Trump Turns up the Heat on Turkey As Lira Plunges

The Portugal Less Traveled OFF DUTY Between Russia and J The West WS REVIEW THE WALL STREET JOURNAL WEEKEND

******** SATURDAY/SUNDAY, AUGUST 11 - 12, 2018 ~ VOL. CCLXXII NO. 35 WSJ.com HHHH $5.00 What’s Trump Turns Up the Heat Stronger News Inflation On Turkey as Lira Plunges Eats Into World-Wide

BY DAVID GAUTHIER-VILLARS How many Turkish lira$1buys Paychecks he Turkish lira fell to its AND JON SINDREU Scale inverted to show the weakening lira Tlowest level ever on BY JOSH MITCHELL worries about the country’s The Turkish lira fell sharply economic stability, sending to its lowest level ever on A humming U.S. economy is tremors through Europe worries about Ankara’s eco- pushing inflation up to levels and emerging markets amid nomic stability, sending trem- Dec. 29, 2017 4 lira that the central bank consid- renewed jousting between ors through Europe and 3.79 lira ers healthy. But there’s a Erdogan and Trump. A1, A6 emerging markets amid re- downside: Americans’ pay- newed jousting between the checks are barely keeping up. Trump threatened tar- country’s leader and President Consumer prices rose 2.9% iffs on Canadian-made cars Aprilpril 18, 20182018:: TurTurkey’skey’s PresidentPresident Recep TayyiTayyipp June2 24:4: Trump. over the past year, a rate last if U.S. officials can’t strike Erdoganrdogan calls for election more than a year early TurTurkishkish The lira dropped as much exceeded in late 2011, the La- a deal with the country on eelectionlection as 17% against the dollar, ex- bor Department said Friday. overhauling Nafta. A8 tending a tumble that ranks as Core prices—those outside of Mueller is bringing height- one of the steepest in world Share-price and index performance since Wednesday volatile food and energy-re- ened scrutiny to Roger Stone, markets this year. 0% lated expenses—climbed 2.4%, a longtime Trump adviser who President Recep Tayyip Er- the biggest annual gain since claimed he had interactions dogan defended his unortho- Stoxx Europe 600 September 2008. with WikiLeaks’ Assange. A4 dox policies in two speeches Stoxx Europe 600 BanksBanks The rising cost of things Friday, vowing to prevail in 5 like rent, gasoline and health The U.S. has told China’s –44 BNP ParibasParibas what he called an “economic care is another sign the econ- HNA it has to sell its stake in war.” Mr. Trump said he would –66 omy is kicking into a higher a Manhattan skyscraper that BBVABBVA double steel and aluminum gear after years of slower houses a police precinct pro- Unicredit tariffs on Turkey, a move that –88 growth. tecting Trump Tower. A4 would prevent Turkish exports ThThursdayursday FFridayriday Businesses raise prices Taliban fighters stormed from becoming cheaper with when they feel Americans are a strategic city in eastern the lira’s fall and exacerbating able and willing to spend Change in Turkey’s foreign-currency reserves since 2014, in billions Afghanistan ahead of an worries of a prolonged trade more. For much of the expan- expected cease-fire. A5 spat between the two NATO sion, inflation remained stub- allies. $0 Turkey’s lira plunged bornly low, prompting an un- Calls grew foraprobe The U.S. appeared likely to to its lowest level on precedented stimulus into airstrikes in Yemen that keep up pressure after calling –10 record against the campaign from the Federal Re- killed at least 29 children. A8 for months for the release of a dollar, underscoring serve to counteract its anemia. 6 The budget deficit widened U.S. pastor detained in Turkey. –20 the extent of investor But rising prices are now 21% in the first 10 months of “Our relations with Turkey are concern over the eating up much of Americans’ the fiscal year compared not good at this time!” Mr. country’s ﬁnances. wages gains, restraining their with the year-earlier period. A3 Trump wrote on Twitter. –30 ability to spend in the future. By the end of New York’s ’15 ’16 ’17 ’18 For just the second time in The president renewed trading day, a dollar bought four years, average hourly his criticisms of NFL play- 6.43 lira, a decline of 41% from earnings—after inflation—fell ers who protest during the Turkish consumer prices, change from a year earlier the start of the year. The Dow over the past 12 months, a national anthem. A3 Jones Industrial Average 15% separate Labor Department re- slumped 196 points or 0.8% to Friday port Friday showed. Business&Finance 25313, its third straight de- 10 6.43 lira Workers still came out cline, while the dollar rose to ahead—barely—but only be- a one-year high. In Europe, 5 t41% cause they increased the number A humming U.S. econ- PleaseturntopageA6 Lira’s decline of hours they worked. Weekly omy is pushing inflation up earnings, adjusted for inflation, 0 against dollar to levels that the Federal Turkish turmoil has become YTD Please see page A2 Reserve considers healthy, tied to U.S. pastor’s fate..... A6 2015 ’16 ’17 ’18 but Americans’ paychecks Heard on the Street: Strong Sources: Dow Jones Market Data (lira); FactSet (foreign-currency reserves, stocks, indexes); Heard on the Street: Prices are barely keeping up. A1 dollar upends markets...... B14 Turkish State Institute of Statistics (consumer prices) THE WALL STREET JOURNAL. rise, wages could be next... B14 Parts makers are lagging behind the boom in U.S. manufacturing, prompting some Sizing Up the Richest of Them All firms to idle production lines Parts Makers’ Shortages Tap and digest higher costs. A1 Elon Musk’s idea for a Tesla buyout has put a Brakes on Industrial Boom spotlight on the electric-car maker’s board of directors. B1 BY DOUG CAMERON have reported strong sales and the hardest-hit sector. VF Corp., the owner of AND AUSTEN HUFFORD profits in recent weeks, and These bottlenecks were evi- Lee and Wrangler jeans, is the pace of factory hiring has dent in the earnings reports exploring strategic options American factories are run- more than doubled this year manufacturers delivered over for its denim business. B1 ning short of parts. compared with the first seven the past few weeks. The S&P 500 and the Dow Suppliers of everything months of 2017. Terex Corp. said its mobile- fell Friday, snapping a five- from engines to electronic However, deliveries from crane-making unit incurred a week streak of gains, as trade components are lagging be- suppliers have slowed for 22 loss in the second quarter as tensions and jitters about Tur- hind the boom in U.S. manu- consecutive months through parts shortages hurt efficiency key rippled across markets. B13 facturing, which has lifted de- July, according to the latest at its plants. “The reality of it mand in markets such as survey of U.S. manufacturers is that elements of our supply The FDA approved the energy, mining and construc- by the Institute for Supply base could not keep up,” Chief first drug that combats

tion. As a result, some manu- Management. Nearly 29% of Executive John Garrison said REX CURRY/REUTERS disease by silencing the facturers are idling production the more than 700 respon- on an Aug. 1 earnings call. BILLION-DOLLAR QUESTION: Whether Amazon’s Jeff Bezos can genes driving it. B3 lines and digesting higher dents said it took longer for Machinery giant Caterpillar be called the richest person in modern history depends on how Monsanto was ordered to costs. materials to arrive in July Inc. and power-equipment you assess past contenders for the title. The Numbers, A2 pay $289.2 million in a law- Many industrial companies than in June. Machinery was PleaseturntopageA4 suit over whether exposure to two of its powerful weed killers caused cancer. B3 French Freedom Fighters Press EXCHANGE One Man’s Quest to Venezuela’s state oil company plans to appeal a For the Rights of Parisian Rats U.S. ruling allowing one of iii Solve a Bitcoin Heist the country’s creditors to seize Citgo Petroleum. B13 Rodents overrunning the City of Light Inside have their defenders; ‘Rat-Prochement’ When Mt. Gox blew, Kim Nilsson got angry BY JOSH JACOBS control drugs. BY JUSTIN SCHECK who also lost bitcoins to track OPINION A13 AND MATTHEW DALTON Their position was “inde- AND BRADLEY HOPE down the culprits. What en- fensible, given the scale of the sued was a three-year journey Siri, Why Do I PARIS—Rats were popping infestation,” says Mr. Boulard. Kim Nilsson was seething. through the internet’s under- up at supermarkets, parks and “We can’t get accustomed to It was 2014, and the software belly that ended last summer Feel Like I’m nurseries when a city official having rats in public spaces.” engineer discovered someone on a Greek beach. There, in convened a crisis meeting last The city’s pro-rat activists had disabled access to his bit- the shadow of a 1,000-year- Being Watched? fall to discuss ways to cull the disagree. Rattus norvegicus, GLOOMY coins. A crime had appar- old monastery, FBI agents ar- population. the species of ently been committed, one rested a Russian man and That was the rat endemic to DIAGNOSIS FOR that the police seemed unable charged him with laundering CONTENTS Sports...... A14 first time Geof- big cities, has to comprehend, much less bitcoin worth some $4 billion Books...... C7-12 Style & Fashion D2-3 IBM EFFORT Business News..... B3 Technology...... B7 froy Boulard, the right to in- solve. at recent exchange rates, one Food...... D6-7 Travel...... D4-5 mayorofthe habit the City of ON CANCER The coins went missing of the biggest crimes to be al- Heard on Street...B14 U.S. News...... A2-4 17th arrondisse- Light like any B1 from a failed bitcoin exchange leged in the brief history of Obituaries...... A9 Weather...... A14 ment in north- other mammal, called Mt. Gox, and hundreds cryptocurrencies. Opinion...... A11-13 World News...... A5-8 western Paris, they say. The ac- of investors found themselves Mr. Nilsson’s bitcoin odys- realized the ro- tivists regard demoralized, if not broke. sey, from an optimistic adher- > dents are backed Vive la résistance! poisons and rat BATTERY More than $400 million had ent to a hardened computer by a vocal lobby. traps as a form seemingly vanished into cy- sleuth, encapsulates the Ten protesters stepped for- of unusual cruelty. When the PIONEER KEEPS berspace. messy maturing process of ward to denounce extermina- city stepped up exterminations GOING AT 96 Unlike many victims, Mr. cryptocurrencies as their s 2018 Dow Jones & Company, Inc. tors’ plans to poison the ani- 18 months ago, they unleashed Nilsson resolved to fight value and use have exploded All Rights Reserved mals. They urged a more an online petition garnering B5 back, and he teamed up with in recent years. His unearth- humane method: Deploy birth- PleaseturntopageA10 a lawyer and another partner PleaseturntopageA10 A2 | Saturday/Sunday, August 11 - 12, 2018 ****** THE WALL STREET JOURNAL. U.S. NEWS

THE NUMBERS | By Jo Craven McGinty Bezos vs. Rockefeller, a Rich History Lesson

With a for- about $6.5 billion in 1916, doesn’t make sense. Nor does GDP. Mr. Bezos’ wealth repre- aren’t comparable anyway. tune exceeding when Rockefeller’s riches first comparing overflowing bank- Big Bucks sents around 0.7% of today’s “Imagine having a ton of $150 billion, hit the $1 billion mark. rolls to the earnings of un- J.D. Rockefeller’s fortune hit GDP—if that much. gold in the middle of the Amazon.com But some experts argue skilled or production work- $1 billion in 1916. Here's how 14th century in Mali,” Mr. founder Jeff that adjusting the worth of ers, as the relative labor much it would be worth today uch of Mr. Bezos’ Bernstein said, referring to Bezos was re- gazillionaires based on the earnings measurement does. using a variety of measures: worth is tied up in Musa. “Just getting it out of cently declared the richest price a bundle of goods and But the remaining two M shares of Amazon the country to buy stuff is person in modern history. services an average house- measures, relative income Share of GDP stock, and in July, when the hard enough. Even if you can But is he? hold would buy, as the CPI and relative output, provide Bloomberg Billionaires In- get the wealth out, camels $407 billion The answer depends on does, is absurd. useful context for evaluating dex listed his net worth, can’t bring all the stuff back how you account for the “Jeff Bezos can afford all the worth of the yacht set. Relative to per capita GDP there was speculation the that you’d want to buy. I’d wealth of past contenders the things he wants,” said Bill They rely on gross domestic high mark would be short- rather be sitting where I am for the title. Bernstein, an investment product, the value of all the 127 lived thanks to shifting with my comfortable middle- There are at least five ways manager and author of “The finished goods and services stock prices. class income.” Consumer Price Index to do that, and each provides Birth of Plenty: How the Pros- produced within a country’s “A hundred shares of Nonetheless, Musa, a Mus- a different result, according perity of the Modern World borders in a specific time 24 Jeff Bezos stock might be priced at lim, is said to have embarked $150 billion to Samuel H. Williamson, an Was Created.” “I doubt he will period. $100; but if nobody is buy- on a 4,000-mile journey to economist and president of consume even a small fraction Relative income, a mea- Source: Measuringwealth.com ing, it’s not worth any- Mecca with a caravan of the website Measuring Worth. of his wealth.” sure of status, is calculated THE WALL STREET JOURNAL. thing,” Dr. Williamson said thousands distributing Real wealth, the most fa- by dividing the current GDP to illustrate the vagaries of enough gold along the way miliar yardstick, accounts for he remaining measure- per capita by an earlier year’s Relative output, a measure the market. to inadvertently disrupt the the relative purchasing power ments recommended GDP per capita and then mul- of power, is calculated simi- In the distant past, other economy in Egypt for more of a particular sum by adjust- T by Dr. Williamson are: tiplying the result by a dollar larly, by dividing the current problems plagued the super than a decade. ing it for inflation based on household purchasing power, value from the earlier year. GDP by a past GDP and multi- wealthy. But back to the superla- the consumer-price index. relative labor earnings, rela- Using that measure, plying the result by a dollar Apart from recent mem- tive. Using that measure, the tive income and relative out- Rockefeller’s fortune equals value from the earlier year. bers of the billionaires’ club, According to one of the fortune of John D. Rockefeller, put. But not all are helpful $127 billion today—about 15% By that measure, Rockefel- the most serious contenders more relevant measures of America’s first billionaire and for comparing the astronomi- less than Mr. Bezos’ worth. ler’s riches translate to $407 for richest person tend to be extreme wealth, Mr. Bezos is Mr. Bezos’ stiffest competi- cal worth of oil tycoons and “What you’re saying is billion—nearly three times at ancient figures such as Is- indeed the richest person tion among latter day aristo- e-commerce kings. that $1 billion in proportion large as Mr. Bezos’ worth. rael’s King Solomon or Mali’s ever in modern times. But crats, would equal only $24 Judging the outsize re- to the GDP per capita in 1916 The same information can Mansa Musa, men whose according to another he isn’t. billion today. sources of the ultrarich based is the same” as $127 billion be rendered as a percentage riches and economies are Which is correct? Working in reverse, Mr. Be- on the purchases of an aver- in proportion to GDP per cap- of GDP. Rockefeller’s wealth virtually impossible to docu- That, it turns out, is a zos’ fortune would amount to age household probably ita today, Dr. Williamson said. represented 2% of the 1916 ment—and, some argue, very rich question. U.S. WATCH One Year Later, Charlottesville Remembers Violence

CALIFORNIA Mr. Astarita was charged with making false statements and ob- Judge Rejects Deals struction of justice after telling In Fatal Oakland Fire investigators he didn’t fire two shots that missed Robert “La- Judge James Cramer on Fri- Voy” Finicum, a key figure in the day rejected the plea deals of group that seized the eastern Or- two men who were charged egon refuge while protesting the with 36 counts of involuntary imprisonment of two ranchers. manslaughter after a 2016 Cali- Oregon State Police fatally fornia warehouse fire. shot Mr. Finicum seconds later. Mr. In handing down his decision, Astarita denied firing the shots. Judge Cramer said 48-year-old Federal prosecutors had ar- Derick Almena didn’t accept “full gued that Mr. Astarita was a responsibility and remorse” for rookie on the elite Hostage Res- the fatal blaze which occurred cue Team who panicked as Mr. during an unlicensed concert at Finicum came close to running the dilapidated Oakland ware- over his colleague at a police house known as the “Ghost Ship.” roadblock. The plea deal had called for —Associated Press Mr. Almena to be sentenced to nine years in prison and 28-year- SUPREME COURT old Max Harris to six years. Rel- atives of victims who died in the Kavanaugh Hearings fire had criticized the proposed To Begin on Sept. 4 sentences as too lenient. Authorities have alleged Mr. The Senate Judiciary Commit- Almena rented the warehouse tee will begin hearings on Brett and illegally converted it into an Kavanaugh’s nomination to be entertainment venue and resi- the next Supreme Court justice dences before the fire. Mr. Harris on Sept. 4, the panel announced was accused of helping him col- Friday. lect rent and schedule concerts. The hearings, which are ex- Authorities said they were pected to last three or four days, unable to determine a cause of will give senators a chance to the blaze. question Judge Kavanaugh as Mr. Almena’s attorney said he well as hear from former col- would take the case to trial. A leagues, outside legal experts and spokesman for the city attorney, the American Bar Association. declined to comment. The White House, in a state- —Associated Press ment, said, “Judge Kavanaugh looks forward to addressing the OREGON Judiciary Committee in public hearings for the American peo- FBI Agent Acquitted ple to view.”

LOGAN CYRUS/AGENCE FRANCE-PRESSE/GETTY IMAGES Of Lying in Shooting Democrats said that the hear- CITY ON EDGE: Mourners embraced at a memorial honoring a woman who was killed by a driver as she protested the Unite The ing date was too soon to allow a Right rally in Charlottesville, Va. Gov. Ralph Northam declared a state of emergency ahead of the anniversary this weekend. An FBI agent has been found reasonable consideration of the not guilty of lying about firing judges’ qualifications and that shots at a militia leader who par- senators haven't received access ticipated in the 2016 armed take- to all the relevant documents Democratic National Commit- over of an Oregon wildlife refuge. from the nominee’s career. Inflation Paltry Paychecks tee said in a statement after A jury on Friday returned the —Byron Tau Inﬂation ate up all of the gains in workers’ hourly pay in July. Friday’s report. verdict on W. Joseph Astarita. and Brent Kendall Many economists believe 6% Real average hourly earnings for workers’ wages will pick up. Is Eating private-sector workers, change from a year earlier For one, the recent rise in infla- CORRECTIONS&LIFICATIONS tion is partly due to higher en- 4 ergy costs, which tend to be Into Wages volatile and could recede. Also, Saudi Arabia officials said incorrectly said the statement home sales have fallen and in January that Prince al-Wa- was made earlier this month. ContinuedfromPageOne 2 apartment construction has leed bin Talal came to an un- grew 0.1% in the past year. boosted inventory in some cit- disclosed settlement with the Lawyer Patrick Conner’s “It seems like any time we ies. Such developments could government after being de- last name was misspelled as get any kind of raise, any kind 0 bring down rents and slow tained as part of a wave of ar- Connor in a Page One article of opportunity, expenses rise,” home-price growth, which have rests in that country. An article Friday about the trust that said Simeon Weinraub, a 49- been among the biggest drivers Wednesday about Snap Inc.’s will control Viacom Inc. and year-old self-employed video –2 of inflation in recent years. results, which appeared on CBS Corp. when media mogul producer. Meanwhile, companies, Page One in some editions and Sumner Redstone dies or is His landlord this month which have raised wages in rein Business & Finance in others, deemed incapacitated. raised by 10% the rent on the –4 cent years as unemployment house he shares with his preg- 2008 ’10 ’12 ’14 ’16 ’18 fell, may have to raise them Readers can alert The Wall Street Journal to any errors in news articles by nant wife and two kids in Pas- Note: Seasonally adjusted further as workers become emailing [email protected] or by calling 888-410-2667. adena, Calif. Mr. Weinraub and Source: Labor Department THE WALL STREET JOURNAL. harder to find. his wife, a charter-school su- For now, price increases ap- THE WALL STREET JOURNAL perintendent, make almost Inflation by that measure pear to be modest but not (USPS 664-880) (Eastern Edition ISSN 0099-9660) $200,000 combined. appears to be roughly at the Companies may crippling. (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) But with monthly rent now Fed’s target after years run- In Boston, Tommie Chavis’s Editorial and publication headquarters: at $2,750, child care at about ning below it. have to raise pay as landlord has raised his rent by 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. $1,000, and other expenses, Rising consumer costs workers become $100, or 4%, over the past year Periodicals postage paid at New York, N.Y., and other mailing offices. the family feels squeezed, he could upend any political mes- for the apartment he shares Postmaster: Send address changes to The Wall Street Journal, said, adding: “It doesn’t feel saging ahead of the November harder to find. with three roommates. They are 200 Burnett Rd., Chicopee, MA 01020. like it’s sustainable.” midterm elections. Gross do- set to pay $2,600 a month soon. All Advertising published in The Wall Street Journal is subject to the applicable rate card, Many economists expect in- mestic output grew at a 4.1% Mr. Chavis, 24, who re- copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., flation to slowly rise but re- annual rate in the second cently earned a master’s de- 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final main tame, in part because quarter, the strongest quarter cally low unemployment rate gree and is applying to dental acceptance of the advertiser’s order. the Fed plans to gradually since 2014, and economists of 3.9%. school, is about to start a full- Letters to the Editor: Fax: 212-416-2891; email: [email protected] raise interest rates to prevent project growth will clock in at But along with such strong time job at Target to help the economy from overheat- 3% for 2018 as a whole. growth can come faster infla- cover costs. NEED ASSISTANCE WITH YOUR SUBSCRIPTION? ing. Friday’s report likely bol- President Trump, a Republi- tion, which cuts into purchas- “It’s annoying, but if it was By web: customercenter.wsj.com; By email: [email protected] sters the central bank’s plans can, has pointed to the GDP ing power, and Democrats are not split four ways it would be By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat for two more rate increases numbers as a sign his eco- pointing to modest wage a hassle,” Mr. Chavis said of this year. nomic agenda—including de- growth as a sign the econ- the rental increase. He says he REPRINTS & LICENSING The Fed prefers inflation at regulation, a tax cut and ef- omy’s gains aren’t being has kept the lid on his other By email: [email protected]; By phone: 1-800-843-0008 2% annually—as measured by forts to revamp trade deals—is spread evenly. costs—for example, his gym a separate Commerce Depart- working. “Workers are not benefiting membership is only $10 a GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS ment gauge. He also points to a histori- from the Trump economy,” the month. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | A3 U.S. NEWS New Protests In NFL Draw Trump’s Ire

President tweets after tune doing what they love... Be happy, be cool! A football game, demonstrations at that fans are paying soooo preseason games; much money to watch and enjoy, is no place to protest. Most ‘players are at it again’ of that money goes to the players anyway. Find another way BY ANDREW BEATON to protest. Stand proudly for your National Anthem or be President Trump renewed Suspended Without Pay!” his criticisms of NFL players The criticisms come after the who protest during the na- National Football League tried tional anthem, writing Friday and failed to implement a new in a pair of tweets that players national anthem policy during should stand “proudly” for the the off-season, following two anthem or be suspended with- seasons in which the player pro- out pay. tests became what some saw as The remarks came after the a distracting controversy. first full week of the NFL’s pre- NFL owners voted in May to season began Thursday night, enact new rules that said play- with a handful of players dem- ers would be required to stand onstrating during the national and show “respect” for the an- WILFREDO LEE/ASSOCIATED PRESS anthem to call attention to ra- them if they remained on the The Miami Dolphins’ Robert Quinn and other NFL players protested by kneeling or raising a fist during the national anthem Thursday night. cial inequality and social injus- field while it was played—and tices. Mr. Trump’s comments that their teams could choose to ment. Just two weeks before enforced across the different players. In response to imme- gan. As part of the detente, echo similarly sharp criticisms discipline them, financially or the rule was altered, people teams. Some owners indicated diate backlash, owner Stephen the NFLPA agreed to put its he made last fall. otherwise, if they didn’t. The from the league told the NFLPA that they wouldn’t penalize Ross said the sentence was a grievance on hold while it en- Mr. Trump wrote in two policy also said that players that no such change was going their players if they continued “placeholder” and the team gaged with the NFL in talks on tweets: “The NFL players are at who didn’t wish to do so could to happen, a person familiar to protest. Others, such as hadn’t made a decision on a new potential policy. it again - taking a knee when remain in the locker room. with the matter said. Cowboys owner Jerry Jones, what it would do, “if any- “While those discussions they should be standing But the NFL Players Associa- The NFLPA filed a grievance said that their team’s players thing,” at that point. continue, the NFL has agreed proudly for the National An- tion took issue with the new on July 10 to challenge the new must stand and be on the field. In the immediate wake of to delay implementing or en- them. Numerous players, from rule. The NFLPA said it wasn’t policy. Meanwhile, it slowly be- Later in July, the Associ- that drama, the NFL agreed to forcing any club work rules different teams, wanted to consulted on the policy change came clear that the new policy ated Press reported that the put its new anthem policy on that could result in players be- show their “outrage” at some- and planned to challenge could become problematic for Miami Dolphins had created a hold—just two months after it ing disciplined for their con- thing that most of them are un- whether it was consistent with the league because it allowed rule that could allow the team was enacted in the first place duct during the performance able to define. They make a for- the collective bargaining agree- for different standards to be to fine or suspend protesting and before the preseason be- of the anthem,” the NFL said. Inside a Texas Detention Facility for Immigrant Families BY ALICIA A. CALDWELL crack down on illegal immigra- Karnes and Dilley closed since tion and quickly deport people the facilities were opened, DILLEY, Texas—In the past caught crossing the border il- during the Obama administra- 10 months, more than 25,000 legally. Both are operated by tion, when a crush of families immigrant mothers and their contractors and overseen by were caught crossing the bor- children caught illegally cross- ICE. der illegally in 2014. ing into the U.S. at the border The Trump administration The Trump administration with Mexico have spent their wants the families’ stay at the has said zero-tolerance and first weeks in the country liv- detention centers to end only family separation were part of ing in a sprawling compound when an immigration judge a broader effort to deter of trailers, tents and play- decides if they should be de- would-be border crossers from grounds. portedorallowedtostayand trying to sneak into the U.S. The children go to school live in the U.S. But so far, nei- The Obama administration most days and their parents ther the judge in California also used family detention as a meet with lawyers and immi- who ordered the 20-day limit deterrence. gration advocates who volun- nor Congress has acted to It is unclear if the effort is teer at the U.S. Immigration change the rules. having any impact on border and Customs Enforcement de- So families rotate in and crossings. tention center. Almost every- out of the facility, which can Katy Murdza, advocacy co- one will ask for asylum in the hold as many as 2,400 moth- ordinator of the Dilley Pro U.S., a process that could take ers and children. Daniel Bible, Bono Project, said parents in-

several years. an ICE official in charge of de- ALICIA A. CALDWELL/THEterviewed WALL STREET JOURNAL by her group worry For most, the stay will last taining and deporting unau- The detention center in Dilley, Texas, can hold as many as 2,400 mothers and children. about how the U.S. govern- no more than 20 days, because thorized immigrants in this ment will treat them once they of a federal court ruling that part of Texas, said since Octo- tention facility Thursday and Michael Sheridan, an ICE the 55-acre compound freely arrive but opt to come anyway bars the government from de- ber only 122 people have been provided a guided tour. At one manager and program analyst during the day. They wear ei- because conditions in their taining children with their deported from the center. The of the indoor gyms, the door at the center, said any child, 4 ther their own clothes or T- home country are so dire. parents for any longer. others are released to rela- was propped open by a to 17 years old, attends school shirts, jeans and shoes given “They don’t make this deci- The South Texas Family tives or on their own, many speaker blasting a Jimmy Buf- as long as they are at Dilley. to them upon arrival. There sion lightly,” Ms. Murdza said. Residential Center in Dilley with an ankle monitor and a fett song. The classrooms Classes include English as a are no cells or locked areas. “They’re doing it feeling they and a second family detention court date to appear for their were outfitted like most typi- second language, social stud- Immigration advocates have don’t have any choice. We’re center about 95 miles to the asylum hearing after their stay cal schools, with science proj- ies, math and science. The av- long objected to family deten- still seeing so many families east in Karnes have become here. ects on display for the older erage stay at Dilley is about tion centers and faulted the who said they were afraid to focal points in President ICE officials allowed a children and the alphabet on a 15½ days right now, he said. conditions. Numerous groups come, but they had no other Trump’s continuing efforts to group of reporters into the de- wall for the youngest. Detainees may move about have pushed to have both choice.” Budget Deficit Increased 21% in Period

BY SHARON NUNN payments. Red Ink Government revenue fell 3% Federal budget deﬁcits are growing as spending Full year WASHINGTON—The U.S. last month compared with a rises and revenue falters. First 10 months government’s budget deficit year earlier, while spending widened in the first 10 months grew 10%. $0trillion of the fiscal year compared Deficits are rising partly with the year-earlier period. because business and individ- –0.25 The deficit, or the differ- ual tax rates were cut last year ence between the amount of while government spending –0.50 money the federal government has been ramped up. spent and what it took in, to- Since the beginning of the –0.75 taled $684 billion in October year, when the tax cuts went through July, the Treasury De- into effect, the deficit widened –1.00 partment said Friday. That 29% from the 2017 period.

*Cigar & Spirits Magazine CBO full-year was 21% more than the deficit White House representa- February 2018 Issue –1.25 estimate of $566 billion in the year-ear- tives argue reductions in tax lier period. rates spur economic growth –1.50 July’s deficit was $77 bil- and raise tax revenue by lion, 79% wider than July boosting taxable household FY2005 ’10 ’15 ’18 2017’s deficit of $43 billion. and business income, though Note: Fiscal year ends Sept. 30. This hefty increase stems lower rates also mean less tax Sources: Treasury Department; partly from a difference in generated for each dollar of Congressional Budget Ofﬁce (estimate) THE WALL STREET JOURNAL. timing of certain government income.

**June 2018 Issue Razor-Thin Kansas Vote Becomes Legal Fight BY ANDREW DUEHREN election officials review the ignated Assistant Secretary of fice has given inaccurate ad- vote count and tally the re- State Erick Rucker to fulfill his vice to local election officials Kansas Gov. Jeff Colyer dug maining ballots. Mr. Colyer in election responsibilities—a regarding the handling and in for a legal fight over this a letter Thursday asked Mr. move that the Colyer cam- counting of mail-in and provi- past week’s Republican guber- Kobach to recuse himself from paign said was still insuffi- sional ballots,” Mr. Kobach natorial primary, hiring an advising county election offi- cient. Mr. Kobach declined Mr. wrote. outside lawyer for the vote- cials on the matter, saying it Colyer’s request to transfer re- The vote count will con- counting process with Secre- had come to his attention that sponsibility for the election to tinue to fluctuate for days or tary of State Kris Kobach lead- Mr. Kobach was making state- the Kansas attorney general. possibly weeks. Bryan Caskey, ing the incumbent by less than ments that “may serve to sup- Mr. Kobach rebutted Mr. the Kansas director of elec- a tenth of a percentage point. press the vote.” Colyer’s allegations in a letter tions, said there are roughly CRAFTED WITH OVER 325 YEARS The Colyer campaign hired Mr. Kobach, who was en- of his own Friday. 9,000 provisional ballots to ex- OF NOLET FAMILY EXPERIENCE Todd Graves, a Kansas City at- dorsed by President Trump, “While I am certain that amine. Under Kansas law, can- DISCOVER MORE AT NOLETSGIN.COM torney who works on election formally recused himself Fri- your motivation in writing me didates can request a recount law. day from his duties as secre- is sincere, unfortunately your free of charge if the margin of PLEASE DRINK RESPONSIBLY NOLET’S® Silver 47.6% Alc./Vol. (95.2 Proof) Mr. Colyer has ramped up tary of state until the end of campaign letter expresses in- victory is less than one half of ©2018 Imported by NOLET’S US Distribution, Aliso Viejo, CA. pressure on Mr. Kobach as the primary process and des- correct allegations that my of- a percentage point. A4 | Saturday/Sunday, August 11 - 12, 2018 PWLC101112HTGKBFAM123456789OIXX ****** THE WALL STREET JOURNAL. U.S. NEWS Tower Near Trump’s Must Be Sold Scrutiny The U.S. government has which has a fiduciary duty to issued an executive order in Deepens on told Chinese conglomerate the trust, not to HNA. 2012 directing a Chinese- HNA Group Co. it has to sell HNA is now trying to find a owned company to divest itself its majority stake in a Manhat- buyer for the building to com- of an acquisition of four wind President’s tan skyscraper whose tenants ply with the CFIUS order, farms in Oregon based on their include a police precinct though the company wasn’t proximity to a naval base. tasked with protecting Trump given a deadline to sell, these Lawyers generally recom- Adviser Tower, according to people fa- people said. mend that foreign buyers en- BY SADIE GURMAN miliar with the matter. The Chinese conglomerate gage with CFIUS and its re- AND SHELBY HOLLIDAY in 2016, before Mr. Trump’s view process while a deal is By Keiko Morris, election, acquired a 90% stake pending, because, without a Special counsel Robert Julie Steinberg in the 21-story tower on Third prior CFIUS clearance, the Mueller is bringing heightened and Esther Fung Avenue in a deal that valued president could require a di- scrutiny to Roger Stone, a the building at $463 million, vestiture or impose other ad- longtime adviser to President The Committee on Foreign according to public records. verse conditions after closing. Trump who claimed he had in- Investment in the U.S., which The building is a few blocks Congress recently bolstered teractions with WikiLeaks reviews whether foreign invest- away from Trump Tower and the committee’s authority to founder Julian Assange during ments in the U.S. represent na- houses the New York Police counter a range of Chinese ac- the 2016 presidential cam-

tional security risks, informed Department’s 17th precinct, JEENAH MOON/BLOOMBERG NEWS tivities, including its ability to paign. the Chinese company a couple whose duties include security HNA Group’s building at 850 Third Ave. houses a police precinct vet real-estate transactions On Thursday, Mr. Mueller of months ago it had to divest for Trump Tower. President tasked with protecting Trump Tower, which is blocks away. near sensitive U.S. facilities. subpoenaed the man Mr. Stone itself of its holding in the build- Trump maintains a residence A White House spokesman claims was his back channel to ing, according to these people. in that Fifth Avenue building. stances regarding the location HNA is in talks with people didn’t respond to requests to WikiLeaks throughout the CFIUS, as the committee is A spokesman for HNA said of this particular property that interested in the building, a comment. A spokesman for campaign—New York come- known, didn’t explain to HNA the company has “respect for did not exist at the time of person familiar with these the NYPD wasn’t immediately dian and radio personality why it had to sell the property, the confidentiality of the purchase which have raised talks said, though it isn’t clear available to comment. Randy Credico. The subpoena one of these people said. CFIUS process,” and that the certain concerns, and HNA how much a potential buyer MHP Real Estate Services, was confirmed by Mr. Cred- At the behest of CFIUS, company doesn’t view the sit- Group is taking measured would pay. which owns a minority stake ico’s attorney, Martin Stolar. HNA set up a blind trust and uation as a fire sale. steps to address them.” CFIUS, an interagency com- in the Third Avenue tower and Separately, self-described transferred its ownership “There is no seizure or CFIUS didn’t respond to re- mittee led by the Treasury, is manages it, said the operation “Manhattan Madam” Kristin stake in the building to that forced sale of 850 Third Ave- quests to comment, and a able to force a sale after a of the building has continued Davis, who has close ties with trust, a person familiar with nue under way or pending,” Treasury spokesman didn’t transaction is completed by as usual. Mr. Stone, testified Friday be- the matter said. The trust has the spokesman said. “There immediately respond to re- making a recommendation to —Katie Honan fore the grand jury hearing ev- its own board of directors, are unique facts and circum- quests to comment. the president. President Obama contributed to this article. idence in Mr. Mueller’s Russia investigation, her spokeswoman said. Ms. Davis’s spokeswoman, Lainie Speiser, declined to House Republicans See Hope in Minnesota elaborate beyond confirming her testimony. BY JOSHUA JAMERSON The probe is looking at alleged Russian interference in ELY, Minn.—As Republicans the campaign and any possible fight to maintain their House coordination with Trump asso- majority in the midterm elec- ciates. Russia has denied med- tions, Minnesota provides a dling in the election. rare spot for them to flip a Mr. Mueller’s interest in Mr. couple of Democratic seats to Stone stems largely from his offset losses that may come interactions with WikiLeaks elsewhere. and the online persona Gucci- Voters in two sprawling, ru- fer 2.0. In an indictment, the ral Minnesota congressional special counsel’s office alleged districts backed President Guccifer 2.0 was a front for Trump by about 15 percentage Russian intelligence officials points each in 2016. The GOP’s who hacked material later re- effort is aided by two high-pro- leased by WikiLeaks. file Democratic departures: Rep. The Wall Street Journal has Rick Nolan of the state’s Eighth reviewed emails showing Mr. District, in which Ely sits, is re- Stone told Mr. Credico in Sep- tiring, and Rep. Tim Walz of the tember to “please ask As- First District is leaving Con- sange” for information that gress to run for governor. would be damaging to Demo- Of Mr. Nolan’s district, cratic presidential nominee Corry Bliss, executive director Hillary Clinton. In October, of the Congressional Leader- weeks before the 2016 elec- ship Fund, a super PAC closely tion, WikiLeaks began releas- aligned with House Speaker ing the emails of Mrs. Clin- Paul Ryan, said: “I would ar- ton’s campaign chairman, John gue that’s our best pickup op- Podesta. portunity in the country.” Mr. Credico has denied be- Democrats need a net gain of ing a conduit between 23 seats to retake control of the WikiLeaks and Mr. Stone. Mr. House, and more than 60 GOP- Stone has said WikiLeaks never

held seats have been deemed SCOTT OLSON/GETTY IMAGES gave him any information and competitive by the nonpartisan Pete Stauber, GOP candidate for the House in Minnesota’s Eighth District, has positioned himself as a strong ally of President Trump. that he never had special ac- Cook Political Report. cess to the website’s material. There are two Republican- winning one or both of the Dem- That is why Tim Thunstedt, heart,” said Steve Hansberry, 64, the primary. But he also op- Mr. Stone said Friday that held Minnesotan districts—to- ocratic-held tossup districts all an art dealer from Little Falls, a former facilities manager at poses the tax cuts Mr. Trump while Mr. Credico told him in gether encompassing a swath the more important for the GOP. Minn., plans to support him. Mr. the Federal Bureau of Prisons. signed into law, which he views the summer of 2016 that of the Twin Cities metro President Trump is popular Thunstedt said he sees Mr. Stau- “But there’s vile coming out of as “designed for the wealthy.” WikiLeaks planned to release area—deemed at risk of flip- in the Eighth District, which ber as an ally to Mr. Trump on that Oval Office.” The Congressional Leader- “substantial information on ping Democratic. Rep. Jason brushes up against the Cana- trade, border security and pro- The Democrats’ challenge in ship Fund has reserved roughly Hillary Clinton” that October, Lewis (R., Minn.) is facing dian border and runs south tecting the U.S. Immigration and the Eighth District is compli- $2.5 million in fall TV ad buys Mr. Credico didn’t tell him Democrat Angie Craig, who is through some of the nation’s Customs Enforcement, or ICE. cated by a fractured primary, to bolster Mr. Stauber, one of “what the source, content or running unopposed in next richest mining country. Mines “We used to be Democrats,” in which one long-shot candi- its larger reservations to date. scope of the WikiLeaks disclo- week’s primaries. She already in the Mesabi Iron Range re- Mr. Thunstedt said. “But it’s date, North Branch Mayor The National Republican Con- sures would be.” has raised more money than gion are ramping up capacity further to the left than I’d like Kirsten Hagen Kennedy, has gressional Committee has re- Also Friday, an aide to Mr. the one-term congressman. to meet growing demand for to see. If we don’t have bor- called for abolishing ICE. Some served more than $1.2 million. Stone, Andrew Miller, was held Republican Rep. Erik Paulsen, ore in steel mills as far away as ders, we don’t have a country.” other candidates have taken a The Democratic Congressio- in contempt of court for refus- who is the top fundraiser in Lake Erie. The Republican run- At Ely’s recent Blueberry and more-moderate approach. nal Campaign Committee, the ing to testify before the grand his district, likely will go head- ning here for Mr. Nolan’s seat, Art Festival, Mr. Stauber ran into “I don’t want to make this a House Democrats’ campaign jury. A judge had rejected Mr. to-head with a well-financed Pete Stauber, has positioned at least one voter who wanted to referendum on Trump or not,” arm, has reserved $6 million Miller’s argument that Mr. opponent in Democrat Dean himself as a strong ally of the send to Congress someone who said Joe Radinovich, a Demo- for the Minneapolis/St. Paul Mueller’s appointment was un- Phillips, an entrepreneur. president, and Mr. Trump has would serve as a check on Mr. crat who is considered one of region, which includes a siz- constitutional and ordered Those potential losses make campaigned with him. Trump. “I am a conservative at the most viable candidates in able chunk of the district. him to answer questions.

openings in manufacturing current configuration we have, climbed to 482,000 in June, to keep up with demand,” he Factories the Federal Reserve Bank of St. added. Louis said Tuesday, the high- Years spent making supply est level in 17 years. chains as lean and efficient as Face Parts A monthslong crunch in possible are hurting big cus- supplies of some basic elec- tomers now as demand climbs, tronic components is also cas- industry consultants said. Shortages cading through the manufac- “Suppliers have not been turing sector, as more willing to jump on adding ca- ContinuedfromPageOne industrial equipment is linked pacity because they’ve been maker Eaton Corp. are among to the web to provide data burned badly before,” said those struggling to keep up that can be used to predict Shiv Shivaraman, a managing with orders as supply-chain maintenance and replacement director at consultant Alix- kinks join labor shortages and needs. Partners LLC who advises auto cost pressures from transpor- Most of those components and machinery makers on sup- tation and import tariffs as are manufactured in Asia, ply chains and production pro- threats to the sector’s recov- where producers are already cesses. “You will see many ery. working flat out to supply the people limping for a while.” Eaton last week cut finan- consumer-electronics sector. Some companies are stock- cial guidance for its $2.5 bil- “The electronics supply-chain piling parts to head off future lion hydraulics unit as a result. environment remains challeng- challenges, potentially exacer- Caterpillar said it is paying ing and we continue to see bating the supply pressures. more for smaller or incomplete constraints across several “We built some inventory orders from suppliers that component categories,” said last quarter because we had

have struggled to meet de- LUKE SHARRETT/BLOOMBERG NEWS Mike McNamara, CEO of Flex seen the lead times extend and mand. Interim Chief Financial Heavy-equipment manufacturer Caterpillar has said supply-chain kinks are slowing its production. Ltd., a maker of so-called we are trying to protect our Officer Joseph Creed said in an smart-technology products. customers,” said Andrew Sil- interview that castings—the sion,” Oshkosh CEO Wilson close. Aerospace and car compa- “The lead times have signifi- vernail, CEO of Idex Corp., a metal building blocks for en- Jones said on a July 31 inves- Leggett & Platt Inc., a nies are also compiling big or- cantly lengthened and we see maker of pumps, valves and gines and other large vehicle tor call. maker of the part that moves der books and experiencing increasing shortages,” he said meters that is based in Lake parts—were in particularly Like their customers, many the pronged metal lifts at the supplier delays. Boeing Co. re- on the company’s earnings call Forest, Ill. short supply. suppliers to companies that front of forklifts, acknowl- cently had more than two last month. Still, executives expressed Delays are forcing some make products including edged it is struggling to meet dozen partly finished 737 air- “The good news is that de- confidence that booming order manufacturers to curb output. trucks and tractors shed work- “very, very strong” demand for liners parked outside its Ren- mand is really strong,” said books will encourage suppliers Oshkosh Corp. idled producers after the financial crisis. parts from its recently ac- ton, Wash., assembly plant and Tom Derry, chief executive of to boost output, either by in- tion of its mobile cranes be- Now some suppliers say they quired Precision Hydraulic Cyl- an adjoining airport awaiting the Institute for Supply Man- creasing wages to attract staff cause of parts shortages sev- are struggling to find skilled inders business. Leggett, based engines and other compo- agement, which publishes a or investing in more capacity. eral times in the past quarter. staff and remain hesitant to in Carthage, Mo., is paying its nents. closely watched monthly sur- “We are getting better. Our “We think we’ll probably con- ramp up production because workers more in overtime to A shortage of specialized vey on U.S. industrial condi- suppliers are getting better. tinue to see some of that in they worry a machinery-sector expand production hours and workers including welders and tions. We’re doing a much better job the fourth quarter, although recovery that began in late is considering more permanent truck drivers is exacerbating “The irony is we reached of shortening lead times,” said we do expect some progres- 2016 is now drawing to a measures to increase capacity. the crunch. The number of job the limits of our ability, in the Craig Arnold, Eaton’s CEO. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | A5 WORLD NEWS Afghan Forces Repel Taliban Siege of City U.S. airstrikes and local commandos drive back militants; death toll disputed

BY CRAIG NELSON AND EHSANULLAH AMIRI

KABUL—Taliban fighters stormed a strategic city in eastern Afghanistan on Friday, laying siege to government buildings and security installa- tions in a show of strength ahead of an expected cease- fire later this month. Over more than six hours of heavy fighting, during which some residents huddled in their homes in terror, the U.S. carried out airstrikes to help Afghan security forces beat back the early-morning attack on Ghazni, the capital of Ghazni province located 80 miles southeast of Kabul. By midmorning, the city of some 143,000 people was calm except for sporadic gunfire, a provincial security official said by telephone. “I’m at my office now, and I haven’t heard any in 10 minutes,” he said. On Ghazni’s outskirts, however, fighting between government and Taliban forces continued late into the day. Earlier, in the dark of night following a multipronged attack by the Taliban, the situa-

tion was far more fraught. A ZAKERIA HASHIMI/AGENCE FRANCE-PRESSE/GETTY IMAGES member of the provincial Taliban fighters attacked the provincial capital of Ghazni on Friday. The Taliban have been unable since 2015 to seize the capital of any of the country’s 34 provinces. council, Nasir Faqiri, had said the city would face “disaster” buildings and security check- phone connections to Ghazni tained control of all the facili- Iran. Several hundred locally ernment of President Ashraf unless central government au- points. Another man, a shop- had been severed. Nasrat Ra- ties. The American airstrikes based troops and police re- Ghani are expected to soon an- thorities in Kabul sent help to keeper, said he and his family himi, an Interior Ministry were carried out by attack he- gained control of the city after nounce unilateral cease-fires prevent landmarks in the city hid in their basement. spokesman, denied reports licopters and a drone, he said. more than two days of heavy to coincide with the three-day from falling under the mili- Some four hours into the that 14 police officers had died While the Taliban are pres- fighting. commemoration this month of tants’ control. fighting, Taliban spokesman in the fighting. ent in vast areas of Afghani- The battles in Farah and the Muslim festival of Eid al- Some 60 commandos of an Zabiullah Mujahid said on U.S. Army Lt. Col. Martin stan, the group has been un- Kunduz, the northern city Adha. Similar cease-fires in elite Afghan military unit Twitter that insurgents had O’Donnell, spokesman for the able since 2015 to seize the briefly seized by the Taliban in June prompted stunning would arrive four hours after taken over a majority of the U.S.-led military coalition in Af- capital of any of the country’s 2015, were demonstrations of scenes across Afghanistan of Mr. Faqiri’s warning, but government’s administrative ghanistan, said initial reports 34 provinces. Still, it is a formi- Taliban resilience and some of fighters from the rival forces meanwhile, residents in the offices in Ghazni, along with indicated “minimal” casualties dable fighting force, and all but the continued weaknesses of embracing each other and city retreated to the recesses the police headquarters and among Afghan security forces. a few Afghan and U.S. officials the expanding, U.S.-trained and snapping selfies. of their homes as the fighting district police stations. Dozens In a statement sent to re- say that only a negotiated po- armed Afghan forces. But both Attempting to harness the raged, fearing the worst. of government security forces porters, Col. O’Donnell con- litical settlement will end the cities are relatively remote. goodwill generated by the June “We couldn’t sleep all night. have been killed, he added. firmed the overnight Taliban fighting, now in its 17th year. Ghazni is closer to the capital truces to advance a nascent We were waiting for the Tali- Government officials in Ka- attacks on “multiple govern- In May, Taliban fighters at- and located on the main road peace process, U.S. officials last ban to knock on our door,” bul said late Friday that it was ment centers” in Ghazni, say- tacked the provincial capital of linking Kabul and Kandahar, Af- month met directly with Tali- said one man, who said the impossible to determine the ing Afghan security forces had Farah province, on Afghani- ghanistan’s second-largest city. ban officials in Doha, the capi- militants had burned several casualty toll because tele- held their ground and main- stan’s western border with The Taliban and the gov- tal of the Gulf state of Qatar. Indonesia President Chooses A Conservative Running Mate

