A DOCTOR's HARD DECISION Myanmar Military Weighs in As

MONDAY, SEPTEMBER 18, 2017 ~ VOL. XLII NO. 12 WSJ.com ASIA EDITION

As of 4 p.m. ET DJIA 22268.34 À 0.29% NIKKEI 19909.50 À 0.52% STOXX 600 380.71 g 0.28% BRENT 55.62À 0.27% GOLD 1320.40 g 0.32% EURO 1.1958 À 0.32% DLR ¥110.87 À 0.58% What’s Ultra-Orthodox Jews Protest Military-Service Ruling in Israel The U.S. News Seeks

Business&Finance Ways to

Beijing-backed fund’s Stay in Aattempt to buy a U.S. chip firm was blocked by Trump, highlighting a na- Paris Pact tional-security debate in Washington over foreign BY EMRE PEKER investment, especially from rival China. A1 NEW YORK—The Trump administration is considering China’s Fosun revived a staying in the Paris agree- $1.1 billion deal for India’s ment to fight climate change Gland Pharma that the In- “under the right conditions,” dian government had re- offering to re-engage in the jected last month. B1 international deal three China’s first online-only months after President Don- insurer, co-founded by ald Trump said the U.S. Jack Ma, plans an IPO that would pull out if it didn’t find could value the company more favorable terms. at around $10 billion. B1 During a climate-change meeting Saturday of more U.S. fuel prices are than 30 ministers led by Can- poised to remain elevated ada, China and the European in the aftermath of hurri- Union, in Montreal, U.S. offi- canes Harvey and Irma, cials broached revising U.S. boosting some refiners. B1 climate-change goals, two A trade spat between participants said, signaling a Boeing and Bombardier has compromise that would keep

drawn U.K. leader May and ABIR SULTAN/EPA/SHUTTERSTOCK the U.S. at the table even if it Canada’s Trudeau, who are IN THE STREETS: Israeli police said they arrested eight people as hundreds demonstrated in Jerusalem on Sunday following a meant weakening the interna- expected to discuss the is- Supreme Court decision that struck down a law exempting ultra-Orthodox men engaged in religious study from serving in the military. tional effort. Still, the move sue Monday in Ottawa. B2 would maintain international unity behind the painstak- Finland Rovio’s IPO pric- ingly negotiated Paris accord, ing values the ‘Angry Birds’ after Mr. Trump suggested he maker at $1 billion, well shy might seek a new agreement. of shareholders forecasts. B5 A DOCTOR’S HARD DECISION On Sunday, U.S. Secretary of A California firm evaded State Rex Tillerson said on CBS $1.5 billion in tariffs by ille- that Mr. Trump is “open to gally importing Chinese alu- finding those conditions where minum, the U.S. alleged. B5 Scattered across the Mediterranean Sea, migrants desperately trying to reach Europe face death we can remain engaged with others on what we all agree is Drone companies push every day. Crews on rescue ships must make agonizing judgments about whom to save. still a challenging issue.” for more U.S. regulation as Mr. Tillerson said the emis- they seek approval for new BY DREW HINSHAW ing,” the radio voice said. would almost certainly die. sions targets under the ac- commercial applications. B1 Dr. Vallentine and the crew of the As a professor of medical ethics cord were “really out of bal- Google parent Alphabet ABOARD THE GOLFO AZZURRO—An Golfo Azzurro had a decision to make. back home in Australia, Dr. Vallentine ance” for the U.S. and China, has held talks to invest urgent plea woke the ship’s doctor, They could help the stricken man, delighted in challenging students with and confirmed the White about $1 billion in Lyft. B3 John Vallentine, at 6:30 a.m. He was which would delay their mission to the kinds of complex moral questions House’s National Economic needed on the bridge. find the dinghy. Crew members knew that can make the practice of medicine Council, led by its director, Tech firms are facing The rescue ship was steaming south from experience what happens when uncomfortable. Those often centered Gary Cohn, was formulating more political pressures. B3 in the Mediterranean Sea in a race to inflatable crafts fail. Seawater and fuel on issues of privacy and social respon- the administration’s policy on reach a deflating rubber dinghy packed pool in the middle, weighing boats sibility, such as whether doctors the Paris agreement. World-Wide with migrants. Italy’s coast guard had down into the sea. The liquids form a should warn police about a mentally ill “The plan is for Director transmitted the coordinates, along corrosive mixture that eats away at the patient who owns guns. Cohn to consider other ways with a warning the makeshift craft flesh of those stuck in the crowded In the chaos of a humanitarian di- in which we can work with The Trump administra- could soon sink. boat. Panic erupts and people drown. saster, such as when thousands of Afri- partners in the Paris Climate tion is considering staying A voice crackling across the radio The other option would be to con- can and Middle Eastern migrants try to Accord,” Mr. Tillerson said. in the Paris agreement “un- told of another emergency. A lone tinue on their course. They didn’t cross the Mediterranean in flimsy ves- “We want to be productive. der the right conditions.” A1 West African man plucked from the sea know the dinghy’s exact condition or sels, there are few rules about whom We want to be helpful.” by a nearby vessel was grievously ill whether another ship could rescue it. to help and in what order. “It’s all Separately, National Secu- Myanmar’s top military with a soaring fever and convulsions. And without immediate medical care, about finite resources in a world of in- rity Adviser H.R. McMaster commander urged the “He is unconscious and not respond- the man on the boat a half-hour west Please see BOAT page A6 Please see PARIS page A2 country to unite despite international criticism of its treatment of the ethnic-Rohingya minority. A1 Up Like a Rocket, Down Like a Feather British police arrested a Myanmar Military Weighs In Gasoline prices shot up as Hurricane Harvey knocked out reﬁneries. second man in connection It could take several weeks for fuel prices to fall. B1 with a bomb blast in Lon- don’s subway. A3 As Rohingya Flee Country Reﬁnery capacity utilization Retail gasoline prices (all grades) Pakistan’s top diplomat Weekly Weekly U.S. average BY JAMES HOOKWAY those labeling the crisis as a “They have demanded rec- will reproach the U.S. for 100% Sept. 8 $3.00 a gallon Sept. 11 clear instance of ethnic cleans- ognition as Rohingya, which 77.7% $2.80 its new Afghanistan policy Myanmar’s top military ing. Bangladesh medical offi- has never been an ethnic for following a militaristic commander has urged the cials said Sunday they are try- group in Myanmar,” Gen. Min approach. A4 80 2.80 country to unite in the face of ing to restrict the refugees Aung Hlaing said. “The Bengali The Philippines dis- growing international criti- from moving further into the issue is a national cause, and banded a city’s police force cism of its treatment of the country and have now begun we need to be united in estab- 60 2.60 over the alleged execution ethnic-Rohingya minority, immunizing tens of thousands lishing the truth.” of a teenager and threat- some 400,000 of whom have of children against disease, the Myanmar’s armed forces ened to declare martial law now sought refuge across the Associated Press reported. began sweeping through the 40 2.40 in response to pressure border in Bangladesh in the In comments posted to his northern reaches of Rakhine over the war on drugs. A4 past three weeks. official Facebook page Satur- State, which borders Bangla- Bangladesh and other na- day, Senior General Min Aung desh, after militant Rohingya 20 2.20 Trump will address the tions have said they would Hlaing reflected the wide- carried out a series of attacks U.N. to rally world leaders raise the plight of the Muslim spread view in Myanmar that on government outposts on to contain Pyongyang’s nu- 0 2.00 Rohingya at the United Na- the stateless Rohingya are il- Aug. 25, killing 12 security of- clear ambitions, increase tions General Assembly this legal immigrants from Ban- ficials. The area has long been JulyAug. Sept. JulyAug. Sept. pressure on Iran and com- week in New York. gladesh, and should be known steeped in tension, with many Source: Energy Information Administration THE WALL STREET JOURNAL. bat Islamic State. A4 U.N. officials are among as Bengalis. Please see ARMY page A3 Hamas agreed to conditions demanded by the Palestinian Authority pres- I’ll Have a Merlot With That ident for reconciliation INSIDE with his Fatah party. A3 Dish I Can’t Pronounce Debate Deepens Saudi Arabia is continu- iii ing with a security crackdown, prompted by an al- Novel menu items like takoyaki and On Sensitive Deals leged coup plot. A3 White House and ’nduja baffle even intrepid diners President Donald Trump’s money is coming from China, a Trump campaign officials rejection last week of a Bei- military and economic rival. caught up in the Russia jing-backed fund’s attempt to In rejecting Canyon Bridge probe are struggling to BY JULIE JARGON dent. “I usually say it with a acquire a U.S. semiconductor Capital Partners Inc.’s attempt pay their legal bills. A5 question mark at the end.” company was for many in to buy Lattice Semiconductor When the first dedicated The poke problem is one of Washington an easy call be- Corp., which is based in Port- CONTENTS Life & Arts.... A8-9,12 poke eatery opened in Indianap- the embarrassing prospects land, Ore., Mr. Trump declined Business & Fin...... B2 Markets...... B8 Crossword...... A12 Opinion...... A10-11 olis a few months ago, Diana some diners face these days By Julie Steinberg to overrule a recommendation Europe File...... A2 Technology...... B3 Nolting googled “how to pro- with menus as Americans grow in Hong Kong by the Committee on Foreign Heard on Street..... B8 U.S. News...... A5 nounce poke” and hungrier for interna- and Kate O’Keeffe Investment in the U.S. to block Journal Report...... B4 Weather...... A12 found a YouTube video tional cuisine—and in Washington the transaction. CFIUS is a Keywords...... B1 World News...... A2-4 from a young Hawaiian as restaurateurs jump multiagency panel that re- China: RMB28.00; Hong Kong: HK$23.00; man teaching main- in to serve them with cause it involved a sensitive views deals for national-secu- Indonesia: Rp25,000 (incl PPN); ‘HAMILTON’ Japan: Yen620 (incl JCT); Korea: Won4,000; landers the name of dishes that food so- sector and funding from the rity concerns. Malaysia: RM7.50; Singapore: S$5.00 (incl GST) the raw-fish salad phisticates may know HISTORIAN’S Chinese government. For U.S. policy makers, the KDN PP 9315/10/2012 (031275); MCI (P) NO. 066/01/2017; SK. MENPEN R.I. NO: 01/ from his island. how to pronounce NEW BOOK The decision did little, how- reasons were straightforward: SK/MENPEN/SCJJ/1998 TGL. 4 SEPT 1998 Poke isn’t pro- Poke but that many people ever, to settle a growing de- The sale could have ceded in- nounced like some- don’t. bate on Capitol Hill over how tellectual property to China thing one does with a stick, or Tongue-twisting dishes ex- LIFE & ARTS, A9 the U.S. should approach for- amid a battle between the two as in doing the hokey pokey. It’s ploding in popularity include ta- eign acquisitions that the gov- countries to dominate the POH-keh, linguists say, though koyaki (pronounced tah-koh- ernment perceives to be less semiconductor industry. many people swear it’s POH-kay, yah-key), a battered, ball-shaped ALASTTRYON clear-cut. At issue is how to The White House said the rhyming with OK. Japanese treat filled with octo- OBAMACARE balance the need to protect $1.3 billion transaction could s Copyright 2017 Dow Jones & Ms. Nolting, a 31-year-old pus, and shakshuka (shak- national security with the de- have risked U.S. national secu- Company. All Rights Reserved product analyst at a cloud-com- SHOO-kah), a Tunisian poached- sire to stay open to foreign in- rity and, in addition to the rea- puting company, still isn’t confi- Please see MENU page A4 OPINION, A10 vestment, especially when the Please see CFIUS page A2

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Monday, September 18, 2017 THE WALL STREET JOURNAL. WORLD NEWS Three Speeches Could Shape Europe’s Future

supposedly justifying warn- with a more vulnerable euro- ings not least by Brexiters of zone. the EU’s inevitable drift to- Meanwhile another poten- ward federalism and the cre- tial shock stalks the EU ation of an EU “superstate.” about which Mr. Juncker had But this misses the point. nothing to say at all. His de- Mr. Juncker’s speech was cision not to discuss Brexit EUROPE FILE as interesting for what it was supposed to convey con- didn’t contain as much as fidence that the U.K.’s deci- By Simon Nixon what it did. For this to have sion to quit the EU doesn’t been a major step toward represent an existential federalism, there would have threat to the survival of the Three speeches in two to be a major transfer of block. But this show of confi- weeks are likely to shape Eu- power and resources to the dence hides deep anxiety in rope’s destiny for years to EU. Yet there was no men- some European capitals at come. tion of plans to give the EU the way that the negotia- The first came last week new tax-raising powers, or tions are going. Significant when European Commission the ability to issue its own interests are at stake in president Jean-Claude debt. Nor was there any terms of cross-border invest- Juncker delivered his annual mention of a recently-floated ment, supply chains and state of the union speech to Commission proposal to pool trade and there is an enor- the European Parliament in risks via common EU-wide mous mount to negotiate in which he set unemployment insurance. the 18 months before the out his Another idea to create a Eu- U.K. leaves, notes one senior

agenda for the ropean safe asset by offering PATRICK HERTZOG/AGENCE FRANCE-PRESSE/GETTYFrench IMAGES official. Yet the nego- European joint guarantees of sover- European Commission President Jean-Claude Juncker delivers his annual state of the union speech. tiations are currently stalled. Union over eign-bond backed securities Prime Minister Theresa the next 16 appeared in the Commission functions that could be per- toward deeper eurozone fis- but the government has yet May will attempt to unblock months. agenda only as an idea mer- formed by the creation of a cal integration is vital to to reach a decision on how it this process with the other This included eye-catching iting further “exploratory new eurozone budget line in cushion the currency bloc thinks this should be funded big speech of the fortnight in initiatives such as a plan to work.” the overall EU budget line. against a possible shock and what it should do, say Florence this Thursday. merge his job with that of Most of Mr. Juncker’s pro- This included using the bud- from Italy that many fear people involved in the dis- Her task looked even Donald Tusk to create a single posed institutional changes get as a backstop to the could strike at any time. cussions. harder following an interven- president of the EU Commis- simply involve beefing up banking union. But he didn’t Yet French government If Mr. Macron does scale tion by foreign secretary Boris sion and Council, the creation the way in which the EU ex- propose a radical increase in thinking may be shifting: Of- back his ambitions then eu- Johnson over the weekend of a eurozone finance minis- ercises existing powers. His the size of the budget neces- ficials now emphasize the rozone reform may not prog- that suggested cabinet divi- ter, deeper European defense plan to turn the European sary to turn it into a credible importance of structural ress much beyond the lim- sions over how to handle the cooperation, the creation of Stability Mechanism—the eu- crisis-fighting tool. overhauls by national gov- ited overhauls proposed by negotiations. A collapse in the new EU agencies to monitor rozone’s bailout fund—into a That in turn puts the ernments—including further Mr. Juncker. That would negotiations leading to a cha- national structural changes European Monetary Fund spotlight on a speech that moves to improve the func- please Germany, which be- otic British exit from the EU and the application of EU la- didn’t specify any new pow- Emmanuel Macron is ex- tioning of the eurozone lieves that there is little the would be highly destabilizing bor rules and new incentives ers to accompany this name pected to deliver on Sept. banking system—to boost EU can do upfront to mini- both economically and politi- for all remaining EU member change. Nor did he say what 26, two days after the Ger- productivity rather than mize the risks of a possible cally, not only for the U.K. states to adopt the euro. new powers if any should be man election. Until now, the pooling of risks as the key to Italian crisis and that any The EU may be more vul- Mr. Juncker’s speech inev- wielded by the proposed new French president has sided strengthening the eurozone. consequences can only be nerable to shocks than Mr. itably provoked accusations eurozone finance minister. with those economists who Mr. Macron may still push addressed as they arise Juncker may be willing to of a Brussels power-grab, He did suggest some new believe that a decisive move for a big eurozone budget —even if that means living admit.

tie-up were approved. CLSA, a unit of Chinese state- Trump’s decision to forbid the CFIUS On Capitol Hill, though, the Slowdown owned brokerage Citic Securi- Lattice-Canyon Bridge tie-up, decision didn’t strike lawmakers Value of announced Chinese takeovers in the U.S. ties Co. He spoke with the Mr. Mnuchin in a statement as a political one. Senate Bank- Journal before Mr. Trump’s highlighted what he called the ContinuedfromPageOne ing Committee Chairman Mike $60 billion decision on the Lattice deal U.S.’s continuing openness to- sons above, also cited “the im- Crapo (R., Idaho) said at a hear- Full year had been announced. ward foreign investment. portance of semiconductor ing about CFIUS’s role that took 50 Through Sept. 15 In the interview, Mr. Ban- “The CFIUS process focuses supply chain integrity to the place the day after Mr. Trump’s non, who has a nationalist exclusively on identifying and United States Government, and decision that the Lattice case 40 agenda, said CFIUS needs to addressing national security the use of Lattice products by “sounds like it should be con- be very careful about transac- concerns,” he said. the United States Government.” sidered textbook CFIUS” and tions involving the sale of U.S. Mr. Pittenger, who led a bi- Mr. Trump’s decision was that the move was reassuring. 30 strategic assets and deals that partisan group of 22 House swiftly condemned by Beijing, At the same time, Mr. put proprietary technology members in a letter flagging where a spokesman for China’s Crapo, whose committee has 20 into the hands of foreign own- opposition to the Lattice deal, Ministry of Commerce said oversight authority over ers. The definition of sensitive said in a statement following countries shouldn’t use secu- CFIUS, indicated that the de- 10 industries or technology could Mr. Trump’s ruling that he rity reviews “as a tool for pro- bate over CFIUS’s powers is be broadened, he said. wasn’t against all Chinese in- tectionism.” far from settled. He predicted that the re- vestments but that “we must 0 “We hope that certain “We should discuss whether cent wave of Chinese take- be aware of the Chinese gov- countries can look at Chinese CFIUS is even the right agency 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 overs of U.S. firms would ernment’s strategic, system- companies’ overseas acquisi- to reform in order to address Source: Dealogic THE WALL STREET JOURNAL. come to an end and said atic effort to infiltrate key tions objectively and fairly, various complaints associated stepped-up scrutiny should go American infrastructure.” and provide fair treatment to today with China’s investment to protect national security. CFIUS should become larger beyond deals emanating from CFIUS in recent months has this kind of normal commer- strategies,” Mr. Crapo said, Senate Majority Whip John and review more deals, with China. spent more time scrutinizing cial activity,” said Gao Feng, praising what he referred to as Cornyn of Texas and Rep. Rob- the goal of reducing foreign The U.S. should “think Chinese deals, many of which the ministry spokesman. the U.S.’s “world-renowned” ert Pittenger (R., N.C.) have direct investment into the through who’s investing and are still awaiting clearance. At Many sectors of China’s open investment policy. both said they soon plan to in- country’s sensitive sectors. what’s the purpose of that in- the same time, other forces economy remain largely closed His comments echo senti- troduce CFIUS overhaul bills Mr. Bannon, who left the vesting,” no matter which such as increased Chinese cap- to foreign investors. ments that have been ex- that would ratchet up scrutiny White House last month, is country is behind the takeover, ital controls also appear to be The companies have said pressed by some free-market of foreign investment in the still in contact with Mr. Trump, he said. Mr. Bannon added weighing on deal making. The they see anti-China sentiment congressional Republicans and U.S., including provisions the Journal has reported. In that foreign purchases of mi- value of announced cross-bor- in the U.S. at work. Lattice’s private business people who aimed at Chinese deals in the interview, he said officials nority stakes in U.S. compa- der acquisitions and invest- chief executive said his com- remain wary of shutting out technology and other sectors. in the Treasury and Commerce nies should also be reviewed ments by Chinese firms into pany and Canyon Bridge had too much foreign investment. Former White House chief departments, both part of more comprehensively. U.S. companies is down by tried to address all possible Still, a growing bipartisan strategist Steve Bannon, who CFIUS, continue to carry out Treasury Secretary Steven nearly 70% so far this year national-security issues group in Congress and some said in a recent interview with the agenda he helped create on Mnuchin, who is CFIUS’s from the same period in 2016, through an agreement to give former and current administra- The Wall Street Journal in foreign-deal reviews. chairman, has also said he be- according to Dealogic. the U.S. government control tion officials are arguing that Hong Kong that his philosophy Mr. Bannon was in Hong lieves that the CFIUS process —Eva Dou, Natasha Khan over Lattice’s intellectual strengthening the CFIUS review helped guide CFIUS while he Kong to speak at a conference needs to be strengthened. and Steven Russolillo property and technology if the process is paramount in order was in the White House, said held by financial-services firm However, following Mr. contributed to this article.

