his first to all the world’s Cath- has accepted five. But critics, in- a political solution. The Taliban’s olic faithful about the scandal, cluding Ms. Collins, objected decision to accept the invitation vowed to improve efforts to that the bishops were allowed comes as the group is extending protect children and punish to resign rather than go through its political engagement with the those in the church who com- the process Pope Francis estab- U.S., in what appears to be a mit sex abuse or cover it up. lished in 2016 to discipline bish- continuing effort to hedge be- The letter offered no spe- ops who cover up sex abuse. tween rival powers. cific plans, but the pope said The pope’s letter on Mon- Zamir Kabulov, Russia’s presi- all lay members of the church day didn’t address last week’s dential representative to Afghan- should take part in those ef- request from the U.S. Confer- istan, said in an interview with forts. He laid much of the ence of Catholic Bishops for a Interfax that the Taliban had blame for the sex-abuse crisis Vatican investigation of the been invited to the Sept. 4 talks. on excessive deference to the case of Archbishop Theodore The State Department didn’t church’s hierarchy. McCarrick, a former arch- respond to a request to com- The missive came in re- bishop of Washington. In July, ment. The Taliban’s top political sponse to a report last week Archbishop McCarrick, 88, be- envoy, Sher Mohammad Abbas documenting abuse by more came the first man to resign Stanekzai, was expected to at- than 300 priests in Pennsylva- from the College of Cardinals tend. His office declined to com- nia of more than 1,000 victims in nearly a century, after ment. over a period of 70 years. The charges that he had sexually —Jessica Donati pope was also writing a few abused children and harassed days before he was scheduled to seminarians and priests. AUSTRALIA visit Ireland, where anger over The pope’s letter didn’t ad- abuse is running high, and amid dress specific cases. Prime Minister Beats scandals in other countries. “We acknowledge as an ec- Leadership Challenge In recent months, prosecu- clesial community that we tors in Chile have raided were not where we should Australia’s Prime Minister church offices looking for evi- have been, that we did not act Malcolm Turnbull survived a dence of sex abuse and cover- in a timely manner, realizing

leadership challenge as he strug- ups. The pope’s finance chief, GIUSEPPE LAMI/EPA/SHUTTERSTOCK the magnitude and the gravity gles to pass key pieces of his Cardinal George Pell, faces Pope Francis, seen at the Vatican on Sunday, said all church members should help protect children. of the damage done to so legislative agenda and keep trial in Australia on sex-abuse many lives,” he wrote. members of his party in line. charges, which he has denied. try as priests. Cardinal Wuerl, pected to meet with abuse vic- abuse victim and executive di- He called on the entire The challenge from Peter If convicted, Cardinal Pell 77 years old, has defended his tims and address scandals rector of Amnesty Ireland, church to practice “penitential Dutton, which Mr. Turnbull sur- would be the highest-ranking record and has resisted calls over decades of sexual and who has organized a demon- prayer and fasting,” which he vivedbyavoteof48to35,isa Catholic prelate to be found to step down. He offered his physical abuse in Catholic in- stration to protest the papal said could “awaken our con- reminder of the nagging political guilty of abuse. retirement on grounds of age stitutions there. visit, told an Irish radio sta- science and arouse our soli- instability in Australia, which has Pope Francis addressed his to the pope in 2015, but the “The pope cannot come to tion about the letter: “There’s darity and commitment to a changed prime ministers five letter to all members of the pope hasn’t acted on it. Ireland and not say something no acknowledgment of respon- culture of care that says ‘never times in the past 10 years church, to “acknowledge and The pontiff has addressed about what’s happened here,” sibility by the Vatican for again’ to every form of abuse. Mr. Dutton’s base of support condemn, with sorrow and the abuse crisis several times said Marie Collins, an Irish what’s been perpetrated “No effort must be spared to is rooted in the conservative shame, the atrocities” commit- during his pontificate, some- sex-abuse victim and former across the Catholic world. Yes, create a culture able to prevent wing of the Liberal Party and re- ted by priests and covered up times in even stronger lan- member of the pope’s child- the pope talks about cover-up, such situations from happening, flects the 47-year-old’s hawkish by bishops. guage, as in 2014, when he lik- protection commission, who but he doesn’t say who’s re- but also to prevent the possibil- views on issues like immigration. The Pennsylvania report ened the sexual abuse of resigned last year to protest sponsible for the cover-up. ity of their being covered and Mr. Turnbull, 63, came to has elicited outrage in the children by priests to a Black Vatican inaction. “I hope it’s Yes, he talks about account- perpetuated,” the pope wrote, power in 2016 and his ruling co- U.S., much of it focused on lo- Mass. But Monday’s letter ap- not the usual apology but a ability, but he doesn’t say adding that the church would alition has a thin majority. His rel- cal bishops, especially Cardi- pears to be the first document statement taking responsibility who’s going to be held to ac- support “all the judicial mea- atively narrow margin of victory nal Donald Wuerl of Washing- by a pope directly addressed for systematic abuse. It needs count and why.” sures that may be necessary.” on Tuesday highlights discontent ton, who formerly served as to the world-wide faithful on to be admitted that the church Pope Francis has faced criti- Commentators across the about his performance ahead of bishop of Pittsburgh and is ac- the topic of sex abuse. covered up and protected peo- cism from Catholics in many ideological spectrum praised national elections due next year. cused of having allowed abus- The pope travels to Ireland ple who were doing this.” countries for his response to the the letter’s sentiments but la- —Rachel Pannett ers to remain in active minis- on Saturday, where he is ex- Colm O’Gorman, a sex- sex-abuse scandals. He provoked mented its lack of specific plans. China Faces New Tariffs This Week In 2008, ContinuedfromPageOne on China, said two participants. The message was: “They better the U.S. Government pay attention, because we’re not done with those guys yet,” said one of the participants. used Palantir to: Monday was the first of six full days of public hearings on the next round of tariffs, where about 360 company and trade association officials are ex- Combat terrorism. pected to testify on the impact of the tariffs on their industries.

As in past hearings on the China JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES trade dispute, which involves A worker covers chemicals for export in Zhangjiagang, China. U.S. claims that Chinese firms obtain U.S. intellectual property “Shifting to another country, opportunity to get in front of of- by theft or coercion, the partici- or manufacturing in the U.S., re- ficials and explain” their situa- pants generally requested ex- quires time, economies of scale tion. “But it’s hard to know how In 2018, emptions from the tariffs be- and significant capital invest- much it has affected the admin- cause they felt the levies would ment,” said Bob Margevicius, istration’s decision making.” hurt business prospects. executive vice president of Spe- The American Chemistry our global partners The U.S. is considering tariffs cialized Bicycle Components in Council, a chemical industry of either 10% or 25% on thou- Morgan Hill, Calif. trade group, said that after the sands of categories of products, Some of the companies first hearings on the China trade use Palantir to: including for the first time a backed tariffs. Mike Branson, an dispute, the trade representative substantial number of consumer executive vice president at At- removed all but one of the tar- goods, including furniture, com- lanta-based Rheem Manufactur- geted chemicals from tariffs. But puter parts and luggage. ing Co., which makes heating, then it added even more chemi- Should tariffs be imposed on ventilating and air-conditioning cals to the second round of tar- handbags, as proposed, “we equipment, said that he needed iffs due to go into effect on Prosecute financial crimes. would not hit profitability for additional protection from Chi- Thursday, and removed very few many more years, we would not after ACC objected. That record be able to hire the 10 additional “means they aren’t really listen- Safeguard supply chains. people we had planned,” said ing to people,” said Edward Melissa Mash, the founder of Move comes as many Brzytwa, the ACC’s director for Dagne Dover, an online handbag U.S. businesses oppose international trade. Track illegal firearms. company. The trade representative de- Jim Day, the vice president of levies and a new round clined to comment on individual global supply chain at 47 Brand of talks is set to start. cases. A senior administration Fight child exploitation. LLC in Brockton, Mass., which official said that “all interested makes baseball hats and other persons and parties have equal sports apparel, said the com- opportunity to provide com- Identify cyber threats. pany would likely have to lay off nese competition. ments.” workers if their products are So far, the administration has On Wednesday, Chinese ne- subject to tariffs. levied 25% tariffs on $34 billion gotiators are due to start talking Combat terrorism. Witnesses stressed the diffi- in Chinese goods—mainly ma- with a U.S. team led by Treasury culty of trying to find suppliers chinery and electronic compo- Undersecretary David Malpass, outside China for their products. nents—which was matched dol- at the invitation of the U.S. The In some cases, executives and lar for dollar by Beijing. On negotiations are aimed at find- industry representatives said Thursday, 25% tariffs are set to ing a way for both sides to ad- that the components or prod- go in place on another $16 bil- dress the trade disputes, the ucts are only available in China lion of Chinese imports, which officials said, and could lead to or cautioned against the time Beijing also promises to match. more rounds of talks. If all goes and resources necessary for es- Prior to those tariffs, the U.S. well, the two sides would fig- tablishing a supply line in a dif- trade representative also held ure out a way to end the trade ferent country, including the hearings, as requested by U.S. dispute ahead of planned meet- U.S. industry. Josh Kallmer, senior ings between Mr. Trump and “There is no leather uphol- vice president at the Informa- Chinese leader Xi Jinping at Quietly powering the institutions stery business in the U.S. any- tion Technology Industry Coun- multilateral summits in No- more, none,” said David Mathi- cil, a trade association of high- vember, officials in both na- we depend on most. son, a co-founder of Leather technology companies that tions said. Miracles, which is based in pushed for the hearings, say —Peter Nicholas Hickory, N.C. they have given companies “an contributed to this article. . A8 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. FROM PAGE ONE

of chairs, claiming about sixty before anyone arrives?” (“No.”) late, step on your feet and are places for friends he suspects Also, tarps are forbidden on really sorry for cutting in front Tempers were still partying in the park- the concert field. Curveball was of you that are the pain,” says ing lot. canceled because of flooding. Mr. Campagna. They “failed to “I could have gone and sat Many tarp users are unapol- plan.” Flare Over in the middle of them, but then ogetic, saying they earned their The schism over tarping I would just be surrounded by concert real estate through during Phish concerts is a mi- a bunch of people that didn’t persistence and diligent plan- crocosm of larger social prob- PhishTarps like me,” said Mr. Yohe. “It’s a ning. lems, says Stephanie Jenkins, a ContinuedfromPageOne Phish show. Nobody’s looking Tony Campagna usually ar- 37-year-old assistant professor manual once said, its fans are a to get into an argument.” rives at shows early with a of philosophy at Oregon State “peaceful, intelligent group” Tarpers are usually among tarp folded up in his backpack, University who teaches a who will “dance and twirl in the most enthusiastic Phans. hoping to grab a choice spot in course titled “Philosophy any open area made available Many are happy to endure day- front of the soundboard, where School of Phish.” to them." long waits for a chance to many fans say the music is “If Phish fans…can’t solve Or not made available to spend their concert near the clearest. this problem, what hope do we them. stage, where they can interact “I don’t feel any guilt,” the have of addressing larger, more

“I could not stop thinking— with the band and enjoy better KIANA BLAU 35-year-old public-school pressing problems in society?” who are “we?” what have “we” sound quality. Jnan Blau holding his ‘Peace Blanket.’ teacher from central New York she asks. become? Is this the new idea of Others are less cool with the says. “My friends and I never One Phish fan may have ar- family?,” wrote blogger Grate- aggressive acquisition of terri- respond to a request for com- possible to detect a little bit of took advantage of anything we rived at a happy medium. Jnan ful Momma Bear after she was tory. Plus, some fans say, tarp- ment when contacted through anti-tarpism in the band’s didn’t have coming to us.” Blau totes a woven tapestry chased off a tarp at a show in ers tend to defend their hard- Facebook. ethos. Mr. Campagna is sanguine decorated with peace signs Dayton, Ohio, last year. won space, which totally kills Policies on tarps are often This past weekend, Phish about people straying onto his that he calls the “Peace Blan- Tarpers don’t always use the buzz. Phish fans complain vague and vary from venue to was scheduled to play a three- six-by-eight-foot tarp, which he ket.” The 46-year-old, a profes- tarps. At a show at Dick’s in forums of a superfan dubbed venue. Many venues catalogue day festival called Curveball in believes is a reasonable size for sor of communications studies Sporting Goods Park in Com- Antelope Greg, who is said to a long list of banned items, Watkins Glen, N.Y. A guide to a crew of about 10 friends that at California Polytechnic State merce City, Colo., last year, mark out a primo square for from vuvuzelas and laser the festival on the band’s web- gathers from around the U.S. to University and a fan for more Devin Yohe, a 31-year-old me- himself on the ground with pointers to selfie sticks and “il- site helpfully answered ques- attend Phish concerts together. than two decades, allows peo- chanical engineer from At- duct tape and shout at inter- legal substances,” but say little tions such as “Can I call it His tarping practices have ple to sit on the blanket’s edges lanta, saw a group of fans lopers who wander in. A per- about tarps or blankets. ‘Curfball’?” (“Knock yourself never drawn the ire of fellow if they need a rest. blocking off rows of seats by son identified as Antelope Greg Phish’s public-relations firm out.”) and “Can I use a tarp to fans, he says. Those that do so “are cen- putting T-shirts on the backs on a Facebook account did not declined to comment. But it is claim my camping spot a week “It’s the people that come tered around peace,” he says.

over Yugra following repeated warnings, it said it found a $600 Putin’s million deficit in its balance sheet masked with bad loans. Just hours before the bankrupt Secret bank’s license was due to expire, the prosecutor’s office ordered a halt to the closure, calling the Weapon bank “a financially stable credit ContinuedfromPageOne organization.” Ms. Nabiullina re- stabilize the economic situa- jected the order. tion.” Managers at big invest- Mr. Khotin’s representatives ment funds, from Pacific Invest- and the prosecutor’s office ment Management Co. to Pictet didn’t respond to a list of ques- Asset Management, call Ms. Na- tions on Yugra’s closure, which biullina one of the world’s most the bank is contesting in court. skilled central bankers. Chris- “It was a test of will, and she tine Lagarde, managing director won,” said banking analyst Mr. of the International Monetary Lukashuk. Fund, lauded her in May for set- Ms. Nabiullina’s freedom ting “standards of quality for stands out from her peers in de- macroeconomic policy.” veloping economies from Tur- International investors have key to Argentina, where central piled into Russian government bankers are under pressure bonds, despite the country’s from the government to keep in- weak economic growth, weaken- terest rates low to keep credit ing currency and deepening U.S. flowing to voters and busi- sanctions. nesses. “Nabiullina was clearly given In January, inflation hit a re- a mandate from the highest cord low for the post-Soviet pe- level of the government to bring riod of 2.2%, a result of Ms. Na- stability,” said Kirill Lukashuk, biullina’s decision to keep head of the financial sector at interest rates high after the Cri- ratings agency ACRA. “The gov- mea sanctions. Some tycoons

ernment realized they can’t be KATYA REZVAYA FOR WALL STREET JOURNAL have urged a faster reduction. stable without a healthy bank- ‘For me it was easy to make that rate decision, because I was sure there was no alternative,’ said Ms. Nabiullina, shown on June 8. Ms. Nabiullina’s confidence in ing sector, strong reserves and Mr. Putin’s backing was on dis- low inflation.” country’s banks. at the country’s largest business play at the central bank’s con- In an interview, Ms. Nabiul- In 2006, the central-bank of- trade group and in the economy Taking Interest gress in St. Petersburg in June. lina said her focus has been on ficial responsible for revamping ministry. She has earned a repu- Elvira Nabiullina has left Russian She publicly traded barbs improving the health of Russia’s the system, Andrey Kozlov, was tation for bookishness, personal interest rates high to keep inflation low. with the chief executive of Rus- banking sector. “It became obvi- shot dead in his car. Russian fi- honesty and fixation on detail, sia’s banking behemoth, Sber- June 2013 - Ms. Nabiullina becomes central-bank chief of Russia ous to everyone that something nancier Alexey Frankel, whose according to government advis- 20% bank, and criticized the head of had to be done,” she said. “In banking license Mr. Kozlov had ers. Those qualities drew the at- a major state oil company for the circumstances when we revoked earlier that year, was tention of Mr. Putin, who 18 raising gasoline prices. She started facing external chal- later convicted of organizing the brought her into his think tank chastised the police and courts 16 lenges and geopolitical risks, the killing. to help draft an economic mani- for not doing enough to punish financial system had to become Today, bodyguards accom- festo shortly before he assumed 14 errant bankers. very strong and very stable.” pany Ms. Nabiullina even inside the presidency in 2000. Still, she has struggled to Mr. Putin has expressed his her headquarters. As president, Mr. Putin con- 12 regulate Russia’s lesser, under- “very, very high appreciation” of Detractors include presiden- solidated power, curbing the po- performing state-owned banks, 10 Key interest rate* Ms. Nabiullina’s work “given the tial advisers and industrialists litical clout of tycoons and re- whose executives often treat very complicated macroeco- who say her focus on low infla- gional strongmen. At the time 8 them as fiefs, analysts said. tion and iron regulation is sti- they also controlled a large part These banks are kept afloat by fling the economy. of the banking system, using 6 constant injections of state “From stability to stagnation weak regulation to finance polit- funds. Bodyguards is just a short step,” said Andrey ical campaigns and personal 4 Almost a trillion rubles of accompany her Sokolov, chairman of Russia’s ventures and to transfer wealth 2 public capital, about $16 billion largest private lender, Alfa Bank. out of the country. Consumer inflation at today’s rate, went to just even inside bank There are about 480 active When banks collapsed under 0 three state-owned banks—VTB, headquarters. banks in Russia, triple the num- the weight of bad lending deci- 2013 ’14 ’15 ’16 ’17 ’18 Gazprombank and Rosselkhoz- ber in Brazil, which has a simi- sions and unsustainable deposit *Highest rate for the month bank—in the first four years of lar-sized economy. Russia’s top rates, owners often moved Source: Central Bank of Russia THE WALL STREET JOURNAL. Ms. Nabiullina’s central-bank 20 lenders, however, account for abroad, usually to London, term, according to Fitch Rat- nomic environment, the very 70% of the banking assets. Al- where they bought mansions at central bank the following year. Russian banks, shutting down ings. All are still saddled with aggressive international envi- most a third of the banking sys- record prices. The U.K.’s govern- When she took over the insti- about 440 lenders. She has re- bad debts or illiquid assets. ronment, toward Russia,” said tem is in the hands of state- ment has denied extradition re- tution, banks and companies duced capital outflows by about Ms. Nabiullina said the same presidential spokesman Dmitry owned Sberbank, the successor quests from Russia, citing lack were moving $5 billion out of 50% to $2.5 billion a month. regulatory rules apply to all Peskov. “Her position demands of the Soviet Union’s banking of trust in the country’s judicial the country every month, and Many of the banks she closed banks, adding that she has shut more independence…because monopoly. system. inflation topped 7%. She shut had been considered untouch- down several regional state- the central bank is independent Ms. Nabiullina, 54 years old, Industry veterans said that down 70 banks in her first year. able, analysts said. Some, such owned lenders. in accordance with our legisla- was born into a working-class before Ms. Nabiullina took over, In 2014, the West met Rus- as Promsviazbank, counted law- The central bank has also tive system,” he added. Tatar family in the Ural Moun- banking licenses were mostly sia’s military interventions in makers and state-company exec- come under criticism for bailing When Ms. Nabiullina took tains. She earned an economics used as mechanisms to funnel Ukraine with sanctions. The im- utives among its shareholders out three large private banks over Russia’s central bank in degree from Moscow’s top uni- money abroad and process in- pact, combined with a precipi- and held money for national oil last year, including the country’s 2013, it was a sleepy institution versity during the final years of sider deals. tous fall in the oil price, caused companies and the Orthodox seventh-largest lender, Bank Ot- with poorly trained staff and the Soviet Union and immedi- “We used to open a newspa- the value of the ruble to fall by Church. Others, like Bank kritie. The move has cost the limited powers, investors and ately began working on policies per in the morning and look at half against the dollar that year. Sovetskiy, had served political government about $44 billion. bankers said. Mr. Putin criti- for Russia’s burgeoning market the banking deals and said— Ms. Nabiullina stopped a objectives, providing banking Private bankers said Otkritie cized her predecessors for lack- economy. that’s capital flight, and that’s longstanding policy of spend- services in Crimea, the Ukrai- should have been sold off in ing the will to clean up the She spent the 1990s working asset stripping,” said Sergey ing billions of dollars from the nian region the Kremlin annexed pieces instead of becoming yet Khotimskiy, co-founder of one country’s reserves to try to in 2014. another state bank. Govern- of Russia’s largest private banks, prop up the ruble. In December A dozen shut-down lenders ment-owned lenders now ac- Cleaning Up the Banks Sovcombank. “The dodgy en- 2014, with the ruble continuing have tried suing the central count for two-thirds of all lend- As Russian central-bank chief Elvira Nabiullina has richment schemes were obvious to fall, the central bank nearly bank to get their licenses or as- ing and private deposits. closed or nationalized banks, the state has had to pay to everyone.” doubled its key lending rate to sets back. None have succeeded. Ms. Nabiullina said Otkritie back billions of rubles in guaranteed deposits. The 2008 global financial cri- 17% at an emergency late-night “Nabiullina has freedom to was “too big to fail” and re- sis exposed the weakness of the meeting. operate as she chooses in the in- quired a quick takeover to avert Licenses for lending Rubles paid back to depositors system. Indiscriminate lending The rate increase restored terests of stability, even when it a financial crisis. organizations 600 billion saddled banks with mountains calm to markets but strangled hurts vested interests,” said Al- While the cleanup of the fi- June 2013 of bad debts, which they camou- the country’s consumer-fueled exander Danilov, a banking ana- nancial sector is nearly finished, Ms. Nabiullina becomes flaged with increasingly elabo- growth. The country’s emerging lyst at Fitch Ratings. “She has she said, she sees bigger prob- 1,000 central-bank chief of Russia 500 rate balance-sheet exercises, middle class, which had become stepped on many toes.” lems for Russia’s economy as a 900 said Mikhail Zadornov, a vet- used to foreign vacations and Yugra, the bank she closed whole. “The previous model of eran state banker. Bank failures European cars, is still feeling the last year over the objections of [consumer-led] economic 800 400 June 2013 Ms. Nabiullina snowballed, leaving the state to effects of the ruble’s collapse. the prosecutor’s office, is owned growth has been drained,” she 700 becomes pick up the tab for insured de- Some government advisers by construction magnate Alexey said. Her modest economic fore- 600 300 central-bank posits. and lawmakers criticized Ms. Khotin. The bank had used casts have consistently lagged chief of Russia 500 Banking woes slowed Rus- Nabiullina for the rate increase. credit taken from other banks to behind Mr. Putin’s goals, which sia’s economic recovery, which “Difficult decisions are difficult subsidize market-beating de- she said can be achieved only 400 200 convinced Mr. Putin to act. In to explain [to the govern- posit rates, and became the through deep, unpopular 300 Ms. Nabiullina he saw a loyalist ment],” she said. “For me it was 12th-largest holder of retail de- changes to the system. 200 100 who had the expertise and the easy to make that rate decision, posits in the country last year, Even if the price of oil rose to stomach to clean up the finan- because I was sure there was according to the central bank. It $100, from around $65 today, 100 cial system, according to two no alternative.” also sponsored an amateur she said, “it’s very unlikely that 0 0 people who were government Ms. Nabiullina turned her at- hockey league founded by Mr. our economy can grow above 2011’12 ’13 ’14’15 ’16 ’17 ’18 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 advisers at the time. Mr. Putin tention next to homegrown Putin, who occasionally plays in 1.5% to 2%” a year. Source: Central Bank of Russia (licensed); appointed her as his economic problems. Since she took office, it. —Anna Mikheeva and Mike Russia's Deposit Insurance Agency (rubles paid back) THE WALL STREET JOURNAL. adviser in 2012, and head of the she has halved the number of When the central bank took Bird contributed to this article. .