BY BEN OTTO

JAKARTA, Indonesia—The decision by Indonesia’s moderate president to pick a conservative Islamic leader as his running mate underscores the rise of Islamist power in the country but adds a measure of stability for investors spooked by recent religion-fueled protests. President Joko Widodo, a member of Indonesia’s most secular party, tapped Ma’ruf Amin, the 75-year-old head of the leading Muslim clerics council and spiritual adviser to the nation’s largest Muslim organization, on Thursday to UFLANA/ASSOCIATED PRESS join his bid for a second five-

year term. TATAN SY The choice of Mr. Amin of- President Joko Widodo center left, with Ma’ruf Amin on Friday. fers Mr. Widodo, a Muslim, protection against criticism ening halal restrictions or giv- been stuck near 5% growth for from some quarters that he ing new life to movements to several years, partly from lacks sufficient Islamic creden- ban alcohol and criminalize lower demand from key trad- tials in the world’s largest unmarried sex. ing partners. The rupiah has Muslim-majority nation. This Mr. Widodo didn’t choose been hit by investor flight has been a frequent line of at- Mr. Amin “to advance a so- from emerging markets and is tack by opponents since the cially conservative agenda, but currently trading near its Heart to Heart former furniture maker seized that may be the ultimate re- weakest level in 20 years. the political stage six years sult if indeed he becomes vice Businesses say the two can- Diamond Bypass Ring ago as Jakarta’s governor and president,” said Doug Ramage, didates, if elected, would add then president. managing director of Bower- to stability in the trillion-dol- Rare heart-shaped diamonds. But Mr. Amin has also been GroupAsia in Indonesia. lar economy, primarily by de- Bold setting. Romantic design. an adversary, fueling a cam- Mr. Amin lacks a party to fusing any further religious- Two exquisite heart-shaped diamonds paign that led Mr. Widodo’s based street unrest. But they ally and successor as Jakarta’s expressed concern over Mr. intersect in this eye-catching bypass ring. Weighing 1.51 carats and 1.50 governor, a Christian from the Ma’ruf Amin, 75 Widodo’s weak political posi- often persecuted Chinese mi- tion. The president had pro- carats, each diamond is complemented nority, to be jailed last year for years old, heads the posed a different running by an array of accent stones, including blaspheming Islam. The cleric leading Muslim mate but relented in the face 2.36 total carats of sapphires. Crafted backed massive street protests of rebelling coalition partners. of 18K white gold and titanium, this by conservative Muslims. clerics council. Mr. Widodo will square off ring exudes both romantic charm and Mr. Widodo noted Thursday against his opponent from that the ticket offered voters 2014, former general Prabowo bold style. #30-8117 his nationalism and Mr. Amin’s Subianto. Mr. Subianto, who Islamism, checking two boxes push policy in parliament, “but had widely been expected to on a list that he hopes will at- he would be a moral voice if bring the Islamists under his tract voters. there is a policy change on own umbrella, instead an- Mr. Amin would have lim- something like alcohol,” said nounced that he would run ited powers as vice president, Achmad Sukarsono, senior an- with Sandiaga Uno, a wealthy but his election would mark a alyst at Control Risks. The private-equity investor and Ja- departure for Indonesia’s president “would try not to karta’s deputy governor. The largely secular politics, bring- confront that moral voice.” vote is in April. ing conservative Muslims to On Thursday, Mr. Amin Harry Su, head of equity the forefront of the political stressed the importance of ad- capital markets at Samuel 630 Royal Street, New Orleans, Louisiana • 888-767-9190 • [email protected] • rauantiques.com stage and advancing their in- hering to the constitution and Sekuritas Indonesia, said both terests beyond minor parties a state ideology advocating picks had surprised the mar- Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry. and the advisory roles in past tolerance and pluralism. “We ket. “Most important for the Backed by our unprecedented 125% Guarantee, we stand behind each and every piece. administrations. have to keep the country market is that the race be ami- Analysts said he would play peaceful and safe,’’ he told a cable,” he said. a role in pushing social poli- news conference. —I Made Sentana cies to the right, such as tight- Indonesia’s economy has contributed to this article. A6 | Saturday/Sunday, August 11 - 12, 2018 ******** THE WALL STREET JOURNAL. WORLD NEWS Turkish Turmoil Tied to Pastor’s Fate BY DION NISSENBAUM zen, Ebru Ozkan, these people said. Ms. Ozkan was deported WASHINGTON—Turkey’s to Turkey the next day. economic woes have become Turkish officials denied inextricably entangled with that Mr. Erdogan had asked the fate of one man: Andrew Mr. Trump for help with Is- Brunson, an American pastor rael. whose prolonged detention in Turkish officials expected Turkey on espionage charges the Trump administration to has become a top concern for send Mehmet Atilla, a Turkish President Trump. banker serving a 32-month Months of fruitless negotia- prison term for evading U.S. tions over Mr. Brunson re- sanctions against Iran, back to cently compelled the Trump Turkey to complete his sen- administration to develop op- tence, according to people fa- tions for turning the screws miliar with the talks. on Turkey, an approach offi- Turkey also expected the cials dubbed “a bullet a day” U.S. State Department to re- until Mr. Brunson was freed, quest leniency from the Trea- according to people familiar sury Department in imposing with the discussions. a potentially crippling fine on U.S. officials have repeat- Halkbank, the Turkish bank edly made it clear to their ensnared in the sanctions eva- Turkish counterparts that the sion case, the people said. way to contain the damage—to Chances of a U.S.-Turkey Turkey’s economy and to U.S.- agreement fell apart again Turkish relations—is to free when Turkey sought broader Mr. Brunson without delay. assurances that the U.S. would But it remains unclear how halt any further investigation the two sides can resolve the of Halkbank, where Mr. Atilla standoff. Some U.S. officials worked. The Trump adminis- say that while heightened tar- tration balked. iffs imposed Friday aren’t di- Later in July, when Mr. rectly tied to the pastor’s fate, Brunson was sent back to they want to use Turkey’s eco- prison after his hearing, Mr. nomic crisis to keep up the Trump blasted the decision on pressure. Twitter as a “total disgrace.” “Turkey has little to gain On July 25, Turkey freed from continuing to hold Pastor Mr. Brunson and placed him Brunson—and much to lose,” a under house arrest at his spokesman for the White home in the port city of Izmir. House National Security Coun- That only made things worse.

cil said Friday. MEHMET ZDOGRU/DEPOU.S. PHOTOS/ZUMA PRESS officials were again upset Mr. Brunson was detained Andrew Brunson, a U.S. pastor, was detained in Turkey in 2016 as part of a government crackdown in the wake of a failed coup. that he wasn’t sent home by Turkish police in October “That was the straw that 2016 as part of a sweeping broke the camel’s back,” said crackdown following a failed Sticking Points operation in Turkey that under- whom Turkey has accused of violating U.S. sanctions against Soner Cagaptay, director of military coup that July. The mined U.S.-led efforts to fight orchestrating the failed July Iran. A witness in the case was the Turkish Research Project 50-year-old North Carolina na- Between Allies Islamic State. Turkey and the 2016 coup. Mr. Gulen lives a re- Reza Zarrab, an ally of Mr. Er- at the Washington Institute tive was charged with sup- U.S. have worked out an uneasy clusive life on a Pennsylvania dogan who was arrested in for Near East Policy. “It went porting two terrorist groups in alliance in Syria. compound. After the failed 2016 when he flew to the U.S. from being a bureaucratic cri- Turkey, one accused of orches- Besides the case of Andrew coup, Turkish President Recep Mr. Zarrab agreed to cooperate sis to being a presidential trating the coup and another Brunson, an American pastor INCIRLIK Tayyip Erdogan and Turkish with prosecutors and helped one.” led by Kurdish separatists bat- accused of espionage by Ankara, The U.S. military and its leaders demanded the U.S. put Mr. Atilla behind bars. The Mr. Trump warned Turkey tling the Turkish military. here is a look at key issues di- NATO allies use Turkey’s Incirlik send Mr. Gulen back to Turkey U.S. and Turkey have been in that day he would respond. U.S. officials denounced the viding Turkey and the U.S. Air Base in southern Turkey to to face charges that he orga- prolonged talks over a fine “The United States will im- charges as a sham, and ana- carry out airstrikes against Is- nized the failed putsch from against Halkbank, where Mr. pose large sanctions on Tur- lysts say Turkish authorities SYRIA lamic State. The base has been afar. Mr. Gulen has denied the Atilla worked, but the talks key for their long time detain- have produced thin evidence Turkey has repeatedly central to the U.S.-led effort to charges, and the U.S. has re- have stalled. ment of Pastor Andrew to back up the accusations. clashed with the U.S. over its defeat the militant group, and peatedly rebuffed Turkey’s re- Brunson, a great Christian, Mr. Brunson’s freedom be- policy in Syria, where the Amer- securing approval from Ankara quest. ERDOGAN’S BODYGUARDS family man and wonderful hu- came a top priority for Chris- ican military works hand-in- to use Incirlik in 2015 was a When Mr. Erdogan came to man being,” Mr. Trump said in tian evangelicals in the U.S., a hand with Kurdish militants difficult negotiation. Turkish na- HALKBANK Washington last year, he was a tweet that day. “This inno- key support bloc for the presi- that Ankara considers terrorists. tionalists have long pushed Mr. The U.S. and Turkey are at met by protesters. During the cent man of faith should be re- dent and Vice President Mike Early in his tenure, President Erdogan to kick the U.S. out. odds over American investiga- protest, members of Mr. Erdo- leased immediately!” Pence. His cause also has at- Trump angered Turkey by ap- tions into the Turkish banking gan’s security detail were ac- Administration officials of- tracted attention in Congress. proving plans to arm the Syrian FETHULLAH GULEN system. One Turkish banker, cused of beating demonstra- fered no objections last month Jay Sekulow, one of Mr. Kurdish forces. Turkey re- The U.S. is home to Fethul- Mehmet Atilla, is serving a tors. when Congress moved to block Trump’s top attorneys, repre- sponded by launching a military lah Gulen, a Turkish cleric prison sentence in the U.S. for —Dion Nissenbaum plans to sell Turkey up to 100 sents Mr. Brunson. On Friday, of America’s advanced F-35 jet he expressed hope while serv- fighter. ing as guest host of Sean Han- demands and said Ankara has Turkey know that prosecutors nage, aiding terrorist groups gan asked for Mr. Trump’s Last week, the Trump ad- nity’s radio show that the U.S. failed to provide evidence to had dropped charges filed and trying to convert Muslims. help in securing the release of ministration accused Turkey’s and Turkey were “getting support its request. But Mr. against 11 of 15 bodyguards After months of talks, U.S. a Turkish citizen who had justice and interior ministers close to a resolution.” Brunson’s case brought sim- working for Mr. Erdogan who officials thought they had been held by Israel for a of human-rights abuses and Relations between the two mering tensions to a boil. had been accused of beating reached an understanding month after being accused of imposed economic sanctions countries have been strained Initially, the Trump admin- protesters when the Turkish with Turkey to free Mr. trying to funnel money to on both men, sending Turkey’s for a while by Turkey’s de- istration offered Turkey incen- president came to Washington Brunson last month when he Hamas, the Islamist Palestin- lira plunging. mand that the U.S. deport tives. The White House con- last year. appeared in a Turkish court. ian militant group, according On Friday, Mr. Trump an- Fethullah Gulen, the reclusive vinced U.S. lawmakers to The efforts produced no As Mr. Brunson’s hearing to people familiar with the nounced plans to heighten tar- Turkish cleric living in Penn- shelve a plan earlier this year breakthroughs. Turkey held approached, Mr. Trump met matter. iffs on Turkey while Turkish sylvania whom Mr. Erdogan that would have imposed sanc- Mr. Brunson without charges Mr. Erdogan in Brussels at the On July 14, Mr. Trump Finance Minister Berat Alba- has accused of ordering the tions on Turkey for holding until March, when prosecutors North Atlantic Treaty Organi- called Israeli Prime Minister yark, Mr. Erdogan’s son-in-law, failed coup. U.S. officials have Mr. Brunson. filed a 62-page indictment that zation summit. Benjamin Netanyahu to ask was unveiling a new economic repeatedly rebuffed Turkey’s The administration also let accused the pastor of espio- In private talks, Mr. Erdo- him to free the Turkish citi- program.

U.S. Turns Fallout Performance of the Turkish lira and the euro against the dollar Up Heat 0% Euro On Turkey –5 ContinuedfromPageOne Turkey’s woes hit shares in Spanish, Italian and French banks with large exposure to the Turkish economy. –10 The lira’s rough ride was a far cry from Mr. Erdogan’s promise that the near-absolute executive powers he gained Turkish lira –15 upon winning re-election under an amended constitution 5 p.m. ET midnight 6 a.m. noon Thursday Friday in June would allow him to fix MUSTAFA ALKAC/DEPO PHOTOS/ZUMA PRESS Turkey’s economic challenges. Economic plans released by Finance Minister Berat Albayrak on Friday failed to ease investors’ concerns. Source: FactSet THE WALL STREET JOURNAL. The soured relationship between Messrs. Erdogan and The chairman of Istanbul’s A Turkish official said the bank in peace.” from other emerging-market fell 1.5% and hit a two-year low. Trump has only exposed the Chamber of Industry, Erdal government had no plan to But delivering a speech countries and push the dollar In the U.S., Citigroup Inc. economic vulnerabilities that Bahcivan, sounded the alarm seek IMF assistance. from a small town in the Black even higher, while stock inves- dropped 2.7% and the KBW have built up under his leader- Friday, saying the falling lira Investors are monitoring Sea province—his second tele- tors are weighing the risk of a Nasdaq Bank Index, which ship. was threatening businesses as what the Turkish government vised address of the day—Mr. Turkish economic rout on the tracks large U.S. commercial Despite accelerating infla- well as Turkey’s financial sys- will do to stem the rout, but Erdogan struck a defiant tone. banking systems of nearby banks, slid 1.3%. tion, which hit 16% last month, tem. “Measures to protect the plans disclosed Friday by Fi- “Despite all the attacks countries. Charlie Robertson, global Turkey’s central bank has kept real economy must be put in nance Minister Berat Albay- against our country, we will European banking shares chief economist at Renais- its main lending rate steady place urgently,” he said Friday. rak—Mr. Erdogan’s son-in- continue to grow in the second dropped after it emerged that sance Capital, said that the since the election, fueling in- Turkish sovereign bonds law—failed to ease concerns. quarter and we will end 2018 the European Central Bank was longer-term “contagion effect” vestor concern that it lacked declined in price, with yields with record economic growth,” examining the banks’ exposure would be limited because Tur- the necessary independence on 10-year debt exceeding 20% he told supporters in Gumush- to Turkey. Spain’s BBVA SA fell key has a small presence in from the government to fulfill on Friday, the highest yield Investors fear firms ane. “Those who think they 5.2%, France’s BNP Paribas SA the widely tracked MSCI its mandate. since 2008 and up from can bring us to our knees with dropped 3%, and Italy’s Uni- Emerging Markets index, so Analysts and investors in- roughly 12% at the start of will struggle to pay economic manipulation don’t Credit SpA slid 4.7%. investors exiting Turkey won’t creasingly fear that Turkish May. downadebtloadof know this nation.” During the eurozone’s sov- be forced to sell assets in businesses will struggle to pay Some analysts predicted the The immediate impact of a ereign-debt crisis between other developing nations. down a debt load exceeding country would have no choice over $300 billion. weaker Turkish economy on 2010 and 2015, concerns over Money managers also said $300 billion because the bulk but to resort to stringent mea- the global economy is ex- the financial frailty of Greece Friday’s moves were accentu- of it isn’t backed by a steady sures such as capital controls pected to be relatively small. hit markets world-wide. A lim- ated by thin trading. The dif- revenue stream. or seeking outside help from Carsten Hesse, economist at ited depreciation of China’s ferences between quoted Turkey’s external debt the IMF, though such aid would Opposition leader Muhar- German bank Berenberg, said currency in 2015 also sparked prices to buy and sell lira was ranks among the largest come with strings attached. rem Ince, who finished second that even a 20% fall in euro- stock-market selloffs. “wide enough to park a bus,” among developing economies “I think they’re going to in the June presidential elec- zone exports to Turkey would Some other emerging-mar- said Mr. McNamara, meaning as a share of annual output, need the IMF, and the sooner tion, urged Mr. Erdogan to subtract only 0.1 percentage ket currencies also weakened, that a $10 million sale was and its foreign-reserve pot is thebetter,”saidPaulMcNa- change course. “Sack all your point from the bloc’s growth. with the South African rand enough to move the currency a among the smallest, data from mara, investment director for economy advisers starting Some fund managers are and the Hungarian forint fall- full percentage point. the World Bank and the Inter- emerging-market debt at GAM with your son-in-law,” he said concerned that fears about ing about 2.6% and 1.7%, re- —Yeliz Candemir national Monetary Fund show. International Management. Friday, and “leave the central Turkey will trigger outflows spectively. The Russian ruble contributed to this article. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | A7 WORLD NEWS Probe Finds Coal, Iron Slipped Past U.N. Sanctions

BY ANDREW JEONG tight. Aerial surveillance and satellite imagery have found DAEJEON, South Korea— North Korean vessels receiving Three South Koreans illegally oil via ship-to-ship transfers imported North Korean coal on the high seas, while ships and iron via Russia in viola- believed to be aiding North tion of sanctions, South Ko- Korea have been seen deliver- rean customs officials said, ex- ing coal to ports in Russia and posing a crack in the U.S.-led Vietnam. campaign to cut off trade with Friday’s announcement the Pyongyang regime. came after a 10-month investi- Using forged customs docu- gation by South Korean au- ments and facilitating pay- thorities that began when they ments through a shell com- received what a senior cus- pany in Hong Kong, the toms official said was U.S. in- individuals brought in from telligence information. North Korea over 35,000 tons The coal and iron were de- of coal and pig iron valued at livered through seven ship- almost $6 million from April ments on vessels that now to October last year, South Ko- bear the flags of North Korea, rean customs authorities told Belize, Kiribati and Hong reporters Friday. Kong, according to ship-track- KOREA NEWS SERVICE/ASSOCIATED PRESS ing website MarineTraffic. North Korean leader Kim Jong Un, right, and the Hwasong-15 intercontinental ballistic missile, shown in 2017. The coal was loaded at the North Korean ports of NorthKoreancoal Songlim, Wonsan, Chongjin was said to be and Daean, and shipped to the shipped via Russia Russian ports of Nakhodka, Kim’s ICBM Progress Slows Vladivostok and Kholmsk, in- to South Korea. vestigators found. It was then BY MICHAEL R. GORDON not closed those last two fired intercontinental ballistic enough and try to use it in a shipped to five different South pieces of the kill chain,” Gen. missiles that have the range to crisis. So the Pentagon’s mis- Korean ports. North Korea’s moratorium Selva told the Air Force Asso- reach the U.S. sile-defense system needs to be Cargo bills uncovered in on missile test flights has preciation, referring to North Ko- But in carrying out those prepared to intercept it, he said. The suspects appeared to raids on the companies pro- cluded it from testing the rean leader Kim Jong Un. launches, it fired the missiles “We have to assume he have tried to profit by selling vided evidence of the ship- technology it would need to U.S. and North Korean talks on “lofted” trajectories, in might shoot one,” Gen. Selva the cheaper North Korean coal ments from North Korea to strike the U.S. with a nuclear- on eliminating North Korea’s which they reached a high alti- said. “We would have to be at much higher prices in South Russian ports, South Korean tipped ICBM, a top U.S. mili- nuclear and missile programs tude but didn’t cover a great prepared to defend. But we Korea, the officials said, with- authorities said, adding that tary officer said Friday. have been stymied, and Pyong- distance horizontally. might actually make the out identifying the companies one of the suspects later ac- While North Korea has yang has continued to produce As a consequence, those choice not to shoot because or individuals. The customs knowledged the coal and iron demonstrated that it has nu- fissile material for nuclear test flights didn’t replicate the we assert based on what we agency said it would recom- was sent on to South Korea. clear weapons and long-range weapons. flight path a missile would know about the system and its mend indicting three individu- Some of the imported coal missiles, it hasn’t shown that But Gen. Selva’s comments take if it was fired at the U.S. trajectory that it’s not going als and their companies—two was bought by Korea South- it has mastered the compli- underscore that some of the On such a trajectory, a re-en- to hit anything.” coal importers and one trans- East Power Co., a subsidiary of cated steps of delivering a gestures North Korea has try vehicle would go faster Joseph Bermudez, a mili- portation firm—on charges of the country’s largest utility, warhead to the U.S. mainland, made—specifically, suspending and would be subject to higher tary analyst for 38 North, a smuggling, illicit importation customs officials said. Author- said Air Force Gen. Paul Selva, nuclear and missile tests—have temperatures, experts say. website on North Korean af- and forgery. ities said they wouldn’t press the vice chairman of the Joint security benefits for the U.S. North Korea also hasn’t fairs, said Pyongyang already As North Korea’s expanding charges on the company, as it Chiefs of Staff. “We have not seen a dem- conducted a missile test flight has reaped political gains from nuclear program heightened appears the government-run To do that, Pyongyang must onstration of a reliable R.V.,” since November. its ICBM program despite its tensions last year, the U.S. led firm bought the North Korean develop and test a reliable tar- said Gen. Selva, referring to “It has had an impact,” Gen. limitations. a global push to isolate the re- coal unwittingly. geting system and a survivable the re-entry vehicle. “And we Selva said of the moratorium. “North Korea’s ballistic- gime through economic sanc- The episode shows how re-entry vehicle, the portion of have not seen a demonstration “But we don’t know what im- missile program has already tions intended to cut off its North Korea has sought to a missile that contains a nu- of a reliable arming, targeting pact it’s had on his logic,” he enabled it to achieve its stra- trade in raw materials such as evade sanctions through clear warhead and which is and fusing system that would added, referring to Mr. Kim. tegic goal of being perceived coal, oil, iron and lead. transshipments of raw materi- designed to withstand the allow the system to survive Even though North Korea as an existential threat to the But the sanctions imposed als that could provide a much- stress of re-entering the atmo- and actually detonate when he hasn’t fully developed its ICBM U.S.,” he said. “North Korea is by the United Nations Security needed financial lifeline to the sphere. wants it to detonate.” capabilities, Gen. Selva said, it at the center of the interna- Council haven’t been water- regime of leader Kim Jong Un. “Our assessment is he has North Korea last year test may think the system is good tional stage.”

Romania Protesters Call on Government to Resign VADIM GHIRDA/ASSOCIATED PRESS Tens of thousands of Romanians flocked to an antigovernment protest organized by expatriates Friday, urging the left-wing government to resign and call an early election. Those supporting the demonstration in Bucharest said they were angry at how Romania is being governed. Critics say the country has lost ground in fighting corruption since the ruling Social Democratic Party assumed power in 2016. WORLDWATCH

CANADA SYRIA ZIMBABWE Job Creation Surges, At Least 22 Killed in Opposition Contests Last week or last Beating Estimates Airstrikes, Group Says Vote Results in Court Job creation soared above ex- Government airstrikes on op- Zimbabwe’s main opposition year, ﬁnd it here. pectations in July as large gains position-held territory in north- party on Friday filed a legal chal- in part-time, public-sector posi- west Syria killed at least 22 peo- lenge to the results of the coun- tions helped nudge down the ple, a monitoring group said, as try’s first election without Rob- unemployment rate. the U.N.’s children’s agency ert Mugabe on the ballot, The Canadian economy added warned a new battle in the war- alleging “gross mathematical er- a net 54,100 jobs in July on a torn country could affect the rors” and calling for a fresh vote Buy your favorite issues at the WSJ Print Shop seasonally adjusted basis, Statis- lives of one million children. or a declaration that their candi- tics Canada said. Market expec- Government forces unleashed date Nelson Chamisa was the tations were for a gain of a wave of airstrikes across Idlib, winner. We sell individual back issues of our print products, including WSJ, WSJ. 17,000 jobs, according to econo- Aleppo and Hama provinces after The court now has 14 days to mists at Royal Bank of Canada. days of building up ground forces rule, and Justice Minister Zi- Magazine, Barron’s, Penta and The Future of Everything. We also offer Canada’s jobless rate, mean- at the edge of opposition terri- yambi Ziyambi said the inaugu- framed front pages of historically signiﬁcant covers of the Journal—a while, was 5.8% in July, down tory, the Syrian Observatory for ration, once planned for Sunday perfect memento or gift. from 6% in the previous month. Human Rights said. The group for President Emmerson Mnan- Market expectations were for an said 14 people were killed in gagwa, is “on hold’ until then. unemployment rate of 5.9%. Aleppo province and eight others Lawyers for the Movement Explore now: WSJShop.com Friday’s report added to expec- in the province of Idlib. for Democratic Change party ar- tations that the Bank of Canada Fears have been building for rived at court less than an hour will raise its key interest rate days of a government offensive before the deadline to submit again before the end of this year. against the last major bastion for papers. Several economists said the the opposition, centered in the Idlib “We have a good case and surge in part-time positions under- province and along the edges of cause!” Mr. Chamisa said on mined the strength of the overall the Aleppo and Hama provinces. Twitter. gains. While the jobs numbers “will U.N. agencies are warning a The Zimbabwe Electoral Com- keep markets guessing” between a campaign to capture Idlib would mission has said Mr. Mnan- September and October rate in- aggravate an already dire hu- gagwa and the ruling ZANU-PF crease, CIBC World Markets econo- manitarian situation. Food, water party won the July 30 election, mist Avery Shenfeld said, “there and medicine are already in with the president receiving are lots of reasons to question just short supply in the largely rural 50.8% of the vote and Mr. how good the data really are.” Idlib province. Chamisa receiving 44.3%. ©2018DowJones&Co.,Inc.Allrightsreserved.3DJ6430 —Kim Mackrael —Associated Press —Associated Press A8 | Saturday/Sunday, August 11 - 12, 2018 ******* THE WALL STREET JOURNAL. WORLD NEWS Trump Threatens Car Tariffs On Canada BY WILLIAM MAULDIN

President Trump on Friday threatened tariffs on Cana- dian-made cars if U.S. officials can’t strike a deal with the country on overhauling the North American Free Trade Agreement. In a tweet, the president also said a Nafta deal with Mexico “is coming along nicely.” Earlier Friday, U.S. officials met Mexican counterparts in Washington to resolve dis- agreements between the two countries on Nafta. The Trump administration has sought to portray Canada as dragging its feet in talks, part of what observers say is an effort to put pressure on Ottawa to make trade conces- sions. Canadian and Mexican officials and other people close to

NAIF RAHMA/REUTERS the talks say they expect se- Boys in northern Yemen inspected graves prepared for 29 children who were killed Thursday in a Saudi coalition airstrike that hit a school bus and a market. nior Canadian officials to return to the negotiating table as soon as the U.S. resolves issues on auto trade and labor standards with Mexico. Calls Grow for YemenAttack Probe While he praised Mexico’s president-elect, Andrés Ma- BY ASA FITCH nation of the incident, according The Saudi-led coalition, some kind of aid, the U.N. said. Their loss is unimaginable.” nuel López Obrador, in Fri- to an Associated Press report. which is fighting in Yemen to The growing civilian toll in A statement carried by the day’s tweet, Mr. Trump went Calls grew louder for an in- Alistair Burt, the U.K.’s min- oust the Iran-supported Yemen has led to increased Saudi Press Agency said the on to criticize Canada, saying vestigation into airstrikes in ister of state for the Middle Houthi rebels who control the criticism abroad—including coalition would “exert all efits “Tariffs and Trade Barriers Yemen that killed at least 29 East and North Africa, tweeted capital, said the strikes had from within the U.S., which forts to preserve civilians” as are far too high” and “Will tax children, as the United Nations his concern about the attack been referred for investigation backs the Saudi coalition with it always has, citing an un- cars if we can’t make a deal!” and Western officials weighed and urged a transparent inves- to its Joint Incidents Assess- logistical and intelligence sup- named senior coalition official. Applying special tariffs to their response to the attack by tigation. The U.K., he said, “calls ment Team, according to the port. The U.K. supplies weap- The coalition had earlier cars made in Canada would a Saudi-led military coalition. on all parties to prevent civilian official Saudi Press Agency. ons to the coalition. described the strikes as at- end decades of preferential U.N. Secretary-General casualties and to cooperate The Saudi coalition created Several members of Con- tempts to target Houthi mili- treatment between the two António Guterres urged an in- with [the] U.N. to reach a last- and oversees that body, and gress have raised concern tants responsible for launch- neighbors through deals that dependent and prompt investi- ing political solution in Yemen.” its conclusions aren’t consid- about new weapons sales to ing a ballistic missile at predated Nafta. gation into the Thursday at- The Saada attack was one ered independent. Saudi Arabia in light of civilian southern Saudi Arabia on In response to the presi- tack, which hit a market and a of the deadliest single inci- Some 6,592 Yemeni civilians deaths caused by airstrikes. Wednesday evening. dent’s tweet, a spokesman for school bus in the northern Ye- dents for children during Ye- have been killed since the war The killing of dozens of chil- Saudi forces intercepted the Canadian Foreign Minister men province of Saada. And he men’s war and has put Saudi began, mostly by airstrikes, dren under age 15 has added missile near the city of Jizan, Chrystia Freeland said Friday asked for renewed focus on Arabia and its allies, which in- according to a statement Fri- indignation to the misery. “This but falling debris killed one Ottawa is encouraged by the talks, set for September in Ge- clude the United Arab Emir- day from the U.N. High Com- is horrible and completely un- person and wounded 11 more. progress being made by the neva, to end Yemen’s more ates and Bahrain, in an un- missioner for Human Rights. acceptable,” Lise Grande, the The Houthis fired two more U.S. and Mexico on auto is- than three-year conflict. comfortable spotlight. Yemen has become the world’s U.N.’s humanitarian coordina- missiles at Jizan that Saudi sues. The U.N. Security Council Local health authorities put worst humanitarian crisis, tor in Yemen, said in a state- Arabia intercepted on Friday, a “It’s the only way we will also called Friday for a trans- the total death toll at 50, with with more than three-quarters ment Friday. “We feel deeply coalition spokesman said, ac- get to a deal,” the spokesman parent and independent exami- 77 wounded. of the population in need of for the families of the victims. cording to the SPA. said. Maximize the Impact of Your Employee Health Program

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JOËL ROBUCHON H.F. LENFEST 1945 — 2018 1930 — 2018 French Chef Exalted He Made Fortune on Cable, Unpretentious Cooking Then Gave It Away oël Robuchon, the chef who mother, of their grandmother.” held more Michelin stars Mr. Robuchon’s kitchens were J than any other, wanted to be intense working environments, judged above all by his take on a punctuated by his legendary out- BY JAMES R. HAGERTY tions, owned by Walter Annenberg, humble staple of French cooking, bursts at staff, and in them he as a staff lawyer. Triangle owned mashed potatoes. trained a generation of famous endy Kopp was riding a TV and radio stations, the Philadel- Mr. Robuchon, with his love of chefs, including Gordon Ramsay, train to New York one phia Inquirer and Daily News, and the foods of his working-class Éric Ripert, Michael Caines and W winter morning 17 years TV Guide and Seventeen magazines. French childhood, led a revolu- Tom Aikens. On one occasion, by ago when a chatty older man sat Mr. Lenfest took charge of Sev- tion in fine dining, championing his own admission, Mr. Robuchon next to her. She tried to cut the enteen in 1970. The magazine’s dishes that appeared simple but threw a plate at Mr. Ramsay, after conversation short and get back to wholesome beauty tips had lost were the product of exacting, the British chef failed to execute work on her laptop. He persisted. relevance in the hippie era, and complex recipes. He exported his a dish of langoustine ravioli cor- She finally told him all about the Seventeen delved into edgier top- philosophy of accessible French rectly. charity she founded, Teach for ics, including abortion. cuisine to the world with an em- “Perfection does not exist,” Mr. America, which sends teachers to Cable TV was in its infancy and pire of restaurants spanning Eu- Robuchon said in a 2016 inter- work in low-income areas. its prospects clouded, but Mr. Len- rope, North America and Asia. view. “One can always do better.” Her seatmate, H.F. “Gerry” Len- fest was tempted when Mr. Annen- “Mashed potatoes made my Mr. Robuchon died Monday at fest, ended up donating more than berg decided to sell a tiny cable reputation. I owe them every- a hospital in Geneva. He was 73. $14 million to Teach for America. business in Lebanon, Pa. “I always thing,” he said in 1994. “Like the The cause of death was pancre- Giving away money became Mr. wanted to do my own thing and I madeleine of Proust, everyone re- atic cancer, a spokeswoman said. Lenfest’s mission after he sold the think I would have bought a Chi- members the mash of their —Josh Jacobs cable-TV company Lenfest Com- nese laundry if it’d come up,” he munications in 2000. He and his said in an oral history. He bought wife, Marguerite, preferred to give the business for about $2.3 million most of their wealth away in their Lenfest found people in coach in 1974. KENNETH HENRY RAVIZZA lifetimes rather than creating a more open to conversation. Initially, he ran the business 1948 — 2018 perpetual foundation whose trust- from his home, with help from his ees might stray from their vision. arold FitzGerald Lenfest, wife. It spread to include about 1.3 So far, their gifts total more than known as Gerry, was born million customers in Pennsylvania, $1.2 billion. H along with a twin sister New Jersey and Delaware before it Sports Shrink Counseled Mr. Lenfest, who died Aug. 5 at May 29, 1930, in Jacksonville, Fla. was acquired by Comcast Corp. in age 88, relied on his instincts His father, who sold marine en- 2000 for about $5.6 billion. about people in making gifts. His gines, moved the family to Scars- Among institutions that re- Athletes and Executives wife was more deliberative. She dale, N.Y., and Gerry split his child- ceived gifts from the Lenfests are kept a note on the refrigerator re- hood between that posh suburb Columbia University, the Philadel- minding him to remember two and a farm his father bought in phia Museum of Art, the Museum en Ravizza, a sports psy- Soon he was counseling gym- words when people asked for Hunterdon County, N.J. Gerry of the American Revolution and chologist, told baseball nasts, baseball players and other money: “no” and “why.” proved an ace marketer of Girl the Curtis Institute of Music. K players never to admit athletes. In 2014, Mr. Lenfest acquired Scout cookies when asked to assist Mr. Lenfest is survived by his they were in a slump. Instead, he His message also resonated off the ailing publisher of the Phila- his shy sister. wife, two sisters, a brother, three advised, say you’re due for a hit. the field. He coached heart sur- delphia Inquirer, Philadelphia After his mother died when he children and four grandchildren. “Attitude is a decision,” said geons, musicians, military officers Daily News and Philly.com for was 13, he started skipping school. After becoming billionaires, Mr. Dr. Ravizza, who taught kinesiol- and corporate executives. about $88 million. Two years His father sent him to Mercersburg and Mrs. Lenfest continued living ogy at California State University, He began working with the later he donated that company to Academy, a boarding school he most of the year in a three-bed- Fullerton, and served as a think- California Angels baseball team in a nonprofit, now known as the credited with shaping him up. room house in Huntingdon Valley, ing coach to the Chicago Cubs 1985 and in the past several years Lenfest Institute for Journalism, He studied economics at Wash- Pa., that they bought in 1966 for and other teams in sports ranging worked for the Cubs. He once charged with preserving quality ington and Lee University, where $35,000. At one point, Mr. Lenfest from rugby to water polo. gave college baseball players a journalism in Philadelphia and he graduated in 1953, and served later told the Inquirer, he had an His own days as an athlete miniature toilet so they could testing ideas that might sustain as an officer in the U.S. Navy. He architect design a much grander ended when he blew out a knee flush negative thoughts. fact-based news reporting else- earned a degree at Columbia Law home. A crew dug a hole for the playing college football. He Dr. Ravizza died July 8 after a where. School in 1958. Before and during basement. Then Mr. Lenfest had earned a doctoral degree in kine- heart attack. He was 70. “I can’t think of any cause that his college years, he worked as a second thoughts about the need siology at the University of Cubs Manager Joe Maddon re- we support that’s more important farm hand in Iowa, an oil-field for so much space. “You know Southern California in 1973 and called one of Dr. Ravizza’s mottos: than the support of the newspa- roughneck in North Dakota and a what?” he told the architect. “Fill became a professor. After watch- “It’s your choice to approach your pers,” Mr. Lenfest said in 2014. mate on an oil tanker. up the hole.” ing gymnasts work out at Fuller- day with a positive vibe or a neg- He rode city buses and flew After law school, he began a ca- ton, he mentioned to their coach ative vibe.” coach. It wasn’t only about being reer at the law firm Davis Polk. In Read a collection of in-depth what he saw as insufficient focus. —James R. Hagerty frugal, said his son Brook. Mr. 1965, he joined Triangle Publica- profiles at WSJ.com/Obituaries

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600-member-strong Facebook insufficient to notify them all.” eight months ago, and three group dubbed Rat-Prochement: In the 20th century, scien- others now sit in her kitchen Rats Have Save the Rats that takes in tists concluded rats carrying freezer, awaiting interment. homeless rats. Ms. Duperret fleas transmitted the plague in Most rats saved by Rat- lives with three—Mousty, Léon the Middle Ages. Though some Prochement members were Defenders and Milou—she says were “res- scientists now doubt rats were raised as pets and then aban- cued” from the streets. to blame, the stigma has been doned on the streets, the group Ms. Duperret and her co- difficult to shake. says. Some are also albino rats In France horts will need to overcome This year, negative media that have escaped or been re- centuries of European conflict coverage has taken its toll. In leased from laboratories. ContinuedfromPageOne between human and rat. In the January, a Paris trash collector The 2007 Walt Disney ani- almost 26,000 signatures. Middle Ages, people were help- video recorded hundreds of rats mated film “Ratatouille,” the “We are very disturbed,” says less to stop the creatures from swarming in a large garbage story of a country rat who be- Jo Benchetrit, a retired psychol- invading pantries and destroy- container by the Musée d’Orsay, comes a Parisian-restaurant ogist who created the petition ing crops. Lacking effective poi- one of which leapt toward him. chef, generated a surge in chil- to save the rats. The defense of sons, authorities took to bring- “It can’t go on like this,” he dren keeping rats as pets, Ms. rights for rats is only seen as ing legal charges against rats says in the video, which went Duperret says. But months later, “abnormal,” she says, ”because for their misdeeds, according to viral after he sent it to the many children lost interest and others are able to live among “The Criminal Prosecution and French newspaper Le Parisien. members of the group mobilized the banality of such cruelty.” Capital Punishment of Animals,” “It’s a huge plague.” to take in the unwanted animals. The resistance movement is a lengthy history by E.P. Evans. Ms. Duperret and other ac- “Rats are not meant for chil-

good news for Paris’s robust rat MATTHEW DALTON/THE WALL STREET JOURNAL The rats weren’t defenseless tivists dismiss unease as a form dren,” Ms. Duperret says. “They population. There is no formal ‘We really need to find a balance to live together,’ says Claudine in such cases. When an ecclesi- of “rat phobia.” Her rats live in are very intelligent,” she added, count, a city hall official says. Duperret of the group Rat-Prochement, here with Milou. astical court in Autun, France, cages and take turns roaming referring to rats. One rat-control expert’s esti- brought charges in the 16th around her apartment. Olga Bugni-Livolsi, a 49-year- mate puts it at about four mil- along with crowds of tourists, “We don’t want to kill the en- century against a group of rats Since she took in her first old archivist, took in an injured lion, a 1.8 rat-to-human ratio. produces plenty of leftovers. Its tire rat population in Paris,” for destroying the local barley rat 11 years ago after her street rat and nursed it back to Rat population numbers ancient foundations date to the says the city-hall official. crop, a well-known lawyer daughter wanted one as a pet, health. The animal, Tina, then tend to be unreliable. The data Roman Empire, providing the “There’s no point. We just want named Bartholomew Chassenée she has saved some 25, she destroyed two cages and re- that does exist suggests the creatures extensive subterra- to control their expansion.” was appointed by the court to says. She brings them with her treated to the bathroom, where Paris infestation could rival nean living space. Sightings of rats dining on represent them. Mr. Chassenée on trips around the city and oc- it chewed a hole in the wall. that of New York City’s, which The problem, city officials garbage next to Paris’s monu- mounted a vigorous response. casionally on holidays. Tina since died, and the inci- has been estimated to be from say, is the rodents are asserting ments or darting along the “He urged, in the first place,” “I had a fantastic relation- dent hasn’t diminished her af- several hundred thousand to their place above ground en Seine are commonplace. Mr. Evans wrote, “that inas- ship with my first rat, Tycho,” fection for rats. “We’re not ask- several million. masse due to underground con- “We really need to find a much as the defendants were she says. “He died of old age.” ing people to love rats like us,” Paris offers some key ameni- struction projects, the rising of balance to live together,” says dispersed over a large tract of Sometimes Ms. Duperret has she says. “What we’re asking is ties for the rodents. It has a the Seine River and people not Claudine Duperret, a 59-year- country and dwelt in numerous difficulty finding a burial spot. for people to reduce the number dense human population that, disposing of rubbish correctly. old logistics manager who has a villages, a single summons was Socrates, a pet rat that died of rats without killing them.”

transactions are facilitated through exchanges. The Case Mt. Gox, based in Tokyo, was one of the first and largest such exchanges. It provided a Of the Lost platform to buy and sell bitcoins as well as a service to maintain users’ password-pro- Bitcoin tected digital wallets, where bitcoins are stored. In 2012, Mr. ContinuedfromPageOne Nilsson bought his first bitcoin ing of an apparent multibillion- from a friend. A year later he dollar theft and money laun- started buying the cryptocur- dering scheme at the very rency from Mt. Gox, accumulat- center of bitcoin’s world shows ing a small cache. just how dangerous its largely With a tuft of chin beard, unpoliced digital wilderness and the dark wardrobe of a can be for investors. 1990s hacker or a fan at a Rush In the nine years or so since concert, Mr. Nilsson has lived bitcoin made its debut, crypto- in Tokyo on and off for about a currency worth more than $15 decade. billion at peak prices has been Unknown to buyers at the stolen, much of it in hacks like time, Mt. Gox was headed for those that precipitated Mt. trouble. Hackers gained access Gox’s collapse. That tally to private keys in 2011 and be- doesn’t include thefts that ha- gan to steal bitcoins from on- ven’t been publicized, or cryp- line wallets—some 630,000 tocurrency used in other illegal over four years. activities, like buying stolen credit cards or paying hackers. The rip-offs represent just Tokyo meeting one of the threats now facing Mt. Gox owner Mark bitcoin, which has electrified Karpelès, a French expatriate in the financial world with its Tokyo, tried to conceal the promise of a decentralized, thefts until early 2014. Mt. Gox

anonymous payment system in- halted withdrawals and filed SHIHO FUKADA FOR THE WALL STREET JOURNAL tended to render banks obso- for bankruptcy. lete. The debacle, the biggest in Anonymity is evaporating as bitcoin’s short history, left hun- ‘It’s a bit of a sad, sordid story.’ people transact on big, central- dreds of victims. Daniel Kel- ized exchanges that collect de- man, a Brooklyn-educated law- tailed user data—and provide it yer who was living in Taiwan, Kim Nillson worked from a cramped apartment in Tokyo to trace bitcoin he lost in the Mt. Gox collapse. to government investigators. lost 44.5 bitcoins, or about Speculators have driven huge $400,000 today, and traveled to price fluctuations that make Tokyo hoping to get to the bot- confirmed account information searchers. bitcoin unviable as a currency tom of the theft. Mr. Nilsson compiled, and Wild Ride “No one knew who BTC-E and dangerous as an invest- At a bitcoin meetup in a sky- helped him develop a complete Bitcoin’s value in dollars has ﬂuctuated dramatically in the was. No one knew who the ment. scraper bar, the lawyer met Ja- list of Mt. Gox addresses. cryptocurrency’s short life. owners were. We thought it Then there is crime: With son Maurice, a floppy-haired Mr. Karpelès declined to might be in Bulgaria, or maybe little government oversight and Hawaiian. Mr. Maurice, who comment, but has previously $20,000 Cyprus,” says Tigran Gam- no way of reversing bitcoin goes by “Wiz,” passed on the denied embezzling funds from baryan, an IRS investigator transactions, thieves have de- name of a colleague, Mr. Nils- Mt. Gox. who is now lead agent on the January 2009 February August 2015 July 2017 veloped creative ways not just son, who had the programming Mr. Nilsson went through 15,000 Vinnik investigation. of breaking into exchanges, but chops to solve Mt. Gox. the remaining thousands of First bitcoins 2014 Mt. Gox founder Alexander Agents traced blockchain of using bitcoin to facilitate all “It quickly devolved to just wallets and determined that created by Mt. Gox Mark Karpeles Vinnik transactions and subpoenaed mysterious announces arrested on sorts of other schemes. Credit- being me sitting around work- while Mt. Gox should have had arrested bank records. They determined founder known insolvency embezzlement in Greece card thieves sell stolen cards ing on the technical front,” says about 900,000 bitcoins, it in- 10,000 as Satoshi charges, which that between 2013 and 2015, an for bitcoin; hackers—including Mr. Nilsson. Without money for stead had fewer than 200,000. Nakamoto he denies account linked to BTC-E and a some from North Korea—have new technology or an office, he And he saw coins went missing April 1, 2013 Russian citizen was involved in taken data for ransom to be conducted the investigation out as early as 2011. “Knowingly or cash transfers to banks in Cy- 5,000 Bitcoin hits $100 paid in bitcoin, cybersecurity of his 650-square-foot apart- not,” he wrote in a 2015 blog for ﬁrst time prus and Latvia, jurisdictions researchers say. ment. post, “Mt. Gox was technically money launderers use as a Mr. Nilsson developed a pro- insolvent since at least 2012.” waypoint to major banks on the gram to index the blockchain, Hoping to shake loose more continent. 0 True believer which allowed him to quickly information, in April 2015 he For true believers such as search each transaction’s input, published findings on a blog. 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Mr. Nilsson—a 36-year-old output and addresses. He believed someone other Source: CoinDesk THE WALL STREET JOURNAL. Sealed indictment Swede who lives and works in a Though patterns began to than Mr. Karpelès stole the bit- By the end of 2016, the pros- cramped Tokyo high-rise—it emerge, they were hard to deci- coins. “So,” the post concluded, But Messrs. Kelman and The next step was to iden- ecutors had enough to indict has been a comedown. pher because the blockchain “Who did it then?” Nilsson thought the U.S. gov- tify WME. Mr. Vinnik. They filed a sealed Mr. Nilsson and others in doesn’t identify who’s behind Soon after, he got an unex- ernment—with its broad reach That seemed tough. A crimi- federal indictment in January Japan’s enthusiastic digital-cur- each transaction. pected message. Gary Alford, and superior funding and tech- nal using different wallets for 2017 accusing Mr. Vinnik and rency community crowded into A lucky break kept him go- an agent with the U.S. Internal nology—might be able to help. each transaction and being unnamed accomplices of laun- bitcoin in a moment of post-fi- ing. Parts of Mt. Gox’s database Revenue Service, was known in Instead, “it was like a one- careful to never leave informa- dering about $4 billion via nancial-crisis optimism. leaked. Mr. Nilsson obtained crypto circles as the investiga- way street,” Mr. Kelman says. tion linking a pseudonym with BTC-E. When Mr. Vinnik took a Founded by an enigmatic private records of trades, with- tor who identified the owner of Mr. Nilsson doubled down. a real identity could be tough Greek vacation, the FBI and lo- coder—or coders—going by the drawals, deposits and users’ Silk Road, an online market- He traced the flows of coins to catch. cal police were ready. name Satoshi Nakamoto, bit- balances. place where you could buy that left Mt. Gox into other ex- WME apparently wasn’t On July 25, undercover offi- coin exists only online as a The investigation was domi- drugs and weapons with bit- changes, including one called careful. Through what Mr. Nils- cers in casual clothing encir- string of code in a digital led- nating his life. Still working his coin. It was one of the biggest- BTC-E. son calls “careless identity han- cled Mr. Vinnik on a beach and ger, called a blockchain, outside full-time day job, his nights be- ever bitcoin-related prosecu- He saw that some coins sto- dling,” there was a trail of arrested him. They seized two the mainstream financial sys- came Coke Zero-fueled sessions tions, and Mr. Alford followed len from Mt. Gox had been de- clues. laptops, two tablet computers, tem. before three glowing screens, posited into other Mt. Gox ac- First were the postings link- five cellphones and one The ledger is maintained by one with lines of code, another counts—and that one of those ing WME to specific accounts. router—possible evidence in thousands of computers with a spreadsheet to record After his bitcoin had received a cash deposit Then Mr. Nilsson found a 2012 understanding BTC-E, accord- throughout the world. Transac- key information, and a third to with a note attached that read message-board post in which ing to a Greek law-enforcement tions are publicly viewable, but write narrative notes. findings, he got an simply “WME.” an outraged “WME” claimed official, citing court filings. the people behind them aren’t. After months of work, Mr. unexpected message At that point, Mr. Nilsson another trading platform In Greek court hearings, Mr. The arrangement ensures that Nilsson had nearly two million shifted from blockchain analy- “scammed and run off with my Vinnik’s Russian lawyer denied a person can’t use the same addresses associated with Mt. from an IRS agent. sis to old-fashioned internet money.” the charges, said his client isn’t bitcoin to pay for a good or Gox—but no idea who used trawling. At the bottom of one mes- a BTC-E employee, and as- service more than once. While each address, or for what pur- Some more digging revealed sage, the other platform told serted he is fighting the U.S. bitcoins can be seen moving pose. He needed insider help. a WME who claimed to have WME where it deposited his dominance of the global finan- between “addresses” identified By then, Japanese law en- bitcoin connected to the Silk been operating currency-ex- money: An account owned by a cial system. by strings of letters and num- forcement was investigating Road investigation to some of change businesses in Moscow. “VINNIK ALEXANDER.” Mr. Nilsson remains frus- bers, the names of wallet own- Mt. Gox. Its chief, Mr. Karpelès, the same places where Mr. Nils- “Hello, I am engaged in ex- Mr. Nilsson passed the trated. He expected bitcoin to ers remain out of sight. was laying low. Mr. Kelman had son was searching for his lost changes for more than 10 years, name—with a typo—to the IRS let him avoid governments, fi- In theory, the process is de- reached out over a bitcoin currency. now I started working with bit- agent, Mr. Alford. nancial institutions and crooks. centralized. There is no need channel on the messaging pro- It was an uncomfortable mo- coins. I can exchange them for What he didn’t know at the Instead he and his handful of for a trusted intermediary, such gram Internet Relay Chat that ment. Mr. Nilsson got into bit- anything,” WME wrote in 2011 time was that BTC-E was a tar- bitcoins are embroiled with all as a bank or credit-card com- he knew Mr. Karpelès fre- coin in part to get away from on the Bitcointalk.org board. get for government investiga- three. “It’s a bit of a sad, sordid pany, to ensure the validity of quented. regulators. “There is a stigma Drilling deeper, Mr. Nilsson tors an ocean away. story,” he says. exchanges; the blockchain does Eager to clear his name, Mr. about the IRS, obviously, in the found WME wallets were con- BTC-E was the exchange of —Nektaria Stamouli in that. Karpelès agreed to meet with kind of circles I move in,” he nected to crypto exchange choice for criminals world- Athens contributed to this In practice, many bitcoin Messrs. Nilsson and Kelman. He says. BTC-E. wide, say cybersecurity re- article. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | A11 OPINION Arizona Republicans Brace for a Storm