Paris agreement,” said deputy try to review the terms on clarity on the new emissions- Some major U.S. energy naled that they intended to PARIS press secretary Lindsay Wal- which they could be engaged reduction objectives, the official companies, including Exxon continue taking steps to reduce ters. “As the president has under this agreement,” Euro- said. Mobil Corp., had urged Mr. emissions by their companies. made abundantly clear, the U.S. pean Commissioner for Cli- “They are seriously consid- Trump not to withdraw from —Paul Vieira, Eli Stokols ContinuedfromPageOne is withdrawing unless we can mate Action and Energy Mi- ering the terms on which the the Paris accord. But some and Elena Cherney said, “The president decided re-enter on terms that are guel Arias Cañete said. U.S. could re-engage,” the offi- other players in the energy in- contributed to this article. to pull out of the Paris Ac- more favorable to our country.” In announcing the decision to cial said. “They have also dustry, including the chiefs of cord because it was a bad Multiple participants at the withdraw the U.S. from the 195- made clear that they have no some shale companies, sup- THE WALL STREET JOURNAL. deal for the American people Montreal gathering said White nation agreement at the White intention to renegotiate or de- ported the move to leave the Dow Jones Publishing Company (Asia) and because it was a bad deal House senior adviser Everett House in June, Mr. Trump said velop a parallel track to Paris.” Paris Accord. 25/F, Central Plaza, 18 Harbour Road, Hong Kong for the environment.” Eissenstat’s approach, though he was ready to “begin negotia- Canada, China and the EU Whether or not the U.S. opts Tel: 852 2573 7121 Fax 852 2834 5291 He also said the president it is likely to entail a signifi- tions to re-enter either the Paris organized the ministerial to stay, the country’s emissions Andrew Dowell, Asia Editor “left the door open to re-en- cant reduction in the U.S.’s accord or an—really entirely meeting in Montreal just be- of greenhouse gases are widely Troy McCullough, Senior News Editor, Asia tering at some later time if ambition to curb greenhouse- new transaction—on terms that fore world leaders descend on predicted to continue declin- Darren Everson, International Editions Editor there can be a better deal for gas emissions, fueled opti- are fair to the U.S., its busi- New York for the United Na- ing, as gas power replaces coal, Hugo Restall, Editorial Page Editor the U.S.…If there’s an agree- mism among proponents of nesses, its workers, its people, tions General Assembly. helped by bountiful supplies of Mark Rogers, Advertising Sales ment that benefits the Ameri- the Paris deal. Since Mr. its taxpayers.” Signed in 2015 under a U.N. cheap natural gas. The declin- Ben Mackness, Circulation Sales can people, certainly.” Trump’s inauguration in Janu- The U.S. has the world’s effort to fight climate change, ing cost of renewable power, Toby Doman, Communications Simon Wan, Technology In a statement Saturday af- ary, officials from China to the second highest level of green- the Paris deal is also on the including wind and solar, is Jonathan Wright, ternoon, a White House EU and Canada have tried to house-gas emissions, which agenda as countries seek to also forecast to play a role in Global Managing Director & Publisher spokeswoman said the admin- convince his administration drive global warming, behind meet their global commitment reducing emissions. Advertising through Dow Jones Advertising istration’s position on Paris that fighting climate change is China. Washington’s exit from to limit the global temperature When Mr. Trump announced Sales: Hong Kong: 852-2831 2504; Singapore: hadn’t changed, but also noted also a boon for the economy the Paris deal would under- increases to “well below” 2 his intention to withdraw from 65-6415 4300; Tokyo: 81-3 6269-2701; that the president’s stance on and jobs, and not just an ideo- mine its viability and could degrees Celsius (3.6 degrees Paris in June, executives at Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17 17 01; New York: withdrawing from the deal had logical battle. trigger other exits, unraveling Fahrenheit) compared with many U.S. companies, in the 1-212 659 2176. never been set in stone. “The U.S. has stated that an agreement that took de- preindustrial levels. energy sector and beyond, sig- Or email: [email protected] “There has been no change they will not renegotiate the cades to negotiate. Printers: Hong Kong: Euron Limited, 2/F., Block 1, Tai in the U.S.’s position on the Paris accord, but they will Washington is reviewing Ping Industrial Centre, 57 Ting Kok Road, Tai Po, Hong CORRECTIONS Kong; Indonesia: PT Gramedia Printing Group, Jalan new emission-cut targets to Palmerah Selatan 22-28, Jakarta 10270; Japan: The Mainichi Newspapers Co., Ltd., 1-1-1 Hitotsubashi, combat climate change, Mr. AMPLIFICATIONS Chiyoda-ku, Tokyo, 100-8051; Korea: JoongAng Ilbo. Eissenstat said, according to 100 Seosomun-ro, Jung-gu, Seoul, 100-814. Publisher/ Printer: Song, Pil-Ho; Malaysia:Dasar Cetak (M) Sdn one of the participants at the Bhd, Lot 2, Jalan Sepana 15/3, Off Persiaran Selangor, Seksyen 15, 40200 Shah Alam, Selangor. (ROC No: meeting. Any revisions would Saint-Emilion is about 30 the environment, or a fan of 048885)6; Singapore: Singapore Press Holdings lower existing U.S. commit- miles east of Bordeaux. A Man- the planet.” A U.S. News article Limited, 2 Jurong Port Road SPH Print Centre ments signed by former Presi- sion article in the Friday-Sunday on Sept. 6 about the interior Singapore 619088 dent Barack Obama, which edition about homes in south- secretary incorrectly attributed Trademarks appearing herein are used under license from Dow Jones & Co. would be a blow to the global western France incorrectly said the exchange to Dan Roper. ©2017 Dow Jones & Company. All rights reserved. effort, the official said. Under the town was west of Bordeaux. USPS 337-350; ISSN 0377-9920 the Paris accord, every coun- An interview with the late NEED ASSISTANCE WITH try set its own goals. John Paul Drake of Ash- Pierre Bergé that appears in YOUR SUBSCRIPTION? While Mr. Eissenstat, deputy land, Ore., in July confronted WSJ. Magazine’s September By web: http://wsj-asia.com assistant to the president for Interior Secretary Ryan Zinke Men’s Style issue about two By email: [email protected] By phone: Hong Kong: 800 901 216; Australia: international economic affairs in the Cascade-Siskiyou Na- new museums honoring Yves 0011 8000 322 8482; China: 400 991 1174; and deputy director of the Na- tional Monument, saying, “I Saint Laurent went to press be- India: 000 800 440 1938; Indonesia: +62 21 2970 2702; Japan: 0120 779 868; Korea: 0030 tional Economic Council, out- know your boss is not a fan of fore Mr. Bergé’s Sept. 8 death. 844 0063; Malaysia: 1800 804 612; New lined a plan to reassure part- Zealand: 0800 442 434; Philippines: 1800 1441 0033; Singapore: 1800 823 2042; Taiwan: DANIEL ACKER/BLOOMBERG NEWS ners the U.S. would be Readers can alert The Wall Street Journal to any errors in news articles by 00801 444 141; Thailand: 001800 441 8323 The cost of alternative power sources, such as wind, is declining. constructive, he did not provide emailing [email protected]. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | A3 WORLD NEWS U.K. Police Narrow Probe’s Focus U.K. Offers

Investigation into Security bomb blast that injured dozens turns Treaty to London suburbs With EU BY GEORGI KANTCHEV BY JASON DOUGLAS AND JASON DOUGLAS LONDON—The U.K. govern- SUNBURY-ON-THAMES, ment proposed Sunday that ENGLAND—Investigators London and Brussels sign a probing a bomb blast that in- new treaty to ensure coopera- jured more than two dozen tion on security and law en- people in London’s subway forcement after Britain leaves combed through a house in the European Union. this suburban town owned by The proposal, laid out in a foster parents that neighbors paper to be published Monday, said had recently been caring highlights the close ties be- for two “refugees.” tween the U.K. and other EU Armed police descended on member states in matters of the neighborhood Saturday af- criminal justice that officials ter the arrest of an 18-year-old are eager to preserve in the fi- man in connection with the nal withdrawal agreement. Friday attack, in which an im- It comes a day after the provised explosive device British capital was struck by aboard a train erupted in a the latest in a string of terror- ball of flame, burning some ist attacks in Europe this year, passengers and sending others when 29 people were injured fleeing in panic. by a homemade bomb left on a Police also arrested a sec- packed subway train. ondman,aged21,lateSatur- A new treaty would provide

day evening in a different sub- DANIEL LEAL-OLIVAS/AGENCE FRANCE-PRESSE/GETTY IMAGES a legal basis for continued col- urb to the west of the capital. Police stood guard during a search by a forensics team in Stanwell, Surrey, near London on Sunday, following Friday’s London blast. laboration on security, law en- Both were being questioned on forcement and criminal justice Sunday, police said. Rudd said the move indicates Middle East under pressure On Sunday, police were still who most recently were caring following the U.K.’s exit from In the wake of the bombing, “good progress has been from the U.S. and others. working in the Sunbury home. for two males that neighbors the EU, said a statement from the latest in a series of terror- made” in tracking down the Metropolitan Police Assis- Yellow tents had been set up described as “refugees.” the U.K.’s Department for Exit- ist assaults in Britain this year, culprits behind Friday’s blast. tant Commissioner Mark Row- outside and the street was Dave Solway, 44, who lives ing the European Union. the government raised the na- Mrs. Rudd also said Sunday ley, the U.K.’s top counterter- blocked off with a gray fence. across the street from the tional terror-alert status to that investigators haven’t rorism officer, said the search Property records indicate the Jones’s house, said he saw Mr. “critical,” its highest level, be- found evidence of involvement in Sunbury and another in house is owned by Ronald and Jones arguing with one of the fore lowering it again on Sun- by Islamic State, which said a Stanwell, near London, had Penelope Jones. The couple men in the middle of the road ‘Cooperation is day afternoon in a sign that “detachment” of its fighters given law-enforcement agen- couldn’t be reached for com- about two weeks ago. The man absolutely crucial … authorities no longer fear that was responsible for the attack. cies “a greater understanding ment. said “he didn’t want to stay another attack is imminent. The extremist group is losing of the preparation of the de- Neighbors said the Joneses here. He wanted to go to Lon- if we are to keep our U.K. Home Secretary Amber its grip on territory in the vice” used in Friday’s attack. were veteran foster parents don,” Mr. Solway said. citizens safe.’

TheU.K.saidatreaty Palestinians Agree to Map for Reconciliation would establish formal chan- nels for agencies to cooperate Militant group Hamas said step forward, said a Sunday til April directed roughly a after the 2019 divorce and in- it agreed to conditions de- statement on the Palestinian third of its annual budget to clude a method for settling manded by Palestinian Author- Authority’s official media Gaza. But Mr. Abbas has in re- disputes. “Effective interna- ity President Mahmoud Abbas channel. cent months increased the fi- tional cooperation is abso- for reconciliation with his Fa- Egypt has in recent weeks nancial pressure on Hamas to lutely crucial for both the U.K. tah party, a move aimed at tried to broker a deal between cede control of the strip, cut- and the EU if we are to keep mending a decadelong rift be- the two sides, and Fatah and ting salaries of teachers and our citizens safe and bring tween the two dominant Pal- Hamas officials have made fre- doctors in Gaza, and refusing criminals to justice,” U.K. estinian factions. quent visits to Cairo. to pay for a large portion of Brexit Secretary David Davis After meeting with Hamas the electricity Israel supplies said in the statement. By Abu Bakr Bashir in officials in Cairo, Mr. al-Ah- to the strip. EU member states and their Gaza City and Rory med said Palestinians “will Hamas also faces further fi- law-enforcement agencies rou- Jones in Tel Aviv witness tangible practical nancial and political pressure tinely share data and intelli- steps” toward reconciliation, after its main benefactor, Qa- gence on at-large wanted Hamas, which rules the im- starting with an Authority tar, in June became subject to criminals in Europe and work poverished Gaza Strip, said presence in Gaza, the Author- an economic blockade by together to combat organized Sunday it would endorse na- ity’s statement said. Saudi Arabia, Egypt and the crime and terrorism. National

tional elections in the West ABBAS MOMANI/AGENCE FRANCE-PRESSE/GETTY IMAGES United Nations Special Co- U.A.E. over alleged support for police forces cooperate Bank and Gaza, and allow the Hamas acceded to Mahmoud Abbas’s Fatah conditions Sunday. ordinator for the Middle East terrorist groups in the Middle through Europol, the EU’s po- Palestinian Authority to ad- Peace Process Nickolay Mlade- East. Qatar has denied the ac- lice office, and the bloc has minister the strip. Mr. Abbas, leadership have repeatedly vows Israel’s destruction, and nov also called on all sides to cusations. developed streamlined proce- whose government helps fund spoken about a national gov- restore ties with Palestinian “seize this opportunity to re- Fearing Qatar will cut fund- dures to share evidence and Gaza’s economy, has for ernment in the Palestinian ter- politician Mohammed Dahlan, store unity and open a new ing to the strip, Hamas has arrest and extradite suspects. months financially pressured ritories comprising both fac- a former ally-turned-enemy of page for the Palestinian peo- turned to Egypt for fuel to The U.K. said it would call the group to cede control. tions but have failed to Mr. Abbas who is backed by ple.” power Gaza and asked it to for a comprehensive agree- Reconciliation would mark implement such an agreement. the United Arab Emirates and U.S. President Donald open up the major crossing ment on security collaboration a significant step forward for Hamas made no mention in its lives in Abu Dhabi. Mr. Abbas Trump has identified Israeli- into the strip from the Egyp- with the EU as part of the the Palestinian national move- statement of handing over se- is unlikely to want to work Palestinian peace as a key for- tian Sinai Peninsula for sup- “deep and special partnership” ment, which has been at a curity of the strip to the Au- with either of those parties. eign policy goal, but won’t ne- plies. it wants to forge after Brexit. stalemate since 2007, when thority, a key demand by Mr. Azzam al-Ahmed, a member gotiate directly with Hamas Israel and Egypt largely Prime Minister Theresa Hamas took control of Gaza Abbas’s government in mend- of Fatah’s central committee, over the fate of Gaza. The control movement of goods May is due to lay out the gov- after an armed conflict. But ing the rift. nonetheless welcomed group is considered a terrorist and people into the strip, a dy- ernment’s latest thinking on such a rapprochement is likely Hamas’s new leadership in Hamas’s announcement and organization by the U.S. and namic that has helped weaken Brexit in a speech in Italy on to face significant obstacles. recent weeks has said it is ea- hailed its call for a national- Israel. Hamas’s economic and politi- Friday before divorce talks re- Mr. Abbas and Hamas’s ger to work with Iran, which unity government as a positive The Fatah-led Authority un- cal standing at home. sume near the month’s end.

laureates wrote. ARMY It is difficult for Ms. Suu Kyi to constrain Myanmar’s Saudi ‘Coup Plot’ Prompts Crackdown army, however. The junta that ContinuedfromPageOne ruled Myanmar for nearly five BY MARGHERITA STANCATI Rohingya saying their roots in decades was dissolved in 2011, the area go back centuries. but left behind a constitution Saudi Arabia is pressing Myanmar, for its part, regards that secures a role for the mil- ahead with a security crack- the attacks as the militants’ itary in running the country down that rights groups have first significant attempt to and prevents Ms. Suu Kyi from criticized, with some officials carve out their own territory becoming president after she now saying it is targeting sus- in the area, and its response won national elections in 2015, pects involved in a nascent has been ferocious. on the grounds that her chil- plot to overthrow the king- Refugees have reported sol- dren are foreign nationals. She dom’s government. diers shooting villagers and instead holds the specially cre- Saudi authorities didn’t torching homes. In some in- ated post of state counsellor. name the people it detained stances, local Buddhist vigilan- The army can also veto gov- nor quantify their number, but tes joined the violence. ernment directives, and activists say that at least 40 changing the constitution is people have been rounded up impossible without action during the past week, most re- from the 25% of seats it is al- cently on Thursday night. Aung San Suu Kyi is located in the country’s parlia- About half of them are clerics scheduled to address ment. Political analysts in and among the rest are promi- Myanmar say that, in effect, nent scholars, political com- Myanmar’s diplomatic the 2015 elections were a con- mentators and members of the corps on the crisis. test to see who shares power royal family, the activists said. MOHAMMED HASSAN/ZUMA PRESS with the army. The government earlier had Muslims pilgrims visited the tomb of Prophet Mohammad in the holy Saudi Arabian city of Medina. In her only public com- explained the crackdown by ments on the latest Rohingya saying that foreign interests ceiving financial backing from consolidates power before he “In recent years we cannot Myanmar’s civilian leader, crisis, Ms. Suu Kyi so far has had threatened national secu- two unnamed foreign coun- inherits the throne from his recall a week in which so Nobel Peace Prize winner Aung chosen not to confront Gen. rity. On Friday, some officials tries “aiming to destabilize se- father, King Salman. The Saudi many prominent Saudi Ara- San Suu Kyi, is under pressure Min Aung Hlaing, but to com- went further, saying many of curity and threaten the na- official denied this on Friday, bian figures have been tar- to contain the military as it mend the military’s response those targeted had ties to the tional unity as a preliminary saying the crackdown was geted in such a short space of continues its operations in Ra- totheAug.25attacks. Muslim Brotherhood, an Isla- step toward overthrowing the aimed at countering a specific time,” said Samah Hadid, Mid- khine State. Fellow Nobel lau- She also canceled her visit mist group that is banned in legitimate government in fa- national security threat. dle East director of campaigns reates have called on her to to the U.N. General Assembly Saudi Arabia, and they were in- vor of the Muslim Brother- Activists say the campaign for Amnesty International. speak out with the moral au- to deal with the crisis. She is volved in the early stages of an hood organization.” goes beyond many of the gov- Saudi officials didn’t com- thority earned with her own scheduled to address Myan- antigovernment plot. He declined to comment ernment’s past clampdowns, ment on plans for the king’s Nobel Prize, awarded in 1991 mar’s diplomatic corps and “The group that was de- further on the alleged plot and both in the scope of those tar- possible abdication. for resisting military rule. press on the crisis on Tues- tained has been engaged in in- the detentions. The Wall Street geted and the intense monitor- The Muslim Brotherhood “How many Rohingya have day, and her speech will be telligence activities and has Journal couldn’t independently ing of social-media posts by espouses a populist vision for to die; how many Rohingya likely be closely watched for contacts with foreign entities, verify the allegations. prominent figures. They say it an Islamist-guided govern- women will be raped; how signs as to whether she will including the Muslim Brother- Some Saudi and foreign of- also targets independent politi- ment that threatens the Gulf’s many communities will be ultimately break ranks with hood,” a senior Saudi official ficials and observers say Saudi cal voices. Many of those de- ruling monarchies. Many se- razed before you raise your Gen. Min Aung Hlaing, or stay said Friday. Arabia is trying to stamp out tained didn’t support the Saudi nior members of the Brother- voice in defense of those who with the army in the current He said members of the internal dissent as Crown government’s decision to sever hood are now based in neigh- have no voice?” one group of government. group are also accused of re- Prince Mohammed bin Salman relations with Qatar. boring Qatar.

wsja_20170918_a003_p2hw261000_0_a00300_1______al2017.crop.pdf 1 17-Sep-17 19:10:45 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Monday, September 18, 2017 HK JP KO ML SI IN UK FR MN PR THE WALL STREET JOURNAL. WORLD NEWS Trump to Address U.N. on Global Crises