THE WALL STREET JOURNAL. **** NY Tuesday, August 21, 2018 | A8A GREATER NEW YORK Luxury Apartment Sales Are Plummeting BY JOSH BARBANEL with a particularly sluggish Moore St. in Tribeca. It was first half in 2017, the slowest first listed in January 2014 Downward Spiral Sales of the most expensive first half since 2013. for $40 million, but the price Sales of New York City New York City apartments fell In co-ops, including many was cut three times since, for apartments priced at $5 million sharply in the first half of the of the most expensive build- a final listing price of $22.5 or more year, but many sellers have ings near Central Park, buyers million. 600 adjusted by cutting asking purchase shares in a corpora- A deed filed on Thursday prices to make deals, brokers tion rather than buying a listed a $20 million sale price. Co-op said. deed to an apartment. Median prices for both co- Condo “This is simply a market Brokers said the modest ops and condominiums were 400 that is adjusting itself to rebound in sales reflected up in the first half of the year, chronic overpricing relative sellers’ willingness to aban- compared with the same pe- to buyers’ perception of don their dreams of outsize riod in 2017. But many apart- value,” said Kirk Henckels, a profits in the face of buyer ment prices were down 10% broker and vice chairman of resistance. to 20% during the last two 200 Stribling & Associates, a New “The contracts that are years, particularly among co- York-based brokerage. getting done in the luxury end ops, Mr. Henckels said. Overall sales of apartments of the market are the result When the luxury market priced at $5 million or more of sellers capitulating to real- slowdown began in 2016, bro- 0 fell by 31% during the first ity,” said Donna Olshan, a kers blamed it on political un- 2009 ’11 ’13 ’15 ’17 half of the year, compared broker who monitors contract certainty. More recently they Note: First half of each year with the same period in 2017, activity for high-end apart- said buyers are hesitating be- Source: Stribling & Associates according to a luxury market ments. cause of federal tax changes THE WALL STREET JOURNAL. report by Stribling. Luxury apartment prices that may increase the cost of But the slide in sales was rose sharply in 2014 and 2015, home ownership and reduce recently. concentrated entirely in con- but have since stagnated at the deductibility of New It is generally rare to see dominiums, including newer lower levels. York’s relatively high tax bur- falling home prices without a buildings, where the supply of Examples of steep dis- dens. “relatively catastrophic trig- expensive apartments has counts abound in the rarefied With many wealthy New gering event” such as a stock surged, the report found. luxury market. Yorkers working in finance, market collapse, Mr. Henckels Sales of older luxury coop- A five-bedroom penthouse the fortunes of the luxury said. “It is very clear that this

eratives going for $5 million with a terrace and soaring housing market often have market is enduring what is STEVE REMICH FOR THE WALL STREET JOURNAL or more rose about 10% in the ceiling sold this month in a followed the ups and downs the kindest, gentlest major The price of a five-bedroom penthouse at 11 North Moore St. in first half of 2018, compared new building at 11 North of the stock market—but not price-correction in memory.” Tribeca was cut three times before it sold this month. Wayward Goats Hoof It To Brooklyn Train Line BY ZOLAN KANNO-YOUNGS Twitter an image of the errant goats, noting: “Two very No kidding. Two goats baaaaad boys.” trekked along a New York City Where the four-legged tres- subway line on Monday morn- passers came from remained a ing and kept authorities hop- mystery Monday evening. ping for nearly three hours. “They’re not talking,” the MTA A train operator spotted the spokesman said. animals at about 10:30 a.m. in There are several slaughter- an open-air stretch of an N houses in the area around the line track near the 8th Avenue 8th Avenue subway stop. stop in the Sunset Park sec- Katy Hansen, a spokeswoman tion of Brooklyn, according to from the Animal Care Centers of New York Police Department NYC, said the goats had been and Metropolitan Transporta- named Willy and Billy and were tion Authority officials. being taken to Farm Sanctuary, The goats ambled south to- an animal refuge in Watkins ward the Fort Hamilton Park- Glen, N.Y. way station, where officials Comedian Jon Stewart and were still working to contain his wife, Tracey Stewart, who is them about 90 minutes later, on the board of directors at an MTA spokesman said. Farm Sanctuary, went to pick up The NYPD finally tranquil- the goats personally, according ized the pair and removed to a sanctuary spokeswoman. them at around 1 p.m., the A runaway animal isn’t un- spokesman said. heard of in New York City. In The goats had traveled October 2017, a bull calf along a track that currently is dashed from a Brooklyn high- out of service and they didn’t way to Prospect Park, where it cause delays, officials said. knocked a toddler out of a Southbound N trains were stroller before it was caught. running on the D line from In February 2017, a bull es-

36th Street to Stillwell Avenue caped a Queens slaughterhouse STEVE REMICH FOR THE WALL STREET JOURNAL in Coney Island while police and led police on a 2-mile chase. Citi Bike employees unloaded the company's new pedal-assist bikes on Monday in front of City Hall Park. contained the goats. And in January 2016, a cow “A new one for us (we dashed through busy streets af- think),” New York City Subway ter escaping a halal slaughter- Citi Bike Riders Get Electric Boost officials said in a tweet. “Two house in Jamaica, Queens. goats are roaming along the N In April of that year, Mr. line tracks in Brooklyn. They’re Stewart arranged for a bull BY PAUL BERGER conference in front of Borough they are returned to one of the pedal-assist bikes at docking safe and not currently affect- that was captured after run- Hall following the ride. “I felt system’s 750 docking stations. stations. ing service, but they are on the ning down Liberty Avenue in Huffing and puffing up hills like it was riding itself at one Proponents of pedal-assist Pricing for the pedal-assist run. We’ll keep you posted.” Queens to be moved to the and over bridges could soon point.” bikes say they are ideal for bikes is the same as for regu- The agency also shared on Watkins Glen animal shelter. be a thing of the past for some The pedal-assist technology commuters who don’t want lar bikes. Citi Bike members Citi Bike riders. works by giving an electric to arrive at work covered in ride the bikes at no additional Motivate, the company that boost when the bike senses sweat. They also could ap- charge. Nonmembers pay $3 operates the system of 12,000 that a rider is exerting a cer- peal to seniors or people who for a single, half-hour ride or bikes across New York City, re- tain amount of pressure. The are out of shape, Mr. Adams $12foradaypass. leased dozens of pedal-assist motor helps riders up to A bike’s battery lasts for 30 bikes Monday. speeds of 18 miles an hour, ac- hours of riding, Motivate offi- A Motivate spokeswoman cording to Motivate. cials say. said that 200 of the bikes will Riding the bike requires en- Pedal-assist bikes Jay Walder, Motivate’s chief be sprinkled across docking ergy, but little effort. It makes provide an electric lift executive, said that workers stations in Manhattan, Queens riding up an incline as easy as will monitor the bikes’ battery and Brooklyn by the end of the riding on a flat surface. when they sense a power remotely and switch week as part of a pilot pro- A limited number of pedal- cyclist is straining. out batteries when they run gram. assist bikes operated by other low. Brooklyn Borough President companies, such as Jump and Citi Bike intends to roll out Eric Adams rode one of the Lime, rolled out in the Bronx, an additional 1,000 pedal-as- pedal-assist bikes across the Queens and Staten Island ear- said. sist bikes in time for the 15- Brooklyn Bridge on Monday lier this summer. But those The pedal-assist bikes look month shutdown of a section morning, from City Hall in bikes must be kept within different than traditional blue of the L subway line, which is lower Manhattan to Borough small geographic areas as part Citi Bikes. set to begin in April 2019. Hall in Brooklyn. ofapilotprogramrunbythe The bikes are black and Those bikes will be re- “From the first few pedals I city’s Transportation Depart- decorated with blue Citi Bike stricted to points between

MTA realized this was something ment. decals that sport a lightning docking stations on either side ‘Two very baaaaad boys’ were on the run along the N line in not only different but futuris- Pedal-assist Citi Bikes can bolt. In the Citi Bike app, the of the Williamsburg Bridge, Brooklyn on Monday, subway officials said on Twitter. tic,” Mr. Adams said at a news be ridden anywhere as long as bolt symbol is used to identify Mr. Walder said. .

A8B | Tuesday, August 21, 2018 NY ** THE WALL STREET JOURNAL. GREATER NEW YORK

GREATERNEW YORKWATCH Broadway Ticket Sales Sizzle BY CHARLES PASSY CONNECTICUT Biggest Hits on the It is boom time on Broadway. Drug Czar Pick Visits Less than three full months Great White Way After Mass Overdoses into the new season, grosses The top-grossing shows for for shows have climbed by the week ended Aug. 19 New Haven became what offi- about $62 million, or 16%, com- cials called “ground zero” Monday pared with the 2017-18 season for efforts to shine a light on the at this same point, according to u “Hamilton”: $3,115,391 dangers of drugs, as President the Broadway League, the trade u “Springsteen on Broadway”: Trump’s nominee for drug czar group that tracks the industry. $2,406,003 visited a city reeling from more In all, productions have grossed than 100 recent overdoses on $451 million since early June. u “The Lion King”: $2,340,017 synthetic marijuana. Attendance has climbed as u “Harry Potter and the Jim Carroll met with Gov. well, by around 100,000, or 3%, Cursed Child”: $2,245,282 Dannel Malloy, U.S. Sen. Richard to 3.4 million. In general, gains Blumenthal, New Haven Mayor in grosses have outpaced gains u “Hello, Dolly!”: $2,147,856 Toni Harp and first responders. in attendance because of the in- u “Frozen”: $2,116,258 Connecticut officials are setting a creased emphasis on premium national example for getting peo- tickets, which were priced as u “Wicked”: $1,760,385 ple into treatment for drug addic- high as $849 in the past week. u “Dear Evan Hansen”: tion, Mr. Carroll said. He praised In addition to several long- $1,600,432 local paramedics, police and fire- running hits, the season has fighters for their response to the been buoyed by a trio of u “Mean Girls”: $1,577,293 overdoses last week. shows that opened this spring: u “Aladdin”: $1,451,802 Authorities responded to the musicals “Frozen” and more than 100 overdoses from “Mean Girls,” and the two-part —Source: The synthetic marijuana on Wednes- play “Harry Potter and the DEEN VAN MEER Broadway League day and Thursday, mostly on the Cursed Child.” All three have ‘Frozen’ is among the shows that have been at or near the full-capacity mark during the summer. New Haven Green, a historic been at or near the full-capac- downtown park next to Yale Uni- ity mark through the summer. crowds since it started its pre- Private Wealth Management said, is continued growth in League’s most recent survey. versity. No deaths were reported. “Broadway has an embar- view run in July. and an investor in shows. tourism. New York City is on Not that the news has been Police said Monday that 47 peo- rassment of riches recently,” The factors behind the suc- Consumers are spending tracktosetarecordof65.1 good for all shows. “Head Over ple overdosed, including some who said Christopher McKittrick, a cess go beyond the shows them- money even as ticket prices million visitors in 2018, ac- Heels” and “Gettin’ the Band were taken to hospitals several writer with Daily Actor, a web- selves, according to industry ob- continue to rise. The average cording to NYC & Company, Back Together,” two other mu- times after consuming the drug site that covers theater. servers. In particular, they point Broadway admission last week the city’s official tourism-mar- sicals that opened this sum- again even after being treated. There also is a strong new- to the solid overall economy and was $134, according to the keting organization. That can mer, have struggled. This past Officials blamed a potent comer in “Pretty Woman: The growing consumer confidence. Broadway League; at this time only boost Broadway’s bottom week, the productions grossed batch of K2. Three people have Musical.” Although the show “And that means Broadway, too, last year, it was about $116.38. line because tourists account $261,546 and $175,334, respec- been arrested. opened last week to mixed re- feels the love,” said Adam San- Another likely reason for for 61% of the audience, ac- tively, the lowest totals on —Associated Press views, it has drawn capacity siveri, a director at Bernstein the Broadway boom, observers cording to the Broadway Broadway.

MANHATTAN Fatal Stabbing Occurs Near Times Square New Jersey Moves to Curb Bear Hunting A man died Monday after be- BY KATE KING Mr. Murphy, a Democrat, Murphy said in a statement. ing stabbed in the chest on a opposes the bear hunt but said Sierra Club’s New Jersey di- tree-lined street near Times New Jersey will ban bear his authority to stop it extends rector, Jeff Tittel, said he sup- Square, police said. hunting on state land starting only to state lands, including ported the executive order but Officers found the man in with this fall’s hunting season, forests, parks, recreation areas, was worried that banning front of a brownstone apart- under an executive order signed historic sites and wildlife man- hunting on state lands would ment building on West 46th Monday by Gov. Phil Murphy. agement areas. He said a full simply redistribute the hunt to Street in Manhattan at around Animal-rights activists have ban would require action by ei- county parkland, municipal 3 a.m. on Monday. been trying to stop the state’s ther the state Legislature or open space and private land. The man was unconscious black-bear hunt since 2010, the New Jersey Fish and Game “At the end of the day it and had trauma to his face, po- when New Jersey environmen- Council, an independent group may not actually lower the lice said, adding that he was tal officials turned to hunting consisting mainly of sportsmen amount of bears that get killed pronounced dead at a hospital. to help curb the swelling popu- and farmers that issues the this year,” Mr. Tittel said in an Police haven’t released the lation. Hunters killed 409 state’s bear-hunt regulations. interview. “But this is the first man’s name and no arrests have black bears last year, according “Before we authorize an- real step to try to limit the

been made. to the state Department of En- other hunt we should review hunt that we’ve had in the last SETH WENIG/ASSOCIATED PRESS —Associated Press vironmental Protection. all non-lethal options,” Mr. eight years.” The state turned to hunting to help control the swelling population.

ELSON M N A T R R Q ALBERT NELSON MARQUIS E U B I L S A L LIFETIME ACHIEVEMENT AWARD

L A I T F E N T E IM EM E ACHIEV 2017-2018 RECIPIENTS Award

Marquis Who’s Who is proud to honor its most distinguished listees based on their career longevity, philanthropic endeavors and lasting contributions to society. Out of 1.5 million biographees, only a small percentage are selected for the Albert Nelson Marquis Lifetime Achievement Award. Among that prestigious group, a handful are chosen to represent Marquis in The Wall Street Journal. It is our great pleasure to present them here. Congratulations to our prestigious listees!

Dr. Daniel B. Botkin Leo Galland, MD Professor Emeritus of Biology Director, Researcher UC Santa Barbara Foundation for Integrated Medicine www.DrGalland.com s an esteemed biologist, Dr. Daniel Botkin has served on r. Leo Galland is internationally recognized as a medical A the faculty of Yale University’s School of Forestry and Dinnovator and pioneer. He is a global leader in applying Environmental Studies, and on the faculty of the University nutritional science to clinical medicine, and in 2005 was of California, Santa Barbara for more than 20 years, where he invitedtocreatethechapteron“FunctionalFoods,”which was chairman of the Environmental Studies Program. Now are foods with special health benefits, for the world-renowned Emeritus at UC Santa Barbara, he has shared his expertise as “Encyclopedia of Human Nutrition.” His groundbreaking an adjunct professor with the Department of Biology at the work includes the impact of diet on inflammation and the University of Miami. A recognized fellow of the American relationship between intestinal microbes (the gut microbiome) Institute of Biological Sciences and the Textbook and and health. In 1985, he began developing an award-winning Academic Authors Association, Dr. Botkin has authored model for clinical practice called Person-Centered Diagnosis, numerous works in his areas of expertise, such as “Twenty-five which has influenced thousands of health practitioners Myths that are Destroying the Environment,” “Environmental around the world. Science: Earth as a Living Planet,” “Discordant Harmonies Dr. Galland has published six books on topics in health care. Reconsidered,” “Powering the Future: A Scientist’s Guide to His most recent health book, “The Allergy Solution” (2016), Energy Independence” and “Essential Environmental Science.” an international bestseller co-written with his son, Jonathan HEALTH CARE STARTS Dr. Botkin has extensive experience in dealing with Galland, has been translated into eight languages and was the major environmental problems, including the conservation subject of a public television show, “The Allergy Solution.” of African elephants, bowhead whales, salmon and forest His latest book, “Already Here, A Doctor Discovers the Truth WITH HEALTHY FOOD. about Heaven” (2018), describes a series of extraordinary ecosystems, in addition to extensive field research in a variety events that followed the death of his son, Christopher, at the of wilderness areas. He takes great pride in studying global age of 22. It is a spiritual mediation that celebrates the hidden environmental issues from a planetary perspective, including strengths of children with special needs and disabilities. Since 1985, we’ve been cooking satellite remote sensing and biodiversity, environmentally A board-certified internist, Dr. Galland was educated at sound energy sources, and ecological and environmental Harvard University and the New York University School of computer modeling. Dr. Botkin has been credited with solving Medicine, and trained in internal medicine at the New York and home-delivering nutritious, several environmental issues throughout the course of his University-Bellevue Medical Center. He subsequently held career, in addition to being noted as one of the first ecologists faculty positions at the Albert Einstein College of Medicine, to investigate the possible effects of climate change. Stony Brook University, and the University of Connecticut. individually tailored meals to Dr.BotkinwaspreviouslyselectedtoreceivetheJohnC. Since 1985, Dr. Galland has maintained a private consulting Pritzlaff Conservation Award in 2012 from the Santa Barbara practice in New York City, and since 1997, he has served as Botanic Garden and the Texty Award for Best Biological director of the Foundation for Integrated Medicine in New people living with serious illness. Sciences Textbook from the Textbook and Academic York City. The mission of the foundation is to improve health Authors Association in 2004. To this end, he was named a care by integrating advances in nutritional, environmental, Distinguished Visiting Scholar with Green Mountain College, and behavioral science into clinical practice, professional Being sick and hungry is a crisis. Annual Distinguished Visiting Scientist with the Long Beach training, and public education. Aquarium and Astor Lecturer with Oxford University, among An elected Fellow of the American College of Physicians other prestigious positions. He is credited with developing the and the American College of Nutrition, he is also the recipient You can help. first successful computer ecosystem model entitled JABOWA. of numerous awards, including the Seelig Magnesium Award A frequent public speaker, Dr. Botkin has discussed the roles from the American College of Nutrition in 2013 and the Linus of scientists, businessmen, stakeholders and government Pauling Award from The Institute for Functional Medicine agencies in new approaches to environmental issues. in 2000. He is repeatedly selected for America’s Top Doctors Prior to pursuing a scientific career, Dr. Botkin received and the Leading Physicians of the World, and has been ranked a Bachelor of Arts from the University of Rochester in 1959. in the top one percent of health professionals by American HecompletedaMasterofArtsthroughtheUniversityof Registry and the top one percent of internists by U.S. News Wisconsin in 1962 and Doctor of Philosophy through Rutgers, and World Report. He has been included in numerous The State University of New Jersey, in 1968. In recognition of Marquis publications, beginning with Who’s Who in the his contributions to research and development, Dr. Botkin has East, published in 1992, and most recently Who’s Who in the DONATE, been featured in multiple editions of Who’s Who in Finance World, Who’s Who in America and Who’s Who in Science and VOLUNTEER, OR and Industry and Who’s Who in America. Medicine, all in 2017. JUST LEARN MORE est. 1898 AT GLWD.ORG

2017-2018 MEDICINE IN THE RAW The Original. “Often imitated ... Never duplicated.” . THE WALL STREET JOURNAL. Tuesday, August 21, 2018 | A9 LIFE&ARTS

MUSIC Out of ‘Africa,’ a Hit Reboots

‘Weird Al’ Yankovic, center, performs ‘Africa’ with Rivers Cuomo, right, and therestofWeezer. FROM TOP: KARL KOCH; MICHAEL OCHS ARCHIVES/GETTY IMAGES

BY JOHN JURGENSEN wise hews to the original—picked Daydream.” Rivers Cuomo, the ple don’t cover just one or two up momentum over the summer group’s lead singer and a song- songs. They do it for every big sin- Run That by on the radio, recently ascending to writer who has penned hits for gle that comes out,” says Ray Me Again? THE SURPRISE HIT of summer No. 1 in the Billboard rankings for other bands, was flummoxed when Padgett, who runs a blog devoted 2018 is a song from the 1980s res- alternative-rock airplay. “Africa” took off, says the group’s to cover songs. Covers that struck a chord: urrected by a band from the 1990s. Now the song has caught on co-manager, Jonathan Daniel. In contrast with this race for “No Brainer (feat. Justin Bie- “Africa,” a soft-rock number among adult Top 40 radio stations “You do something as a lark on relevance, “Africa” seems to have ber) x Nonstop”: In the quick- with lyrics that are earnest (“It’s with a bigger audience. “Africa” has the internet,” he says, “and it be- popped out of a cultural worm- draw, click-driven YouTube econ- gonna take a lot to drag me away risen to No. 8 for that format, comes the thing that you’ve been hole. Pre-Weezer, the song had omy, cover specialists often from you”) and inscrutable (“I where it’s been 13 years since Wee- trying to do, which is to write been featured in the Netflix sci-fi pump out their videos right after bless the rains down in Africa”) zer scored a Top 10 tune (with the songs that reach more people. series “Stranger Things,” set in the the original songs drop, as with was a relic from 1983, the year it underdog anthem “Beverly Hills”). What? This is what people want? 1980s. Another icon of the era, this recent mashup of two hot hit No. 1 for Toto. Fast-forward to Along with hits of recent vin- It’s a head-scratcher.” “Weird Al” Yankovic, joined Wee- tracks, from Drake’s “Nonstop” a fan’s social-media campaign, urg- tage by Taylor Swift and Maroon The “Africa” phenomenon starts zer onstage in Los Angeles earlier and DJ Khaled’s “No Brainer,” re- ing the alternative-rock band Wee- 5, Boston station WWBX-FM to make sense in the context of a this month and played the song’s leased a week earlier. zertorecordanewversion. played Weezer’s “Africa” 96 times TV and movie landscape filled synthesizer solo on his accordion. What started as an ironic ex- in the past week, more than any with new releases—“Lost in The return of “Africa” has “Let It Be”: The death of Aretha change with fans has become a other station in the U.S., according Space,” “Ocean’s 8,” “One Day at a raised the profile of the original Franklin reminded us of her mas- hit—and perhaps a sign of Holly- to Nielsen. “A hit’s a hit. This one Time” and the coming “Magnum group, Toto, as well. As a head- tery as an interpreter of other wood’s reboot fever influencing just took a different path,” says P.I.,” to cite a few—that bring im- fake to fans clamoring for “Africa,” people’s compositions. Among popular music. Steve Salhany, who oversees the mediate name recognition. Like Weezer first released another of them were multiple Beatles Weezer released its take on “Af- “hot adult contemporary” format viewers, listeners are awash in Toto’s signature tunes, “Rosanna.” songs, including “Let It Be,” which rica” on May 29, and it quickly for WWBX owner Entercom. content, so a new release that Toto replied with a cover of a Paul McCartney offered to her. topped the iTunes digital sales Weezer has released 11 albums sounds familiar has an advantage. Weezer song, “Hash Pipe,” and Her recording came out shortly chart. The song—which features since its multiplatinum debut in Critics of Hollywood’s depen- struck a deal with Universal to before the Beatles version. burlier guitar chords but other- 1994, including last fall’s “Pacific dence on reboots, revivals and se- quickly release the song and pro- “Zombie”: Dolores O’Riordan, quels say that it reflects a lack of mote radio airplay. Weezer’s “Af- singer for the ’90s band the fresh ideas. Does “Africa” redux rica” release came during Toto’s Cranberries, died in January, be- say something similar about the 40th anniversary tour and ahead fore she was set to record a new state of rock music? of a Toto box set scheduled for re- version of her band’s biggest hit, Last year, hip-hop and R&B lease this fall. The band’s booking “Zombie.” Days later, her intended eclipsed rock as the most con- offers have increased, says found- collaborators, heavy-metal band sumed genre. The combined genres ing member, manager and guitarist Bad Wolves, released its cover, represent 31% of sales and streams Steve Lukather, who has been in- which has since reached platinum so far this year, compared with jecting Weezer-style power chords status. 23% for rock, according to Nielsen. when he plays “Africa” in concert. Hip-hop in particular dominates Thirty-five years after the origi- “Work It”: More campsite karaoke the streaming-music charts, the nal song hit No. 1—and weathering than cover song, Rhode Island resi- pop-cultural conversation and even lineup changes, deaths in the band dent Mary Halsey’s rendition of the way cover songs are released. and jokes about being ’80s has- Missy Elliott’s eccentric rap classic When rappers like Drake and beens—Toto has been gratified by “Work It” made the rounds this Cardi B release new tracks, they the newfound respect. month after Ms. Elliott herself are almost immediately covered by “I never thought I’d live to see a tweeted the video along with her other musicians trying to benefit resurgence in a positive way,” Mr. praise for the performance of her from Google and YouTube searches Lukather says. “This has been the “funky white sister.” A 1980s photo of Toto, who released the original version of ‘Africa.’ by the original artists’ fans. “Peo- most surreal summer of my life.”