By Allysia Finley first encounter with Mr. Trump in the support of the teachers union the Oval Office. After she intro- by promising to give schools more Phoenix duced herself to the president as money and eliminate the tax-credit nyone who’s lived in Ari- the only female veteran in the GOP scholarship program. zona is familiar with the House conference, he bombarded What else is in play? The No- summer monsoons that her with questions about jet fight- vember ballot will include a refer- A sweep across the desert, ers, including the plane she had endum to block legislation expand- bringing a tsunami of flown, the A-10 Warthog. ing education savings accounts. sand. The rain can come on sud- “I decided to talk to him like a Liberals have submitted signatures denly but is usually presaged by fighter pilot, not like a politician. for an initiative to raise income hurricane-force gusts carrying dark, And I said, ‘It is a bad-ass airplane taxes on high earners. Democrats thick plumes. Some people say they with a big gun on it.’ Sorry I am are also hoping to flip the state can sense a storm coming by the swearing,” she says with a sly Senate, where Republicans hold a electricity in the air. smile. “Then the president asked, 17-13 majority. For Republicans, this year’s ‘We’re still flying it right?’ ‘Well, Mr. Ducey could become a vic- midterm elections have that sort the last administration tried to tim of his own political success. of ominous feel. Liberal intensity put it in the boneyard,’ ” she told Arizona has become awash with has been building across the coun- him. “And then I just decided to newcomers, including many Cali- try, fueled by revulsion at Donald speak boldly: ‘But you’re going to fornia retirees, yuppies and His- Trump. Longtime GOP redoubts have to pry it out of my cold, dead panics who can’t afford the pro- are suddenly up for grabs in spe- hands.’ ” gressive paradise next door. Thus cial elections. Republicans this For a moment, she says, Mr. the Phoenix suburbs, longtime week appear to have eked out a Trump was speechless: “And then GOP bastions, are becoming less victory in Ohio’s 12th Congressio- he looked back and said, ‘You just conservative. Consider the Eighth nal District, which the GOP had saved it.’ ” Air Force Secretary Congressional District, northwest won in 2016 by more than 35 Heather Wilson affirmed at a con- of the city. In 2016, GOP incum- points. gressional hearing that she ex- bent Trent Franks won re-election Arizona, the land of Barry Gold- pects A-10s will continue to be by 37 points. In a May special water, has long leaned right. Be- flown “well into the 2030s.” election after Mr. Franks resigned,

tween 1952 and 2016, Democrats But even with the A-10 saved, MATT YORK/ASSOCIATED PRESS Republican Debbie Lesko won the carried the state in only one presi- Ms. McSally remains worried. Pac- Rep. Martha McSally is the front-runner for the Republican Senate nomination. seat by 5 points. dential election, in 1996. Today ing across a makeshift stage, she The governor plays down the Republicans control the governor- laments that the Air Force is short by her opponent, former state Sen. Mr. Ducey is a plain-vanilla Re- prospect of a coming Democratic ship, both chambers of the Legis- 2,000 pilots and that defense-bud- Kelli Ward, who has called Ms. Mc- publican, unlikely to rouse or re- sweep. “When you look at the lature, both U.S. Senate seats and get cuts have left those who re- Sally a “Republican in Name Only.” pulse many voters. A native of To- numbers in the last election, Ari- five of nine House seats. But de- main insufficiently equipped and In reply, Ms. McSally emphasizes ledo, Ohio, he moved to the Grand zona has remained red,” he tells mographic changes are pulling the trained: “Our pilots are not flying. her sponsorship of a stillborn Canyon State during the early me. “I do think we’ve had a lot of electorate leftward, even as Mr. They don’t have the parts. They House bill that would have sharply 1980s to attend Arizona State Uni- growth—a lot of people have Trump is polarizing voters. don’t have the personnel. Pilots limited family-based immigration, versity. After working his way moved here from California. Per- want to fly! We have gone from increased interior enforcement, through college at Anheuser-Busch haps some of them have forgotten around 134 squadrons from and appropriated $30 billion for a and doing a stint at Procter & why they left California.” He adds: Changing demographics around Desert Storm to 55 right border wall with Mexico. Gamble, he built Cold Stone “I think we’ve also had growth in now.” “We are a border state,” she Creamery into a national ice- our Hispanic population, and these and dismay with Trump Later, she rattles off some of the tells me after a tour of Geco’s cream franchise. are rooms where I’m very com- give Democrats a chance House GOP’s accomplishments: en- plant. “We are ground zero here For almost four years now, the fortable to go in and make the acting tax reform, expanding health for the cartel activities that are governor has applied a managerial case about economic growth and for governor and Senate. savings accounts, and passing a bill coming through ranchers’ property style to fine-tune the gears of gov- development.” to give Medicaid back to the states that I represent and impacting the ernment, cut spending and recruit through block grants. The last, she rest of the state in an awful way.” businesses. Though Arizona’s ll the same, he acknowledges Hispanics make up nearly a third adds, “unfortunately didn’t get economy was slow to recover from A the political winds may not of the state’s population and more through the Senate, but we need to s. McSally is the primary’s the housing crisis, it has been be at his back: He repeatedly than 40% in the two biggest cities, keep moving on it.” She conspicu- M front-runner, but not a growing like gangbusters for the emphasizes what he calls his “bi- Phoenix and Tucson. Mr. Trump ously avoids mentioning the culprit shoo-in. A poll by ABC15 past couple of years. partisan” accomplishments, includ- carried Arizona by a mere 3.5 for the bill’s defeat: Arizona’s se- and OH Predictive Insights shows Employment has increased by ing the teacher pay raise and a law points in 2016, compared with Mitt nior senator, John McCain. her ahead of Ms. Ward, 35% to 3.6% since January 2017—twice as to reduce opioid abuse and cut the Romney’s 9-point margin in 2012. “It gets lost in the clutter of all 27%. But the congresswoman owes much as in California. Since 2015, rape-kit backlog at hospitals. He Many Republicans and indepen- the nonsense that goes on cable her lead in part to the presence of Mr. Ducey says, nearly 50 Califor- cites his strong relationship with dents in the suburbs are repelled TV and Washington, D.C., and the Joe Arpaio, who is polling at 15%. nia businesses have set up shop in Claudia Pavlovich Arellano, the by the president’s abrasive person- ‘resistance’ to the Trump adminis- Mr. Arpaio is the former Maricopa Arizona, bringing 18,000 jobs: “I’d governor in the neighboring Mexi- ality and restrictionist immigration tration, but this is all good news,” County sheriff who lost his bid for be remiss if I didn’t thank my can state of Sonora. policies. Caught in the political she says. “Arizona’s economy is a seventh term in 2016, was con- partner in growing Arizona’s econ- As for Mr. Trump, he’d rather maelstrom are Gov. Doug Ducey booming.” victed of contempt of court in a omy—California Gov. Jerry not talk about the subject: “The and Rep. Martha McSally. That “nonsense,” however, is case arising from allegations that Brown.” politics of Washington D.C.—the Ms. McSally is running for the Ms. McSally’s problem—or at least his officers racially profiled Lati- Mr. Ducey has kept a low na- divide-and-conquer mentality of GOP nomination to succeed Sen. one of them. Few voters are aware nos, and then received a presiden- tional profile by avoiding contro- Congress—can get in the way of Jeff Flake. A second-term congress- of how much she and her fellow tial pardon last August. versial fights, the exception being the positive message that we woman from Tucson, she would Republicans in Congress have ac- One danger is that Ms. McSally this spring, when the Arizona Ed- have here out of the governor’s seem to be a GOP dream candidate: complished, because the news is could emerge from the primary ucation Association went on administration.” a former Air Force fighter pilot consumed with President Trump’s victorious but weakened from the strike to demand higher salaries. Herein is the peril for Republi- who can return liberal fire. Her irruptions. internecine warfare. Already, the Mr. Ducey quickly dispelled the cans in November: that their pos- military background is a major as- At the same time, the president ABC poll shows her trailing the protests by promising teachers a itive message of economic growth set in a state with 1,200 aerospace has inflamed immigration politics likely Democratic nominee, Rep. 20% raise over the next three and opportunity will get swamped and defense companies. and made it more difficult for Re- Kyrsten Sinema, by 4 points. years. by whatever dust storm, as bad During a recent town-hall meet- publicans like Ms. McSally to carve Gov. Ducey is in danger, too. He But Democrats hope to translate as any monsoon, the president ing at the Mesa headquarters of out a moderate position. As the won by 12 points in 2014 and has the liberal energy that the protest kicks up. Geco, a small defense contractor, Aug. 28 primary approaches, she assembled an impressive record in whipped up into defeating the Ms. McSally regales some 50 has been running to the right on office, but he has likewise strug- governor. His likely Democratic Ms. Finley is a member of the workers with an anecdote of her the issue to avoid being outflanked gled to navigate the Trump era. opponent, David Garcia, locked up Journal’s editorial board. The Obama Center Can Afford More Than $1 Rent When Barack Obama where young people from around public television station, was report- and transit fixes is serious cash. deals. Does anybody really think the announced he would the world can meet each other, get ing skeptically on “preliminary plans” Imagine the cries of corporate wel- Obama Foundation can’t afford more forgo a presidential training and prepare to become the for Illinois to cough up $100 million to fare if Chicago lured a big company than $1 rent? Yet Chicago’s loyal library, the news was next generation of leaders.” No “assist” the Obama Center: “How to town with direct infrastructure Democrats are only too happy to trumpeted as a win doubt, his definition of “leaders” could a public financing proposal fly spending of $174 million. give him the land free, then pour tax for good govern- will be political. in a state that is bleeding red ink, es- So why no fuss about ponying up money into the road reconfigura- CROSS ment. Instead, Mr. Which raises the question of pecially when the Obamas have prom- to help the Obama Center? There are tions the project requires. “The COUNTRY Obama would open why the state and city are giving ised 100 percent private funding?” two answers. The first is that Illi- state’s $174 million investment in in- an official center on the Obama Center official support. nois’s machine politicians dropped frastructure improvements near the By Mark Chicago’s South Side, Back when it was still being sold as the appropriation this summer into Obama Center,” Mayor Rahm Eman- Glennon funded entirely with an official presidential library, the It’s a political ‘institute,’ a 1,246-page budget bill, which was uel said, “is money well spent.” Mr. private money. One city of Chicago took steps to allow then presented to rank-and-file leg- Emanuel was President Obama’s first author at Politico, who called presi- the project to be built in Jackson not a presidential library. islators only hours before the vote. chief of staff. dential libraries a “scam,” wrote that Park. Under a deal approved by the So taxpayers shouldn’t be The second is that after a few Re- So if you wind up visiting Chicago Mr. Obama “will rip off the band-aid, City Council in May, the Obama publicans objected to spending state some years from now, and you spot a removing government from what it Foundation will lease 19.3 acres in paying for anything. money for the Obama Center, they tall stone tower teeming with future has no business paying for.” perpetuity for $1. A nonprofit were told not to fret: Federal reim- leaders of the Democratic Party, give Now comes news that Illinois group called Protect our Parks has bursements were on the way. “We yourself a pat on the back. No matter taxpayers will put up at least $174 filed a federal lawsuit alleging that In response, a spokeswoman for were assured by Republican leader- where in America you’re from, your million for roadway and transit re- this violates state law. The suit the Obama Foundation insisted to ship not to worry,” state Rep. Jeanne tax money will have helped to make configurations needed to accommo- calls the Obama Center a “bait and WTTW that “construction and main- Ives told me, “since 80% of the cost the Obama Center possible. date the Obama Center. If you don’t switch,” since the “public purpose” tenance will be funded by private would be picked up by the federal live in Illinois, you may be smirk- of a presidential library no longer donations, and no taxpayer money government.” Mr. Glennon is founder and execu- ing—but you’ll be footing the bill, exists. will go to the foundation.” That may If he tried, President Obama could tive editor of Wirepoints, an inde- too. Eighty percent of such spend- Then there’s the road and transit be true in the narrow sense, but the probably raise more than enough pendent research, commentary and ing is generally reimbursed by the money. Last fall WTTW, a Chicago state’s appropriation for roadway private money to forgo sweetheart news organization. federal government, and Illinois officials confirmed to me that they expect to receive $139 million from Washington if they request it. Don’t Clam Up When Life Brings You Down All that taxpayer money—and for what? Originally, Chicagoans imag- By Colin Fleming unemployment, his hours at the bar on Facebook or Instagram, we ex- private rabbit holes alone. ined they’d be getting a true presi- were few, and he couldn’t find work pend a lot of effort playing a part. Opening up about your problems dential library, akin to those they hy do we often feel the need in his actual profession. Although we are more “connected,” can be scary, but you need give only might have visited for Ronald Rea- W to pretend our lives are bet- That bartender became my friend. we close ourselves off to others. We the gist. Remember that when you gan in California or John F. Kennedy ter than they really are? I respected his candor, which made it fear looking weak, so we flash out share what you are grappling with, in Boston. But unlike those libraries, When you’re fighting to keep your- easier for me to share my own prob- an emotional Morse code: “All is you command respect, rather than the Obama Center won’t be run by self going, sometimes what can help lems. When he first told me that he well, all is well.” lose it. You foster hope in yourself the National Archives and Records is a proper, out-loud accounting of was pushing 40 and unable to find and in someone else. Living this way Administration. It won’t even house what you’re going through. Admit- work, he didn’t come across as frag- is easier, too, since you don’t have to Mr. Obama’s records, artifacts and ting that your life is not exactly the ile. Instead my thought was: “This Risk some candor. You’ll invent any stories or go through the papers, which will be digitized and Country Fair Jamboree may be the guy is impressive. He’s solid in his find it a relief, and others effort of maintaining a pose. available online. Instead the center first step to getting it there. belief about himself. He has a prob- Just open your mouth and say the will be owned and operated by the At a low point in my life, when it lem to deal with, and he knows will respect you for it. thing you’ve been thinking for the Obama Foundation. was a chore just trying to keep out there’s no point in trying to save face past three hours. You can see it as This wasn’t always the plan. In a of bed, I ventured into a bar that I by pretending it’s not there.” daring to take a risk, but it’s really 2014 request for proposal, the knew wasn’t very popular. There I Such honesty can be disarming. The result is that many people go good-natured, honest conversation. Obama Foundation said that the sat down in front of a bartender You have this moment where you on playacting. They never take a seat I call it connection: the only chance planned presidential library “will in- who turned out to be exactly my take a step or two back and can see at life’s bar, look over the wood to an in this world each of us has to be a clude an Institute that will enhance age. the other person in a new light. Then honest peer, and make the type of real person. the pursuit of the President’s initia- I assumed he was doing better you think: “Wait, why can’t I do that? connection humans always need to tives beyond 2017.” This institute than I was, so when we started talk- I’d feel better.” And hearing that bar- remain tethered to the truth. With- Mr. Fleming is the author of “Bur- now seems to have taken over the ing, I scarcely went into my troubles. tender openly talk about what he out the perspective that the counsel ied on the Beaches: Cape Stories for project. As the Chicago Tribune re- But he, too, was in a trough of one was going through, I did. of friends can provide, or even just Hooked Hearts and Driftwood ported in February: “Obama said he of life’s waves. Without hesitation, Yet now more than ever, as peo- the contrast of our lives against Souls,” forthcoming this year from envisions his center as a place he told me that he was collecting ple put on smiles for their followers theirs, we end up going down our Tailwinds Press.

wsj_20180811_a011_p2jw223000_4_a01100_1______xa2018.crop.pdf 1 11-Aug-18 06:06:51 A12 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Coercive Economic Diplomacy AT&T Hangs Up on Corporate Responsibility ames Carville famously quipped in the to in every sovereign financial panic. As the Supreme Court has assured I think these companies should “eat” 1990s that he wanted to be reincarnated The lira crisis looks to be containable, espe- us that corporations are “associations the financial deficiencies because they J of individuals,” I have to assume that caused them, either directly or through as a bond trader so he could “intimidate cially if Mr. Erdogan decides to cut his losses the individuals associated with AT&T their agents (servicers). Maybe suffer- everybody.” Today he’d proba- and release Mr. Brunson as Trump unleashes are thoroughly embarrassed and ing such financial blows would make bly want to return as a cur- well as NASA scientist Serkan deeply ashamed by the pension deba- these corporations do a better job. rency trader. With central the world’s currency Golge and Turkish employees cle reported in “AT&T Overpaid Pen- PAUL S. CHERRY banks holding down interest of U.S. State Department mis- sioners; Now It Wants the Cash Back” Sarasota, Fla. rates, currency traders are the traders on Turkey’s lira. sions in the country. The U.S. (page one, Aug. 4). If they aren’t, new economic enforcers, as Congress is considering new they should be. One thing is certain: AT&T justifies its pursuit of pension Friday’s volatile markets sanctions against Ankara, and We’ve come a long way from the be- overpayments with what we grammar- showed. Mr. Erdogan’s invocation that Allah is on his nevolent days of employment at “Ma ians call passive voice. In passive voice, The hottest flashpoint is the Turkish lira, side won’t stem further economic harm. With Bell.” Kudos to Theo Francis and the the active agent is omitted from the which dropped more than 13% against the dollar all due respect to Allah, an independent central Journal for reporting this travesty, sentence, often to displace blame. “The amid a fight between President Recep Tayyip bank will be more effective than prayer. which I trust will help lead to its ball was dropped,” and “the catcher swift correction. dropped the ball,” describe the same Erdogan and President Trump over American Mr. Trump should also want a happy resolu- G.W. SCHMIDT loss, but the former saves the catcher prisoners. The Russian ruble also hit a two-year tion to stop any larger debt or currency damage Willow Street, Pa. from embarrassment and leaves culpa- low Friday on fears of more U.S. sanctions, and to financial markets. The U.S. needs good rela- bility where it rightly belongs, on a emerging markets in general are under pressure tions with Turkey to pursue diplomatic solu- AT&T isn’t the first nor will it be the failed team effort. as global capital flows to the fast-growing U.S. tions in Syria and Iraq. last to seek rebates from its retirees Now consider the Byzantine world economy. The Trump Treasury needs to be alert iii for overpayment due to the negligence of pension calculation. The sentence to the exchange-rate fallout. As tempting as sanctions often are, they of either the company itself or its ser- “Mistakes were made and so you owe More than any recent U.S. President, Mr. should be used sparingly and against the right vicer. These companies are picking on us money,” is different from “We made Trump is willing to use economic leverage for targets. They make sense against genuine rogue the most vulnerable elements of their mistakes and want our money back.” If coercive diplomacy. He’s now targeting Turkey states like Iran and North Korea, as well as to corporate families to cure their own the clerk at a convenience store mis- defects. These retirees are being vic- takenly gives a customer $10 addi- to gain the release of American Christian pastor show Vladimir Putin that there are costs to in- timized by their own companies and tional change and the customer doesn’t Andrew Brunson, who is being held on dubious vading neighbors or using chemical or biologi- are “innocent victims,” if that term ex- knowingly pocket the difference, would charges of aiding a coup attempt. Mr. Trump cal weapons to kill exiles on foreign soil. ists. The former employee asked for his you fire the clerk or days later would threatened sanctions several weeks ago, and But sanctions against allies should be used or her pension, and the company de- you expect an executive to pursue the last week he followed through against two only in rare cases. They would also be less risky termined what the payment should be. customer down the street and to the members of Turkey’s cabinet. if they weren’t piled on top of Mr. Trump’s tariff The former employee didn’t ask for customer’s front door? Mr. Erdogan has vowed never to give in, but war. Mr. Trump’s metals tariffs have made Eu- any specific amount and is satisfied Bite the bullet, AT&T. You screwed this week he sent an emissary to the U.S. for rope even less willing to cooperate with the U.S. with what the company determined up. talks. After those failed to gain Mr. Brunson’s in enforcing renewed American sanctions the payment should be. The former PERRY GLASSER release, Mr. Trump escalated with a Friday against Iran. employee made no mistake. Haverhill, Mass. morning tweet vowing to double U.S. tariffs on If Mr. Trump is determined to use coercive Turkish aluminum to 20% and steel to 50%. The economic diplomacy, including tariffs and sanc- lira promptly fell to a new low and has lost more tions, then the Treasury will have to be ready Portland’s Anarchy Deserves Federal Response than 40% of its value in a year. to deal with the collateral financial damage. Ev- Regarding Andy Ngo’s “Anarchy At what point does aggressive re- Turkey is vulnerable because of Mr. Erdo- ery recent Administration has dealt with a cur- Breaks Out in Portland, With the sistance to federal policy and law en- gan’s economic mismanagement. In the runup rency or financial surprise of some kind—from Mayor’s Blessing” (Cross Country, forcement cross a line that justifies an to June elections, he blew out the fisc on enti- the U.S-German dispute of 1987, the Mexican Aug. 4): I was born and raised in aggressive federal response? tlements and public works. His son-in-law, Be- peso run of 1994, the Asian meltdown of 1997, Portland, Ore., and I am sad, angered In 1860, South Carolina refused to rat Albayrak, who is no Alexander Hamilton, the Argentine peso crisis of 2002, and the Chi- and even frightened about the ICE accept the legitimacy of Abraham Lin- runs the finance ministry. Mr. Erdogan has also nese devaluation shock of 2015. protests supported and encouraged coln’s election and pre-empted possi- meddled in monetary policy to keep interest Some were worse than others, but each car- by local government (the mayor). ble federal adoption of antislavery rates low, at the cost of rising inflation that ried dangers of wider harm if not addressed. Portland appears to be rapidly de- policies by seceding from the union. scending into a Third World country The federal government fought to pre- economist Steve Hanke estimates at 85%. Those risks increase if a U.S. President is bent where harassment and intimidation serve the rule of law in 1861. The fed- The trouble with sharp currency moves is on using economic punishments to deliver po- are tolerated, with no protections for eral government today is engaged in a that the damage can radiate beyond one coun- litical goals that aren’t easily achievable. Finan- the broader community—businesses, fight with anarchists and anti-Trump try. Contagion is always possible. In Turkey’s cial sanctions in a world of fiat currencies are residents, visitors. It is ironic that on resisters to protect U.S. borders and case, the concern is over dollar-denominated a powerful political tool. But the Trump Admin- the same day Mr. Ngo reported on prevent illegal entry into the country. debt. About half of Turkey’s debt is held in dol- istration needs to use them with care, while the the ICE protests, the Journal had an Courts in the U.S. generally ha- lars, which becomes more expensive to finance Treasury and Federal Reserve work with other editorial on the “Tragedy of Zimba- ven't been sympathetic to people, when the lira is worth so much less. European central bankers and finance ministers to reduce bwe,” where citizens are subjected to organizations and governments pick- banks hold a chunk of this debt, as they seem volatility in the world’s main currencies. “coercion and intimidation, partisan ing and choosing the laws that they behavior by traditional leaders and will respect. Throughout history, an- overt bias in state media.” This archy and disrespect for the rule of sounds a lot like what is going on in law constitute a self-fulfilling proph- Revenues Are Higher Portland. Is this really how people esy of state repression to restore or- want to live in the city and state? der. Repression can come from the erhaps you’ve read that the federal bud- form that cut the corporate rate and added 100% These “occupiers” aren’t peaceful left or the right, and the outcome is P get deficit is rising again, and that’s true. expensing. But individual income taxes increased practitioners of free speech. They are never good for troublemakers or But what you probably haven’t heard is by $104 billion, or 7.9%, despite the cut in indi- violating the rights of others to make their victims. that the main reason is spending, not falling rev- vidual tax rates. How could that be? CBO says a living and live in a clean and STUART GRAY enue from tax cuts. one reason is that withholding from paychecks healthy environment without threats St. Augustine, Fla. The Congressional Budget Office released its increased by $32 billion, which “largely reflects of violence and personal harm. I can’t budget summary for July this week, and the defi- increases in wages and salaries.” In other words, believe that the City of Roses has Mr. Ngo’s article shows why the wilted to such a degree. Second Amendment is necessary. cit for the first 10 months of fiscal 2018 reached a faster-growing economy employed more peo- MARY J. COULOMBE TIM LADA $682 billion, up $116 billion from a year earlier. ple who made more money. Oakton, Va. Magnolia, Del. Federal spending increased by $143 billion for Individual tax receipts were down a bit in July all the usual reasons—especially Medicare, Med- but that was more than offset by record revenue icaid and Social Security. in April, the biggest month for tax receipts. But revenues were higher as well—up $26 bil- Meanwhile, don’t believe everything you read Better Bombs and Sparing Human Shields lion. Corporate income taxes were down sub- about tax reform and deficits. Higher spending stantially as expected in the wake of the tax re- is the real problem. Andy Kessler’s excellent “Better dren—willingly stood on their roofs Bombs Save Lives” (Inside View, July to “defend their property.” Several ci- 30) might have mentioned another vilians in Gaza (with faces covered) key reason for civilian casualties in have said in subsequent interviews The Proxy Advisers’ Veto addition to faulty intelligence and in- that they are regularly forced by accurate ordnance: The deliberate Hamas to act as human shields or ite Aid and Albertsons called off their flict of interest because Albertsons CEO Bob use of civilians as human shields by face death. R seven-month engagement on Wednesday Miller had served on Rite Aid’s board. both ISIS and Hamas, among other Similarly, in 2017 ISIS took entire amid opposition from large public inves- The proxy firms may be right that the com- terrorist groups. families hostage in Mosul and forced tors and proxy advisory firms. bined company would have As recently as June 8, Hamas them to serve as shields against the Perhaps the companies are bet- Glass Lewis and ISS had too much debt to invest spokesmen Sami Abu Zuhri defended attacking Iraqi army. Nearly 200 ci- ter off alone, but this is a mo- say no, and Rite Aid and in new technology, and the the practice of using human shields vilians were killed in one coalition ment to highlight the outsize market is changing so fast to abort an Israeli air attack. He al- airstrike after ISIS corralled civilians role that two advisory firms in- Albertsons fold. that shareholders might be leged that people—women and chil- and forced them to stand among mu- creasingly play in dictating better off waiting. Expanding nitions depots and other military in- shareholder interests. Rite Aid’s retail clinics and stallations. So, yes, by all means Google’s mil- The grocery and pharmacy industries have small pharmacy benefit management opera- Who Has Final Say About lennial snowflakes should get back to been consolidating amid technological disruption could add more value than combining California’s Air Quality? work coding accuracy-boosting soft- tion and greater competition. Supermarket with Albertsons. Regarding “Trump Sets Up Emis- ware into our nations’s weapons. margins are being clipped by big box stores, On the other hand, pharmacy benefit manag- sions Battle; President seeks to curb However, as long as the pure evil of discounters and Amazon, which bought Whole ers are facing increased regulatory scrutiny, California’s power to regulate auto forced human shields exists, so will Foods last year and operates a fresh-food deliv- and it’s unclear whether Rite Aid can survive pollution and fuel use” (page one, civilian casualties. ery service. Pharmacies have been eating into as a stand alone company. Earlier this week Aug. 3): California is the vanguard of LAWRENCE DELANEY JR. grocery-store business. Rite Aid increased its expected annual net loss the battle against air pollution out of Irvine, Calif. As more commerce has moved online, phar- to between $125 million and $170 million. necessity, not virtue. Geography has macies are also seeking new partners. CVS ac- Yet the objections by Glass Lewis and ISS forced the Golden State to confront CORRECTION quired Target’s 1,672 pharmacies in 2015 and carry substantial weight since the Securities atmospheric contamination caused by its arid climate, wind patterns and announced plans last year to acquire health in- and Exchange Commission allows institutional mountains. Despite leading the way in Braidy Industries is investing $1.3 surer Aetna. Amazon has spooked pharmacy in- shareholders to fulfill their fiduciary obliga- clean-air regulations, the state con- billion in an aluminum mill in Ken- vestors with its purchase of PillPack, which will tions by relying on the advice of third-party tends with the highest levels of ozone tucky. An Aug. 9 editorial, “The give it a pharmacy license in 49 states. proxy advisers. Flouting their advice can invite and dust particles in the U.S. and Right-to-Work Rout,” misstated the Rite Aid attempted to merge with Walgreens investor lawsuits. Glass Lewis and ISS control needs federal support, not opposition. amount of the investment. but was blocked when the Federal Trade Com- 97% of the advisory market, which encourages For Washington to hobble Califor- mission’s antitrust czars took a too-narrow view herd voting among investors. nia’s efforts is like blocking northern of the market. Rite Aid sold nearly half of its Proxy firms also don’t have to demonstrate states from developing better insula- Pepper ... stores to Walgreens in March, but its smaller size that their recommendations are in the best in- tion against winter cold, or the south- And Salt has reduced its negotiating leverage with phar- terest of shareholders, which can cause con- east from devising flood-control mea- macy benefit managers and distributors. flicts of interest. Case in point: Glass Lewis is sures. The Environmental Protection THE WALL STREET JOURNAL Agency and Department of Transpor- Last year Rite Aid’s stock price plunged partly owned by Alberta Investment Manage- tation ought to be learning from Cali- nearly 80%, and in February the privately ment Corporation, which is one of Rite Aid’s 10 fornia, not punishing it. owned Albertsons and Rite Aid struck a deal largest shareholders. KEVIN GLYNN, M.D. that would allow the combined company to Republicans in Congress have been working La Jolla, Calif. go public and Rite Aid holders to exchange to increase transparency and accountability for 10 shares for one in the new company plus proxy advisory firms. Last year the House So, Republicans, so much for $1.83 in cash. passed a bill that would require the firms to state’s rights. But the two major proxy advisory firms Glass register with the SEC and make public their DANIEL MCVEY Lewis and Institutional Shareholder Services, “methodology for the formulation of proxy vot- Los Angeles which advise institutional investors, balked that ing policies and voting recommendations.” Letters intended for publication should the deal undervalued Rite Aid shares. ISS con- Given their oligopoly and clout, more scrutiny be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, tended that the deal “would introduce a new set of the advisers is warranted. or emailed to [email protected]. Please of risks associated with the grocery business, Corporate management is accountable to include your city and state. All letters and the combined company’s leverage could shareholders, but who will hold proxy firms re- are subject to editing, and unpublished limit investment in two evolving business envi- sponsible if they low-balled the value of the letters can be neither acknowledged nor returned. ronments.” The firm also quibbled about a con- Albertsons-Rite Aid deal? “I’m guessing this is bean related.” THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | A13 OPINION Siri, Why Do I Feel Like I’m Being Watched?

By Matthew Hennessey be connected to the web—or to company determined that hack- other devices through the web— ers were able to gain access to egan and Michael Neit- is a potential part of the Internet the webcam while the young vic- zel scratched their of Things. The logic, typically, is tim was playing the online video- heads in confusion commercial. The companies that game Minecraft. M when a giant box con- develop and manufacture these Government spying is a fur- taining a dollhouse and networked devices seek better ther privacy concern raised by 4 pounds of sugar cookies was deliv- ways to reach consumers with the Internet of Things. In early ered to their Dallas home last year. products and advertising. If you 2017, WikiLeaks released a trove The day before, their 6-year-old have an Echo, you’ve already proof documents purportedly reveal- daughter, Brooke, had been chatting vided Amazon with your credit- ing the Central Intelligence innocently with the family’s new dig- card number, address, birthday Agency’s ability to hack your in- ital personal assistant, the Amazon and the names of all your chil- ternet-enabled television and Echo. The little girl at first denied dren. You’ve also uploaded a turn it into a listening device. placing the $162 order, but eventu- “wish list” of products you’re in- The same document dump indi- ally fessed up. terested in, and, quite possibly, cated that the CIA has targeted Voice-recognition tools like the your deodorant preferences, per- Apple, designing malware that Echo are the most common—and pop- sonal measurements, taste in can infect “factory fresh” iPhones ular—example of a looming revolution movies and baby’s diaper size. and snoop on users’ texts, phone in human-computer interaction known Amazon knows more about us and FaceTime calls, and internet as the Internet of Things, which than we can imagine. searches. “Siri, why do I feel like Funnily enough, market re- I’m being watched?” search shows that people don’t The Neitzels took their daugh- The Internet of Things mind handing over such highly ter’s impulse buy in stride, with

personal information—to the MARTIN KOZLOWSKI Megan telling ABC News: “Tech- will soon be ubiquitous. right company. According to For- nology is evolving amazingly That means you can kiss tune, Amazon is one of the three most The grand bargain between Sili- going to bed. They didn’t know fast, and that’s a good thing, but we admired companies in the world, con Valley and the average person whether to believe the child when he need to stay one step ahead of it as your privacy goodbye. along with Apple and Google. Other has always been this: You give up told them that someone was talking parents.” For its part, Amazon sug- Silicon Valley tech companies collect, your privacy, and we’ll give you cool to him at night. “Wake up, little boy,” gested that parents should add a few store and sell personal information stuff. “If today’s social media has he claimed he’d heard a voice in the layers of protection to the Echo, like promises to redefine how we live, about their users to advertisers, but taught us anything about ourselves darkness say. “Daddy’s looking for insisting upon a confirmation code travel and work. The home of the very Amazon, Apple and Google are per- as a species, it is that the human im- you.” The couple thought he was for every order or, incredibly, turning near future will be an always-listen- ceived as providing a valuable service pulse to share overwhelms the hu- having nightmares, until they went off the device’s voice-purchasing ing, always-watching surveillance sys- in exchange for the right to monetize man impulse for privacy,” writes the to check on him one night and heard function. These strategies would tem designed to anticipate and fulfill customers’ privacy. And if the Inter- technology guru Kevin Kelly in his the voice too. “Look, someone’s com- seem to undermine the value of hav- your needs. Cars and offices will oper- net of Things has any purpose at all, 2016 book, “The Inevitable: Under- ing,” it said as they entered their ing the Echo in your home. ate in much the same way. it’s to monetize privacy. standing the 12 Technological Forces son’s room. A hacker had taken con- That is, if you look at it from the It won’t be long before your new “The Internet of Things heralds a That Will Shape Our Future.” So far, trol of their baby monitor, the kind consumer’s point of view. For Ama- dishwasher will want the ability to qualitative shift in how privacy is he adds, “at every juncture that of- you can check through an app on zon, perhaps getting the Echo talk to your Amazon Echo so that it managed, both by people and by the fers a choice, we’ve tilted, on aver- your smartphone. through the front door is good can order more detergent. Your new organizations that create, sell, and age, toward more sharing, more dis- The popularity of internet-con- enough—for now. bike will get annoyed if it can’t com- operate internet-connected devices,” closure, more transparency. I would nected security cameras, locks and municate with the map app on your write Gilad Rosner and Erin Kenneally sum it up like this: Vanity trumps home alarms has skyrocketed despite Mr. Hennessey is an associate edi- smartphone. Your FitBit will have a in a recent report for the University privacy.” regular reports that the systems are torial features editor at the Journal. relationship with your popcorn pop- of California, Berkeley’s Center for A surprise purchase of a dollhouse easily hijacked. A family in Houston This article is adapted from his new per. They’ll all be sending reports Long-Term Cybersecurity. As smart and some cookies might seem a fairly was horrified to learn that a live feed book, “Zero Hour for Gen X: How the back to Palo Alto or Mountain View devices like the Echo become the weak indictment of the threat to pri- from the webcam in their 8-year-old Last Adult Generation Can Save or Cupertino, presuming they aren’t norm, consumers are “losing the abil- vacy posed by the Internet of Things. daughters’ room had been streaming America from Millennials.” already. ity to monitor and control the data Consider a more disturbing scenario. online. The girl’s mother found out Kiss privacy goodbye. collected about them, and they often A Washington state couple grew con- only when a woman in Oregon hap- Peggy Noonan is on leave and will Any device that once had a have little awareness of what is done cerned a few years ago when their 3- pened across the livestream and de- return in the fall. purely analog function but can now with their data downstream.” year-old son developed anxiety about cided to contact the family. A security ‘Diversity’ Looks a Lot Like Old-Fashioned Discrimination By Michael Blechman that of course it is always easiest for like myself—the very thing the Yet as the old kind of discrimina- Harvard need not push out Asians clients to relate to lawyers who are white-shoe firms had assumed I tion has died out, a new form has in its effort to aid groups that have t 76 I am old enough to have like themselves. could never do. emerged—this time under the ban- faced hardship in the past. Instead it A experienced the old-fashioned It had taken four wasted inter- After I began my job, I found out ner of “diversity.” It’s good to open could, for example, give preference kind of discrimination. It hap- views, but I finally understood. I that many of the older partners had opportunities to people who were in its admissions to applicants who pened in 1965, when I was in my went from that last firm to my experiences similar to my own. previously excluded. But promoting have excelled despite coming from second year at Harvard Law School. apartment and took out a telephone Some had been hired by downtown “diversity” by discriminating against disadvantaged backgrounds. Accord- I was looking for a job as a summer book. I knew of three so-called Jew- firms but left when they realized nonfavored categories of people ing to Harvard and its defenders, associate, a rite of passage that gen- ish law firms in New York at that they had no future there or when an seems quite a different thing. however, no such measures—indeed, erally leads to permanent employ- time, so I called the one that came A continuing suit against my alma nothing short of directly considering ment. I remember feeling pretty first in the book, Kaye Scholer, and mater is a case in point. According race as a factor—has ever succeeded confident, having ranked 40th out of asked to speak to the hiring partner. I was barred from top law to Students for Fair Admissions, a in achieving the desired degree of 530 in my first-year grades. Though it was 4:30 on a Friday af- group representing Asian-American diversity. I applied to the four law firms I ternoon, he asked if I could come firms as a Harvard student Harvard applicants who have been Thus, the old liberal ideal of considered the best—all “white shoe” over right away. An hour later I was in the ’60s. Today Asians denied admission, an Asian-Ameri- equality of opportunity has been firms in downtown New York. I ar- interviewed, first by him, then by a can applicant with a 25% chance of replaced by a new goal, demo- rived at each interview in my best preppy-looking partner with a bow face similar prejudice. admission would, on the very same graphic proportionality, pursued at suit, hair trimmed and shoes shined. tie, and finally by the firm’s admin- record, have a 35% chance if he were the cost of inequality of opportu- The interviews went smoothly, but at istrative partner, who offered me a white and a 95% chance if he were nity. With the old-fashioned kind of no point did anyone offer me a job. job. I accepted on the spot. anti-Semitic partner blackballed them African-American. Furthermore, Har- discrimination still in living mem- By my last interview I figured I must After working at Kaye Scholer for partnership. Firms like Kaye vard’s admissions team has allegedly ory, Americans should recoil from be missing something, so I asked in- that summer, I joined the firm as a Scholer benefited enormously from justified its rejection of qualified the idea of skewing the admissions stead what his firm was looking for regular associate in 1966, became a the downtown firms’ bigotry. Asian-American applicants by giving playing field through race—espe- in an associate. I recall that he partner in 1975 and stayed there Since my experience in 1965, all of negative assessments of their char- cially when such moves are ratio- looked at me in silence for about 60 until I retired two years ago, when the firms at which I had interviewed acter traits. The result, according to nalized with groundless prejudice seconds, as though trying to figure it merged into a larger firm. Thanks have overcome their prejudices and the plaintiff, is a de facto quota for toward those being discriminated out a polite way of explaining the sit- in part to a Fulbright year I had now hire and promote Jewish law- Asian-Americans—very much like the against. uation. He told me that the most im- spent in Berlin, I developed a large yers, as well as women, blacks, His- express quota of 20% imposed by portant thing for any lawyer was to practice representing German cli- panics and Asians. Kaye Scholer be- Harvard on the number of Jews it Mr. Blechman is a mediator based be able to relate to the clients, and ents—people who were not at all came similarly diverse. would admit in the 1920s. in Chappaqua, N.Y. Tesla’s Unreal Stock Price Is the Peril of Elon It is not a bad time last Tuesday, in which he claimed to CEO, all in a day’s work was to manip- capitalism. Tesla was the right com- One keeps coming back to Mr. to remember that have “secured” funding for a Tesla ulate the share price, to ramp it up to pany for it: avidly followed by the Musk’s serially repeated promise that Elon Musk created buyout at $420 a share. facilitate a financing, implement a global media and by analysts, critically Tesla was done raising money, that it two amazing com- Mr. Musk surely had something in short squeeze, etc. Read about the dissected by short sellers. You have an can finance its future capital needs panies—not count- mind when he wrote these words, but doings of Daniel Drew, Cornelius Van- unconstrained CEO acting however he out of sales revenue. ing his role in I doubt that it will meet the SEC’s derbilt and Jay Gould. Anything went wants. You also have an exceptionally It’s hard not to suspect this is a BUSINESS founding PayPal—in definition of “secured.” and investors knew it. Their contem- statement of necessity rather than WORLD the form of his car A conventional, SEC-fearing CEO poraries probably did not doubt they desire. Mr. Musk knows he risks pop- company, Tesla, and would never have proposed a buyout were a little crazy too. ping the Musk bubble if he goes back By Holman W. Enron’s problems began his rocket company, via tweet. If he had, an army of law- Mr. Musk already risked trouble to the market one time too many. His Jenkins, Jr. SpaceX. yers would have been standing at his with the SEC over his numerous as- with a share price its board cannot be unaware that Mr. He likely would elbow. Of no other CEO is it imagin- surances that Tesla did not need business couldn’t support. Musk’s aura and celebrity are a key not have achieved these successes if able that he might blurt out such a fresh capital this year, a claim many prop under the stock price, which is he weren’t a little crazy. One reader thing for its effect, without consult- analysts on Wall Street flatly contra- Will Tesla do better? a key prop under the company’s eco- emails to compare him, both flatter- ing anybody or even having his facts dict. Then there are his numerous nomics. This creates a dilemma for ingly and unflatteringly, to Howard straight. production forecasts that haven’t them too. Hughes. With Mr. Musk, it’s just plausible. been borne out. well-informed market monitoring his Not to elicit howls, but Enron was Now our suspicious friends at the In some ways, he’s a throwback to Till now, the SEC’s long leash actions, his statements, even his psy- a company that found itself trying to Securities and Exchange Commission 19th-century capitalism but with 21st- amounted to, wittingly or other- chology. If any shareholder feels ag- sustain a stock price its underlying are curious about Mr. Musk’s tweet of century tools. With a 19th-century wise, an experiment in 19th-century grieved or cheated at this point, he or business couldn’t support. Here was she should look in the mirror. In the an overlooked progenitor of what be- meantime, would the situation be any came the signature corporate scandal Notable & Quotable different in the absence of our possi- of its era. A gas-pipeline company PUBLISHED SINCE 1889 BY DOW JONES & COMPANY bly irrelevant mountain of “investor that was selling for $20 suddenly was Rupert Murdoch Robert Thomson Caitlin Flanagan writing at the protection” regulation? boosted to $90 based on internet-era Executive Chairman, News Corp Chief Executive Officer, News Corp Atlantic’s website, Aug. 9: That said, his buyout proposal, af- hype about the commodification of Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher ter initially boosting the stock price, everything. Notice any similarity to There are plenty of reasons for in- has stopped helping. A leveraged today’s belief among a certain public Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; dividual readers to dislike Jordan buyout, featuring large amounts of that Tesla is solving the climate prob- Jason Anders, Chief News Editor; Thorold Barker, Edward Roussel, Chief Innovation Officer; Europe; Elena Cherney, Coverage Planning; Peterson....Therearemanylegiti- debt, is unlikely in a company whose lem and government policy will guar- Anna Sedgley, Chief Operating Officer Andrew Dowell, Asia; Neal Lipschutz, Standards; mate reasons to disagree with him cash-generating capacity is already antee Elon’s success? What followed, Meg Marco, Digital Content Strategy; OPERATING EXECUTIVES: on a number of subjects, and many overtaxed. An equity-for-equity buy- at Enron, was management’s resort Alex Martin, Writing; Michael W. Miller, Features Ramin Beheshti, Product & Technology; & Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; people of good will do. But there is out may be what Mr. Musk is think- to funky, illegal and then frankly pi- Rajiv Pant, Product & Technology; Ann Podd, News Jason P. Conti, General Counsel; no coherent reason for the left’s ing of, but why would anybody pay ratical measures to support a valua- Production; Matthew Rose, Enterprise; Tracy Corrigan, Chief Strategy Officer; obliterating and irrational hatred of $420 for what could be had for $355 tion from investors intoxicated with Michael Siconolfi, Investigations; Frank Filippo, Print Products & Services; Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; Jordan Peterson. What, then, ac- today? new-age thinking. Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; counts for it? Such a transaction presumably In its day, Enron could have swal- Carla Zanoni, Audience & Analytics Nancy McNeill, Advertising & Corporate Sales; It is because the left, while it cur- would be premised on some large, lowed hard and let investors catch up Christina Van Tassell, Chief Financial Officer; Gerard Baker, Editor at Large Suzi Watford, Chief Marketing Officer; rently seems ascendant in our value-creating advantage in being pri- with the fact that its earnings, while Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International houses of culture and art, has in fact vate, but nobody other than Mr. Musk real, were never going to meet expec- Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher entered its decadent late phase, and can see it. No private-market valua- tations. Enron likely would have sur- WALL STREET JOURNAL MANAGEMENT: Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; it is deeply vulnerable. The left is tion would be as friendly to Tesla as vived instead of self-immolating. Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head afraid not of Peterson, but of the the public markets have been, nor Could Tesla undergo a realistic mark-

EDITORIAL AND CORPORATE HEADQUARTERS: ideas he promotes, which are com- would private markets be so willing down in its share price and survive? 1211 Avenue of the Americas, New York, N.Y., 10036 pletely inconsistent with identity to fork up new cash to sustain its That may be Mr. Musk’s most searing Telephone 1-800-DOWJONES politics of any kind. money-losing car business. challenge of all. A14 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. SPORTS

GOLF A Schedule Change to Boost the PGA An improved profile, better weather and more course options are some of the benefits to moving the tournament to May

BY BRIAN COSTA

St. Louis WHEN IT COMES to the golf schedule, the operative word around PGA Tour headquarters lately is cadence. For decades, that cadence has been more or less the same. The year starts with the buildup to the Masters, which is followed, somewhat strangely, by a two-month wait for the U.S. Open. The British Open and PGA Champi- onship follow in rapid succession. But that traditional rhythm will change following the conclusion of this weekend’s PGA Championship at Bellerive. The tournament’s move to May starting in 2019 creates some short-term quirks; the PGA Championship accounts for two of the three majors between now and then. It also has the potential to boost the profile of a tournament that recently felt the need to adopt a slogan reminding people that this is major. It read, “This is major.” “What would it mean to follow the Masters and to chronologically be the second of the four majors as opposed to the fourth?” PGA of America Chief Executive Pete Bev- acqua asked on Wednesday. He left the question unanswered.