President Donald Trump will Guterres on Monday at an event multilateral organizations like arrive at his first United Na- hosted by Mr. Trump on re- the U.N.” tions General Assembly meeting forming the U.N. Gen. McMaster said Friday this week looking to rally world One focus of the General As- that Mr. Trump’s speech would leaders to contain the nuclear sembly will be U.N. efforts to “emphasize the need for states ambitions of North Korea, in- demonstrate a renewed global to promote peace and prosper- crease pressure on Iran and commitment to combating cli- ity while upholding sovereignty combat Islamic State. mate change, largely in re- and accountability as indispens- sponse to Mr. Trump’s an- able foundations of interna- By Eli Stokols and nouncement in June that he tional order.” Michael C. Bender planned to withdraw the U.S. Elliott Abrams, a former in Washington and from the 2015 Paris Climate Ac- deputy national security adviser Farnaz Fassihi at cord. to President George W. Bush United Nations The U.S. administration will who is now a senior fellow at be absent from two major the Council on Foreign Rela- His speech, scheduled for events centered on climate tions, said the speech will be Tuesday, comes as the U.S. change this week, according to most important for a national seeks to maintain pressure on U.N. officials. audience rather than the diplo- North Korea after its most-re- Mr. Guterres will host a lead- mats in the room. cent missile launch on Friday. ers’ summit on climate where, a “I don’t think [the General Mr. Trump, who has de- senior U.N. official said, he will Assembly] has had a large im- scribed the U.N. as an “under- look for “leaders to step up” in pact on American foreign policy performer” and criticized what helping U.N. efforts. China, In- on the last five to 10 U.S. presi-

he believes to be its anti-Israel FABRIZIO CARRARO/ZUMA PRESS dia, South Korea and France dents,” Mr. Abrams said. “If bias, has held up the Security United Nations headquarters in New York. The president is looking for help to contain North Korea. will attend and are expected to [Mr. Trump] stands up and Council’s recent 15-0 vote to in- assume leadership roles in the gives a good speech, it cheers crease sanctions on North Ko- do more to restrain North Ko- The 2015 Iranian nuclear have little interest in returning U.S.’s absence, the official said. his followers and enhances a rea as a major win. “Very big fi- rea, and China and Russia have deal is also expected to be a to the negotiating table. Diplo- At a separate climate event, sense that he’s taking com- nancial impact!” he tweeted last criticized U.S. rhetoric. subject for the General Assem- mats have said they plan to U.S. mayors and governors will mand.” month. U.N. Ambassador Nikki Ha- bly meeting this week, said H.R. lobby Mr. Trump in bilateral attend but no administration Mr. Trump is scheduled to But he also has questioned ley, who said she had reviewed McMaster, national security ad- meetings to stay committed to officials, the U.N. said. hold a series of talks with world whether sanctions would be a draft of Mr. Trump’s speech, viser. Mr. Trump has threatened the Iran deal. Mr. Guterres told reporters leaders during the rest of the enough to deter the country’s said she expects the president to end the deal, though the U.S. Mr. Trump has proposed at a news conference last week week, though three of the most- leader, Kim Jong Un. The latest to be well received. “He slaps recently declared Tehran to be deep cuts to the U.N.’s $5.4 bil- that “it’s my deep belief that important heads of state or missile test could also fray the the right people, hugs the right complying with it. lion annual budget. the best way to preserve Ameri- government won’t attend: Ger- relationship at the U.N. among people and comes out with the Other world leaders that The U.S. president is sched- can interests is to engage posi- many’s Angela Merkel, China’s the U.S., China and Russia; the U.S. being very strong at the signed on—the U.K., France, uled to meet for the first time tively in global affairs and to Xi Jinping and Russia’s Vladimir U.S. has said it wants China to end,” Ms. Haley said. Germany, China and Russia— with Secretary-General António engage positively in support of Putin. Pakistan Criticizes Teen Death Reverberates in Manila BY JAKE MAXWELL WATTS nila, before being executed U.S. Afghan Policy while kneeling in a back alley MANILA—The government filled with garbage. of President Rodrigo Duterte Police initially said they BY SAEED SHAH lost more than 40% of terri- disbanded an entire city’s po- sought to arrest Mr. delos tory to the Taliban. How do lice force over the alleged exe- Santos on a tip from an infor- ISLAMABAD—Pakistan’s top you keep on fighting with cution of a teenager and mant, but the teenager shot at diplomat will reproach the U.S. them?” threatened to declare martial officers, who killed him in self- for its new Afghanistan policy Officials from the White law nationwide in response to defense. Security footage cap- at the United Nations General House, the U.S. Embassy in increasing political pressure tured minutes before his death Assembly this week, saying Pakistan and the U.S. State De- over the Philippine leader’s and obtained by local media, the Trump administration is partment in Washington didn’t deadly war on drugs. however, shows him being following a militaristic ap- immediately respond to re- The police department in marched, cowering and appar- proach that has already failed. quests for comment. Caloocan—part of metropoli- ently unarmed, between two Foreign Minister Khawaja The Trump administration tan Manila—with more than police officers. Witnesses told Muhammad Asif told The Wall plan would add as many as 1,000 staff, will be retrained local media that among his Street Journal that he couldn’t 3,900 U.S. soldiers to the and deployed in other districts last words were: “Please stop,

understand how the American 8,400 that the Pentagon says as a direct result of the 17- ROLEX DELAI PENA/EPA/SHUTTERSTOCK have a test tomorrow.” military could succeed now in are already in Afghanistan, year-old’s death, Manila’s po- Philippine police trainees at a Caloocan city facility on Friday. Police didn’t respond to Afghanistan when it hadn’t and allow them to fight the lice chief, Oscar Albayalde, questions about Mr. delos San- during the “surge” under the Taliban with freer rules of en- told local media channel ABS- high as 13,000 when deaths by rule of law and, if found guilty, tos. The three accused officers Obama administration with a gagement. At its peak, under CBN on Friday. unknown vigilantes are in- will be held accountable for from the Caloocan police de- force eight times as large as President Barack Obama, the “We are looking for the re- cluded. their actions within the man- partment, who are suspended the one now planned. U.S. had more than 100,000 shuffling of all the personnel Mr. Duterte last week called dates of our judicial system,” from duty, declined to answer He instead called for peace troops there. Mr. Tillerson from Caloocan city police of- suspected police executions of he said. questions during a Senate talks with the Taliban, which said last month the U.S. strat- fice in batches,” he said, add- suspects “sabotage” by those Kian Loyd delos Santos was hearing in late August and could be arranged if Washing- egy was to persuade the Tali- ing that the police “will not trying to discredit his war on shot in the head last month by couldn’t be reached for com- ton worked with countries in ban that they cannot win on tolerate any abuses of our per- drugs. Caloocan police, a killing that ment. the region that have influence the battlefield and “at some sonnel.” Government spokesman Er- stood out for its brutality and While the drug war remains over the militant group. pointwehavetocometothe Thousands of suspected nesto Abella said the president for video evidence suggesting generally popular among Fili- “They are pursuing a folly, negotiating table and find a drug users have been killed maintains high approval rat- police may have lied about his pinos, Mr. delos Santos’s kill- a strategy that has already way to bring this to an end.” since Mr. Duterte took office ings and annual common- death. Mr. delos Santos was ing was a turning point for failed,” Mr. Asif said. “Force Mr. Asif said now was the in June last year. Police say crime rates have fallen by one of several teenagers killed many, activists say, and has will not solve any problem, it time for talks and that neigh- 3,800 people had been killed more than a quarter as of in the past month. helped to galvanize opposi- has not solved problems in the bors were willing to help. A by officers during operations June. Forensics and witness re- tion. “It brought the issue of past.” four-country group intended as of the end of August, “The criminals who profited ports found that Mr. delos extrajudicial killings much Pakistan’s cooperation is vi- to prod such talks, Pakistan, though estimates from human- from their illegal activities for Santos was dragged through closer,” said Teresita Quintos- tal to the effort to stabilize China, the U.S. and Afghani- rights organizations and local so many years now recognize the narrow, dark lanes a short Deles, a former government neighboring Afghanistan and stan, which hasn’t met for media place the number as that they are subject to the distance from his home in Ma- peace adviser. extricate the U.S. from its lon- over a year, could be expanded gest war. The U.S. and Paki- to include other countries stan are ostensible allies, but with influence over the Tali- communications manager at WORLDWATCH have long suffered strained ban, he said. MENU Berlin-based language-learning ties. Relations turned more Pakistan’s influence over app Babbel, is still mortified by confrontational after President the militant group had waned, his memory of ordering br- CUBA Donald Trump accused Paki- he said, so other countries ContinuedfromPageOne uschetta a few years ago at a stan in August of providing a with contacts with the Taliban egg dish, says Grubhub Inc. Long Island Italian restaurant U.S. Considers haven for terrorists and then also needed to be involved, in- A few years ago, the food- with relatives, some of whom Closing Its Embassy threatening to withhold aid if cluding Iran, China and Russia. delivery service says, its most- are of Italian heritage. there wasn’t better coopera- The Taliban have indicated ordered items were pizza He pronounced the appetizer Secretary of State Rex Tiller- tion. that they are willing to talk to (PEET-zuh) and chicken wings brew-SHET-tuh. The waiter, son said the U.S. is considering Mr.Trumphadsaidthata the U.S. about a timetable for (CHIK-n-weengz). Those go-tos bringing it out, made a point of closing its embassy in Cuba in political settlement with ele- its withdrawal, but not to the have been supplanted by more saying “here’s your brew-SKEHt- response to what he has de-

ments of the Taliban was “per- Afghan government. adventurous dishes, it says. ARDESIA tuh.” Mr. Sporn’s family ribbed scribed as “health attacks” on haps” possible, but only after Mr. Asif also questioned the The number of poke orders The ’Nduja dish at Ardesia him, and the faux pas inspired a American diplomats there that an effective U.S. military cam- U.S. assertion that Pakistan through Grubhub has grown free service Babbel is rolling have caused hearing loss, con- paign. provided sanctuary for Afghan about 4.5 fold since 2014. smartphone so he could return out. Diners can snap a photo of cussions and other symptoms. Mr. Asif subsequently can- militants. “They don’t need Spices, including turmeric, and pronounce the Italian meats a mystifying menu item and Mr. Tillerson said on CBS TV celed a trip to the U.S. for sanctuaries on our territory. cumin and za’atar are also hot, guanciale (WAHN-chall-eh) and email it to Babbel. Within min- that he is considering calls from talks with Secretary of State They have plenty of territory causing their own round of con- bresaola (bre-zah-OH-la). utes, they receive a message Republican senators to close the Rex Tillerson and Islamabad which Americans have lost to fusion (TUR-muh-rik or TOO- When he struggled with from one of Babbel’s linguists embassy in Havana. It was re- also rejected a planned visit to them in Afghanistan during muh-rik? COO-min or KYU-min? okonomiyaki (oh-koh-no-mee- with an audio clip or phonetic opened in July 2015 as part of Pakistan by the senior U.S. of- the last 15 years,” Mr. Asif and what to do with that apos- yah-key), a Japanese pancake- spelling of the pronunciation. the Obama administration’s push ficial for the Pakistan-Afghani- said. “This is scapegoating you trophe in za’atar?). like dish, he headed to the rest- Babbel recently commis- to normalize ties with Cuba. stan region, Alice Wells. know, nothing else.” Restaurateurs such as Mandy room and googled a recording sioned the New York City Hospi- “We have it under evaluation. Instead, Mr. Asif toured the The U.S. launched its first Oser who want to draw diners of the pronunciation. After the tality Alliance to survey restau- It’s a very serious issue with re- region, visiting China, Iran and U.S. drone strike in Pakistan to up-to-date menus now find meal, “I was confident enough rants to determine which dishes spect to the harm that certain Turkey, saying afterward they on Friday since Mr. Trump’s they sometimes must help stave to say, ‘The okonomiyaki was are most intimidating for diners individuals have suffered,” Mr. agreed that a political solution policy announcement, killing off their verbal anxiety, too. Ms. really good.’ ” to pronounce. Respondents Tillerson said. was needed. at least three members of the Oser, owner of Ardesia, a New Mieke Dikkers, co-owner of cited French items such as cas- Officials at the Cuban Em- “I think Americans should Haqqani network, an ally of York wine-and-cheese bar, no- Le Provençal Bistro in Mama- soulet (kas-oo-lay) and mille- bassy in Washington didn’t im- be more realistic and more the Taliban, Pakistani security ticed few patrons were ordering roneck, N.Y., says 80% of her feuille (mil-fay), frequently mis- mediately respond to a request pragmatic about their ap- officials said. Pakistan opposes ’nduja, a spicy spreadable sa- guests are regulars who know pronounced kas-oo-let and mil- for comment. proach in Afghanistan,” Mr. U.S. drone attacks on its terri- lumi pronounced NN-doo-yah. how to pronounce the dishes. few, mil-foy or mil-fulee. —Felicia Schwartz Asif said. “They have already tory. Some guests who did order But on Valentine’s Day 2016, Poke-restaurant operators the Italian dish would say “nuh- a young couple argued over such as Andrew Hu have MALAYSIA doo-ja,” she says. More often, moules (mool), French for mus- added an accent, making it “people will say, ‘what’s this sels. When the woman said she poké to show the voiced letter. School Fire Stemmed N…uh, how do you say this?’ would like the “mu-leez,” her Mr. Hu, owner of Philly Poké From Teen Dispute and just trail off without going companion chastised her in in Philadelphia, says he knows further than the N.” She added a front of the server. “What do the first syllable gets the ac- Police detained seven youths phonetic spelling to the menu you mean, ‘mu-leez?’ ” he said. cent. But when he opened his in connection with a fire at an along with the notation, “Tricky The waiter quickly defused the restaurant in January, he Islamic boarding school, saying to pronounce…but tastes amaz- tension by offering a compli- posted the slogan “It’s okay to that a verbal dispute between ing!”—and noticed a 25%-to-30% mentary bottle of champagne poké” on his menu board, them and students at the school uptick in ’nduja orders. that pairs well with mussels. printed menus and website. led to an arson attack that killed To avoid linguistic bloopers, To help customers avoid Such laxness drives purists at least 23 people. Jeffrey Scott, 50, head of com- looking unworldly, Le Provençal nuts. “One thing we specifically Kuala Lumpur Police Chief pliance at a New York invest- Bistro’s menu includes descrip- didn’t want to do was add an Amar Singh said the suspects, ment firm, has used special tac- tions next to items so they can accent to it,” because it wasn’t between the ages of 11 and 18, tics during dates and business avoid voicing French names the correct spelling, says Gerald will remain in custody while the meals—ordering a dish by its such as coq au vin (coke-oh-vah) San Jose, co-owner of noreetuh, case is investigated under the number, asking a server for his and simply say they’ll have the a Hawaiian restaurant in New penal codes for “mischief by fire”

FAROOQ NAEEM/AGENCE FRANCE-PRESSE/GETTY IMAGES advice. He once sneaked off to “chicken in red wine.” York, “even though it helps peo- and murder. They haven’t been Pakistan Foreign Minister Khawaja Muhammad Asif the restaurant bar to check his Zach Sporn, a 32-year-old ple pronounce it properly.” charged. —Yantoultra Ngui For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | A5 U.S. NEWS

Russia THE OUTLOOK | By Josh Zumbrun and Tripp Mickle Probe Apple Tests Economic Price Theory

Legal Bills horstein Veblen was a cranky Norwegian-born Conspicuous Consumption Take Toll T economist who coined As cellphone penetration swells world-wide, Apple and Samsung are the phrase “conspicuous con- creating high-priced, high-end products that spur demand. BY ARUNA VISWANATHA sumption” and theorized that AND DEL QUENTIN WILBER certain products could defy Number of smartphones Average wholesale price the economic laws of gravity per 100 people iPhone Galaxy S Some White House and by stoking more demand with $1,000 per phone Trump campaign officials superhigh prices. 125 caught up in investigations of His 1899 book, “Theory of Projections Europe 100 North America 750 Russia’s electoral meddling are the Leisure Class,” made him South and struggling to pay their legal famous in his time and more 75 Central America bills, prompting them to create than a century later his ideas Global 500 Asia Paciﬁc legal defense funds, liquidate are embodied in products like 50 personal accounts and explore Hermès handbags, Bugatti Middle East and Africa 250 other sources of financing. cars and Patek Philippe 25 Washington is one of the na- watches. tion’s costliest legal jurisdic- Now Apple and Samsung 0 0 tions, with many lawyers are testing whether the social 2008’10 ’20 ’12 ’13 ’14 ’15 ’16 ’17 charging upward of $1,000 an commentator’s theory on