YOUR HEALTH | By Sumathi Reddy THE EXERCISE THAT HELPS MENTAL HEALTH MOST

WE ASSUME EXERCISE improves poor mental-health days. (Recre- tions from the ship is probably complex. But even our mental health. But what kind ational sports included everything Centers for Dis- things like walking or household of exercise works best? from yoga to golf to horseback ease Control and chores seem to have benefits.” Researchers looking at the link riding.) Prevention. It His research team grouped 75 between physical activity and men- Adam Chekroud, the senior au- wasn’t a random- different types of exercise into tal health found that team sports thor on the study, is a chief scien- ized controlled eight categories. They controlled fared best, followed by cycling, tist and co-founder of Spring study and there- for factors like age, race and body- either on the road or a stationary Health, a New York City-based fore didn’t prove mass index. bike. mental-health startup, and an as- causality, just an Commenting on the study in an The study, published in the jour- sistant professor of psychiatry at association be- accompanying editorial, Gary nal Lancet Psychiatry this month, Yale University. He says team tween exercise Cooney, a psychiatrist at Gartnavel is among the first of its kind, and sports may have an extra benefit and better mental Royal Hospital in Glasgow, Scot- the largest, analyzing the effect of because of the social component, health. It can’t ex- land, notes that the study’s great- different types of exercise. and yoga/tai chi promote mindful- plain if poor men- est strength is its size. It found that physical activity ness, which is often touted as ben- tal health causes He has some criticisms, saying typically performed in groups, such eficial for mental health. people to exercise the study treats mental health as as team sports and gym classes, He would like to explore with less or exercise an umbrella term based on a broad, provided greater benefits than run- further research why some activi- causes people to somewhat vague question from a ning or walking. ties scored higher than others to have better men- survey. He also points out that the

Researchers rated mental health see if exercise regimes can be per- tal health. ISTOCKPHOTO/GETTY IMAGES study is based on self-reports, based on a survey. It asked respon- sonalized to choose the most rele- Overall, people Team sports like basketball were shown to have the rather than objective measurement dents how many days in the previ- vant and helpful type. who exercised re- largest positive impact on mental health in a new study. of a person’s exercise habits. Still, ous month their mental health was The researchers also found that ported having two he calls this research “important “not good” due to stress, depres- those who exercise between 30 and poor mental-health days in the pre- cluding randomized controlled and urgent work.” sion or problems with emotions. 60 minutes had the best mental vious month, compared with 3.4 studies showing that exercise and Madhukar H. Trivedi, founding People who played team sports health, with 45 minutes the opti- days for those who didn’t exercise. antidepressants together work bet- director of the Center for Depres- like soccer and basketball reported mal duration. Exercising three to That translates into a 43% im- ter than antidepressants alone. sion Research and Clinical Care at 22.3% fewer poor mental-health five times a week correlated with provement in mental health for Some studies have raised ques- the University of Texas Southwest- days than those who didn’t exer- fewer dark days. those who exercised, Dr. Chekroud tions about the relationship, how- ern Medical Center in Dallas, says a cise. Those who ran or jogged More exercise wasn’t always bet- says. ever, suggesting that perhaps peo- robust body of evidence shows ex- fared 19% better, while those who ter. “Over 90 minutes of exercise The effects were more pro- ple who are depressed exercise ercise improves depression. He has did household chores 11.8% better. and there isn’t an extra benefit,” nounced for people who reported a less because of their condition. done many studies examining this In a secondary analysis, the re- Dr. Chekroud says. previous diagnosis of depression. “This is very strong evidence that question. He says he prescribes ex- searchers found that yoga and tai The study analyzed the exercise They had 3.75 fewer days of poor there is a relationship between exer- ercise to depressed patients often. chi—grouped into a category called habits and mental health of 1.2 mental health. cise and mental health,” Dr. Chek- He recommends that they burn recreational sports in the original million U.S. adults, based on self- Smaller studies have found that roud says. “It seems like there are roughly 1,200 to 1,400 calories a analysis—had a 22.9% reduction in reported answers to survey ques- exercise improves depression, in- some sweet spots, and the relation- week working out. . A10 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. LIFE & ARTS

BONDS: ON RELATIONSHIPS | By Elizabeth Bernstein Moving Beyond the Pain of Loss

WHAT IS THE BEST way to deal we are laughing with a loss? about the time our Loss is one of life’s most excru- loved one put a ciating emotions, because it in- funny hat on. We volves pain that to some degree get to the whole of will never go away—what you have it. And that is ex- lost will never come back. Often, actly what you have people try to suppress their feel- to do with loss. It ings, or close themselves off to sit- isn’t just the tears uations that could lead to loss that need to happen. again. That doesn’t work. It is also the laugh- Psychologist Steven C. Hayes, a ter. It is also honor- professor at the University of Ne- ing. In sunset mode, vada, Reno, researches how lan- you are appreciating guage and thought lead to human all of it, the awe and suffering and is the author of “Get awfulofit. Out of Your Mind & Into Your Life,” a workbook that helps peo- This can help you ple transform their emotional pain grow? into something helpful. He is the Yes. Appreciating co-creator of a widely used and re- what you lost will searched therapeutic approach help you put that called Acceptance and Commit- into your life again, ment Therapy (ACT), which helps to write your next people focus on mindfulness, ac- chapter with the ceptance and values. One tech- theme you choose. nique: Instead of saying, “I will Let’s say you get never be able to find another part- divorced because ner like the one I lost,” ask, “How your spouse didn’t can I put those qualities of that have qualities you person in my behavior?” needed. You were I spoke with Dr. Hayes about yearning for emo- dealing with loss. Here are edited tional connection excerpts of the conversation. and you married a refrigerator. You can What exactly is loss, and why is it look at those quali- so difficult to handle? ties and ask your-

Loss is a state of “missing what JAMES STEINBERG self: “How would I once was.” have to be in the Some losses we can’t prevent: A wound. “I will never be so wound- world so my next relationship is not lover decides we are no longer the able again” is a common mental Using psychological flexibility to deal with loss with a refrigerator?” special one. A loved one dies. order we give ourselves going for- Or if you lost someone you Some are deliberate. A divorce ward from betrayal. Psychologist Steven C. Hayes exhale, breathe out awareness. This loved deeply, appreciating what that needs to happen; a friendship recommends these steps: will help you accept the pain. you had will empower you to put that needs to end; a job that needs But suppression doesn’t work, n that in your life again. If you think n Notice your thoughts. “When you to be abandoned. And many are does it? Acknowledge the loss. Accept think: ‘I will never get over this’ or ‘I about the good qualities of the gradual: Children head off to No. We think we will create your pain and embrace all of what will never find another partner,’ that person and internalize them, you school or move away. Our physical safety by avoidance. But what we you lost, the good and the bad. Try- is your mind trying to make sense will draw people to you who see and mental capacities gradually create is a deadening, walled-off ing to suppress your pain will only of the loss, but these thoughts can and want those qualities and wane with time. Even wonderful version of safety. It is like drop- heighten it. And you can’t learn come to dominate you,” says Dr. maybe will help give them to you. moments contain a sense of loss. ping a delicious plate of food into from it if you ignore it. Hayes. “You want to be more men- We cry at weddings and glance at the dirt and solving the distress n Picture yourself as a child. Think tally flexible.” To prevent buying into Can you give an example? each other as vows are being ex- that accident produced by forever of your clothes and mannerisms. the thought, try singing it—to the My birthday is the same day as changed, knowing full well that swearing off tasty food. This is the Imagine yourself talking about the tune of “Happy Birthday.” my father’s. He died an early death pain is ahead. opposite of what we want. We due to health complications from loss in the voice of a small child. n Look for the lesson in the pain. What we are left with inside want to live a full and vital life. How would you comfort that child his alcoholism. A sweet, kind, lov- profound loss is a pain that to We can’t suppress our thoughts. Think about what you lost and what ing man who also modeled emo- with compassion? Do that for your it can teach you about what you some degree cannot go away. We Every time we have the thought to adult self. tional avoidance. He could not face know what is missing won’t come suppress the pain, we are building want going forward. If a loved one the loss of his dream of being a back. And it is the combination of a new cognitive connection in our n Focus on your body. When you died, think about all the qualities of professional baseball player. this pain and the seeming inability brain to that thing we are trying think of your loss, how does your the person—good and bad—and how When I think of my dad I smile. to resolve it that makes loss so to run from. Suppression creates a body react? When you inhale, you can embody those you most ap- He loved children, especially little difficult. feedback loop from hell. breathe in the pain, and when you preciated. ones. I have a picture of him hold- Here is an example: When I ing my eldest daughter’s hand What is a typical response to this went through a divorce, I picked while at the zoo. He loved being pain? bluegrass music to listen to that curiosity and to move our life in you would a sunset. A sunset is im- silly and telling jokes. And I ad- We go into a problem solving would help me suppress the pain. directions that are important to permanent and will never happen mire the courage he showed in fac- mode of mind, to try and fix the In about two days, whenever I us, building habits that allow us to again the same way once it is over. ing his demons and entering into loss by denying, diminishing, clos- heard that music, I started crying. live life in accordance with our There is a bittersweet quality in recovery from addiction. ing down, suppressing. We’ll do Now that bluegrass music re- values and aspirations. It’s about that. But a sunset also brings joy My problem solving mind can list things like putting away all the pic- minded me of the loss that I used learning not to turn away from and a sense of awe. We appreciate out his flaws in great detail. But tures or leaving the bedroom of a the music to help me forget. what is painful, instead turning to- it, and see possibilities in it. when I adopt a sunset mode of loved one who has died exactly the ward our suffering in a way that is mind, I see something else. The same. We may suppress thoughts or How can we approach loss in a open, curious, and kind. How do you bring a sunset mode of pain I feel from his death is directly memories, not just the painful ones healthier way? thinking to loss? linked to the loss I feel of these ad- but the joyful ones, too. We can practice psychological How do we do this? You look at the wholeness of the mirable qualities of love, laughter, Afterthelossofabetrayalora flexibility. This is the opposite of By replacing our problem solving loss, the joy that was there as well and courage. If I could have just divorce, we may try to protect being closed off. Psychological mode with a sunset mode of mind. as the pain for what is now missing. two minutes to see him again I ourselves, by refusing to open up flexibility begins with an embrace Sunset mode is a mind-set that is Think of the healthy rituals we have would tell him I love him, and thank and be vulnerable again. “Vuln” of the moment. It is the ability to observant and open to emotion. It when people die. We get together him for the wonderful qualities he comes from the Latin word for feel and think with openness and allows us to take it all in, the way and we cry, and five minutes later embodied for his children.

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. Down 60s Edmontondt 60s <0 12345 678 910111213 32 Silky wool 1 Kilmer of VancouverV Calgary 0s 14 15 16 34 Oil barrel “Top Gun” 70s 80s 70s 10s Winnipegip 17 18 19 36 Roberts’s Seattlettl 70s 20s 2 Ambient music “Pretty Woman” 20 21 maker Brian co-star Portland Helena Montreal 30s Bismarckk Ottawa 3 Unfaithful lover Billingsg 60s 80s AugustaA g t 40s 22 23 24 25 26 37 Unblocked Eugeneg Boisei 60s Mpls./St.. PaulPau TorontoT AlbanyA banyb Bostont 50s 4 Show mercy jumper, in 90s Pierre 27 28 29 30 basketball 60s Siouxoux FFallsll Milwaukeek Buffaloff l Hartfordrtford 60s 5 CNN anchor 70s 70s Detroit PittPittsburghbhg Newew YYorkk 70s 31 32 33 34 Burnett 38 Highly Reno Deses Moines PhiladelphiaPhhil d lp hi Cheyenney Omahah ChicagoCh ClevelandC d infective Sacramentot 60s Washingtonhih onn D.C.D.CDC 80s 35 36 37 38 39 6 Motley Saltt LakeL k CityCitC IndianapolisIndianapop 80s San Francisco 90s Denver 90s 39 Children’s writer 70s 60s ColoradoColoradCld TopekaTopek SpringfieldSpringifid 40 41 42 7 In the style of 80s CharlestonCharlesh Richmondh d 100+ Blyton LLas Springspg Kansas 70s VVegasg Wichitahit St. LouisLo LouLLouisville 8 Expert in City 70s 80s Raleighihh 43 44 45 46 47 48 49 42 Summer in LosA AngeAngeles Santaanta Fe 80s CChCharlottehltt l repartee 70s Memphishi Nashvilleh ill 70s Strasbourg 50 51 52 53 80s 100sPPhoenixh AlbuquerqueA b qq Oklahomak homa CityCity ColumbiaC b 9 Guilty ___ San Diego Little RocRockk AAtlanta Warm Rain 43 Lend a hand TucsonTuc DallasD Birminghamh 54 55 56 10 Casual affairs Ft. Worth 90s Cold 44 Not as snug ElPaso JacJacksonk T-storms 11 “L’chaim,” 90s 90s Jacksonville 57 58 59 60 61 50s 40s AustinAti Mobileb literally 45 Sevilla’s nation Houston Stationary Snow Neweww Orleans Orlandoldd 62 63 64 46 Significant rift 60s 80s Sanan AntonioA TaTampap 12 Sound Showers Flurries 65 66 67 judgment AAnchorageh Honolulull 100s Miami 48 Kubrick film 70s 13 Declare based on a Ice Nabokov novel LINE OF INQUIRY | By Gary Cee 18 Never seen 51 Beltway U.S. Forecasts Today Tomorrow Today Tomorrow Across 22 Poker bet 49 Be deserving of before City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W staffers s...sunny; pc... partly cloudy; c...cloudy; sh...showers; component 21 Kin of crunches Omaha 77 56 pc 79 59 s Frankfurt 84 61 pc 90 63 s 1 Sporty Chevy 50 “What are t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 52 Surfboard part Orlando 90 74 t 90 73 t Geneva 86 62 pc 85 63 pc since 1953 24 “What are you ___?” 22 Org. that’s given Today Tomorrow Philadelphia 82 72 sh 86 64 sh Havana 92 73 pc 91 72 pc 56 Brand with a City Hi Lo W Hi Lo W 6 Word with deal you ___?” 53 Without a stitch 23 awards to Phoenix 100 82 pc 101 84 pc Hong Kong 91 79 t 90 81 t “Thick & Fluffy” or data on George Strait Anchorage 60 53 r 61 53 c Pittsburgh 78 65 t 72 53 t Istanbul 87 73 s 86 75 s 27 Do an line Atlanta 85 70 t 86 67 s Portland, Maine 72 61 pc 75 59 t Jakarta 92 76 s 92 75 pc 9 Entertainers’ impersonation of 54 Estelle Getty’s 23 Trumpet legend Austin 102 74 pc 103 73 s Portland, Ore. 94 63 s 94 60 s Jerusalem 85 67 s 84 68 s union Al 58 Bit of ointment Baltimore 82 72 t 85 63 sh Sacramento 83 57 pc 86 57 pc Johannesburg 77 52 s 74 51 s 29 Pest with wings “Golden Girls” role 25 Alternatively 59 Lennon’s love Boise 87 61 pc 88 62 pc St. Louis 82 63 pc 80 59 pc London 75 59 pc 78 57 pc 14 Egypt’s Sadat 30 On its way, in a Boston 7467pc8165t Salt Lake City 85 66 t 85 63 t Madrid 94 67 s 95 67 s Burlington 81 67 c 77 56 sh San Francisco 71 58 pc 71 57 pc Manila 86 78 t 87 79 t 15 Atlanta way 55 Eldest von Trapp 26 It may come with 60 Food Network’s child in “The salsa verde “Pioneer Charlotte 88 71 s 88 66 s SantaFe 8557pc8156t Melbourne 55 41 c 60 44 pc Olympics torch 31 Franklin who Chicago 78 60 sh 78 60 s Seattle 89 61 pc 90 57 s Mexico City 71 55 t 72 55 t lighter Sound of Music” 28 “Pet” that Woman” ___ Cleveland 81 64 t 73 58 sh Sioux Falls 73 50 s 76 57 s Milan 92 70 pc 92 67 pc sang “Think” 57 “To repeat needs to be Drummond Dallas 96 72 s 95 73 s Wash., D.C. 83 73 t 87 65 sh Moscow 72 49 c 65 45 pc 16 Dark purple 33 Gulf War missile Denver 76 54 t 76 57 s Mumbai 84 77 sh 84 79 sh fruits myself...” watered 61 Go wrong Detroit 80 62 r 75 57 pc International Paris 82 60 pc 85 60 s 35 “What are 58 “What are Honolulu 88 76 pc 89 78 pc Rio de Janeiro 82 68 s 80 67 pc 17 “What are Previous Puzzle’s Solution Today Tomorrow you ___?” Houston 98 78 t 100 77 s Riyadh 106 82 s 108 84 s you ___?” you ___?” City Hi Lo W Hi Lo W 40 Pulitzer-winning PAWN SANG SHAD Indianapolis 78 63 t 75 56 pc Rome 89 69 pc 88 69 pc 19 Miserly 62 Sound judgment ECHO SONIA AIDE Kansas City 80 60 pc 77 60 pc Amsterdam 75 62 pc 74 62 pc San Juan 89 76 pc 88 78 pc writer James CH I NAASTER LYFT Las Vegas 103 83 s 102 82 s Athens 89 74 s 89 75 s Seoul 86 75 r 95 79 s Marner 63 Crumb carrier TELL I CYSTARE Little Rock 85 67 s 84 68 pc Baghdad 111 83 s 111 82 s Shanghai 92 80 t 92 77 s 41 On one’s back APE FARCE I SLES 20 Fundamental TOSTADA SET LET Singapore 90 80 t 88 79 t 64 Doomed fellow Los Angeles 84 66 pc 84 65 pc Bangkok 93 79 t 95 80 sh principle 43 Brewpub menu ALOU DI E AKA Miami 90 75 pc 89 77 t Beijing 91 71 c 85 70 c Sydney 65 49 s 63 46 pc 65 People movers EXCHANGERATES Milwaukee 75 57 sh 77 59 s Berlin 76 57 pc 84 66 s Taipei City 95 79 t 94 80 t 21 Gary who won section KEY OTT OSLO Minneapolis 76 56 pc 80 58 s Brussels 77 61 pc 78 59 pc Tokyo 85 78 c 87 78 s 66 Giant serpent SOT NSA TH I NOUT a Golden Globe 47 Like some TRA I N GOATS PRO Nashville 84 68 pc 84 62 pc Buenos Aires 56 41 s 60 49 s Toronto 75 62 r 73 56 pc AIRTASER OATH New Orleans 91 75 t 92 76 s Dubai 105 92 s 106 92 s Vancouver 80 58 pc 76 55 pc playing Truman agreements 67 Weasel’s kin NOTE END I NTEARS

New York City 77 70 c 84 65 t Dublin 73 58 c 64 50 c Warsaw 7653pc7859s s CLAM ADELE AGUA Oklahoma City 85 67 s 85 67 t Edinburgh 69 57 sh 65 50 c Zurich 87 60 s 88 61 pc Solve this puzzle online and discuss it at WSJ.com/Puzzles. HENS LARK MI NX . THE WALL STREET JOURNAL. Tuesday, August 21, 2018 | A11 LIFE & ARTS JENNIFER STEINKAMP/LEHMANN MAUPIN, NY/GREENGRASSI, LONDON (2)

ART REVIEW Exploring the Digital Landscape

BY KAREN WILKIN Clark Art Institute. The exhibition with dangling locks. Jennifer Steinkamp’s ‘Blind Eye, 1’ includes five generously sized to But the excellent cat- (2018), above, and ‘Premature, 6’ downright enormous works made alog of “Blind Eye” (2010), left Williamstown, Mass. between 2005 and 2018, from an recounts the more lu- ABOUT A DOZEN years ago, I un- expanded version of “Rapunzel” to rid first edition of tions of the perils of migration to- expectedly encountered one of the brand new “Blind Eye, 1.” To- the tale, which con- day, as thousands flee political un- Jennifer Steinkamp’s mysterious, gether, the five projections provide nects the sinuously rest and natural disasters across mutable, computer-generated an informative overview of some moving flowers with hostile territory. works, a cascade of swaying, of Ms. Steinkamp’s dominant, a plant that is craved “Blind Eye, 1” (2018), commis- frankly fake blossoms on delicate wide-ranging concerns. by Rapunzel’s preg- sioned by the Clark, spreads a 43- vines, newly installed by the en- Nothing, however, is quite what nant mother with di- foot-wide row of life-size pale trance of an elegant restaurant it seems. As is often typical of Ms. sastrous conse- birch trunks against a dark near where I live. (Ever since, it Steinkamp, all the works at the quences. Somehow, ground, tops and bases cropped to has made waiting for a table a Lunder Center derive from nature, Ms. Steinkamp en- confront and dislocate us. The var- pleasure.) Titled “Rapunzel,” the but their imagery and colors, while capsulates the dis- ied trunk sizes imply deep space, moving projected tangle was at seemingly photo-based, at first ac- turbing undercur- but also read as a fence-like bar- once beautiful and vaguely dis- quaintance, quickly announce that rents of the Brothers rier. Leaves sprout from a welter comfiting; alluring they are invented, Grimm’s tale of sub- of small branches, forming a dense because of its con- computer-gener- servience and ven- screen, then turn yellow and drop. stant, unpredict- ated and manipu- geance, transforming Tiny new leaves appear, like stars able movement An overview of the lated; more impor- “Rapunzel, 5” from against the darkness. Seen against and color shifts, artist’s dominant, tant, these (admittedly magical) the woods visible through the gal- but also puzzling. mesmerizing, mo- high-tech wallpaper lery window, the accuracy of Ms. The title triggered wide-ranging bile phenomena into something com- Steinkamp’s perceptions is obvi- associations with concerns soon make it plain pelling and scary. ous, but so is the artifice of her the tales of the that they are not Similarly, the two seeming naturalism. The black Brothers Grimm, intended as natu- trees in “Fly to Mars, markings on the trunks become which terrified me ralistic, digital-age 6” (2006) and “Fly to stylized eyes and the once-benign as a child, adding to the ambiguity. equivalents of things seen, but Mars, 9” (2009) pro- forest becomes threatening. De- I’d seen other Steinkamps before, rather as metaphors for everything voke thoughts about spite the arresting beauty and pro- mainly trees responding to the from attitudes toward women to mortality, as well as vocative use of motion in her passing seasons, but “Rapunzel” the migrant crisis. seasons. It has something to do makes us look harder. work, there’s also a sense of the seemed especially surprising and “Rapunzel, 5” (2005), the earli- with the isolation of the images “Diaspore, 2” (2014) confronts us sinister. We’re back with the enigmatic. est work on view, fills a 12-by-18- against infinite blackness and with with more than 21 feet of knotted Brothers Grimm, in uncanny terri- I followed Ms. Steinkamp’s work foot wall with shaggy pink and the way Ms. Steinkamp slows time. branches, trapping random leaves tory where danger lurks. Once when I could. Then, in 2012, we purple blossoms in various stages The trees toggle from leafy green and seeds. Here, the repetition is again, Ms. Steinkamp has proved met as participants in a College of development. Hanging down- to sparse red and back again, clear, suggesting an unbreakable cy- herself one of the rare video art- Art Association panel about mod- ward on fragile stems, they de- abruptly, but at intervals so widely cle. The gatherings blow across the ists particularly adept at finding ern color, where I was impressed scribe slow arabesques against a spaced that we often miss the projection, bouncing against the poetry in the specifics of her me- by her lucid presentation. We said curtain of vertical stalks punctu- transitions; fail to pay attention edges, loosening and clenching. dium. Nothing is what it seems. something about staying in touch, ated with occasional leaves. The and everything changes. As with Leaves swirl, spread, coagulate, yet never did. So I was delighted story of the princess imprisoned in other works, such as “Rapunzel, 5” then spread again. The title sug- Jennifer Steinkamp: Blind Eye to learn about “Jennifer the tower and the prince who or “Premature, 6” (2010), the gests how airborne seeds and The Clark Art Institute, through Oct. 8 Steinkamp: Blind Eye,” now on climbed her golden tresses is fa- show’s sole abstraction, we look spores are disseminated, yet the view in the Tadao Ando designed miliar, so, prompted by the title, for systems and repetitions, but windblown leaves and restless Ms. Wilkin is an independent Lunder Center at Stone Hill at the we equate the swaying tendrils usually fail to find them, which branches also become potent evoca- curator and critic.

MUSIC REVIEW The Complex Made Accessible

community he nur- hesion owes to longevity: BY LARRY BLUMENFELD CELEBRATE tures has basic re- bassist Anthony Tidd and [ [ quirements—an un- drummer Sean Rickman NATIONAL RELAXATION DAY ON A MUGGYJuly night, derstanding of have played with Mr. Cole- noteworthy musicians packed Charlie Parker’s man for more than 20 years; the Village Vanguard, New language for im- guitarist Miles Okazaki, for August 15th is National Relaxation Day and we’re offering you York’s oldest and best jazz provisation, a flu- nearly a decade; trumpeter unprecedented month-long savings to celebrate. Experience club. They had assembled to ency in multiple Jonathan Finlayson, now 36, the peaceful escape that makes DreamWave the unrivaled honor Lorraine Gordon, the rhythmic tradi- joined half his life ago. It luxury standard of massage chairs. Unparalleled Japanese Vanguard’s owner, who died tions, and a blend grows also from extended craftsmanship, personalized choreography, and now in June at age 95. Near a of rigor and open- residencies in various cities, framed photograph of John ness of mind. a throwback to the two- and (remarkably) on sale. Designed by Toshiyuki Kita of Japan. Coltrane, one of several leg- Mr. Coleman’s three-week engagements endary players whose Van- new two-CD re- common in, say, Coltrane’s dreamwave.com/rebate guard engagements have lease, “Live at the day. Such familiarity has re- 888-727-2150 made for classic recordings, Village Vanguard, wards, as when Mr. Finlay- sat alto saxophonist Steve Vol. I (The Embed- son stays in lockstep with Coleman. This club’s history ded Sets)” (Pi Re- Mr. Coleman through even helped form him. He plays an cordings), docu- JOHN D. AND CATHERINEthe T. MACARTHUR FOUNDATION most challenging unison SAVE essential role in its continu- ments his Five Saxophonist Steve Coleman in 2014 passages. ing legacy. Elements band— Mr. Coleman’s concepts $450 In 1978, Mr. Coleman his primary vehicle—at the form mostly through Mr. are so impressively sturdy, with a limited time hitchhiked from his native club in May 2017, drawing Coleman’s meditations on his band so in sync, that mail-in rebate* Made in Chicago to New York with upon tracks recorded during alto saxophone. The chro- one might overlook the Japan specific intent to play in the three nights to reconstruct maticism of “Figit Time,” strongest connective thread Thad Jones/Mel Lewis Or- two distinct club sets. This composed by one of Mr. here—his alto saxophone chestra. Its regular Monday- music, like all of Mr. Cole- Coleman’s early mentors, playing, which is, by turns, night Vanguard engagements man’s, is structurally com- drummer Doug Hammond, pent-up or reflective. His were, for two years, his first plex yet accessible for its inspires fiery improvisations tone reflects commitment prominent New York gig. Yet rhythmic force, its emotional at a furious pace. The mel- and implies direction. His Mr. Coleman didn’t headline heft and its ingeniously in- ody of “Little Girl I’ll Miss band sounds as if on a well- at the club until 2015. He’s terlaced parts. Layers of per- You,” composed by another informed mission, sharing led a Vanguard week each sonal exploration lie beneath formative influence, alto sax- journey more than destina- year since. its surface, too. Mr. Cole- ophonist Bunky Green, in- tion. These qualities reso- If it took time for Mr. man’s research into writing vites the album’s most ten- nate best in places like the Coleman, who is 61 years old, systems of Kemet (ancient der moments. Throughout, Village Vanguard, where to work his way into that Egypt) informs his composi- Mr. Coleman crafts ribbons jazz tradition has long been lineup, his influence by now tions and makes for unusual of theme that snake and at home. is foundational to any club- song titles. slither, float and unfurl, in goer’s idea of modern jazz. “Nfr” bristles with energy unexpected ways and often Mr. Blumenfeld writes about He refers to his work as and reveals traces of bebop sound like chants. jazz and Afro-Latin music *Qualifying purchase must be made by August 31, 2018. See website for details. “community music.” The grammar. “idHw” finds its This group’s stunning co- for the Journal. . A12 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. SPORTS