For one thing, it will mean STUART FRANKLIN/GETTY IMAGES (2) avoiding August playing conditions, which looks more desirable than Rory McIlroy, top, tees off during ever this week. A Midwest heat the first round of the 2018 PGA wave left the greens at Bellerive Championship at Bellerive Country looking burned and patchy, prompt- Club on Thursday. Tiger Woods, ing tournament officials to slow the left, plays a shot from the bunker. green speeds to protect them. It could also bring the tourna- ers decide to play. Most of them ment to different parts of the plan their schedules around the country, most notably Texas, majors, the courses that suit them, which hasn’t hosted a major since the tournaments that pay the most 1969. The next year that is un- and the ones their sponsors are in- claimed by a host isn’t until vested in. That has created a fair 2025—next up is New York’s Beth- amount of predictability. page Black—but the May weather Top players tend to play a busy will create different options. schedule in February and March, The biggest impact could be on take up to a month off after the the stature of a tournament long Masters and play many of the viewed as the least prestigious of same events each year. The ca- the majors. As officials pondered dence of their own seasons is the move to May, they received en- about to change in ways even they couragement from CBS, which aren’t sure of yet. broadcasts the tournament. The “When you look at the schedule, network charges slightly higher ad next year is going to be a little bit rates in May and believes ratings of a crapshoot,” Seymour said. will be higher then, even during a “Some of these traditional events busier time on the sports calendar the PGA of America, the organiza- not quite so major. “We are huge at Octagon. that players have played may not that includes competition from the tion of club pros, from which tour- proponents of the Olympics, but That all led to a series of moves fit into schedules based on how NBA playoffs and other events. In ing pros split in 1968 to form what we also have to protect the PGA starting next year. The Players they prepare for majors. This is a August, many viewers are away on is now the PGA Tour. They have Championship,” Bevacqua said. Championship will move from May brand new experiment.” vacation. been independent entities—if The PGA Tour had its own to March, the FedEx Cup will end The one constant will be the The players won’t mind, either. sometimes confused for one an- scheduling issue. Since 2007 it had before Labor Day, several other week that stands above the rest on “I think that next year’s major other—ever since. But the looming staged the FedEx Cup playoffs PGA Tour stops will change posi- every player’s calendar. After the schedule will flow really nicely— schedule shift started with the two from late August to late Septem- tion and new ones will debut in Ryder Cup next month, much of one in April, May, June and July,” organizations finding common ber, but the events barely regis- Detroit and Minneapolis. what top players plan—when to Jordan Spieth said. “If you get on cause. tered during football season. “The trigger point for it all was take time off, when and where to a nice run playing some good golf Golf’s return to the Summer Even Spieth’s win in 2015, which moving the PGA Championship to play in early 2019—starts by work- there, starting at the Masters, you Olympics in 2016 meant that the earned him a $10 million prize af- May,” said Andy Pazder, the PGA ing backward from the Masters. It can really let it run through the PGA Championship would have to ter he won two majors, drew dis- Tour’s chief tournaments and com- has become the sun around which entire major season.” be moved once every four years. It mal ratings. “It should be a crown- petitions officer. “That was the the rest of the golf season orbits. The PGA Championship has was held in July that year, sand- ing achievement and it’s a tree first domino to fall.” “It’s so weird,” Justin Thomas been played in August for most of wiched between the British Open falling in the forest,” said Scott Just as significant as when tour- said. “Something about Augusta— the past half-century. It is run by and the Olympics, making it feel Seymour, head of golf consulting naments are held is when top play- you’re always thinking about it.”

Weather BOARD GAMES Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 60s 70s Edmontondt 80s <0 VancouverV 0s Calgaryy 90s 60s 10s Winnipegip A Scrabble Champion’s Seattle 80s 20s PorPPortlandd Helena Montrealt 70s 30s 80s Bismarckk 70s Ottawa 80s 40s Billings 100s AugustaA g t Eugene Boisei 60s Spellbinding Comeback 80s Mpls./St.Mpls./pls./St.l/StP Paul TorontoT AlbanyA bany Boston 50s PierreP 100s 70s 90s Hartfordtford 60s Siouxoux F Falls Milwaukeek Detroitt Buffalol NewY Yorkk BY ANDREW BEATON ing affair that ensued. Both 70s 70s Reno Salt Lake CitCityty Deses Moines ChicagoCh g ClevelandCCl l d PhiladelphiaPhiladelhil d lp hi 80s CheyenneCh y players exchanged tiles be- 100s PitPittsburghb h 80s Sacramento 100s Omahah Indianapolisdi p Nigel Richards had a com- fore Richards played ZEBRA 70s Denver Washingtonh g onn D.C.DCC Sanan Francisco 90s 90s Topeka Springfield Richmondhdh d manding lead, and everyone for 52 points. Sherman re- 80s 80s ColoradoC ld CharlestonChlh 100s Las Springs Kansas 80s 100+ Wichitahit St.. Louis LouLouisville at the Buffalo Niagara Con- sponded with GOSPELER for VegasV City Raleighihh 70s 90s 90s vention Center could have 94, only for Richards to play LosA AngeAngelesl 70s CChCharlottehltt l Santaanta Fe Memphishih Nashvilleh ill spelled out what would come DEGUSTED for 65 more. The 80s 100s PhoenixPh AlbuquerqueAlb q q Oklahomak homa City ColumbiaC b San Diego LLittlee Rockk AtlantaA t Warm Rain next: Nigel Richards was slugfest finished with Sher- TucsonTuc 70s 80s DDallas Birmingham 90s about to win another North man winning on the game’s Ft..Wor. Worth Cold ElP Paso JacksonJ k T-storms Mobilebil Jacksonville American Scrabble Champi- final move. 50s AustinAtiA onship. The second game was Houston 80s Stationary Snow New Orleans Orlandold “Everyone thought that tighter, but oddly a more 60s 80s 90s Sanan AntonioA TaTampap AnchorageA h g 90s Showers Flurries the tournament was over,” comfortable win for Sher- Honolulu 100s Miami 80s said Ben Schoenbrun, the AFP/GETTY IMAGES man. He led by 139 until 70s Ice tournament’s fourth-place Nigel Richards in 2015 Richards bingo-ed—or finisher. played all seven letters—on U.S. Forecasts Today Tomorrow Today Tomorrow City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W Everyone was wrong. days in Buffalo playing his final move to bring the s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Omaha 89 67 s 92 69 s Frankfurt 75 52 pc 83 60 s The only other player words that might look for- final score to 451-422. The t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Orlando 90 74 t 91 72 t Geneva 80 54 pc 84 60 pc with a plausible chance hap- eign to any non-English players were tied with 22 Today Tomorrow Philadelphia 83 70 t 83 71 t Havana 89 70 pc 90 72 pc City Hi Lo W Hi Lo W pened to be Joel Sherman, a speaker—CURARAS and wins each. Phoenix 100 83 pc 104 82 s Hong Kong 87 82 t 89 82 sh quirky tile god known as ASHLARS, for example—en It didn’t take long for Anchorage 61 56 c 63 56 r Pittsburgh 78 64 t 78 64 t Istanbul 86 73 s 85 73 s Atlanta 88 70 pc 91 70 pc Portland, Maine 72 62 pc 73 65 pc Jakarta 91 76 s 91 75 t “G.I. Joel,” who isn’t quite route to big wins. Richards to reassert his Austin 90 73 t 92 74 t Portland, Ore. 77 59 c 81 59 s Jerusalem 87 68 s 86 68 s G.I. Joe; his nickname de- That was the first of two dominance in the final game. Baltimore 86 68 t 84 70 t Sacramento 95 59 pc 89 57 pc Johannesburg 62 40 s 70 48 c rives from his gastrointesti- consecutive losses for Sher- At various points he led by Boise 102 63 pc 91 61 pc St. Louis 88 70 pc 90 68 s London 72 60 pc 69 59 pc Boston 7467sh7570sh Salt Lake City 100 71 pc 96 69 pc Madrid 95 70 s 96 66 pc nal problems. But he is the man, sending him down to 79, then 77 and later 74. By Burlington 82 61 pc 83 64 pc San Francisco 70 52 pc 67 53 pc Manila 84 79 t 84 79 t winner of the 2002 national eighth place while Richards’s the time Sherman clawed Charlotte 90 71 t 91 68 t SantaFe 8053pc8153pc Melbourne 54 41 sh 57 49 sh and 1997 world titles, feats lead only grew larger. By the back into it, Richards played Chicago 87 69 s 86 67 pc Seattle 73 58 c 78 58 s Mexico City 73 56 t 68 56 t Cleveland 82 67 t 82 67 pc Sioux Falls 88 65 s 87 66 s Milan 90 70 pc 86 68 s that make him one of the time the tournament reached a 42-point move to go up by Dallas 84 72 t 84 72 t Wash., D.C. 86 72 t 86 73 t Moscow 80 58 pc 81 53 s most accomplished players the 29th of 31 rounds, Sher- 44. Denver 9160pc9157pc Mumbai 85 81 sh 86 81 sh in Scrabble history. man had rattled off six wins Sherman didn’t have any Detroit 85 65 pc 86 65 pc International Paris 77 59 pc 87 63 s Honolulu 89 77 sh 90 77 pc Rio de Janeiro 76 63 s 75 65 pc But there was a problem. in a row. The surge took him vowels on his rack and there Today Tomorrow Houston 89 78 t 92 76 t Riyadh 109 81 s 110 83 s City Hi Lo W Hi Lo W Sherman was chasing the to second place with a 20-8 were no tiles left in the bag. Indianapolis 85 65 t 85 65 s Rome 90 70 s 89 68 s most accomplished player in record. Richards, though, But he had a blank, to go Kansas City 90 68 s 91 70 pc Amsterdam 67 53 pc 78 62 pc San Juan 87 80 t 90 78 s Las Vegas 105 85 s 104 85 s Athens 88 73 s 89 73 s Seoul 97 81 s 95 80 pc Scrabble history, a man from was 22-6. Sherman would along with GNRSST. It Little Rock 92 70 pc 88 72 t Baghdad 111 83 s 113 84 s Shanghai 94 81 t 91 82 r New Zealand who represents have the chance to play turned out to make a pretty Los Angeles 87 68 s 84 66 s Bangkok 88 79 c 88 79 c Singapore 89 81 c 88 80 pc Malaysia in competition. Richards three times in a easy seven-letter word. Miami 89 76 t 89 78 pc Beijing 89 75 t 87 76 t Sydney 77 49 s 62 48 s Milwaukee 85 67 pc 82 66 pc Berlin 73 54 pc 79 61 pc Taipei City 95 79 pc 96 80 pc The idea of Richards sur- row to finish the tourna- Sherman bingo-ed with Minneapolis 92 70 s 91 71 s Brussels 70 56 pc 79 62 pc Tokyo 89 78 t 87 80 t rendering his lead was pre- ment. Sherman needed to STRINGS. He went from Nashville 91 69 c 90 67 c Buenos Aires 60 51 pc 64 50 pc Toronto 82 64 s 83 67 pc posterous. The five-time win all three, against the down by 44 to up by 40. The New Orleans 90 74 c 91 78 pc Dubai 107 88 s 101 91 s Vancouver 71 59 c 73 59 sh New York City 76 68 t 79 70 t Dublin 67 59 r 68 55 sh Warsaw 71 56 t 75 56 pc North American champion best player ever, to win. game was over—and perhaps Oklahoma City 88 67 t 83 66 t Edinburgh 65 53 c 67 53 sh Zurich 79 50 pc 84 57 pc and three-time world cham- The early moves were a the game’s greatest come- pion had spent his first few tense prelude to the harrow- back was complete. Bots Vs. Trolls Still Going How to deal with the A 96-year-old battery internet’s dark pioneer strives for his side. B7 EXCHANGE next breakthrough. B5

BUSINESS | FINANCE | TECHNOLOGY | MANAGEMENT THE WALL STREET JOURNAL. **** SATURDAY/SUNDAY, AUGUST 11 - 12, 2018 | B1

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an Watson cure cancer? cancers, and treatments are evolving faster than That’s what International Business Ma- Watson’s human trainers can update the system. Dr. chines Corp. asked soon after its artificial- IBM HAS A Chase of Columbia said he withdrew as an adviser intelligence system beat humans at the after he grew disappointed in IBM’s direction for C quiz show “Jeopardy!” in 2011. Watson marketing the technology. could read documents quickly and find No published research shows Watson improving patterns in data. Could it match patient informa- patient outcomes. tion with the latest in medical studies to deliver Artificial intelligence has the potential to reinvent personalized treatment recommendations? WATSON the world, from how businesses operate to the types of “Watson represents a technology breakthrough that jobs people hold to the way wars are fought. In health can help physicians improve patient outcomes,” said care, AI promises to help doctors diagnose and treat Herbert Chase, a professor of biomedical informatics at diseases as well as help people track their own well- Columbia University, in a 2012 IBM press release. ness and monitor chronic conditions. Watson’s strug- Six years and billions of dollars later, the diagno- gles suggest that revolution remains some way off. sis for Watson is gloomy. DILEMMA IBM said Watson has important cancer-care ben- More than a dozen IBM partners and clients have efits, like helping doctors keep up with medical halted or shrunk Watson’s oncology-related proj- knowledge. “This is making a difference,” said John ects. Watson cancer applications have had limited Big Blue promised its AI platform would be a big Kelly, IBM senior vice president. “The data says and impact on patients, according to dozens of inter- is validating that we’re on the right track.” views with medical centers, companies and doctors step forward in treating cancer. But after pouring In health care, AI software is starting to help ra- who have used it, as well as documents reviewed by billions into the project, the diagnosis is gloomy. diologists and pathologists analyze X-rays and digi- The Wall Street Journal. tal images of biopsies. Companies and clinicians are In many cases, the tools didn’t add much value. developing simple text-based chatbots that aim to In some cases, Watson wasn’t accurate. Watson can BY DANIELA HERNANDEZ help people manage mental-health issues like anxi- be tripped up by a lack of data in rare or recurring AND TED GREENWALD Pleaseturntothenextpage

ON BUSINESS | JOHN D. STOLL VF Looks to Cast Off Tesla Buyout Puts Board Lee, Wrangler Brands On Hot Seat Its jeans division’s sales A typical multiple in the apparel industry could value the business at Many members have have been declining several billion dollars. It isn’t clear what other brands might be part of close relations with Musk BY DANA MATTIOLI the company’s review. BY ROLFE WINKLER AND SUZANNE KAPNER The overall U.S. jeans category had total sales of $16.2 billion in VF Corp., owner of Lee and 2017, down from $18.8 billion in The people tasked with oversee- Wrangler jeans, is exploring strate- 2013, according to Euromonitor In- ing Elon Musk’s plans for Tesla gic options for its denim business ternational. Inc.—its board of directors—have that could include a sale or spinoff One big brand bucking the down- received solid support from share- of the classic American brands, ac- ward trend is Levi Strauss & Co., holders over the years but criticism cording to people familiar with the whose revenue increased 8% in its from some investors and advocates situation. most recent fiscal year. who say they lack independence. The apparel conglomerate has VF’s jeans division, which also Pepsi’s Indra Nooyi says she still has ‘scars’ from her early years as CEO. Boards have enormous responsi- owned Wrangler and Lee for de- includes the Rustler and Rock & Re- bility in corporate deals, especially cades and they were once its core, public brands, hasn’t fared as well. ones as complex and fraught as the but the company’s jeans sales have Sales have fallen nearly 5% since Pepsi’s Indra Nooyi Proved buyout of Tesla that Mr. Musk sug- 2015, while profit in the division is gested this past week. Most of down 2% over that period. Tesla’s directors have close business VF sells its jeans through mass The Power of Stability or personal relationships with Mr. The company has been merchants like Walmart Inc. and Musk that they would have to bal- paring back its portfolio department stores, many of which ance against their obligation to en- have curtailed orders in recent Indra Nooyi didn’t and diversified into healthier sure that any deal serves the inter- to focus on its fastest- months as they sell off excess sup- best her biggest ri- snack and drink options before ests of Tesla shareholders beyond growing lines. ply. On its most recent earnings call val’s shareholder re- many competitors did. its famous leader, corporate gover- in July, VF forecast growth this turns during her 12 And not only did she retire nance specialists say. year for most divisions except years as chief execu- without incident, but she also The board’s role in the possible jeans, where revenue is expected to tive of PepsiCo Inc. worked with her company to buyout was clouded by Mr. Musk’s slowed in recent years as more be unchanged from last year. Nor did PepsiCo’s re- groom a successor. As a sign of ap- unusual way of announcing the women opt for yoga pants or pre- VF Chief Executive Steven Ren- sults beat the market. preciation, the market barely idea—in a sudden, very brief tweet mium denim brands like J Brand or dle did allude to a possible recov- But when PepsiCo announced her budged when her departure was on Tuesday. That tweet was fol- Frame. ery for the denim business, particu- plans to retire earlier this week, she announced. lowed more than 20 hours later by a VF, which has a market valuation larly Wrangler, which he said had had plenty to be proud of. Maximized shareholder returns short statement from six directors of $38 billion, has been paring back shown improved results for four Ms. Nooyi is retiring with a are valuable. But they aren’t going saying the board had met several its wide-ranging portfolio to focus consecutive quarters. “Is there a sterling reputation. She is credited to happen, or be sustained, with- times since Mr. Musk told it of his on its fastest-growing brands, such jeans cycle going on out there?” Mr. with piloting PepsiCo through a out management stability. go-private idea last week, and that it as Vans sneakers, The North Face Rendle said in July. “Maybe.” rough period for the industry, as And recent events have shown was “taking the appropriate next jackets, and Timberland boots. Unlike today, when jeans are of- consumer tastes moved away from that stability is not something to steps to evaluate this.” VF’s denim business last year ten a fashion statement, the Lee sugary drinks. She successfully be taken for granted. The sequence of events suggests had $2.66 billion in sales and $422 and Wrangler brands were origi- fought off an activist investor’s at- There have been 44 CEO exits at that “the board review has been million in profit. PleaseturntopageB13 tempt to break up the company PleaseturntopageB6 PleaseturntopageB12 B2 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. THE SCORE

THE BUSINESS WEEK IN 7 STOCKS

TESLA INC. SNAP INC. DROPBOX INC. PERFORMANCE OF COMPANIES WITH BROKEN DEALS “Am considering taking Tesla THIS WEEK For the first time since Dropbox logged better-than- private at $420. Funding se- Snap’s founding in 2011, the expected revenue and user Source: SIX TSLA cured.” That casually worded SNAP disappearing-picture app saw DBX growth after the market tweet by Chief Executive Elon 10% some of its users vanish. closed Thursday. But an an- 11% Musk, coming three hours Sinclair 6.8% Snap executives disclosed a 9.8% nouncement that its chief into Tuesday’s session, sent Broadcast 2% drop in daily active users operating officer, Dennis the electric car maker’s often-volatile 5 Group from last quarter during Tuesday eve- Woodside, would step down next shares sharply higher before trading ning’s earnings call and indicated that month shook investors, who sent the was halted as investors cast about for Tribune Media the trends could continue. They also an- file-sharing company’s shares down 0 details. The shares ended Tuesday up nounced that Saudi Arabian Prince al- 9.8% Friday. Separately, the company 11% after trading resumed and the com- Waleed bin Talal took a 2.3% stake dur- said in a securities filing that 358.2 pany confirmed Mr. Musk’s thinking. Se- ing the last quarter. Snap’s shares million shares held by executives, direc- –5 curities regulators the next day opened ended Wednesday down 6.8%. Snap’s tors and others would become available an inquiry into whether Mr. Musk had a decline follows sharp selloffs of other for sale when the market closes Aug. factual basis for his tweet, suggesting a –10 social-media companies in recent weeks 23, the end of a 180-day restricted sale possible enforcement investigation if as investors question whether the in- period following its initial public offer- they suspect it was misleading or false. dustry is oversaturated. ing in March. –15

PEPSICO INC. YELP INC. NIKE INC. –20 Rite Aid CEO Indra Nooyi said she will Mon. Tues. Wed. Thurs. Fri. Yelp shares soared 27% Two women who used to stepdownOct.3topursue Thursday after investors work at the athletic-wear PEP other opportunities, handing YELP gave a positive review of the NKE company filed a lawsuit in the reins to Ramon Laguarta, business-rating company’s federal court alleging that 0.9% a trusted lieutenant who was 27% better-than-expected second- 0.7% Nike discriminated against elevated to the No. 2 spot TRIBUNE MEDIA CO. quarter results. Revenue rose them in pay and career ad- last year. During her 12 years atop the Call it the week of the dead deal. Tribune Media late 12% to $235 million, and net income vancement. The suit, which seeks class- soda-and-snacks giant, Ms. Nooyi TRCO Wednesday canceled its $3.9 billion merger agreement climbed 35% to $10.7 million, or 12 action status, is the latest development pushed PepsiCo to embrace healthier with Sinclair Broadcast Group and sued the rival TV cents a share, from $7.9 million, or 9 as the company struggles to manage products, such as hummus and kombu- 2.9% station owner for $1 billion for allegedly failing to make cents a share, a year earlier. The com- criticism over how it treats female em- cha, but was often criticized for neglect- sufficient efforts to win approval for the deal. Tribune’s pany said its quarterly results were ployees. Nike has purged at least 11 ex- ing the company’s core brands and fall- boosted by record growth in paying ad- ecutives amid complaints about inappro- stock rose 2.9% on Thursday, and Sinclair gained 2.6%. Sepa- ing behind rival Coca-Cola Co. in market rately, mounting investor pressure led Rite Aid Corp. and pri- vertising accounts. Yelp also raised the priate behavior. And last month, Nike capitalization. Shares were flattish, edg- low end of its full-year revenue forecast, said it would give raises to 7,000 staff- as investors inter- vately held Albertsons Cos. to abandon their planned $24 billion to a range of $952 million to $967 mil- ers after a review of its pay practices. ing up 0.9% Monday union, sending the pharmacy’s shares down 11% Thursday. preted her exit as a possible catalyst for lion, compared with a prior forecast of Shares eased 0.7% Friday. a company restructuring. $943 million to $967 million. —Laine Higgins and Caitlin Ostroff

treat most of “what causes 80% of with the pace of discovery but said Watson’s recommendations, so it piloted at multiple cancer centers in the cancer in the world.” that machines will be able to learn rarely affects treatment, he said, the U.S. Doctors at several of these IBM Has a The largest AI product in the faster than humans. but it has helped to attract patients centers said results weren’t always Watson Health portfolio is Watson Dr. Kris still believes in the tech- to the center. He declined to dis- accurate, and when they were, they Watson for Oncology, for which IBM typi- nology. “Is it as nuanced as we’d close what Jupiter pays IBM. often provided information oncolo- cally charges $200 to $1,000 per like? Is it 100% up-to-date? No,” he Watson for Oncology has made gists already knew. patient, plus consulting fees in said. “But for what it is, it’s pretty the most headway in Asia—a less “The discomfort that I have—and Dilemma some cases, according to Mr. Kelly. darned good.” lucrative health-care market than that others have had with using it— After a doctor enters information IBM initially planned to meld the U.S. In India, Manipal Hospitals, has been the sense that you never Continuedfromthepriorpage about a patient’s medical status, the medical-claims databases and elec- a network of 15 facilities, adopted know what you’re really going to ety and depression in therapy-like application recommends treatments tronic health records, among other the product in 2016 for a multimil- get…and how much faith you can conversations. by analyzing published research data troves, from companies it lion-dollar fee over five years, ac- put in those results,” said Lukas Recommending personal medical that might be relevant. bought into one cohesive system cording to Ajay Bakshi, Manipal’s Wartman of the McDonnell Genome treatment is a taller order. The soft- New York’s Memorial Sloan Ket- that would make Watson’s health- chief executive from 2014 to 2017, Institute at the Washington Univer- ware needs to be trained with data tering Cancer Center has been help- care products smarter. It never did, who now heads a Singapore-based sity School of Medicine in St. Louis. on what has worked in the past, in- ing IBM train the software since in part because it underestimated hospital network. Dr. Wartman said he rarely uses the cluding details on patients’ medical 2012. (It doesn’t use the software the complexity, according to a for- At first, Manipal used Watson to system, despite having complimen- histories and treatment outcomes. for patient care.) The hospital’s mer employee and a hospital execu- recommend treatment options for all tary access. That information is often recorded IBM said it has gotten good feed- in different formats and owned by back about the product from clients different companies, and isn’t al- and research partners, and that its ways complete or consistent. product provides supporting evi- Moreover, human doctors still dence for the recommendations it have a lot to learn about the sci- makes. Mr. Kelly said he was glad ence of disease, including cancer. Watson agreed with physicians Oncology won’t be “a great space most of the time. for making [AI] products” until Dr. Wartman’s organization was there’s better data about patients, one of 14 IBM partners announced in spanning genetic, environmental, May 2015, with a goal of enabling lifestyle and health information, clinicians to use Watson for Genom- said Bob Kocher, a medical doctor ics on a broad range of patients by and partner at venture-capital firm the end of that year. The system was Venrock in Palo Alto, Calif. In the not in clinical use at the 11 centers near term, most of the benefits the Journal reached for comment, from AI in the health-care field will including Cleveland Clinic, Yale Can- come in administrative tasks such cer Center, the University of South- as billing, he added. ern California’s Center for Applied IBM promotes Watson—which Molecular Medicine and the Univer- powers AI applications such as on- sity of North Carolina Lineberger line customer-service assistants to a Comprehensive Cancer Center. range of industries—as a symbol of Perhaps the largest clinical user its technological prowess and the of Watson for Genomics has been engine of the company’s growth. the U.S. Department of Veterans IBM spent $15 billion on Watson Affairs. and related efforts as of 2015, ac- In June 2016, IBM formed a part- cording to that year’s annual report. nership with the VA with the goal Big Blue has been banking on ar- of using the product on 10,000 vet- tificial intelligence to help drive its erans within two years. So far, doc- transformation from building and tors there have used it on more maintaining information technology than 3,000 patients, according to systems on customers’ premises to Michael Kelley, a VA oncologist. providing newer services based on To use Watson for Genomics, the cloud computing. IBM’s total reve- VA sends tumor samples to a third- nue has fallen every year since party vendor that does a genetic

2012, though it has ticked up in the TOP: D.L. ANDERSON FORanalysis. THE WALL STREET JOURNAL; BOTTOM: SETH WENIG/ASSOCIATED PRESS Dr. Kelley uploads the re- company’s three most recent fiscal Department of Veterans Affairs oncologist Michael Kelley working with Watson for Genomics on July 26, above. sults, plus the cancer type, to Wat- quarters compared with a year ear- Below, ‘Jeopardy!’ champions Ken Jennings, left, and Brad Rutter, right, playing Watson on Jan. 13, 2011. son, which returns a ranked list of lier, thanks largely to sales of main- possible treatments based on stud- frame computers. Big Blues ies describing what has worked on Sales in the cognitive solutions cases with similar genetics. IBM's annual revenue fell every year division, which includes Watson, Dr. Kelley said Watson’s recom- starting in 2012. grew just 1% in 2017 after adjusting mendations can be wrong, even for for currency changes. In its latest $120 billion tried-and-true treatments. On the quarterly earnings report, the divi- other hand, he said, it is fast and sion’s sales fell 1.3% to $4.58 billion 100 useful at finding relevant medical after adjusting for currency changes. articles and saving time. Health care is IBM’s most impor- 80 VA doctors don’t discuss Wat- tant target for AI, said Mr. Kelly. In son’s suggestions with patients. Pat- 2017, he told the Journal the com- rick McGuire, a patient of Dr. Kel- 60 pany had “bet the ranch” on it. The ley’s, was unaware it recommended company has spent almost $5 bil- an immunotherapy for his cancer 40 lion on acquisitions since 2015 to type until recently. The 45-year-old feed health-related expertise into retired Navy veteran, who lives in Watson, including Explorys Inc. for 20 Kenly, N.C., said he was happy AI electronic health records and Tru- played a role in his current treat- ven Health Analytics Inc. for insur- 0 ment, which seems to be working ance claims. 2007 ’09 ’11 ’13 ’15 ’17 although it hasn’t completely Giant rivals including Alphabet Source: FactSet shrunk his tumor. He said his doc- Inc.’s Google, Amazon.com Inc., Mi- THE WALL STREET JOURNAL. tors will re-evaluate its effective- crosoft Corp. and Philips NV have ness in a couple of months. also entered the market, along with specialists work with IBM engineers tive who was a former client. cancer patients, said oncologist S.P. In another instance, Watson health-care-focused startups, medi- to rank relevant features of medical Mr. Kelly said IBM was actively Somashekhar. It found the software identified a therapy for a type of cal-record companies and insurers. histories like tumor location and working on the integration. Among agreed with doctors most of the gastric cancer associated with a Watson’s health products include coexisting conditions. They also patients who went through the sys- time, so Manipal stopped using Wat- certain genetic alteration and cited non-cancer offerings such as work- rank medical studies of a given tem, he said, Watson’s treatment son on every patient, he said. It now a paper Dr. Kelley said he didn’t flow-management systems for therapy. Then they evaluate Wat- recommendations changed the uses Watson only in difficult cases, think he would have found on his health-care providers and wellness son’s ability to match test cases course of care in 2% to 10% of or roughly 30% of patients. Watson’s own. He sent that information to apps. Cancer-related products have with treatments and help the engi- cases—or roughly 1,680 to 8,400 recommendations influence care in the patient’s physician and the pa- “touched” roughly 84,000 patients neers tune the output until it patients so far. 9% of those cases, he said. tient was treated accordingly. The and have been used by 230 institu- agrees with the doctors’ judgment. Jupiter Medical Center in Jupiter, IBM said the number of Manipal patient didn’t respond to the medi- tions, Mr. Kelly said in a recent in- “It’s still a work in progress,” Fla., began using Watson for Oncol- patients using Watson has remained cation, he said. terview. He wouldn’t disclose reve- said oncologist Mark Kris, who ogy in clinical care for lung, breast steady since January 2017. The unpaid project, originally nue from oncology-related offerings coordinates Watson’s cancer and gynecological cancer patients in Other key cancer applications— slated to conclude in July, will con- but said it has been doubling annu- training. He said keeping pace March 2017. Today, Watson provides Watson for Genomics and Watson tinue for another year. The VA is ally in recent years. with rapidly evolving cancer an additional voice on a cancer-care Clinical Trial Matching—aim to pair also testing the reliability of other In June 2017, Ginni Rometty, treatments has proved to be committee that evaluates 10 to 15 the genomic data of patients’ tu- similar services. IBM’s chief executive, president and tougher than he imagined. cases a week, said K. Adam Lee, mors to cancer drugs or drug trials, “There’s a lot of promise for AI,” chairwoman, told CNBC that Wat- IBM’s Mr. Kelly agreed it was dif- head of the thoracic-surgery unit. among other functions. Dr. Kelley said, but for now, “that son will be able to diagnose and ficult “for anything to keep up” Humans generally agree with Watson for Genomics has been promise is not realized.” THE WALL STREET JOURNAL. ******* Saturday/Sunday, August 11 - 12, 2018 | B3 BUSINESS NEWS Cigna Deal U.S.-Built Cars Miss Out in China Scores Reduction in tariff for additional safety checks, which Daimler said Thursday gives advantage to it has been experiencing in Against imports from Japan Shanghai. Chinese customs officials and Germany didn’t respond to a request for Icahn comment late Friday. BY CARA LOMBARDO BY TREFOR MOSS BMW has raised prices on two imported SUV models as a Carl Icahn’s effort to find Global auto makers shipped result of the new tariffs, and enough allies to block Cigna a record $7.4 billion worth of Tesla Inc. has raised prices on Corp.’s $54 billion deal for vehicles to China in July, as its Model S and Model X im- pharmacy-benefit manager Ex- European and Japanese com- ports. Ford Motor Co., strug- press Scripts Holding Co. just panies largely benefited from gling in China—where it sold got a little harder. a tariff cut that excludes their 84,000 imported Lincoln and Institutional Shareholder U.S. counterparts. Ford-brand vehicles last Services, one of two major The July 1 tariff reduction year—has so far held off price proxy-advisory firms, is rec- to 15% from 25% allows for increases. ommending shareholders of lower retail prices, which en- “We encourage both gov- the health insurer and Express couraged foreign manufactur- ernments to continue to work Scripts support the proposed ers to send 165,000 cars into together through negotiation purchase in a vote later this the market last month, break- to resolve issues,” a Ford

month, according to reports ing the previous record of YONHAP NEWS/ZUMA PRESS spokesman said. ISS clients received Friday that 134,000 set in July 2014, ac- A BMW car fire in South Korea this month. The company has flagged a faulty exhaust component. General Motors Co. imports were viewed by The Wall cording to customs data. into China are minimal, but it Street Journal. U.S. auto makers, however, Recalls Press BMW rea this year. by a defect with the exhaust- ships significant numbers of The news sent shares of Ex- are blocked from the bonanza BMW, the second-most gas recirculation cooler. China-built vehicles to the U.S. press Scripts up 2.2% to in what is the world’s largest In South Korea popular foreign car brand in the “The problem becomes The company builds the Buick $83.64 on Friday, as the odds auto market. Amid trade ten- country after Daimler AG’s slowly apparent and you can Envision SUV exclusively in the takeover will be completed sions with the U.S., China last Mercedes-Benz, last month is- smell fumes. In rare cases it China; last year it sold 41,000 appeared to improve. The month added a punitive 25% South Korea urged owners sued a recall of about 106,000 can lead to a fire,” BMW Envisions, or a fifth of the ve- stock still trades well below tariff on U.S.-built vehicles for of recalled BMWs to take their vehicles spanning 42 different spokesman Jochen Frey said. hicle’s production, to custom- the price of about $96 a share a total of 40%. An agent at a vehicles for safety checks after models, including the 520d As instances of fires contin- ers in the U.S. Last month GM in cash and stock that Cigna in Shanghai-based trading com- reports of dozens of vehicle model that has been involved ued to be reported, the coun- applied for an exemption from March agreed to pay for Ex- pany said American imports fires, which BMW has largely in the most fires. No injuries try’s transportation minister, U.S. import tariffs, saying it press Scripts. Cigna shares fell are now effectively beyond the blamed on a faulty exhaust have been reported in South Kim Hyun-mee, on Wednesday would be uneconomical to set 1.2% to $183.28. means of all but the most af- component. Korea, nor in Europe, where promised a “thorough” investi- up a second Envision produc- While acknowledging Mr. fluent customers. Transportation Ministry offi- BMW has issued similar recalls. gation into the fires, adding tion line in the U.S. Icahn’s concern that the deal China’s auto market slowed cials, already investigating On Monday, Kim Hyo-joon, that the government may pur- The U.S. and China have so would take Cigna deeper into in July despite the import BMW AG over the blazes, an- chairman of the local BMW sue punitive damages on behalf far imposed 25% tariffs on $34 the rapidly evolving prescrip- surge, with sales dropping 4% nounced new safety policies on unit, bowed in apology before of consumers. BMW is also fac- billion in goods. Washington tion-drug industry, ISS said from a year earlier to 1.89 mil- Friday, saying the recalled vehi- domestic news media and ing class-action lawsuits from has said it will apply the tar- walking away from it “could lion vehicles, the government- cles posed a danger to the pub- pledged to cooperate closely car owners, according to law- iffs to an additional $16 billion leave the company exposed to backed China Association of lic. They said 36 vehicle fires with authorities to conduct yers representing the buyers. in imports later this month, the legitimate long-term Automobile Manufacturers potentially related to the defect safety tests. The company said —Yun-hwan Chae and Beijing has vowed to re- threat of rising health-care said Friday. Passenger-car had been reported in South Ko- the car fires had been caused and William Boston spond in kind. costs.” sales fell 5.3% to 1.59 million, State media has also been ISS concluded that the while sales of commercial ve- ratcheting up anti-U.S. trade deal’s potential benefits, in- hicles rose 3.3% to 300,000. of 2018, vehicle sales were up makers bypass tariffs by build- entry-level Panamera, which rhetoric, at the same time cluding increased scale and Xu Haidong, assistant sec- 4.3% from a year earlier, with ing vehicles locally through now retails for $145,600. seeking to quell criticism at earnings, outweigh the con- retary-general at the associa- electrics in the lead. Driven by joint ventures with Chinese For BMW AG and Daimler home. In a front-page news cerns raised by Mr. Icahn. tion, said July is typically slow government policy, electric- partners, luxury imports are a AG, which imported the most story, the People’s Daily rebut- The billionaire activist in- but the effect of the U.S.-China vehicle sales nearly doubled in lucrative niche for some. cars into China last year, the ted the idea that the trade dis- vestor, who owns a 0.56% trade friction on consumer the first seven months to just For high-end brands im- tariff changes are a mixed bag. pute makes China less attrac- stake in Cigna, has been urging confidence is making this under half a million, including ported from Europe and They allow price cuts on their tive to foreign investors, other shareholders to reject summer even slower. He a 48% jump in July to 84,000. Japan, such as Land Rover, European-built vehicles, but pointing to Tesla’s decision to the deal, which he calls a “$60 added that while Chinese con- The association expects Lexus and Porsche, July’s tar- not on the sport-utility vehi- build a factory in Shanghai billion folly.” He doesn’t think sumers feel “unsteady,” there auto sales for the year to be iff reduction created relative cles the two companies make and BMW’s plan to increase Cigna should spend that much is no sign yet of a backlash up just 2% to 3% amid weak bargains. Porsche, for exam- in the U.S. investments in China. money on Express Scripts, a against U.S. brands in general. consumer confidence. ple, was able to chop nearly Compounding problems for —Liyan Qi pharmacy-benefit manager For the first seven months While most foreign auto $12,000 off the price of the those SUVs are customs delays contributed to this article. that could see its business model change under a Trump administration proposal to lower drug prices. He is also concerned about the changing FDA Approves First ‘Gene Silencing’ Drug pharmacy-industry landscape, especially as Amazon.com Inc. BY PETER LOFTUS Yet patients haven’t had the amid rising drug prices. for turning genes on and off. effectively than older drug expands its presence. option of an approved treat- Gene silencing is the latest The body’s molecular messen- technologies. But a series of Cigna has said Mr. Icahn The Food and Drug Admin- ment. And the drug’s regula- new technology expanding the gers, known as RNA, flick setbacks and technical chal- doesn’t understand the dy- istration approved the first tory green light could pave the armament of drugs, following these genetic switches. lenges damped enthusiasm for namics of health care and ap- drug that combats disease by way for more of these gene-si- therapies that mobilize the Onpattro is essentially a the field. A big challenge: de- pears to be betting against the silencing the genes driving it, lencing drugs to be approved immune system, replace defec- synthetic strand of RNA that livering the RNAi drugs’ pay- deal for a profit. Hedge fund the newest technology trans- for other, more prevalent dis- tive genes and weaponize silences—technically, inter- load into certain human cells. Glenview Capital Management forming the arsenal of medi- eases, especially in the liver, cells. feres with—the genes playing The RNAi setbacks “shook LLC, which has a $1.3 billion cines. such as hepatitis B. “This approval is part of a a role in the life-threatening the faith of the outside world stake split between Cigna and Onpattro, from Alnylam Alnylam said the list price broader wave of advances that genetic disease called heredi- on what could happen with Express Scripts, on Thursday Pharmaceuticals Inc., is the for the average U.S. patient allow us to treat disease by ac- tary transthyretin-mediated RNAi,” Alnylam Chief Execu- publicly urged other Cigna first treatment approved to will be $450,000 annually, or tually targeting the root cause, amyloidosis. The FDA ap- tive John Maraganore said in shareholders to support the treat nerve damage caused by $345,000 after rebates. enabling us to arrest or re- proved Onpattro specifically to an interview. “We never lost deal. Glenview said it will save a genetic disorder that also Alnylam said it has reached verse a condition, rather than treat peripheral nerve disease confidence in it.” the companies’ customers “bil- causes heart and digestive dis- agreements in principle with only being able to slow its pro- caused by amyloidosis. Onpattro’s side effects in- lions of incremental dollars ease and can be fatal. It is health insurers including Har- gression or treat its symp- RNAi became one of the cluded infusion-related reac- annually.” based on Nobel Prize-winning vard Pilgrim Health Care, to toms,” FDA Commissioner hottest areas of drug-industry tions. Cigna and Express Scripts research that drugmakers have refund a portion of the cost of Scott Gottlieb said Friday. research in the 2000s, on Stifel analyst Paul Matteis shareholders are set to vote had a tough time translating the drug for patients who Onpattro, whose generic hopes it could yield a new estimates the Alnylam drug on the deal Aug. 24. It re- into effective medicines. don’t sufficiently benefit from name is patisiran, silences dis- class of drugs to treat a range could generate about $380 quires signoff from a majority The disease is rare, affect- it. Drugmakers and insurers ease-driving genes using a of diseases, from cancer to million in global sales in 2020 of the outstanding shares of ing fewer than 5,000 people in have increasingly explored technology inspired by the deadly infectious diseases to and could eventually top $1 both companies. the U.S. and 50,000 globally. such deals in recent years body’s own molecular process age-related vision loss, more billion. Monsanto Hit by $289 Million Verdict Nike Ex-Employees Sue,

BY MARIA ARMENTAL Alleging Discrimination BY STU WOO behavior. Nike’s top human-re- A jury has ordered Mon- sources executive said the santo Co. to pay $289.2 mil- Two women filed a lawsuit company has failed to promote lion in a landmark lawsuit against Nike Inc., alleging it enough women and minorities. over whether exposure to two discriminated against them in Last month, Nike said it would of its powerful weed killers pay and career advancement, give raises to some 7,000 staff- caused cancer. the latest development amid ers after an internal review of The jury verdict, in San scrutiny over the company’s its compensation practices. Francisco Superior Court, is workplace culture. In the suit, Kelly Cahill, a the latest setback for Mon- The women say Nike paid former producer and director santo, now part of Bayer AG, them less than male counter- at Nike, alleged that she made as its flagship weed killer parts. The suit, filed Thursday $20,000 less in salary than a Roundup comes under in- in the U.S. District Court in male peer. She said she was creased scrutiny following the Portland, Ore., contained other 2015 determination from the allegations of inappropriate World Health Organization workplace behavior, some of The lawsuit comes that glyphosate, the active in- them from unnamed plaintiffs. gredient in Roundup herbi- The lawsuit, which seeks amid scrutiny over cides, is probably carcino- class-action status, claims how Nike treats genic. Nike “has intentionally and On Friday, in the first of willfully discriminated” female employees.

thousands of lawsuits to go to JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES against women “with respect trial, the jury unanimously A jury found that Monsanto failed to warn Dewayne Johnson, above, of risks tied to Roundup. to pay, promotions, and condi- found that the company’s tions of employment.” It seeks Ranger Pro and Roundup peal. Punitive damages, espe- 1985 but changed its classifi- ternal Monsanto documents that the plaintiffs “are made unable to secure a promotion products presented a “sub- cially those many times higher cation in 1991. proving that Monsanto has whole” from lost compensa- despite performance reviews stantial danger” to consumers, than the compensatory Mr. Partridge said Mon- known for decades that gly- tion and benefits, among that met or exceeded expecta- and that Monsanto knew or awards, are often reduced by santo would “continue to vig- phosate and specifically other damages. tions, according to the suit. should have known of poten- the trial judge or reversed on orously defend this product, Roundup could cause cancer,” “Nike opposes discrimina- Another former Nike em- tial risks and failed to warn appeal. which has a 40-year history of said Brent Wisner, one of Mr. tion of any type and has a ployee, Sara Johnston, was consumers like Dewayne “Lee” “We are sympathetic to Mr. safe use and continues to be a Johnson’s attorneys. longstanding commitment to hired at a starting salary of Johnson. Johnson and his family,” Mon- vital, effective, and safe tool The next trial against Mon- diversity and inclusion,” a $33,000 and was told Nike Mr. Johnson had worked as santo vice president Scott Par- for farmers and others.” santo involving Roundup, also Nike spokeswoman said Fri- wouldn’t negotiate starting a groundskeeper for the Beni- tridge said in a statement. Mr. Johnson’s lawyers had a state case, is scheduled to day. “We are committed to pay, according to the suit. The cia Unified School District in However, he said numerous argued Monsanto knew that begin in October in St. Louis. competitive pay and benefits suit alleged Nike two months the San Francisco Bay-area scientific studies and health testing of glysophate was in- Dates for lawsuits in federal for our employees.” later hired a man into the and was diagnosed with non- authorities in the U.S. and sufficient, and that employees courts have yet to be set. Class-action lawsuits aren’t same role on Ms. Johnston’s Hodgkin lymphoma. other countries found that gly- “ghostwrote” favorable scien- So-called bellwether cases unusual when a big, listed team. His starting annual sal- The jury awarded him $39.2 phosate didn’t cause cancer. tific articles and paid outside are selected to test arguments company faces public criti- ary was $35,000, despite what million in compensatory dam- The U.S. Environmental scientists to publish the arti- and gauge possible recoveries cism. she alleged was the male’s ages and $250 million in puni- Protection Agency originally cles under their names. for other similarly situated Nike has purged at least 11 less relevant experience and tive damages. classified glyphosate as possi- “We were finally able to plaintiffs in an attempt to executives amid complaints lower-level credentials, ac- Monsanto said it would ap- bly carcinogenic to humans in show the jury the secret, in- reach a large-scale resolution. about inappropriate workplace cording to the suit. B4 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. HUMAN CAPITAL RICCARDO ANTIMIANI /ZUMA PRESS

The primary purpose CAPTAIN CLASS | SAM WALKER trucks, and for spinning off the of Fiat Chrysler’s in- company’s Ferrari unit, were later vestor conference on embraced. His preoccupation with June 1 was to roll out debt wasn’t entirely voluntary—Fiat the auto maker’s lat- Why the Future Belongs to Chrysler’s balance sheet had long est five-year plan. been the weakest among major auto First, however, Chief makers—but his dedication to pay- Executive Sergio Marchionne took ing it off may prove to be prescient. the dais. He had some incredible These quests didn’t always work news to share. out. In 2015, for instance, Mr. Mar- The big reveal was this: At long chionne wrote a manifesto about the last, the company’s ledgers con- Challenge-Driven pitfalls of the industry’s “addiction tained slightly more cash than debt. to capital” and became a staunch ad- Audience members were given vocate for consolidation. His public small, candy-filled tins that said: pursuit of merger partners, includ- “Net Cash: How Sweet It Is.” ing General Motors, led nowhere. On the list of milestones most Challenge-driven leadership may CEOs get lathered up about, record Leaders be an excellent way for startups to revenues, unit sales and market cap- innovate. What’s not clear is italization rank high. Prudent book- whether it can be scaled up. CEOs keeping does not. Mr. Marchionne The late Sergio Marchionne ran Fiat Chrysler with an eccentric, unorthodox style and at big companies are often hard- didn’t care, though—he even depressed to step back or be consis- cided to mark the occasion with a a passion for complex problems. New research suggests he was ahead of his time. tently collaborative. Mr. Marchionne rare act of flamboyance. For the first was known to crack the whip and time in 11 years, he put on a tie. ers” whose members share a dis- sway and command structures were miraculous turnaround at Best Buy, show flashes of impatience or ego. Nobody knew that this beknotted tinct set of traits. In many respects, more fluid—leaders stepped for- is one of a handful of current CEOs He quickly discarded executives public appearance would be one of Mr. Marchionne fits the profile. ward or back depending on how who’ve displayed some of these who couldn’t keep pace and often Mr. Marchionne’s last. The following The study began in 2015 when much their expertise was needed. traits. Mr. Joly is widely regarded managed people, as one Fiat biogra- month, after suffering complications Deborah Ancona and Hal Gregersen Leaders were less apt to focus on as a collaborative leader who fo- pher noted, “by stress.” from surgery, the man who’d plucked of the MIT Leadership Center set the social and emotional needs of cuses on tackling complex problems If Fiat Chrysler had been a stable Chrysler from liquidation, merged it out to solve a campus mystery. MIT their followers but more inclined to with an inventive, fluid approach. company on a placid ride, it’s possi- with Fiat and guided both weaklings had produced scores of innovative tolerate their idiosyncrasies. “The big difference between ble that a CEO who likes tilting at to profitability, died at age 66. entrepreneurs whose companies, In these settings, a leader’s job great leaders and good leaders,” he windmills would have done more The consensus view of Mr. Mar- according to one report, employed wasn’t to maintain control, the recently told an audience, “is not harm than good. In the digital age, chionne, relayed by hundreds of trib- more than four million people and the quality of their decisions, it’s however, the increasing levels of utes, is that he possessed an unusual produced nearly $2 trillion in an- the quantity. If you make a lot of complexity, ambiguity and disrup- blend of vision, technical expertise, nual revenue. For some reason, decisions, you’re going to make tion might reward a different brand analytical rigor, open-mindedness however, the school wasn’t widely ‘If you make a lot of mistakes—but that’s OK. You can of leadership. and candor. The remembrances also regarded as a leading incubator for decisions, you’re going correct them because you’ll make Challenge-driven leaders are not agreed on something else: he was a CEOs who run major enterprises. more decisions.” always conventional, predictable or bona fide eccentric. As the researchers studied the to make a lot of mistakes At Fiat Chrysler, Mr. Marchionne polished—but they’re undoubtedly Throughout his 14-year tenure, school’s leadership ethos, they no- —but that’s OK.’ displayed a similar mindset in 2016 self-reliant. Their satisfaction Mr. Marchionne had a leadership ticed that most people who came to when he abruptly scrapped an ex- comes from indulging their own cu- style that defied labels. There was MIT had deep expertise in their pensive plan to produce small cars in riosity. Their leadership is a lifelong no precedent for a straight-talking, fields. They were relentlessly ana- the U.S. based on Fiat technology. process that ends only when they orthodoxy-rejecting, chain-smoking lytical and experimental, were often researchers said. It was to use “We changed midstream,” he told re- run out of time. workaholic who preferred sweaters bored by the status quo and dis- their knowledge and enthusiasm porters, “because the market had On the afternoon of June 1, as to suits, carried up to five cell- dainful of office politics. They to frame a problem “in a way that gone completely the other direction.” Mr. Marchionne opened the floor phones, kept a spartan office close showed little interest in the trap- draws other smart and skilled There’s no question that Mr. Mar- for questions about Fiat Chrysler’s to his engineers and obsessed over pings of power and loathed leaders people toward it.” chionne’s analytical bent and un- future plans, the celebratory tie product details. who took a top-down, order-giving, This challenge-oriented ap- orthodox personal style conform to came off. He’d decided to retire in “God bless you, Sergio,” Morgan egotistical approach. proach is most common among the MIT profile. He was also known early 2019, so this was effectively Stanley analyst Adam Jonas told That stereotypical breed of startups, although many large for building fluid teams of high-func- his final act. Given that the com- Mr. Marchionne during a January leader, Prof. Ancona told me, “is companies have recognized its tioning experts, or as he once de- pany’s stock price had quadrupled conference call. “We’re never going something they don’t want to be.” value and sought MIT’s help in scribed them, “courageous individu- over the past four years, nobody to see anyone like you again.” People at MIT didn’t really follow figuring out how to harness it. als with a hunger for challenges.” would have blamed him for luxuri- This past fall, researchers at MIT leaders—they followed intriguing, “The very nature of companies is The most direct link was his at- ating in his triumphs that day. published a study that might chal- inspiring, barely solvable problems. shifting,” Ms. Ancona said. “This traction to chasing big ideas that Sergio, God bless him, never lenge that perception. The study Their motivation came from finding kind of leadership may be more didn’t always make sense to outsid- quite made it there. “The true finish identified a new subspecies of exec- inventive ways to crack them. On appropriate as we move ahead.” ers. His rationales for phasing out line,” he said, “is the one always yet utives called “challenge-driven lead- these teams, collaboration held Hubert Joly, who engineered a sedans in favor of SUVs and pickup to come.”