hour, and several Trump asso- what has come to be known XINHUA/ZUMA PRESS Sources: IHS Markit (total); BayStreet Research Inc. (price) ciates have been contacted in as the “Veblen good” can Apple CEO Tim Cook introduced theiPhone X on Sept. 12. THE WALL STREET JOURNAL. connection with multiple ongo- work for one of the most ing investigations, from Con- common of all consumer X, with 256 gigabytes of stor- said Mr. Haines, comparing tion appears to be a growing not simply price. gress to the special counsel’s products—the phone. age, will cost 19% more than smartphones to what hap- factor in the economics of While some new iPhones office. The gambit is striking be- last year’s most expensive de- pened with the auto indus- smartphones. The market re- that look different will be Former Trump campaign cause prices tend to fall in vice, the iPhone 7 Plus, with try, where luxury cars with search group NPD, which bought to show off, he doesn’t aide Michael Caputo, who testi- technology and products be- the same memory. high prices became a status tracks sales of new iPhones, think anyone is sitting inside fied in July before a closed- come obsolete fast. In this symbol as car ownership be- finds spikes in sales volumes the company’s headquarters door hearing of the House In- case, though, it just might pple and Samsung have came commonplace. when new phones are thinking: How do we create telligence Committee, said in work in its own way. found themselves here Apple has made the case launched. The biggest spikes that phenomenon? an interview he has spent Typically, raising the price A partly by necessity. that the technology in its came for iPhones that were “They’re focused on mak- around $30,000 on legal bills. of a good lowers demand for Smartphone makers are run- new phone justifies the the most visibly distinct, such ing the best phone in the He said he liquidated a college it. If beef becomes too expen- ning out of new customers. price. Chief Executive Tim as 2014’s iPhone 6, the model world,” Mr. Dediu said. fund he had set up for his sive, people will buy more Data from IHS Markit esti- Cook said the iPhone X will in which Apple changed the daughters, including one who is chicken. mates there are just under feature “more powerful tech- shape, enlarged the device utting out an iPhone 8 15 years old. Mr. Veblen’s theory posits 100 smartphones per 100 peo- nologies than we’ve ever put and raised prices by $100. and an iPhone X at the “My retirement account is that some consumers want a ple in the U.S. and about 92 in an iPhone before.” The iPhone 6 “made it ob- P same time suggests next,” Mr. Caputo said, estimat- product even more when the smartphones per 100 people That includes a host of new vious, even at a quick glance, Apple is trying to create a ing that paying a Washington price rises because the ex- in Europe. (Many people own components and features, in- which consumers had the lat- prestige factor, said Eliza- attorney to represent a witness pense broadcasts status, taste more than one phone.) By cluding a 5.8-inch organic est and greatest device when beth Currid-Halkett, a pro- at one congressional hearing and wealth. 2020, there will be about 84 light-emitting diode display, a they pulled out their phone to fessor at the University of costs around $40,000. He said By unveiling the new smartphones per 100 people depth-sensing camera system check an email or answer a Southern California who his costs were lower because iPhone X last week with a globally, IHS projects. for facial recognition, and gy- call,” wrote Eddie Hold, the studies consumer culture. he hired a lawyer in upstate price of $1,000, Apple Inc. is To generate more revenue roscopes and accelerometers president of Connected Intelli- “They’re clearly trying to New York where he lives. pushing the envelope even the big smartphone makers for augmented reality—a plat- gence, a group at NPD that demarcate the iPhone X from further than Samsung Elec- increasingly need to push on form that puts virtual images studies mobile technology. the other versions, and surely tronics Co., which unveiled price. of items like an IKEA sofa “You talk to people, and there’s a desire to make it a the $950 Note 8 phone this “They can create a super- onto the smartphone screen you hear this lust for a prod- status good,” she said, noting Some officials have year. Rather than trying to at- premium model and percep- so users can see how it would uct,” said Horace Dediu, an in- that the iPhone X doesn’t ap- liquidated college tract consumers with cheaper tion of superpremium that look in a living room. dustry analyst at Asymco and pear to offer significantly prices, the companies are pushes those buyer types into The components cost an a former Nokia Corp. business greater utility to most con- savings accounts and fighting for customers with the stratosphere,” said Steven estimated $581, up from $248 development executive. “Tech- sumers than the other itera- set up defense funds. expensive price tags. Haines, chief executive of Se- for iPhone 7 components, ac- nology has risen in our lives tions of the iPhone. The starting price of the quent Learning Networks, cording to Susquehanna Inter- to become a reflection of us.” “Are you getting some extra new flagship iPhone X is which advises companies on national Group. The gap sug- Still, Mr. Dediu said the utility out of this good?” said about 50% more than the product management. “This is gests Apple’s profit margins iPhone X isn’t a pure exam- Ms. Currid-Halkett. “I think Paul Manafort, President $650 starting price of last classic product management.” on the new device are slim- ple of Veblen’s theory be- the answer is no. I don’t think Donald Trump’s former cam- year’s iPhone 7. The most ex- Such segmentation is nor- mer than on existing lines. cause demand will be driven a new animated emoji is bet- paign chairman and a target of pensive version of the iPhone mal in mature industries, Still, conspicuous consump- by the device’s functionality, ter functionality. But it’s cool.” Special Counsel Robert Muel- ler’s probe, owes substantial sums in unpaid legal bills to his former law firm, according to people familiar with the matter. Newer Homes Fare Jason Maloni, a spokesman for Mr. Manafort, declined to comment. A spokesman for Mr. Manafort’s former law firm, Better After Irma WilmerHale, also declined to comment. BY LAURA KUSISTO the Federal Alliance for Safe The sprawling investigations AND ARIAN CAMPO-FLORES Homes, said she has noticed the into Russian meddling in the roofs of older homes look like 2016 election have touched As homeowners in Florida checkerboards with shingles many current and former begin to take stock of the dam- missing. Flying shingles are a White House and campaign of- age from Hurricane Irma, one larger concern because they can ficials. Some, like Mr. Manafort, pattern is beginning to emerge: hit people and property and played major roles in the cam- Homes that were built to the cause additional damage. paign. stricter building codes seem to Research led by Kevin Sim- The Office of Government have fared better. mons, a professor at Austin Ethics recently revisited guid- “The feedback we’re hearing College, looking at insured-loss ance on anonymous and other is positive,” said Rusty Payton, data from 2001 to 2010 found donations to legal-defense chief executive of the Florida that the building code reduced funds in light of the current in- Home Builders Association. windstorm losses by up to 72% terest. “We’re all interested and there and that there were $6 in The family of former na- will be a deep dive. It appears losses saved for every $1 of ad- tional security adviser Mike that it did its job.” ditional construction costs. The Flynn has said it plans to set Bill Wheat, executive vice paper is set to be published up a legal-defense fund, as has president and chief financial of- shortly in the Land Economics Roger Stone, a longtime infor- ficer at home-building giant journal. maladvisertoMr.Trump.He D.R. Horton Inc., said his com- Tom Lykos, a local builder in said on his website his legal ex- pany’s early assessments “indi- the Naples area, said his two- penses include defending him- cate that the more recent build- story house, which was finished self against a private lawsuit ing standards post-Andrew in 2003 and meets the new accusing him of helping Rus- over the last 20 years have held more stringent standards, came sian efforts to distribute infor- up relatively well.” away with nary a scratch from mation hacked from the Demo- The evidence so far is pre- Irma. Mr. Lykos, who is about 5 cratic National Committee. liminary. Insurance companies, miles from the water, said at A lawyer for Mr. Flynn said home builders, city and county one point the wind was enough his client hadn’t announced a officials and local resiliency ex- to topple a large oak tree out- legal-defense fund and declined perts say they are still conduct- side his door. to comment further. Mr. Stone ing assessments of how homes “I know stuff was bouncing didn’t respond to an emailed and commercial buildings built off the house and my house suf- request for comment. to different standards held up fered no damage whatsoever. Mr. Mueller’s office is inves- during Irma. Homes in the Flor- The newer construction really tigating Russian government ida Keys, for example, tend to stood up to the winds,” he said. efforts to influence the 2016 be older and were in the most Others were less lucky, he presidential election and “re- badly damaged areas from the said. A client of Mr. Lykos lated matters,” which includes storm, but until a few days ago whose home was built in the wide-ranging investigations the Keys were inaccessible to 1990s to less stringent stan- into the business dealings of researchers. dards sustained severe damage Messrs. Manafort and Flynn. At Julie Rochman, chief execu- both from wind and flooding, least three congressional com- tive of the Insurance Institute though Mr. Lykos said the home mittees are conducting related for Business and Home Safety, a is also closer to the ocean. He inquiries, and each one involves research organization backed said many older homes took on detailed interviews with nu- by insurers, said it is too early several inches of water but merous witnesses. to say definitively what role the newer homes, which are built Multiple current and former building code played in mini- further above sea level, didn’t. White House officials, including mizing destruction. But she Florida has one of the stron- communications director Hope said early feedback from a re- gest building codes in the coun- Hicks and former chief of staff search team that put in place try. Passed statewide in 2002 Reince Priebus, have retained instrumentation throughout after Miami-Dade County top lawyers in recent weeks, southern Florida during the beefed up regulations in the according to people familiar storm is encouraging. wake of Hurricane Andrew in with the hires. One of the team’s meteorolo- 1992, the new rules required Russia denies any interfer- gists who toured some of the new homes to have stronger ence, while Mr. Trump has affected areas was “very pleas- fasteners that prevent their called the investigations into antly surprised,” Ms. Rochman roofs from blowing off, nails in- possible collusion between his said. “It looks like the building stead of staples and impact-re- campaign and Russia a “witch codes have proved themselves, sistant windows in certain ar- hunt.” that the new construction has eas, which manufacturers —Rebecca Ballhaus done well.” sometimes check by firing and Byron Tau Leslie Chapman-Henderson, pieces of plywood out of can- contributed to this article. president and chief executive of nons at them. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Monday, September 18, 2017 THE WALL STREET JOURNAL. IN DEPTH BOAT

ContinuedfromPageOne finite need,” said Dr. Vallen- tine, who is 70 years old. “Do I look after this one, that 10, this 600?” Some philosophers and eth- icists say the overriding consideration should be to preserve as many lives as possible, even if it requires sacrificing individuals along the way. Others argue that all lives are equally worth saving and it is wrong to deny help to those who need it. In practice, doctors use all kinds of methods to prioritize care in the pandemonium of a catastrophe. The notion of tri- agewasacreationofbattle- field medicine during the Cri- mean War. Some doctors handle the gravest cases first, others favor children over adults, and others stick to a first-come, first-served system, finding it hard to give up on a suffering patient to help others they haven’t yet seen. The decision in front of him reminded Dr. Vallentine of an exam question from his medical training. If he was treating a casualty in a war zone and the area suddenly became dangerous, would he leave, saving himself and letting his patient die so that he could treat more Dr. John Vallentine on the Golfo Azzurro rescue ship. ‘Do I look after this one, that 10, this 600?’ he asks about which migrants to help and in what order. people on another day? He recalled his answer: “I thrashing wildly as crew mem- said I would leave.” That sug- bers tried to lift him onto a gested that the Golfo Azzurro hospital bed in the Golfo Az- should go look for the dinghy. zurro’s sick bay. The consequences here Dr. Vallentine gave Mr. Osei were immediate, not hypothet- an intravenous injection of an ical. He told the captain and anticonvulsant drug while a nonprofit group that operates nurse pumped air into the un- the ship that he wanted to conscious man’s lungs with save the single sick man. They squeezes of a resuscitation agreed. A quick radio call let bag. The doctor also gave Mr. the Italian coast guard know Osei antibiotics and painkillers that the bobbing dinghy would to try to bring down his fever. have to wait. They started bathing Mr. Dr. Vallentine hauled him- Osei with cool water to lower self up a rope ladder draped his temperature, which hovered over the side of a fishing above 104 degrees, and admin- trawler floating alongside his istered oxygen through a mask. speedboat. The vessel, run by Dr. Vallentine suspected Mr. another aid group, was over- Osei had either meningitis, a loaded and out of drinking wa- potentially fatal brain infec- ter. More than 100 migrants tion, or severe heatstroke. The thronged the deck, many prognosis seemed grim either wrapped in foil emergency way, with Mr. Osei’s high fever blankets, their faces tight from and erratic breathing. exhaustion. The doctor climbed up to Dr. Vallentine picked his the bridge and grabbed the ra- way through the crowd to dio to plead with a nearby Ital- reach his new patient, a ian coast-guard vessel. “I need square-jawed man with a a helicopter,” he pleaded. “Can goatee lying unconscious on a you get me a helicopter?” mattress, and knelt to examine Silence. Then the coast Rescued migrants on a boat in the Mediterranean Sea, wearing foil emergency blankets, out of drinking water and exhausted. guard said no helicopters were available. They would see about sending a ship to help. Almost every ship In the Golfo Azzurro’s clinic, between Sicily and the nurse reported that oxygen supplies were running low. The Libya was packed crew located a Swedish coast- with migrants. guard patrol with some spare. A speedboat shot from the Golfo Azzurro to the boat—then waited. About an hour later, a him. Another migrant identi- Swedish naval officer handed fied the sick man as Samuel down a canister of oxygen. She Osei of Ghana and said he was shouted: “We have 700 people 36 years old. on board! We are very busy!” Mr. Osei’s face was con- Even with the oxygen, Mr. torted, his mouth frozen open, Osei’s only hope was an evacu- his neck stiffly extended and ation from the rescue ship. eyes shut. The crew said he “We cannot do anything more had been having increasingly for him,” Dr. Vallentine told frequent seizures, but they had the Golfo Azzurro’s captain. “I been too busy to do much for think really he must go.” him, because four women Dr. Vallentine asked if there aboard were pregnant and thus was any news from the Italian a bigger priority to the crew. coast guard. “They said they Dr. Vallentine rubbed a would call back in one minute, knuckle hard against the but one minute was a lot of stricken man’s sternum to see minutes ago,” a crew leader if he would react. He didn’t. said. “So we are waiting.” Dr. Vallentine and a nurse “Well, I can tell you what’s strapped Mr. Osei onto an or- going to happen if they don’t ange plastic stretcher. Crew get him,” the doctor said. members lowered him over the “Twenty-four, 36 hours, we side and onto a speedboat that will sit here, and he will die.” After taking a sick man onto the rescue ship, Dr. Vallentine tries to lower his temperature, hovering dangerously above 104 degrees. dashed to the Golfo Azzurro. There was no word on the A crewman on the Golfo Az- deflating rubber dinghy. It was zurro worked the radio, trying perhaps 40 miles south of the to find a ship or helicopter Golfo Azzurro. The dinghy had that could get Mr. Osei to a been at sea for more than a day hospital in Italy. There was and was likely packed with only so much they could do more than 100 migrants, the for him in the middle of the crew figured, based on their ex- Mediterranean. perience and the dinghy’s loca- The receiver crackled. “This tion. Such boats are meant to is Italian warship,” a navy offi- carry just a handful of people. cer responded. He ticked “Which means they’re not through questions. What were going to be doing very well,” the patient’s vital signs? Could said Austin Wainwright, the he walk? Then the officer rescue ship’s chief mate, look- asked: “Is this a migrant?” ing at a navigational screen. “Yes, Italian warship, this is The crew and Dr. Vallentine a migrant,” the Golfo Azzurro reckoned another rescue boat crewman replied. The response would swoop in given how from the naval vessel: “We can- many plied these waters. What not do a medical evacuation.” they didn’t know was that al- Italy’s navy said later any most every other ship between offer of help would have re- Sicily and Libya was already vealed its location and put the jam-packed with more than ship at risk. Italy’s navy was 12,000 migrants. interdicting human traffickers, Roughly one-third of all mi- and the leader of an army con- grant boats that set out from trolling much of eastern Libya the Libyan coast sink, according had vowed to use force if its to the owner of the Golfo Az- warships sailed into Libyan zurro, which leases the ship to waters without permission. the migrant-aid nonprofit group The Golfo Azzurro was in in- Proactiva Open Arms. On almost ternational waters. every trip, the crew encounters Below deck, Mr. Osei suf- deflated and abandoned boats. fered a seizure, his arms Most West African migrants Italian coast-guard medics, right, come for the sick man but can’t help him because they have no oxygen. ‘Sorry,’ one medic says. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | A7 IN DEPTH

‘Maybe we should have walked away from this patient. Not put a tube down his throat. Just let him die.’

Dr. John Vallentine, questioning his decision to turn away from a foundering dinghy packed with migrants to rescue one man plucked from the sea EDU BAYER FOR THE WALL STREET JOURNAL Deflated remnants of two recently sunken rubber boats poking above the surface of the Mediterranean. No one knows who was aboard or what happened to their passengers. can’t swim. If the boats carry- “He needs to be in an intensive ple stood silently on the dock Was there any word on the ing them sink, they drown. care unit right now!” Lost at Sea as an Italian doctor and med- cause of death? Was it menin- A commercial ship might One of the Italian medics Conﬁrmed migrant deaths in the Mediterranean Sea between Libya ics rushed aboard. Dr. Vallen- gitis? Heatstroke? The coast have stopped to assist the din- placed her hand on her heart. and Italy. Some rescuers believe the actual numbers are much higher. tine worried Mr. Osei had be- guard’s paperwork said the ghy. But freighters had begun “Sorry,” she said before dis- come brain dead during the man died from affogamento, or swerving around Libyan wa- embarking without Mr. Osei. Cumulative total since 2014 12,866 deaths long journey and hoped he drowning, even though he ters to avoid encountering en- “Thanks, kids, for nothing,” through Aug. 27 would get treatment for cere- hadn’t. There would likely be dangered migrant craft and the doctor said, standing on 12,000 bral damage. no autopsy. The doctor walked the obligation under maritime the deck. He prepared to light “Will you at least give this out on the deck for a smoke. law to help them. a cigarette as the coast guard 10,000 man a CAT scan?” he asked the The Golfo Azzurro went Golfo Azzurro crew mem- pulled away. “All this for one Italian doctor. The man shook back to work. Several days bers were now banking on person. And there are thou- 8,000 his arm in a so-so wave, mean- later, the ship reached Libyan finding someone to evacuate sands out there.” ing maybe, maybe not. waters, near the spot it had Mr. Osei so they could turn Dr. Vallentine started to 6,000 The Italians bundled Mr. been racing to reach the de- back toward the search zone. question his decision. “Maybe Osei into a waiting ambulance flating dinghy. But the Italian coast guard we should have walked away 4,000 and raced away. A church In the distance, crew mem- told the rescue ship to go from this patient. Not put a group brought Dr. Vallentine a bers spotted the deflated rem- north and meet a cutter that tube down his throat. Just let 2,000 beer. He drank it and went to nants of two recently sunken could take care of Mr. Osei. him die,” he told the crew. his cabin for the night. rubber boats poking above the The captain set a course that What could they do now? 0 In the morning, Dr. Vallen- surface of the sea. No one led in largely the opposite di- So much time had passed they tine climbed up from his cabin knows who was aboard the rection of the dinghy’s last figured someone else would 2014 2015 2016 2017 to speak to the Italian coast boats or what happened to known location. have reached the dinghy. They Source: International Organization for Migration THE WALL STREET JOURNAL. guard on the radio. He wore their passengers. Neither din- The rescue ship and Italian had also committed to seeing the same wrinkled, gray shirt ghy had the spray paint marks coast-guard cutter met about through Mr. Osei’s case. cause of the amount of energy None of the crew expressed he had on when called to the that are usually added after a three hours later. Two coast- The only option left, the involved in this operation for regret. “It doesn’t matter if it’s Golfo Azzurro’s bridge more rescue. The only sign of life guard medics in white biohaz- crew decided, was for the one person, but we chose to do one or 1,000. We are here to than 24 hours earlier. was a flock of birds pecking at ard suits boarded the Golfo Golfo Azzurro to take Mr. Osei what’s right for this man,” Dr. save lives,” said a rescuer Mr. Osei had been flown by something in the water. Azzurro to fetch Mr. Osei. to Lampedusa, an Italian is- Vallentine told crew members. whose arm was tattooed with helicopter to Sicily, the coast Dr. Vallentine, the rescue Then they realized he needed land six hours further north. A “We should think that this a mermaid. guard reported. He died in an ship’s doctor and crew mem- oxygen. They didn’t have any. helicopter could take him from man represents every man.” Near midnight, the Golfo ambulance taking him from the bers passed around binoculars. “We wrote emails about this all there to a hospital. “I feel a lit- “At least we gave him a Azzurro pulled into port in landing pad to the hospital. They stared at the rafts in si- morning!” Dr. Vallentine said. tle responsible and sad be- chance,” said the nurse. Lampedusa. A few dozen peo- Dr. Vallentine’s face fell. lence.

wsja_20170918_a007_p2hw261000_0_a00700_1______al2017_w-opt.crop.pdf 1 17-Sep-17 19:12:07 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Monday, September 18, 2017 THE WALL STREET JOURNAL. LIFE&ARTS

ART REVIEW Mirror of a Kaleidoscopic Culture

With 80 exhibitions at 70 venues, ‘Pacific Standard Time: LA/LA’ hopes to reshape art history from a Latino perspective

BY PETER PLAGENS

Los Angeles THE U.S. is the second-largest Spanish-speaking country in the world. Latinos are a plurality in California, with about 45% of the population in the state’s eight southernmost counties and just a tick under half the population of Los Angeles County. Glenn Phillips, curator at the alternative space LAXART, says, “We are more similar to Latin America than we are to Europe.” Small wonder then that the deputy director of the rich and influential Getty Foundation, Joan Weinstein, admits that the purpose of “Pacific Standard Time: LA/ LA,” the Getty-sponsored panoply of cultural events, aims to flip “the history of modern and contemporary art, beginning with the Latino perspective.” Will it work? one is tempted to ask. Sure. But that answer could get torn to shreds in the thickets of identity consciousness (what’s “good” to an older Anglo critic might be irredeemably bad to, say, a younger Latino artist), and cultural politics (down the road, huge sums of money and public support are at stake). Suffice it to say that enough of PST LA/LA (those initials cutely standing for For instance, it took me about Carlos Almaraz’s ‘Crash in Phthalo Green’ (1984), above, Daniel Joseph Martinez’s full-scale reprise of the Unabomber’s “Latin America” and “Los Ange- three hours total to travel from cabin, ‘The House that America Built’ (2004-17), below, and Sergio Allevato’s ‘California Flora,’ bottom les”) is worth looking at to over- the small first part of “How to come the fact that this third itera- Read El Pato Pascual: Disney’s tion (the first tackled the New Latin America and Latin Amer- York establishment’s neglect of ica’s Disney” (through Jan. 14) at West Coast modern art; the sec- the MAK Center for Art and Archi- ond concerned architecture) tee- tecture (housed in a vintage Ray- ters on the edge of dysfunctional mond Schindler house on the near gigantism. West Side) to the much bigger sec- Just how Brobdingnagian is this ond section at the Luckman Fine PST? It consists of 80 exhibitions Arts Complex on the campus of rolling out during September at 70 California State University, Los An- venues in a 120-mile radius from geles, in East L.A., and then back downtown L.A., and will result in across town to lodgings. But the 60 catalogs. The chronological 30 miles at an average of 10 mph span reaches from pre-Columbian were worth it. treasures to performance art from, The works in both venues riffed well, right now. The ethnic spread cleverly on Donald Duck (as we includes Chinese artists living in know him), a curious avatar for a the Hispanic Caribbean and ra- curious “cultural imperialism” (a cially Japanese artists residing in term tossed around a lot during Lima. Exhibition topics include the PST’s opening days). One story has U.S.-Mexican border (“Bridges, not it that an artist in the employ of walls” might as well be offered as Diego Rivera giving a lecture on afreetattooateveryshow), Mexican art to Disney workers dis- whether craft can be fine art, and played an image of a wide-eyed queerness among Chicanos. (A lan- pre-Columbian duck. Fast forward guage note: “Chicanos” seems to to Disney’s “Saludos Amigos,” a have made a comeback as a desig- postwar propaganda film for the nation for Americans of Mexican Good Neighbor policy, then to all