NCAA College Football’s Best Baseball Player

BY MATTHEW GUTIERREZ

That Oklahoma football star Ky- ler Murray decided to return to campus this fall means two things: He must really love football. And the Oakland Athletics must re- ally love Murray. The A’s have entrusted their high-priced first-round draft selec- tion to risk getting injured by the defensive linemen of the Big 12 this fall, before reporting to spring training to get his pro baseball ca- reer under way next year. “Generational-type talent: that’s how the Oakland A’s view him,” says A’s scout Chris Reilly. Murray is among a small group of athletes who attempt to play at elite levels of two sports at the same time. He plays both sports exceptionally well, going from pa- trolling center field to calling audi- bles under center on the gridiron. Yet his decision to return to Oklahoma carries risks for both his baseball and football ambitions. After backing up Heisman Tro- phy winner Baker Mayfield last year, he may not even start for the Sooners. Murray is in a battle with redshirt sophomore Austin Kendall for the starting quarterback spot. An OU spokesman said the deci- sion won’t be announced until about one week prior to the sea- son opener, which is Sept. 1. The A’s, meanwhile, say they are not worried. In June, during Mur- ray’s introductory news confer- ence, A’s executive vice president Billy Beane came to the rescue ALBERT PENA/CSM/ZUMA PRESS, JEFF CHIU/ASSOCIATED PRESS when Murray was asked why he’s Oklahoma quarterback Kyler Murray will play for the Sooners this season, before reporting to spring training to get his pro baseball career under way. playing football this fall, not base- ball. “To make it easier, it was a speed is attractive in today’s base- reer—and thus accelerated his up less than an hour before some The Allen, Texas, native kept deal breaker for us if he didn’t go ball. In June, Beane likened Mur- path to MLB draft. Playing in 16 night games. Yet he emerged as a busy last off-season. Seeking feed- back and play [football]” Beane ray to Rickey Henderson, who games in the premier summer force in the Sooners lineup. back that off-season, he would joked. holds MLB records for career sto- league gave him confidence as a Until Aug. 7, Murray wasn’t le- send Johnson video clips of him Going into 2018, Murray was len bases and leadoff home runs. hitter and some needed at-bats. gally allowed to buy himself a hitting at 1 a.m., shirtless. Before best known in the sports world as Murray stands 5-foot-10, 195 “When he arrived, baseball was beer. His father, Kevin, played the 2018 baseball season opener, the backup to Mayfield. In that pounds and has run a sub-4.40 40- kind of secondary to him,” said quarterback at Texas A&M in the Johnson told Riley, Oklahoma’s role, he threw for 359 yards and yard dash, which is less than four Elizabeth Layton, a Harwich Mari- 1980s. His uncle, Calvin, is a for- football coach: “Just a heads-up: three touchdowns for the 2017 Big seconds home to first—on par ners team volunteer. mer pro baseball player and cur- He could be a first-rounder. The 12 champs. “I think it was good for with MLB’s fastest players. In 2017, he hit leadoff in limited rently works for the Boras Corpo- ball’s going off his bat differently.” him to settle a bit behind Baker,” In February 2017, Reilly, the A’s action and played left field for ration, a sports agency based in That was apparent one weekend Sooners head football coach Lin- scout, saw Murray hit leadoff in a Newport Beach, Calif. (Scott Boras, in April, when Oklahoma had a trip coln Riley said in an interview. “He non-conference game against Vil- one of the game’s most powerful south to Texas Christian. Riley learned a lot, and he’s come a long lanova. He reached on an infield agents, represents Murray.) moved up a football practice to way.” single and stole two bases, then Murray is among a small Murray has been juggling base- earlier that week solely so Murray His ascension as a baseball tal- scored on a groundout. “That was group of athletes who ball, football and school for a could attend the baseball trip ent was sudden. He went nearly special, how he took over a game while. His high-school football starting that Friday. He belted two three years without playing base- with his speed,” Reilly said. attempt to play two team didn’t lose a game in his home runs against TCU’s Nick Lod- ball every day, because he red- Before the 2017 baseball season sports at an elite level. three years as a starting QB. His olo, a second-round draft pick out shirted in 2016 after transferring with Oklahoma, he moved from the junior year, he showed up late to a of high school. from Texas A&M. He didn’t play infield to outfield. Sooners head baseball playoff game because he Afterward, Murray flew back to baseball or football that year, and baseball coach Skip Johnson told was busy that morning—taking the campus on a charter with a school he had only 49 at-bats for Okla- him that tracking down a fly ball Oklahoma. In 2018, Johnson moved SAT. He pulled up to the parking administrator in the athletic de- homa in 2017 as redshirt fresh- was no different from catching a him to center so he could get bet- lot during the second inning, partment. There was a football man. Then he exploded this spring, punt. “Coach, I ain’t ever caught a ter reads off the bat, and moved signed some autographs, barely scrimmage the next morning. batting .296 with 10 home runs, up punt,” Murray replied, according him to the cleanup spot. Murray stretched, then belted two doubles Then, later on Saturday, he re- from a .122 average and zero home to Johnson. “I’m a QB.” also changed his swing, adding a while batting ninth, according to turned to TCU for a game, which runs in 2017. Shortly after that 2017 season, leg kick to generate more power. his high school baseball coach, was postponed to Sunday due to The quick turnaround made him he played with the Harwich Mari- “All of a sudden you could see his Paul Coe. rain. When it was finally played, the No. 9 overall pick in June’s ners of the Cape Cod Baseball presence,” Johnson recalled. He became the first athlete ever Murray tallied two hits. MLB draft. He signed a deal that League. Murray was not available This spring, Johnson estimated to be selected for both the Under “This is one of the most dy- included a $4.66 million signing for comment on this article, but that Murray attended only 10 Armour All-America Baseball Game namic athletes that I think we’ve bonus. Johnson says that summer baseball practices because of and Under Armour All-America ever selected here since I’ve been His combination of power and changed his college baseball ca- spring football conflicts. He’d show Football Game. here,” Beane said.

BY ANDREW BEATON NFL formed similarly in picking the early rounds of the tournament, the experts separated themselves Football season is almost back, IGNORE YOUR FRIENDS’ picking the later games. Those are which means fantasy football the ones that are frequently more drafts are already back. Your con- difficult and complicated to pre- versations with friends have dict. shifted from how much beer you FANTASY ADVICE The results may be easiest to drank on the beach to where you understand in other fields where a place Kirk Cousins in your quarter- deep knowledge can be extremely back rankings now that he’s in important and where the subject Minnesota. matters are slightly more compli- It seems like a good way to cated than guessing the weight of craft a draft strategy. If you chop a moose at a carnival. If you ask a it up with other people who love bunch of stargazers to solve a the game, the consensus view on complicated astrophysics problem, Cousins should be better than just collective intelligence won’t help. your individual opinion on Cous- No matter how much they love ins. space, they likely just don’t know But a new study suggests some- enough math to exploit the wis- thing else about your friends’ ad- dom of the crowd. vice: It might be utterly useless. Rogers says this can be applied The research has the potential to fantasy football. People who to change what people think about take part in the popular game tend the idea of the “wisdom of the to have loud opinions. Your friends crowd.” That notion is simple: A may swear it’s ludicrous to spend collection of opinions on a subject an early-round pick on oft-injured is typically better than just one, Patriots tight end Rob Gronkowski. even in circumstances where we’re Or everyone may stop by the wa- not exactly sure why. For example, ter cooler and come to the consen- if people at a carnival are tasked sus that Vikings running back Dal- with guessing the weight of a vin Cook is being underpicked moose, the average of those after last season’s knee injury. guesses is probably better than But then stop to think: No mat- most of the individual guesses. ter how many times everyone Ryan Rogers, an assistant pro- slaps each other on the back after fessor at Butler, tested a version of coming to these conclusions, are this out—using sports knowledge. they really worth anything?

At Butler—famous for its col- DUSTIN BRADFORD/GETTY IMAGES “There’s a passion and there’s an lege basketball Cinderella runs— Is Vikings quarterback Kirk Cousins an elite option in fantasy football? It might depend on whom you ask. interest,” said Rogers, whose pa- Rogers divided his subjects based per has been accepted in the Jour- on their backgrounds and exper- Then the groups filled out NCAA the wisdom of the crowd wasn’t experts and fans. And just because nal of Creative Communications. tise in the field. One group was tournament brackets. The goal was exactly surprising. But the other somebody is a big fan, it doesn’t “But it’s not necessarily a compe- made up of fans with an intense to see what, if any type of effect, results were more curious and less mean they’re an expert—no matter tency that’s being leveraged.” interest in college basketball. The collective intelligence would have intuitive: The college basketball how much they swear to you that There’s another way of saying other group was defined as ex- on the notoriously maddening ex- fans didn’t perform better in a they’re such a big fan that they’re that. Ignore your friends. Your perts; for instance, former players, ercise of trying to pick winners in group. an expert. guess is probably as good as all of coaches or others who might have the NCAA tournament. The experiment focuses on a What was just as telling was theirs combined. Most of the wis- insights that stretch beyond hav- That the college basketball ex- subtle but important distinction: where the experts gained their dom of the crowd in fantasy foot- ing a high level of engagement. perts gained an advantage from There’s a real difference between edge. While experts and fans per- ball is worth bupkis. . THE WALL STREET JOURNAL. Tuesday, August 21, 2018 | A13 OPINION

Treason, Trust—and Trump BOOKSHELF |BY Peter Duffy So Rachel that his intemperance may be the Intelligence Community country’s history, brings a law- The Mafia Maddow is backfiring. Assessment released in 2017? suit,” he wrote. “It will then be now the voice Start with his colleague in If his statement is based on in- very easy to get all of his re- of moderation the Obama administration’s in- telligence he has seen since cords, texts, emails and docu- on Donald telligence community, James leaving office, it constitutes an ments to show not only the And the Mail Trump. Of Clapper. Though the former di- intelligence breach. If he has poor job he did, but how he MAIN course, it’s rector of national intelligence some other personal knowl- was involved with the Mueller STREET only by com- excoriated the president for edge of or evidence of collu- Rigged Witch Hunt.” parison to stripping Mr. Brennan of his sion, it should be disclosed to Plainly Mr. Brennan’s deci- Inspector Oldfield & the Black Hand Society By William By William Oldfield and Victoria Bruce McGurn John Brennan. clearance, he also admitted on the Special Counsel, not The sion to put himself out in front In an inter- CNN this Sunday that “John New York Times.” of the Trump resistance is giv- (Touchstone, 326 pages, $26) view Friday and his rhetoric have become ing his more thoughtful allies on MSNBC, Ms. Maddow an issue in and of itself.” Mes- heartburn. He doesn’t seem to n Jan. 20, 1909, a suspicious package arrived at the gently intimated that the for- sage to Mr. Brennan: Shut your John Brennan’s allies appreciate what Messrs. Clap- O Columbus, Ohio, home of wealthy Italian-American mer Central Intelligence mouth, John, because you are worry his intemperate per and Mullen surely do: that businessman John Amicon. His wife, Teresa, tore Agency director might have doing more harm than good. the unhinged and highly politi- away the wrapping paper to discover inside a stick of gone too far in calling the Mr. Clapper had plenty of presidential criticism cized attacks he’s been direct- dynamite and a letter in Italian demanding that tribute be president “nothing short of company. Retired Adm. Mike is backfiring. ing at Donald Trump after paid, under threat of death, to La Mano Nera—the Black treasonous” for his Helsinki Mullen, a former chairman of stepping down as CIA director Hand. “We have killed kings and emperors,” the letter read. press conference with Vladimir the Joint Chiefs of Staff, lik- may inadvertently be helping “Consider a fly like you!” Putin. Mr. Brennan backed ened Mr. Trump’s plan to strip to advance the case that he Amicon, who ran a wholesale fruit-distribution business, away—but just a little. critics of clearances to Nixon’s Mr. Brennan has responded was equally politicized while rushed to the Federal Post Office and Custom House located “I didn’t mean that he com- enemies list. But he went on to to all this by threatening to on the job. a few blocks from his home and demanded in broken English mitted treason,” Mr. Brennan say that Mr. Brennan’s over- sue the president. It is almost In the end, the heat and to see “Uncle Samma.” He was taken to the office of Frank said. Ms. Maddow pressed the-top charges have “put him certainly a hollow threat. In drama over revoking security Oldfield, a Post Office inspector who had been frustrated in him, noting that treason is a in a political place which actu- addition to having a doubtful clearances for former govern- his investigation of similar threatening letters sent by a “serious allegation” and saying ally does more damage for the legal case, a lawsuit would ment officials is but a proxy Midwestern branch of the Black Hand, the popular name for “if we diagram the sentence, intelligence community.” give the president’s team an for a larger battle. Thus far the a syndicate of Italian- ‘nothing short of treasonous’ Finally, there’s Sen. Richard opening for some uncomfort- best take has been offered by American extortionists means it’s treason.” Burr, the Republican chairman able discovery about Mr. Bren- George W. Bush’s former press active during the early years By Sunday’s appearance on of the Senate Intelligence nan’s behavior. secretary, Ari Fleischer. In a of the 20th century. NBC’s “Meet the Press,” Mr. Committee. Mr. Burr has de- Just one example of a ques- recent tweet Mr. Fleischer says In “Inspector Oldfield and Brennan had shaken loose any fended the intelligence com- tion that might be difficult to that while he doesn’t like the the Black Hand Society,” qualifiers. When asked if he re- munity’s conclusion that Rus- answer under oath: When you politics of retaliation, “it’s authors William Oldfield—the gretted his words, Mr. Brennan sia intervened in the 2016 were CIA director, did you ever worth pointing out that outgo- inspector’s great-grandson— replied, “I called his behavior election to help Mr. Trump speak directly to the press, or ing Obama officials retaliated and Victoria Bruce tell a story treasonous, which is to betray win. Yet in a statement re- ask someone else to speak to against Trump because he won that is a mixture of historical one’s trust and to aid and abet leased last Thursday, he the press, about matters per- the election”—and that they investigation, police procedural the enemy. And I stand very slammed Mr. Brennan for writ- taining to the Russia investiga- did their dirty work in the and family history. “Oldfield much by that claim.” ing a New York Times op-ed tion with the condition that dark. listened intently and scribbled in Mr. Trump’s decision last that accused the president’s you were not named as a “Someone leaked to CNN his notebook,” the authors write, week to revoke Mr. Brennan’s campaign team, without evi- source? If so, whom did you about the dossier briefing and as Amicon announced that he security clearance drew pre- dence, of having colluded with speak to and what information someone unmasked [Mike] “would absolutely testify against the dictable howls from the presi- the Russians. did you convey? Flynn,” tweets Mr. Fleischer. criminals in a United States courtroom.” It dent’s opponents—and equally “If Director Brennan’s state- On Monday Mr. Trump “Trump does his retaliating was just the break the lawman needed. predictable defenses from his ment is based on intelligence tweeted his own response to openly. Obama officials hid Frank Oldfield (1867-1916) isn’t an easy man to love. Born supporters. But the most inter- he received while still leading the threat of a suit: Bring it on. their retaliation, and the MSM into a wealthy family in Ellicott City, Md., he was a lazy esting response has been from the CIA,” Mr. Burr wrote, “I hope John Brennan, the fell for it.” troublemaker who obsessed about his hygiene and who used Brennan allies warning him “why didn’t he include it in worst CIA Director in our Write to [email protected]. his father’s political connections to secure his appointments— first as a post-office clerk and then, at the age of 29, as sheriff of Howard County. During a subsequent (and failed) attempt to win election as circuit-county clerk, he was India Can Become a Key U.S. Partner charged with attempting “to bribe a voter and dispensing liquor on election day.” The authors describe Oldfield as an By Paula J. Dobriansky the U.S. and India into a to the tune of $15 billion since aluminum, and it’s preparing egotistical hothead with a soft side. He would write romantic closer embrace. 2008, its use of Russian to impose retaliatory tariffs of poems to his wife and strike entertaining poses for the ecretary of State Mike America can begin execut- equipment poses interopera- up to 70% on key agricultural camera, “a humorous tradition of Oldfield family men.” S Pompeo last month out- ing an ambitious India strat- bility problems and raises exports. Additional rounds of In 1899, Oldfield’s father called in a favor from the lined a groundbreaking egy at September’s Two Plus concerns about compromising tariffs are reportedly also un- postmaster general and got his wayward 32-year-old son a Indo-Pacific strategy, high- Two meeting in New Delhi be- sensitive technology. der consideration. Given that job as a postal inspector in Tennessee. The position lighting the region’s vital im- tween Secretaries Mattis and India’s decision to procure India sells $48.6 billion in empowered the younger Oldfield, according to the authors, to portance to the United States. Pompeo and their Indian coun- S-400 Russian air-defense goods and services to the U.S., “bust a crime ring anywhere on earth if one of the suspects Ties with India are already terparts. For this effort to suc- systems is particularly trou- its largest export market, a so much as licked a U.S. postage stamp and sent a letter or strong, and together with the ceed, however, three crucial is- bling, since those typically in- good way to proceed would be package through the mail.” But Inspector Oldfield soon Trump administration’s deci- sues need to be resolved. volve substantial service and to grant India a waiver on the buckled under the rigid rules and procedures of the federal sion in July to grant India training components. The newly imposed tariffs and bureaucracy, and was fired for abandoning his post and Tier 1 Strategic Trade Autho- presence of Russian personnel work on negotiating a com- returning home to participate in his brother’s campaign to rization status, a designation The world’s most at the heart of India’s air de- prehensive bilateral trade become the chair of the Howard County Central Committee. given only to close allies, populous democracy fenses, even if only tempo- deal. Upon which daddy made a few more calls and got Oldfield these are good steps. But the rary, could hold up future Dealing with these three reinstated. He was sent to Cincinnati with a pay cut. U.S. should be bolder and seek could thwart China’s U.S.-India defense deals. If the challenges will require policy to transform the U.S.-India re- efforts at domination. S-400 sale cannot be can- makers from both countries to lationship into a robust stra- celed, the best scenario would make difficult compromises. In the early days of the mob in America, tegic partnership. be to persuade India to limit But it’s worth the effort. A before there was the Bonanno crime family, This would provide the the scope of Russian support true strategic partnership of- U.S. with a valuable, demo- First, the resumption of services and turn to another fers tremendous benefits to there was the Society of the Banana. cratic ally committed to U.S. sanctions on Iranian oil country with a strong record both nations: India gains an thwarting China’s intensifying exports Nov. 4 will pose a of using and improving Rus- opportunity to become a real efforts to dominate the re- challenge. India has no affec- sian defense equipment— global power, and the U.S. Inspector Oldfield finally won the respect of his peers by gion. Already India has been tion for the Islamic Republic, namely Israel. gains a mammoth regional taking a lead role in a massive internal investigation, which keen to enhance its relation- but after China it is the sec- Meanwhile, the Trump ad- ally and counterweight to began in 1902, into corruption at the Post Office. The ship with America. Prime ond-largest importer of Ira- ministration can broaden U.S.- China, with the potential for crackdown resulted in 50 indictments. But still Oldfield Minister Narendra Modi nian oil, bought at a substan- India defense cooperation by greater cooperation on issues couldn’t help himself, provoking a fistfight with a federal called the U.S. an “indispens- tial discount. As the U.S. increasing the number of joint of global security. Establishing prosecutor whom he was seeking to question in the probe, able partner” during his 2017 rightly seeks to block Iranian military exercises and expand- a lasting U.S.-India partner- the two men, according to the New York Times, “rolling about visit. As India scholar Ashley oil exports, it must be adroit ing the annual Malabar war ship would be a game-chang- over the marble floor in angry embrace.” Tellis put it, Mr. Modi’s “dar- in persuading India to join. games. The members of the ing success for President In 1907 Oldfield was transferred to Columbus, where he ing decision to collaborate Washington needs to grant In- Quadrilateral Security Dia- Trump and American grand was introduced to the mafia. A fruit seller was found wholeheartedly” with America dia a temporary waiver from logue, an informal dialogue strategy. murdered in nearby Bellefontaine with two Black Hand letters shows he recognizes that “the the sanctions and help New initiated in 2007 by Japan’s in his pocket. Oldfield tried convincing area Italians to talk but U.S. holds the most important Delhi find acceptable alterna- Prime Minister Shinzo Abe Ms. Dobriansky, a senior had no luck until Amicon walked into his office in early 1909. keys for India’s long-term tive energy sources, perhaps among the U.S., Japan, Aus- fellow at Harvard Belfer Cen- The ensuing investigation centered around Salvatore “Sam” success.” Greatly concerned by persuading Gulf allies to tralia and India, should also ter’s Future of Diplomacy Lima, another fruit merchant, who was the capo di tutti capi— about China’s economic and sell oil to India at prices com- be formalized and meet more Project, was undersecretary of boss of all bosses—of a thuggish branch of the Black Hand diplomatic expansionism in parable to Iran’s. regularly. state for global affairs, that called itself the Society of the Banana. Lima and his the Indo-Pacific, India has Second, Russia remains a Third, trade tensions need 2001-09. mustachioed cohorts mailed floridly written extortion letters turned to the U.S for support. major supplier of military to be resolved. India has is- to well-off Italians (“We revel in bloodshed, we smile at tears Pakistan’s increasingly anti- equipment and services for In- sued a formal complaint with Walter Russell Mead is and pleadings and our field of operation is bounded only by American and pro-Chinese dia. While India has purchased the World Trade Organization away. the universe”) and meted out punishment to those who failed policies have also brought weapon systems from the U.S. over U.S. tariffs on steel and to pay. The gang was responsible for a wave of murders, bombings and mutilations. They “carved victims’ faces for refusing to pay extortion demands,” the authors write, “creating walking billboards in Italian neighborhoods Six Months Isn’t ‘Long Term’ announcing their serious commitment to their mission.” In precise, fascinating and occasionally credulity-straining By Robert C. Pozen Yet capital expenditures and manufacturing, or the weak- ways to streamline quarterly detail, the authors recount how Oldfield’s multiagency And Mark J. Roe research-and-development ness of the overall economy. reports, which are long, dense investigation ultimately arrested 14 members of the Black spending didn’t fall signifi- Moving to semiannual re- and cumbersome. Companies Hand in six cities in Ohio and Pennsylvania. “Black Hand? resident Trump tweeted cantly over the next three to porting would, however, have spend too much time and Black Hand?” Sam Lima shouted as he was being led to jail. P on Friday that he had di- six years, according to a significant costs. If financial re- money putting together what “See, my hands, they are white.” rected the Securities and study from the CFA Institute sults were disseminated less amounts to a thick, old-style Amicon was the star witness in a trial that made front- Exchange Commission to study Research Foundation. When frequently, investors would phone book of information. In- page headlines throughout the country, but more than a a suggestion from a business the quarterly requirement have a harder time assessing stead the SEC could require dozen Black Hand victims eventually agreed to testify. The leader, later revealed as outgo- was ended in 2014, invest- firms’ announcements and comprehensive reports only at authors assert that Oldfield and his fellow postal inspectors ing Pepsi CEO Indra Nooyi: ment by U.K. companies market changes. Stock prices the middle and end of each fis- were “the first to successfully take down a widespread “Stop quarterly reporting & go didn’t change. would become less accurate. cal year. In the two other quar- organized crime ring in federal court.” Lima and his fellow to a six month system.” The The temptation for insider ters, disclosures could be lim- mobsters, however, weren’t tried for extortion or murder but popular theory is that quar- trading would increase dramat- ited to financial statements for conspiracy to commit mail fraud. Lima received the terly reporting discourages Trump misses the ically, since executives and ad- plus a concise summary of new stiffest sentence—16 years at Leavenworth—but was paroled firms from making long-term point in suggesting visers would possess nonpublic developments. after serving eight. investments. information for longer. A true reform agenda at the Mr. Oldfield and Ms. Bruce have a weakness for narrative- But switching to semiannual semiannual reporting. A better idea for reforming SEC for streamlined quarterly slowing digressions (“The origins and importance of the reporting wouldn’t help. Find financial reporting would be reporting could make financial United States Post Office date back to the American us CEOs with stockpiles of for firms to stop issuing “guid- reports less costly for compa- Revolution”) and a tendency to describe century-old events good, long-term projects that Across the developed world, ance” on their earnings for the nies to compile and easier for with modern clichés about “game-changing” decisions, they are not pursuing—but investments in property, plant next quarter or year. Once a investors to use. But the idea getting “lawyered up” and “passive-aggressive” workplace that they would, if only they and equipment have declined company puts its reputation on that semiannual reporting will behavior. But this book is most valuable as a great-grandson’s had three extra months to re- since 1990. But in the U.S. the the line by projecting earnings increase long-term investments account of a historically significant relative whom he knew port earnings. Reporting every drop has actually been a few of, say, $1.15 a share, execu- simply isn’t borne out by the only from family legend until one day, in the early 2000s, six months is nobody’s defini- percent smaller than in other tives may scramble and stretch facts or logic—six months is when he started sifting through some dusty boxes of tion of “long term.” Besides, nations, including those with- to avoid missing that mark by not long-term—no matter what investigative files and artifacts that were bequeathed to him. investors have waited patiently out quarterly reporting. The even a penny. Earnings guid- you may see on Twitter. “As I paged through each document in the collection, I felt an as Amazon, Netflix and many most plausible conclusion is ance is not required by the overwhelming sense of responsibility,” William Oldfield biotech firms have followed that reduced U.S. capital SEC, so companies should be Mr. Pozen is a senior lec- writes. “It was my duty to make sure that Frank’s story did long-term strategies. spending is caused by some- able to break this bad habit on turer at MIT Sloan and former not die with me.” In 2007, financial reporting thing else: the shift to capital- their own in response to grow- president of Fidelity Invest- in the United Kingdom moved light and technology-oriented ing criticism. ments. Mr. Roe is a professor Mr. Duffy’s book “The Agitator: William Bailey and the First from semiannual to quarterly. economies, or the rise of Asian The SEC should also study at Harvard Law School. American Uprising Against Nazism” will be published in March. .