PERSONAL BOARD OF DIRECTORS Joel Flory The trusted advisers of top business leaders

CEO and co-founder of VSCO Katy Chris Emily Sean The co-founder of the mobile photo- Shields O’Neill White George sharing platform designed for Vice president of CEO, Evernote Former chief op- Co-founder and people operations erating officer at CEO, Invitae creators says he “thirsts for at VSCO Since meeting at Snapchat; current feedback and connections with a conference in VSCO adviser When at home in others” before taking action. When Mr. Flory regards 2016, the pair East Bay, Calif., Mr. Flory is making personal and Ms. Shields as have quarterly After stops at Mr. Flory turns to business decisions that usually VSCO’s most in- dinners where Facebook, Insta- Mr. George for dispensable hire. they swap stories gram and Snap- advice on corner- means consulting his wife, Cara “She pushes me about their start- chat, Ms. White office leadership Flory, and his co-founder, Greg Lutze. to be tough on ups, their children has a wealth of in- and adopting a Here, four other trusted advisers. problems, but and their affinity dustry experience. growth mindset. soft on people,” for Kim Scott’s She helps Mr. It’s convenient to Age 38 he says. “I book “Radical Flory stay true. have a veteran wouldn’t be here, Candor.” “So many other startup executive Education BS in Industrial Technology nor would VSCO people will give as a neighbor. from Cal Poly San Luis Obispo be here…had it advice on how we Family Two daughters and a dog not been for her.” could grow to- named Harry wards other com- Career highlights Owner of Flory panies, and Emily Photo is always the one Favorite book that’s like, ‘Be “Nonviolent Communica- you.’ ” tion” by Marshall Rosenberg Favorite place to shoot in the Bay Area “Without a doubt the Marin Headlands.” When does you alarm go off on week- days “I wake up every day at 5 a.m.— and, yes, I use the alarm on my iPhone”

ERIC KAYNE FOR THE WALL STREET JOURNAL —Laine Higgins THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | B5 STRATEGY

n the race to make the next leap in battery technology, there is a 96-year-old who won’t give up. Meet the 96-Year-Old Battery Pioneer Who Keeps I Four decades ago, John Goodenough helped invent the battery that is used to re- charge cellphones, iPads and many other of today’s electronic goods. His work made batteries more powerful and portable by introduc- Going and Going ing lithium cobalt oxide to their inner workings. Now Dr. Goodenough wants to kill off that creation by removing the cobalt that meant his lithium- John Goodenough strives for a second breakthrough in battery speed and capacity ion battery could charge faster and last longer. In April, the World War II veteran published research BY SARAH MCFARLANE with three co-authors that he said is being used to develop a proto- type of a liquid-free and cobalt- free battery. “My mission is to try to see if I can transform the battery world before I die,” Dr. Goodenough says. “When I’m no longer able to drive and I’m forced to go into a nursing home, then I suppose I will be retiring.” Better batteries are key for the renewable-energy sector, where supply from sources like wind and solar is so variable that energy needs to be stored for leaner times. Electric cars have struggled to gain traction because their batteries store less fuel than a gas tank. Consumers, meanwhile, want longer battery life in their devices. But developments in batteries have been limited since Dr. Good- enough helped invent the lithium-ion battery in 1980. While there are already batteries that don’t use cobalt, none are as powerful as the lithium-ion ver-

‘[H]e really wants to do something for society with the science he does,’ says a longtime colleague. sion with cobalt. Dr. Goodenough and his research partner, Maria Helena Braga, say initial research shows their battery potentially has double the energy density of the lithium-ion battery. That means, for instance, that an electric car could drive twice as far on one charge versus the lithium-ion battery. This battery also increases in capacity over time, he said. Currently, the ability of batteries to store energy degrades with use. Dr. Goodenough declined to say with whom he is working on a pro- totype, citing confidentiality. Some engineers have expressed skepticism in what Dr. Goode- nough says the battery can do, particularly that it can increase capacity with use. Dr. Goodenough also faces rivals

backed by billion-dollar budgets. FROM TOP TO BOTTOM: BRENT HUMPHREYS FOR THE WALL STREET JOURNAL(3); GETTY IMAGES; COCKRELL SCHOOL OF ENGINEERING, UT; SONY CORP. Tesla Inc. is working with Pana- sonic Corp. on a cobalt-free bat- Through the Years tery and said that it has reduced A brief history of battery its use of the metal in the batter- milestones and changes ies of its new Model 3 electric car. British entrepreneur James Dyson is developing car batteries that he says will be safer, quicker to charge and more powerful. Dr. Goodenough’s own research happened far from a fancy corporate headquarters, in a paper- strewn office at the University of Texas in Austin, where he is a professor of engineering. The physicist hand-writes his research and 1748 doesn’t own a cellphone, shunning The term ‘battery’ is first used the modern, mobile technology by American founding father that his batteries made possible. Benjamin Franklin when he was He drives a 10-year-old Honda, experimenting with electricity. which he hopes will last as long as he does. 1800 Dr. Goodenough says his motiva- The first battery is invented by tion to develop new battery tech- Italian physicist Alessandro nology comes from a desire to help Volta using copper and zinc and electric cars wean society off its Dr. Goodenough, shown at top at a cloth or cardboard soaked dependence on combustion en- the University of Texas at Austin, with salty water. gines, like his Honda’s. Currently, wants to ‘transform the battery the batteries that power a Nissan world before I die.’ Researchers on 1859 Leaf—the world’s first mass-market his team, middle photos, work on The first rechargeable battery is electric passenger car—need to be battery prototypes. At bottom, the invented by French physicist Gas- recharged every 151 miles, against professor during his younger days. ton Plante using lead and acid. the 300 to 400 miles before a gasoline-powered car has to fill up. Dr. Goodenough was raised in 1901 “He is driven by scientific curi- Connecticut by an academic father Thomas Edison files a patent osity, and he really wants to do who was often in debt because he for a rechargeable nickel-iron something for society with the sci- “aspired to be on a social level that battery marketed for use in ence he does,” says Arumugam was a little more than he could af- electric vehicles. Manthiram, a professor of engi- ford,” he says. Not wanting to be a 1976 neering at the University of Texas financial burden, Dr. Goodenough Exxon develops a lithium-based at Austin who has worked with Dr. wore second-hand clothes and won rechargeable battery. Goodenough for 33 years. a scholarship to a Massachusetts Dr. Goodenough never bene- boarding school. Despite having 1980 fited financially from his earlier dyslexia, Dr. Goodenough excelled Dr. John Goodenough introduces invention, having signed the and went to study mathematics at lithium cobalt oxide to the inner rights over to the U.K. govern- Yale University. workings of the battery. ment’s Atomic Energy Research During World War II, Dr. Goode- Establishment, or AERE. Japan’s nough served in the U.S. Army Air 1991 Sony Corp. commercialized the Force as a meteorologist. It was Japan’s Sony battery and the British state re- while waiting to be called up for Corp. commercial- ceived licensing fees from every duty that he read a copy of the was among a handful of veterans As he continues to work on that izes the first lith- battery manufacturer until the book “Science and the Modern the U.S. government selected for battery’s replacement, Dr. Goode- ium-ion battery. patent ran out in 2002. World” by British philosopher Al- further study in either physics or nough is supervising what he says “Sony said we thought you were fred North Whitehead and was in- mathematics. He chose physics. is his final doctoral candidate, a 2009 wealthy because we’d given a lot, a spired. He met his wife, Irene, who died 24-year-old materials science and The U.S. government announces lot, of money to AERE,” Dr. Goode- “I had this overwhelming feeling two years ago of Alzheimer’s, at engineering student. $2.4 billion funding for battery nough says. that came to me that said, ‘If you the University of Chicago and she “Dr. Goodenough says I’m going and electric vehicle projects. Dr. Goodenough arrives at the ever have the opportunity when encouraged him to apply for a pro- to be his last Ph.D. student, but university between 8 and 8:30 a.m. you come back from the Army to fessorship at Britain’s Oxford Uni- apparently he says that every 2018 and leaves around 6 p.m., working go to graduate school, you should versity, where he set up the re- couple of years and then takes on Dr. Goodenough and three co-au- from home throughout the week- study physics,’” he says. search group that created the new candidates,” says student thors publish research on a co- end, Dr. Manthiram says. After the war, Dr. Goodenough lithium-ion battery. Nick Grundish. balt-free and liquid-free battery. B6 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. STRATEGY

It’s Getting Awkward atFox as Disney Deal Looms

Fox’s movie studio could be gutted, but it’s obligated to keep acting like everything is normal EVERETT COLLECTION(2)

BY BEN FRITZ are looking for other jobs. Some auto designers from Ferrari and fear an exodus could start in late Ford in the 1960s and a trio of ecause movies take so August, after the company hands young-adult horror movies in- long to complete and out bonuses for the fiscal year tended to be released in theaters release, running a Hol- that ended in June. within a three-month period, are lywood studio typically To make sure Fox can continue difficult to imagine coming from B means planning two to operating smoothly, Chief Execu- the studio behind “Avengers” and three years in advance. tive Stacey Snider has extended “Christopher Robin.” But just one year from now, the contracts of many executives Disney will release all of Fox’s Twentieth Century Fox may no as long as company policy allows, movies that are complete or in longer exist. typically through 2021, said people production at the time of the ac- That makes it an awkward time close to the studio. quisition, said a person with for the 2,300 employees of the 83- Employees in departments that knowledge of its plans. year-old studio behind “Dead- Disney is almost certain to slash, It’s less certain what will hap- pool 2” and “The Greatest Show- such as theatrical distribution and pen to films still in development man” as they wait to see if Walt marketing, have been a priority so at the time of the takeover. That Disney Co. receives the foreign they don’t defect too soon, one of has made it more difficult for Fox regulatory approvals it needs to the people said. to buy new projects in recent complete its purchase of most of months, said people who work the assets of parent company 21st with the studio. Century Fox Inc., which could Fox has made new deals this happen next year. ‘We’re doing the only year, including for a film based on Fox movie executives are developing new ideas with no certainty Unlike its sibling television stu- thing we know how to the board game “Clue” to be pro- as to what Disney will do with them. The studio was behind dio, Fox’s movie studio is ex- duced by Ryan Reynolds and a new ‘Deadpool,’ top, and ‘TheShape of Water,’ above. pected to be significantly down- do, which is put one foot musical from “Wicked” composer sized once the deal is complete. in front of another.’ Stephen Schwartz. It recently won studio is going to be,” said one approach to animation, bringing in Disney will likely take over Fox’s a bidding war against other stu- movie agent. a new partner to replace an expired two biggest film franchises, Ava- dios for a movie about a former It’s unclear whether Disney will deal with DreamWorks Animation tar and the X-Men, and scale back cop who manipulated the maintain the Fox movie brand and after it was acquired by Comcast production of costly movies that Ms. Snider herself is widely ex- McDonald’s Monopoly game. Ben continue to produce new films un- Corp. The film studio is partnering don’t fit its family-friendly, fran- pected to leave following the ac- Affleck is slated to direct the der it following the acquisition. with the Fox television studio on a chise-focused formula, people quisition, as there is unlikely to be movie, with Matt Damon in the Two Fox movie divisions are big-screen adaptation of the ani- close to both companies have a place for her within the new par- starring role. likely to survive, though. Disney mated series “Bob’s Burgers,” a sec- said. ent company. But some agents and producers CEO Robert Iger has publicly touted ond “Simpsons” movie in develop- Until the deal is done, however, Fox has over the past few are wary of working with Fox Fox Searchlight, which makes ment and a “Family Guy” film that Fox is obligated to keep acting as months remained busy starting given its precarious future. The “prestige” films like last year’s best would mix animation with live ac- if it will survive, people who work work on movies that it plans to re- team behind “Red Notice,” an ac- picture Oscar winner “The Shape of tion, said people with knowledge of at the studio say, which means lease over the next two years. tion script with “Jumanji” and Water” and Fox 2000, which spe- the projects. making movies and developing Some, such as an adaptation of “Fast and Furious” star Dwayne cializes in literary adaptations such At the same time, Ms. Snider is new ideas with no certainty as to Jack London’s novel “Call of the Johnson attached that sparked a as the teen coming-out story “Love, moving her film studio into TV what Disney will end up doing Wild” and of a comic book one bidding war in February, didn’t Simon,” which came out earlier this production, with series in develop- with them. studio executive described as take the potential movie to Fox, year. Their relatively inexpensive ment based on its “Diary of a “We’re doing the only thing we “ ‘Game of Thrones’ with mice,” said a person close to the sale dramas for adults could be valuable Wimpy Kid,” “Ice Age” and “Night know how to do, which is put one which both mix live action with process. for the Hulu streaming service, at the Museum” film franchises. foot in front of another,” said one computer generated effects, could “People are making an effort to which Disney will take control of in Fox Searchlight has expanded into executive at the studio. be easy fits for Disney. include [Fox] out of respect, but the acquisition. television as well. Only adding to the pressure is Others, such a historical drama it’s not anyone’s first choice be- Amid the uncertainty, Ms. Snider —Erich Schwartzel the reality that some employees about the competition between cause you don’t know what the has emphasized a revamp of Fox’s contributed to this article.

Change at the Top holders happy you did your job. Mr. Sheppard says that companies have Pepsi CEO PepsiCo’s CEO Indra Nooyi served for 12 years, far longer than most contemporary CEOs. come to realize that you can’t re- She exits amid a turbulent year for CEO departures. ally secure long-term health with- Median CEO tenure Departures by CEOs of large-cap Performance since Nooyi took over as out considering the needs of cus- Proved Power companies* PepsiCo CEO, weekly tomers, workers and the broader S&P 500 community. 6.0 years 100% Of Stability 80 Coca-Cola In a recent PwC annual survey of 75 nearly 2,000 CEOs, 53% of the chiefs 5.8 PepsiCo ContinuedfrompageB1 60 polled said the purpose of their com- large-cap companies in 2018, accord- 50 pany was to create value for custom- ing to Equilar Inc., and a fair share 5.6 ers, while only 16% said it was to of them have been accompanied by 40 25 create value for shareholders. scandal. Allegations of harassment, 5.4 Mr. Sheppard said the historic 0 breaches of conduct codes and other “notion behind shareholder value 20 indiscretions marred the tenures of 5.2 –25 was an assumption that investors accomplished titans in media, tech bought and held the stock indefi- and the restaurant business. 5.0 0 –50 nitely.” Now, it too often is based on Even abrupt departures un- the trading value of a stock on any 2013 ’14 ’15 ’16 ’17 2008 ’10 ’12 ’14 ’16 ’18† 2006 2010 ’15 clouded by scandal can shake inves- *Includes resignations, retirements and terminations. †2018 departures as of Aug. 1 given day. tors if there is no apparent succes- Sources: Equilar (tenure, departeures); SIX (stocks, S&P 500) THE WALL STREET JOURNAL. More companies are seeking to go sion plan. At Lowes Cos., CEO Robert private in order to escape this cycle, Niblock decided to retire in March first years in the role especially chal- campaigned earlier in the decade he said. For CEOs at public compa- after 13 years at the helm, but the lenging. Earlier this year, speaking unsuccessfully for PepsiCo to spin nies, setting clear priorities and company didn’t have a successor in Ms. Nooyi was given to the World Economic Forum, she off its beverage business. meeting those objectives is essential. place to confront an activist investor said she still has “scars on my back In a statement this past week, Mr. PepsiCo’s incoming head, Ramon questioning the retailer’s financial time to test new theories based on the first six years of my Peltz said the investment firm “ap- Laguarta, will face some challenges. performance. and see how they work CEO-ship.” preciated its constructive engage- He’ll need to wrestle with pressure Lowes’s board formed a commit- She has often said that winning ment” with Ms. Nooyi and recog- to regain an edge over Coke and find tee in March to search for a new over the long haul. corporations must build strategies nized her “strong decade-plus of creative fixes to problems unsolved leader. Two months later, it hired based on longer-term ideas, and corporate leadership.” by predecessors. The soft drink giant Marvin Ellison from J.C. Penney Co. stick to the plan even if quarterly Blair Sheppard, the leader of faces lingering questions about the In giving Ms. Nooyi 12 years in time to test new theories and show profits or monthly sales don’t imme- strategy and leadership development sustainability of sugary beverages the chief executive role—twice as how those theories work—or don’t— diately impress. at PricewaterhouseCooper LLC, said and the business case for owning long as the current average for S&P over the long haul. Pepsi’s board supported her long- the role of the CEO has changed at bottling operations. CEO tenure, according to Equilar Ms. Nooyi has attributed some of term plans, which helped in fending many companies. But he will benefit from a cul- Inc.—Pepsi’s board prioritized stabil- her success to her long tenure, not- off a challenge from Trian Fund For decades, the going theory ture of stability that Ms. Nooyi ity. A dozen years gave Ms. Nooyi ing that the financial crisis made her Management CEO Nelson Peltz, who said that if you made the share- helped to create. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | B7 TECHNOLOGY

| Whoknewitcould KEYWORDS CHRISTOPHER MIMS get this bad? In the past two weeks, Facebook Inc. outed fake accounts On Social Media, a Battle Is Brewing Between that bear marks of Russian foreign agents, the U.S. president called out Twitter Inc. for allegedly suppress- ing the visibility of conservative politicians, and Apple Inc., Face- book, YouTube and Pinterest all re- BotsandTrolls moved accounts or content from alt-right figurehead Alex Jones and his Infowars media empire, spark- ing a discussion about whether bans by tech giants constitute Many tools exist that could help identify bad actors on the internet. abridgement of free speech. In one way or another, all these There’s just no consensus on how to use them. events were about decisions made by humans, but spurred or enforced by algorithms. The issues concern the values of these companies and how they overlap—or don’t—with the values of the American public. But they’re also about the inescap- able reality that, given the vast scale of these internet services, those values must be translated into cold, hard code. We have many of the artificial intelligence tools to identify misinfor- mation, bots, fake accounts, influence campaigns, echo chambers and the cognitive, social and algorithmic biases that combine to distort what we see and hear. There’s just no consensus on how to use them. Tech giants already talk about what some of these tools accom- plish, if not how they work. Face- book uses AI to flag everything from hate speech to suicide risk. Twitter uses it to flag potential harassers. And YouTube uses it to help keep terrorist content off the service. Despite these efforts, researchers and policy wonks think what’s needed are stronger—and possibly concerted—commitments by the humans who run these firms. In the best scenario, tech giants would collaborate on tools in a way that would be transparent to the outside world. That “filter bubbles,” hate speech and harassment, and state-sponsored disinformation should all be monitored by a common set of tools is less about the flexibility of AI and more about the fact that these problems are linked.

Take the connection between ter- MARK MATCHO rorist accounts and disinformation campaigns. Both can be detected by the same methods, says Hamidreza Filippo Menczer and his colleagues issues. For instance, Twitter’s algo- One solution could be an indepen- from financial services to electric- Alvari, a graduate student at Ari- examined how likely social net- rithms failed to auto-suggest conser- dent but industry-sponsored organi- ity, which share information about zona State University, who came up works are to direct users to infor- vative politicians when users typed zation that allowed companies to cyber threats. This pooled resource with a method for identifying the mation from just a handful of their names in the service’s drop- pool information about state-spon- allows a kind of herd immunity, accounts of malicious actors on so- sources. down search feature. After President sored and malicious actors, and pos- where one attack victim can quickly cial networks. By this measure, the “homogene- Trump and others accused Twitter sibly tools for fighting them, says alert others. While some attempts to detect ity bias” of Facebook is worse than of “shadow banning,” the company Jonathan Morgan, CEO of New An industry organization that social-media accounts of malicious the bias in search engines. This sug- blamed its “behavioral ranking” al- Knowledge, a security company that monitors malicious online behavior actors rely on content or language gests search engines are better at gorithm and promised a fix. protects companies from disinforma- should be backstopped by some filters that terrorists and disinform- sending users to a variety of Where is the line between main- kind of government body, Mr. Mor- ers have proved capable of confus- sources outside their “filter bub- taining quality of information and gan says, as the FEC monitors elec- ing, Mr. Alvari’s algorithm looks for ble.” Twitter turned out even worse flat-out censorship? That’s the Where is the line tion activity and the FCC rules on accounts that spread content fur- than Facebook, and YouTube was core question all tech giants are media matters. ther and faster than expected. Since worst of all. now wrestling with. Facebook between maintaining Politics is an obstacle here. In this is the goal of terrorist recruit- Companies already constantly Chief Executive Mark Zuckerberg quality of information the wake of the banning of Infowars ers and propagandists alike, the tweak their algorithms to increase recently said he’d rather not cen- from the “mainstream internet,” method could be on the front lines engagement; measuring homogene- sor even speech as extreme as Ho- and flat-out censorship? fans of the site and its ideology are of algorithmic filtering across social ity bias and prioritizing its reduc- locaust denial, because it’s not accusing tech giants of conspiring networks. Humans still need to tion could be incorporated into that Facebook’s responsibility to be the to silence conservative voices. make the final determination, to process. arbiter of truth. tion and social-media manipulation. Never in history has our reality avoid false positives. There’s also the possibility of Yet Facebook and other content Such an organization already ex- been so affected by systems created Algorithms could also be used to training a deep-learning AI system companies remove content or limit ists for coordinating action against by so few. The logic of the algo- identify and disrupt social-media on known malicious behavior, in its reach every day, and these deci- terrorists online, the Global Internet rithms that power the internet is echo chambers, where people in- order to identify tells that even sions sometimes seem haphazard. Forum on Countering Terrorism. decided by a handful of companies. creasingly communicate with and humans might not be able to spot Apple CEO Tim Cook’s decision to U.S. members, including Secretary If we can’t live without these AIs, witness the behavior of people who or describe. Researchers at univer- pull Infowars content apparently of Homeland Security Kirstjen Niel- and their decisions are tied to ev- align with their own social and po- sities in Hong Kong, Qatar and sparked action by other tech giants. sen, and U.S. tech giants are reluc- erything from our First Amendment litical views. The key would be South Korea have had some suc- Mr. Jones and Infowars have pushed tant to expand its mission to in- rights to the sanctity of our voting showing users a deliberately more cess using this strategy to identify unfounded theories that include clude disinformation campaigns, system, it seems that more trans- diverse assortment of content. rumors on Chinese social-media calling the Sandy Hook Elementary but European members would. parency is needed. How can such To quantify just how bad the site Sina Weibo. School massacre in 2012 a hoax, and Another model could be the non- decisions continue to be made with- echo-chamber effect is, Indiana Uni- Existing approaches to weeding accusing prominent Democrats of profit Information Sharing and out input from the millions whom versity computer science professor out malicious content aren’t without running a global child-sex ring. Analysis Centers, covering sectors they affect?

Age-Old Savings Concept Gets New Look The future of household savings and bor- In addition to giving users access to larger rowing is taking a page from the past. sums of interest-free capital than they could Across the country, millions of Americans amass individually, Esusu reports every pay- are struggling to pay their bills, to raise capi- ment to major credit-rating firms as a loan tal to start a business, to make a big-ticket repayment. When group members keep their purchase that can improve their quality of savings commitments, their credit scores im- life. Banks won’t lend to them because their prove over time. credit score is bad. Their credit score stays Mary Kay Gugerty, a professor whose re- bad because they are largely excluded from search explores issues in rural development the mainstream financial system. and community development institutions in Enter so-called rotating credit and savings Africa, believes associations, a centuries-old cooperative sys- two of the tem where members deposit money into a main benefits common fund, usually in regular monthly of rotational- payments, and at the end of an agreed-upon savings groups funding cycle a single member withdraws the are that they funds. A different member receives the funds serve as insur- at the end of next cycle, and so on. ance against The funds are typically used for large pur- unexpected expenses and also condition peo- chases such as education fees, launching ple to save more than they would otherwise. businesses, purchasing homes and medical Esusu’s co-founders, Abbey Wemimo and emergencies. Samir Goel, were driven to create the app by Now one company, Esusu, has modernized their own experiences growing up living pay- the idea to address financial insecurity. Users check to paycheck in immigrant communi- download the Esusu app and then invite ties. Messrs. Wemimo and Goel, with trusted friends and family to join their sav- $400,000 from their preseed round of fi- ings group. The group sets a savings goal nancing and over 5,000 users in their eco- and a schedule for payments. The app then system, are hoping to draw upon the success automatically withdraws contributions from of this model and take it mainstream. The each member’s linked bank account and di- company charges a $10 subscription fee per rects the pooled funds to one person in the pay-in cycle. —Benjamin Powers F. MARTIN RAMIN/ THE WALL STREET JOURNAL group on a rotational basis.

Oficial Sponsor of The Wall Street Journal’s The Future of Everything B8 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. FINANCE

60% 25% Percentage of Estimated reduction in 401(k) participants retirement-savings wealth with balances when the savings lost due below $10,000 to “leakage” are who cash out compounded over 30 years F. MARTIN RAMIN/ THE WALL STREET JOURNAL

Among the 15% who remained at the firm for eight years, 31.5% Automated 401(k) Plans Prove Easy to of the auto-enrolled employees had 401(k) loans outstanding, versus 26.3% for the voluntarily enrolled group. Defaults, which never exceeded 12% of employees’ total outstanding loan balances, were similar for both groups. Pluck Too Soon Prof. Madrian says the study should provoke “discussion about what’s causing leakage and what we can do about it.” To reduce cashouts, many re- Researchers find that workers withdraw nearly half tirement-policy experts recommend automating the process of of their enforced contributions within eight years transferring money from an old employer’s plan to a new em- BY ANNE TERGESEN ployer’s plan; currently, departing employees who don’t want to ome workers are finding think about how to keep that opted auto-enrollment, up from on their own. (The $1,200 aver- leave money behind in a previous it hard to ignore the money in the system.” 58% in 2015 and 34% in 2007, ac- age includes savings of both em- employer’s 401(k) plan can roll it money they’re supposed Within 401(k) plans, auto-en- cording to Alight. ployees who left the firm before over tax-free into an individual to be setting aside for rollment has boosted average The study looked at the sav- the eight years elapsed and those retirement account or a new em- S their golden years. participation rates above 85%, ings and leakage levels for 7,347 who stayed.) ployer’s plan, but they have to fill The retirement sav- compared with 63% for plans employees a large financial-ser- The big reason why auto-en- out paperwork. Some also favor ings made possible for millions of without the feature, according to vices company hired in the 12 rollment boosted savings: It doing away with a rule that al- Americans thanks to automatic 401(k) recordkeeper Alight Solu- months before July 1, 2005, when raised the firm’s 401(k) participa- lows companies to issue checks to enrollment in 401(k)-style plans tions LLC. But by sweeping em- it adopted automatic enrollment. tion rate from 62% to 98%, con- departing employees with 401(k) is proving to be an alluring pool ployees into 401(k) plans at de- The authors compared data for verting many who would have balances below $1,000, many of of money many of these workers fault savings rates that typically those employees to 7,536 employ- contributed nothing into savers, whom cash the checks rather borrow from or cash out when hover near 3%, automatic enroll- ees the company hired in the 12 said Prof. Madrian. than deposit them in IRAs. they leave a job. ment also initially creates lots of But the auto-enrolled employ- The findings may also fuel The findings, from academic accounts with relatively small ees also withdrew an average of greater use of workplace wellness economists known for their work balances. ‘[W]e need to think about $850 more from their programs. These typically com- on retirement-savings plans, an- After leaving a company, just 401(k)s than the employees who bine financial education with cus- swer a question that has long over 60% of 401(k) participants about how to keep that had to voluntarily enroll, reduc- tomized advice, delivered by apps concerned employers that put with balances below $10,000 liq- money in the system,’ ing their potential gains from and human advisers, to help em- workers into 401(k) plans and uidate their accounts—paying in- auto enrollment by 42%. ployees develop basic money- give them the option to drop out, come taxes and often a 10% pen- says one economist. More than half of the auto-en- management skills. rather than requiring them to alty—rather than leaving the rolled participants—59%—cashed- Currently, 17% of large compa- sign up on their own: Will auto- money or transferring it to an- out their savings, largely driven by nies offer financial-wellness pro- enrolled workers treat their other tax-advantaged retirement employees who left the company. In grams that incorporate online 401(k)s like automated-teller ma- plan, according to Retirement months immediately after it contrast, among the employees tools and 42% offer one-on-one chines? Clearinghouse LLC. started using auto-enrollment. who joined the 401(k) voluntarily, consultations, up from 9.2% and The answer, according to the “When people hardly have any After applying the same invest- the figure was 43%. One reason for 35.7%, respectively, in 2015, ac- study, is yes—but not to the ex- money in the system, it doesn’t ment returns to both groups, the the higher cash-out rate: While cording to investment-consulting tent that the workers spend all seem worth it to them to roll it study found that eight years after more of the auto enrolled workers firm Callan LLC. their gains from auto-enrollment. over,” said Lori Lucas, president hire, the employees who were saved, a greater share of their bal- Kaneka North America LLC, a Within eight years of joining a of the nonprofit Employee Benefit auto-enrolled had an average of ances fell below $1,000, a level at subsidiary of a Japanese producer 401(k) plan, the results indicate Research Institute. about $1,200 more—in 2004 dol- which companies are allowed to is- of chemicals, plastics and medical that automatically enrolled work- Workers who don’t switch lars—in their 401(k) accounts sue checks to departing workers, devices, plans in September to ers withdraw nearly half of the companies fall prey to a separate than the workers hired a year many of whom cash them, said start offering its 400 U.S.-based extra they manage to save, com- temptation: 401(k) loans. earlier who were left to sign up Prof. Madrian. employees the option to contrib- pared with workers left to sign With more money in the plan, ute—via after-tax payroll deduc- up for the retirement plan on Prof. Madrian said, auto-enrolled tions—to an emergency savings their own. employees are more likely to bor- Carried Along account linked to its 401(k) plan. The findings illustrate how dif- row from their 401(k) accounts Employees are more likely to participate in 401(k) plans with auto-enrollment. “We think the emergency sav- ficult it can be to change savings over time than are workers who ings accounts will help people and spending habits. And this are required to sign up for the Participation rates in retirement plans who are used to using the 401(k) tapping or pocketing of retire- plan on their own. While most 90% plan like a bank account,” said Al- ment funds early, a phenomenon 401(k) borrowers repay them- With auto-enrollment vin L. Proctor, vice president of known in the industry as leakage, selves with interest, about 10% 85 human resources. Mr. Proctor threatens to reduce the wealth in default on about $5 billion a year, says the company hopes to see U.S. retirement accounts by about according to Olivia Mitchell, an 80 the percentage of employees tak- 25% when the lost annual savings economist at the University of ing loans decline to 6% from 13% are compounded over 30 years, Pennsylvania’s Wharton School. 75 annually. according to a separate analysis The upshot, Prof. Madrian said, Phil Waldeck, president of Pru- by economists at Boston College’s is that while “balances under 70 dential Retirement, which is Center for Retirement Research. auto-enrollment are higher, they Without auto-enrollment Kaneka’s 401(k) provider, says Thanks to auto-enrollment, “we are not as high as they could be.” 65 employees must currently volun- have figured out how to get Because automatic enrollment tarily enroll in the emergency 60 money into the retirement sav- is fast becoming the norm, the savings portion of the plan. But if ings system,” said Brigitte findings are likely to attract the 55 a bill recently introduced in Con- Madrian, a co-author of the new attention of policy makers and in- gress passes, it will allow employ- study and an economist at Har- dustry professionals. Currently, 2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ers to automatically enroll work- vard University. “Now we need to 68% of large employers have ad- Source: Alight Solutions LLC THE WALL STREET JOURNAL. ers into such accounts. B12 | Saturday/Sunday, August 11 - 12, 2018 ****** THE WALL STREET JOURNAL. BANKING & FINANCE Fork in Road Looms for Tesla Investors If buyout proceeds, ings Inc. to building rocket Big Buyers company Space Exploration some plan to stay Top ﬁve Tesla shareholders, Technologies Corp.—is a key aboard, while others percentage of total shares reason behind his plan to hold outstanding Tesla shares indefinitely. “This may be forced to sell is an example of betting on the Elon Musk jockey, not the horse,” said Mr. BY MICHAEL WURSTHORN 19.9% Blanchfield. AND ASJYLYN LODER The $174.7 million Ark In- T. Rowe Price Associates dustrial Innovation ETF, an ac- Plenty of Tesla Inc.’s die- 9.2 tively managed fund from Ark hard holders are prepared to Fidelity Investment Management, is stick with Elon Musk, no mat- 8.2 another committed bull. Tesla ter if the electric-car maker is is its largest holding, account- a public or private company. Given the option of ‘We think that $420 ‘The financial upside Baillie Gifford ing for 11.7% of the fund’s port- “As long as it’s an option 7.8 folio, according to FactSet. investing ‘alongside is a very low price to [of holding on] “We think that $420 is a for me to invest my money Tencent alongside Elon, I’m going to,” Elon, I’m going to.’ pay for Tesla today.’ could be huge.’ very low price to pay for Tesla said James Stephenson, who 4.9 today,” said Tasha Keeney, an says he has been a Tesla inves- James Stephenson Tasha Keeney Galileo Russell Source: FactSet analyst with Ark Investment THE WALL STREET JOURNAL. tor since 2014. HANDOUTS PROVIDED BY SUBJECTS Management. The fund would Whether individuals and prefer Tesla stay public be- some institutional investors ment from several Tesla board the next decade, versus around holders are mutual funds and Vanguard Group, which is cause liquidity limits might will be able to stay in Tesla members was less definitive. It $60 billion today. exchange-traded funds that Tesla’s sixth-largest holder, push it to sell, but she argued will depend on how a deal is said a meeting with Mr. Musk Mr. Musk said in one tweet face limits on holdings of secu- owns shares mostly through that the market is underesti- structured, though. Some a week earlier had “also ad- this week that he would create rities that don’t trade easily. In index funds, which would mating the growth of battery- holders of Tesla stock could dressed the funding for this to “a special purpose fund en- most cases, they can’t have likely have to sell. “Our active powered cars. Factoring that face hurdles to participating. occur.” abling anyone to stay with more than 15% of their portfo- funds are technically able to in, Ms. Keeney estimated Mr. Musk has said he wants Individual shareholders like Tesla,” but the car maker and lio in illiquid securities. invest in private companies, Tesla’s shares could reach to take Tesla private, giving in- Mr. Stephenson hold about 12% Mr. Musk haven’t elaborated These funds, which are but it is rare for them to do $4,000 in five years. vestors a choice: stay with the of Tesla’s stock, according to on how such a funding vehicle among Tesla’s biggest share- so,” a spokesman said. The scant detail provided by company or sell their shares FactSet, and many say they would work. Usually, individual holders, have yet to say how Some smaller fund manag- Mr. Musk has given pause to and receive $420 cash for won’t go. The 40-year-old fi- investors who don’t meet cer- they would react to a go-pri- ers say they are on board. some steadfast supporters. each. The more shareholders nancial analyst and Florida tain income and asset criteria vate transaction. T. Rowe Price Craig Blanchfield, a portfolio Galileo Russell, a 25-year-old who opt to stay, the less cash resident said he wants to hold face steep regulatory barriers Associates, Tesla’s second- manager at Mosaic Advisors, a founder of a financial media the company and any new in- on to his Tesla shares, which to participating in a buyout. largest holder after Mr. Musk, money manager that oversees startup, HyperChange, geared vestors would have to pony up. he says number 169 and were What’s more, almost 8% of with a 9.2% stake, declined to more than $241 million, said at millennials, views a take- And funding for a deal is a worth around $60,000 based Tesla shareholders are index comment. So, too, did No. 3 he wants to continue to hold private move as a “step back- big question. Tesla, which has on Friday’s closing price of funds that follow benchmarks holder Fidelity Management & Tesla shares. He said Tesla has wards in terms of liquidity and dwindling cash reserves and $355.49. that exclude unlisted compa- Research Co., which has an already been a lucrative in- transparency.” Still, he says he continues to generate negative “I’m not going to sell at nies, according to Morningstar. 8.16% stake. vestment for him, as well as doesn’t plan to sell any of his free-cash flow, hasn’t given $420, and most other Tesla Most of those would likely Baillie Gifford, the next clients for whom he manages 60 shares, valued at roughly any detail on how it would shareholders I’ve spoken with have to cash out since they largest holder, said in a state- money. $21,000. “The financial upside fund a buyout. aren’t going to sell either,” can’t generally hold stock not ment: “As long-term share- Mr. Blanchfield added that could be huge. I’m holding this Mr. Musk tweeted “funding said Mr. Stephenson, adding he included in public markets or holders, we will take time to Mr. Musk’s penchant for suc- for 10, 20, 30 years at least.” secured” in broaching a buyout expects Tesla to reach a $1 tril- an index. reflect upon this develop- cess—from revolutionizing ——Miriam Gottfried on Tuesday, but a later state- lion market capitalization over An additional 24% of share- ment.” payments with PayPal Hold- contributed to this article.

curities and Exchange Commis- about a fifth of Tesla, is chair- sion, which has asked Tesla man as well as chief executive. Musk Move whether Mr. Musk was truthful He and his brother, Kimbal, are when he said in his tweet that the only directors the board he had secured funding for the doesn’t label as independent. Puts Board buyout. Tesla didn’t respond to Tesla says that it evaluates requests for comment on the numerous factors in determin- SEC queries. ing directors’ independence. On Hot Seat Tesla shares on Friday rose Several other directors are ContinuedfrompageB1 almost 1% to $355.53, leaving close to Mr. Musk, including very, very informal,” said Adam them about 15% under the Brad Buss, who was previously Epstein, who heads corporate- $420 target price Mr. Musk set chief financial officer at Solar- governance consultant Third for a buyout of the electric-car City, the renewable energy Creek Advisors. maker. company Mr. Musk led and that Mr. Musk’s announcement Tesla’s board has nine mem- Tesla acquired in 2016. attracted scrutiny from the Se- bers. Mr. Musk, who owns Lead independent director Antonio Gracias, founder of Valor Equity Partners, has in- ADVERTISEMENT vested in several Musk ventures going back to PayPal, which Mr. Musk co-founded. He The Marketplace was a SolarCity director and is To advertise: 800-366-3975 or WSJ.com/classiﬁeds a director at Mr. Musk’s rocket company, Space Exploration FRANCHISE Technologies Corp., or SpaceX. The Musk brothers have in- vested with Valor, according to Tesla’s proxy statement.