descent, but the wannabe trend to the cheerful Mexican pop-culture FROM TOP: MUSEUM ASSOCIATES/LACMA (2); SERGIO ALLEVATO; THE ESTATE OF MARTÍN RAMÍREZ/COURTESY RICCO/MARESCA GALLERY de-gender the likes of “Latina” and and advertising appropriations, “Latino” with “Latinx”—pro- and finally to current artists on they were depicted (choose “Found in Translation: De- nounced “Latinex”—gains little both sides of the border having your adjective: quaint, objec- sign in California and Mex- footing in PST.) cynical fun with the Disney fowl, tified) by mostly European- ico, 1915-1985” (through April LA/LA will also stage a plethora and you have one leg of PST’s leit- born photographers; official 1). As I said to someone with of musical and theatrical perfor- motif—inevitable and desirable hy- doings from the Eva Perón the museum, if there were one mances at the Disney Concert Hall, brid culture. era; the horrors of the junta exhibition to which I’d like to the Hollywood Bowl, and CalArts’ If there’s one exhibition that in the 1980s; and big, full- back up a lift-gate truck at Redcat theater downtown. A roster tells the story of how things got color art-gallery fare from midnight, it’s this one. of events not included is probably this way, it’s the Getty’s own today. The same tale of con- Of the 14 shows I managed shorter, and given the godawful “Photography in Argentina, quest/exploitation/resistance to view (see “traffic,” above), traffic in Southern California, any- 1850-2010: Contradiction and and social comment with a the foregoing six get a thumbs body planning to see all the PST Continuity” (through Jan. 28). certain postmodern glamour up. A couple of others— shows should think of leasing an The almost 300 pictures include to it is told in other PST LACMA’s retrospective of the apartment. images of indigenous peoples as shows, but—if you have the Chicano expressionist painter patience to stand and look at Carlos Almaraz (1941-1989) and that many photographs on the Museum of Contemporary walls—the Getty’s show tells Art’s look back at the sculpture it most fully. and conceptual art of the Bra- “Radical Women: Latin zilian-born (1942) Anna Maria American Art, 1960-1985” Maiolino—are less than stellar (through Dec. 31), at UCLA’s because the work doesn’t merit Hammer Museum, has generated ponent of exhibited art? The quite the vast space it’s given. the most early buzz. This is proba- Getty’s $16 million in grants to (The LACMA show runs through bly because it gives women in the participating institutions plus Dec. 3, MOCA’s through Dec. 31.) audience reason to cheer (for rec- more from big commercial part- To anybody but a publicist, that’s ognizing many female artists pre- ners and the venues’ own budgets a pretty good batting average. And viously unknown in the U.S., and ought to provide a little. For my the overall cultural upside to PST for documenting their severe so- money, the exhibition that most LA/LA probably includes increased cial and political struggles). And fills that bill is the Institute of attention to and attendance at because it gives the sort of men Contemporary Art, Los Angeles’s such smaller showing spaces as who’ll pay serious attention to breathtakingly uncomplicated in- the Angels Gate Cultural Center such a big and demanding show stallation, in its new East L.A. down in San Pedro, and the Tor- (120 artists and lots of film, video converted-warehouse space, of rance Art Museum in the South and installation, with an emphasis “Martín Ramírez: His Life in Bay Area. on didactics over aesthetics) cause Pictures, Another Interpreta- That said, PST’s extreme diver- to reconsider practically every- tion” (through Dec. 31). sity (each exhibitor was given cu- thing in their lives. Ramírez (1895-1963) came to ratorial near-carte-blanche) ap- The Los Angeles County Mu- the U.S. as a young man to find proaches incoherence; other than seum of Art’s “Home—So Differ- work on the railroads. Unem- the Spanish language, it’s hard to ent, So Appealing” (an early ployed in the Great Depression, find a unifying factor. The Getty’s opener up only through Oct. 15) he was picked up as a vagrant president, James Cuno, said at attempts something of the same and thrown into a typically cruel the opening press conference sociopolitical critique, but its few mental hospital. In the 1940s, the that PST LA/LA represents a wow moments—such as veteran art he made from melted crayons “moment when art history provocateur Daniel Joseph Marti- and burnt matches on formats changed.” Not quite. PST LA/LA nez’s most recent full-scale re- patched together from paper cups is a huge Baroque cathedral, not prise of the Unabomber’s cabin and package wrapping was dis- a whole Renaissance. (titled, in scolding obviousness, covered and saved from trashing “The House America Built,” and by a psychiatrist. Ramírez’s stun- painted in Martha Stewart col- ning (there’s no other word) Pacific Standard Time: LA/LA ors)—don’t entirely mitigate the drawings, which combine inge- Various dates and locations; for exhibition’s somewhat chaotic nious “outsider” figuration with program information visit pacificstan- morphological variety. Still, passionately dizzy patterns, are dardtime.org “Home” is essential on anybody’s both heartbreaking and inspiring. PST tour. Closely following ICA LA’s show And what of pure pleasure— in the beauty category is Mr. Plagens is an artist and writer Martín Ramírez’s ‘Untitled (Horse and Rider With Frieze)’ once thought to be a default com- LACMA’s self-explanatorily titled in New York. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | A9 LIFE & ARTS

WEEKEND CONFIDENTIAL | By Alexandra Wolfe Ron Chernow’s New Book

The historian behind Broadway megahit ‘Hamilton’ takes on Ulysses S. Grant

BY NOW, it’s well known that Ron Chernow’s biography “Hamilton” inspired the megahit Broadway ‘I approach show. He has doubts about the historic research musical potential of his latest sub- with an almost ject, Ulysses S. Grant. “I don’t boyish zest,’ Mr. think Grant’s life moves to a hip- Chernow says. hop beat,” the 68-year-old Mr. Chernow says with a laugh. He thinks it’s more suited to a movie. Then again, he adds, “I can’t hon- estly tell you that I thought Alex- ander Hamilton’s life would have been a musical, so maybe I’m not the best judge of that.” Mr. Chernow’s new book, “Grant,” out on Oct. 10, chronicles the life of the Civil War general and 18th president. During his two terms, from 1869 to 1877, Grant oversaw the creation of the Justice Department and the ratification of the 15th Amendment, granting Af- rican-American men the right to vote. His administration also was marred by scandals such as the Whiskey Ring, in which liquor dis- tillers conspired with Treasury De- partment officials to avoid taxes. By the end of his life, Grant was bankrupt. After being diagnosed with cancer, he signed a deal with his friend Mark Twain to publish his memoirs to help provide for his wife after his death. Widely considered to be the best book written by a president, the two-volume set has sold more than 300,000 copies and remains in print. Mr. Chernow calls it “incomparable” as a military memoir. When Mr. Chernow was in the early stages of his own book, a friend asked how he could write a great biography of someone who had already written a great autobiography. “It kind of stopped me dead in my tracks,” he says. But Mr. Chernow realized that he could do what he did in his other biographies—including

“Washington: A Life,” and “Titan,” AXEL DUPEUX FOR THE WALL STREET JOURNAL about John D. Rockefeller—which was to “zero in on the silences.” friend, the historian Harold Holzer, “Titan” (1998). He moved on to own defects,” he says. “It’s not my “It’s been a constant contest for Grant left a lot out of his own who argues that Confederate mon- writing about politicians, he says, job to pretty them up.” wall space between the books and memoir, such as his alcoholism and uments should be removed but not because he felt that he “had pretty Mr. Chernow usually spends the art,” he says. His wife, Valerie, business failings. His personal life destroyed. He thinks that instead much said what I was going to say about twice as much time research- died of cancer in 2006. was also politically complicated. of keeping them in front of court- about the economic and financial ing a book as writing it. He types Mr. Chernow isn’t sure what His in-laws supported the Confed- houses and city halls, where they development of the United States.” up his research on a computer, so he’ll write about next, but he may eracy while members of his own glorify the Confederacy, they Alexander Hamilton, he says, that he has it backed up, and then veer away from full-scale biogra- family were staunch abolitionists. should be placed in “more neutral “was the perfect transitional fig- prints out the individual entries on phy. “I’ve become known…for doing “It’s telling that so many people settings” such as historical societ- ure for me, because there would paper with perforated edges that these cradle-to-grave biographies, I’ve met who are extraordinarily ies and museums. be enough financial history to in- he can tear into 4-by-6-inch cards. and they’re terribly difficult to do,” knowledgeable about the battles of Mr. Chernow studied English lit- terest people who had read the (He was inspired to use index cards he says. “You have to master an the Civil War…know little or noth- erature at Yale and the University earlier books and, at the same by Vladimir Nabokov, who wrote immense amount of information.” ing about Reconstruction,” says Mr. of Cambridge, and he credits this time, it would get me into a new his novels on them.) He then files In his down time, he has now Chernow. And that period “is re- education for his novelistic style. “I century,” he says. “I would get to the cards chronologically and in- seen “Hamilton” dozens of times ally…the second act of the drama.” approach historic research with an write about constitutional law dexes them. His research on Grant and has very much enjoyed his The events of Grant’s life remain almost boyish zest that I may not and foreign policy, military his- fills some 25,000 cards packed into surprise success on Broadway. His relevant today. “In the last month have had if I had spent years tory, all things I had never dealt 22 boxes, all stacked up in the of- theater friends couldn’t believe or two, I have watched in amaze- studying it in college,” he says. with before.” fice of his Brooklyn brownstone un- his luck. “They said, ‘This isn’t re- ment that the Civil War and Recon- His first three books were about He has no interest in simply glo- der a big abstract painting. ally fair! You’re involved in one struction have moved onto the eminent families in banking and rifying his subjects. “I have a very His house is covered with con- show in your life, and it’s ‘Hamil- front page of newspapers,” he says. business: “The House of Morgan” strong belief that great historical temporary art, which he’s been col- ton’!” he says. “Clearly I had not Mr. Chernow agrees with his (1990), “The Warburgs” (1993) and figures carry the weight of their lecting for the past two decades. paid my dues.”

ARCHITECTURE REVIEW The Cornell Tech campus on Roosevelt Island, left; inside the Bloomberg Center, below CAMPUS OF more polished, clad in shiny glass. The archi- tects are at pains to describe how the high- performance materials are still very energy efficient, but somehow all that glass looks THE FUTURE old school. The building’s bulbous bow tie shape makes for plenty of corner offices, a real BY JULIE V. IOVINE consideration considering the high-profile corporate partners the school wants to coax into collaborating on R&D with students. New York The double-height lobby streaming with sun- THROUGHOUT its checkered history, Roose- light is like an indoor vineyard: A wide stair velt Island has reflected prevailing notions rises alongside wood-paneled terraces with about social and economic fixes. The 148-acre bench-seating and chairs for more of that in- isle—on the East River between Manhattan formal hobnobbing. The six floors—many and Queens—has been home to a prison, a wood planked like a ship’s deck—are chocka- smallpox hospital, an asylum, an almshouse block with well-upholstered conference and a 1970s experiment in affordable middle- rooms and pullout spaces. On the roof, pho- class housing. The latest project is also of its tovoltaic panels produce enough solar en- time with its focus on entrepreneurial inno- ergy to share with the Bloomberg Center so

vation and constant social mingling. FROM TOP: IWAN BAAN;it MATTHEW CARBONE FOR MORPHOSIS can achieve its net-zero status. Conceived by the Bloomberg administra- Rising above the Ed Koch Queensboro tion, Cornell Tech was envisioned as a $2 bil- a building that aims to This is in accordance Bridge on the south, the 26-story dorm lion, 12-acre campus devoted to the marriage achieve the new holy with the new mantra building with 500 beds for students and 16 of academia and business in the hopes of en- grail of energy usage: that accidental encoun- apartments for faculty is the most visible of gendering a new class of tech-savvy biz kids. net-zero. ters trigger the most the three new buildings, and the dullest to Phase One was officially completed on Sept. Beneath the prow creative ideas. There’s a look at with its file-cabinet gray sheen. 13, with the first three buildings (costing are a cluster of built-in ground-floor café, open Still, it is a significant landmark, the tallest $700 million) up and running for some 300 outdoor seats and ta- to the public, with a structure built according to the strict inter- students and (to date) three corporate gi- bles. A path sweeps lovely terrace overlook- national code known as passive house stan- ants—Citigroup, Two Sigma Investments and past the other two ing the East River. Tech dards with its emphasis on energy savings Ferrero, an Italian chocolate company. buildings—a dorm and labs and open-plan of- through extreme insulation. With an air- The new campus buildings and their land- office-cum-incubator— fices have few parti- tight façade wrapped in prefabricated metal sculpted surrounds set a new bar for archi- into an open plaza and tions, and there are con- panels, the so-called House has condensers tecture. Priorities have been upended. While lawn with a seemingly ference rooms of every on every floor for circulating fresh and re- expensive new campus structures usually endless array of seating size and transparency, moving stale air. It consumes 60% to 70% make bold visual statements, at Cornell Tech arrangements and table down to what looks like less energy than similar-sized structures, a sustainability and landscape, not ambitious options. The buzz po- an actual cone of silence commendable and important achievement form making, lead the way. On approach, the tential is palpable. to enable private phone even if students living there will care only curvaceous prow of the Emma and Georgina Beneath the lawn and calls. A conference room about the spectacular views from the roof- Bloomberg Center (named for the daughters plaza, there’s a rain-har- is decorated with one of top lounge. of the former mayor, who kicked in $100 vesting tank and 80 three WPA murals res- Roosevelt Island has for too long been an million) bulges energetically, barely con- geothermal wells. Gar- cued from the demol- outlier in the East River with its rickety aer- tained by a lid of 1,465 photovoltaic panels dens perform bio-filtra- ished Goldwater Hospi- ial tramway and skinny subway platform. floating above as a roof-top canopy. At four tion services; pavers absorb overflow. tal. Glass, a notorious excess heat magnet, is When the campus is completed by 2043, stories and 160,000 square feet, the In fact, the grounds designed by James used only where it counts (ground floor, there will be 2,000 students and 10 build- Bloomberg Center—designed by Thom Corner Field Operations feel more developed main circulating stair) and sensors monitor ings. Cornell Tech puts the island at the Mayne of Morphosis—is wrapped in an ani- than the interiors of the Bloomberg Center. every space to predict and control artificial heart of where ideas in business and archi- mating metal screen scalloped in soup-lid- That’s intentional. The interior spaces are all light usage. tecture are headed. size scales that turn a golden or lagoon-ish loosely organized with minimal finishes The other two buildings are less visually green hue depending on how they catch the made out of tough no-frills materials—con- remarkable. Designed by Weiss Manfredi, Ms. Iovine reviews architecture for the light. It helps to cool and minimize waste at crete, sheetrock—and an emphasis on flow. the 235,000-square-foot Bridge building is Journal. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Monday, September 18, 2017 THE WALL STREET JOURNAL. OPINION REVIEW & OUTLOOK Here’s What Really Solar Power Death Wish Happened to Hillary illions of dollars in U.S. taxpayer sub- like trackers that orient toward the sun. sidies haven’t made America’s solar To turn sunshine into energy requires in- U.S. Republicans have about one-third of Senate Democrats, B issues, but Democrats released his “Medicare for All” pro- industry competitive, and now two verters that translate the energy captured on have them too. Witness posal to nationalize health care. These companies want to make it a solar panel into something Subsidies aren’t enough. the two individuals are the ascendant voices in the party. even less so. Suniva Inc., a that can be sent on the elec- who dominated last Yet there are few of them, because bankrupt solar-panel maker, Now solar-panel makers trical grid. While there are week’s news—and who their agenda is highly unpopular. and German-owned Solar- want U.S. tariffs. fewer than 1,000 jobs in U.S. POTOMAC conveniently represent Mr. Sanders was an unexpected World Americas have peti- panel manufacturing, some WATCH the left’s most crip- force in the primary, though mostly be- pling problems. cause he wasn’t Hillary. Sanders sup- tioned the U.S. International 260,000 jobs rely on access to By Kimberley Hillary Clinton is porters resent this argument, and Trade Commission (ITC) to imported panels. A. Strassel impose tariffs on foreign-made crystalline Not even the investment firm financing the again everywhere, tout- claim the only reason his agenda didn’t silicon photovoltaic cells. Suniva legal team for the petition believes in ing her new memoir triumph is because the DNC robbed Solar cells in the U.S. sell for around 27 the future of U.S. solar panel manufacturing. and adding to the list of who and what him of the election. If so, why did Ber- cents a watt. The petitioners want to add a new SQN Capital Management, which is owed an es- are to blame for her loss: Joe Biden, nie’s people and ideas fail spectacularly Bernie Sanders, Barack Obama, James everywhere else on the ballot? duty of 40 cents a watt. They also want a floor timated $51 million by Suniva, wrote a letter Comey, Jill Stein, Vladimir Putin, Julian In Wisconsin Mr. Sanders cam- price for imported panels of 78 cents a watt in May to the Chinese chamber of commerce Assange, Anthony Weiner, sexism, mi- paigned for Russ Feingold, who prom- versus the market price of 37 cents. In other indicating that the 201 case would go away if sogyny, the New York Times, lazy ised a $15 federal minimum wage, an words, they want the government to double the a Chinese company bought Suniva’s $55 million women, liberal activists and the “god- end to trade deals and free college. cost of the main component used in the U.S. in manufacturing equipment. forsaken Electoral College.” All she’s Mr. Feingold lost to Republican Sen. solar industry. Solar-electricity prices could Higher prices for panels will also hurt utili- missing is climate change. Ron Johnson. rise by some 30% if the ITC says they’ve been ties that have invested in renewable fuels. In Hillary’s take on “What Happened” injured by foreign competition—a decision is an Aug. 21 letter to the ITC, Diane Denton of has unsurprisingly unleashed another Voters simply found her due by Friday—and the Trump Administration Duke Energy wrote that over the past five years round of analysis about her mistakes— goes along with the tariff request. Duke has invested heavily in solar and has Wisconsin, deplorables, email. These unappealing. They rejected sorts of detailed postmortems of failed U.S. manufacturers won countervailing and plans for more. But Duke needs “access to solar campaigns are popular, but they tend Bernie’s ideology too. antidumping duties against imports from CSPV modules at globally-competitive prices” to obscure the bigger reasons for fail- China and Taiwan in 2012 and in 2015. But now so it can “provide cost-competitive solar power ure. In this case: The Democratic Party they’re resorting to Section 201 of the Trade to our customers,” Ms. Denton wrote. saddled itself with an ethically compro- In upstate New York, in a white, Act of 1974 because they don’t need to show The ITC hasn’t investigated a 201 trade case mised and joyless candidate, because it working-class district, Mr. Sanders en- they are victims of dumping or foreign-govern- since the Bush Administration slapped a 30% had nobody else. dorsed Zephyr Teachout, who railed ment subsidies. They only need to show that tariff on steel imports in 2002. That fiasco cost Hillary spent eight years planning against bankers and lobbyists, fought imports have harmed them. an estimated 200,000 jobs in U.S. steel- her first presidential bid, and the next fracking and Citizens United, and op- The harm is real but that’s due to changes consuming industries before the Administra- eight warning Democrats not to get in posed trade. Republican John Faso in the marketplace. The U.S. solar industry has tion dropped the tariffs 18 months later. the way of her second. The Clinton beat her for the open seat by eight discovered that its comparative advantage lies Solar tariffs would be another destructive Foundation was erected to serve as percentage points, on a promise to kill bank and Rolodex, and to enable the Dodd-Frank. not in making panels, a basic product, but in exercise that benefits a handful of Suniva and Clintons to retain their grip over the Democrats wouldn’t even vote for adding value to imported cells and modules. SolarWorld investors at the expense of every- party. And that party was committed to Tim Canova, the man who primaried This involves making and installing racking or one else—including the rest of the solar indus- a Clinton coronation, right up to Mr. Mr. Sanders’s archenemy, Debbie Was- framing systems and incorporating innovations try. This is protectionism at its worst. Sanders’s cheeky assault. serman Schultz. Mr. Obama aided Mrs. Clinton’s am- An extraordinary 79% of Colorado bitions by decimating his party. By the voters said no to a ballot initiative for time Barack Obama finished his eight ColoradoCare, the state version of Mr. The Price of Free Speech at Berkeley years in office, his party held 65 fewer Sanders’s universal health-care pro- he University of California at Berkeley’s dents’ “physical and mental safety.” House seats, 14 fewer governorships posal. This in a state that Hillary Clin- new chancellor, Carol Christ, has done We wish Berkeley’s students were hearing and controlled 30 fewer state legisla- ton won. Liberal Vermont pulled its T tures. It had turned a once-filibuster- own single-payer plug in 2014. In Cali- a democratic service by defending free from conservatives who seek to persuade more proof Senate majority into minority fornia, Mr. Sanders endorsed and cam- speech on campus. But who would have thought than merely provoke like the Milo Gang. The status. The big-tent Democratic coali- paigned for Proposition 61, which was that protecting speech would be so expensive Berkeley Patriots, the student group behind Free tion shriveled to a coastal, progressive designed to impose prescription drug in the place where the Free Speech Movement Speech Week, have yet to provide Ms. Christ minority, wiping out a generation of price controls. It went down to sub- began in the 1960s? with signed speaker contracts or the basic infor- Democratic politicians and most of the stantial defeat in a state Mrs. Clinton The former Breitbart writer Ben Shapiro mation campus police requested, though the party’s political diversity. won by 30 points. spoke unimpeded Thursday night on campus, deadline is fast approaching. The success of Mr. And so the party nominated perhaps Progressives will argue that all they but the university had to spend $600,000 to Shapiro’s speech showed Ms. Christ’s good faith, the only Democrat in the country who need to elect a Bernie Sanders or an provide adequate security. The university relied and the Berkeley Patriots need to show some could rival Donald Trump in unpopular- Elizabeth Warren is the right way of on officers from all 10 campuses in the Univer- mutual respect. ity—and beat him in untrustworthiness. pitching their “populist” policies of sity of California system. Before the speech, Ms. Christ has said she sees the cost of secu- Mr. Sanders refused to go after Mrs. free health care or price-controlled Clinton on her ethical baggage, even drugs to the white working class and Berkeley’s City Council rescinded a ban on the rity as a worthwhile investment, though she la- though it was her biggest weakness and independents. But so far they’ve been police use of pepper spray for the first time in ments that $600,000 for one event is “certainly despite how glaringly obvious was the unable to sell them even to bright blue two decades. Berkeley largely kept the peace, not sustainable.” Berkeley has an operating risk that her foundation and server states. And this wishful thinking ig- though nine protesters were arrested, including deficit, and we wonder if students who are un- scandals would hobble a general-elec- nores that even if voters supported four who allegedly carried banned weapons and willing to entertain contrarian arguments real- tion campaign. The parties gave the some of those provisions, they’d also one suspected of battering a cop. ize they may be raising their own tuition. Or country a choice between two unpopu- have to swallow a progressive agenda The security costs will grow later this perhaps they’re attending on federal student lar people, and the country disliked her that includes an energy crackdown, a month, when the university hosts Free Speech loans they never plan to repay. more. The real question is how Demo- retreat from the terror fight and the Week. The arriviste Milo Yiannopoulos claimed How far we’ve come in 50 years when the crats rebuild a party whose senior lead- culture of identity politics. in a news release that the lineup will include New Left began the Free Speech Movement to ers in the House boast an average age of Republicans have failed to unite or Steve Bannon, Ann Coulter, Pamela Gellar and fight the establishment. Now the not-so-new 72 and which has almost no young, ex- govern or pass their biggest priorities. perienced up-and-comers. But the political analysts are setting other controversial speakers he handpicked. left wants to use violence to shut down free Which brings us to Mr. Sanders, the themselves up for another surprise if Already, more than 200 faculty are calling for speech no matter the cost. Ms. Christ deserves symbol of Democrats’ other big prob- they ignore the big reasons Democrats a boycott, claiming the event imperils stu- thanks for standing up to the thugs. lem. Last week the senator, flanked by lost this election, and what comes next. One Last ObamaCare Try LETTERS TO THE EDITOR .S. Senator Lindsey Graham admits that Heritage Action waded in to note that earlier American Consumers: For Richer or Poorer? when a defense specialist like him feels versions of Graham-Cassidy didn’t repeal all of U Martin Feldstein writes that: many consumer goods comes from compelled to roll out a health-care bill, ObamaCare’s taxes—as if they would vanish if something has gone wrong— Congress does nothing. Sen. most households’ “standard of liv- Asian jobs replacing U.S. jobs. Thus, Graham-Cassidy beats ing is increasing more rapidly [than this lower cost is a double-edged and that’s an understatement Mike Lee (R., Utah) usually fol- estimated by the government] be- sword: better for those Americans for the Republican failure to the status quo as a lows Heritage, though Sen. cause those wages can now buy new who remain employed in good jobs, repeal the Affordable Care Act. crucial deadline nears. Lee’s office said he’s “encour- and better products at little or no but worse for Americans whose jobs The question is whether a last- aged” by what he’s seen but has extra cost. The government’s mea- were replaced by Asian workers with ditch effort by Sen. Graham yet to make a final decision. sure of real incomes gives too little significantly lower wages. and a few colleagues repre- The question for Members weight to this increase in what ELLERY BLOCK sents an improvement over the ObamaCare sta- is: What is the alternative? The budget procedure take-home pay can buy” (“Ameri- Westerville, Ohio tus quo. The answer is yes. that allows the Senate to address the law with a cans Are Richer Than They Realize,” Sen. Graham and Sen. Bill Cassidy (R., La.) last 51-vote majority expires on Sept. 30. ObamaCare’s op-ed, Sept. 11). It would also seem that low mort- week unveiled a bill that would start to unwind exchanges will continue to deteriorate, and Demo- While I agree that the government gage-interest rates for the past 20- should consider changes in the cost plus years have allowed consumers ObamaCare. The legislation repeals the individ- crats will blame Republicans for every premium of consumer goods when assessing to afford, with a modest increase in ual and employer mandates and the 2.3% medi- increase from here to November 2018. The law will changes in Americans’ standard of income, much grander homes than cal-device tax. The bill replaces money spent on require who knows how many patches and bail- living, Mr. Feldstein’s potential they otherwise would have. tax credits and Medicaid expansion with block outs in coming years, and consumers will continue methodology doesn’t take into ac- BILL BONEWITZ grants to states, which would allow Governors to face higher prices and fewer choices. count the fact that the lower cost of Tucson, Ariz. to experiment with insurance reforms. Another Lamar Alexander (R., Tenn.) is trying to work selling point is that a rejiggered formula will a deal with Patty Murray (D., Wa.) to mitigate divvy up federal dollars more equitably, as states some of the consumer pain for next year. The Trump’s Pivot? His Job Is to Get Things Done such as California and Massachusetts haul in an idea is to swap subsidies for insurers for more outsize share under current law. state flexibility. Yet Democrats have so far been Regarding Peggy Noonan’s “Trump more complicated, nonideological, Block grants are certainly progress: The unwilling to relax the state waiver process to al- Finally Pivots—but Will It Last?” do-something voters. Go along to get (Declarations, Sept. 11): Ms. Noonan along with Schumer-Pelosi Demo- Obama Administration’s Medicaid expansion en- low for more than de minimis changes. The is surprised that President Trump crats doesn’t seem like what most rolled working-age, childless adults above the GOP’s negotiating hand will not become stronger waited so long to pivot toward Demo- conservative Trump supporters had poverty line, and the feds footed most of the bill as the election approaches. crats to get something done in Wash- in mind. to bait states to participate. The program reim- The best path forward is to pass Graham- ington. She believes that the presi- Yes, GOP dysfunction in Congress bursed at a much lower rate for the disabled and Cassidy, and improve or amend it later as neces- dent’s core supporters are is reason to send a Plan B message, children, the traditional Medicaid population. sary, or perhaps consider discrete bills to mend complicated, postpartisan Americans but we “deplorables” in Trumpland This has resulted in some states undercovering health-care markets. This has the added political who were delighted to see him do an aren’t looking for a permanent pivot the most vulnerable. advantage of at least fulfilling some facsimile of end run around the McConnell-Ryan back to the glory days of 2009-10 Graham-Cassidy is less ambitious than the the “repeal and replace” promises Republicans GOP establishment so that he could when Reid-Pelosi Democrats helped Senate’s ObamaCare replacement that failed have made to voters for seven years. make a deal with the Schumer-Pelosi President Obama ram through a bud- over the summer, and we could go on at length One lesson for moderate Republicans is that Democratic establishment. get-busting spending bill, Obama- Sticking a thumb in the eye of the Care and a massive number of new about its limitations. But the proposal at least no dilution or revision will placate the left, GOP establishment might feel good regulations. takes most decision-making out of Washington which has panned Graham-Cassidy as evil and to the Trump base, but does Ms. Only media insiders in Beltway and puts a spending cap on Medicaid and heartless sight unseen. The press is suggesting Noonan seriously think that most Land, Big Apple Land and La La ObamaCare. Reform-minded Governors would that the timeline is too quick to ram through Trump supporters—who gave Repub- Land think Trumplanders savor a have the chance to create showcases for insur- such a consequential bill, but then the Afford- licans majorities in the House, Sen- new Trump-Schumer-Pelosi politi- ance-market innovation. able Care Act re-engineered one-sixth of the ate and two-thirds of state legisla- cal realignment. As with past health-care failures, Republi- economy in the middle of the night on Christmas tive chambers and voted in 34 GOP MATT JOHNSON cans can only lose two Members. Sen. Rand Paul Eve in 2009. governors—did so in the hope that Charlotte, N.C. (R., Ky.) is as persuadable as Chuck Schumer, The Cassidy-Graham bill appeared on the Sen. Chuck Schumer and Rep. Nancy and the same may be true of Sen. Susan Collins same day as a “Medicare for All” proposal from Pelosi would wind up with more Letters intended for publication should power? Didn’t America just have a of Maine. Sen. John McCain (R., Ariz.) shot Sen. Bernie Sanders (Ind., Vt.), and don’t be sur- be addressed to: The Editor, 1211 Avenue president who got along fine with of the Americas, New York, NY 10036, down the last repeal attempt on dubious objec- prised if voters start looking to the left for solu- Democrats in Congress, treated the or emailed to [email protected]. Please tions about an open process. Some think Sen. tions. Graham-Cassidy is the best remaining GOP establishment with disdain and include your city and state. All letters Lisa Murkowski (R., Alaska) is winnable, but chance the GOP has to make incremental prog- got things done? are subject to editing, and unpublished she seemed amenable to the last bill—until she ress on health care, before they face voters next Most Trump supporters are con- letters can be neither acknowledged nor returned. bailed at the final hour. year having to explain their failure. servatives, even if there is a base of For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | A11 OPINION Under Anesthesia, Everything Was Beautiful