. THE WALL STREET JOURNAL. Tuesday, August 21, 2018 | A15 OPINION Trump, McGahn and Iran-Contra’s Lessons

By Peter J. Wallison stories in the Post and 505 in All this throws some light on the Times, an average of more Mr. McGahn’s cooperation with resident Trump’s detrac- than five a day in each paper. If Mr. Mueller’s investigation. It tors see White House you think the media frenzy of seems to be part of a sensible counsel Don McGahn’s co- today is unprecedented, think White House strategy when the P operation with special again. president is not guilty of wrong- counsel Robert Mueller as Under the law in 1986, an “in- doing. In politics, the coverup is a breakthrough in Mr. Mueller’s in- dependent counsel” could be ap- often worse than the crime. If vestigation. From personal experi- pointed by a special panel of ap- Mr. Trump’s advisers have con- ence, I see it as further evidence pellate-court judges. Lawrence cluded that he is innocent, it that the president and his advisers Walsh, a former prosecutor, took makes a great deal of sense to be have concluded Mr. Trump has done the job. He did not issue his re- as open as possible with all in- nothing wrong and has nothing to port until 1993, more than six vestigations, even if the result is hide. years after his appointment. But a media frenzy. It also supports I was White House counsel during Iran-Contra fizzled as a major the argument that Rudy Giuliani, the Iran-Contra affair, a case in public issue once it became Mr. Trump’s private lawyer, is which President Reagan was accused clear that the president was not currently making: There is no of the unauthorized use of govern- guilty of anything and was not need for the president himself to ment funds, illegally selling weapons going to be impeached. meet with Mr. Mueller. to Iran, trading arms for hostages in From the outset, it was clear The president has hurt him- to me that Reagan was innocent self by constantly attacking the of any wrongdoing. He certainly Mueller investigation. He should I was White House counsel had approved the sale of arms be going about his presidential in 1986-87. I cooperated to Iran—which he had publicly business and simply ignoring the acknowledged as his policy. But media’s fascination with the is- with investigators because he refused to admit that he had sue. Nevertheless, he apparently Reagan was innocent. intended to trade arms for the has authorized the release of American hostages that were millions of documents and per-

then held in Lebanon by Hezbol- JONATHAN ERNST/REUTERS mitted interviews with a large lah, the jihadist organization White House counsel Don McGahn and President Trump, June 21. number of White House staff violation of longstanding U.S. poli- that is still an ally and depen- members. It is in that context cies, an illegal coverup, and mislead- dency of Iran. Even if it was a trade, Reagan and his chief of staff, Donald independent counsel. The release of that the McGahn interviews oc- ing Congress and the American peo- it was well within the president’s Regan, that neither knew of what all relevant documents by the White curred, and they are likely to have ple. These charges were pressed powers and not illegal. had come to be called the “diversion House and the Defense and State occurred long ago, since Mr. McGahn eagerly by the media and commit- The responsible parties, it soon of funds to the Contras.” Many departments was probably the rea- was clearly a key witness to the tees of Congress, which was fully became clear, were Oliver North, months later, when Mr. Poindexter son for the enormous number of president’s intentions and would controlled by Democrats beginning then a Marine lieutenant colonel on finally testified to Congress, he said press articles. Any document that have been among the first to be in 1987. As today, the media—led by the staff of the National Security that he had authorized the diver- suggested a problem for the presi- called for an interview. the New York Times, the Washing- Council, and John Poindexter, the sion and not told the president. Un- dent was immediately leaked and None of this proves that the pres- ton Post and CNN—and Democrats president’s national security ad- til that statement, there remained set off more rumors and imputa- ident is innocent, but it would be an in Congress hoped to bring about viser. Having received the presi- hope among Reagan’s opponents tions from unnamed sources about incomprehensible strategy if he is the impeachment of a Republican dent’s authority to ship arms to that he would be found responsible his presumed guilt and impeach- not. president. Iran, they had used the proceeds to and ultimately impeached. ment jeopardy. In writing my book about the support the Contras, a rebel group Having concluded at the outset of The price for this was a terrible Mr. Wallison is a senior fellow at Reagan presidency, I counted the fighting the communist government the scandal that there was no legal year for the president and all of us the American Enterprise and author number of articles about Iran-Con- of Nicaragua. jeopardy for the president, I autho- in the White House. Yet Reagan left of “Ronald Reagan: The Power of tra in the Times and the Post be- The misuse of the proceeds of rized, in my capacity as White office at the end of eight years hav- Conviction and the Success of his tween Nov. 6, 1986, when the scan- the arms sales—funds that belonged House counsel, cooperation with the ing accomplished what he intended Presidency” (2002) and “Judicial dal became public, and Jan. 31, 1987, to the U.S.—probably would have congressional investigating commit- when he took the job—and with pos- Fortitude: The Last Chance to Rein In when I got tired of counting. In that been an impeachable offense. Yet it tees and the independent counsel. I itive approval ratings that improved the Administrative State,” forthcom- three-month period, there were 555 was clear from my discussions with also met with and testified to the over time. ing in September. Two New Lawsuits Seek to Stop Discrimination Against Religion By Tim Keller the country, they face similar dis- select a religious school for their and the participants must exercise a preserving funding for the then- And Michael Bindas criminatory laws rooted in antireli- children. But in 1980 the state at- genuine choice between religious Protestant common schools most gious animus. A victory in their torney general declared that al- and nonreligious options. states operated. As the U.S. Su- ave and Amy Carson live cases could clear the way for states lowing religious options in the The educational programs in preme Court recognizes, at the D with their 15-year-old daugh- to adopt programs that empower program violated the First Amend- Maine and Washington, like the one time, “sectarian” was code for ter, Olivia, in Glenburn, parents—rather than government— ment’s Establishment Clause. In in Zelman, are programs of true pri- “Catholic.” Maine. Like many small towns to direct the education of their conjunction with the First Liberty vate choice, but they are hardly Despite the failure to pass an across the state, Glenburn, popula- children. Institute, we’re filling a federal neutral toward religion. Religion is amendment at the federal level, na- tion 4,543, is too small to maintain In Washington, the state govern- challenge to Maine’s antireligious the one choice that Maine and tivist politicians were able to get its own public high school. Instead, ment operates a work-study pro- actions Tuesday. Washington prohibit. Blaine Amendments added to most the local government gives families gram that pays a portion of college The second decision is Trinity state constitutions. Although Maine the money it would otherwise students’ wages for part-time jobs, Lutheran, which established that re- never incorporated such language spend on education and lets them often in fields related to their ma- The cases seek to expand ligious neutrality isn’t optional. A into its constitution, the decision to choose a public or private school jors. The program allows students Supreme Court precedent Missouri preschool, the court held, ban religious schools from the edu- for their children. to earn money for school, reduce couldn’t be excluded from a play- cation program accomplished a There’s a catch: Maine won’t al- reliance on student loans, and gain and establish equality ground improvement program that similar result. Washington’s consti- low parents to spend taxpayer valuable job experience. Students for sectarian education. was open to nonreligious private tution does contain Blaine lan- money on a religious school. Fami- may work for almost any type of schools. Chief Justice John Roberts, guage, and it is the reason cited by lies like the Carsons, who believe a employer—public or private, for- in a decision joined by five other the government for excluding sec- religious school is the best choice profit or nonprofit. justices, explained that “the exclu- tarian employers from its work- for Olivia, get nothing. Employers the state deems “sec- Two Supreme Court decisions sion of Trinity Lutheran from a study program. In Trinity Lutheran Church v. tarian,” however, are excluded, no pave the way for eliminating the public benefit for which it is other- The Supreme Court has made Comer (2017), the U.S. Supreme matter what job the student may discrimination against religious op- wise qualified, solely because it is a clear that Blaine Amendments and Court ruled that the First Amend- perform. A student could be paid to tions in Washington and Maine. church, is odious to our Constitu- other discriminatory government ment prohibits states from discrim- feed the homeless at a shelter, pro- First, in Zelman v. Simmons-Harris tion . . . and cannot stand.” regulations don’t square with the inating against religion in the oper- vided it isn’t run by a church. A (2002), litigated by the Institute for Missouri’s exclusionary rule was First Amendment. It is time for fed- ation of government programs. Two student could tutor a child at a pri- Justice, the justices held that based on the “Blaine amendment” eral courts to follow Zelman and new federal suits, in Washington vate elementary school, but not if school-voucher programs that in- in its state constitution. James G. Trinity Lutheran and give families state and Maine, seek to build on that school is religious. Our organi- clude religious options don’t violate Blaine, perhaps Maine’s most ac- across the country the full freedom that precedent to end government- zation, the Institute for Justice, the Constitution. The decision estab- complished politician, is sadly re- of choice that is their right. mandated religious discrimination filed a lawsuit last week to end that lished a simple test for determining membered for an explicitly anti- in programs that pay for work- discriminatory practice. whether such programs are permis- Catholic amendment he proposed to Messrs. Keller and Bindas are at- study programs and high-school tu- Maine’s tuition program dates sible: The government must remain the U.S. Constitution. It would have torneys with the Institute for Jus- ition. Although the plaintiffs in to the 19th century, and for most neutral with regard to religion—nei- prohibited government funding for tice, which litigates educational these cases live at opposite ends of of that time, parents were free to ther favoring nor disfavoring it— so-called “sectarian” schools, while choice programs nationwide. The Fed Should Raise Rates, but Not the Ones You’re Thinking By Jason Furman good, there’s a de facto easing of This doesn’t necessarily mean rais- evaluate financial risks in real time. important new tool because the standards, which exacerbates lend- ing the average level of regulation Eric Rosengren, president of the conventional responses may be lim- he Federal Reserve has kept ing booms. Then when asset values or reversing the Trump administra- Boston Fed, has shown that in meet- ited. When the next recession hits, T rates too low for too long. I’m crash and defaults proliferate, regu- tion’s deregulatory efforts, which ings of the Federal Open Market the Fed probably won’t be able to not referring to interest rates. lations become tougher to meet, are separate debates. Committee from 1987 through 2008, cut interest rates by its recent av- It’s high time for the Fed to raise which worsens credit crunches and Policy makers in the U.S. have a mentions of financial instability have erage of about 600 basis points. countercyclical capital-buffer rates, recessions. limited set of macroprudential tools generally not increased until after And although there is still substan- which govern the amount of extra Optimal regulation from the per- compared with other advanced the fact. Financial vulnerabilities of- tial economic space for fiscal stim- equity and cash banks are supposed spective of a single bank, which ig- economies. The Fed can raise re- ten become apparent only when the ulus, politicians may not see it that to hold in good times. Increasing the nores these economic spillover ef- quired capital-asset ratios when way. capital buffer would reduce the risk fects, therefore will be suboptimal warranted (allowing 12 months for It’s difficult to predict the precise of financial instability, set a prece- for the system as a whole. Knowing compliance) by up to 2.5 percentage Lift capital standards macroeconomic and financial effects dent for sound macroeconomic man- this, smart regulators should work points. The Dodd-Frank Act speci- while the sun is shining, of a countercyclical policy, given the agement, and build up a bigger consciously to be countercyclical, in- fied that capital requirements American economy’s lack of experi- cushion for the next downturn. creasing what is termed “macro- should increase in “times of eco- and then they can be cut ence here. Raising capital buffers Banking regulation naturally has prudential” regulation during booms nomic expansion.” The Fed has in- once the rain arrives. would increase the cost of lending a pro-cyclical bias. When times are and relaxing it during recessions. terpreted that phrase narrowly as somewhat, though probably not as “during periods of rising vulnerabili- much as some banks claim. Such un- ties in the financial system,” defined certainty is precisely the argument as financial activity that is “not well economy starts to struggle, by which for learning to work this tool while PUBLISHED SINCE 1889 BY DOW JONES & COMPANY supported by the underlying eco- point tightening regulations becomes the economy is strong. If it seems Rupert Murdoch Robert Thomson nomic fundamentals.” counterproductive. Moreover, basing appropriate, the Fed could slow the Executive Chairman, News Corp Chief Executive Officer, News Corp The Fed’s own standards, which decisions on the Fed’s risk assess- path of rising interest rates and in- Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher focus on financial indicators, sug- ment could turn any announcement stead rely on the potentially more- gest that now is the time to increase of higher capital requirements into a direct tool of increased capital re- Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; countercyclical capital buffers. The distress signal. quirements to cut some of the Jason Anders, Chief News Editor; Thorold Barker, Edward Roussel, Chief Innovation Officer; Europe; Elena Cherney, Coverage Planning; Fed’s latest monetary policy report An even stronger rationale for financial froth. Anna Sedgley, Chief Operating Officer Andrew Dowell, Asia; Neal Lipschutz, Standards; to Congress, submitted last month, raising capital standards now is the Asking banks to lay more capital Meg Marco, Digital Content Strategy; OPERATING EXECUTIVES: lists several risks, including elevated macroeconomic situation. The un- aside while the sun is still shining Alex Martin, Writing; Michael W. Miller, Features Ramin Beheshti, Product & Technology; & Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; price/earnings ratios, stretched com- employment rate is below 4%, and would strengthen their ability to Rajiv Pant, Product & Technology; Ann Podd, News Jason P. Conti, General Counsel; mercial-property valuations and ris- growth is well above 2%. Acting withstand the next rainy day. It Production; Matthew Rose, Enterprise; Tracy Corrigan, Chief Strategy Officer; ing delinquency rates for some con- while the economy is robust would would lessen the risk of future bail- Michael Siconolfi, Investigations; Frank Filippo, Print Products & Services; Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; sumer loans. The U.K., France and set a precedent, moving the Fed’s outs. And by calming the markets it Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; eight other European countries al- decision making on capital stan- would reduce the chances of another Carla Zanoni, Audience & Analytics Nancy McNeill, Advertising & Corporate Sales; ready have raised their capital-buf- dards toward a more predictable ap- crisis in the first place. For the Fed’s Christina Van Tassell, Chief Financial Officer; Gerard Baker, Editor at Large Suzi Watford, Chief Marketing Officer; fer requirements by up to 2 percent- proach, like the one for setting in- initial foray into a strong counter- Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International age points, reacting in many cases terest rates. cyclical policy, that sounds like a Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher to less financial excess than is evi- Finally, raising capital buffers pretty good start. WALL STREET JOURNAL MANAGEMENT: Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; dent in the U.S. today would give the Fed the abil- Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head The Fed should not, however, ity to lower them during a reces- Mr. Furman, a professor of prac-

EDITORIAL AND CORPORATE HEADQUARTERS: lean too heavily on financial indica- sion, which could soften the down- tice at the Harvard Kennedy School, 1211 Avenue of the Americas, New York, N.Y., 10036 tors in making this decision. It has turn by helping banks avoid cuts to was chairman of the White House Telephone 1-800-DOWJONES a poor track record of trying to lending. This could be an especially Council of Economic Advisers, 2013-17. . A16 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. WORLD NEWS China Revamps Museums to Boost Xi President is extolled for his reforms, overshadowing Deng and other leaders

BY CHUN HAN WONG

SHENZHEN, China—When a museum paying tribute to China’s economic reforms opened here in December, visi- tors were welcomed by a pan- oramic sculpture depicting a local visit by Deng Xiaoping, hailed in Communist Party history for launching the country’s rise to prosperity. Then in early June, the mu- seum was closed for what it called “upgrading.” When it reopened in August, the sculp- ture was gone, replaced by video screens showing local development and a beige wall adorned with a quote from President Xi Jinping. China’s Communist Party is celebrating the 40th anniver-

sary of policy overhauls, BILLY H.C. KWOK FOR THE WALL STREET JOURNAL widely credited to Deng, that A sculpture of former Chinese leader Deng Xiaoping, seen below in 1984, was removed from a museum that now features photos and quotes from President Xi Jinping, above. transformed an impoverished country into the world’s sec- to bolster Mr. Xi’s authority by sion-making powers and Merchants Group, a Hong ond-largest economy. Yet cementing his own story for scrapped presidential term Kong-based conglomerate. much of the state-backed fan- China: the Communist Party— limits. He has insisted that At its December opening, fare has focused instead on led by a strong and astute “the party leads everything” Shenzhen’s propaganda chief Mr. Xi, playing up his eco- leader—shepherding the Chi- and declared a new era for said he hoped the museum nomic credentials while dilut- nese people toward restored “socialism with Chinese char- would become a base for pa- ing Deng’s prominence in national glory. acteristics”—a Deng-era slo- triotic education. party lore. This has unsettled some gan that provided ideological At the entrance, visitors now “This is mythmaking in ac- Chinese, who worry their footing for market remedies. see Mr. Xi’s words instead of tion,” said Julian Gewirtz, a leader is reviving a Mao-style Efforts to repackage recent the sculpture featuring Deng, historian at Harvard Univer- dictatorship. Last month, a economic history around Mr. which the museum previously sity who has studied Chinese professor at the prestigious Xi gathered pace in June, described as its centerpiece. economic reforms. In shaping Tsinghua University stirred when the party launched a “During the 40 years of re- narratives about China’s fu- debate with a widely read es- publicity drive for the reform form and opening-up, we have ture, Mr. Xi is “claiming say condemning Mr. Xi for anniversary. created a new road, a good greater authorship over what he called the president’s At the national art museum road, by bravely daring to pio- China’s past.” authoritarian turn and efforts in Beijing, paintings of Mr. Xi neer and boldly undertaking

Since taking power in late to generate a personality cult. KEYSTONE PRESS AGENCY/KEYSTONEand USA/ZUMA PRESS his late father—who self-reform,” read part of the 2012, Mr. Xi has sought to The pushback hasn’t slowed helped steer reforms as a pro- quotation from a speech Mr. adapt Chinese history for his the pro-Xi publicity drive, which tion from Mao’s one-man Deng. Weeks after becoming vincial chief—were displayed Xi gave in February. agenda, rewriting official ac- is tapping the reform anniver- rule—with its lurches into radi- Communist Party chief, he prominently at a reform-anni- The main exhibition con- counts while flexing legal and sary to demonstrate the presi- cal politics—to an era of collec- traveled through Guangdong versary exhibition, overshad- cludes with a section on Mr. media muscles to enforce his dent’s commitment to overhaul- tive, stable and relatively pre- province in China’s south on a owing artwork depicting Deng Xi’s “Belt and Road” initiative narratives. Officials have up- ing China’s slowing economy dictable leadership. His policies trip that echoed one Deng had and other past leaders. to build global trade infra- dated textbooks and museums and challenge foreign criticism set clearer divisions of duties taken two decades earlier, Renovations at the Shen- structure. to imprint the president’s poli- of Beijing’s industrial strategy. between the party and govern- stopping at a Shenzhen park zhen museum dovetail with “Comrade Xi Jinping has cies. A new law prescribes Deng has been a towering ment and allowed the party’s to lay flowers beneath a statue the pro-Xi drive. Located in raised the banner of reform,” criminal and civil penalties for figure in China, even after his dominance to slip. De-empha- of the former leader. the city’s Shekou district, a reads the section’s introduc- defaming party-approved “he- death in 1997. He is revered for sizing Deng’s role helps Mr. Xi Since then, Mr. Xi has dis- test bed for many Deng-era re- tory text. “A new era of ideo- roes and martyrs.” guiding the country’s economic unravel some of those policies. mantled parts of Deng’s leg- forms, it was commissioned in logical liberation is sweeping The goal, historians say, is transformation and its transi- Mr. Xi once eagerly invoked acy. He has centralized deci- 2015 by state-owned China through China.” Families Split by Korean War Are Briefly Reunited

BY YUN-HWAN CHAE be followed by another be- their meeting in April, the ginning Friday, was the first first summit in more than a SEOUL—Families separated in three years and the 21st decade. for decades were reunited as since relations between the Mr. Moon has called on Seoul and Pyongyang pushed Koreas thawed in 2000. In North Korea to allow reunions ahead with humanitarian en- all, more than 4,000 sepa- regularly on humanitarian gagement, even as nuclear rated families have been grounds, setting politics talks stall between the U.S. given a chance to reconnect— aside. and North Korea. before being pulled apart “That we have let thou- Some 89 South Koreans— again, almost certainly for- sands die without knowing including a 101-year-old man— ever. whether their loved ones are traveled by bus Monday to the still alive is shameful for the Mount Kumgang resort, just governments of both North north of the demilitarized and South Korea,” Mr. Moon zone, to meet family members The tearful reunions said at a meeting with his ad- they hadn’t seen since the come amid concerns visers on Monday. “We must 1950-53 Korean War displaced make family reunions the No. 1 GREAT RATES on CERTIFICATES millions of people. that denuclearization priority of inter-Korean hu- Hugs and tears filled the efforts have stalled. manitarian projects.” meeting hall, according to Mr. Moon, whose parents pool reports and video footage hail from North Korea, has rel- from South Korean journalists atives living there, and at- accompanying the group. The two Koreas have con- tended a reunion in 2004. PENFED’S CERTIFICATE RATES UP TO Paek Seong-gyu, 101, tinued to foster a conciliatory Nearly seven decades after 5X HIGHER THAN NATIONAL AVERAGE beamed as he met his weeping mood this year through the the war broke out, 21% of the daughter-in-law and grand- ups and downs of exchanges 56,862 South Koreans regis- daughter from the North. between the U.S. and North tered for reunions are aged 90 While another granddaughter Korea over Pyongyang’s nu- or older, according to South ONE PENFED APY 2.45% who had accompanied him clear program. North Korean Korea’s Red Cross. leader Kim Jong Un is set to The last round of reunions YEAR NAT’L OVER 5X THE NATIONAL AVG* from the South snapped pic- AVG tures, his daughter-in-law host South Korean President came in 2015 during a warm- .42% showed him photographs of Moon Jae-in next month in ing of ties between Pyongyang his son, who died never having Pyongyang for the year’s third and the then-conservative seen his father again. inter-Korean summit. The re- government in Seoul. But rela- The three-day reunion, to unions were agreed upon at tions worsened again soon FIVE PENFED APY 3.00% thereafter. Monday’s reunions took YEAR NAT’L NEARLY 3X THE place under the watchful eyes AVG 1.07% NATIONAL AVG* of North Korean officials, though the 11 hours the fami- lies are allowed to be together over the three days include APY 1.00% 2.00% 3.00% three hours in private. Calling out his name, 92- *Source as of 7/26/18: www.fdic.gov/regulations/resources/rates/ year-old Lee Keum-seom em- braced her North Korean son, Ri Sang Chol, 71. As he showed her pictures of her We have a proud history of serving those in the late husband, his mother gripped his hands and pep- Armed Forces, Department of Defense, Department pered him with questions of Homeland Security, Military Associations, eligible about other family members north of the DMZ. veterans and retirees, and their families. You may also The humanitarian exchange is taking place against the qualify through membership in select organizations backdrop of international within our field of membership. sanctions against North Korea. South Koreans were urged to limit the value of any gifts they brought north to roughly PenFed.org 100,000 won (about $89) and To receive any advertised product, you must become a member of PenFed Credit Union. were barred from giving lux- PenFed Annual Percentage Yield (APY) is current as of August 1, 2018, and is subject to change. Minimum opening deposit is $1,000. A penalty will be imposed for early withdrawal. This will reduce earnings on the account. For all certificates funded by ACH, funds cannot be withdrawn within the first ury items. 60 days of the account opening. © 2018 Pentagon Federal Credit Union

O JONG-CHAN/KOREA PRESS POOL —Andrew Jeong Two relatives reunite at a gathering of South and North Koreans. contributed to this article. . TECHNOLOGY: FARFETCH FASHIONS AN IPO B4 BUSINESS&FINANCE

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Key Acquisition Tyson's move to purchase Tyson to Buy a Top Meat Supplier restaurant supplier Keystone Foods for $2.16 billion comes as Keystone Foods deal Keystone Foods, expanding grow,” Tyson Chief Executive products, driving down prices. “an oversupply of protein.” meat companies grapple with the Springdale, Ark.-based Tom Hayes said on a confer- Over the past four years, Keystone’s business is rising supplies and tariffs. aims to bolster sales company’s business selling ence call. Tyson shares rose Tyson has spent billions of weighted toward the U.S., to restaurants amid meat to fast-food chains and 1.6% to $63.40 on Monday, and dollars on deals for supermar- where about two-thirds of its Tyson’s performance adding processing plants to its have fallen 22% year to date. ket standbys such as Hillshire overall sales are generated, Year-to-date surge in production network in the U.S. and Asia. Tyson, the largest U.S. meat Farms lunch meat and Jimmy primarily supplying products $85 a share The purchase aims to fur- supplier by sales, and compet- Dean sausages, as well as up- such as chicken nuggets and 80 BY JACOB BUNGE ther shift Tyson’s business to- itors such as Pilgrim’s Pride starts like the organic brand fish filets to restaurants. In ward higher-profit products, Corp. and Sanderson Farms Smart Chicken. Those acquisi- Asia, Keystone sells a wider 75 Monday $63.40 Tyson Foods Inc. agreed to such as chicken nuggets and Inc. are struggling as new tions were geared toward lift- range of meat products. 70 acquire a top meat supplier to fish filets, and away from pork and chicken plants lift ing the company’s profit mar- Supply deals with restau- McDonald’s Corp. and other slabs of nonbranded, commod- U.S. meat production to a re- gins and insulating its sales rant chains can be less profit- 65 chains, in a bid to boost its ity meat that tend to be less cord. Analysts expect poultry from the type of commodity- able than distributing name- 60 sales to restaurants as rising profitable and prone to market and red meat in storage to hit market downdraft now vexing brand goods to grocery stores, supplies and tariffs squeeze swings. a record this year at the same the U.S. meat sector. Still, Ty- but are generally very stable, 55 U.S. meat companies. “Particularly internation- time major importers such as son last month lowered its according to analysts. JFMAMJJA Tyson said Monday it would ally, we see this as a tremen- Mexico and China have raised profit forecast for the year, Mr. Hayes told investors Source: SIX pay $2.16 billion in cash for dous platform to continue to tariffs on U.S.-produced meat citing the effects of tariffs and PleaseturntopageB2 THE WALL STREET JOURNAL.