Ira Ehrenpreis, who heads BRIAN MOLYNEAUX FOR THE WALL STREET JOURNAL Tesla’s compensation commit- The electric-car maker says it evaluates numerous factors in determining directors’ independence. tee and its nominating and governance committee, also is dependence. board formed a special com- slight increase. a SpaceX investor, as is Steve Boards normally play active mittee to negotiate terms with Shareholder advocates have Jurvetson, a venture capitalist roles overseeing major transac- him, according to company fil- frequently challenged Tesla’s who is on leave from Tesla’s tions, and in management- ings. When the deal was an- board, with little success. For board. Both have been associ- backed buyouts their impor- nounced it came with a de- example, Glass Lewis, one of ates of Mr. Musk for years. tance can be greater because tailed financing plan including two major shareholder advi- Messrs. Gracias, Buss and directors must negotiate backing from the equity spon- sory services, strongly opposed Ehrenpreis didn’t respond to against CEOs on behalf of other sors and debt underwriting the proposal for Tesla to buy requests for comment. shareholders. from Wall Street banks. After- SolarCity, calling it a “thinly Mr. Jurvetson declined to Six months before PC-maker ward the board clashed with veiled bail-out plan” and saying CAREERS comment about the proposed Dell announced founder Mi- Mr. Dell and his partners as di- the Tesla board was “rife with deal and didn’t respond to chael Dell’s plan to take the rectors sought a higher price conflicts.” Shareholders ap- Deputy Director questions about the board’s in- company private in 2013, its for shareholders. They won a proved the deal. Choose an employer of choice! 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On Jitters Venezuela’s state oil company plans to appeal a U.S. ruling that would allow one of In Turkey the country’s creditors to BY ORLA MCCAFFREY seize a major source of dollars—Citgo Petroleum. U.S. government bond The outcome of the legal prices rose Friday after con- battle is expected to determine tinued economic uncertainty whether Venezuela is able to in Turkey—and the fear of a retain control of the U.S.-based ripple effect across other mar- refiner. Dozens of creditors kets—pushed investors to the who have gone unpaid are relative safety of Treasurys. scrambling amid the country’s The yield on economic collapse and politi- CREDIT the benchmark cal crisis. A federal judge in MARKETS 10-year Treasury Delaware ruled late Thursday posted its big- that a creditor could seize gest one-day Citgo, and his redacted opin- drop since May 29, closing at ion was unsealed on Friday. 2.859%, compared with 2.935% Petróleos de Venezuela SA Thursday. Yields fall when bonds due 2020 fell 5% on Fri- bond prices rise. day, to 85.5 cents on the dol- Yields fell as the Turkish lar. Some investors are betting lira continued its steep de- that if Venezuela loses the scent Friday, pushing the dol- case, the country will no lon- lar to its highest level in more ger have an incentive to stay than a year. The lira declined current on those PdVSA as much as 18% before recov- bonds, for which Citgo shares ering some of its losses. For are pledged as collateral.

months, investors have been “This collateral could now BLOOMBERG NEWS questioning the country’s fi- be worth less,” said Simon Citgo, based in the U.S., is a key source of dollars for Venezuela. Above, a Citgo oil refinery in Corpus Christi, Texas. nancial health and ability to Waever, a strategist at Morgan repay its foreign debt, much of Stanley. post. “It’s a crime to squander VSA and its overseas assets the U.S. District Court in Wil- which is dollar-denominated. The decision comes as Ven- our wealth as thousands of amounted to nothing more mington, Del., on Thursday The drop in yields acceler- ezuela is mired in an economic children starve.” than typical government regu- ruled in Crystallex’s favor. In ated after President Trump crisis marked by food short- Venezuela spiraled into lations and ordinary share- his opinion, the judge asked tweeted that the U.S. would ages and runaway inflation, widespread default last year. holder control. The judge the parties to outline how they double steel and aluminum spawning the region’s worst The only debt payment made sided with Crystallex, which believe the sale of Citgo should tariffs on Turkey because of refugee crisis in recent history. this year was on its PdVSA pointed to everything from of- be handled and whether it its refusal to free an American Amid plummeting oil produc- bonds due 2020. The bonds ficial tweets stating “PDVSA is would require approval by the pastor who has been held for tion, toughening U.S. sanctions have performed better than Venezuela” to PdVSA trucks Treasury Department. PdVSA over two years on a disputed and spurts of protests, Presi- other Venezuelan debt, with being used as physical barriers on Friday filed papers indicat- terrorism charge. dent Nicolás Maduro faced an investors betting PdVSA will to block antigovernment dem- ing it planned to appeal. “We really saw a flight to assassination attempt last make an $842 million princi- onstrators as evidence that Citgo owns major refineries quality,” said Larry Milstein, week as two drones allegedly pal payment due in October in the entities were inseparable. on the Gulf Coast and in Illi- managing director of Treasury carrying bombs exploded near order to protect Citgo. Despite Citgo’s being in the nois, a source of concern for and agency trading at R.W. the leader as he addressed a The court case now roiling U.S., President Maduro’s gov- U.S. lawmakers worried about Pressprich & Co. “The question military parade. Venezuela was brought by ernment has shaped Citgo foreign control over domestic is if this leads to contagion.” President Maduro’s detrac- Crystallex International Corp., management while using the energy supplies. The refiner The lira’s decline has tors quickly jumped on the a defunct Canadian gold miner refiner to generate cash. Pd- also has 48 petroleum storage helped push the euro down court decision as a sign of Pd- trying to collect on a judgment VSA has collected billions of terminals from Texas to Maine against the dollar, as concerns VSA’s deterioration due to over lost mining rights. dollars in dividends from Citgo and ownership interests in Turkey’s problems would rampant corruption and mis- The company had argued and pledged its stock to secure several pipelines. spread across Europe weighed management during two de- that PdVSA was an “alter ego” financing from bond investors Other companies including on investors. The euro weak- cades of Socialist Party rule. of Venezuela and asked per- and Russia’s PAO Rosneft. ies, while simultaneously us- ConocoPhillips and Rusoro ened 1% against the dollar to “They broke PdVSA and mission to seize its commer- “Venezuela uses PdVSA to ing PdVSA to shield those Mining Ltd. are also circling $1.1412. Emerging-market cur- now we’re paying the conse- cial assets in the U.S., namely generate billions of dollars in same assets from creditors in Citgo to satisfy billions of dol- rencies also took hits against quences of such a disaster,” the parent of Citgo. revenue in the United States the United States,” Crystallex lars in arbitration claims. the dollar. former Caracas Mayor Antonio PdVSA had argued that through its commercial refin- argued. —Andrew Scurria The rally in bonds was Ledezma said in a Twitter Venezuela’s control over Pd- ing and oil industry subsidiar- Judge Leonard P. Stark of contributed to this article. briefly interrupted after the Labor Department said Friday the consumer-price index rose 0.2% in July from a month earlier. Excluding food and en- Stocks’ Win Streak Broken Amid Trade Fears ergy components, so-called core prices rose 0.2% as well. BY BEN ST. CLAIR optimistic about the nine-year jumped 17% in its biggest one- The increases fell in line AND AKANE OTANI bull market. With results in day percentage climb since with economists’ expectations. from 91% of companies, the June. Overall prices have climbed The S&P 500 and Dow S&P 500 is on track to report Many investors have shied 2.9% over the past year, near Jones Industrial Average fell the second-fastest pace of away from emerging markets the biggest gains of the expan- Friday, snapping a five-week earnings growth since the this year as a rising dollar and sion. Core prices increased streak of gains, as renewed third quarter of 2010, accord- U.S. interest rates have made 2.4%, the biggest 12-month trade tensions and a slide in ing to FactSet. dollar-denominated debt more gain since September 2008. the Turkish lira rippled across “Away from the trade war, expensive to pay back and re- Inflation poses a threat to the global markets. just about everything is lining finance. Strong U.S. corporate value of a bond’s future inter- Trading had been relatively up positively,” said Julian earnings and positive eco- est and principal payments. quiet for much of the week Emanuel, chief equity and de- nomic data have also given in- The Federal Reserve’s re- with the corpo- rivatives strategist at BTIG. vestors fewer reasons to in- cent rate increases have made FRIDAY’S rate earnings As concerns about Turkey vest in riskier markets. investors more likely to seek MARKETS season winding chipped away at investors’ ap- “I don’t see that market safety amid signs of uncer- down, keeping petite for risk, U.S. govern- backdrop changing terribly tainty, some analysts said. major indexes in ment bonds and the dollar quickly,” said Neil Veitch, “The Fed’s aggressive a relatively narrow range strengthened. global investment director at moves to tighten monetary through Thursday. The WSJ Dollar Index, SVM Asset Management. policy by raising interest rates But stocks around the which measures the dollar The Turkish lira slid 14% and shrinking its balance world lost traction Friday as against a basket of 16 curren- Friday, adding to the cur- sheet have made investors in selling accelerated in the cies, climbed 0.94%, while the rency’s losses this week after global markets more jittery Turkish lira, sending the cur- yield on the benchmark 10- the U.S. imposed sanctions and increased the demand for rency to a fresh low against year U.S. Treasury note fell to and investors fretted about safe assets,,” said Jack McIn- the dollar and raising fears slipped 20.30 points, or 0.7%, ning streak. 2.859% from 2.935% Thursday. the health of the country’s fi- tyre, global fixed-income port- that the country may be un- to 2833.28 sliding further For the week, the Dow in- Yields fall as bond prices rise. nancial system. folio manager at Brandywine able to repay debt denomi- from its January high, and the dustrials dropped 0.6%, while Meanwhile, a measure of The Stoxx Europe 600 fell Global Investment Manage- nated in other currencies. technology-heavy Nasdaq the S&P 500 lost 0.2% and the expected stock swings 1.1%, following Asian markets ment. He said he had selec- The Dow industrials Composite dropped 52.67 Nasdaq advanced 0.3%. climbed. The Cboe Volatility lower. Hong Kong’s Hang Seng tively added Treasurys to slumped 196.09 points, or points, or 0.7%, to 7839.11, Although markets wobbled Index, sometimes referred to fell 0.8% and South Korea’s some accounts. 0.8%, to 25313.14. The S&P 500 breaking an eight-session win- Friday, many investors remain as Wall Street’s “fear gauge,” Kospi shed 0.9%.

ing up other brands. The Greensboro, N.C., com- VF Looks pany acquired North Face in Volatility Again Stirs August Market 2000, sneaker brand Vans in 2004 and Timberland in 2011. BY BEN EISEN vestors are away from their To Cast It currently owns nearly two desks. On Thursday, U.S. com- dozen labels, including back- August is turning volatile posite stock-market volume pack maker JanSport, surf for stocks, continuing a tradi- was the lowest since mid-July. Off Brands brand Reef, and workwear tion of market turbulence dur- On Friday, composite trading ContinuedfrompageB1 brand Dickies, which it ac- ing the dog days of summer. volume was higher, though nally designed for laborers quired a year ago for $820 The latest moves were still below the year’s average. and cowboys. million. caused by a sharp slide in the “These events catch us off The Lee brand was intro- The company has been Turkish lira. But in recent guard because a lot of people duced in 1912 by Henry David shedding some brands. In years, volatility has tended to are on vacation and you think Lee, a wholesale grocery dis- March, it sold the apparel hit U.S. stocks at the height of it’s calm but then it’s not,” tributor who was unhappy brand Nautica and last year it vacation season. Since 1950, said Ryan Detrick, senior mar- with the inconsistent deliv- divested its Majestic brand, August has had the second- ket strategist at LPL Financial. ery of workwear from suppli- the official supplier of Major worst monthly performance All told, when the market ers. League Baseball uniforms, to behind September, according falls in August, it has averaged Wrangler made its debut in Fanatics, an e-commerce to LPL Financial. a loss of 4.5%, the worst aver- 1947 as Western wear, with startup. In 2015, fears about China’s age among the 12 months, ac- stiff blue jeans designed by In 2016, VF sold its once- weakening currency spread cording to LPL Financial. Fri- celebrity tailor Rodeo Ben. hot denim brand Seven For around the world. The Dow in- day’s losses pared the S&P Its early endorsers in- All Mankind, which helped dustrials briefly sank more 500’s rise in August to 0.6%. cluded professional rodeo spark a premium denim boom than 1,000 points in the first The moves disrupted a riders, and it continues to with jeans that ran to $200 six minutes of trading on Aug. stretch of calm during the sponsor rodeos, bull riders or more and were worn by 24, at the time the largest- height of summer vacation and former Nascar driver celebrities including Sarah ever intraday point decline. season. Tuesday and Wednes- Dale Earnhardt Jr. Jessica Parker and Heidi In August of 2011, markets day had featured the S&P By the 1980s, after VF had Klum. Seven struggled after a recoiled after S&P downgraded 500’s smallest two-day swing acquired Lee and Wrangler, it plethora of newer and edgier the U.S. credit rating. In 1998, of 2018 between intraday had 25% of the jeans market, labels flooded the market. the hedge fund Long-Term highs and lows, according to stretch, with the S&P 500 ris- The events unfolding in according to the company’s Investors have cheered the Capital Management blew up. Dow Jones Market Data. ing 4.1%. The index still sits Turkey aren’t expected to have website. The denim business moves. VF’s shares have In 1990, Iraq invaded Kuwait. Wednesday and Thursday had just 1.4% from its January re- a continued heavy impact on was VF’s core—delivering surged more than 50% in the Such events inject volatility the second-smallest swing. cord, and little suggests an U.S. markets. Still, various po- more than half of its revenue past year. On Friday, the into the stock markets at a To be sure, the outlook isn’t immediate return to the ex- tential market threats could in 2002—until the company shares edged up, closing at an time when trading volume is purely negative. The market treme volatility of earlier this continue to inject volatility began to diversify by scoop- all-time high of $96.29. light because traders and in- has had a strong three-month year. into stocks. B14 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. EXCHANGE

ON HEARDTHESTREET

FINANCIAL ANALYSIS & COMMENTARY

like the euro, the greenback has vestor confidence that wouldn’t be stopped climbing. A good deal of solved by a broad-based weaken- The Strong Dollar Is divergence between growth and ing in the dollar. The bigger pic- monetary policy in Europe and the ture will be influenced a good deal U.S. already looks priced in. by the trade dispute between the Where the dollar’s strength has U.S. and China and whether the Upending Markets exposed weak links in emerg- Chinese yuan continues to fall, ing markets, it may con- raising depreciation pressures on tinue to cause problems. other currencies. For countries like For all that the dollar’s rise has Thanks to the greenback, nearly everything that surged Turkey, where the accompanied stronger growth in in 2017 unraveled in 2018; the disruption may be waning lira is down 36% the U.S.—with second-quarter this year, the gross domestic product expand- problem now ing at a 4.1% annualized clip— BY RICHARD BARLEY has been generated by unorthodox is home- there is a domestic downside. Over U.S. policy, whether on tax, trade, grown, not time, a stronger dollar can hurt Much of the disruption to global or political alliances such as external: U.S. corporate profits as exports financial markets this year has NATO. But even as the U.S. be- Thereisa become less competitive and for- come from a source close to home: comes the global disrupter, its as- serious Turnaround eign earnings are worth less trans- the U.S. dollar. sets have proved more alluring for loss of in- Performance of Federal Reserve lated back into dollars. While tax Investors obsess over stock in- investors. The dollar has kept its dollar indexes cuts have boosted economic dexes and bond yields but the role as a magnet in times of doubt. Dollar vs. other important growth, they have also raised the most important number in finan- That is in part because the dol- trading partners index budget deficit, which may lead in- cial markets may be the dollar’s lar remains so dominant. In the Dollar vs. major currencies index vestors to start thinking about the exchange rate. That was clear $5.1 trillion-a-day foreign-exchange 3% scale of U.S. borrowing. when the dollar’s sudden rise in market, the U.S. currency is on one The flip side could be a debate the second quarter derailed many side of 88% of all trades, according 0 about whether assets denominated moneymaking trades and changed to the Bank for International Set- –3 in other currencies are cheap the path of economies and indus- tlements’ 2016 survey. While its enough to be attractive. Growth tries. In some places, the pain is weight in foreign-exchange re- –6 outside the U.S. has shown signs extending: The Turkish lira went serves has declined a little, it still –9 of stabilizing, and overseas stocks into meltdown this past week, accounts for 62.5% of the $10.4 have started to rebound. A less sending ripples through global trillion in allocated reserves iden- –12 disruptive dollar could, given markets. On Friday, the ICE dollar tified by the International Mone- 2017 ’18 time, add to the momen- index hit a fresh one-year high. tary Fund. The euro, meanwhile, Note: Major currencies index composed of seven tum beyond Ameri- The dollar’s rebound came after accounts for 20.4%. U.S. capital developed-market currencies including euro and can shores. yen; other important trading partners composed a broad decline in 2017, as growth markets are the biggest and most of 19 emerging-market currencies outside the U.S. picked up. That liquid in the world, making the Source: Federal Reserve Bank of St. Louis lured investors into riskier bets: dollar attractive both to compa- THE WALL STREET JOURNAL. the MSCI Emerging Markets stock nies looking to raise finance and index gained over 30%. investors with cash to put to This year kicked off in similar work. style. But then U.S. growth vaulted The dollar’s path not only re- higher and momentum stalled flects changes in global growth, elsewhere, sending the dollar on but can also steer them. Most an unexpected upturn. It gained notably, a rising dollar tightens 5.5% against the euro and 4.2% financial conditions in emerging against the yen in the second markets: It may lead central quarter; moves in emerging mar- banks to raise rates to shore up kets were even bigger, with the their currencies, for example, greenback up 17% against the Bra- or damp the appetite of com- zilian real and 16% against the mercial banks to lend in dollars South African rand. since their chances of getting Nearly everything that surged paid back declines as the local in 2017 has wilted in 2018. After currency falls. While floating months of tumult, there is reason exchange rates in emerging to believe the rest of the year will markets have reduced the risk be calmer for the dollar, meaning of sudden explosive crises, they

less risky for emerging markets come at this cost. PHOTO ILLUSTRATION BY WSJ; ISTOCK (2) and other volatile assets. The dollar’s performance in The oddity is that much of the the second half could be less dis- uncertainty about global growth ruptive. Against major currencies

OVERHEARD Some Customers Say No to a $999 Phone This company literally got soaked. Energy infrastructure com- BY DAN GALLAGHER Call Up pany American Midstream Partners said in a regulatory Smartphone makers clearly ex- Smartphone unit sales, quarterly filing Thursday that it pect customers to keep digging 100 units wouldn’t be able to file a re- deeper into their pockets. But those quired quarterly report on pockets are already feeling empty. Samsung Apple Huawei time with the Securities and Samsung provided the first of- 80 Exchange Commission. That ficial look at the upcoming season occurrence is typical enough, in hand-held devices on Thursday but usually companies delay with the unveiling of the Galaxy 60 filings because of problems Note 9.

MICHAEL REYNOLDS/EPA/SHUTTERSTOCK like accounting issues or per- The latest offering in the com- Housing costs are fueling inflation, but many workers aren’t getting raises. haps a complaint about sales pany’s super-sized section of 40 and marketing practices. smartphones has the typical en- American Midstream’s reason hancements one expects in an an- for delaying its filing, however, nual upgrade—a faster processor, 20 Prices Are Rising, was highly unusual. more memory and better battery Earlier this month, Ameri- life. The most notable new addi- can Midstream headquarters tion was adding a remote-control 0 Wages Could Be Next in Houston “experienced a wa- function to the stylus that comes 2015 ’16 ’17 ’18 terline leak causing water with the device. Source: IDC THE WALL STREET JOURNAL. damage and electrical system For this, Samsung expects its failure,” the company ex- customers to pay a starting price phones sold globally. But they are With a tight labor market, workers may be due for plained to regulators. That of $999, which is about 5% more facing a growing challenge from damage resulted in the closure than the starting price of last Chinese brands, which are bring- a raise. That will send inflation higher still. of offices and prevented key year’s Galaxy Note model. And last ing their own high-end phones to personnel from finalizing the year’s starting price was 8% to 12% the market at lower prices. Hua- BY KEN BROWN are squeezing their spending. Aver- company’s financial state- higher than the previous year’s it- wei, China’s largest smartphone age hourly earnings are down 0.2% ments. The company also indi- eration. vendor, overtook Apple in global After a decade of almost no infla- over the past year in real terms, ac- cated that its quarterly report Samsung is hardly alone in this unit sales for the first time dur- tion, workers aren’t used to seeing cording to the Labor Department. should be finalized later this regard; Apple Inc. has ing the June quarter. their earnings eaten away by higher With unemployment at a histori- month, which means it is un- been boosting the Given how customers re- prices. At some point, they will re- cally low 3.9% and an average of 6.7 likely to be in any sort of hot prices on its acted to its higher priced alize they are getting poorer every million unfilled jobs in the past water. smartphones as Galaxy S9, the newly un- month and demand healthy raises. quarter, the highest since 2001, The stock, which fell 3.3% well, with last veiled Note 9 could face The consumer-price index was up workers have a pretty strong hand Friday, is down more than 50% year’s iPhone X the the same pressure on 2.9% over the past year, the Labor to ask for more money. so far this year, giving share- first to hit the eye- sales. Department said Friday, while core Seriously rising wages are the holders a bath of their own. popping $999 mark. And Apple will be prices, which exclude food and en- biggest risk to inflation, which is still Apple’s average sell- hard-pressed to repeat ergy, increased 2.4%. The broad in- modest by historic standards. Like a ing price for the the same pricing trick lot of other indicators in the post-fi- iPhone in the first that has helped the nancial crisis world, predictions of six months of this company boost iPhone rapid wage increases haven’t materi- year jumped nearly revenue this year. Workers may be the next alized. When the dam does break— 15% over the same pe- New iPhones are ex- ones to put the financial and companies start paying more riod last year. pected next month, to fill their jobs and workers start But smartphone and Wall Street ex- crisis behind them. quitting to take those jobs—infla- buyers may already be pects the company to tion could see a jolt higher. tiring of the game. In at least keep its av- A broad increase in wages will their second-quarter erage selling price force companies to raise prices or earnings call last month, above $750 for the flation gauge had one of its biggest face hits to profits. Boosting prices Samsung executives noted coming year compared with gains of the past decade and core has proven to be near impossible that rising smartphone price tags $652 for the fiscal year ended Sep- prices rose by the most since Sep- since the crisis, but again at some were “drawing market resistance.” tember 2017. tember 2008. point that dam will burst. With in- That was after the company Research firm International The cost of rent and mortgages terest rates still historically low and posted a sharp drop in sales for its Data Corp. now expects smart- drove the inflation gains, account- inflation already at the Federal Re- mobile division, which it attri- phone sales to contract globally ing for 60% of the increase in the serve’s preferred level, higher inter- buted in part to weaker-than-ex- this year following their first de- overall index. That reflects higher est rates become more likely. pected demand for its flagship cline last year. interest rates and a tight housing It took a decade for inflation to Galaxy S9. In a market where sales are market. wake up. Workers may be the next Samsung and Apple together falling and competition is increas- For workers, these costs and oth- ones to put the financial crisis be- have long accounted for a little ing, raising prices won’t get you

ers that have been steadily rising hind them. ALAMY more than one-third of all smart- very far. TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGE Hot Summer Songs Shaking the Tree The season’s title How advances in usually goes to a party microbiology are anthem—but it needn’t. rewriting the story C3 REVIEW of life. Books C7

CULTURE | SCIENCE | POLITICS | HUMOR THE WALL STREET JOURNAL. **** SATURDAY/SUNDAY, AUGUST 11 - 12, 2018 | C1 RLOTTESVILLE) MIDDLE MAN

With Russia resurgent and the U.S. and EU divided, leaders such as Hungary’s Viktor Orban are looking both ways, seeking a newly ‘equidistant’ relationship between Moscow and the West FROM TOP: PHOTO ILLUSTRATION: GALI TIBBON/AGENCE FRANCE-PRESSE/GETTY IMAGES; BALAZS MOHAI/MTI/ASSOCIATED PRESS; MARK WILSON/GETTY IMAGES (CHA

BY DREW HINSHAW AND MARCUS WALKER austerity in Southern Europe. On the continent’s racy is no longer Europe’s ideal, in Mr. Orban’s edge, Turkey too is turning its back on the West. telling, and neither the U.S. nor Europe’s political T A BUCOLIC BORDER POST here in Bucsu, Europe’s hard-won unity is fraying. establishment retain the resolve to defend the lib- Hungary, Western-trained counterintelligence Nowhere is the historical irony more acute than eral democratic order they helped construct. agents recently got word that a known oper- in the first country to pull down the Iron Curtain. Mr. Orban says he is helping his country navi- ative of Russia’s foreign spy service was Hungary’s August 1989 border opening set off a gate a transition, from an American-led unipolar driving into their country, and asked their chain reaction that toppled the Berlin Wall. Now, world, to a messier, multipolar era in which small headquarters for permission to pursue. this small nation is once again the focal point of an- countries must balance between great powers. Permission denied, came the firm order other European revolt, this one triggered by the “Orban genuinely believes the West is on the de- from Budapest. man the ruling party calls its “chief engineer,” cline, and the best days of the EU and NATO are This kind of incident is a regular oc- Prime Minister Viktor Orban. numbered,” says David Koranyi, senior fellow at currence at Hungary’s frontiers, ac- In his first stint as prime minister, from 1998 to the Atlantic Council in Washington and a former cording to two former intelligence 2002, the Oxford-trained former dissident focused Hungarian national-security official. “He’s prag- agents who described it, and it fit a pattern. Rus- on getting Hungary into the North Atlantic Treaty matic enough to keep Hungary in the EU and NATO sian involvement in Hungary is growing. Russian Organization and away from Russia’s orbit. Since for now, because the money coming in and the se- spies roam freely, using Budapest as a base to ad- returning to power in 2010, the 55-year-old has bet curity umbrella still have their value. But he sees vance their aims in Europe, according to U.S. and on a different course, wagering that the post-Cold the 21st century as the rise of a competing gover- Hungarian officials. Russian energy companies sign War order is ending, and that both Russia and its nance model, that of the East.” secretive deals that critics say aim to enrich and model of government on the rise. Western democ- Or, as a confidant recalls Mr. Orban once la- co-opt Hungarian oligarchs. Officials from menting: “American policy can change ev- the U.S. and European Union complain, but ery four years.” feel shut out by a government they view as Elsewhere in the EU, the status quo more like Vladimir Putin’s than their own. faces unrest from voters in Italy or the Welcome to Europe’s new disorder. The U.K. who feel they haven’t prospered from U.S. and EU-led alliance in Europe that the globalized economy that followed the grew stronger after the Cold War is now fall of the Iron Curtain. In Hungary, mod- splintering. Russia is seizing chances to en- ern Europe confronts a revolt from a na- Protesters courage this fragmentation and regain in- tion that has. Wages have doubled since concerned at fluence. This time, Moscow’s intellectual Hungary joined the EU in 2004. The state the more currency isn’t Marxism, but an authoritar- spends a meager 1% of GDP on its mili- autocratic ian style of leadership that sneers at the tary, banking on NATO’s collective alli- direction of pieties of liberal democracy. ance to uphold its defense. Hungary’s Russia is finding local partners in Eu- And yet Mr. Orban is posing the most government rope’s political rebellions that are challeng- brazen challenge to the common rules called out ing a liberal order meant to mark the end and values meant to unite Europe’s politi- last year for of history. These vary in form and strength, cal order, as well as the officials sent to the European from nativist parties in France and Ger- enforce them. Successive U.S. ambassa- Union to many to leftist opponents of EU-backed Pleaseturntothenextpage step in.

Inside HISTORICALLY SPEAKING Pollster SOCIETY BIOLOGY There are reasons Partial View why monarchs of On Polls One year after a violent conflict, That rich world old were not Lessons learned from Charlottesville, you experience? allowed to follow the surprises of Va.,is deeply What you really their hearts. Just ask 2016—and what to watch for this divided on how to perceive is more Cleopatra. C5 autumn. C3 move forward. C4 like a sketch. C5 C2 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. REVIEW A Bet Against The West

Continuedfromthepriorpage dors have lectured him about his moves to ce- ment power over courts, media, and the central bank. “All this talk of democracy is bullshit,” one U.S. ambassador recalled him snapping back. At NATO, Mr. Orban has blocked the U.S.-led military alliance from holding meetings with Ukraine concerning its conflict with Russia, over an obscure debate regarding Kiev’s treatment of the Hungarian language. Hungarian diplomats say they’ve been asked to limit and report any contact with American officials. This summer on a Danube river bend, near the ruins of an ancient Roman border post, digging began on Mr. Orban’s biggest bet to date he can toggle between great powers: a €12 billion Russian nuclear Messrs. Putin plant worth a 10th of the and Orban Hungarian economy. Mr. showcased Putin personally pitched closer ties in a it to Mr. Orban, who be- 2015 meeting in Budapest. lieved he could gain le- FROM TOP: ARPAD KURUCZ/ANADOLU AGENCY/GETTY IMAGES; AKOS STILLER/BLOOMBERG NEWS verage selling Russian energy to German factories, calling it “the deal of the century.” said a well-connected Hungarian banker. Danube. Liberal Budapest politicians treated and show each other respect. Mr. Putin gave It could also leave his country indebted and Mr. Orban began his rise by defying liberal him as lacking sophistication; one mockingly Mr. Orban a lift back to the airport. dependent on Moscow, just as it was when he ideas on how to deal with Moscow. Shortly be- fixed his tie in public. “That meeting is the turning point,” said was young, per the reservations of his own fore speaking at a televised 1989 ceremony, op- The young prime minister could become the Andras Racz, former security fellow at the ministers who advised against it. Hungary’s position figures warned him to stop short of new Václav Havel, a symbol of liberal democ- Hungarian Institute of International Affairs. government-commissioned assessment says challenging the Soviet troops stationed here. racy in Central Europe, like the Czech intellec- Mr. Orban won a landslide the next year. An the plant will make a profit—if electricity Mr. Orban stood before the crowd and de- tual, Hungary’s then-ambassador to the U.S. aide asked Mr. Orban if taking power in the prices nearly double, something energy ex- manded those soldiers go home. told him. “I’m not interested in that. I want to midst of a global financial crisis, with Hungary perts don’t expect. The provocation made a local sensation of win elections and hold on to this office,” Mr. reeling, worried him. “No. I like chaos,” Mr. Or- Mr. Putin has his own geopolitical agenda, Mr. Orban, who won a scholarship at Oxford, Orban replied, according to the ambassador. ban replied, “because I can build a new order pro-Western Hungarian officials warn: to co- where he studied under the same influential An election defeat in 2002 inflicted a deep from this chaos. An order than I want.” opt political and business elites in EU coun- professors as Bill Clinton. Elected as prime shock on Mr. Orban, who blamed media hostil- After rewriting the constitution, redrawing tries, helping to weaken a bloc he views as an minister in 1998, he visited the White House, ity, according to Andras Kosa, author of a new voting districts, and giving his party control obstacle to Russia’s great-power restoration. where Mr. Clinton praised his “vigorous and book on Mr. Orban’s career. He also grew mis- over institutions from media regulators to the Kremlin spokesman Dmitry Peskov rejects that progressive leadership.” trustful toward the U.S. He felt humiliated by courts, Mr. Orban began changing the way his the George W. Bush adminis- country secured its main source of energy, Rus- tration, which criticized him sian gas. Under a secretive arrangement begun for not denouncing anti-Semi- in 2011, gas entering Hungary was sold inexpen- tism, and for backing out of sively to an energy-trading company controlled an arms deal. “He sensed by Hungarian and Russian oligarchs. The trading that the U.S. may not be the company, MET, then resold the gas to customers best friend of Europe,” said a for hefty profits. A MET spokesman says the former cabinet minister. deal was “standard market practice.” Govern- Out of power, Mr. Orban ment edicts citing “security” restricted pipeline complained that the U.S. didn’t use by other gas importers, curbing competi- do more to help Hungary se- tion. The EU made Hungary open up the market cure non-Russian sources of in 2015, after a whistleblower leaked details. gas. When Russian troops A new Hungarian business elite emerged, poured into Georgia in 2008, politically dependent on Mr. Orban—not unlike he denounced “the raw impe- the oligarchical network around Mr. Putin. rial power politics” of Mr. Pu- Among the winners: Lorincz Meszaros, a for- tin, expecting a hard line from mer pipe-fitter from Mr. Orban’s village, who the incoming U.S. president. would become Hungary’s second-richest man, Instead, Barack Obama at- with construction and media interests. Tens of tempted a reset to mend rela- millions of dollars in EU public works con- tions with Russia. Meanwhile, tracts were awarded to a company controlled the global financial crisis and by the prime minister’s son-in-law, an EU fraud Europe’s dithering response investigation found. When one oligarch bought to it left Mr. Orban skeptical a billboard company without Mr. Orban’s per- about the West’s attachment mission, the prime minister stopped talking to to political pluralism and him until he sold it, a person familiar with the globalization, say former offi- matter said. Messrs. Meszaros and prime min- cials. “He interpreted it as a ister’s son-in-law, Istvan Tiborcz, couldn’t be failure of the Western sys- reached for comment. tem,” says Mr. Koranyi of the Mr. Orban became more explicit about his vi- Atlantic Council. sion. “The new state that we are building is an analysis. “It’s modern to blame everything on Mr. Clinton now ac- Instrument In 2009, he got an invite from a world illiberal state, a non-liberal state,” he said in a Russia and Russian intelligence,” he says, add- cuses Mr. Orban of “Pu- panels at leader nursing similar doubts about the dura- speech soon after re-election in 2014. He ex- ing that EU countries “have to solve their in- tin-like leadership.” Mr. Hungary’s Paks bility of Europe’s Western-led order. Mr. Orban pressed fascination for “systems that are not ternal problems on their own.” Orban says he and the nuclear plant, to was climbing in opinion polls, and Mr. Putin Western, not liberal, not liberal democracies, Mr. Orban believes he can predict and out- Hungarian people “de- be expanded in wanted to meet him. maybe not even democracies, and yet [are] mak- smart the machinations of a fellow cynic and serve more respect” a major project The Hungarian traveled to St. Petersburg ing nations successful.” demonstrate to his liberal critics that his from Mr. Clinton. pitched by Putin. with a small delegation. Mr. Putin walked in Russia, Turkey, China and other non-Western small country can counterbalance big powers. The future Hungarian with a room-filling coterie of ministers and countries were now the “stars of international It is a high-stakes gamble for a country that leader took time to find aides whom he lectured and scolded in front of analyses,” he said. “We are searching for, and we has spent nearly all of the past 500 years un- his political bearings. The son of an authoritar- Mr. Orban. The show of authority impressed are doing our best to find, ways of parting with der the yoke of one empire or another. “I ian father who beat him, his modest origins in the Hungarian opposition leader, according to Western European dogmas.” don’t think he can sustain this dance between a nondescript village left him feeling awkward people familiar with the conversations. The —Anita Kömüves in Budapest and Bojan East and West without breaking his legs,” in Budapest, a grand and genteel capital on the two men agreed to put past animosities aside Pancevski in Berlin contributed to this article.

A Term for ernment in which a small wrote of the transfer of wealth group exercises control espe- in a 1997 essay for Foreign Af- cially for corrupt and selfish fairs: “The new oligarchs, both Russia’s purposes.” within and outside the Krem- The ancient Greek root “oli- lin, see themselves as undeni- Elite Spurs garkhia” comes from “oligoi” ably lucky, but worthy as well.” WORD ON meaning “few” and “arkhein” Under Boris Yeltsin, some of THE STREET Objections meaning “to rule.” According these superrich industrialists to the political theory of Aris- held substantial political BEN totle, the “oligoi” or select few power, making them “poli- ZIMMER who hold the power in an oligarchs,” to use a term coined garchic system are inevitably by the Hungarian sociologist wealthy or well-born, aligning Bálint Magyar. Vladimir Putin AS THE TRIAL of President scribe the wealthy backers of Paul sia-born jour- “oligarchy” with a similar forced the oligarchs to cede Donald Trump’s former cam- former Ukrainian President Manafort nalist based term: “plutocracy,” or the rule their direct sway over the gov- paign manager Paul Manafort Viktor Yanukovych, a longtime enters court; in Berlin, of the rich. ernment but allowed them to continues, prosecutors have client of Mr. Manafort. Russian echoed the While many despotic re- keep their immense wealth. been warned by the presiding As reported by the Washing- businessmen judge’s dis- gimes have been characterized Kremlin spokesman Dmitry judge to avoid using one word ton Post and others, Judge El- figure in his taste for “oli- as “oligarchies” since the word Peskov told reporters in April in particular: “oligarch.” lis said that characterizing trial. garch” and entered English in the 16th that “the phrase ‘Russian oli- U.S. District Judge T.S. Ellis, these associates of Mr. took it one century, it was the breakup of garchs’ is considered inappro- Manafort as “oli- step further, the Soviet Union that brought priate” in the Putin era. “The garchs” was “pe- arguing that “the news and “oligarchs” into the limelight. time when there were oli- jorative.” The politics realms, too, should As Thomas Graham, managing garchs in Russia passed long word implied that take heed of this astute in- director at Kissinger Associ- ago. There are no oligarchs in [Oligarch] Mr. Manafort “as- struction.” ates and a senior fellow at Russia,” Mr. Peskov claimed. sociated with de- “The catchall term ‘oligarch’ Yale’s Jackson Institute for Mr. Mueller’s office clearly spicable people distorts a complex reality,” Mr. Global Affairs, recently told feels otherwise, as does the and therefore he’s Bershidsky wrote. CNN, the term came into use U.S. Treasury Department, who has made a point of rein- despicable,” and he instructed How did “oligarch” become in the mid-1990s when Russia which has placed sanctions on ing in prosecutors for special prosecutors to “find another so nefarious-sounding? Dic- and other former Soviet states several Russian businessmen counsel Robert Mueller, took term to use” that did not carry tionaries define the term as a made the uneasy transition to allied with Mr. Putin, calling offense to the word “oligarch” such a negative connotation. member or supporter of an capitalism, and formerly state- them “oligarchs and elites” when one prosecutor, Greg An- Bloomberg Opinion colum- “oligarchy,” in turn defined by owned industries fell into pri- who profit from the govern-

dres, used it last week to de- nist Leonid Bershidsky, a Rus- Merriam-Webster as “a gov- vate hands. David Remnick ment’s “malign activity.” MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | C3 REVIEW Summertime, And the Music Is Easy

Today, the songs of summer are usually lighthearted party anthems. But history shows that they can go beyond ‘auditory cheesecake.’

BY TED GIOIA

hat was the song of last winter? Or the definitive spring song of 2018? Don’t feel bad if you can’t answer. No one seems to care much about W picking songs for those seasons. But start talking about the song of the summer, and arguments rapidly escalate. Billboard even publishes a chart to track the contenders. It will be hard for any song to top last summer’s “Despacito,” which racked up a stunning five billion views on YouTube. But Cardi B’s 2018 hit “I Like It,” performed with reggaeton stars Bad Bunny from Puerto Rico and J Balvin from Colombia, has enjoyed great success with its similar Latin flavor and festive spirit. Other contenders, including Drake’s “Nice for What” and Ella Mai’s “Boo’d Up,” aren’t far behind in views. Melancholy songs about broken hearts and weepy lovers have always been popular, but they rarely get much traction as summer anthems. Just look at the anointed hits of summers past for a guide: Katy Perry’s “California Gurls” (2010), LMFAO’s “Party Rock Anthem” (2011), and OMI’s “Cheerleader” (2015) are par for the course. These come to the forefront of commercial music. The “song of foot-tapping tunes, each promoted by a video filled with the summer” phenomenon is also aligned with the fixa- upbeat images of vacation-time revelry, conveyed a simple tion on rankings that has spawned so many singing-con- message. School’s out and good times are here—but enjoy test reality shows. We want fun songs, and part of the fun them while you can. Summer only lasts so long. is arguing over which is best. The first battles over the song of the summer hap- But this trend also reflects a shift at a deeper level—a pened more than a century ago. But the disputes were kind of tectonic change in the philosophy of music. Your rarely about records back then; they were mostly about average music listener probably doesn’t pay much atten- sheet music. In 1902, you could debate tion to what Ivy League academics have to whether the season’s best was “On a Sunday say about songs, but they have laid the Afternoon” or “In the Good Old Summer- groundwork for our addiction to fun-in-the- time.” Both were gentle waltzes, unsuitable sun playlists. for your hot August playlist in 2018. But “ Back in the 1990s, when the song of the mer song of 1966 (although it wasn’t re- some things about the song of the summer We want summer was coming back into fashion, Har- leased until October) or even that George haven’t changed. Then as now, it needed a fun songs, vard professor Steven Pinker (then at Massa- Gershwin’s “Summertime” filled the same catchy melody and a carefree spirit to fit chusetts Institute of Technology) promoted role in 1935 (it actually premiered in “Porgy the bill. and part the idea that music is just “auditory cheese- and Bess” a full week after the start of fall). You couldn’t hear the favored summer of the fun cake”—a kind of pleasing brain stimulation, It’s easy to ignore how different the world songs on the radio back in 1902—the first no different from a martini or recreational was back then. music broadcast wouldn’t happen until four is arguing drugs. A few years later, music criticism be- Summer or not? Maybe we should stop and think what music fans of years later—but that was OK. Someone would over gan reflecting a similar change in priorities, Clockwise from previous generations might have said about their summer pound it out on the saloon piano, or maybe which is with many record reviewers embracing the top: Benny songs. Back in the 1930s, listeners were keenly aware that sing it on the street corner for tips. You could new cult of “poptimism,” a stance that re- Goodman; the popular music was breaking down racial barriers. Benny even hear it at home if someone in your fam- best. jected the aesthetic preening of rock in favor Beach Boys; Luis Goodman shook up not just the music world but all of ily played an instrument or you owned that of feel-good pop tunes. Songs that many crit- Fonsi performs America by touring with an interracial combo, decades be- newfangled device, the player piano. ics would have dismissed just a short while ‘Despacito,’ his fore Brown v. Board of Education. And when a disruptive The spread of radio and the growth of the record in- before as shallow and disposable were now deemed wor- 2017 hit; Aretha generation embarked on the “Freedom Summer” in 1964 dustry shifted attention away from summer songs. By the thy of respect and maybe even a Ph.D. dissertation. Franklin; Katy or the “Summer of Love” in 1967, its members also drew 1920s, music had become a round-the-clock, indoors affair, It’s not surprising that the song of the summer came Perry; Cardi B; on favored melodies for inspiration. If you heard Bob Dy- with weaker ties to nature and the passing seasons. A back with the intensity of a Miami Beach heat wave in re- Bob Dylan lan’s “The Times They Are a-Changin’” or Aretha Franklin’s Google trend analysis shows a steep decline in references sponse to these new imperatives. If songs are assessed on “Respect” during those volatile years, you immediately un- to the “song of the summer” during the middle decades the fun-o-meter, of course “Party Rock Anthem” rises to derstood that songs served as a kind of leading social indi- of the 20th century. But in the 1990s the trend reversed, the top. But it’s easy to forget that music has many func- cator, alerts from the future playing on your radio today. and now people argue again about the pros and cons of tions beyond serving as auditory cheesecake. Over the This music was about changing hearts and minds, and al- the candidates for the honor. years, songs have stirred up protests and changed atti- though it also entertained, that was never its core mission. What brought back the song of the summer? Was it tudes, broken down hierarchies and legitimized bold new It’s good to have a happy-go-lucky playlist for your global warming or changing tastes? Or is all this just a ways of living. Every rebellious social movement in modern beach vacation, but we pay a price when the dominant hype-driven campaign to get attention-starved teens to American history—from the rule-breakers of the Jazz Age musical culture ignores so many other aspects of songs. talk about music instead of videogames, superhero movies to the later beatniks, hippies, and punks—saw music as a By all means, keep on searching for the perfect tune for and the thousand other distractions of our entertainment- core part of the changes they hoped to unleash on society. pool parties and school breaks, but let’s also celebrate saturated lives? When you take this larger view, you can grasp how the songs that challenge perceptions and broaden horizons. In fact, our obsession with summer anthems reflects a current interest in picking a definitive summer song has We might even need them when we get back to business real change in attitudes toward music. It’s part of the led to revisionist history. Billboard now provides lists of in the fall. larger shift away from old-school rock elitism, with all its summer song candidates for every year going back to artistic pretensions, to lifestyle-driven pop and hip-hop. 1958, even though for most of those years, the notion of As has happened at previous junctures—with the rise of picking a theme for the season was barely on the radar Mr. Gioia writes on music, literature and popular cul- swing bands in the late 1930s or the disco craze of the screens of listeners. Don’t be surprised if someone tells ture. His most recent book, “How to Listen to Jazz,” is

GETTY IMAGESlate (7) 1970s—lively songs with danceable beats have again you that the Beach Boys’ “Good Vibrations” was the sum- published by Basic Books.

racy. People suspect, correctly, To Get the Most that their fellow Americans have gotten harder for us to find and talk to. It does take more work Out of Polls, and care for us to get a good read on what’s happening in a fast- changing country. But good poll- Delve Deeper sters innovate as technology changes, and we’ve never had more ways to talk to people than BY ANTHONY SALVANTO thoughtful surveys that delve into we do now. why Americans feel as they do. Pollsters once just knocked on WE’LL SOON BE awash in poll The 2016 election surprised a doors, then started making ran- numbers again as the midterm elec- lot of people, but it shouldn’t dom telephone calls, then moved tions loom, and that’s a good thing. have. There were plenty of signs from land lines to calling mostly I plan to contribute quite a bit to in the polling that Donald Trump cellphones, because that’s what that flood myself. But people are could win, for those who looked edge that even when a number is give to the economy in their deci- people use. After Americans got busy, and it’s understandably past the top line. As the contest accurate, it may not be useful. This sions. Most say it’s good, and that connected online, we moved inter- tempting to simply ask us pollsters tightened in the closing week, year, a lot of pollsters are reporting normally favors the party in power; views there to follow suit. Big data “Who’s going to win?” or to glance there were historic levels of dislike what’s called the “generic ballot” but other issues like immigration lets us dive deeper into the vote at which candidate is leading at the for both candidates, which infused for Congress, the party preference can spur far more division if they patterns than ever. The question is moment. Doing that risks missing the campaign with uncertainty. In as measured nationwide, and most come to the forefront. Democrats’ what we do with all this informa- the real story of 2018—and some of our surveys, many Republicans of them have the Democrats ahead. fortunes still hinge on turning out tion. the lessons learned in the 2016 said they were hesitant to back But Congress is won locally, seat by people who don’t typically vote in This year, demand more from us election, too. Donald Trump at first, which was seat. So instead, watch the polls midterms, so we’ll track efforts to pollsters. Don’t judge us simply by As the fall campaigns unfold, re- a big part of the reason he trailed targeting the competitive districts persuade them. President Trump’s whether we can predict the member that neither a candidate’s Hillary Clinton. It wasn’t shocking that will really decide the House. base is solidly with him, but his world—judge us by whether we polling percentage nor any other when many of them came around This recalls a lesson of 2016, when backers don’t see him as a typical can explain it. single number will give you the full to their party’s nominee at the national polls were actually very ac- Republican, so we’ll see if they’ll picture—any more than a price tag end. Trump won very high per- curate, but turned out to be less rel- back his congressional candidates Mr. Salvanto is Director of Elec- really tells you how a bottle of wine centages of late deciders, while evant when the race was decided by with as much vigor as they do tions and Surveys for CBS News. will taste, or a stock price tells you many less-enthusiastic Democrats a few states in the Electoral College. Trump himself. This essay is adapted from his everything about the health of a ultimately stayed home. We need to make sure we watch— We pollsters are used to healthy book “Where Did You Get This business. In 2018, pay less attention A good poll should quantify these and poll—the right places. public skepticism about where we Number? A Pollster’s Guide to to the mashups of “the polls” or dynamics for you; it should analyze The dynamics that will decide get all these numbers, even though Making Sense of the World,” which analogies of a race between thor- an election campaign as a fluid set the fall campaign are already visi- long-term studies show they’ve will be published by Simon &

oughbreds. Instead, look for of possibilities. It should acknowl- ble. Watch how much weight voters generally maintained their accu- Schuster on Aug. 21. DANIEL HERTZBERG C4 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. REVIEW

WILCZEK’S UNIVERSE

FRANK WILCZEK The statue of RobertE.Lee still stands in Swimming on Charlottesville, Va., after last year’s Atomic and violent conflict. Cosmic Levels

SWIMMING is rhythmic and repetitive. It relaxes stress, re- lieves anxiety and takes you back to the womb. During the summer, at a local lake in New Hampshire, I do it every day. But the flip side of swimming’s sedative virtues is that swimming is boring. Since it’s best not to fall asleep in the water, I often plan something to think about. What could be more natural than to think about the physics around swimming? Viewed at a microscopic scale, water no longer seems smooth and placid. Its true nature, as a collection of jiggling atoms, gets revealed. Dust from pollen grains, for example, gets buffeted in random directions, driven to “swim” aimlessly and ineffi- ciently. The botanist Thomas Brown first noted such agitated micro-motion in 1827. Albert Einstein, in the “miracle year” of

1905 when he published on relativity, E=mc² FROM TOP: STEVE HELBER/ASSOCIATED PRESS; MARK PETERSON/REDUX PICTURES and photons, interpreted Brown’s observations on the basis of atomic theory. By con- necting the so-called Brownian motion to Many of these same other observations about diffusion and vis- The Shadow Over issues have rippled cosity, he was able to make a convincing through the University case for the existence of atoms and to de- of Virginia. The immedi- rive a good estimate of atomic sizes. ate aftermath of last Organisms slightly larger than dust, like year’s march saw pre- bacteria, can resist the molecular weather, dictable scenes of stu- but its influence remains. To appreciate the Charlottesville dent protest. In Septem- problem, imagine trying to walk through ber 2017, minority rapidly shifting gusty winds, or to swim student leaders briefly through ever-shifting currents. To a bacte- covered a statue of rium, water feels extremely viscous. One year after the deadly white supremacist march, the city Thomas Jefferson and proclaimed him a The rules that govern bacterial swim- “racist and a rapist.” They demanded more ming are peculiar. Progress requires contin- remains divided over politics, history, and the way forward explicit institutional reckoning with the uni- uous effort. Inertia is quickly dissipated. versity’s record on race and slavery. In fact, Then we have the dynamics proposed by BY JAMES LOEFFLER tivist. Her supporters voiced faith in her the university has made notable strides in Aristotle, dominated by friction, where no ability to function as a change-agent and confronting those legacies in recent years. force means no progress and velocity is year has passed since white positive disrupter who could tackle racial But the implied question remains: did the proportional to force. To-and-fro strokes, supremacists descended en issues. But her tenure so far has been historical sins and contemporary inequities whatever their timing, don’t work either. If masse on Charlottesville, Vir- marked by bitter power struggles. In recent somehow facilitate the alt-right? scallops were bacteria-sized, their usual Aginia for the “Unite the Right” weeks city government has virtually ground After all, Richard Spencer, one of the strategy, to progress by closing their shells rally. What began on August 11, to a halt, as part of a dispute in which the main organizers of the “Unite the Right” fast and opening them slowly, would get 2017 with a torchlit march through the Uni- Mayor at one point took to Facebook Live to rally, is a 2001 UVA graduate. The key local them nowhere. Real bacteria, to move for- versity of Virginia’s famous Lawn culmi- denounce her fellow council members for leader, Jason Kessler, also a recent UVA ward, often resort to using screwlike fla- nated the next day in a violent confronta- their handling of a delicate hiring process graduate, took to the Law School library gella which they turn in only one direction. tion at the downtown site of the historic for the new city manager. this spring ostensibly to prepare his re- Other swimming situations feature far Robert E. Lee statue. The chaotic melee led Much of this political infighting reflects search on permits for a follow-up rally, and less resistance—or none at all. That’s not an to the death of Heather Heyer in a car-ram- a liberal enclave struggling to make sense live-tweeted racist and anti-Semitic state- unmixed blessing. It makes swimming chal- ming attack and of two State Police officers of the eruption of virulent racism in the ments, until the university changed its reg- lenging in different ways. in a helicopter accident, as well as dozens heart of the community. This soul-searching ulations in order to bar him from the Even with nothing to push against, there of injuries. Ever since, the city has contin- has exacerbated the fault-lines between grounds. These incidents suggest how so- is one important thing you can still do. By ued to feel the quieter aftershocks, in ways Democratic moderates and progressives, as phisticated and adept today’s bigots have contorting your body, you can change your that reflect deep fissures in American soci- in the current race for Virginia’s Fifth Con- become in using the university’s very open- orientation. Divers “swim” through air and ety. gressional district. Virginia’s Fifth has not ness against it. must arrange to hit the water just so. They In the immediate aftermath, there were voted for a Democratic presidential candi- The past few weeks have brought still generally do their reorientations in a prac- public calls for communal healing and jus- date since Harry Truman (not counting seg- more controversy. The appointment of Marc ticed way, aiming for a chosen angle. But if tice, and many local leaders assumed that regationist George Wallace’s 1968 Indepen- Short, former White House legislative direc- divers slip off their diving board unexpect- the Lee statue would be swiftly removed. dent campaign). tor, as Senior Fellow at UVA’s prestigious edly, like cats falling from a tree, they have But public opinion about the statue re- After an acrimonious Democratic nomi- Miller Center of Public Affairs triggered vo- to improvise. mained split, and in any In contrast to reorienting yourself, lack- event, Virginia state law ing something to push against you can’t blocked its removal. A change your forward motion, or momen- stop-gap solution of tum. (Though if you happen to have a jet- shrouding the statue in pack, you can eject mass and recoil.) This black tarpaulins was de- brings to mind the peculiar horror of astro- vised, only to be once nauts losing connection with their space- again overruled by the craft, and then drifting forever helplessly courts. Thus Lee’s statue through outer space, doomed by the laws of remains in place, sur- physics. In an iconic scene from “2001,” the rounded now by con- highly advanced computer HAL ejects astro- struction-barrier netting, naut Frank Poole into space. That seals languishing in a perma- Frank’s fate. It also seals HAL’s, as the sur- nent state of temporary viving astronaut, Dave, resolves then and closure—a symbol of the there to lobotomize him. way last year’s events Electrons swim, too—through materi- continue to haunt the als—and a lot of technology revolves city and its politics. around helping them do so efficiently. Even Charlottesville has when electrons are not bound in atoms, and long outgrown its patri- are therefore nominally free to move, they cian Jeffersonian roots have to weave their way through a lattice of to become a mecca for nuclei and get buffeted both by vibrations artists and musicians, (phonons) and by each other. That’s what youthful retirees, and underlies electrical resistance in metals. clean-cut techies. More But in superconductivity—a state of mat- recently, refugee families ter that, at least for now, requires very low resettled by the Interna- temperatures—electrons learn to cooperate. tional Rescue Committee Resistance vanishes, and currents will flow and an influx of urban without generating heat, in principle for- transplants have at times Marchers at nation process, voters passed over several cal faculty protests. Critics argued that the ever. It’s as if the ocean were chock-a-block lent the town the air of the ‘Unite other strong candidates to pick Leslie Cock- hiring of a political figure tied to President with fish, all moving together. To swim, Brooklyn in the Blue the Right’ burn, a left-wing investigative journalist Trump’s moral equivocation on white na- you’d simply go with the flow. Ridge Mountains. But the rally that with a polarizing background as the author tionalism violated the institutional mission Athletes speak of being “in the zone,” legacies of slavery and took place of “Dangerous Liaison,” an inflammatory of civility and bipartisan dialogue. College when you do wonderful things automati- segregation remain em- last August expose of the American relationship with Republicans and a handful of former Board cally, without conscious effort. Supercon- bedded in the town’s Israel. With the memory of the white su- members have pushed back against what ductivity is electrons swimming in the landscape and memory. premacists’ chant “Jews will not replace us” they consider partisan hypocrisy. zone. And sometimes while swimming, That, of course, is what brought the alt- still fresh, critics wasted no time in accus- In all these controversies, part of what is when my thoughts take me out of body, I right movement to Charlottesville in the ing her of anti-Semitism, though many local at stake is a perception that the university get there too. first place: the irresistible combination of a Jewish Democrats seem willing to ignore is a rare preserve of open dialogue, under politically progressive, racially diverse the charge as partisan hyperbole. assault by illiberal forces. To protect this Southern city with a flashpoint Confederate Meanwhile, the Republican congressional institution and the larger Charlottesville statue standing at its center. As the orga- candidate, businessman Denver Riggleman, community will require building consensus nizers grasped, there was no better way to has struggled to define his relationship to about how to respond to hatred. That pro- “Unite the Right” than by targeting the left the radical fringe within his own party. Af- cess begins with a clear accounting for the at the site of its own internal contradic- ter allegations surfaced that an alt-right fig- reasons for the dramatic resurgence of rac- tions. ure was involved in his campaign, Riggle- ism and anti-Semitism. Yet historical reck- In the Charlottesville City Council, anger man issued a denial, and penned an op-ed oning in an ongoing climate of fear is no and resentment over last year’s march forcefully condemning anti-Semitism and easy endeavor, and white supremacists re- quickly turned inwards, as progressives racism. Yet he remains part of a Virginia main determined to exploit the fractures went to war with themselves. Debates over Republican ticket that includes gubernato- within today’s left and right, as much as the why the white supremacists were not rial candidate Corey Stewart, an unrepen- polarization between them. One year later, stopped from marching, and over the hap- tant Confederate booster who has made the Charlottesville, like America itself, is still less police response, led to the ouster of the Charlottesville statue the center of his cam- figuring out how to meet these challenges. police chief, the city manager, and the paign. This has continually drawn Riggle- mayor. The city’s new mayor, elected in Jan- man back to uncomfortable questions about Mr. Loeffler is the Jay Berkowitz Profes- uary, was a political outsider, Nikuyah the ties between Charlottesville, racism, and sor of Jewish History at the University of