good hair day.” “Why do you do elected and seen since the Obama that?” she asked. era as the true leader of the West. “I “Well, it’s a habit,” he said. “When had to wrestle, too, with the ground- I was young I had this thick brown breaking leadership of Golda Meir DECLARATIONS hair that went down my brow like a and Margaret Thatcher, of Indira By Peggy Noonan swoop, and I looked like a Kennedy Gandhi and Cory Aquino. America is and it was beautiful. Then it started to not more backward than their na- saw this: The exhausted get thin and gray, and it made me feel tions, the engine of its heart is not woman on the shelter cot was old, and old is weak.” driven by ugly isms.” surrounded by stressed children “Not for me, honey,” she said. Yes, she noted, women in national Iwhen Melania came over, bent “Does it take a long time to do?” life, especially in this technologically down and asked, “How are you “About 20 minutes. After the and culturally brutalist age, have it doing?” The woman said “Well—hur- shower, I comb, blow-dry, tease it a harder. Only a fool would say other- ricane.” She realized who she was little, finish the blow-dry, then a lotta wise. But she wondered if there talking to and got flustered. “Those spray.” wasn’t something deeper: “Part of the are nice shoes,” she said. They were “Why don’t you not do that?” challenge is that voters expect not flat ankle-boots, the kind you wear on “It’s kinda my brand.” less from women, but more. They the street or the park, only of the fin- “You got a new brand,” she said. have higher expectations, because

est leather. “Thank you,” said Melania. “You’re president. Be normal.” He GETTY IMAGES deep down they think more of women. She saw the woman’s soggy sneakers. paused and said: “I was actually think- It is a compliment, though a difficult “What size do you wear?” she asked, ing of that.” my plane. Louise—we’re flying com- lenges, what gets in the way of our one. Golda is the toughest, Indira the “Oh, 9,” said the woman. “They got She told him she used to be a hair- mercial.” They booked seats on the meeting them, and how we can get most ruthless, Thatcher the most un- bigger with the kids.” dresser. She said she’ll come to the next flight to France and went to around what gets in the way.” wavering. They elect a woman when White House and cut his hair. He duty free, where they bought the best She was unsparing. She said that they can tell she’s better than the turned, gestured; an aide ran over. champagne and placed it in her Her- after 30 years at the top of American guys. And not enough saw me as bet- My American dream “My beautiful friend here is coming to mès bag. They wrote a note: “Every life she knew the biggest, most dan- ter than the guys. They saw me as one made me feel proud, see me next week with scissors. Ar- soldier on leave deserves a honey- gerous shift in our political reality of the guys—one of the leadership range it.” He kissed the old woman on moon, every bride deserves cham- came “when the American people class that sank us.” like there’s hope for the forehead. She gave a wave. “Good- pagne.” The couple discovered the began to detach from those at the She didn’t blame sexism for her our political class. bye, big boy.” The press was sur- bag on the plush leather seat just as top, for the simple reason that loss, she said, because she didn’t rounding the FEMA guy with the up- the pilot was saying: “Please be they’d come to understand the top want to demoralize girls or discour- date and missed it. seated and buckle up, we’ve got spe- had detached from them.” She cov- age women. And she didn’t want to This happened just before the cial clearance.” ered the landscape—wars, political scapegoat boys and men: “They have Melania took off her boots and put Mnuchin story got cleared up. The Also at this time Hillary Clinton’s money-grubbing, bad faith, immigra- no cultural champion now, no one’s them on the woman’s feet. She did Treasury secretary had not asked for book came out and it was transcen- tion, globalism. officially on their side, they’re cultur- this in a way that was turned away a government plane to take him on his dent—a book of historical heft, of “Those at the top,” she wrote, “pro- ally out of style. But they need en- from the press, so they wouldn’t see. honeymoon. His request got all bol- depth. She was modest. No, humble. ceeded as if they were unconcerned couragement too.” The woman’s daughter said, “Mommy, lixed up in transmission, but there And she loves America like you with what was being asked of the mid- On the book tour she let everyone they’re nice.” Melania took from her was a paper trail. It turned out he was wouldn’t believe. dle and the bottom. My candidacy got into her appearances free. America bag a pair of white sneakers, put them waiting at the airport with his new “I know what you expect, a blame- caught in the crossfire—understand- saw her anew. People listened. She on, and said, “Oh good, these are so wife when he saw a guy in Army fa- shifting revenge fest,” she wrote. “But ably, because I had long been at the was redeemed and appreciated. comfortable.” tigues comforting a young woman in that would be a book of what I’ve top, and many saw me as oblivious.” It made me feel proud, like there’s They talked some more and Mela- a white and yellow dress. She was cry- come to see as ‘political little-ism’—a Cynics expected she would blame hope for our political class. nia left and the mother looked to her ing. Mr. Mnuchin sent over an aide to book that reduces everything to per- her 2016 loss on the fact that she is a That is what I saw this week. kids and said, softly, “These are the find out what’s wrong. sonalities and polls, operatives and woman. America is sexist, misogynis- I should note—this part is true— first lady’s shoes.” The guy in fatigues had literally excuses. Smallness is killing us. I have tic—in its dumb way, cannot imagine that I saw much of it while anesthe- Donald was with an old woman in just flown in from Kabul. He and the been a major political figure in the a woman as president. tized for a minor surgical procedure. a wheelchair. She was spunky and woman had just married, in a chapel late 20th and early 21st century in “To be candid,” she wrote, “I had For an hour afterward, even knowing funny and he loved her. She gestured down the street. They’d been bumped America. My elective career is over. that in my first draft.” Sheer hon- it was either a fantasy or a dream, I toward his head and said, “It looks from their honeymoon flight to Ber- Here I tell you what I know about the esty left her reckoning with Angela felt so . . . hopeful. Cheerful. Proud. I nice today.” He said, “I’m having a muda. Mr. Mnuchin said: “Give them age we’re in, its most crucial chal- Merkel of Germany, democratically giveittoyou. Let’s Get Rational About Disaster Risk Houston has been through sensible reform of the federal heavily to invest in damage-mitiga- After the 1927 Mississippi flood, contingent liability that taxpayers celebrated by econ- flood-insurance program plus the de- tion measures. goes the story, flooding became effec- have assumed on behalf of hurricane- omists for its exper- velopment of a global reinsurance in- Let’s admit this ain’t going to hap- tively an “uninsurable” hazard. This is prone communities—or, for that mat- iment in real-estate dustry, some of it based on promising pen. No disaster was more foretold probably a false moral. Many more ter, the earthquake risks that we freedom—no zoning so-called catastrophe bonds. than Hurricane Katrina or the subse- people are exposed to flood risk in a hardly ever talk about. laws to stop devel- Now we wonder if it can even be quent storms that have afflicted the given year than actually suffer flood At the time of Katrina, Robert Litan BUSINESS opers from throw- ameliorated. Anyone whose labors Gulf and Atlantic coasts. Yet the urge damage. That alone should make pos- of the Brookings Institution and Ed WORLD ing up commercial take him among America’s distin- in Washington to rationalize risk sig- sible a reasonable insurance market. Liddy, then of Allstate, led just such a By Holman W. and residential guished elder statesmen discovers nals proved shallow and short-lived. And modern mortgage lenders would call. Their proposal was the despair of Jenkins, Jr. properties right that they all have one thing in com- Law professors Omri Ben-Shahar and insist on such coverage. Even the fed- those of us who knew a competitive, next to each other. mon: a house in Florida. An unfortu- Kyle Logue, in the Stanford Law Re- eral flood-insurance program, which private insurance market would do a The result, critics nate truth is that the value of their view, last year wrote: “We call has largely crowded out private flood superior job of sending proper risk say, is sprawl, and proponents point to Florida coastal property would weather-related catastrophes ‘natural insurance, could be run on a commer- signals. But it increasingly seems bet- a property market that provides af- plummet if they were made to bear disasters,’ but the losses due to severe cial, profit-making basis—it just isn’t, ter than nothing—nothing being ever- fordable housing to keep Houston’s the cost of their life-style choices. A weather are the result of a combina- because U.S. Congress can’t break it- bigger ad hoc federal expenditures to economy bubbly. lot of ritzy communities would tion of natural forces and often impru- self of the habit of subsidizing affluent rebuild what natural disasters knock Now some are blaming Houston’s shrink drastically. dent, shortsighted human decisions coastal dwellers. down, without serious examination of lack of regulation for Hurricane Har- Sun and fun would still attract induced...by questionable govern- Each storm is followed by a re- the taxpayer equities involved. vey’s flood disaster, because too many visitors, but property owners and ment policies.” building blowout that guarantees that Just maybe, once we have formal- properties were built without proper businesses would face a new set of After the televised tragedies of 9/11 the next storm will be more costly ized these estimates and shocked drainage. Never mind that Miami, St. incentives. Either build a lot stur- and Katrina, a Lloyd’s of London insur- than the last. At least we are getting ourselves at the risk we not only ex- Augustine, Jacksonville and other dier and higher up. Or build cheap ance executive wondered, “If govern- better at protecting the lives of the pose ourselves to as taxpayers, but Florida cities all have aggressive zon- and disposable, and expect to shoul- ment hands out checks, do people need people whom we induce to place the risk to life and limb we expose ing yet weren’t spared from Hurricane der the cost of totally rebuilding ev- insurance?” He might further have themselves in harm’s way. our fellow citizens to by encouraging Irma two weeks later. ery decade or two. Faced with sky- asked: With government assuming the But maybe we could start being them to build in dangerous places, What’s really missing is proper risk rocketing insurance rates, entire risk, why would businesses and home- honest with ourselves. Let’s see in the our country might begin to rational- pricing through insurance. Many of us communities would have to dissolve steaders ever think twice about build- budget of the U.S. government a realize its risk-taking with respect to pre- once believed this could be solved themselves or tax their residents ing in the path of future hurricanes? istic estimate of the now-unrecorded dictable natural hazards. Keep Your Eye on the United Nations’ Fat Kleptocats By Jay Newman tries oversee a labyrinthine system of a former speaker of Brazil’s lower Sure, there’s no way to track any Force defines as “politically exposed financial institutions that inadver- house of Congress, was convicted on specific dollar from the waitress’s persons”—officials whose power l Capone has much to teach the tently enable international crime. corruption charges and sentenced in wallet to the ruler’s pocket, but presents a heightened risk of corrup- A would-be pursuers of today’s Corruption costs the world $2.6 March to 15 years. The case was built money is fungible. A dollar donated tion. These lists include politicians, global kleptocrats. Big Al eluded trillion a year, according to one esti- around Mr. Cunha’s lifestyle. He by the Group of Seven spends just judges, generals and executives of capture for murder and mayhem so ef- mate cited by the Organization for earned $120,000 a year but reportedly the same as a dollar collected in Bra- state-owned companies, plus their fectively that frustrated prosecutors Economic Cooperation and Develop- spent $40,000 during one nine-day va- sília or Luanda. friends and families. came up with a novel way to jail him: ment. This endemic problem cannot be cation to Miami. Convincing the world’s financial for tax fraud after a lifestyle audit. lost on institutions like the World While Messrs. Cunha and Silva were cops to demand such strict standards How did a man without a bank ac- Bank and International Monetary lining their pockets, the Inter-Ameri- With world leaders in New will be difficult. Paul Wolfowitz made count, who never filed a tax return, af- Fund, yet they continue to hand bil- can Development Bank lent Brazil at York, spotting corruption fighting corruption a priority during ford a $39,000 phone bill? lions of dollars to nations whose lead- least $11 billion. Since 2000, the World his brief tenure as the World Bank’s In government and business, life- ers are on the take. Why not put these Bank has poured more than $30 billion is as easy as watching president from 2005 to 2007, suspend- style audits are central to detecting jokers through an audit? into the same rabbit hole. Transpar- a ‘public servant’ hop ing loans to India and debt-relief talks fraud. When an employee’s spending Brazil has so many crooks—con- ency International ranks Brazil 79th with Congo. But the system, including exceeds his income, basic math reveals victed and alleged—that you need a out of 176 countries on corruption. into an idling Bentley. donor countries, rebelled against Mr. illicit enrichment. scorecard: One ex-president, Lula da Then there’s Angola, which Trans- Wolfowitz and went back to business The modern world is awash in Ca- Silva, was convicted in July on corrup- parency International ranks 164th. The as usual when he departed. pones, but the most brazen don’t run tion charges. His successor, Dilma World Bank has granted the country Every dollar sent to corrupt coun- Perhaps average citizens can help brothels, guns or moonshine. They run Rousseff, was impeached last year and more than $1.7 billion since 2000, and tries also liberates local taxes for other shrink the problem of tracking cor- countries. Many even get generous fi- removed from office. Her successor, the IMF another $1.4 billion. Neither use—or misuse. Poor farmers don’t ruption. Today it’s feasible, as never nancial support from American tax- Michel Temer, was formally charged in group seems interested in investigat- know or care whether their new road before, to mobilize the crowd to item- payers. Far from turning a blind eye to June with taking bribes, though he de- ing how the daughter of President is built with capital from a state- ize what world leaders are spending. this corruption, the wealthiest coun- nies the accusations. Eduardo Cunha, José Eduardo dos Santos, who has owned monopoly or taxes withheld This week the perfect opportunity ruled Angola since 1979, became what from waitresses in Manhattan. But will be at hand, as thousands descend Forbes calls “Africa’s richest woman” corrupt politicians do care, deeply. on New York for the United Nations (net worth $3.5 billion). Paying for local infrastructure with General Assembly. PUBLISHED SINCE 1889 BY DOW JONES & COMPANY The daughter, Isabel dos Santos, foreign money allows them to claim The uninitiated might be forgiven Rupert Murdoch Robert Thomson hasn’t been accused of corruption, but credit for good works and to liberate for thinking the U.N. meeting’s pur- Executive Chairman, News Corp Chief Executive Officer, News Corp it can’t be bad for business that the cash for their own use. pose is conspicuous consumption, as Gerard Baker William Lewis country’s boss is her daddy. “There is International institutions should visiting dignitaries are whisked from Editor in Chief Chief Executive Officer and Publisher no doubt that it was the father who stop funding countries with weak their official jets to Madison Avenue. Matthew J. Murray DOW JONES MANAGEMENT: generated such a fortune,” a former rule of law and endemic corruption. So let’s keep track. Do you see a for- Deputy Editor in Chief Mark Musgrave, Chief People Officer; Angolan prime minister told Forbes in Perhaps the best practical approach eign leader going into Cartier or hop- DEPUTY MANAGING EDITORS: Edward Roussel, Innovation & Communications; 2013. (Ms. dos Santos has denied sug- would be to replicate what the feds ping into an idling Bentley? Take a pic- Michael W. Miller, Senior Deputy; Anna Sedgley, Chief Operating Officer & CFO; Thorold Barker, Europe; Paul Beckett, Katie Vanneck-Smith, President gestions in the media that she bene- did to Capone. The case against Big ture. We can turn the observable Washington; Andrew Dowell, Asia; OPERATING EXECUTIVES: fited from illegal wealth transfers or Al was the most famous lifestyle au- behavior of free-spending politicos Christine Glancey, Operations; Ramin Beheshti, Product & Technology; state financing.) dit of all time. Investigators cata- into hard data. Jennifer J. Hicks, Digital; Jason P. Conti, General Counsel; Neal Lipschutz, Standards; Alex Martin, News; Frank Filippo, Print Products & Services; When Western institutions drop loged his spending on everything Corruption in developing nations is Shazna Nessa, Visuals; Ann Podd, Initiatives; Steve Grycuk, Customer Service; money into the capitals of developing from jewels and custom shirts to cars not a victimless crime, and giving fun- Matthew Rose, Enterprise; Kristin Heitmann, Transformation; countries, they think themselves do- and hotel suites. gible money to shady governments Stephen Wisnefski, Professional News Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International gooders. Instead they’re tools in an un- Given the billions of dollars at makes American taxpayers into dupes. Paul A. Gigot, Editor of the Editorial Page; DJ Media Group: Daniel Henninger, Deputy Editor, Editorial Page principled scheme. Here’s how the stake, donor countries should require When foreign dignitaries take each Almar Latour, Publisher; racket works: German plumbers and the IMF, World Bank and similar in- other out to dinner in New York this WALL STREET JOURNAL MANAGEMENT: Kenneth Breen, Commercial Suzi Watford, Marketing and Circulation; Professional Information Business: New York waitresses pay taxes. Their stitutions to know their customers week, their waitress shouldn’t be the Joseph B. Vincent, Operations; Christopher Lloyd, Head; governments contribute some of that and conduct lifestyle audits of major sucker who picks up the tab. Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head money to the IMF, the World Bank and politicos in recipient countries. Many