Brewers Tap Into Africa’s Huge Market as the Party Fades Elsewhere Four major brewers are generat- Total ing 98% of Africa's beer profits, but while beer is gaining popularity, economic conditions Struggles and social unrest dictate yearly swings in growth. Over Its Africa beer market share, 2017 Market share Beer volume accounted Iran Stake for by Africa BY BENOIT FAUCON 0% 20 40 60 80 100 Anheuser- Busch InBev Total SA is having difficulty unloading its stake in a $5 bil- Castel lion natural-gas project in Iran to a Chinese partner, after Heineken stopping work on the project earlier this year due to U.S. Diageo sanctions. Iranian Oil Minister Bijan Zanganeh confirmed Monday Volume of beer sold in Africa, that the French oil giant had change from a year earlier left the project in the South 8% Pars natural-gas field. Total had flagged in May that it 6 planned to do so, ahead of a Nov. 4 deadline to divest itself 4 from its stake in the project to comply with sanctions. 2 The French company has concluded in recent weeks that 0 it was unlikely to receive a 2005 ’10 ’15 U.S. exemption from sanctions, Sources: Plato Logic Limited; photo: Edward according to a Total staffer fa- Echwalu for The Wall Street Journal miliar with the matter. THE WALL STREET JOURNAL. Customers drink Chibuku, a popular beer at a bar in Uganda’s Mukono district. Africa’s importance to brewers is growing. B5 “I think it’s over,” the per- son said. “Now, how do we exit?” Total, according to people familiar with the matter, is Workers holding talks to transfer its CPAs Fight for Their ValuationTurf 50.1% stake to state-owned China National Petroleum BY MICHAEL RAPOPORT in annual revenue, as those as- that financial professionals business valuation. He likens it Corp., which holds 30% in the Deal With sets have grown more promi- tack after their names, just to being allowed to become a development. China has said it Some CPAs are up in arms nent on companies’ balance like “CPA” itself. medical specialist without plans not to follow U.S. sanc- about a move by their indus- sheets. But a group of prominent first obtaining an M.D. degree. tions on Iran. Too Many try’s main trade group to al- That growing demand is CPAs has objected. They con- The AICPA disagrees. “We Total doesn’t expect to sell low people from outside their what kicked off the fight in tend that making the ABV cre- actually think this is going to its stake to CNPC, but wants to ranks to be credentialed to the first place. The American dential available more broadly enhance the value of the ABV be compensated for about $50 Bosses help companies value complex Institute of CPAs, the body will water down its signifi- credential,” said Susan Coffey, million it has spent on the BY LAUREN WEBER assets. that represents certified pub- cance and confuse businesses. the group’s executive vice project, according to people AND LYNN COOK Caught in the crossfire: lic accountants, decided to They also say the AICPA acted president of public practice. familiar with the matter. companies that more than meet that demand by expand- behind closed doors, without “We’re not going to offer it to Iranian contractor Who’s the boss? Many ever need specialists to help ing the eligibility for its Ac- consulting members who anyone who’s not qualified.” Petropars, which owns the re- workers say they have more assess hard-to-value assets, credited in Business Valuation would be affected. About 3,000 CPAs in the maining 19.9%, is receiving up- than one, and that is causing such as brand names and cus- credential. “It’s going to reduce the U.S. are ABVs as well, Ms. Cof- dates about the negotiations, frustration and confusion in tomer relationships. The de- The AICPA said in May that value of that brand in the mar- fey said. The AICPA governing these people said. the office. mand for such services has it would offer this designa- ketplace,” said Harold G. Mar- council’s vote in May deemed A Total spokeswoman de- More than two-thirds of grown dramatically in recent tion—an ABV—to those who tin Jr., a Virginia CPA and ABV that “qualified finance profes- clined to comment and CNPC employees polled around the years into an industry that aren’t CPAs. The three-letter holder and a former chairman sionals,” and not just CPAs, didn’t respond to a request for world say they have to consult generates more than $4 billion abbreviation is a denotation of the AICPA’s conference on PleaseturntopageB2 PleaseturntopageB2 with more than one boss to get their jobs done, according to a Gartner Inc. survey, and nearly STREETWISE | By James Mackintosh as many waste significant INSIDE amounts of time waiting for guidance from senior leaders. The lack of clear goals has Being a Contrarian Paid Off on Turkey caused some employees to try to manage their managers. Distinguishi market rally,” says Mr. A few years ago at a prior ng between Dead-Cat Bounce McNamara. job, Girish Rishi had a boss skill and luck The contrarian bet was to buy Turkish lira Of course, as a financial who became distracted by ev- is the biggest after the currency collapsed earlier this month. journalist writing about the ery minor crisis or triumph, difficulty topic I couldn’t trade real leading to “whiplash” for his investors face 5.00 lira per dollar Bet begins Bet ends lira. My bet was that the subordinates, says Mr. Rishi, when picking a fund Turkish lira would rise; Mr. now chief executive of JDA manager. I’m happy—as a 5.50 McNamara’s, that it would Software of Scottsdale, Ariz. VIDEOGAME newspaper columnist—to put fall. (For fun, we also tossed “If there was news about a my hand up and accept that in a bet on Tesla shares.) 6.00 competitor, it would take up RABBIT HOLE my latest successful Our friendly stake was lunch. half your day,” he says. “If GROWS DEEPER financial-market wager That is even less financially there was a customer win, the benefited from luck. 6.50 risky for me than a wager celebration would go on too But the 20%-plus gain in with other people’s money is long. Focusing on structure MEDIA, B4 three days from betting on 7.00 for most fund managers, but and priorities was missing.” the Turkish lira wasn’t pure the “trade” was public— Mr. Rishi says he tried his luck: It also shows the value 7.50 arranged on Twitter— best to insulate his team from of a contrarian approach. so I did have some the chaos. He also developed My bet was with a fund Aug. 89 10 13 14 15 16 17 20 reputational risk. his own management system manager, GAM’s Paul Note: Scale inverted to show lira weakness. Through 5:29 p.m. ET Monday I was lucky in timing both based around efficiency. At McNamara, who has been Source: FactSet THE WALL STREET JOURNAL. the start and end of the JDA, a maker of supply-chain bearish on Turkey for two trade close to the weakest software, he requires meetings years based on his analysis contrarianism. It was weakness, and money was and strongest the lira has to be intensely focused and of the country’s financial obvious both from the pouring out. been in the past week (the only eight or 30 minutes long, problems. He had made accelerating moves in the It was time to go against very best possible gain and he asks participants to money from the plunging lira and from the comments the herd. The lira had moved would have been 27.4%, submit materials 48 hours in currency, and I shared his by other investors that a lot, and a lot of really bad against 20.5% by the time advance. DEALS LIFT and the broader market’s everyone had now news was needed to justify Mr. McNamara conceded). While that isn’t always pos- skepticism about both recognized that Turkey was, it. Plus, if the news turned But I let my contrarian sible, Mr. Rishi says, he finds THE DOW’S Turkey’s kooky monetary if not broken, at least very out better than expected, approach be my guide: When that for roughly 70% of all SPIRITS policies and its deep badly sprained. those late to the sell-Turkey everyone else was extremely meetings, “people come pre- financial vulnerabilities. Fund managers who knew consensus would quickly pessimistic, it was time pared, they’ve summarized Why, then, did I think the little or nothing about get out. to “buy.” their thoughts and they’ve MONDAY’S MARKETS, B11 lira was worth a flutter? Turkey were pontificating “The strongest rally in the It is hard to test how well PleaseturntopageB2 The answer is pure about its macroeconomic world is always a bear- PleaseturntopageB10 .

B2 | Tuesday, August 21, 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. CNPC says the Iranian gov- A Estee Lauder...... B3 L Iran Stake ernment still owes the Chinese Abbott Laboratories.B12 Etsy...... B12 Lannett...... B3,B12 firm funds from that period, Airbnb...... B10 Expedia Group...... B10 M according to a person familiar Alibaba Group Holding F Is Problem with the talks. A spokeswoman Macy's...... B11 ...... B4 for Iran’s Oil Ministry didn’t Farfetch UK...... B4,B12 Marfrig Global Foods American Airlines Group respond to an additional re- Financiere Richemont ...... B2 ...... B11 For Total quest for comment...... B12 Matchesfashion.com Amneal Pharmaceuticals Total announced it had ...... B12 ...... B3 G Continuedfromthepriorpage signed a preliminary deal to McDonald's...... B1,B11 Anheuser-Busch InBev General Electric...... B3 comment. invest in the venture hours be- N ...... B5 GetYourGuide...... B10 A spokeswoman for Iran’s fore Donald Trump was Apax Partners...... B12 Gold Reserve...... B3 Nielsen Holdings...... B3 Oil Ministry said the project’s elected president in November B P shareholding structure hadn’t 2016. Sanctions had been H changed and talks to replace lifted by President Obama in Bank of America...... B10 Panasonic...... A2 Heineken...... B5 Total were continuing. January 2016. BHP Billiton...... B11 Peak Games...... B4 held Castel...... B5 Officials at CNPC and China The French company later Bon Ton Stores...... B3 Peek Travel...... B10 Hertz Global HoldingsB3 Petroleum & Chemical Corp. agreed to invest $1 billion and Booking Holdings PepsiCo...... A1,B11,B12 Hilton Worldwide have previously complained was awarded a 50.1% stake in ...... B10,B12 Petroleós de Venezuela Holdings...... B3 about challenges they face fi- the development—the biggest C ...... B3 I nancing other projects in the EPA/SHUTTERSTOCK such commitment by a Euro- China National S Islamic Republic. Iranian Oil Minister Bijan Zanganeh, left, and Total CEO Patrick pean company to invest in Iran Interactive Brokers Petroleum...... B1 SodaStream CNPC has been slow to Pouyanne before a signing ceremony in Tehran last year. in recent times. Group...... B10 Citgo Petroleum...... B3 International reach an agreement on But in May, the Trump ad- Coca-Cola...... B12 J ...... A1,B11,B12 whether it will replace Total, The Chinese company is re- couldstepintotakeoverTo- ministration withdrew from a ConocoPhillips...... B3 JD.com...... B4,B12 Sports Direct according to people familiar luctant to take an 80% stake, tal’s stake, Iranian oil officials nuclear agreement with Teh- Crystallex International Jerome Stevens International...... B3 with the discussions. which would grant it full con- have previously said. But a ran and other world powers ...... B3 Pharmaceuticals T At issue is the question of trol of the project. As the op- purely Iranian project would and said it would reinstate D ...... B3,B12 Tesla...... A1,A2,B10 how the Chinese company erator, CNPC could attract at- limit access to capital and sanctions on Iran’s oil. Total Diageo...... B5 K Total...... B1 would pay for the project now tention from the U.S., that technologies. stopped all works in the Is- that financial channels in the person said. “CNPC doesn’t CNPC and Total had both lamic Republic, saying it E Keystone Foods...B1,B11 TourRadar...... B10 Tyson Foods...... B1,B11 United Arab Emirates and Tur- seem to want the operator- been involved in the same couldn’t afford the risk to its eBay...... B12 Klook Travel Technology key have been cut off after ship,” he said. project years ago but pulled North American investments Y Elliott Management...B3 ...... B10 pressure from Washington, the As a matter of last resort, out due to previous sanctions and ties to the U.S. banking Epic Games...... B4 Kohl's...... B11 Yoox...... B12 people said. Iran’s state-run Petropars from 2010 onward. system. INDEX TO PEOPLE Too Many A H N Ahuja, Deepak...... A2 Hayes, Tom...... B1 Neeza, Florence...... B5 Bosses in B Herzog, Bonnie...... A4 Nooyi, Indra...... A4 J Berger, Marc...... B10 O Workplace Buckland, Robert...... B10 Jackson, Jamere...... B3 Ojo, Babatunde...... B5 Jerome Powell.....A2,B11 C O'Keeffe, John...... B5 Continuedfromthepriorpage Johnston, Hugh...... A4 R given us adequate informa- Coffey, Susan...... B1 K tion.” Crain, Michael...... B2 Roth, Thomas...... B11 Kazmi, Mohammed...B11 Bosses now manage, on Crew, Tim...... B12 S average, nine direct reports, Kowert, Rachel...... B4 F Santos, Gabriela...... B11 up from five in 2008, accord- L Stirling, Trevor...... B5 ing to Gartner, which can Flint, Pete...... B10 Laguarta, Ramon...... A4 spread leaders so thin that Freda, Fabrizio...... B3 W M they don’t have a close grasp G Wilcox, David...... A2 of what their employees are Maduro, Nicolás...... B3 doing. Only about 35% of em- Gentile, Douglas...... B4 Wilkes, Geordie...... B11 Martin, Harold...... B1 ployees surveyed in the Gart- Y Glendinning, Stewart.B2 McNamara, Paul...... B1 ner poll last year say their Gundlach, Jeffrey.....B11 Musk, Elon...... A1 Yuan, Dave...... B10 manager understands their day-to-day work. “Managers are less likely to provide good feedback and

coaching when they don’t un- JUSTIN LUBIN/NBC/GETTY IMAGES derstand what that employee’s Rainn Wilson as Dwight Schrute and Steve Carell as his boss Michael Scott in ‘The Office.’ workflow is,” says Brian Kropp, human-resources-prac- would have ultimately been a fices, many people report they One man told Babson re- tice leader at Gartner. distraction.” feel burdened by all the shared searchers that when he started Some managers say they Roxanne Allen, a former di- projects—and the myriad saying “no” more, the reaction are trying to be better bosses. rector of communications with meetings, conference calls and shocked him. “People adapted Meghan Knoll, a general man- American Express who runs emails they require. around me immediately. To be ager at Bark, which operates a her own strategy business in People with deeply rooted honest, it made me wonder subscription service of Minneapolis, said in today’s identities as high-performing why I didn’t do this a year monthly dog treats and dog “do more” office environment, workers are especially suscep- ago,” he said. “It has made a toys, participates in a regular managers’ priorities are ever tible to collaborative overload, big impact on my happiness.” management-coaching group changing and their employees says Rob Cross, a professor of Can you really set with some of her peers. Re- are expected to remain open to leadership at Babson College. boundaries with your boss? Dr. cently, Ms. Knoll brought in a fast-changing roles and busi- But he sees glimmers of hope Cross says yes, but it can’t be long list of difficult topics she ness needs. “To be perceived in the cubiclescape. done in the heat of the mo- wanted to discuss with a direct as anything else is a career In 160 interviews with men ment. “You have to do it pro- report and asked for guidance. killer,” she said. and women across 20 organi- actively,” he said, adding that As the group asked her That is the root of a lot of zations—including software people who build a diverse pointed questions about the frustration. “Managers should firms, manufacturers and gov- network of colleagues across feedback she planned to give set clear goals, learn to clearly ernment contractors—many an organization tend to pos- her report, she began crossing communicate their priorities, workers told him that they had sess the confidence to draw items off the list. Some, for ex- and know the work their em- successfully said “enough,” the line, while siloed workers ample, were just style differ- ployees are performing so that putting up boundaries to re- frequently feel helpless to

IMAGO/ZUMA PRESS ences between her and the mindless ‘never minds’ are un- claim control of their days. stand up for themselves. Tyson aims to shift to higher-profit products like chicken nuggets. employee. necessary and overloading “They did so with great “When a person’s whole “There was really only one never happens,” Ms. Allen said. trepidation, only to discover identification gets built around The deal to combine two thing I needed to talk to the “Alignment starts at the top.” that the negative backlash one area, you get people who Tyson to major meat suppliers to res- person about,” Ms. Knoll says. As greater workplace col- they’d feared was nowhere to are less likely to believe that taurants will face regulatory “Coming in with a big list laboration has swept across of- be found,” he said. they can say no,” he said. reviews in the U.S., China and Buy a Top elsewhere. Mr. Hayes declined to say whether McDonald’s or Four Things sustainable pace.” other Keystone clients blessed 2) Not being OK with some Meat Firm the deal, but said Tyson’s cus- Bad Bosses Do ambiguity. Good managers are tomers have backed the com- willing to move ahead without Continuedfromthepriorpage pany’s overall strategy. having everything planned out that the deal would help re- McDonald’s declined to Robert Cross, a professor of in advance. duce volatility in Tyson’s comment. leadership at Babson College “The more people can focus What the heck is chicken business, and that Ty- Tyson plans to finance Key- who has been conducting work- on how-do-we-move-ahead- son could improve Keystone’s stone’s purchase from Marfrig place research for 20 years, and-respond-rapidly versus de- profit margin by cutting costs. Global Foods SA of Brazil with says there is a right way and a veloping a perfected plan up Zero-Gravity? Keystone also can provide Ty- cash and new debt. For the wrong way to manage people. front, the better.” son a platform to make a fresh year ended June 30, West Here are four things that he 3) Mistakenly believing that And what’s it push into markets such as the Chester, Pa.-based Keystone says bad bosses get wrong. everybody has to be in every Middle East, Africa and Eu- generated annual sales of $2.5 1) Expecting people to meeting. Good managers recog- doing in this chair? rope, he said. billion and earnings before in- know all the answers in the nize that overcollaboration is Tyson divested itself of terest, taxes, depreciation and moment. Good managers real and they do not seek ex- The feeling of being weightless is the key to reducing many of its non-U.S. assets in amortization of $211 million. should hire people who can find cessive consensus. pressureonyourback,legs,andjoints.Thisis recent years to focus on the Marfrig, which reached a the right answer quickly, not “Leaders can get over- exactlywhattheSvagoreclinerisengineeredtodo. U.S. deal in 2010 to acquire Key- browbeat them into overprep- whelmed with collaboration and It accomplishes this with a design that distributes Some analysts have warned stone, said earlier this year ping for meetings by trying to then they’re not sufficiently ac- your weight evenly across the entire chair so daily that another big deal could be that it would sell the company. anticipate every question they cessible to others.” risky for Tyson, depleting cap- Marfrig this year became the could ever be asked. 4) Creating a context of achesandpainsmeltaway.Reducediscomfort ital the company could spend world’s second-largest beef “When that attitude cas- fear. Good managers recognize starting today with Svago. buying back shares. Stewart processor—after JBS SA of cades down, it creates huge that intimidated employees Glendinning, Tyson’s chief fi- Brazil—with its purchase of a amounts of churn internally as don’t share emerging—often nancial officer, said the com- majority stake in National Beef people try to be ready, with ev- imperfect—ideas that could pany has recently succeeded Packing Co. erything at their fingertips, in- turn out to be really great at making big acquisitions and —Kimberly Chin stead of creating a measured, ones. still repurchasing shares. contributed to this article.

pared with 150 for CPAs. position to the change. to bring in more members. Mr. CPAs Fight The move will make valua- The critics also contend the Crain called it “an under- tion services more available to AICPA acted only through its handed way” to create addi- clients who need them, Ms. committees, without asking tional revenue. Association Coffey said. the broader membership Ms. Coffey denies that. But the change triggered a whether expanding ABV eligi- “That is not what this is backlash. bility was a good idea. about,” she said. Over Turf Thirty-two CPAs wrote the “Frankly, it was a secretive The critics want to see the AICPA an open letter in June, process, not disclosed,” said AICPA suspend the change and Continuedfromthepriorpage saying that if the change Michael Crain, who teaches ac- revisit the issue, this time giv- can become ABVs. They have stands, “the AICPA will have counting at Florida Atlantic ing members more input. to meet many of the same re- effectively diluted its original University. Ms. Coffey said the AICPA Svagorelief.com 844-MY-SVAGO quirements as CPAs to get the message to the public and Ms. Coffey said, “I think has already begun the process ABV credential—75 hours of lowered the standards for its communication with our mem- of providing the ABV creden- Free Shipping & valuation-related education, valuation certification.” bers is always something we tial to non-CPAs, but “I’m plus passing an exam—and The group said its own sur- can do more of and do better.” happy to talk with any of our 30 Day Risk-Free In-Home Trial they must have 1,500 hours of vey of the AICPA’s member- Some critics, including Mr. members about their ideas valuation experience, com- ship found overwhelming op- Crain, think the AICPA acted and thoughts.” . THE WALL STREET JOURNAL. Tuesday, August 21, 2018 | B3 BUSINESS NEWS

$14 a share Lannett’s Conoco Settles With Venezuela 12 Lament Both sides agree on Stock in the generic- 10 pharmaceuticals payment plan for maker plunged $2 billion arbitration Monday 8 award to U.S. oil firm

BY KIMBERLY CHIN $5.35 a share 6 AND KEJAL VYAS ▼60% ConocoPhillips will halt 4 further legal actions against the troubled state-run energy Aug. 20noon 2 p.m. 4 giant Petroleós de Venezuela Source: SIX SA over an unpaid $2 billion THE WALL STREET JOURNAL. arbitration award after both sides agreed on a payment plan. The Venezuelan company, Lannett known as PdVSA, agreed to make initial payments of about $500 million within 90 Shares Fall days following the closing of the settlement, and make quarterly payments over the 60% After next 4½ years in compensa- tion for two oil projects that Supplier Venezuela’s leftist government nationalized in 2007, Conoco- WIL RIERA/BLOOMBERG NEWS Phillips said Monday. The agreement with state-run Petroleós de Venezuela covers compensation for two oil projects that the government nationalized in 2007. But analysts who track Deal Dies Venezuela said they still oil assets on Dutch Caribbean one of several creditors to dian gold-mining company BY BOWDEYA TWEH questioned its capacity to islands. have won large judgments won a U.S. court ruling earlier Citgo Asks Judge make the payments. Roiled by The orders resulted in severe against Caracas. this month allowing it to seize Shares in Lannett Co. a punishing economic crisis, operational hurdles for PdVSA, The rulings have set off a Citgo, to satisfy its $1.4 billion To Delay Auction plunged 60% Monday after the South American country forcing its oil tankers to avoid scramble for the country’s re- arbitration award for a nation- the generic-pharmaceuticals has already defaulted on its refining and storage facili- maining foreign assets as its alized mining project. maker said a distribution pact some $6 billion in debt, and ties in the Caribbean, whose economy crumbles. President In addition to creditors’ Citgo Petroleum Corp. is with a supplier won’t be re- its lifeblood oil industry is deep-sea ports it relies on to Nicolás Maduro and his aides, claims and Washington’s sanc- asking a federal judge to wait newed next year and that it seeing production drop pre- load large Asia-bound ships— meanwhile, are facing tough- tions, PdVSA faces other legal out a higher court ruling be- would expand restructuring cipitously due to what critics especially those going to China, ening U.S. sanctions over al- and regulatory troubles in the fore auctioning off its assets efforts to reduce costs. say is underinvestment and which receives Venezuelan leged human-rights abuses U.S. to satisfy Venezuela’s credi- Philadelphia-based Lannett rampant corruption. crude as debt repayment. and graft that has left the Multiple PdVSA executives tors. said Jerome Stevens Phar- “This buys Venezuela time,” But by settling with Cono- country too broke to pay for have pleaded guilty or are The request is the first maceuticals, based in said Russ Dallen, managing coPhillips, Venezuela could re- imports of food, medicines charged in a continuing U.S. time Citgo has commented Bohemia, N.Y., won’t renew an partner at the investment gain access to those Caribbean and other basics. criminal investigation into on longstanding litigation agreement, slated to expire bank Caracas Capital Markets. facilities and clear up backlogs Last week, a Spokane, bribery allegations at the com- from unpaid creditors seeking March 23, to distribute “But, of course, they just may that had hit its oil rigs. “As a Wash.-based mining company pany. Separately, in late July, to seize the oil refiner in lieu butalbital, aspirin, caffeine default on it again.” result, we believe this settle- called Gold Reserve Inc. said it prosecutors filed charges in an of payment for debts owed with codeine phosphate cap- There was no immediate re- ment could potentially slow received an estimated $88.5 alleged billion-dollar scheme by its embattled parent, the sules USP, digoxin tablets USP sponse from PdVSA or the In- the decline rate of Venezuela’s million in government bonds to launder funds from PdVSA government of Venezuela. and levothyroxine sodium tab- formation Ministry in Caracas, oil production,” analysts at instead of cash as partial pay- using, among other things, The company is asking for lets USP. where government offices ClearView Energy Partners ment for the $1 billion it is real estate in Miami. time to weigh in on the “While we are disap- were closed Monday for a hol- said in a statement. owed. The move has perplexed Court documents in that scramble to seize Citgo, Vene- pointed, and intend to redou- iday. The International Energy Venezuela watchers because case say that former PdVSA zuela’s largest U.S.-based as- ble our continuing efforts to A tribunal representing the Agency reported that Venezue- U.S. sanctions last year barred officials were among the al- set. Venezuela’s many unpaid explore options for addressing Paris-based International lan oil output was at 1.2 mil- similar transactions using leged conspirators, and they creditors have grown con- our capital structure, we have Chamber of Commerce handed lion barrels a day in July, a bonds, whose value in debt joined money managers, bro- cerned that there could soon been preparing for this con- ConocoPhillips the $2 billion 22% decline from January. markets has plummeted. kerage firms, banks and real- be few assets owned by the tingency, knowing that this arbitration award in April. A ConocoPhillips, which also Others like Crystallex Inter- estate-investment firms in the cash-starved nation that could outcome was a possibility,” month later, a series of court has a separate arbitration case national Corp. are looking at U.S. and elsewhere to operate be seized in lieu of payment. Chief Executive Tim Crew said orders permitted the Houston pending against Venezuela at PdVSA’s U.S.-based refining “as a network of professional —Julie Wernau in prepared remarks. company to seize Venezuela’s a World Bank tribunal, is only unit, Citgo. The defunct Cana- money launderers.” Jerome Stevens Pharma- ceuticals was Lannett’s pri- mary supplier of finished goods. Purchases from JSP accounted for 36% of Lan- Estée Lauder Sales Take Off From Airports nett’s finished goods inven- tory in fiscal 2017. However, BY SHARON TERLEP Ton Stores Inc. in the U.S. the share had fallen from 52% “Some doors will close but in fiscal 2016 and 68% in fis- Sales at Estée Lauder Cos. not the whole business,” he cal 2015. jumped in the latest quarter said. due to growing demand for In results for the fiscal high-end skin-care products fourth quarter ended June 30, and increased business at the company said profit fell The company said travel outlets in airports, pro- 19% as net income fell to $186 it has been working viding a rare spot of robust million, or 49 cents a share, growth in the stagnating con- from $229 million, or 61 cents to add new products sumer-products industry. a share, a year earlier. to its offerings. The New York-based cos- Excluding certain items, metics company reported a Estée Lauder reported an ad- 12% sales increase on a con- justed profit of 61 cents a stant-currency basis. share, compared with 51 cents Shares in Lannett fell $8.15 Chief Executive Fabrizio a year ago. Sales rose 14% to to close at $5.35 as the com- Freda said he is confident the $3.3 billion. pany also said it expects a company will maintain sold For the current quarter, Es- fourth-quarter per-share loss growth despite looming trou- tée Lauder expects sales to of 30 cents to 32 cents on bles at department stores rise between 5% and 6% from $171 million in revenue. throughout Europe. Estée a year earlier, with adjusted On an adjusted basis, the Lauder has been hit by the earnings of $1.18 to $1.22 a company expects to earn a decline of U.S. department share.