TOMASZ WALENTA Walker, an African-American community ac- the far right in Virginia politics. Virginia. THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | C5 REVIEW

HISTORICALLY SPEAKING leagues put people in a brain scanner and presented them with overlapping You See Less words and line drawings. Given a AMANDA FOREMAN task involving the words, the region of the subject’s brain associated with word recognition lit up as expected. But given a task involving pictures, When Royal Than YouThink the word-specific brain activity dis- Love Affairs appeared. The brain was now oblivi- ous to the words—even though the eyes were looking right at them. Go Wrong Why does the brain fool us into Our seemingly detailed view of the world is more of an ever-changing imagining that conscious experience “AY ME!” laments Ly- sketch than a rich portrait. Our minds fill in the blanks. mirrors the outside world, when, in sander in Shakespeare’s reality, we perceive the world “A Midsummer Night’s BY NICK CHATER it is possible to detect the patterns through a narrow window? The an- Dream.” “For aught that created by just, say, the green swer is that the recognition and in- I could ever read, / onsider your conscious squares. But when we focus on the terpretation of objects is incredibly Could ever hear by tale or history, / experience right now. green squares, the rest of the grid difficult, so the brain focuses its lim- The course of true love never did Eyes wide open, you appears as little more than a jumble. ited resources on one task at a time. run smooth.” What audience would Csee rich, detailed, col- The trick our brain is playing is Most of the time, the world is stable. disagree? Thwarted lovers are in- orful surroundings, remarkably simple. In the reading I don’t need to perceive the coffee deed the stuff of history and art— perhaps crowded with objects, experiments, how can the brain pre- mug I looked at a moment ago; I just especially when the lovers are kings pieces of furniture, books, papers serve the reader’s illusion that the need to remember where it was, well and queens. and coffee cups. The world of inner text is normal, when in fact words enough to find it when I need it. But there were good reasons why experience seems to be a mirror of are blinking in and out of existence The same illusion fools us when the monarchs of old were not al- the detail of the outer world. as the eye scans the screen? It’s be- we try to imagine visual objects. But the conclusion of decades of cause, when we wonder about the Try to picture a baseball as vividly experiments is that this idea is identity of an individual word, the as you can. Then trace the seam false. The apparent richness of our brain flicks our eyes over to look at that runs around the baseball in perception is an illusion. The flow it. The word then comes into focus, your mind’s eye; imagine unpicking of our conscious experience is, in so quickly that we imagine it was the seam and taking off the cover. fact, remarkably sparse—not a fully there all along. How many pieces are you left with? detailed 3-D cinematic extrava- An illusion devised by French re- Can they be laid out flat? What ganza, but a wonderfully evocative searcher Jacques Ninio demon- shape are they? The correct answer and continually evolving sketch, strates the phenomenon with a grid is that the cover divides into two drawn in rapidly fading ink. of dots. All the dots are technically identical dumbbell shapes. This is We have known since the 19th visible all the time, but if they are easy to see if you have a baseball in century that the human eye only sees crisscrossed by a matrix of straight front of you, but it is very difficult in full color and detail in the fovea, a lines, each dot appears to pop up in- to visualize. Unless you happen to tiny pit of densely packed light-sen- dividually only when we focus on it. be a baseball player, your mental sitive cells on the retina. This corre- Our experience of seeing the image of a baseball, however vivid sponds to a tiny circular region of world around us, then, does not rely it might seem, is no substitute for THOMAS FUCHS the visual field, the size of a small on our minds mirroring reality, but the real thing. And what goes for vi- coin at arm’s length. Outside this re- on the fact that the world is at our sual imagery is also true of our be- lowed to follow their hearts. Real- gion, the image that the eye per- visual fingertips. Even though we liefs, desires, emotions, memories— politik and royal passion do not ceives is largely blurry and colorless. only grasp one object, word, or color our entire ”inner world,” whose mix, as Cleopatra VII (69-30 B.C.), Not only that, our sense that we at a time, we can freely query any as- inner richness crumbles as soon as the anniversary of whose death falls can simultaneously grasp each object pect of the world around us and re- it is interrogated. on Aug. 12, found to her cost. Her in the clutter around us is fake. In ceive an instant response. theatrical seduction of and subse- cluttered scenes, the ability to per- Similarly, when I am listening to a Mr. Chater is a professor of behav- quent affair with Julius Caesar insu- ceive any individual item is severely How are these colored conversation and writing on my ioral science at Warwick Business lated Egypt from Roman imperial impaired by the presence of those grids similar? Checking smartphone, I have the illusion of School. This is adapted from his designs. But in 41 B.C., she let her nearby, as summarized in a study each single-color pattern multitasking, but I am actually just book “The Mind is Flat: The Re- heart rule her head and fell in love published last year in Psychological at the bottom helps, hopping rapidly from one task to the markable Shallowness of the Im- with Mark Antony, who was fight- Review. The effect is known as visual because it’s hard to see all next. At University College London, provising Brain,” being published ing Caesar’s adopted son Octavian crowding. Our brains can actually the colors clearly at once. neuroscientist Geraint Rees and col- Aug. 11 by Yale University Press. for control of Rome. perceive just one object at a time, Cleopatra’s demand that Antony whether furniture, faces or fish. divorce his wife Octavia—sister of For a concrete example, think about how Octavian—and marry her instead many words you can see clearly right now, as was a catastrophic misstep. It made you read this. You might think you are taking Egypt the target of Octavian’s fury, in a whole page or screen, or at least several and forced Cleopatra into fighting lines’ worth. Actually, it’s less. Rome on Antony’s behalf. The cou- In the 1970s, George McConkie and Keith ple’s defeat at the sea battle of Ac- Rayner, then at Massachusetts Institute of Tech- tium in 31 B.C. didn’t only end in nology, began an influential line of research in personal tragedy: the 300-year-old which they tracked the eyes of people while they Ptolemaic dynasty was destroyed, were reading. The researchers modified the dis- and Egypt was reduced to a Roman play so that, outside a moving 15-letter window province. around where the reader’s eye was looking, all In Shakespeare’s play “Antony the other words were replaced with strings of and Cleopatra,” Antony laments, “I the letter “x.” Someone looking over the partici- am dying, Egypt, dying.” It is a re- pant’s shoulder would see a small window of minder that, as Egypt’s queen, Cleo- English text moving along the screen amid a sea patra was the living embodiment of of meaningless letters. But the reader noticed her country; their fates were inter- absolutely nothing unusual. He or she would twined. That is why royal marriages have the impression of simultaneously perceiv- have usually been inseparable from ing whole lines of text—just as you do now. international diplomacy. Other recent work has shown that, just as In 1339, when Prince Pedro of we struggle to see more than one object or Portugal fell in love with his wife’s word a time, we may also see only one color at Castilian lady-in-waiting, Inés de a time. Research conducted in 2007 at the Uni- Castro, the problem wasn’t the af- versity of California, San Diego by Liqiang fair per se but the opportunity it Huang and Hal Pashler presented people with gave to neighboring Castile to med- patterns, such as colored squares on a grid, like dle in Portuguese politics. In 1355, those seen here. Subjects were asked whether Pedro’s father, King Afonso IV, took the patterns were perfect matches, precisely the surest way of separating the symmetrical, rotated, or none of those. couple—who by now had four chil- If the human eye could simultaneously grasp dren together—by having Inés mur- all the colors in the grid, this should be an easy dered. Pedro responded by launch- task. Yet participants had to check one square ing a bloody civil war against his at a time. Tellingly, however, there is a short- father that left northern Portugal in

BRIAN STAUFFER cut. By paying attention to one color at a time, ruins. The dozens of romantic op- eras and plays inspired by the tragic love story neglect to mention its political repercussions; for decades af- terward, the Portuguese throne was weak and the country divided. Perhaps no monarchy in history EXHIBIT bears more scars from Cupid’s ar- row than the British. From Edward II (1284-1327), whose poor choice of male lovers unleashed murder and POSTAL mayhem on the country—he himself was allegedly killed with a red hot PROPAGANDA poker—to Henry VIII (1491-1547), who bullied and butchered his way through six wives and destroyed STARTING IN THE EARLY 20TH CENTURY, postcards served as a predeces- England’s Catholic way of life in the sor to social media. Postcards had an advantage over other forms of mass process, British rulers have been re- communication in that they could change hands quickly, says Benjamin markable for their willingness to Weiss, curator of the new exhibition “The Art of Influence.” During the pe- place personal happiness above riod from World War I through World War II, governments and companies public responsibility. used the small letters to spread propa- Edward VIII (1894 -1972) was a ganda messages. The “Influence” ex- chip off the block, in the worst way. hibit, running through Jan. 21 at Bos- The moral climate of the 1930s ton’s Museum of Fine Arts, showcases couldn’t accept the King of England 150 postcards from the era, including marrying a twice-divorced Ameri- depictions of heroic soldiers and mes- can. Declaring he would have Wallis sages of good versus evil. Simpson or no one, Edward plunged A 1941 Italian postcard that reads the country into crisis by abdicating “The Advance Continues” (far left) de- in 1936. With European monarchies picts a soldier pushing bravely toward falling on every side, Britain’s sud- the front. Other postcards used inspir- denly looked extremely vulnerable. ing symbolism, such as this 1941 U.S.- The current Queen’s father, King printed image (near left), that depicts George VI, quite literally saved it a “V” for victory, a common sign in from collapse. British and American homes at the According to a popular saying, time. “The cards dashed through the “Everything in the world is about mail in much the way that tweets and sex except sex. Sex is about power.” texts zip between people today,” says That goes double when the lovers

MUSEUM OF FINE ARTS, BOSTON (2) Mr. Weiss. —Alexandra Wolfe wear royal crowns. C6 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. REVIEW

time she experienced segregation. She noticed none of the white students went to North Minneapolis because “there was this unspoken boundary,” she says. “I could have at- tended Macalester and never seen the parts of Saint Paul where black people live if I had not been friends with Af- rican-American students.” She began to feel that “America misrecognized black people.” She remembers being followed in shops, being called by the wrong name and being mixed up with other black students who looked nothing like her, “countless times.” When she graduated, she was eager to get back to South Africa, where Mr. Man- dela had been freed a few years earlier. She returned to her homeland in 1997, and decided to pursue a career in human rights and social justice. She remembers the years after Mr. Mandela was elected president as a special time. “We got a chance to be a part of rebuilding,” she says. She first worked for a mission that provided community aid and services, then moved to a U.N. office focused on young people and AIDS. Later, she moved to Mr. Soros’s Open Society Initiative for Southern Africa, which promotes human rights and democracy. At Open Society, she helped prevent a ship believed to be carrying weapons from entering South African waters and delivering its cargo to Zimba- bwe amid election-related violence. The organization helped to secure a court order blocking the ship and then Ms. Msi- mang and her team called allies in trade unions and pro democracy groups along the coasts of Angola and Mozam- bique to make sure the ship

IAN&ERICK FOR THE WALL STREET JOURNAL didn’t try to dock elsewhere. The approach was “to make as WEEKEND CONFIDENTIAL much noise as possible so that | ALEXANDRA WOLFE actors who otherwise operate under cover of darkness are shamed,” she says. While working as an activist, she met and eventually married an Australian, who is white. When they were dating, she worried about their differ- Sisonke Msimang ences and even broke up with him briefly over race. Since then, “he has taught me that love is not based on sameness and difference,” she writes in her memoir. “I have learnt to hold us close and An activist spurred by a childhood in exile that means shrugging at attempts to define us in ways that diminish what we have gone through and who we are to each other simply because others uthor and activist Sisonke Msimang grew up surrounded gender equality by working with men and boys, and Out of the are curious about my blackness and his whiteness.” by South African revolutionaries. Her great uncle was a battled against gender-based violence. She spent crucible of a When her daughter was born in 2008, she founding member of the African National Congress, and four years as executive director of the Open Society youth spent gasped, “She’s white.” She writes, “I am half- A her father was part of Nelson Mandela’s antigovernment Initiative for Southern Africa, part of George Soros’ in exile came amused, half-aghast, not so much because of her militia. After Mr. Mandela’s imprisonment, her father network of aid and advocacy organizations, and has her activism whiteness, but because of her apartness from me.” fled the country to Botswana, Tanzania and Russia before making his been a fellow at global leadership programs at Yale as a writer Today, Ms. Msimang lives with her husband, who way to Zambia, where Ms. Msimang spent much of her childhood. University and the Aspen Institute. and human is a consultant on economic development in devel- She remembers their home in Zambia being filled with people who More recently, she has focused on writing, after rights oping countries, and two children in Perth, Austra- streamed out of South Africa, all agitating for Mr. Mandela to be re- feeling like too much of the conversation about so- worker, lia, where she works with mostly museums, cultural leased from prison. In exile, the family moved again, to Kenya, Can- cial justice issues took place among activists. She’s which she organizations and social justice groups on “oral ada and back to Kenya. “Nelson Mandela was always our narrative written opinion pieces about southern Africa’s polit- reflects on in storytelling,” helping them craft stories that convey device,” she says. “Mandela being in Robben Island was the coherent ical issues for the Guardian and the New York Times. her first their work in compelling ways. The stories are then story for why we were moving all the time.” Ms. Msimang says she got a sense of what it was book. told at evening events and turned into podcasts. Finally, when she was a teenager, Mr. Mandela was freed. “How of- to be a minority while living in Canada at age 10. “In Ms. Msimang often visits South Africa, where ten do your fairy tales come true?” says Ms. Msimang, now 44. Africa, you’re the majority, you don’t question if it’s she sits on boards of nonprofits that fight corrup- Out of that crucible came her own activism as a writer and human possible to be a beautiful black women, or intelli- tion and do investigative journalism and social rights worker, which she reflects on in her first book, the memoir gent,” she says. At school, a boy on the playground justice work. “While I live in Australia,” she says, “Always Another Country,” out next month in the U.S. after debuting called her an “African monkey.” Her father marched “I really feel as though I remain an active citizen last year in South Africa. “I was already inclined to care about injus- into the principal’s office and demanded he and the of South Africa—that given everything, my love tice because of the way I grew up,” she says. kids who laughed apologize and be punished. for my country and my loyalty to it remains un- She has fought against election violence in Zimbabwe, pressured She went to the U.S. for college, at Macalester stinting, even if I am loving her from a distance governments to spend money on combating AIDS, pushed to promote College in Saint Paul, Minn., and said it was the first for the moment.”

Museums Empire State boon- ters and documents Yeah, give the International Ba- docks, and the Pro containing semico- nana Museum a run for its Football Hall of lons, painstakingly money. Get some skin in the We Neve r Fame is in Canton, collected by thou- game. Ohio, which no one sands of volunteers • The National Plantar Fas- MOVING Knew We but a truly deter- and set down by ciitis Museum. People think TARGETS mined pigskin fan everyone from that only athletes and weekend We re would go out of his Lady Godiva warriors suffer from this afflic- JOE way to visit. At (“Could do flesh- tion. Wrong! Extensive podiat- QUEENAN least the Hockey tone; could go na- ric documentation of famous Missing Hall of Fame is ked”) to John Wil- victims like Robespierre and right there in kes Booth (“When I Mata Hari. downtown Toronto. finish off Lincoln, I • The Pacific Northwest Tofu I’m not sure why could say some- Museum. Hopes AN OFFICIAL national museum we need a Museum thing like ‘Ave, Sa- • The Museum of Obvious- of comedy has just opened in of Comedy; it’s a bit like a Mu- ate spinoffs such as a Brooklyn- tanas!’; on the other hand, ‘Sic ness. Not to be confused with abide for Jamestown, N.Y., about 75 miles seum of Air or a National Car- based Museum of Irony. It is Semper Tyrannis!’ might be the Museum of the Patently venues from Buffalo. This in itself bohydrate Center or a Museum probably too much to hope for more classy.” Obvious. devoted might seem like a bit of a joke; of Dry Cleaning. But if we must a Museum of Mordant Contu- • The Museum of Rejection. • The Comb-Over Museum. you would think that a proper have a national comedy mu- mely or The North American Displays honor famous politi- • The Museum of Former to irony, Museum of Comedy would be seum, I would hope that the cu- Snark Foundation, but I am cians that lost pivotal elections, Hotties. The one museum abso- rejection located in New York or Los An- rators would at least treat us to hoping just the same. Dreams legendary job seekers that got lutely no one wants to be in- geles or Peoria or the Mistake individual displays of each die hard. turned down for important ducted into. and the by the Lake or somewhere with state’s funniest comic. Let’s set- With a just-created Pizza jobs, now-immortal inventions • The Museum of Mirrors. semi- a more direct link with humor. tle once and for all the nagging Museum and a thriving Mu- that nobody wanted to bank- For the truly, truly self-ab- colon. But Jamestown is Lucille Ball’s question: Who holds the title of seum of Sex and a plethora of roll. Exhibits include curt rejec- sorbed. hometown, so there you have it. Funniest Alaskan? museums devoted to everything tion letters sent to Leo Tolstoy, • The Museum of Hale-Fel- The National Comedy Center I also hope the museum will from bananas to matchsticks to Marie Curie, Christopher Co- lows-Well-Met. Honoring class continues the long, time-hon- include a wing dedicated to cryptozoology to bicycles and lumbus and Albert Einstein acts, stand-up guys, salt-of-the- ored tradition of boosters and Least Funny Living Comics (Jim mountain bikes, it is virtually (“E=mc². Mc²? Seriously? Says earth types and guys-you-want- civic fathers opening a museum Belushi gets my vote) and least impossible to think of a mu- here it’s M=ec², dummkopf.”) in-your-corner-when-the-chips- in the hopes of transforming funny movies (anything star- seum that does not yet exist in • The Museum of the Self-Ef- are-down. some negligible backwater into ring Jim Belushi gets my vote). America. But I am thinking. facing. Might have trouble get- • The Museum of Reclusive- a major tourist draw. Baseball The National Comedy Center Hereareafew. ting new inductees to show up ness. Greta Garbo, Howard has its Hall of Fame in a rela- might even spawn a number of • The Museum of the Semi- for the ceremony. Too modest. Hughes, Donald Trump. Only

tively inaccessible region of the more geographically appropri- colon, including exhibits of let- • The Museum of Plantains. joshing about that last one. SERGE BLOCH Kick Out the Jams Sisters in Flight The life and crimes of How ﬁve daring Wayne Kramer, guitarist American women made for the MC5. C12 BOOKS aviation history. C9

READ ONLINE AT WSJ.COM/BOOKSHELF THE WALL STREET JOURNAL. **** SATURDAY/SUNDAY, AUGUST 11 - 12, 2018 | C7 From Tiny Seeds The study of hardy microbes called archaea has shed sharp new light on evolution and humans’ place in it The Tangled Tree By David Quammen Simon & Schuster, 461 pages, $30

BY DAVID P. BARASH

PERENNIALLY DIVERTING parlor game is to suggest who should have won a Nobel Prize A but didn’t. Among the sciences, such notables include Dmitri Mendeleev (whose periodic table made sense of the otherwise kaleidoscopic array of atomic elements), Rosalind Franklin (whose x-ray crystallography was needed before Watson and Crick could unravel the structure of DNA) and Stephen Hawking (black hole theorist extraordinaire). There are few biologists—and perhaps no microbiologists or cell biologists—who wouldn’t include Carl Woese in this august company. Woese (1928-2012) identified archaea as a third basic domain of animal life, to go with bacteria and eukaryotes (such as ourselves and other “higher” organisms). Before the late 1970s, tiny archaea had been considered a kind of bacteria, because bacteria and archaea are similar in lacking a nucleus. But archaea and eukaryotes turn out to be similar in other respects, and archaea are unique in yet others. For example, the structure of archaean cell walls is uniquely based on highly stable ether-linked compounds, whereas bacteria are ester-based; this enables archaea to thrive in environments that are extremely hot, salty and so forth. Archaea are also extraordinary in their ability to produce methane as a result of their metabolism— another trait that helps them tolerate envi- rons lethal to other critters. Finally archaea have a unique form of RNA (ribonucleic acid, employed as the intermediaries between DNA and the finished proteins it codes for). The more we study such molecular-level distinctions, the more we appreciate archaea as a radically distinct third domain of life. If bacteria and eukaryotes are as different as apples and oranges, then adding archaea makes it apples, oranges and

avocados. WOLFGANG BAUMEISTER/SCIENCE SOURCE Much of David Quammen’s “The Tangled SURVIVOR An electron microscope image of enzymes from Staphylothermus marinus, an archaeon that can endure temperatures up to 208 degrees. Tree” revolves around Carl Woese and archaea, whose very existence and novelty after researchers gained the capacity to The third and final leg of Mr. Quammen’s tions), “Monster of God” (about animal preda- were so contrary to scientists’ previous determine the sequences of these all- mostly microbiological tripod is horizontal tors that regularly kill and eat people) and understanding that Woese himself described important molecules. Such advancements, gene transfer (HGT), a process we have “Spillover” (about diseases transmitted from his discovery as an “out-of-biology experi- according to the author, have led to “a recently learned much more about, whereby animals to humans), consistently impress with ence.” The tangled tree of Mr. Quammen’s revolution not just in bacterial taxonomy genes can pass among certain organisms not their accuracy, energy and superb, evocative but also in something broader: the way only via vertical transmission from parents to writing. scientists understand the shape of the offspring, but also (as the word clearly states) “The Tangled Tree,” though, becomes a bit Genes can be passed not only history of life.” horizontally among fully formed individuals. tangled in its own right, as the book attempts The title of Mr. Quammen’s book was Such transfer has currently been docu- to describe not just what William James called ‘vertically,’from parent to inspired by the phylogenetic “trees” once mented between critters as different as fungi life’s “blooming, buzzing confusion” but the child, but also horizontally— drawn by researchers to depict evolutionary and insects, algae and sea slugs and, notori- stories of the biologists who are studying it. relationships, including Ernst Haeckel’s ously, between viruses and humans, often to Readers are introduced to a large even between different species. renowned (at least among late-19th-century our disadvantage. For example, human supporting cast of molecular microbiologists biologists) “great oak.” Mr. Quammen writes papillomavirus, which causes nearly all cases who don’t normally receive anything like the that Haeckel’s tree, at least, “has no canopy of cervical cancers, does its dirty work by degree of attention Mr. Quammen bestows title consists of three crucial advances of the and not much branching. It’s thick at the integrating its genes into the chromosomes of upon them here. Much of this celebration is late 20th century that together are hailed as bottom and tapers skyward, looking less like cervical cells, ultimately causing cancer. well-deserved, although the account some- revealing a “radical new history of life,” with a great oak than like an enormous rutabaga, But horizontal gene transfer is most times devolves into eye-glazing biographical a special starring role for microbes. slightly hairy, pulled from the ground and frequent among microbes—especially our lists: “Sol Spiegelman was...themanwho The first such advance was the identifi- turned point up. At its very topmost branch newfound friends, archaea—and HGT appears had recruited Woese to Illinois, and who had cation of archaea. The second was molecular sits the word Menschen, ‘people,’ flanked to generate a large share of the phylogenetic brought Sanger sequencing in the person of phylogenetics, which allows scientists to below (not side by side) with gorillas and interconnections that make life such a tangled Dave Bishop, who had trained Mitch Sogin, compare nucleic acids (DNA and RNA) orangutansandchimps....Itwasmeantto tree. A worldwide web, indeed. who had preceded Linda Bonen as Woese’s among different species and thus ascertain show lineage—human lineage.” On all these topics, David Quammen proves key technician. It’s a smallish world these evolutionary relationships among them. Metaphoric trees abound throughout this to be an immensely well-informed guide to a scientists live in, much interconnected.” True, Where once we based our understanding of book. The author points out that they complex story that in less capable hands but we needn’t be made privy to every such such connections on observable anatomical “speak of the shifting fortunes, the pulses would be unintelligible to the general reader. connection. traits, we now can look to underlying simi- and fades, that are so basic to evolution’s Indeed he is, in my opinion, the best natural The author seems to have interviewed larities of nucleic acid. story.” Today, for instance, we don’t present history writer currently working. Mr. Quam- every relevant scientific actor who touches Peering behind the curtain in this way humans as the end point of evolution, but men’s books, among them “The Song of the his story, and he provides personal detail has only become possible in recent decades, one node in a network. Dodo” (about island biogeography and extinc- PleaseturntopageC8

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‘Godcreatedseaweed....Theseaweedmadetheworld.’—JOHN B. KEANE A Fragile World at the Water’s Edge

SUPERFOOD A forest of giant kelp off the coast of California. DAVID FLEETHAM/VW PICS/UIG VIA GETTY IMAGES

Seaweed Chronicles writes beautifully about the interconnected- competition in the face of industrialization. seaweeds are still a constant in places like By Susan Hand Shetterly ness of humans and animals and the natural To Ms. Shetterly, hope lies in the this where animals and people come, as they Algonquin, 271 pages, $24.95 environment that we share. The twinned endeavors of the aquaculturalists, scientists have always done, to make their lives good.” concepts of community and belonging are and entrepreneurs she interviews. These Perhaps for this reason she sometimes takes BY KARIN ALTENBERG central to this story. By exploring the land individuals are strong, practical types: often a rather romantic approach. To work in the where we live, we can begin to understand well-educated, idealistic, committed and midst of beauty, she suggests to Ms. NCE,ONADAYof high winds our place in the world. entitled. She writes soothingly and with Redmond the kelp farmer, is “a gift that few and salt spray, on the island of “Seaweed Chronicles” is an elegy to generous insight about this community, people are able to enjoy, although one might North Ronaldsay, the environmentalism and to the individuals in where one might like to linger for a moment make the argument that it’s a human O northernmost of the Orkney Ms. Shetterly’s local community who are and rest from the harsh realities of a more birthright of sorts, working where the sun Islands of Scotland, I watched committed to the stewardship of coastal complex world. rises, the day clears, the smells of a flock of sheep clattering over the rocks at Maine’s natural habitat. Quoting Aldo She sits down by an open fire the wild world are all around you, low tide among a herd of resting seals. It Leopold, she reminds us that the true task of one evening for a conversation A call, not to and you are a part of something looked both perilous and peculiar, but the the environmentalist—the challenge for us with Shep and Linnette Erhart, very old, very big.” Ms. Redmond North Ronaldsay sheep are shore dwellers, all—is to “live on a piece of land without owners of Maine Coast Sea turn back laughs at this, reminding Ms. bred for generations to live in a seascape and spoiling it.” Vegetables, about the farming of the clock, Shetterly what it is like to work on feed on seaweed. Farmers on the island a “Solastalgia” is a relatively new word for nori for sushi, as the tide comes in but to live the sea in winter, and I, too, have couple of centuries ago, adapting to changes the angst one feels when a familiar place is and two black bears pass through to protest a little at this point. in farming as the production of soda ash from altered by climate change. This worry is the meadow outside. Kelp farmer deliberately There is no need to be didactic kelp subsided, consigned the sheep to the palpable in Ms. Shetterly’s book, together Sarah Redmond looks like she “had and take about place; surely we are all able island’s rocky shore and kept them away from with a longing for a world that can withstand stepped straight out of a Jane to perceive beauty—or its the crops with a stone dike that today still the complexity and flux of our current society. Austen novel” but is clearly more stock of the absence—in our life and work. encircles the island. Her bay in Maine has changed, Ms. Shetterly of a powerhouse than a chatterbox: things we In the end, this is not about Throughout history, maritime communities writes, and among the members of her com- a driving spirit behind the local don’t want turning back the clock or calling around the world have learned to face munity there is a real and tender sense of development of aquaculture. Writer for a global shift in behavior, but uncertainty with similar resolve—and loss. “We have lost the abundance that used Paul Molyneaux used to be a to lose. about a philosophy. “Seaweed recognized the importance of seaweed for to be a part of the definition of this place, and fisherman and could hear the tide Chronicles” is a local affair and, as their survival. In “Seaweed Chronicles,” Susan the changing climate bears down especially turn from the way it “slaps the such, gives more justice to Ms. Hand Shetterly introduces us to the cultural hard. And yet so many of us work to under- rocks a little differently when it starts coming Shetterly’s endeavor and closes in on heritage of seaweed in the Gulf of Maine and stand where we live, to use what’s left of wild back.” Nancy Sferra is a biologist, something real. “Attention,” Simone Weil to the industry and politics of modern-day water and shore carefully and well. Perhaps conservationist and policy maker who speaks once wrote, “is the rarest and purest form of seaweed growing and harvesting. As kelp has that makes us unrealistic dreamers. Perhaps it “clearly and briefly,” “listens carefully,” generosity.” Ms. Shetterly is simply urging us increasingly been recognized as a source of makes us steely-eyed realists. Certainly it “states what she believes” and, over the past to pay attention to nature, to live deliberately, “superfood” over the past two decades, the makes us fighters.” two decades, has been instrumental in to take stock of the things around us that we business of harvested seaweeds has grown to “Wild” is a central value here, but the protecting some of the most valuable don’t want to lose. about $6 billion a year, bringing new jobs to concept is tricky in our current age, when the seascapes in Maine. You get the sense that it There may be bigger challenges in the coastal areas as fishing has declined. Ms. human hand has influenced most of what we is individuals like these—hardy if humble world today than the growing and harvesting Shetterly’s is a story about the sustenance, think of as “natural.” The Gulf of Maine is a heroes, knights of the shining rockweed—who of seaweed, but the responsibility and care— use and preservation of finite resources, cultural environment and, increasingly, a will keep it all steady and help us reconnect the paying attention—that the individuals in where aquaculture—specifically, the political one. Running through the book is a with the natural world. Ms. Shetterly’s seascape represent endow us sustainable farming of seaweed—emerges as story about the challenges of agreeing on a Ms. Shetterly is convinced and convincing with the fortitude to do the same. the key to ecological redemption. policy that meets the interests of individual about what constitutes a meaningful As in her previous collection of essays harvesters and companies as well as existence. “Out here, the picture looks pretty Ms. Altenberg is the author of the novels “Settled in the Wild” (2010), Ms. Shetterly conservationists, who are increasingly in clear: everything else is in flux, but the “Island of Wings” and “Breaking Light.”

embryology, paleontology, physiol- tency of Darwinian selection in a The ogy, behavior). new way. Appreciating archaea has been the In some cases, this new under- most surprising accomplishment of standing has illuminated processes Tangled molecular phylogenetics thus far. But that have dire implications for hu- in nearly all other cases, the various man well-being. We now know, for ways of identifying deep historical instance, that overuse of the two Tree of Life connections reinforce one another most potent anti-tuberculosis drugs rather than present contradictions. (isoniazid and rifampin) eliminates For “revelatory scope,” in other most of the microbes responsible for ContinuedfrompageC7 words, I’d stick with “all the fossils TB within a patient—but those mi- about many of them. Some general in all the museums of the world.” crobes that survive can spread resis- readers may appreciate his putting Then there is the book’s charged tance genes horizontally as well as human flesh on the book’s technical subtitle (“A Radical New History of vertically. This has led to a growing bones, but will they be curious to Life”), which in conjunction with the world-wide public-health menace, in learn whether a given scientist was author’s emphasis on horizontal the form of multidrug-resistant TB. tall or short, liked pepperoni pizza gene transfer might suggest to some Mr. Quammen would be the first or preferred plain cheese? I suspect inattentive readers that HGT in some to insist that molecular evidence these individual biographies are not way overthrows Darwin’s account of should only reinforce our apprecia- intrinsically more fascinating than evolution by natural selection. (Not tion and wonder for the branching, those of the employees at your local even close.) Mr. Quammen does a ancestral nature of evolutionary con- grocery store or car wash. Even Mr. fine job of reviewing how adding nections among living things—as Quammen, for all his writerly talent, archaea to the traditionally recog- well as the degree to which each cannot change this. nized “tree of life” has already been seemingly individual organism is a Moreover, in “The Tangled Tree,” misrepresented by creationists in composite of interpenetration. His Mr. Quammen occasionally has fallen just this way. Even the usually re- big book touches on so many fasci- prey to his own admirable enthusi- sponsible magazine New Scientist nating and important subjects that I asm. Take, for instance, his assertion once came out with a horribly mis- worry that “The Tangled Tree” occa- that “measuring genealogical rela- leading cover article titled “Why sionally loses sight of the Darwinian

tionships with molecular techniques Darwin Was Wrong About the Tree ASSOCIATED PRESS forest that puts all these processes . . . opened a new perspective on the of Life.” But it was New Scientist BUILDING BLOCK Carl Woese holding a model of an RNA molecule, 1961. in perspective. evolutionary past, equivalent in re- that was wrong. velatory scope to all the fossils in all It’s crucial to understand that transmission, via horizontal transfer, Molecular evidence may have in- Mr. Barash is an evolutionary the museums of the world.” Molecu- evolution occurs due to the differen- or through the machinations of some creasingly replaced anatomy as the biologist and professor emeritus of lar phylogenetics is only revolution- tial reproduction of certain genes as-yet-unidentified ET. In fact, when most solid basis for establishing ac- psychology at the University of ary—or even controversial—insofar rather than others, no matter where Darwin unraveled the mechanism of curate taxonomy. But recognizing Washington. His most recent book as the evidence we glean from it those genes came from—whether evolution, he didn’t even know genes horizontal gene transfer doesn’t up- is “Through a Glass Brightly: Using contradicts other previously avail- they appeared by mutation, by the existed—he simply recognized that set the Darwinian applecart. Indeed, Science to See Our Species as We able forms of evidence (anatomy, more usual vertical parent-offspring heredity somehow occurred. it helps us to understand the po- Really Are.” THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | C9 BOOKS

‘If you will tell me why, or how, people fall in love, I will tell you why, or how, I happened to take up aviation.’ —LOUISE THADEN Freedom of the Air

Fly Girls continuing, the other women waited By Keith O’Brien with her. As Earhart would point out, HMH, 338 pages, $28 the women still did better than the men had in their derby the previous BY ELIZABETH WINKLER year; of the nine men’s planes that PILOT PROJECT took off from New York, only one N 1920 AMERICAN women Counterclockwise from top reached Los Angeles. But for one were finally equal in the left, Amelia Earhart, woman the race proved fatal. Marvel voting booth but nearly no- Florence Klingensmith, Ruth Crosson crashed in the Arizona I where else. They still had to Nichols, Ruth Elder and desert. fight for their rights on every Louise Thaden. There was no investigation into other front, from the factory floor to whether sabotage had played a role the courts of law. But one of their in her death. Instead men blamed battles for equality didn’t happen on Crosson’s supposed incompetence. “If land at all. It happened in the sky. it hadn’t been for her fear and confu- In “Fly Girls,” Keith O’Brien tells sion” she would have lived, said Erle the story of America’s first female Halliburton, founder-president of the aviators. It’s a story much bigger airline and oil company. “Women than the name Amelia Earhart, have been dependent on men for though hers is the only one most guidance for so long that when put readers will recognize. The other on their own resources they women—and the larger movement are handicapped.” they were part of—have been forgot- The women soon ten. Mr. O’Brien, a former reporter formed a new for the Boston Globe now working in group, the the tradition of “Hidden Figures” Ninety-Nines (they and “The Girls of Atomic City,” has were 99 members recovered a fascinating chapter not strong and growing), to just in feminism and aviation but in fight for their rights and to 20th-century American history. mentor other female fliers. They In the 1920s and ’30s, airshows had successes, setting new records in and airplane races drew crowds in speed and altitude, sometimes record- the hundreds of thousands—bigger ing higher speeds than the men. But even than opening day at Yankee they had failures, too. Ruth Nichols’s Stadium. Flying was then so danger- attempt at a solo flight across the ous that it’s hard to believe that Atlantic ended in a crash at her first anyone, man or woman, dared to refueling stop, a New Brunswick air- board those early, open- strip. She broke two vertebrae; still, cockpit planes. Propellers she soon resumed flying. In 1933, were snapping, wings fail- Florence Klingensmith, the young ing, control sticks jam- daredevil with “dangerous curves” ming. Fliers hurtled (a reference to both her flying and toward the thrill-seeking her figure), died when pieces of her crowds or smashed up wing tore away. Officials, blaming their crates in the the accident on her lack of stamina countryside. Still, more and “weakened condition,” banned kept coming, competing women from racing. for headlines, fame and When a man soon after died in the money as the nascent Alabama housewife whose the women, with the backing of Los Angeles same way, the hypocrisy became too obvious aircraft industry tried to husband, jealous of his wife’s socialite Elizabeth McQueen, founded a to ignore. Women raced again. In 1936 Louise convince Americans that celebrity, complimented her professional organization, the Women’s Thaden and her copilot, Blanche Noyes, flying their planes were safe. only as an “ace-high house- International Association of Aeronautics. The from New York to L.A., won the Bendix Against this backdrop, a keeper”; Louise Thaden, a mother following year the WIAA sponsored the Trophy, beating the men and making headlines group of women emerged who of two who fell in love with planes Powder Puff Derby, a 2,000-mile women’s- across the country. Cliff Henderson, the race would insist on their right to race while selling coal in Wichita, Kan.; only race from Santa Monica to Cleveland— organizer, was irked. “I’m afraid you’ve won,” in the skies. Whether women should Ruth Nichols, a blue-blooded society girl with $10,000 in prizes. The contestants, he told them at the finish line. even be allowed to fly, let alone race, was a from New York; and Amelia Earhart, the first Louise Thaden emphasized, needed to be not They became icons. Earhart toured the contentious issue. Aeronautics was a man’s woman to complete a solo flight across the just good but perfect: “One hundred percent country, giving speeches at political rallies and game, and the women who tried to play it Atlantic Ocean. perfect, unduly careful.” Otherwise, women women’s clubs, arguing that a woman’s place were mocked as “petticoat pilots” and “flying They were all, in some way, fed up with the might not get to fly again. was “wherever her individual aptitude places flappers.” Some observers believed they simply strictures society had placed on their lives. But before the 19 women fliers could even her.” What they were really after, Mr. O’Brien weren’t capable of manning the machinery; The sky offered an escape. Ruth Nichols said of get started, they received an alarming tele- shows, was respect and the freedom to live others worried, paternalistically, that it was her first flight: “I felt as if my soul were gram: “Beware of sabotage.” One flier returned their lives as they chose—things the 19th too dangerous for them. But as the lady fliers completely freed from my earthly body.” to her plane to find that every switch in the Amendment alone hadn’t afforded them. argued in an editorial, “Women have the same But the politics of men followed them into cockpit had been turned on and every throttle But Thaden couldn’t understand Earhart’s inherent right to be killed in airplane races as the sky. Airshow promoters, airfield owners moved. Another found she had a clogged gas desire to push further, to fly around the men have.” and the National Aeronautic Association line, another that the ground crew had filled world—a flight that would be her end. “Women Mr. O’Brien tells of their struggle through tried to slap on restrictions: limiting the her oil tank with gasoline. They fixed their must try to do things as men have tried,” the stories of five women from radically differ- power of their engines, insisting they have a planes and took off anyway. Earhart explained. “Where they fail, their ent walks of American life brought together by man on board with them, requiring that two En route, the guy wires of one plane failure must be but a challenge to others.” a shared love of flying: Florence Klingensmith, U.S. Army planes escort them in races. Any snapped in mid-flight, leading the flier to a high school drop-out from Minnesota with a failure by a female pilot was held up as proof suspect tampering. When Earhart’s propeller Ms. Winkler is a writer for the Journal’s

PHOTOQUEST/GETTY; INTERNATIONAL WOMEN’Spenchant AIR & SPACE MUSEUM, CLEVELAND, OHIO; THADEN FAMILY COLLECTION; NATIONAL AIR AND SPACE MUSEUM ARCHIVES (INSET) for daredevil stunts; Ruth Elder, an that women didn’t belong in the sky. In 1928 broke and she had to wait for another before “Heard on the Street” column.

gifts as a lecturer were recognized by to the Swiss side. Mr. Jack- important matters, he is Science Michael Faraday, who himself had son, who has climbed the strangely silent. Often he tells gone from being a bookbinder’s ap- Matterhorn himself, vividly us that Tyndall was depressed, prentice to making epochal discover- recounts these feats. Few unable to sleep or had break- At the ies in physics and who gave spell- people (and fewer scientists) downs, yet he never offers any binding public lectures at the Royal have equaled such accom- explanation. Even if Mr. Jack- Institution. When Faraday chose plishments, requiring so son did not want to conjec- Summit Tyndall to be his “brother,” Tyndall much energy, courage and ture, it would have been help- replied: “Let me be your son.” sheer grit. What is more, ful had he said more. Perhaps The Ascent of John Tyndall Appointed professor at the Royal Tyndall used his Alpine he could have illuminated “the By Roland Jackson Institution in 1853, Tyndall proved to experiences to argue for a sadness with which I viewed Oxford, 556 pages, $34.95 be no less charismatic and influential new view of the nature of the Matterhorn,” among many than his mentor, though he never glaciers. Scientists had been other enigmatic moments: BY PETER PESIC made fundamental discoveries to debating whether glaciers Why should the great moun- equal those of Faraday, who provided were viscous—whether they tain make the mountaineer N THE 19TH CENTURY, sci- the concept of “field”—as in mag- poured downhill like a liquid sad? As a result, Tyndall as a ence and technology rose to netic or electrical fields—so funda- or slid like a solid. Tyndall’s person remains elusive. the center of public aware- mental to physics. Notably, Tyndall spotting of a section of gla- Then too, Mr. Jackson’s I ness. Among the luminaries studied how light and heat interact cier “smoothed and fluted” account of Tyndall’s scientific of Victorian science was John with gases, helping explain, for exam- by its passage over the work often lacks sufficient Tyndall, whose remarkable careers as ple, why the sky is blue. Yet Tyndall ground, Mr. Jackson writes, context to illuminate what was

a scientist, mountaineer and out- looms largest today because in 1861 bolstered his view that gla- EYE UBIQUITOUS/UIG VIA GETTY IMAGES at stake. On Tyndall’s contro- spoken public advocate brought him he demonstrated the role of carbon ciers were rigid. PIONEER Tyndall led the first expedition to climb the versial theory of magnetism, to the pinnacle of British society and dioxide and water vapor in heating Tyndall very much took Weisshorn, a peak in the Swiss Alps. which was important to his gained him world-wide renown. the atmosphere, a discovery that had up Faraday’s mantle as a early career, Mr. Jackson Tyndall (1820-93) has long awaited a already been made in 1856 by an prominent public advocate of science. est recent achievements of science: notes that history “perhaps unfairly” comprehensive biography, one now American woman, Eunice Foote (of He was acclaimed for his “striking the law of conservation of energy, the has not given its verdict for Tyndall, offered by Roland Jackson, a his- whom Tyndall was probably un- experimental displays,” Mr. Jackson theory of evolution and the germ but he never explains. One appreci- torian of science and former head of aware). To understand the origins of writes, which demonstrated physical theory of disease. Indeed, Tyndall ates the moments in which Mr. Jack- the Science Museum in London. In our present climatic predicament, we effects on stage with arrays of flames, conducted many experiments to test son does offer some help, but it would “The Ascent of John Tyndall,” Mr. look back to Foote and Tyndall, lamps, prisms and lenses. His lectures and defend the germ theory, still con- much more useful to know more Jackson amasses a wealth of detail to though it was not until 1938 that Guy captivated diverse audiences that in- troversial in the 1870s. Even more about the larger context than the give a fuller picture of this extraordi- Callendar quantified the role of hu- cluded workers and women as well as controversially, an address Tyndall names of the peers and grandees with nary man. man agency in climate change. Sadly, gentlemen. He rubbed elbows with gave in Belfast in 1874 claimed that whom Tyndall dined. Tyndall’s life began humbly, in a we are still struggling to respond ad- dukes and befriended Thomas Carlyle, science wrested from religion all its In many ways, Roland Jackson has respectable but impecunious Irish equately to this fateful truth. Ralph Waldo Emerson and Alfred claims “on the region of objective done a great service in his detailed family whose Protestant roots shaped Tyndall’s achievements went far Tennyson. He counseled the govern- knowledge, over which it holds no and careful presentation of John Tyn- his lifelong opposition to home rule. beyond the laboratory. He was one of ment on the design of lighthouses and command,” though leaving religion its dall’s life at a time when science is Starting out as an itinerant surveyor the premier alpinists in the golden fog horns. Tyndall also became a con- capability “of adding in the region of under attack, neglected and mis- without a college degree, he became age of climbing before the advent of troversial defender of advanced scien- poetry and emotion, inward com- understood, especially by those in one of the first Britons to earn a doc- the technical innovations that later tific positions, like his close friend pleteness and dignity to man.” This government. Their ignorance calls us torate in science at a German univer- mountaineers adopted. His most Thomas Huxley, the “bulldog” who attack on religion (and on the efficacy anew to realize for ourselves what sity. In Germany, he came to know notable climbs included the first solo championed evolution in a celebrated of prayer) raised a huge storm. science means and grasp its power. eminent scientists like the chemist ascent of Monte Rosa (the highest debate with Bishop Samuel Wilber- For completeness, Mr. Jackson Robert Bunsen and the pioneer of peak in Switzerland), the first ascent force. Tyndall worked to strengthen seems to have felt duty-bound to in- Mr. Pesic, director of the Science thermodynamics Rudolf Clausius, of the Weisshorn (“the noblest moun- science education when it was mini- clude a great deal of information Institute at St. John’s College, Santa becoming an ideal conduit between tain in the Alps,” in his words), and mal even in elite schools. about Tyndall’s social engagements Fe, is the author of “Sky in a Bottle” Continental and British scientists. the first traverse of the Matterhorn, To many audiences, he drew atten- and itinerary, down to the menus of and “Polyphonic Minds: Music of Tyndall’s skill as an experimenter and which he completed from the Italian tion to what he considered the great- certain meals. Yet on other, more the Hemispheres.” C10 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. BOOKS