EDITORIAL AND CORPORATE HEADQUARTERS: an alphabet soup of other outfits. companies offer databases, some Mr. Newman is a former hedge- 1211 Avenue of the Americas, New York, N.Y., 10036 Those groups funnel money to nations with more than a million names, that fund manager who specialized in sov- Telephone 1-800-DOWJONES with corrupt politicians. track what the Financial Action Task ereign debt. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A12 | Monday, September 18, 2017 THE WALL STREET JOURNAL. LIFE & ARTS

WHAT’SYOURWORKOUT?| By Jen Murphy One Sport, Four Rackets

Jeremy Easterbrook plays racketlon: ping pong, badminton, squash and tennis

WHEN A COACH told Jeremy Easterbrook he’d never be good enough to play badminton in the Olympics, the 28-year-old Cana- dian didn’t give up the game. He just took up three more. “IfiguredifIcouldn’tbethe best at one, I could at least be good at them all,” he says.

Mr. Easterbrook competes in BRENDAN BURDEN FOR THE WALL STREET JOURNAL racketlon, a sport that combines table tennis, badminton, squash and tennis in a single match against the Racketlon’s Roots same opponent. One match can last And Rules more than 90 minutes and a tour- Clockwise, Mr. Easterbrook plays ping Racketlon, the racket-sport nament can consist of three to four pong, squash, tennis and badminton. cousin of the decathlon, is still a matches. “You need to be really Top right, his gear collection. fairly new concept. It started in physically fit but also mentally Scandinavia in the mid-1980s, tough,” he says. “You’re switching when the game was known as from racket to racket in under racket sports, and the Interna- three minutes and have to find the tional Racketlon Federation in Vi- zone in the hardest moments.” enna was formed in 2002. Its Mr. Easterbrook, the co-founder four sets must be played in the and CEO of Index, a Montreal- order from the smallest to the based digital marketing agency, biggest racket and in its appropri- started playing badminton com- ate sport, starting with table ten- petitively at age 15 and in his 20s minutes of yoga-inspired stretches. nis and continuing with badmin- became one of Canada’s top- “Cobra pose is a favorite to stretch ton, squash and ending with ranked players. In 2008, he went out my back,” he says. tennis. Every rally results in a to China for three months to train He practices visualization be- point to the winner of the rally, with a former Chinese badminton fore every match. and the winner of each set is the world champion. “I was in the The Diet player who reaches 21 points. best shape of my life, training six The winner of a racketlon match hours a day, and my coach told me Mr. Easterbrook gained more than is the player who scores the if I trained with him for four more 45 pounds when he was injured in most points in total so it’s possi- years maybe I’d get through the 2012. “I realized my diet wasn’t re- ble to lose three out of the four first round of the Olympics,” he requires different swing tech- commitments.” ally helping me,” he says. “I ate a sets and still win the match. says. “I went home and embraced niques and even footwork. He In 2012 Mr. Easterbrook suf- lot of pizza.” He dropped 20 racketlon.” trains after work from 7 to 10 p.m. fered a torn right Achilles tendon pounds on a low-carb diet to get Mr. Easterbrook was introduced and from 9 a.m. to noon on week- while playing squash. “I was over- to his “happy competition weight” Black Knight Reactor court shoes, to the decathlon of racket sports ends. Mondays and Saturdays he training and not taking care of my of 185 pounds. He has a protein which he uses for Racketlon. He the previous year. He had learned plays squash and badminton; on core and back,” he says. “That led shake in the morning followed by also has a pair of Adidas Barricade to play tennis as a child from his Tuesdays and Thursdays he plays me to compensate with other mus- grilled chicken and vegetables, and ($100) tennis shoes for table ten- grandfather, a tennis pro, and had table tennis, usually at Club Atwa- cles,” he says. The injury required a protein shake around 3 p.m. He nis. He plays table tennis with a dabbled in squash. Table tennis ter, a prestigious racquet sports surgery, three months on crutches tries to avoid restaurant meals and DONIC Waldner Senso Carbon was new so he joined a table ten- club in Montreal. He trains at Ping and another three in a boot. Mr. instead cooks at home. blade ($60) covered in Andro Ras- nis club, hired a coach and started Création, a Montreal ping-pong Easterbrook estimates that it took “I cook a lot on the barbecue ant rubber ($35). He has two Black entering local racketlon tourna- club owned by his coach and for- a year to fully recover and regain and love making chicken tagine Knight HEX-Force 360 badminton ments. He was a natural. mer tennis table star, Alain Bour- his fitness. He’s since become a with a big salad,” he says. He has rackets, which cost $240 each, He is ranked second in Canada bonnais. Wednesdays, Fridays and stickler for cardio and strength, another protein shake before bed. three Quicksilver LT squash rack- and 47th in the world. Sundays are dedicated to fitness which he rarely did before. During a tournament, he has a big ets at $160 each, and two Babolat and tennis, which he plays at the On fitness days he does one breakfast of cereal, fruit and coffee Pure Aero tennis rackets, priced at The Workout Carrefour Multisports center in hour of cardio, usually the station- and then tries to eat some type of $200 a piece. He prefers Schildk- Mr. Easterbrook says one of the Laval. His girlfriend occasionally ary bike, followed by one hour of protein every hour when he is not rot 3 star balls for table tennis, biggest challenges of racketlon is plays him in squash and badmin- strength exercises such as bench playing. His guilty pleasure is beer. Black Knight Tru-Bounce squash finding work-life balance amid an ton. “She’s not a racketlon athlete, press, dumbbell squats, plank pose balls and Wilson US Open tennis intense training schedule. Each but she is encouraging and also and medicine ball twists, which The Gear & Cost balls. He wears Black Knight Sti- sport works different muscles and very understanding of my training work the obliques. He ends with 15 Mr. Easterbrook paid $100 for his letto eye protection ($30). Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 30 Beer, slangily -15 123 45678 9101112 Down -10 31 Machu Picchu 13 14 15 16 1 Lollipop-licking native -5 TV cop TALIM 0 17 18 19 32 Ho Chi Minh Trail 5 2 Classic arcade Beijing locale 10 brand Seoul 20 21 22 33 “Sure, count me TokyoTToky 15 3 Perk (up) 23 24 25 26 in!” Shanghaihhg 20 NewD Delhilh 4 University of 35 Like draft beer 25 27 28 29 30 Riyadhh Arizona location Kolkatalkk t TaipeiTaT ip 30 38 Ernie with two Karachih 35 31 32 33 34 35 36 5 Subj. for many British Open Hong Kong Hanoi immigrants wins Bangkokk k Manila 37 38 39 Warm 6 Leaves for a 41 Showy fragrant 40 41 42 43 44 Cold drink? flowers KualalLaLa Lumpurp 7 Shows signs of Stationary 45 46 47 48 43 Like tissue paper Singaporeg p neglect 49 50 51 52 53 44 Colleague of Showers 8 Vaulted church Jakartak Athos and 54 55 56 57 recess Porthos Rain 58 59 60 61 9 World’s largest 46 The absolute T-storms retail chain minimum 62 63 64 10 “Yeah...well...” 48 Down at the end Snow 65 66 67 11 Current events 50 Test for fit Sydneyyd eyy Flurries 12 Dame of 51 Island known for Melbourneb ILK CONCEIVED | By Zhouqin Burnikel comedy Ice its hot dogs 14 Keanu’s “Speed” Global Forecasts Today Tomorrow Today Tomorrow Across 26 Yoga student’s 47 Birthday event? 52 First name in City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W co-star beauty products s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Penn of roll 49 Rock’s ___ Geneva 16 6 sh 13 6 sh Ottawa 28 15 c 25 16 c 19 Sniper garb 53 Tread heavily t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Hanoi 33 26 pc 33 27 sh Paris 16 9 sh 16 7 sh “Designated 27 Zellweger of Fighters Havana 31 22 pc 31 21 s Philadelphia 28 20 pc 25 21 c Survivor” “Chicago” 50 Layout choices 21 Left dumbstruck 54 Baker’s need Today Tomorrow Hong Kong 33 27 s 32 27 pc Phoenix 38 23 s 38 23 s City Hi Lo W Hi Lo W Honolulu 31 24 pc 31 24 pc Pittsburgh 28 16 pc 28 17 pc 4 Colorful 28 Major blood 54 “All in the Family” 24 Event with a 55 Give a hoot Amsterdam 16 10 t 17 10 sh Houston 32 24 t 32 25 pc Port-au-Prince 34 23 pc 35 23 pc aquarium fish vessels star baton 56 Director Anchorage 13 9 sh 13 8 pc Istanbul 29 21 s 29 22 s Portland, Ore. 17 12 r 17 12 r 9 Lose intensity 31 Epic poem of 57 No more than 25 Bloodsucking Preminger Athens 35 24 s 34 24 s Jakarta 34 23 pc 34 24 pc Rio de Janeiro 28 20 s 28 20 s pest Atlanta 30 19 s 30 21 s Johannesburg 24 11 s 26 13 s Riyadh 41 25 s 40 25 s 13 Handle on an the Trojan War 58 Magic or juggling 59 Melber of Baghdad 45 27 s 45 26 pc Kansas City 26 18 r 30 21 pc Rome 22 16 pc 21 12 t elevator? 28 Burdened beast MSNBC Baltimore 28 18 pc 28 18 c Las Vegas 35 22 s 33 20 s Salt Lake City 28 15 s 17 9 pc 34 Early August performance, say Bangkok 33 26 t 34 26 t Lima 20 15 pc 19 15 pc San Diego 24 18 pc 24 19 pc 15 Exhaust, as babies 61 Digging 29 First-rate 60 ___-Magnon Beijing 31 15 s 30 13 s London 17 9 pc 17 10 pc San Francisco 23 15 s 23 16 s resources 36 Commandments Berlin 16 6 t 17 8 pc Los Angeles 26 18 pc 25 18 pc San Juan 32 26 sh 32 26 sh 62 Lake that feeds Previous Puzzle’s Solution Bogota 20 9 c 19 9 pc Madrid 25 11 s 26 12 s Santiago 23 9 pc 17 7 r 16 All tucked in pronoun the Niagara River LOWBI D ABAB DAY Boise 19 7 c 16 9 c Manila 33 27 t 33 26 t Santo Domingo 33 24 pc 33 24 pc 17 Home to more 37 Ho Chi Minh Trail 63 Joe who OV I EDO PARA OWE Boston 22 17 c 20 17 r Melbourne 21 8 sh 13 5 sh Sao Paulo 28 18 pc 28 16 pc RANDOMERROR MEN than half of all locale ELK MET RUBLE Brussels 15 9 t 16 8 sh Mexico City 25 14 pc 25 14 pc Seattle 15 11 r 16 10 r managed the Indonesians BENCH SQUARE Buenos Aires 22 12 s 23 16 s Miami 33 25 s 32 25 pc Seoul 26 18 s 25 16 t 38 Works hard for Yankees for SOCAN I AGE MFAS Cairo 34 24 s 34 24 s Milan 21 10 pc 23 9 pc Shanghai 31 21 pc 30 22 c 18 Disruptive 12 seasons PHONECALL PADS 39 “Furthermore...” LID OIL EKG VOA Calgary 16 1 pc 14 1 pc Minneapolis 19 13 pc 24 19 pc Singapore 31 25 c 30 26 t student, at times Caracas 32 24 pc 31 25 pc Monterrey 33 22 pc 34 21 pc Stockholm 14 7 pc 12 4 sh 64 Come off as ASOF AMNI OTOMY 40 Government SEMI FSU NOI RES Charlotte 29 18 s 30 19 s Montreal 28 17 pc 26 16 pc Sydney 26 16 s 22 10 s 20 Skybox venues 65 Brooklyn HEELER MAGDA Chicago 24 18 c 26 19 pc Moscow 21 10 pc 14 8 pc Taipei 32 24 s 35 25 s overthrow 22 Gold medal hoopsters LALAW IDO ELF Dallas 34 24 pc 35 24 pc Mumbai 31 25 t 29 26 r Tehran 30 19 s 30 18 s 42 Uber alternative JOE SPEEDOMETER Denver 29 12 s 30 9 pc Nashville 30 19 pc 30 21 pc Tel Aviv 29 21 s 30 22 s champions at the 66 Big Mac ART I PAS MENTEE YESEELSENDURE Detroit 25 17 pc 24 17 sh New Delhi 36 26 s 35 26 t Tokyo 30 22 s 27 21 s 2016 Olympics 43 Fills to the gills component Dubai 42 31 s 41 31 s New Orleans 32 24 t 31 23 s Toronto 2516sh2516c The contest answer is ST. BASIL’S CATHEDRAL in Dublin 16 7 pc 17 11 pc New York City 26 19 c 24 19 r Vancouver 16 10 r 16 10 r 23 Compliment 45 Quaking trees 67 “That’s right” Moscow. The letters DOME can be found in nine

Edinburgh 14 6 c 16 10 pc Omaha 24 17 r 30 19 s Washington, D.C. 28 20 pc 28 21 pc s grid entries, indicating St. Basil’s Cathedral, which Frankfurt 16 7 t 15 7 sh Orlando 31 22 pc 32 21 pc Zurich 15 5 sh 13 6 sh Solve this puzzle online and discuss it at WSJ.com/Puzzles. features nine large domes.

Have Your Say.