profit of 62 cents to 64 cents stores, which have accounted ASTRID STAWIARZ/GETTY IMAGES FOR MAC COSMETICS Full-year earnings for 2019 a share. for the bulk of sales histori- The decline of U.S. department stores has hit a major source of sales for the skin-care company. are seen at $4.38 to $4.51 a Analysts polled by Thom- cally. share with adjusted earnings son Reuters expected an ad- “Even if there was the The company relies less on House of Fraser, a British 10% of Estée Lauder’s sales of $4.62 to $4.71 a share. justed per-share profit of 66 same worrying trend in department-store sales in department-store chain sold in the U.K., the company Sales are expected increase cents on revenue of $173.1 bricks-and-mortar [in Europe] both Eastern and Western Eu- to Sports Direct Interna- said. 4% to 5%. million. that we’re seeing in the U.S., rope than it does is in the tional PLC earlier this month Mr. Freda said he believes Shares of Estée Lauder Lannett plans to release its it would not have anywhere U.S., and there is more room after entering a U.K. equiva- the retailer will avoid an all- rose 3.4% to $140.56 Monday. full fourth-quarter report near the similar impact,” as in in the region to expand online lent of bankruptcy protec- out liquidation like the pro- —Kimberly Chin Aug. 28. the U.S., he said. sales, he said. tion, accounts for roughly cess under way now at Bon contributed to this article. The company said it has been working to add new products to its offerings and streamline its operations. Hertz Picks Ex-Nielsen Earlier this month, Lannett said it expected to record impairment charges in Official as Finance Chief connection with restructuring BY TATYANA SHUMSKY GE in 2004. some of its manufacturing op- Nielsen, in a regulatory erations. Car-rental giant Hertz filing, said Mr. Jackson ten- “We successfully launched Global Holdings Inc. named dered his resignation on eight new products in the Jamere Jackson, the former Aug. 15, and the company ex- first seven months of calendar finance chief of Nielsen pects to name a successor 2018, which we estimate will Holdings PLC, to lead its fi- soon. add net sales in excess of $50 nance team. Hertz didn’t respond to a Big5banks Synchrony Bank million in fiscal 2019, and in Mr. Jackson will join the request for comment. A Niel- addition to our launches, we company on Sept. 10 to suc- sen spokeswoman declined completed several transac- ceed Thomas Kennedy. Mr. to comment beyond the com- How do your savings rates stack up? tions to add more than 25 Kennedy had served as chief pany’s regulatory filing. Find out at synchronybank.com or call 1-800-753-6870. market-ready or near-market- financial officer of the Flor- Mr. Jackson’s exit comes ready product lines to our ida-based company since De- less than month after Niel- pipeline,” Mr. Crew said. cember 2013 and was previ- sen Chief Executive Mitch SPECIALRATE13-MONTHCD Separately, Amneal Phar- ously finance chief of Hilton Barns announced his inten- maceuticals Inc. said Monday Worldwide Holdings Inc. tion to retire at year-end $2,000 it reached a 10-year deal with Hertz’s chief accounting and as the company faces % minimum New York-based Jerome Ste- officer, Robin Kramer, will pressure from activist inves- opening vens Pharmaceuticals to act as interim CFO from tor Elliott Management 2.65 * deposit supply levothyroxine sodium Monday to Sept. 10, the com- Corp. to sell itself. APY tablets. pany said in a filing. “We are delighted to have SynchronyBankhasconsistentlyearnedtheBankrateSafe&Sound®5-StarRating!* In prepared remarks Am- Mr. Jackson was most re- Jamere join our team,” Hertz neal Chief Executive Rob cently CFO of Nielsen, a role Chief Executive Kathryn *Annual Percentage Yield (APY) is accurate as of 8/14/18 and subject to change at any time without notice. A minimum Stewart called levothyroxine, he held since March 2014. Marinello said in prepared of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early with more than 120 million Before that, he was CFO of remarks. “He is a strategic, withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you will earn the base rate of prescriptions a year, the most General Electric Co.’s Oil & results-oriented financial interest in effect at that time. Visit synchronybank.com for current rates, terms and account requirements. Offer applies to personal accounts only. prescribed drug in the U.S. Gas- Drilling & Surface and leader with a proven track AWARDS: Bankrate Safe & Sound 5-Star Rating earned for 2014 through 2018. Amneal shares rose 13% to had held several roles at the record of operational excel- © 2018 Synchrony Bank $24.27 Monday. conglomerate since joining lence.” . B4 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech Game Developers Are Making It Hard For Players to Stop Availability on multiple Time Is Money devices adds to allure, Revenue from videogames is approaching $100 billion annually as long hours; ‘gaming people spend more time playing than five years ago. disorder’ draws concern Videogame software revenue Average weekly ConsolePC Mobile hours spent gaming BY SARAH E. NEEDLEMAN

Videogames have gotten $100 billion 4 hours harder to turn off, mental- health experts and parents say, 75 3 raising concerns about the im- pact of seemingly endless gam- ing sessions on players’ lives. 50 2 Game developers for years have tweaked the dials not only on how games look and sound 25 1 but how they operate under the hood, and such changes 00 have made videogames more 2013’14 ’15’16 ’17 ’18 ’19 2012’13’14 ’15 ’16 ’17 ’18 pervasive and enthralling, in- FREDERIC J. BROWN/AGENCE FRANCE-PRESSE/GETTY IMAGES dustry observers say. Note: 2018-19 revenue data are projections Game-software revenue increased by 80% between 2013 and 2017 to $97.6 billion world-wide, and The World Health Organiza- Source: PwC (revenue); Nielsen (hours) THE WALL STREET JOURNAL. this year is projected to reach $108.4 billion, according to PricewaterhouseCoopers. tion in June added “gaming dis- order” to an updated version of people playing,” said Douglas long challenged criticism 2013 and 2017 to $97.6 billion 45 minutes a day on average, about their activity, given re- its International Classification A. Gentile, a research scientist about the harmful effects of world-wide, and this year is up from 30 minutes, according peated warnings over the years. of Diseases, warning about a focused on the impact of me- games. Its biggest trade projected to reach $108.4 bil- to its developer, Istanbul- “Once people realize they have a condition in which people give dia on children and adults. group—the Entertainment lion, according to Pricewater- based Peak Games Inc. “Peo- problem, they tend to underre- up interests and activities to “They’re designed to hit the Software Association—said houseCoopers. By comparison, ple like to help each other and port their usage,” she said. overly indulge in gaming de- pleasure centers of the brain the WHO’s proposal is based spending at the box office and socialize,” said Ömer İnönü, “Fortnite,” which has spite negative consequences. It in some of the same ways that on “highly contested and in- on home-movie entertainment director of strategy. amassed at least 125 million is expected to be formally clas- gambling can.” conclusive” research. reached a global record of The average amount of time players since its July 2017 de- sified in January 2022. The growing allure of Some mental-health profes- $88.4 billion in 2017, according each week people in the U.S. but, embodies many of the tac- Many games today are free, games has parents such as sionals say games can have a to the latest data available aged 13 and older spend play- tics game creators use to keep available on multiple devices, Tracy Macon worried. Her 14- positive impact on players. from the Motion Picture Asso- ing videogames rose to 7.8 people playing. It is available and double as social networks. year-old son Matthew plays They can help students im- ciation of America. hours in 2017, up 60% from on many devices—consoles, Where once games were the tactical shooter game prove in math and history, plus Among the biggest changes 2011, the first year the survey computers and smartphones— played and put away for a “Tom Clancy’s Rainbow Six nurture team-building skills fueling more interest in video- was conducted, according to and its popular last-person- while, now game companies Siege” around the clock, she and creativity, said Rachel games is that many, such as Nielsen. It doesn’t survey chil- standing mode is free. are routinely delivering new said. Taking away the com- Kowert, a research psychologist the megahit “Fortnite,” en- dren younger than 13 for re- Epic Games Inc. routinely content aimed at keeping play- puter he plays it on has focused on game technology. courage players to socialize, search in this area. changes the “Fortnite” land- ers constantly engaged. Some caused meltdowns. “The reputation games have is acting as social hot spots that The latest survey, taken in scape and story line to keep new content is available only “He has no motivation to do fueled by a moral panic, but are replacing malls and other January, showed a drop to 6.5 players engaged. Virtual goods for a limited time, a maneuver anything else,” said Mrs. Ma- their impact is more positive teen hangouts. hours a week. Nielsen didn’t are frequently added to the that tugs at people’s fears of con, 40, an office manager in than negative,” she said. After “Toon Blast” added give an explanation. Kit Yarrow, game’s store, nudging players to missing out, psychologists say. Minneapolis. “It’s hard for the Videogames are more popu- the ability to chat and com- a psychologist who specializes customize their characters and “Videogames are engi- whole family.” lar than ever. Game-software pete in tournaments with in consumer behavior, said peo- show them off to friends. Epic neered specifically to keep The videogame industry has revenue rose 80% between friends, people started playing ple likely are more reticent Games declined to comment. Online Luxury Retailer Farfetch Readies New Listing BY MATTHEW DALTON The IPO shows how digital by faltering department stores. Yuri Milner and Advance Pub- shoppers who came of age in baba, brushing aside past fears luxury retail has become big Farfetch’s financial data lications Inc., the Newhouse the digital era are now the in- about counterfeits sold on the PARIS—Online luxury re- business, driven by the imper- disclosed Monday underscore family holding company that dustry’s fastest-growing clien- Chinese retailer’s websites. tailer Farfetch filed plans for ative to cater to younger shop- how quickly the shift to online also owns Condé Nast. Chanel, tele, forcing brands to meet Farfetch operates as a middle- an initial public offering, look- pers. Brands are opening their is happening: Revenue in the the French brand that is one of their e-commerce demands. man, connecting online buyers ing to seize on investor opti- own e-commerce websites and first half was $268 million, up The biggest luxury brands, with 614 luxury boutiques mism about the surge in high- selling through multibrand 55% year over year. In 2015, such as Gucci and Louis Vuit- around the world and 375 end goods sold over the sites such as Farfetch, Net-à- revenue for the entire year José Neves’s ton, have built their own e- brands that sell directly though internet. Porter and China’s giant online was $152 million. brand has commerce websites. Yoox Net- Farfetch.com. Unlike YNAP, it Farfetch, based in London, retailers, Alibaba Group Hold- “Despite all this growth, already raised à-Porter is the biggest doesn’t manage inventory or plans to list its shares on the ing Ltd. and JD.Com.Inthe this industry is still in its in- hundreds of multibrand luxury site, with own warehouses. Its main New York Stock Exchange un- U.S., luxury brands hope e- fancy,” José Neves, Farfetch’s millions of annual revenue of more than source of revenue is fees from der the symbol FTCH. commerce can fill the gap left founder and chief executive, dollars from €2 billion ($2.3 billion). In sales made through its site. wrote in a letter with Mon- investors. February, Cie. Financière While the company is grow- ADVERTISEMENT day’s filing. “Only 9% of luxury Richemont SA, the Swiss lux- ing rapidly, it is still far from sales happen online, and the ury conglomerate that owns being profitable. Farfetch lost 91% that happen offline are the few remaining luxury la- Cartier, said it would take full $68 million in the first half The Marketplace still conducted as if we were bels to shun e-commerce, also control of YNAP, paying as from $29 million in the year- To advertise: 800-366-3975 or WSJ.com/classifieds in the 1990s!” owns a small stake in Farfetch. much as €2.69 billion for the earlier period, according to its Farfetch has already raised For years, luxury brands 50% of the company it didn’t SEC filing. hundreds of millions of dollars were reluctant to sell over the already own. FRANCHISE from myriad investors, includ- internet, fearing doing so would Luxury brands are even Heard on the Street: Hints of ing JD.Com, internet investor erode their cachet. But younger forging partnerships with Ali- value look farfetched...... B12

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THE WALL STREET JOURNAL. **** Tuesday, August 21, 2018 | B5 BUSINESS NEWS Brewers Tap Growing African Market In the world’s poorest con- tinent and fastest-growing beer market, global brewers are being forced to reinvent themselves.

By Julie Wernau in New York and Alexandra Wexler in Kampala, Uganda

Most Africans can’t afford the beers that brewers such as Anheuser-Busch InBev NV, Heineken NV and Guinness maker Diageo PLC sell in other markets. That, combined with commodity price swings and the risk of high taxes on premium beers that could threaten steady profits, has led brewers to embrace low- price, locally formulated con- coctions that would be unrec- ognizable to most Western consumers. In Uganda, off a red-dirt road in the Bugolobi suburb of the economic capital Kampala, customers crowd into a pub the size of a freight elevator and sip on warm mugs of beer

served out of a 50-liter keg. ANDREW RENNEISEN FOR THE WALL STREET JOURNAL Brewed from local sorghum, Men drink Senator beer poured from a keg at a bar in Kangema, Kenya. Brewed from local sorghum, the beer is produced by a local unit of Diageo. the beers, called Senator, are produced by a local unit of Dia- economies in Eastern Europe rises from 15% to 40%. geo, the world’s largest liquor and Asia, according to Bern- Governments illicit brews, which still make up the market that were less “[In Africa], there is an in- maker, and sell for about 1,700 stein. As drinkers in Europe 60% of the market in poor Afri- price-sensitive. Senator vol- grown beer culture, the popu- Ugandan shillings (45 cents), and the U.S. turn away from Try to Cash In can nations. umes doubled. lation is very young and in- or roughly half the price of lo- beer in favor of spirits and In 2014, sales volumes of “When you have no money come levels are rising,” said cal malt barley beers. nonalcoholic beverages, Af- Some governments in Af- Diageo PLC’s Senator dropped at all, you will drink the cheap- Babatunde Ojo, a portfolio “It’s the most popular beer rica’s importance to brewers is rica, seeing beer’s rising popu- 75% in Kenya after the brewer est form of alcohol you can manager at Harding Loevner for my business here,” said growing. larity, have been raising taxes, passed along a 46% tax in- find, beer fermenting in an old invested in African breweries. Florence Neeza, known in In a year-end update in forcing brewers to decide crease to consumers to com- oil barrel, industrial alcohol with “But the price point is very Bugolobi as “Mama Keg.” She July, Diageo Africa President whether to absorb higher pensate for the pullback of a a bit of color added in, alcohol important.” sells about 10 kegs of Senator John O’Keeffe told investors costs or pass them on to government tax break. distilled from bananas,” said In Bukele, another dusty a week. the company’s strategy in the consumers, many of whom The next year, the govern- Bernstein Research analyst suburb of Kampala, Chibuku Diageo, along with AB In- continent has been to tap con- can barely afford a brand- ment reversed its decision, Trevor Stirling. “Drinking a Shake Shake, made by a unit Bev, Heineken and closely held sumers who cannot afford to name brew. choosing instead to increase branded beer shows your of AB InBev from locally pro- Castel, which is 20%-owned by drink its core brands. “This al- That turns drinkers back to taxes on premium brands in friends you’ve made it.” duced sorghum, is a popular AB InBev, already generate lows us to rely less on the drink at 1,500 Ugandan shil- 98% of the region’s beer prof- pace at which the middle class lings a bottle. its, largely helped by acquisi- emerges given economic vola- quickly reversed by currency ports that led the country to aging materials. Dickens Tugume, a plumber tions of local brewers, accord- tility, and more on accessing shortages and fluctuations in devalue its currency. For Dia- Africa could account for sipping on a bottle of Chibuku, ing to Bernstein Research. the opportunity here and commodity prices tied to Afri- geo, sales increases in Ghana 40% of global volume and said he switched to the brand Beer consumption in Africa now,” Mr. O’Keeffe said. can economies. Such booms and were offset by declines in profit growth for the beer in- two years ago to cut down on today is by far the lowest in Still, the African market re- busts can hit company bottom Cameroon because of social dustry over the next decade, personal costs. the world, at roughly 10 liters mains unpredictable for multi- lines and consumers’ pockets. unrest, and Ethiopia because according to Deutsche Bank. “With Chibuku, I can afford of beer per capita, compared national companies hoping to In Angola, Bernstein esti- of political instability and cur- The lender cited affordability a few more bottles than be- with 70 liters in North Amer- build a long-lasting business, mates that beer sales volumes rency devaluation. In Zimba- as a key issue, because only fore,” said the 31-year-old fa- ica and Western Europe. How- analysts said. For some compa- fell more than 30% over the bwe, hyperinflation has led to 15% of consumers in Africa can ther of two, who drinks three ever, it is the fastest-expand- nies whose brews were hits past three years as the econ- a beer shortage because brew- currently afford a beer. By to four beers a day. ing market and more with the continent’s poorest omy took a significant blow ers were unable to obtain halving the price, the share of —Nicholas Bariyo profitable than other emerging drinkers, their fortunes were from weak prices for its oil ex- enough dollars to import pack- adults who can afford a beer contributed to this article. Capture the Rare Jewel of Africa Before It’s Gone

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® You must use the insider offer code to get Stauer our special sale price. 14101 Southcross Drive W., Ste 155, Dept. TRC143-01 1-800-333-2045 Burnsville, Minnesota 55337 Rating of A+ Your Insider Offer Code: TRC143-01 www.stauer.com Afford the Extraordinary. * Special price only for customers using the offer code versus Stauer… ® the price on Stauer.com without your offer code. . B10 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. BANKING & FINANCE Stock Markets Face Stiffer Competition Tesla becomes the a year, rather than four times. private markets. He tweeted that business lead- Dwindling “Basically, I’m trying to ac- latest high-profile ers told him it “would allow The number of publicly listed companies has declined in recent decades as fewer companies elect to go public. complish an outcome where company to ponder greater flexibility & save Tesla can operate at its best, money.” Number of U.S. common stocks Number of U.S.-listed initial public offerings free from as much distraction going private Such a practice, while po- 8,000 800 and short-term thinking as tentially helping companies to possible,” he wrote. BY BEN EISEN move away from short-term Rest of year Given this backdrop, it isn’t profit goals, would also limit Year to date† surprising that politicians The rise of private markets investors’ visibility into corpo- 6,000 600 want to reshape the financial where companies are free rate performance, a move that markets. When a company from the constraints of quar- echoes the more-limited trans- leaves the public markets, it terly reporting is already re- parency among private compa- 4,000 400 gets that much harder for the shaping the makeup of the nies. averageinvestortotakepart public stock market. It is a clear sign that for in that company’s growth. It has sparked a secular de- public-trading venues, private And it’s not just Mr. Trump. 2,000 200 cline in public listings. It has markets have grown to be Massachusetts Sen. Elizabeth led a prominent CEO to re- tougher competition. Ample Warren recently proposed that cently declare his intention to venture funding and low rates large companies be required to consider taking his company have left companies with myr- 0 0 consider the interests of all private. It could also result in iad options for raising capital 19952000 ’10 ’18* 1995 2000 ’10 ’18 stakeholders, including work- a loosening of rules around without going through an in- *AsofJune30†AsofAug.20 ers. what is required of public creasingly expensive initial- Sources: CRSP and Steve Kaplan, University of Chicago Booth School of Business (companies); Dealogic (IPOs) THE WALL STREET JOURNAL. The stock market is slowly companies. public-offering process and transforming itself. Everyday On Friday, President Trump adhering to stringent listing product has grown sharply The public markets could Though the outcome of that investors should hope these said he instructed the Securi- requirements. over the four-decade-plus pe- lose one of its higher-profile effort is uncertain, Mr. Musk changes don’t reduce the ties and Exchange Commission There are now fewer public riod, according to a report members if Tesla Inc. chief indicated in a memo last week transparency and access that to study whether companies U.S. companies than in 1976, from investment bank Credit Elon Musk gets his way and that his thinking is influenced public shareholders have his- should release earnings twice even though gross domestic Suisse last year. completes a take-private deal. by a grass-is-greener view of torically enjoyed. Brokerage Fined Over Short Selling

BY ALEXANDER OSIPOVICH remediate them,” Susan Schroeder, a Finra enforce- A unit of Interactive Bro- ment official, said in a press kers Group Inc., one of the release. largest U.S. retail brokerages, “In this case, the firm inter- was fined $5.5 million over al- nally identified the problems, legations that it broke federal yet did not revise its supervi- rules on the “naked” short sory systems for more than selling of stocks thousands of three years, creating the po- times over a three-year pe- tential for negative impact to riod. the markets and investor Wall Street’s self-regulator, harm,” Ms. Schroeder added. the Financial Industry Regula- Interactive Brokers “cooper- tory Authority, announced the ated with Finra during its in- fine on Monday. The com- quiry and took corrective ac- pany’s securities brokerage tion on the matters raised by unit, Interactive Brokers LLC, Finra in 2015," a spokeswoman neither admitted nor denied for the company said in an wrongdoing as part of the set- emailed statement. tlement. A Finra spokesman declined Short sellers profit when to elaborate on the case be- the value of a security falls. yond what was written in the In a short sale, a trader borrows stock from a third party and sells it in the hope Finra said the retail ISMAIL FERDOUS/BLOOMBERG NEWS of buying it back later for a A foreign-exchange employee handles Turkish lira bank notes in Istanbul. The dollar moved higher against the lira on Monday. lower price. brokerage firm Traders are typically al- correct, and there is no average other people find was almost bankrupted lowed to sell the stock before ignored repeated ‘red pullback. most attractive, with the trading currencies based on they borrow it, as long as they flags.’ Being a Robert Buckland, chief result that investment is economic fundamentals. do so within several days after global equity strategist at about “anticipating what In Turkey, Mr. McNamara the sale. Citigroup, produces an average opinion expects the has found it easier to stay In so-called naked short Contrarian annual assessment of the average opinion to be.” The focused on the fundamentals, selling, a trader doesn’t follow press release and a settlement most contrarian bet on contrarian cares little or because the lira has become through on the promise to letter that was also released stocks at the end of the nothing about the outlook so illiquid that he can’t make borrow. Regulators say the publicly. On Turkey year, and says mostly it for profits or the economy, short-term trades of a practice distorts markets, be- Naked short selling isn’t ContinuedfrompageB1 doesn’t work. only about spotting when significant size anyway. cause it can lead to abuses in necessarily against the rules, such an approach works in “Equities are trending Only a small proportion of which traders push the price and regulators say in some general, both because assets, so you get killed by investors can be contrarian, of a stock to abnormal lows. cases it can benefit the mar- judging when trades are momentum, but it works and it can work as a stand- Interactive Brokers ignored kets by making it easier for in- overly crowded is no science, betterinFX,”hesays.This Managers who knew alone strategy only at true repeated “red flags,” including vestors to buy and sell stocks. and because assessments has been another terrible little about Turkey extremes of bullish or multiple warnings from its Still, the practice has peri- tend to rely on hindsight. year for a simple annual bearish sentiment, not all own staff, that its systems and odically come under fire from Every investment bank contrarian approach to were pontificating the time. It may also lead to procedures were inadequate to investors, regulators and chief has a measure of investor stocks, with a loss of 15% so about its weakness. horrible losses when bubbles satisfy Securities and Ex- executives upset about short sentiment, but they work far: The companies bought just keep on inflating, or change Commission regula- sellers’ attacks on their com- best at extremes—and it is by the strategy are broadly trends continue much longer tions designed to stop such panies’ shares. only with hindsight that we flat, while those it sold are than expected, as the bet on abuses, Finra said. The SEC toughened its rules canbesureanextremehas up strongly. average opinion has become the FANGs—Facebook, As a result, the Greenwich, on the practice in 2009, after been hit. Sometimes Ultimately, any contrarian too extreme, and is likely to Amazon.com, Netflix and Conn., brokerage accepted and naked short sellers were ac- investors are more bullish approach is a view that snap back. Google parent Alphabet—did executed orders in violation of cused of preying on shaky than ever before, then when everyone agrees, they Keynes worried that such this year. But when luck and SEC rules on naked short sell- banks during the financial cri- become even more bullish, are likely to be wrong. a disconnect from the skill come together, the ing around 28,000 times from sis and exacerbating the de- and investors who bet Economist John Maynard fundamentals was bad for contrarian gets very large 2012 to 2015, according to clines of their shares. against the trend can get Keynes in 1936 compared the economy, and bemoaned gains very quickly as Finra. Some investment-bank ex- crushed before the eventual investing to a beauty the obsession with liquidity, sentiment snaps back. “Firms that are aware of ecutives who counted short pullback. Occasionally, the contest, where contestants the ease of trading—perhaps In my case, I’m hoping for deficiencies in their supervi- sellers as clients were among crowd is even proved have to pick the face that on not surprisingly given he a nice lunch. sory systems must promptly those who complained. Merrill Settles Charges Investors Move to Activity-Booking Sites

BY KATIE ROOF to come online in a big way.” It Mishandled Accounts Airbnb, he said, could po- BY LISA BEILFUSS vote and resulting in an even- Investor activity is picking tentially be beneficial to adja- tual decision to offer the third up for activity-booking sites in cent businesses because peo- Merrill Lynch will pay $8.9 party’s products to new Merrill an increasingly crowded ple are staying at places million to settle charges it accounts. market. without on-site concierges, failed to disclose a conflict of “By failing to disclose its A series of funding rounds driving them online to search interest, the Securities and Ex- own business interests in de- for tour-booking startups like for local activities. change Commission said Mon- ciding whether certain prod- Klook Travel Technology Inc. “The market is increasingly day. ucts should remain available to highlights investors’ continu- fragmented away from hotels The SEC said that Merrill, investment advisory clients, ing hunt to build on the suc- due to Airbnb and alternative the brokerage arm of Bank of Merrill Lynch deprived its cli- cesses of big incumbents accommodation driving con- America Corp., mishandled ents of unbiased financial ad- like Booking Holdings Inc. sumers to help themselves,” 1,500 investor accounts vice,” said Marc Berger, direc- and Expedia. Mr. Flint said. through its relationship with a tor of the SEC’s New York Hong Kong-based Klook Yet sites like Airbnb and third-party product provider. regional office. raised $200 million in venture Expedia also make it easier to Investors had about $575 mil- Merrill Lynch settled the funding in early August for its book experiences from the

lion in the products, managed claims without admitting or activity-booking business. BILLY H.C. KWOK/BLOOMBERGget-go. NEWS Some travelers may by a subsidiary of an unnamed denying the SEC’s findings. That follows recent funding A Hong Kong walking tour hosted by Klook Travel Technology prefer to book activities while foreign multinational bank, the “We promptly enhanced our rounds for Peek Travel, Get- they are booking flights and SEC said. policies and procedures to en- YourGuide, TourRadar and ternet for ideas, curated sug- Trulia co-founder Pete accommodations. According to the SEC, Mer- sure the confidentiality of rec- other startups in adjacent gestions can be found and Flint, a member of Peek’s And a saturated market- rill Lynch halted new invest- ommendations in the future,” a market segments. paid for directly via mobile board, said he has been bullish place could drive margins ments into certain products Merrill Lynch spokesman said. Investors last year bet $1.6 apps. on the bookings industry since down, with startups lowering because of pending manage- The SEC is crafting a rule billion on 66 deals for ven- “Most people book airfare he was on the founding team commissions to compete for ment changes at the third- meant to put tighter restraints ture-backed travel-related and hotels online and we re- of event-ticket site last- the consumer’s wallet. party bank, and Merrill’s gov- on broker conflicts that can in- startups, excluding transporta- ally don’t think it should be minute.com in the dot-com The nature of the business ernance committee planned to fluence investment advice. In tion, according to PitchBook that different with tours and boom. also means that sales are vote on a recommendation to April, SEC commissioners Data Inc. activities,” said Dave Yuan, a “Consumers today demand harder to predict. Repeat cus- terminate the products and of- voted4to1infavorofapro- The businesses generally general partner at TCV, which online, mobile, real-time avail- tomers are likely to only use fer clients alternatives. The posed rule that would require help travelers and local adven- invested in Klook and TourRa- ability and booking,” Mr. Flint the platforms from time to SEC alleges that the third brokers to act in clients’ best turers find and schedule dar. said. “Online travel is an enor- time for the occasional vaca- party appealed to senior Mer- interest; the regulator is sift- events ranging from boat rides The firm also invested in mous global market and the tion or local excursion. rill Lynch executives, stymying ing through comment letters to cooking tours. Airbnb Inc., which offers a in-destination spend is the Added TCV’s Mr. Yuan: “It’s the governance committee’s that may shape a final rule. Instead of searching the in- travel service in the category. biggest segment that has yet not recurring revenue.” .