‘Each friend represents a world in us, a world possibly not born until they arrive.’ —ANAÏS NIN

FIVE BEST NOVELS ON FEMALE FRIENDSHIP MYSTERIES TOM NOLAN Off the Megan Abbott Grid and The author, most recently, of the novel ‘Give Me Your Hand’ Into Trouble The Group coat and “somehow full of By Mary McCarthy (1954) secrets.” A tentative friendship begins, spilling swiftly into IN THE contemporary United Scandalous in its day, forbidden love. As the women States presented in Olen Stein- Mary McCarthy’s mordant circle each other, Highsmith hauer’s “The Middleman” 1 tale of eight Vassar plumbs a range of female (Minotaur, 360 pages, $27.99), graduates who set out to relationships—mother and an activist leader named Martin make their mark in New Deal daughter, mentor and protégée, Bishop has captured the loyalty America became better known furtive lovers, enchantress and of a revolutionary group called for its indelicate the enchanted. In one gorgeous the Massive Brigade. The Brigade descriptiveness and racy sex scene, Carol serves Therese a consists mostly of discontented scenes than for its other glass of warm milk, a gesture young citizens with various social-issue agen- noteworthy aspects. Among the both maternal and erotic. das—all unified by feeling “like aliens in their latter is the still-resonant Therese drinks it down own country.” Without warning or explanation, portrait of the complicated hungrily, “as people in fairy Bishop and his followers one relationships among a group of tales drink the potion that will THIS WEEK'S day drop off the grid. Where young women—strivers just transform [them].” What BOOKS have they gone? What are beginning to make their way in follows reads like a fever dream they planning? the world. But McCarthy is as Therese and Carol embark The In charge of these riddles after more than sizzle in her on a capricious road trip Middleman is FBI Special Agent Rachel detailed scenes of women together. In a kind of inverse of By Olen Proulx, a 20-year bureau vet- losing their virginity or getting Jack Kerouac’s “On the Road,” Steinhauer eran who has learned that fitted for contraceptive devices. they’re not seeking America or “the key to success was nei- She’s illuminating the themselves. They’re seeking Last Looks ther genius nor brute force experiences of women escape from a world that By Howard but persistence.” But brute struggling to build lives for denies their connection. Michael Gould forceprovestobeherenemy themselves in an era with Highsmith’s sole novel without once the Brigade apparently

seemingly few choices. Her J.A. HAMPTON/GETTY IMAGES a violent death, it’s also the stages simultaneous acts of most memorable creation, only one with a happy ending. political violence in several cities on the Fourth perhaps, is the enigmatic Lakey, banquet that fells all the against her, mocked her of July. the ur-alpha girl, who magazine’s interns with food ceaselessly, bullied her Hampering Rachel as much as helping her are disappears for most of the poisoning. Still, Esther’s main physically. All through Passing an obstreperous colleague bent on taking over novel but looms large in the problem is her sense of adolescence and young By Nella Larsen (1929) the case and a right-wing journalist who seems to imaginations of the other alienation—a feeling of being adulthood, the paths of the two have better sources than the FBI. The Brigade, women. Dubbed by the others out of place among all the repeatedly crossed. But each A slim, captivating novel meanwhile, suffers its own internal crisis as the “Mona Lisa of the Smoking energetic college girls eager to time, it seemed, Cordelia’s from the Harlem Bishop’s right-hand man tries to wrest control of Room,” Lakey is the one they take Manhattan in the early power diminished as she 5 Renaissance, “Passing” the movement. all admire, even as they’re 1950s. She’s torn between the struggled with adulthood while explores the complicated “The Middleman,” with its abundance of mystified by what she sees in two poles of womanhood Elaine—battle-hardened—grew relationship between childhood multidimensional characters and political view- them: “In private, they often represented by her fellow stronger. As Ms. Atwood’s friends who meet again as points, is a thought-provoking novel that never discussed her, like toys interns—the high-living Doreen bleakly fascinating tale unfolds, adults. Irene is a middle-class ceases to excite as a thriller. discussing their owner.” What as opposed to the dutiful Betsy. it’s clear that Elaine’s childhood wife and mother committed to Also exciting—though more satirical in Lakey has that they don’t is not Ultimately, Esther rejects all experience at Cordelia’s hands “racial uplift,” while the tone—is “Last Looks” (Dutton, 294 pages, just moneyed glamour but a these “models” of femininity. has had more than one alluring Clare, the wife of a $26) by Howard Michael Gould. Mr. Gould, a kind of freedom they can’t The novel famously concludes permanent effect. Not only has wealthy white man, is “passing” veteran screenwriter, sets his debut novel in fathom. She doesn’t break the with Esther starting all over as she never been able to trust as white and eager to engage Southern California, where former LAPD rules, she abandons them. herself: “I took a deep breath another woman fully, it’s also Irene in her secret. What detective Charlie Waldo lives in self-imposed and listened to the old brag of true that women—and Cordelia follows is a heady brew of exile on the side of a mountain, doing penance my heart. I am, I am, I am.” in particular—have come to jealousy and desire as Irene for errors committed in the line of duty. The Bell Jar dominate her art and her feels Clare insinuating herself Charlie’s meditative cocoon is pierced by the By Sylvia Plath (1963) imagination. In the end the two into her life. “The trouble with intrusion of his former love Lorena, a P.I. who Cat’s Eye old women sit over tea as Elaine Clare,” Irene thinks to herself, seeks his help investigating—and clearing the Sylvia Plath’s harrowing By Margaret Atwood (1988) tries to describe their strange “was, not only that she wanted name of—Alastair Pinch, the heavy-drinking novel may appear, on connection. “Hatred would have to have her cake and eat it too, English star of a popular American TV series 2 the surface, to be a tale Margaret Atwood takes a been easier,” she says. “Hatred but that she wanted to nibble who is accused of bludgeoning his wife to of estrangement and pitch-black approach to is clear, metallic, one-handed, at the cakes of other folk as death. “This is the biggest thing since O.J.,” loneliness as the college- 3 the cruelties and unwavering; unlike love.” well.” A classic unreliable Lorena tells Charlie shortly before she herself student narrator, Esther machinations of the narrator, Irene also seems drops out of sight, having coincidentally roused Greenwood, unravels during a relations between women. helplessly drawn to her old the wrath of a local ruffian. tortured internship at Ladies’ Elaine Risley, a successful The Price of Salt friend. Staring into Clare’s eyes, Hoping to combine the case that Lorena has Day magazine. But this is a painter returning to her By Patricia Highsmith (1952) she finds herself entranced by brought him with an opportunity to make her work far more complicated hometown of Toronto, finds “an expression so dark and life safe again, Charlie signs up on behalf of than that: one in which herself haunted by Cordelia, Inside a bustling deep and unfathomable that Pinch. In real life, Charlie’s new client is a bully- catastrophe is never without its who was her vicious tormentor Manhattan department she had for a short moment the ing curmudgeon and doting father who seems thrust of dark comedy. That in elementary school. As a 4 store, Therese, a 19- sensation of gazing into the as little interested in being acquitted as he is in would include, especially, young student uncertain of year-old shop girl, waits eyes of some creature utterly staying sober. But then again, as one Angeleno Esther’s disastrous dates with herself, Elaine had quickly on the blond and lovely Carol, a strange and apart.” The reminds the cop-turned-hermit, looks can be Manhattan’s would-be lotharios become a target. Cordelia suburban wife and mother with ending—a shocker—is deceiving: “This is Hollywood, Waldo. Who is and the elegant Ladies’ Day marshaled the other girls a voice as sumptuous as her fur heartbreaking and haunting. who they are?” A Pilgrim Without a Map

ACCORDING TO THE brain- ferryman, restlessly nostalgic Now Fitger is back in “The The reality Ms. Schumacher Ziggy Klein, a mousy teenager cracking laws of quantum for his youth as a sailor, steers Shakespeare Requirement” portrays is one in which litera- on the lowest rung of the social physics, an object in motion can his vessel full of commuters (Doubleday, 308 pages, $25.95), ture has been deemed irrelevant ladder at an all-girls school, who have no location: It exists every- toward the open sea. The book’s a more traditionally told story in to the university’s aim of befriends Lex and Tessa, a pair where and nowhere. Polish au- voyages move across time as which the slovenly professor has efficiently preparing its charges of burgeoning social-justice thor Olga Tokarczuk’s “Flights” well. We read of an Ottoman been selected to head the for the job market. Declining warriors. Lex, a Bangladesh-born (Riverhead, 403 pages, $26), prince planning to flee his department, taking the captain’s enrollment leads to relaxed adoptee, is a person of color; the winner of this year’s Man empire. An especially engrossing chair on a sinking ship. English standards in an effort to pander Tessa, who has a prosthetic arm, Booker International Prize, vignette concerns the 17th- has already lost most of its to students paying upwards of identifies as a cyborg. “Inappro- FICTION attempts to find a form for this century anatomist Philip funding and building space to $40,000 a year for their priation” follows Ziggy’s quest to counterintuitive principle. An Verheyen, who dissected his the predatory Economics education. A new generation of discover which newly minted SAM SACKS unclassifiable medley of linked own amputated leg. Even the Department, led by the oleagi- scholars toils for risible wages labels apply to her. fictions and essays, the book body, Ms. Tokarczuk suggests, is in adjunct positions, hungrily As she tries on different occupies no fixed setting or an uncertain, evanescent thing. THIS WEEK'S BOOKS waiting for superannuated identities like fall outfits (for a place in time and its travels All novels require a degree of faculty members to have the while she goes with “gender- obey no established itinerary. submission to the author’s art, Flights courtesy to die and create job neutral autoerotic secular Jewish Given a clear, welcoming trans- but “Flights” demands more By Olga Tokarczuk vacancies. Meanwhile, mole- person”), she’s initiated into the lation by Jennifer Croft, its acceptance than usual. Reading eyed academics are haplessly ever-shifting rules of cultural A novel qualities are “fluidity, mobility, it is like being a passenger on a The Shakespeare thrust into administrative and sensitivity. Learning to steer in pieces illusoriness.” long trip. It’s amusing, exciting Requirement fundraising roles, tasked with clear of “regressive hetero- The narrator is on a self- and tedious by turns. It moves By Julie Schumacher keeping the whole production normativity,” she absorbs the capturing described pilgrimage in search through seemingly pointless on life support. complex vocabulary that the so- the of other pilgrims. Brief chapters longueurs to moments of Inappropriation Ms. Schumacher packs all of cially conscious wield to exclude fluidity recount her serendipitous inter- intense interest and beauty. One By Lexi Freiman this inside a daffy little drama the unenlightened. Confusingly, actions in airports and train must be open to the charms of about Fitger’s standoff with the her friends’ principles seem as of stations; others meditate on the aimless discovery. “The earth is villains in Econ, which concludes fluid as their genders. When she modern pleasures of transience (“Home round,” this original book nous Roland Gladwell, and with a wedding scene and a wonders why they ended their Is My Hotel” reads a chapter reminds us, “let us not be too unless Fitger can bring his un- satisfying comeuppance, as in a Marxist phase, Lex says, “Be- life and title). High-flown, partly tongue- attached, then, to directions.” governable colleagues together Shakespearean comedy. The cause Tessa got a credit card.” the in-cheek lectures on “travel psy- Payne University English to form a concerted front there’s question is whether today’s crop Am I naive to assume this is charms chology” appear from time to professor Jason T. Fitger made a risk of it simply vanishing as a of English majors will spot the one novel that doesn’t need a time, reprising the book’s foun- his introduction in Julie Schu- focus of study. He’s stymied allusion. trigger warning? It goes without of dational philosophy that “con- macher’s campus satire “Dear when a scandal erupts over the Student activism is one saying that “Inappropriation” is aimless stellation, not sequencing, car- Committee Members” (2014). A rumor that university higher- aspect of campus life that Ms. irreverent, but this is a loving, discovery. ries truth.” Forget continuity; brutally funny jeremiad about ups are planning to make the Schumacher largely avoids, sisterly sort of ridicule, spoofing life is just a series of rest stops. the waning prestige of the study of Shakespeare optional perhaps because it is big enough the absurdities of the very The most glittering points in humanities, the novel was for English majors who would to merit a book of its own. Such young and very woke. Naturally, Ms. Tokarczuk’s constellation composed entirely in recom- rather take courses like one “on a one is Lexi Freiman’s debut, Ms. Freiman has anticipated the are the extended fictions on mendation letters, the make- the graphic novel that included “Inappropriation” (Ecco, 351 objections of the eternally themes of impermanence and work documents that consume a manga version of Macbeth.” pages, $26.99), a witty, ener- offended. “Jokes don’t emanci- escape. In one, a man’s wife and Fitger’s departmental hours Like “Dear Committee getic send-up of the current pate people!” shouts an son go missing on a small Croa- before disappearing “into the Members,” the novel’s laughter pieties surrounding racial and aggrieved character. “They di- tian island. In another, a Nordic bureaucratic abyss.” drowns out its howl of despair. sexual identity. It centers on lute the anger of the oppressed!” THE WALL STREET JOURNAL. **** Saturday/Sunday, August 11 - 12, 2018 | C11 BOOKS

‘If anything deﬁnable, I am only a picture-taster, the way others are wine- or tea-tasters.’ —BERNARD BERENSON Arbiters Of the Authentic

The Eye By Philippe Costamagna New Vessel, 243 pages, $24.95

BY WILLARD SPIEGELMAN

UTHENTICITY, IDENTIFICATION and attribution are mysterious things. Everyone recalls the A thrill, or fear, of high-school chemistry experiments with the dreaded “unknown” to be analyzed. People of a certain age may also remember “What in the World?,” an educational television show of the 1950s. It originated from the University of Pennsylvania and remained on air for more than a decade. Dr. Froelich Rainey presided weekly over a panel of experts summoned to

recognize and label an archaeological relic—a DAVID SEYMOUR/MAGNUM PHOTOS fossil, a ceramic shard, a bronze weapon— LOOKER Bernard Berenson in 1955 at the Villa Borghese in Rome, examining a sculpture (1805-8) of Pauline Borghese by Antonio Canova. which appeared on a dark platform and in a cloud of smoke, to music from Respighi’s learned to see. As if from blindness, I acquired Joseph Duveen, he had the almost mystical regarding the traditions and styles of “Fountains of Rome.” great vision. My gaze, however, focuses only on ability to recognize an artist’s hand. Berenson connoisseurship, but his prose, translated from Feats of scholarly showmanship, and of what is essential. What is most beautiful about gave Duveen attributions so that the dealer the French by the Irish-born polyglot Frank intellectual legerdemain, have been part of my profession is that I see the light behind the could sell paintings, often at inflated Wynne, is studded with unnecessary adjectives the art-and-antiques scene for more than a darkness. I am an Eye so that others can see.” appraisals. Mrs. Gardner received both bad and clichés: “I lost myself,” “I was spellbound,” century, especially when there’s been a lot of Mr. Costamagna, whose primary field is and good advice, but her house still stands, a “I went into raptures,” “this magical money at stake. Private collectors, or museum 16th-century Italian painting, especially the glorious repository of her collecting instincts. atmosphere,” “an extraordinary opportunity” professionals who buy art, want to make sure work of Pontormo and Bronzino, is director of The author says (without giving much all appear in the first pages of chapter two. they are getting a good deal. Is this a genuine the Palais Fesch, a museum of fine arts in evidence) that the American tradition of The breathlessness suggests self-satisfaction Rembrandt? Is this by Botticelli himself, or Ajaccio, Corsica. He tells many stories in his connoisseurship has vanished, but he also and does little to draw a reader in to the from his workshop? Who decides? “insider’s memoir,” the says, elsewhere (again, adventures at hand. Starting in the 19th century, the “Eye” most exacting and exciting without evidence), that The book has one non-stylistic drawback. decided. That eye, the subject of Philippe of which concern the his- Great connoisseurs some younger people are With the single exception of Bronzino’s Costamagna’s often exhilarating and tory of his profession and resuming the mantle that “Christ on the Cross” (which Mr. Costamagna informative, sometimes self-indulgent new the activities of its great- had an almost mystical was dropped with the helped to identify), it lacks illustrations. The book, could tell at a glance the real McCoy est practitioners. Two ability to identify death of Berenson nearly extensive treatment of paintings, prints and from a fake. Or so the collectors hoped. Art 19th-century Italians, Gio- individual artists by 60 years ago. the ways of ascertaining authenticity would and money intersected. And all such vanni Morelli and Giovanni Longhi helped revive profit from more images. commercial transactions were interlaced with Battista Cavalcaselle, were their stylistic tics. the reputations of Mr. Costamagna’s rambling discussions snobbism. The gift of an eye—previously a the first to try to identify Caravaggio and Piero della make the irrefutable point that questions of staple of art-history programs, now pretty the je ne sais quoi of an Francesca. He also gave attribution—regardless of whether the Eye is much out of fashion, and supplemented or artist’s style, how he handled facial features, helpful attributions to the Italian dealer Ales- still considered a major resource for scholars, superseded by microphotography and infrared or hands, or what his brushstrokes were like. sandro Contini-Bonacossi, who was the main historians, educators and buyers—continue to reflectography—was called connoisseurship. In his fourth chapter, Mr. Costamagna homes supplier of pictures to Samuel H. Kress, many engage everyone’s attention. Toward the end But it lives on, at auction houses and more in on what he calls “Our Holy Trinity,” one of which ended up in Washington’s National of his book he refers briefly to a sculpture of mundanely through “Antiques Roadshow,” American and two Italians: Bernard Berenson Gallery in 1941. (There were also some ques- a young archer (he calls it a cherub) brought wherever someone is hoping to find a bargain (1865-1959), Roberto Longhi (1890-1970) and tionable financial transactions during World from Florence to New York in 1902 by or to ascertain whether the picture Aunt Federico Zeri (1921-98). The general reader War II, of which Mr. Costamagna says nothing architect Stanford White for a house he was Mary had stashed under her bed for decades will come away with an appreciation for the but that Longhi was later “publicly taken to designing for Payne Whitney. In 1996, may be worth a great deal of money. zeal, the talent, even the genius (as well as, task for his proximity to several dignitaries of Kathleen Weil-Garris Brandt, an American art True connoisseurs, eyes with a capital “E,” sometimes, the chicanery) that these men the Mussolini regime.”) The most marginal of historian, claimed that this formerly try, or at least pretend, not to dirty their hands brought to their dealings with scholars and the three figures was Zeri, a self-styled icono- anonymous figure in a Fifth Avenue mansion with filthy lucre. According to Mr. Costamagna, potential buyers. clast who rejected the academy for print and was an original Michelangelo. Two decades we must not confuse them with mere Berenson—a Lithuanian-born Jew who broadcast journalism and was a longtime later, although people have weighed in on “appraisers.” They will say they think that a immigrated to Boston, went to Harvard, consultant to J. Paul Getty. both sides of the debate, no Eye has made a work is by So-and-So, and then allow returned to Europe, converted to Catholicism, Mr. Costamagna is catholic in his final pronouncement. auctioneers or salesmen to translate their and founded I Tatti (the Harvard Center for enthusiasm and is open to the new. He tells But at the Metropolitan Museum’s Olympian judgments into terms appropriate to Italian Renaissance Studies, in Florence)—was delicious stories. Also, to his credit, he admits Michelangelo show last winter, there it was, the marketplace. Mr. Costamagna ends his book the force behind Isabella Stewart Gardner’s his mistakes. (Twice he rejected authentic attributed to the master himself. The ayes had with a rousing defense of his profession. If Fenway palazzo, Baltimore’s Walters Art Pontormos, having seen them only in spoken. more than a little self-serving, it gives readers Museum and the John G. Johnson collection reproduction.) On the other hand, he is less an idea of what he, and increasingly fewer at the Philadelphia Museum of Art. He was a impressive as a writer than as an Eye. His book Mr. Spiegelman’s book “If You See Something, other experts, do for all of us: “Though I myself dandy of sensibility rather than a bookish wanders. It repeats itself. He is most Say Something,” a collection of art pieces was born with an eye, I became an Eye. I intellectual. Recruited by the British dealer interesting when reporting from the field from the Journal, was published last year. The Rotten Glamour of an Outlaw Couple

‘SOME DAY THEY’LL go down America. She also follows transport her disabled sister his dog did everything NOT Have a Horse” (Dial, 40 together; / They’ll bury them faltering police efforts to catch Holly to a place of her own together,” we read as we see, in pages, $17.99) doesn’t yank the side by side; / To few it’ll be them in an era when, as she invention, the magical realm of Mr. Lies’s sharp-focused pictures heartstrings with quite such a grief— / To the law a relief— / writes, “crime investigation was Smockeroon, where the goings- (see left), a bespectacled fox in wrench, but it’s affecting all the But it’s death for Bonnie and still in its infancy.” on are “narrated” by Holly’s overalls enjoying life with his same. Readers who have loved Clyde.” Thus read the last Even at the time, the showi- stuffed bear, Bluey. But, as Kate pet: playing ball, eating ice Eleanor Estes’s 1944 book, “The stanza of a poem eulogizing the ness of the criminals overshad- Saunders writes, “when Holly cream and, best of all, working Hundred Dresses,” will suspect outlaws Bonnie Parker and owed the men they killed, who died, Bluey suddenly fell silent in the garden. “But one day, the the painful truth behind the Clyde Barrow, written by the included grocers, deliverymen and all the lights went out in unthinkable happened.” horse-owning boasts of a day- gun moll herself. The poem and small-town sheriff’s Smockeroon.” dreamer named Adrian Simcox. CHILDREN’S THIS WEEK'S BOOKS BOOKS appeared in a Dallas newspaper deputies. “It’s like we don’t Three months later, still And they will understand the on May 23, 1934, the day the even count,” the widow of one bereft, Emily begins writing misplaced indignation of the MEGHAN couple died in a police ambush victim complained. “Glorifying down bits of Bluey’s old sto- Bonnie and Clyde narrator, Chloe, who insists that COX GURDON in Louisiana. For the previous these killers insults all of us.” ries. Soon she’s dreaming about By Karen Blumenthal Adrian must be lying. “He lives two years, the lovers and their So it’s good that Ms. the bear and her sister as if in town like me, and I know you confederates in the Barrow Blumenthal makes a point of their adventures are continu- The Land of Neverendings can’t have a horse in town,” she Gang had lived on the run, honoring each victim with a ing, and then one night, to her By Kate Saunders tells anyone who will listen. robbing banks, stealing cars brief obituary. Her amazement, talking toys When her mother asks how and killing. For all their account would have from Smockeroon appear The Rough Patch Chloe can be so sure, the girl depredations, the young, benefited from a bit in Holly’s empty By Brian Lies explodes: “Because I know! A true- attractive, snappily dressed pair more color—we learn bedroom. What Adrian Simcox does NOT have a life captured the public imagination more about the gang’s has happened Adrian Simcox Does horse! Adrian Simcox gets the almost as soon as they started movements than about to the barrier NOT Have a Horse free lunch at school. His shoes account shooting. the dusty, two-bit towns between reality By Marcy Campbell have holes. Kelsey told me her for teens Attitudes toward the bandits they moved and imagination? Illustrated by Corinna Luyken cousin has a horse, and it’s of the have fluctuated over the years, through—but And does it mean super expensive. He can’t take but as Karen Blumenthal notes what readers that Emily could see care of a horse.” story of in “Bonnie and Clyde: The missinevoca- her sister and Children ages 4-8 may be Exasperated by the patience Bonnie Making of a Legend” (Viking, tive detail OW Bluey again? able to handle the shadowed of teachers and other kids, 250 pages, $19.99), the public they can Suffused with long- illustration of Evan kneeling Chloe humiliates Adrian in front GREENWILL and has never ceased “to be fasci- makeupby ing and dappled with beside his dead friend, but any of everyone. In Corinna Clyde, as nated by an otherwise ordinary studying the archival photos humor, this novel from the au- dog-loving adult reading this Luyken’s otherwise lush illustra- well as couple gone rotten.” In this strewn throughout this fasci- thor of “Five Children on the book aloud had better be ready tions, that scene is bare and fast-paced nonfiction account nating tale of ill-gotten celeb- Western Front” (2016) explores for the waterworks. As Evan’s stark. Empathetic readers ages of their for readers ages 12-16, the rity. the limits of grief and the last- sorrow turns to rage and then 5-9 will be rooting for Chloe’s victims. author explores Clyde’s Children’s books are full of ing power of storytelling. destruction, the reader watches mother, who, when she gets youthful criminality and imaginary worlds, from Grief is the watchword— with distress and then with wind of developments, marches radicalization in a Texas prison Wonderland to Narnia to the though it’s never stated—in rising hope as the garden, with her daughter into the poorer and Bonnie’s early years as a Hundred-Acre Wood. In “The “The Rough Patch” (Green- time, offers the grief-stricken side of town and shows how a theatrical, hot-tempered child Land of Neverendings” (Dela- willow, 40 pages, $17.99),a fox a way back to happiness. decent person behaves with (and teen bride), and maps the corte, 243 pages, $16.99),12- weepy and wonderful picture Marcy Campbell’s picture someone who has less of almost gang’s murderous spree across year-old Emily uses stories to book by Brian Lies. “Evan and book “Adrian Simcox Does everything—except imagination. C12 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. BOOKS

‘Be the flame, not the moth.’ —GIACOMO CASANOVA Motor City Mayhem

The Hard Stuff By Wayne Kramer Da Capo, 311 pages, $28

BY TONY FLETCHER

OCK ’N’ ROLLERS of the 1950s and ’60s portrayed themselves R as outlaws; it went with the territory of a music that was then still new and outwardly rebellious. Few practiced the outlaw lifestyle like the MC5, a late-’60s Detroit band that, as their lead guitarist Wayne Kramer recounts in his memoir “The Hard Stuff,” wholeheartedly embraced an ethos of “Dope, Rock ’n’ Roll and F—ing in the Streets.” The MC5 occupied the youth culture barri- cades that demarcated the era: They were managed by John Sinclair, hippie spokesman and founder of the White Panther Party (with which the MC5 aligned), and they were the only group to play Chicago’s Lincoln Park during the Democratic National Convention in 1968, finishing their set (playing on gear powered by a hot-dog stand) shortly before the police broke up the crowd with extreme prejudice. BOLD GLORY Wayne Along the way, the MC5 became Kramer (center) and the the house band at Detroit’s Grande MC5 in Mount Clemens, Ballroom, where they took on all Mich., 1969. comers and established themselves

as the region’s most potent live band. LENI SINCLAIR/MICHAEL OCHS ARCHIVE/GETTY IMAGES It was at the Grande, in October 1968, that they recorded their classic debut album, saw him serve 2½ years in a federal prison in own dangerous dances with addictive sub- tentiary included musical mentorship from “Kick Out the Jams,” best known for the title Kentucky, but a reader of “The Hard Stuff” stances. To get a visual sense of the group’s jazz musician and fellow inmate Red Rodney, track, a musical blitzkrieg that adds a vocative suspects that, without forced incarceration, unprecedented live shows, in which Mr. Kramer and he sees nothing wrong with such opportu- curse word to its shouted introduction. With Mr. Kramer would not have lived much longer, and Smith combined the physical precision and nities, reminding readers “we are sent to the group making the cover of Rolling Stone in let alone long enough to tell his tale. strength of martial-arts experts with the finest prison as punishment, not for punishment.” advance of the album’s release, things looked It should need no spoiler alert to state that of dance-floor footwork, one should see the Mr. Kramer’s sobriety eventually came with promising. But when the Detroit department Mr. Kramer eventually beat his addictions; impressive 2002 documentary “The MC5: A a third marriage, to his manager Margaret store Hudson’s—second in size only to New memoirs are rarely written with a needle True Testimonial.” Mr. Kramer, who like other Saadi, along with generous emotional support York’s Macy’s—refused to stock “Kick Out the between one’s toes. But that doesn’t make surviving members participated in the film’s from recovered addicts in his new home of Los Jams” due to an obscenity in John Sinclair’s “The Hard Stuff” a feel-good story, the literary production, sued the directors over credits, Angeles. This enabled him to have an active gatefold sleeve manifesto, the MC5 took out a equivalent of MTV’s “Behind the Music.” The however, and the project never saw full release. late-life musical career as composer, per- full-page ad in a local underground paper that middle of the book’s three Mr. Kramer comes former, solo artist and sideman—including, in not only blared “F— Hudson’s” but included sections offers a painfully across in that documentary 2018, touring as the MC50. In 2009, Mr. the logo of the band’s record label, Elektra. repetitive cycle of squan- The influential Detroit as funny and sincere, but Kramer founded the American arm of Jail Threatened by Hudson’s with a boycott of all dered career opportunities, his humor is sadly lacking Guitar Doors, a U.K. charity established by the its artists, the otherwise progressive Elektra depression, self-medication band the MC5 mixed from the written page. He singer-songwriter-activist Billy Bragg that promptly dropped the band. (It held on to its and self-loathing, then fuzzed-out blues with matter-of-factly recounts provides guitars to prisoners for occupational other Michigan guitar rockers, Iggy Pop and brief glimpses of sobriety wild ’60s political the absence of his birth therapy and potential rehabilitation. Jail Guitar the Stooges, signed upon the MC5’s recom- and betterment followed father, the loss of his Doors was named after a 1978 song by the mendation.) quickly by artistic or per- provocation. virginity at age 10 to a baby Clash, the first verse of which details Wayne The MC5 managed two further studio sonal disappointment and sitter he set up for such a Kramer’s drug bust. albums with Atlantic Records, of which “Back renewed addiction. Mr. purpose, and subsequent There is, possibly, a cosmic serendipity to in the USA” (1970)—clinically produced by Kramer never stops making music—he is in- physical abuse by a racist stepfather. Fortu- the manner in which such spokes of influence then rock critic and future Bruce Springsteen strumental in the early success of the Detroit- nately, the book comes alive when bringing the have spun back around in Mr. Kramer’s wheel manager Jon Landau—became a blueprint for via-NYC experimentalists Was (Not Was)—but reader into the heart of the late-’60s scene, of life, and it is not lost on the author, who the back-to-basics punk sound of the mid-’70s. his career decisions are mostly dubious, as where revolution seemed not just possible but offers the occasional optimistic Buddhist After the group broke up—thanks to more bad when he moves to Manhattan’s heroin-flooded plausible. Noting that “the Summer of Love axiom while never preaching or blaming any- career decisions, accentuated and accelerated Lower East Side and forms a group with didn’t make a stop in Detroit,” he recounts the one but himself for his problems. “The Hard by rampant drug abuse—Wayne Kramer set Johnny Thunders, the New York Dolls’ end- black population’s “rebellion” of 1967 with a Stuff” is rarely poetic, but in its brutal honesty about further self-destruction. Not content to lessly talented yet addicted guitarist. (Thun- detail born of intimacy: His home was raided Mr. Kramer may succeed in deterring future cultivate addictions to alcohol, heroin, cocaine ders died of an apparent overdose in 1991.) by riot police who mistook a telescope for a musicians from contemplating serious drug and prescription pills, he consciously became Thankfully, the early days of the MC5 sniper’s rifle, after which he was taken into the abuse by numbing them with a litany of legal part of the criminal underworld that pur- provide more joyous material. It was a band of street in handcuffs “to see an army tank point- misdeeds and career missteps—implying, if chased, distributed, sold and often stole those five larger-than-life personalities, with Mr. ing its cannon at our house.” not stating outright, that life is much more drugs in the first place; he also added the role Kramer joined by singer Rob Tyner (“the first Throughout “The Hard Stuff” (also the enjoyable, even as a rock ’n’ roll outlaw, when of burglar to his messy résumé. Mr. Kramer’s white boy with an Afro”), a second guitar- name of Mr. Kramer’s 1995 comeback solo one is in control of it. fellow dealers routinely ripped off others with playing powerhouse, Fred “Sonic” Smith (later album), Mr. Kramer challenges what he sees as sometimes deadly consequences. The author to marry the New York artist Patti Smith), and systemic societal racism and, as a correlation, Mr. Fletcher is the author of “Moon: The Life may lament that in 1975 he was caught dealing a rhythm section of Dennis Thompson and the criminal justice system’s inherently flawed and Death of a Rock Legend” and several 11 ounces of cocaine in a sting operation that Michael Davis, both of whom experienced their approach to drug use. His own time in a peni- other music biographies.

Best-Selling Books | Week Ended Aug. 5 With data from NPD BookScan

Hardcover Nonfiction Hardcover Fiction Methodology

TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST TITLE THIS LAST AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK NPD BookScan gathers point-of-sale book data from more than 16,000 locations across the U.S., The Russia Hoax 1 1 The Gutfeld Monologues 6 New The President Is Missing 1 1 The Other Woman 6 3 representing about 85% of the nation’s book sales. Gregg Jarrett/Broadside Books Greg Gutfeld/Threshold Editions J. Patterson & B. Clinton/Little, Brown & Company & Knopf Daniel Silva/Harper Print-book data providers include all major Girl, Wash Your Face 2 The Donald Trump...Twitter Library 7 Paradox 2 Happy Dreamer 7 booksellers (now inclusive of Walmart) and web 3 New New 9 retailers, and food stores. E-book data providers Rachel Hollis/Thomas Nelson The Daily Show With Trevor Noah/Spiegel & Grau Catherine Coulter/Gallery Books Peter H. Reynolds/Orchard Books include all major e-book retailers. Free e-books and Liars, Leakers, and Liberals 3 Death of a Nation 8 The Hate U Give 3 Wonder 8 those sold for less than 99 cents are excluded. The 2 New 5 – fiction and nonfiction lists in all formats Jeanine Pirro/Center Street Dinesh D’Souza/All Points Books Angie Thomas/Balzer & Bray/Harperteen R. J. Palacio/Alfred A. Knopf Books for Young Readers include adult, young adult, and juvenile Magnolia Table 4 12 Rules for Life 9 The Outsider 4 Spymaster: A Thriller 9 titles; the business list includes only 4 7 4 8 adult titles. The combined lists track Joanna Gaines & Marah Stets/William Morrow & Company Jordan B. Peterson/Random House Canada Stephen King/Scribner Book Company Brad Thor/Atria Books sales by title across all print and e-book formats; audio books are excluded. Refer questions The Subtle Art of Not Giving a F*ck 5 5 Educated 10 9 Cottage by the Sea 5 6 The Good Fight 10 7 to [email protected]. Mark Manson/Harper Tara Westover/Random House Debbie Macomber/Ballantine Books Danielle Steel/Delacorte Press

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Educated 1 2 The Russia Hoax 1 1 Origin 1 – Origin 1 2 StrengthsFinder 2.0 1 1 Tara Westover/Random House Publishing Group Gregg Jarrett/Broadside Books Dan Brown/Knopf Doubleday Publishing Group Dan Brown/Anchor Books Tom Rath/Gallup Press Girl, Wash Your Face 2 3 Girl, Wash Your Face 2 3 Paradox 2 New Paradox 2 New Total Money Makeover 2 3 Rachel Hollis/Thomas Nelson, Inc. Rachel Hollis/Thomas Nelson Catherine Coulter/Gallery Books Catherine Coulter/Gallery Books Dave Ramsey/Thomas Nelson The Guns of August 3 – Liars, Leakers, and Liberals 3 2 Wild Like the Wind 3 New Sharp Objects 3 4 Extreme Ownership 3 7 Barbara W. Tuchman/Random House Publishing Group Jeanine Pirro/Center Street Kristen Ashley/Kristen Ashley Gillian Flynn/Broadway Books Jocko Willink and Leif Babin/St. Martin’s Press The Princess Diarist 4 – Educated 4 6 Dr. Strange Beard 4 New The President Is Missing 4 3 Bad Blood 4 4 Carrie Fisher/Penguin Publishing Group Tara Westover/Random House Penny Reid/Penny Reid J. Patterson & B. Clinton/Little, Brown & Company & Knopf John Carreyrou/Knopf Publishing Group The Last Madam 5 – The Subtle Art of Not Giving a F*ck 5 4 The Other Woman 5 1 The Other Woman 5 1 The Five Dysfunctions of a Team 5 6 Chris Wiltz/Open Road Media Mark Manson/HarperOne Daniel Silva/HarperCollins Publishers Daniel Silva/Harper Patrick Lencioni/Jossey-Bass The Russia Hoax 6 1 The Gutfeld Monologues 6 New Pachinko 6 – Wild Like the Wind 6 New Emotional Intelligence 2.0 6 2 Gregg Jarrett/HarperCollins Publishers Greg Gutfeld/Threshold Editions Min Jin Lee/Grand Central Publishing Kristen Ashley/Createspace Travis Bradberry & Jean Greaves/TalentSmart The World’s Last Night 7 – Magnolia Table 7 5 Born to Be Wilde 7 New The Rooster Bar 7 5 The Power of a Positive Team 7 New C. S. Lewis/HarperCollins Publishers Joanna Gaines & Marah Stets/William Morrow & Company Eloisa James/HarperCollins Publishers John Grisham/Dell Jon Gordon/Wiley The Rock, the Road, and the Rabbi 8 – You Are A Badass 8 7 Crazy Rich Asians 8 9 Pachinko 8 – Principles: Life and Work 8 8 Kathie Lee Gifford & Rabbi Jason Sobel/Thomas Nelson, Inc. Jen Sincero/Running Press Adult Kevin Kwan/Knopf Doubleday Publishing Group Min Jin Lee/Grand Central Publishing Ray Dalio/Simon & Schuster The Simple Faith of Mister Rogers 9 – The Donald Trump...Twitter Library 9 New Reel of Fortune 9 New Crazy Rich Asians 9 9 Radical Candor 9 10 Amy Hollingsworth/Thomas Nelson, Inc. The Daily Show With Trevor Noah/Spiegel & Grau Jana DeLeon/Jana DeLeon Kevin Kwan/Anchor Books Kim Scott/St. Martin’s Press The Art of Thinking Clearly 10 – 12 Rules for Life 10 8 Half Empty 10 New Born to Be Wilde 10 New Good to Great 10 — Rolf Dobelli/HarperCollins Publishers Jordan B. Peterson/Random House Canada Catherine Bybee/Montlake Romance Eloisa James/Avon Books Jim Collins/HarperBusiness C14 | Saturday/Sunday, August 11 - 12, 2018 **** THE WALL STREET JOURNAL. REVIEW

ICONS

exhibition reveal, suprema- Power tism is devoid of distrac- tion, with less color than, say, Chagall’s work. Crosses in red, black and white make ample use of negative Struggle space, with bold lines and flat structures using oil on panel and canvas, and eso- teric titles such as “Supre- matism of the Spirit” (1919) Of the and “Mystic Suprematism (Red Cross on Black Cir- cle)” (1920-22). His stark black and white, two-di- Geniuses mensional forms are deliberately nonfunctional. Ag- gressive geometric abstractions drive home the purist message, bol- A duel between Chagall and Malevich stered by Malevich’s exten- in Russia’s revolutionary era comes to sive writings. From his introduction to the school, life in a New York exhibition dramatically descending the main stairwell, students flocked to him. Lissitzky urged students to print out BY ALEXANDRA BREGMAN Malevich’s writings. Chagall was still cele- o Marc Chagall, the Russian Revolution brating the school’s eclec- was as much an artistic movement as a tism. But the harmony was political one. The Bolsheviks who took not to last. The unbending over in November 1917 appointed the Malevich announced, “The young artist to run the People’s Art influence of economic, po- TSchool in August 1918. For the next two litical, religious, and utili- years, Chagall—famed for his paintings of tarian phenomena on art is flying, joyous animals and people—participated in a highly the disease of art.” unusual experiment in art education that turned into a bit- “In a few months, supre- ter battle between two now world-famous artists. matism had overtaken the Starting Sept. 14, New York’s Jewish Museum is celebrat- school, and totally trans- ing the centenary of the unusual school’s founding with a formed it,” said the Jewish show of about 160 works and documents. The school’s Museum’s Morris and Eva teachers—abstract pioneer Kazimir Malevich, his disciple El Feld Curator, Claudia Nah- Lissitzky and Chagall—shared strong messages about art son, who collaborated on with their students, all while continuing to create work. this project. “Chagall’s “Chagall, Lissitzky, Malevich: The Russian Avant-Garde in more personal and lyrical Vitebsk, 1918-1922” includes other artists, including David style fell out of favor as Yakerson and Lazar Khidekel, students at the school. Malevich emphasized ab- Chagall opened the People’s Art School in his quiet straction and collective art. hometown of Vitebsk in modern-day Belarus, about 300 With attendance to his miles west of Moscow. The Russian Civil War was heating classes gradually dwin- up, and political turmoil would continue in the country dling, Chagall left Vitebsk throughout the brief life of the school. But for Jews like in the spring of 1920 and Chagall, a 30-year-old laborer’s son who had just returned moved to Moscow, where from study in Paris, things were improving enormously. he was invited to work for While some anti-Jewish riots still continued in Russia, Jews the State Jewish Chamber were able to leave their earlier confines with new protec- Theater.” Embittered and tions against discrimination. The tuition-free school Chagall weakened, Chagall was in- ran could give Jews and workers in general an opportunity creasingly critical of Ma- to become artists. levich’s stark imagery. Chagall wrote enthusiastically in his autobiography, Lissitzky left for Berlin. “Throughout the town, my multicolored animals swung back and forth, Marc school of thought, Proun (an acronym that translates Malevich ran the school on his own, overseeing the swollen with revolution,” notes Angela Lampe, who curated this show Chagall’s out as projects for asserting/affirmation of the new), graduation of 10 students in 1922. That was the only and its earlier iteration at the Centre Georges Pompidou in Paris. In ‘Cubist blurring the line between structural design and graduating class of the People’s Art School, which Chagall’s joyful “Onward, Onward” from 1918, a painting on grid-lined Landscape, paintings. A work by Lissitzky titled “Proun” uses was also facing increasing suspicion from the Bol- paper for the first anniversary of the October Revolution, a leaping man 1919,’ painted shapes and figures from cubism influences, relying sheviks that the art being produced was not ideolog- during his jumps over homes, A sign reads, “Forward, forward, without a halt.” heavily on abstraction. ical enough. tenure at the The artist’s love of his hometown is best expressed in “Over Vitebsk,” People’s Art In 1919 the third artist—who some might call the Eventually, Malevich abandoned painting alto- from the permanent Museum of Modern Art collection in New York, fea- School. fly in the ointment—arrived. The down-on-his-luck, gether, focusing on theoretical lectures and books, turing what Ms. Lampe refers to as one of his trademark “flying Jews.” 40-ish Kazimir Malevich was the eldest of the trio studying architecture and designing porcelain table- Both of these pictures are in the new exhibition. and an artistic maverick whose “Black Square” (1915) ware. His work had fallen out of favor before his Chagall soon recruited his first major academic counterpart at the is one of the most famous pieces of early abstract death in 1935. Lissitzky returned to Russia, dying of school, El (Lazar) Lissitzsky, who had begun his career as an illustrator art. He, too, had a school of artistic thought: supre- tuberculosis in 1941. As for Chagall, who barely es- of Jewish children’s books. Not yet 30, Lissitzsky fervently believed in matism. caped extermination by the Nazis, he lived to be li-

CENTRE POMPIDOU,communism NATIONAL MUSEUM OF MODERN ART, PARIS/ARS, NY and art as agents for change. He championed his own As the Malevich paintings in the Jewish Museum onized world-wide and died at age 97.

MASTERPIECE | THE AMERICAN LANGUAGE cient evidence in the (1919-48), BY H.L. MENCKEN chapters preceding that the American of today is much more We All Speak honestly English, in any sense that Shake- speare would have un- American derstood, than the so- called English of England.” Whenever the two competing BY JOSEPH EPSTEIN pher and field worker versions of English generally among the come into conflict—as THE ROYALTIES for the first edition (of four) of native speakers in his in Canada or in the H.L. Mencken’s The American Language were own country. Along Far East—American greater than those for any of his other books, the way, Mencken, be- English wins out, and causing Mencken to remark: “The moral is plain: ing Mencken, attacked it does so, Mencken fraud pays.” He meant that he had written a phil- British linguistic ped- held, because it is ological work without any of the training, and antry, stodginess and “better on all counts— hence the authority, of the professional linguist. snobbish superiority, clearer, more rational, But, then, neither did Samuel Johnson have any while never neglect- and, above all, more special training for his Dictionary or Noah Web- ing American preten- charming.” ster for his. Mencken, whether or not he knew it tiousness, comic aspi- In a footnote early at the time, joined the ranks of great amateurs ration, and hospitality in The American Lan- in creating The American Language and its two to foreign words—Spanish, German, Yiddish, that an Irish apricot was a potato, though you guage Mencken mentions the lack of academic Supplements, a work of nearly 2,500 pages. Chinese prominent among them. may well have known that the condom, when interest in the American language and in Mencken worked on the book off and on for The continual refreshment of Menckenian invented in 1776 or thereabouts, was called by American literature when he set out to write more than 30 years, beginning during World touches throughout the three volumes of The the English “a French letter,” which Mencken his book. Despite the careers of Nathaniel War I and finishing the second Supplement in American Language helps make it the lively with a straight face refers to as “a certain con- Hawthorne, Walt Whitman, Herman Melville, 1948. He was variously down on the book work it is. As Jacques Barzun wrote, in a re- traband device for the limitation of offspring.” Henry James and Mark Twain having been (comparing it at one point to “a heavy, indi- view in the Atlantic of the first Supplement In the Guardian, the English biographer Rob- long completed, American literature was only gestible piece of cottage cheese”) and high on volume, what made the book “so accessible ert McCrum, in a 2017 series devoted to the rarely taught in our universities as late as the it (calling it “that work I’m keenly interested and hence so influential was its enormous lit- world’s hundred best nonfiction works, wrote 1920s. This would of course later change, and in—tremendously interested in”). Its origin erary skill and vigilant cultural criticism.” It is that The American Language “remains a master- Mencken’s book, which became a best-seller, was in Mencken’s discovery of the many dis- also tremendously amusing. piece of advocacy and entertainment.” What it had a great deal to do with it. “American writ- crepancies between the English written and Who but H.L. Mencken would refer to reli- advocated was the superiority and ultimate dom- ers were finally able to take flight from the old spoken by Englishmen and that written and gious fundamentalists as “wowsers,” or to the inance of American English over that written and tree [of English literature] and to trust for the above all spoken by Americans. “I looked for work of practitioners of “non-Euclidean” medi- spoken by the English. Logan Pearsall Smith, the first time their own dialect,” wrote Edmund some work,” he wrote, “that would describe cine—chiropractors, chiropodists and the like— American-born, naturalized Englishman, brother- Wilson in the New Republic. “Mencken showed and account for them with a show of complete- as “leech-craft”? Who but he would refer to the in-law to Bertrand Russell, wrote in “Words and the positive value of our own vulgar heritage.” ness, and perhaps depict the process of their degrees offered by “Columbia University and its Idioms” (1925) that “it is chiefly in America—let An immensely amusing and an historically im- origin.” Having discovered that no such work various outhouses”? He provides etymologies us frankly recognize the fact—that the evolution portant book, The American Language, a work existed, he wrote it himself. for the words “cocktail,” “highball,” “son-of-a- of our language will now proceed. Our business whose scope and dazzling execution qualify it The task was prodigious, daunting and ulti- gun,” “goosing,” and many more. He makes dis- here is to follow sympathetically what happens as a unique American masterpiece. mately endless. Mencken set out to describe and tinctions among idiot, imbecile and moron, as there, admitting once for all that our title to de- account for the differences, obvious and subtle, well as among hobo, tramp and bum. He decide what English is is purely honorary.” The Mr. Epstein is author of “The Ideal of Cul- between English and American vocabulary, pro- votes several pages to achtronyms, or derisive popularity of American movies had a lot to do ture and Other Essays” (Axios Press, 2018) nunciation, syntax, intonation, idiom, grammar, names for various peoples: the French, Ger- with this, as Mencken notes, so, too, American and the forthcoming “Charm: The Elusive slang, euphemism and much more. The job en- mans, Japanese, Hungarians, Jews and others. comic strips. Toward the end of The American Enchantment” (Lyons Press), to be published

tailed his becoming an etymologist, lexicogra- If you are like me, you probably didn’t know Language, he writes: “I think I have offered suffi- in October. RYAN INZANA