THE WALL STREET JOURNAL. **** Tuesday, August 21, 2018 | B11 MARKETS

Falling The 10-year Treasury yield declined Monday as its price rose. Deal Activity Boosts U.S. Stocks 2.86% BY AMRITH RAMKUMAR AND RIVA GOLD Perking Up Growth-sensitive materials and industrial companies The Dow Jones Industrial were among the market’s leaders Monday. 2.84 Average rose to its highest level since early February on 6% Monday, lifted by investor op- American Airlines Group timism about deal activity and trade developments. 2.82 A busy year for mergers and acquisitions 4 MONDAY’S continued as MARKETS PepsiCo agreed 2.80 to buy home- CF Industries carbonation Holdings 9 a.m. noon company SodaStream Inter- 2 Source: Tullett Prebon Information national for $3.2 billion, the Ford Motor THE WALL STREET JOURNAL. latest move by the company to diversify away from sugary so- das and salty snacks. Meanwhile, Tyson Foods 0

Yields Slip JOHN SCIULLI/GETTY IMAGES FOR SODASTREAM USA said it would buy Keystone 9:30 10 11 noon 1 2 3 4 Foods, a supplier of chicken Source: SIX THE WALL STREET JOURNAL. PepsiCo has agreed to buy seltzer-machine maker SodaStream. nuggets to McDonald’s and As Fears other companies, for $2.2 bil- 0.6% below its January record. Many analysts expect Hole symposium, could show Bancaire Privée, saying the lion as part of its strategy to The tech-heavy Nasdaq Com- strong economic data and how central bankers view the country’s central bank will bolster its protein offerings. posite edged up 4.68 points, or earnings to continue buoying latest developments, analysts have to raise interest rates Of Squeeze Despite worries about less than 0.1%, to 7821.01. The large indexes. Others have said. significantly to reassure inves- weakness in emerging markets trio of indexes has climbed in been encouraged by the latest Investors were also watch- tors. and the trade fight between three straight sessions. trade headlines late last week. ing the Turkish lira Monday, On Monday, the WSJ Dollar Emerge the U.S. and China, stocks have Stocks tied to commodities Negotiators from the U.S. and as the currency’s sharp de- Index, which tracks the dollar BY DANIEL KRUGER shown resilience this summer and global growth lifted large China have been working on clines this summer have fueled against a basket of 16 other and M&A activity has surged. indexes, with the materials, talks to try to end their trade anxiety about the declines currencies, dropped 0.3%. The U.S. government bonds rose “The signal that we can energy and industrials sectors standoff ahead of planned spreading to other emerging yield on the benchmark 10- Monday as investors remain take away from that is that ranking as the S&P 500’s best meetings between President markets. It edged lower year U.S. Treasury note de- concerned about geopolitical sentiment has not been hit performers. Investors are now Trump and Chinese leader Xi against the dollar Monday. clined to 2.823%—its lowest turmoil over trade and esca- sufficiently by the trade un- waiting to see if the S&P 500 Jinping at multilateral sum- S&P Global Ratings and close since May—from 2.873% lating tensions with Turkey. certainty that it puts business can set a new high after the mits in November, The Wall Moody’s Investors Service on Friday. Yields fall as bond The yield on decisions in question,” said index came within 0.5% of that Street Journal reported. Friday downgraded Turkey prices rise. CREDIT the benchmark Gabriela Santos, global market level earlier this month. Worries about a growth- one notch further below in- Gains in commodity-linked MARKETS 10-year Treasury strategist at J.P. Morgan Asset Among individual stocks, hindering trade conflict have vestment grade, citing recent firms pushed the Stoxx Europe note fell to its Management. American Airlines Group hurt stocks around the world extreme economic and finan- 600 up 0.6% after the index lowest since The Dow industrials climbed $2.20, or 5.8%, to and other risk assets such as cial volatility. posted its biggest weekly de- May 29, to 2.823% from climbed 89.37 points, or 0.3%, $39.99, its largest one-day ad- commodities in recent months. “When it comes to Turkey cline since June. 2.873% Friday. Yields fall as to 25758.69—their highest vance since October. Retailers Minutes from the Federal Re- specifically, I wouldn’t say Early Tuesday, Japan’s Nik- bond prices rise. close since Feb. 1. The S&P also climbed ahead of Kohl’s serve’s August meeting, due they’re out of the woods just kei 225 was down 0.3%, while U.S. officials rejected an ef- 500 added 6.92 points, or earnings Tuesday, with Macy’s thisweek,aswellastheKan- yet,” said Mohammed Kazmi, a the Shanghai Composite was fort by Turkey to tie the re- 0.2%, to 2857.05, bringing it rising 2.18, or 6.1%, to 38.21. sas City Fed’s annual Jackson portfolio manager at Union up 0.4%. lease of a U.S. pastor with re- lief for a major Turkish bank facing billions of dollars in U.S. fines, telling Ankara other Central Bank issues are off the table until the minister is freed, a senior White House official said. Parley Looms With no new U.S. economic indicators, many analysts also Over Dollar turned toward data on inves- tor positioning. BY IRA IOSEBASHVILI Speculative investors have placed a record number of The dollar edged lower bets that 10-year Treasury fu- Monday, as investors awaited ture prices will decline, ac- the Jackson Hole, Wyo., sym- cording to a Commodity Fu- posium later this week to get a tures Trading Commission better read on how central report. Concerns about the bankers view bets grew after Jeffrey Gund- CURRENCIES the global lach of DoubleLine Funds said economy. Monday on Twitter that there The WSJ is the potential for a Dollar Index, which measures “squeeze,” which could drive the U.S. currency against a bond prices higher. basket of 16 others, dropped In a short squeeze, the 0.3% to 89.56. price of a security rises, forc- The Federal Reserve Bank of ing investors who have short Kansas City will hold its annual positions that benefit from the economic-policy symposium in

drop in that asset’s price to REUTERS Jackson Hole beginning Thurs- buy more to close out their A copper plant in China. The country is a major consumer of industrial metals and exerts a significant influence on the market. day. Investors will be parsing bets on declining prices. As comments from Federal Re- more investors do this, it cre- serve Chairman Jerome Powell ates additional demand for the for clues on how the central security, driving its price up Metals Get Lift From Letup in Tensions bankviewsarangeofissues, further.“Youhavetobecon- from the U.S. economy’s recent cerned about what’s going on BY DAVID HODARI sions between Washington and yuan has stopped depreciating rate increases in 2018 may performance to the turmoil in overseas,” said Thomas Roth, AND BENJAMIN PARKIN Ankara raised fears about and has been on the up again sustain the rise in the dollar emerging markets. managing director in the rates emerging-market contagion at for the last three days appears through the second half, Mr. Later in Monday’s session, trading group at MUFG Securi- Metal prices started the the same time that weak data to be playing a role” in base Wilkes said. the U.S. currency extended its ties Americas Inc. With the week higher, as concerns pointed to risks to the growth metals’ recovery, Commerz- Data from CME Group put losses after Reuters reported potential for trade and politi- about economic troubles in of the Chinese economy. bank analysts said in a note. the chances of a rate increase that President Trump criti- cal tensions to flare amid thin China and Turkey and their Those developments pushed But investors expecting at the Fed’s next meeting on cized Mr. Powell for raising in- trading, where markets can follow-on effect on other the dollar higher against copper to sustain its early- Sept. 26 at 96%. terest rates. move quickly on little news, emerging markets appeared to emerging-market currencies, week surge are likely to be Aside from the macroeco- Higher rates tend to boost “the market is vulnerable to ease. making dollar-denominated disappointed in coming weeks, nomic outlook, bullish fore- the dollar by making the cur- some sort of squeeze,” he said. Front-month copper con- commodities more expensive analysts say. casts for copper prices based rency more appealing to yield- tracts for August delivery rose for other currency holders. “Last week’s news of fresh on supply considerations were seeking investors. But after Beijing and Washing- trade talks helped things, but dealt a blow at the end of last It isn’t the first time Mr. AUCTION RESULTS 1.5% to $2.6635 a pound at the Comex division of the New ton raised the possibility of we were optimistic last time week, when workers at BHP Trump has griped about mone- Here are the results of Monday's Treasury auctions. All bids are awarded at a single price at the market- York Mercantile Exchange, the low-level trade talks, those and we know what happened Billiton Ltd.’s Chilean Escon- tary policy. Mr. Trump last clearing yield. Rates are determined by the difference between that price and the face value. third consecutive day of gains foreign-exchange moves since. Investors’ skin has been dida operation, the world’s month expressed frustration 13-WEEK AND 26-WEEK BILLS after tumbling early last week. started to reverse Friday. hardened to comments from biggest copper mine, accepted that rising interest rates had 13-Week 26-Week The more-active September Theyuanwasup0.3% Donald Trump,” said Geordie management’s most recent buoyed the dollar and said he Applications $151,081,638,700 $139,731,293,500 contract also rose 1.5%. against the dollar Monday, Wilkes, analyst at Sucden Fi- wage offer. The market had hoped the Fed would stop Accepted bids $51,000,242,700 $45,000,196,500 " noncomp $874,363,700 $798,288,500 The gold price for August with the WSJ Dollar Index, nancial Research. expected a repeat of last tightening. A stronger dollar " foreign noncomp $300,000,000 $326,000,000 climbed 0.9% to $1,186.80 a which measures the U.S. cur- While last week’s moves year’s 44-day strike. makes U.S. exports less com- Auction price (rate) 99.479944 98.895361 (2.035%) (2.185%) troy ounce but was still down rency against a basket of 16 highlighted the market’s po- In a week lacking signifi- petitive abroad. Coupon equivalent 2.074% 2.240% from a week ago, with the Oc- others,down0.3%inlateaf- tential for volatility, lower cant Chinese economic-data In late New York trading, Bids at clearing yield accepted 96.86% 62.66% Cusip number 912796QK8 912796QY8 tober contract also higher. ternoon trading in New York. seasonal trading volumes also releases, investors kept an eye the euro was up 0.4% at Both issues are dated Aug. 23, 2018. The 13-week bills Both metals last week hit China is a major consumer of played a role, and the growing out for any further trade-talk $1.1484 and the dollar lost mature on Nov. 23, 2018; the 26-week bills mature on lows not seen in more than 12 industrial metals. market expectation for two news, as well as speeches from 0.4% against the Japanese yen Feb. 21, 2019. months, when spiraling ten- “The fact that the Chinese more Federal Reserve interest- Fed board members. to ¥110.07. Oil Prices Rise on Hopes for U.S.-China Tariff Deal BY SARAH MCFARLANE each of the past seven weeks tively small increase in oil in- increase of 1.6 million barrels, could lead to the freeing up of mation Administration. AND DAN MOLINSKI and are now about $8 below a ventories at the U.S. commer- so some investors viewed this some PdVSA assets, including Last week, the EIA reported multiyear high of $74 a barrel cial hub in Cushing, Okla. The new Genscape data as sup- oil supplies. a large increase in crude-oil U.S. oil prices rose Monday reached in late June. Partly biweekly Genscape report porting prices. Some analysts said this stockpiles that was unex- as investors looked ahead to a fueling those declines have showed crude-oil storage rose Investors also kept an eye deal could weigh on oil prices pected since the high-demand meeting this week between been fears a U.S.-China dis- to 26.7 million barrels as of on oil-rich Venezuela after the as it may mean more oil sup- summer driving season isn’t U.S. and Chinese officials that pute over tariffs could esca- government Friday announced ply coming to market. But Phil quite over yet. may start to resolve a trade late into a full-blown trade a widely criticized economic Flynn at Price Futures in Chi- Some analysts anticipate a fight that war that would eat into global plan that includes a huge de- cago said he doesn’t antici- larger-than-normal decline COMMODITIES sparked oil-consumption rates. ConocoPhillips valuation of its currency. pate much overall impact on this week, which if confirmed fears of But after months without settled a long dispute Many of the measures began global oil prices. could push prices higher. weaker bilateral talks on the issue, to be implemented Monday. “While the deal does allow “Look at this market weak- global economic growth and hopes are running high the with Venezuela’s At the same time, U.S. oil Venezuela some more flexibil- ness to put on bullish strate- less demand for oil. talks will lay the groundwork state oil company. producer ConocoPhillips said ity and lowers the chances gies, as oil prices are more Light, sweet crude for Sep- for a trade agreement. Monday it has settled a long- that their assets will be con- than likely near the low point tember delivery ended 0.8% “If there is some deal, then running legal dispute with fiscated, they still lack enough for the rest of the year,” Mr. higher at $66.43 a barrel on it is a risk-on environment Venezuela’s state oil company, cash available to allow too Flynn said. the New York Mercantile Ex- and oil will benefit,” said Gio- Friday, up 519,000 from the PdVSA, saying it will recover much of a change from the Among refined products, change. Brent crude, the vanni Staunovo, a commodi- previous Friday, according to $2 billion. status quo,” Mr. Flynn said. gasoline futures for Septem- global benchmark, rose 0.5% ties analyst at UBS Wealth a person who saw the report. As part of the deal, Hous- A driver for oil prices later ber delivery climbed 1.7% to to $72.21 a barrel. Management. This compares with the previ- ton-based ConocoPhillips said this week could be Wednes- $2.0151 a gallon. Diesel fu- U.S. oil prices have ended Oil prices also got a boost ous week’s official govern- it would suspend further legal day’s report on U.S. oil inven- tures rose 0.7%, to $2.1138 a lower on a weekly basis in from a report showing a rela- ment data that showed a large actions against PdVSA, which tories from the Energy Infor- gallon.

wsj_20180821_b011_p2jw233000_4_b01100_1______xa2018.crop.pdf 1 21-Aug-18 06:11:06 . B12 | Tuesday, August 21, 2018 THE WALL STREET JOURNAL. MARKETS Stronger Dollar Weighs on Emerging Markets Countries with large U.S. currency debts and big foreign capital flows at risk as greenback climbs

The U.S. dollar’s continued Cumulative nonresident capital flows between 2016 and Foreign-currency-denominated emerging rise is injecting further risk 2017 as a share of GDP, broken down by investment type markets debt as a percentage of GDP into emerging markets, particularly those which have been borrowing heavily in the Foreign direct investment Portfolio Other Turkey 70% American currency and Hungary 64 benefiting from foreign Argentina investment. Argentina 54 The WSJ Dollar Index is up Poland 52 8.3% from its mid-February South Africa low. Among emerging Chile 50 markets, Turkey, Hungary, S. Korea 41 Argentina, Poland, and Chile Mexico all have large amounts of debt Israel 39 denominated in dollars and Malaysia 35 euros. That becomes more India difficult to pay off when the Czech Rep 33 local currency falls, Colombia 32 particularly if revenues in the Turkey S. Africa country are denominated in 31 local currencies. Mexico 29 Countries with large Brazil chunks of equities and bonds Brazil 27 held by foreign investors also Russia 25 become increasingly Indonesia 24 vulnerable as markets turn Indonesia more rocky, analysts at the Saudi Arabia 21 Institute of International Thailand 20 Finance said. South Korea Investors pulled $1.4 billion India 15 from emerging markets last –2 0 2 4681012 14 16% China 14 week, amid worries that Turkey’s currency crisis could spread, IIF data showed. A rising dollar also Brent-crude performance this year, priced in select currencies Select emerging Mexico 3.6% pressures prices for markets' currency commodities, which are 80% performance against –0.9 Colombia denominated in the U.S. the dollar, year to date currency and become less –1.1 Thailand affordable to foreign buyers when the dollar appreciates. 60 Turkish lira That’s bad news for –2.3 Singapore commodity exporters like Brazil, Chile and Russia. 40 –3.4 Taiwan Meanwhile, commodity importers whose currencies –7.9 Chile have been battered, like South African 20 rand Turkey, India and China, now Russia have to pay up for oil and Indian rupee –13.8 other raw materials. Polish złoty 0 Chinese yuan –14.9 S. Africa U.S. dollar –37.6 Turkey –20 Sources: Institute of International Finance –37.7 Argentina (capital flows); Deutsche Bank via Institute J FMAMJ J A of International Finance (debt); FactSet (change in Brent crude); Tullett Prebon (currency performance) Reporting by Benjamin Eisen and Ira Iosebashvili, Graphics by Thad Chambers/THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Pepsi Is Right to Buy SodaStream A Rare Growth Story PepsiCo’s acquisition of nority stake in Keurig Green SodaStream International Effervescent Mountain. The following In Health-Care Sector Ab- will help it further diversify SodaStream revenue growth from year earlier year Keurig introduced the Here’s to the health of able. In devices, Abbott re- away from sugary beverages, “Kold” soda machine to bott Laboratories. cently launched the Free- but it won’t do much beyond 30% make Coca-Cola and other The reason to buy shares Style Libre glucose monitor, that. carbonated soft drinks at in the maker of Ensure nutri- which eliminates the need Pepsi said Monday it home. But consumers balked tion products is fairly sim- for diabetic patients to prick would pay $3.2 billion for at the high price of the ma- ple: The company is growing their fingers. Second-quarter the Israeli producer of coun- 20 chine and of the flavor pods its top line faster than just sales approached $500 mil- tertop soda machines, repre- needed to make drinks. about any health-care com- lion world-wide. That tally senting a 32% premium to Keurig discontinued the pany of comparable size. will likely grow substantially; the company’s share price product in 2016. And since it doesn’t sell Abbott recently called the 10 over the past 30 days. At 33 times forward earn- pharmaceuticals in the U.S., product’s uptake “unparal- The transaction expands ings, according to Ms. Her- Abbott is relatively well in- leled.” Pepsi’s exposure to the soda- zog, SodaStream isn’t cheap. sulated from U.S. regulatory Other segments also have water segment, which is 0 But SodaStream has the risk. promise. The generic-drug growing rapidly as consum- fast growth that Pepsi Abbott’s four main operat- industry has struggled in the ers turn away from sugar. 2016 ’17 ’18 craves, with projected sales ing segments—nutrition, U.S., but the picture overseas SodaStream has a strong Source: S&P Global Market Intelligence THE WALL STREET JOURNAL. growth of 24% in 2018, com- medical devices, prescription is much different. In key market position and moats pared with just 2% at Pepsi, drugs in emerging markets emerging markets like India against competitors thanks capabilities, global reach, SodaStream would be “cata- according to FactSet. Soda- and medical diagnostics—all or Russia, demand for safe, to its installed base of ma- R&D, design and marketing lyzing our ability to offer Stream also boasted a net are expanding at faster rates reliable medication is on the chines and distribution net- expertise” to SodaStream. personalized in-home bever- profit margin of 13.7% in than the typical large-cap rise. work for gas canisters. This But SodaStream is already age solutions around the 2017, above Pepsi’s 11.8%. stock. On an adjusted basis, As with any stock, there makes it an attractive asset quite international. In the world,” suggesting the com- The imperative to grow its sales grew by 8% in the sec- are risks. Trade tensions for Pepsi. three months through June, pany could be eyeing a more exposure to rapidly growing, ond quarter from a year ago. could potentially harm a The potential for broader 63% of its sales came from ambitious in-home strategy. healthier beverages is so Adjusted earnings per share company with as much synergies between the two Western Europe, 22% from This has been tried be- strong that it makes sense grew by 17% over the same global reach as Abbott, but companies, however, appears the Americas, and 10% from fore, as Wells Fargo analyst for Pepsi to pay up for Soda- period. tariff saber rattling hasn’t limited. In its statement Asia Pacific. Bonnie Herzog pointed out Stream, even if other strate- That isn’t bad for a com- centered on medical prod- Monday, Pepsi said it would Incoming Pepsi Chief Ex- in a note on Monday. In gic benefits fail to material- pany with a market value ucts. Abbott’s diverse manu- bring its “strong distribution ecutive Ramon Laguarta said 2014, Coca-Cola took a mi- ize. —Aaron Back north of $100 billion. facturing base also would Maintaining that pace protect the company. over the long term will be a The shares aren’t a bar- challenge, but Wall Street gain by traditional metrics: expects sales growth in the Abbott fetches more than 20 Farfetch’s Estimated Value Is a Stretch next several years will be al- times forward earnings, most as strong. FactSet ana- thanks in part to a 45% rally The latest tech company to mont’s offer in January place—was up 60% year over lyst consensus suggests an- over the past two years. But seek a U.S. listing specializes Handbag Fight valued the company at about year in the first half. A stra- nual growth of about 6%. that price tag will be worth in selling expensive watches Revenues* of online luxury players $5.8 billion. tegic alliance with Chinese A closer look at Abbott’s paying if growth material- and handbags online. This Matchesfashion.com,a online retailer JD.com, which business lines suggests those izes as expected. isn’t a unique proposition, 2016 2017 smaller, faster-growing Brit- invested $397 million in Far- long-term goals are reach- —Charley Grant which makes Farfetch more Yoox $2.1 billion ish website, attracted a simi- fetch last year, probably straightforward to value but Net-à-Porter 2.4 lar multiple of sales when it helped. also less attractive than the 0.6 was bought by Apax Part- One key question is why Farfetch OVERHEARD likes of Spotify, this year’s 0.9 ners in September 2017. The Farfetch is still losing money. highest-profile offering. 0.3 private sale value was Both Yoox and Matchesfash- Matchesfashion The luxury e-commerce 0.4 roughly $1 billion, according ion are profitable, and mar- Executives, take note: Clever they would still “significantly group filed a preliminary to the Financial Times. ketplace business models wording might work for less- contribute to our financial Note: Based on current dollar exchange rates prospectus with the Securi- *Gross merchandise value for Farfetch Farfetch is a marketplace that dominate their niche, than-good news, but won’t performance” in the coming ties and Exchange Commis- Sources: the companies that matches buyers with like travel group Booking keep investors from noticing months. sion on Monday. The docu- THE WALL STREET JOURNAL. sellers like Etsy or eBay, not Holdings or U.K. real-estate really bad news. But one of the drugs is the ment gave no indication of a retailer that buys and sells portal Rightmove, tend to be Generic-drug company thyroid medication Levo- valuation, but reports in the times sales. On the same goods like Yoox or Matches- highly lucrative. Farfetch Lannett announced its contract thyroxine, which is among the trade press have hinted at multiple, Farfetch would be fashion.com. This has al- may not be as dominant in to distribute drugs made by most prescribed medicines in figures up to $5 billion. worth around $3.5 billion. lowedFarfetchtogrow the luxury industry as its Jerome Stevens Pharma- the U.S.; the thyroid category This figure looks, well, far- The oldest and largest on- faster without the risk asso- prospectus (“we operate the ceuticals won’t be renewed accounted for about 40% of fetched. Farfetch’s key com- line luxury retailer, Yoox ciated with inventories: only truly global luxury digi- when it expires in March. Lannett’s revenue. petitors have been sold in Net-à-Porter, was taken pri- Gross merchandise value—a tal marketplace at scale”) Lannett listed several drugs Investors noticed: Lannett the past year at valuations vate this year by Cie. Finan- measure of the amount cus- would have investors believe. and CEO Tim Crew said that shares fell 60% Monday. roughly equivalent to 2½ cière Richemont. Riche- tomers buy on a market- —Stephen Wilmot