Become a WSJ Opinion Leader to engage in forums, discussions and surveys that help shape the Journal. wsjopinionleaders.com

©2017DowJones&Co.Inc.Allrightsreserved.6DJ5617 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com TECHNOLOGY: POLITICAL PRESSURES BUILD AT FACEBOOK, OTHERS B4 BUSINESS&FINANCE

Yen vs. Dollar 110.8710 À 0.58% Hang Seng 27807.59À 0.11% Gold 1320.40 g 0.32% WTI crude 49.89 unch. 10-Year JGB yield 0.021% 10-Year Treasury yield 2.202% Fosun Revives India Generics Deal Online

BY JULIE STEINBERG makers last month. quest for comment. KKR’s stake has more than Pharma’s generic injectables Insurer AND PREETIKA RANA New Delhi last year relaxed Fosun, one of China’s most doubled in value. are used to prevent blood its investment rules, allowing acquisitive conglomerates, is Chinese drug companies are clots and treat schizophrenia. A unit of China’s Fosun foreign companies to acquire buying 38.4% of the Gland increasingly looking abroad It isn’t clear how Fosun will ZhongAn Group has agreed to acquire up to 74% in local drugmakers Phama stake from U.S. private- for new technologies as Bei- fund the deal, which is its first 74% of Indian drug company without government approval. equity firm KKR & Co., and jing pushes homegrown firms acquisition in India. Chinese Gland Pharma Ltd. for $1.1 Fosun’s previously proposed will acquire the rest from to become global players in companies have been facing billion, resurrecting a deal $1.3 billion deal, announced in other investors, according to a the health-care industry. The pressure from Beijing to pre- Sets IPO that was previously blocked by July last year, represented the securities filing. The deal is total value of Chinese out- vent capital from leaving China, the Indian government. largest-ever Chinese bid for an expected to close in coming bound investments in this sec- though deals that are core to Shanghai Fosun Pharma- Indian company. It was turned weeks, the filing said. A per- tor surged to $7 billion last companies’ main businesses BY CHUIN-WEI YAP ceutical (Group) Co. Ltd. said down by Prime Minister Nar- son familiar with the matter year, when the original Fosun- have generally been permitted. it is planning to buy the stake endra Modi’s government be- said Gland Pharma’s manage- Gland Phama deal was struck, Like Gland Pharma, Fosun’s HONG KONG—China’s first in Gland Pharma, a Hydera- cause authorities didn’t want ment is expected to stay. from $474 million in 2011, ac- two-decades-old pharmaceuti- online-only insurer said Sun- bad-based company that the company to gain access to The deal will enable KKR to cording to Dealogic. cals unit also sells generic in- day it plans to raise up to $1.5 makes generic injectable drugs Gland Pharma’s injectables exit an investment it made as Indian drugmakers domi- jectables, including drugs to billion in an initial public offer- that are largely sold in the U.S. technology, The Wall Street recently as 2014, when it paid nate the global market for ge- prevent bleeding and improve ing that could value the com- Fosun had earlier tried to buy Journal earlier reported. about $200 million for a stake nerics, or copycat versions of cardiovascular circulation. pany at around $10 billion, tap- 86% of the firm, a deal that A spokesman for Mr. Modi’s in Gland Pharma. The price drugs that have lost patent —Yifan Xie ping into rising investor was rejected by Indian policy office didn’t respond to a re- Fosun is paying indicates protection. Some of Gland contributed to this article. interest in the region’s financial-technology sector. ZhongAn Online Property KEYWORDS & Casualty Insurance Ltd., a By Christopher Mims Shanghai-based company co- founded in 2013 by Chinese billionaire Jack Ma, is set to begin a share sale Monday Why There morning in Hong Kong. It named Japan’s SoftBank Group Corp. as a cornerstone Are Never investor in the deal, with a 5% stake in the company. ZhongAn’s biggest share- Enough New holders include Ant Financial Services Group, an affiliate of Mr. Ma’s Alibaba Group Hold- iPhones ing Ltd. As a result of Ant’s ownership structure, Mr. Ma The big let- and several investment entities down from linked to him also hold signifi- Apple’s prod- cant stakes. The insurer’s other uct announcement last Tuesday was news that its most desirable Shanghai-based new gadget, the iPhone X, ZhongAn was co- can’t be preordered until late October and won’t start founded in 2013 by shipping until November. billionaire Jack Ma. Even then, analysts are predicting supply shortages. Dealers in Hong Kong expect to sell the phones at a $300 founders include Pony Ma, the to $400 premium in the first Drones are still chairman of Tencent Holdings weeks they are available. limited in Ltd., and Ma Mingzhe, chair- Shortages of hot new gad- commercial use. man of Ping An Insurance

gets are so common, it is ALEX WONG/GETTY IMAGES Group Co. of China Ltd. The easy to take them for three individuals surnamed Ma granted. This past year INDUSTRY FOCUS aren’t related. alone, Google’s Pixel phone, One of ZhongAn’s biggest Nintendo’s Switch and clas- businesses is selling insurance sic gaming-system reboot, to merchants and buyers for e- and even Apple’s iPhone 7 Drone Firms Clamor for Regulation commerce purchases on Tao- Plus have been thin on the bao, Alibaba’s flagship online ground. Industry proponents in the U.S. are seeking federal approval for broader commercial applications shopping mall in China. The You would think after company also sells insurance years of hard-won experi- BY ANDY PASZTOR tude of 400 feet and within tional regulations are their safety challenges unlike any in policies to Chinese consumers ence, tech hardware compa- sight of operators on the sole means of getting a green the past, industry officials in- that provide compensation for nies could deliver goods Despite White House direc- ground. light for a much broader array creasingly are frustrated. They cracked smartphone screens or when and where there’s de- tives rolling back regulations But for many leaders of a of promising uses. worry that a prolonged regula- delayed flights. mand—especially at Apple, affecting most industries, budding industry that already So from packed conferences tory stalemate threatens to During a recent Chinese on- whose chief executive, Tim drone proponents are clamor- has nearly 80,000 registered to congressional hearings to stifle innovation, sacrifice po- line-shopping festival similar Cook, made his name as an ing for more federal rules as commercial drones in the U.S. FAA-sponsored advisory com- tential American jobs and to Black Friday in the U.S., operations maestro. the way to open up the skies and is projected to have 1.6 mittees, these contrarian hand other countries the lead ZhongAn sold a record 13,000 Are these shortages some for unmanned aircraft. million by 2021, progress is too voices argue that swift federal in evolving market segments. policies per second, the com- kind of Machiavellian mar- The counterintuitive stance slow because the next wave of action is essential for the The status quo will persist pany said. More than 60% of keting play? Calculated risk stems from the fact that until rules is still a year or two off. technology to flourish. “until there are enough ZhongAn’s customers are aged management? Or is it the roughly a year ago, commer- Considering the goal of having Unlike nearly all other busi- [drones] out there pushing the 20 to 35. case that manufacturing mil- cial drones effectively were a single pilot control a flock of nesses, “we want and need FAA to do something differ- “Numbers like that aren’t lions of complex electronic barred from U.S. airspace be- drones from long distance— rules and regulations to un- ent” and the industry’s prod- something that traditional in- gadgets, and distributing cause of safety concerns. Since possibly doing everything from derstand how we can fly ding “rises to the level of surers can imagine,” Chief Ex- them globally, is really hard? then, the Federal Aviation Ad- dusting crops to inspecting drones commercially for ex- bumping everything else out ecutive Chen Jin said Sunday It is likely a bit of all of ministration has given limited railroad tracks—they see the panded operations,” said of the way,” consultant Jim at a press conference in Hong these. approvals for small, remotely FAA’s current boundaries as Gretchen West, senior adviser Williams, former head of the Kong. piloted aircraft weighing as unduly restrictive. at the law firm Hogan Lovells agency’s drone office, said The large sales volumes much as 55 pounds. That is why drone makers, US LLP. during a recent conference. have yet to translate into big Cold Calculation With some exceptions, the operators and many of their While the FAA, the Federal Responses to Hurricane profits. ZhongAn produced a Companies often do force initial package of rules per- would-be customers are buck- Bureau of Investigation and Harvey’s impact on Texas this net profit of $1.4 million in early adopters to wait. This mits operations only during ing the governmentwide trend other agencies struggle with month showcased the indus- 2016 after earning about $488 is because of the increas- daylight hours, up to an alti- toward looser oversight. Addi- legal, technical and public Please see DRONES page B2 Please see IPO page B2 ingly important preorder period, says Asokan Ashok, who was at Samsung Re- search America from 2009 to INSIDE Hurricanes Stir Up Profits for U.S. Refiners 2015, most recently as the director of emerging products and services, and saw BY LYNN COOK go back into service for many of Samsung’s flagship AND BRADLEY OLSON weeks—could see an improve- products go from the lab to ment to their bottom lines. the consumer. HOUSTON—U.S. fuel prices “You’ve got a lot of refiners He says the preorder are poised to remain elevated running at full tilt, and they’re mechanism, where custom- for the rest of the year in the going to make better mar- ers signal their intent to buy aftermath of hurricanes Har- gins,” said Sandy Fielden, an a product before it starts vey and Irma, costing consum- energy analyst with Morning- shipping, provides early data PRIME MINISTER ers billions but providing a star Inc. “Supply and demand that is essential to predict- profit boost to some refining is effectively telling the mar- ing demand for a gadget and OF U.K. DRAWN companies. ket that there’s a big incentive distribution of demand INTO JETS SPAT Harvey knocked out 25% of to produce more.” across its various configura- the nation’s fuel-making ca- In the Midwest, refineries tions—both notoriously diffi- pacity at the height of the hummed at their maximum ca- cult to forecast. BUSINESS, B2 storm’s flooding in Texas. pacities in the days before and The calculus gets trickier More than 12% is still shut, after Harvey hit, according to when the device’s price hits with three plants idle and 11 the U.S. Energy Information

a new high and the company struggling to resume opera- LUKE SHARRETT/BLOOMBERG NEWS Administration. has no precedent to gauge tions. A week later, Irma com- Flooding from Hurricane Harvey at a Houston gas station on Aug. 30. Aggregated across the in- demand, says Mr. Ashok, pounded fuel shortages in the dustry, the boost to profit now chief executive of mo- Southeast, as millions of peo- could went into overdrive in the for months, analysts and econ- margins on fuel is likely to be bile software startup Unfold- ple fled in a mass evacuation wake of the storms, but the omists said. An extended in- sufficient to offset most lost Labs. That is certainly the that emptied gasoline stations. one-two punch of Harvey and crease of 25 to 50 cents a gal- revenue from the refinery case with the $999 iPhone X. A record amount of fuel Irma knocked out millions of lon would translate to billions shutdowns, according to a Apple has “never gone there was pumped out of storage barrels a day of fuel production, of dollars in costs to consum- Wall Street Journal analysis of before,”hesays. AMAZON HOPES tanks in the week ended Sept. rapidly driving up gas prices to ers over the course of 60 to 90 pricing data from FactSet. Apple may well be facing 8, according to federal data, to $2.80 a gallon. The nationwide days, according to federal data Most refiners’ margins its biggest demand-forecast- ITS CULTURE keep East Coast gas pumps average is about 50 cents on U.S. vehicle miles traveled would get a boost because the ing challenge since the origi- TRAVELS WELL working. It was the largest higher than this time last year. and average fuel efficiency. price of the fuel they sell will nal iPhone. While Apple has one-week drawdown in U.S. While some pump prices Higher fuel prices mean re- be higher while the cost of the empirical data on demand gasoline stockpiles since 1990. have drifted lower, increases finery owners—even some crude oil they buy to run Please see MIMS page B3 TECHNOLOGY, B3 Nearly every refinery that could persist in certain areas with flooded plants that won’t Please see FUEL page B2 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Monday, September 18, 2017 THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS & FINANCE

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

A Exxon Mobil...... B2 Ping An Insurance...... B1 Aerogroup F R International...... B2 Facebook...... B3 Renault...... B2 Alibaba Group...... B1 Fiat Chrysler Rovio Entertainment..B5 Alphabet...... B2,B3 Automobiles...... B4 S Altaba...... B4 Ford Motor...... B4 Amazon.com...... B3 Saudi Arabian Oil...... B2 G Ant Financial Services Shanghai Fosun Group...... B1 General Motors.....B2,B4 Pharmaceutical...... B1 A.P. Moller-Maersk.....B4 Gland Pharma...... B1 Social Finance...... B5 SoftBank Group.....B1,B3 Apple...... A5,B1 L Supercell...... B5 B Lattice T Bank of America...... B7 Semiconductor...... A1 Tencent Holdings...... B5 Boeing...... B2 Lyft...... B3 Tesla...... B4 Bombardier...... B2 M Toys ‘R' Us...... B2 C Marathon Petroleum..B2 Travelers Cos...... B4 Canyon Bridge Capital N Trend Micro...... B4 Partners...... A1 Nissan Motor...... B2 U Capital One Financial.B7 O Uber Technologies...... B3 China Zhongwang Holdings...... B5 Oracle...... B3 V Colonial Pipeline...... B2 P Valero Energy...... B2 E PBF Energy...... B2 W Equifax...... B4 Phillips 66...... B2 Wilmer Hale...... A5 INDEX TO PEOPLE CHRISTINNE MUSCHI/REUTERS A Cook, Tim...... B1 Liu Zhongtian...... B5 Boeing has lodged a trade complaint against Bombardier, stating that the company is selling its new CSeries jet too cheaply in the U.S. Ashok, Asokan...... B1 D M B Drummond, David...... B3 Mueller, Robert...... A5 Muilenburg, Dennis....B2 Bezos, Jeff...... B3 G Musk, Elon...... B4 Bird, Colin...... B4 Ghosn, Carlos...... B2 U.K. Drawn Into Jet Spat N C Guterres, Antonio...... A4 Nadella, Satya...... B3 Cagney, Mike...... B5 L S BY DOUG CAMERON The aerospace giant’s push Dennis Muilenburg said in Canada over lumber and dairy Caputo, Michael...... A5 Lam, Wayne...... B3 Sharma, Chetan...... B3 has puzzled analysts because it May after the company lodged exports. Mrs. May has been A Boeing Co. trade complaint could jeopardize a potential $5 its complaint with the U.S. De- drawn into the spat because against Bombardier Inc. has billion sale of Boeing jet fighters partment of Commerce. “We the dispute could affect a fac- BUSINESSWATCH triggered a trans-Atlantic row. to Canada that would help sus- have to have a fair and level tory in Northern Ireland that When British Prime Minis- tain a production line in St. playing field globally.” makes parts for the CSeries. ter Theresa May meets on Louis. Canada broke off talks Industry experts believe Mrs. May relies on Northern Monday in Ottawa with her last month in protest at Boeing’s Boeing is seeking to prevent Ireland’s Democratic Unionist Canadian counterpart, Justin charges against the CSeries. Bombardier from expanding Party to maintain a majority in Trudeau, the Plane makers including its product line and emulating the British Parliament. THE WEEK leaders are ex- Boeing routinely sell new the rise of Airbus SE, which She raised the matter with AHEAD pected to dis- plane models below what they over the past 30 years has President Donald Trump in a cuss ways to cost to make in order to win claimed half the commercial Sept. 5 phone call. Greg Clark, counter Boe- market traction, analysts say. jetliner market. the British trade minister, met ing’s claim that Bombardier is Bombardier’s planned CSeries Bombardier said its jet with Mr. Muilenburg at Boe- selling its new CSeries jet too is smaller than any Boeing jet, competes in a different market ing’s Chicago headquarters cheaply in the U.S. and the U.S. company didn’t segment from Boeing. Execu- last month to press for the Canada and Bombardier make an offer last year on the tives said the dispute isn’t hin- case to be dropped. deny that and say the aero- contract that Bombardier se- dering sales of the jets, though The Commerce Department space company isn’t receiving cured from Delta Air Lines Inc. they haven’t booked a new is expected to make an initial government subsidies. Boeing’s Bombardier has a backlog of CSeries order this year. decision in the week of Sept. claim “is unjustifiable and 360 of the jets, and Delta is The dispute comes amid ne- 25. The U.S. has said it based solely on Boeing’s desire due to take the first of its 75 gotiations over the future of wouldn’t identify potential to limit competition,” a spokes- planes next spring. the North American Free penalties until next year. man for Canadian Foreign Min- “It’s not picking on Can- Trade Agreement and other —Paul Vieira ister Chrystia Freeland said. ada,” Boeing Chief Executive disputes between the U.S. and contributed to this article. DRONES

BLOOMBERG NEWS Continuedfromthepriorpage Shoppers carrying Aerosoles bags in Washington, D.C. The company try’s potential. The FAA issued behind the brand of women’s shoes filed for chapter 11 bankruptcy. more than 125 authorizations spanning various search and GENERAL MOTORS tition, Toys ‘R’ Us has been bur- rescue missions, bridge in- dened with debt from a spections, flood monitoring Strike Threat Looms leveraged buyout 12 years ago. and media flights—some going At Canada SUV Plant The retailer has been in talks beyond what had been deemed with holders of more than $5 acceptable under normal cir- Workers at a General Motors billion in debt to extend 2018 cumstances. Co. sport-utility plant in Canada maturities. Still, the company FAA chief Michael Huerta are threatening to strike unless and its restructuring advisers described it as a transforma- a new labor deal was reached by are considering filing for chapter tive moment, emphasizing Sunday night, jeopardizing the 11 protection in the U.S. Bank- that “every drone that flew supply of the company’s top-sell- ruptcy Court in Richmond, Va., meant that a traditional air- ing SUV model. the people familiar with the craft” was freed up to help GM faced a deadline of 10:59 matter said. save lives and “did not put ad-

p.m. New York time to sign a A Toys ’R’ Us spokeswoman ditional strain on an already REUTERS tentative contract with Unifor declined to comment. fragile infrastructure.” An aerial photo from Aug. 31 shows damage caused by Hurricane Harvey in Rockport, Texas. Local 88, which represents about —Lillian Rizzo By Friday, more than 130 2,450 workers at the company’s and Soma Biswas similar approvals had been particularly in parts of the Corp. already has permission concept of expanding the en- CAMI Assembly plant in Inger- granted over storm-ravaged state still inaccessible to au- to use hundreds of tiny drones velope for operators. In soll, Ontario. AEROGROUP INTERNATIONAL Florida. Working with gov- tomotive traffic. to put on fully automated light speeches, he sometimes lik- A tentative contract “does ernment rescuers and indus- Longer-term, drones are shows as entertainment. And ens the explosion of ideas not appear achievable,” read a Aerosoles Stores try officials, dozens of drone seen as important tools to insurance companies increas- and entrepreneurs to the notice on the union’s website Face a Shutdown teams are assessing areas monitor construction, create ingly are relying on drones to flowering of aviation in the posted Saturday. The union local most in need of assistance maps and check for damage to accelerate processing of home- wake of the Wright Brothers’ has said it wants improved The company behind the and identifying where elec- pipelines or the condition of owner claims. first flight more than a cen- wages and benefits. Aerosoles brand of women’s tricity needs to be restored— cellular-phone towers. Intel Mr. Huerta has backed the tury ago. GM said in a statement Sun- shoes filed for chapter 11 bank- day that it “will work with our ruptcy Friday, looking for a buyer Union partners toward another and planning to close almost all double, according to FactSet. The decline in output is a innovative and mutually benefi- of its retail stores. FUEL Plants where fall mainte- switch for the U.S., which had IPO cial competitive agreement.” Some 74 of Aerogroup Inter- nance was planned, such as in been producing so much gaso- The plant produces the com- national Inc.’s roughly 80 stores Illinois, or that normally sup- line that stockpiles of the fuel pact Chevrolet Equinox. are candidates for immediate through their plants remains ply only their local areas, are reached a three-decade high of Continuedfromthepriorpage —Mike Colias closure, with proceeds of the liq- low. That combination has in- delaying work so they can more than 255 million barrels million in net premiums, which uidation earmarked to help fund creased profit margins for churn out more gas, shipping in February. The refinery out- were up two-thirds from the NISSAN MOTOR a continued sales effort, accord- some fuel makers on the East the extra supply down the ages and continued draws on previous year. ing to court papers. Coast and in the Midwest by Ohio and Mississippi rivers on gasoline stocks leave the U.S. In the first quarter of this Ghosn Makes Bet Intense industry competition, more than one-third. barges to the Gulf Coast. with less of a cushion, which year, ZhongAn suffered a net On Sales Growth an ill-timed brick-and-mortar ex- Some wild-card costs could Several massive fuel facto- helps push up fuel prices, ac- loss of $31 million that it attri- pansion and “disruptive and spell losses for a few opera- ries in the Port Arthur, Texas, cording to Sam Margolin, an buted to costs associated with For Carlos Ghosn, the auto in- costly” trouble in its supply tors. Those costs include re- area remain hobbled. The analyst with Cowen & Co. ramping up its business. The dustry’s once-dominant philoso- chain are to blame, the court pa- pairing flooded equipment or 600,000-barrel-a-day plant “We believe it could take all company warned it would in- phy endures: Bigger is still bet- pers said. paying fines for not fulfilling owned by Saudi Arabian Oil of the fourth quarter to re- cur a “significant net loss” in ter. The chairman and chief Papers filed in the U.S. Bank- supply contracts, analysts said, Co.—the biggest in the U.S.—is plenish lost supply, with an 2017 as a result. executive of the Nissan-Renault- ruptcy Court in Wilmington, Del., although it is possible some operating at half capacity be- ongoing inflationary impact to The coming listing is among Mitsubishi alliance said Friday he estimate Aerogroup’s has corporate insurance policies cause many of its motors and gasoline prices,” Mr. Margolin the largest among technology has set a goal of combined sales roughly $73 million in assets, would mitigate these costs. said. offerings in Hong Kong this of 14 million vehicles for Nissan while its liabilities are about Investors have been push- Major storms in the past year. Other imminent listings Motor Co., Renault SA and Mit- $109 million. ing refiners’ shares higher as decade have failed to dent re- include gaming-gear developer subishi Motors Corp. by 2022, a they anticipate better profits. Several massive fuel fining profitability in a num- Razer Inc. and e-books pub- 40% rise compared with 2016. —Peg Brickley PBF Energy Inc., which mainly factories near ber of cases. lisher China Literature Ltd., He is also planning 12 new elec- operates refineries in the After hurricanes Ike and which is controlled by Chinese tric cars and the debut of a fully GOOGLE Northeast and Midwest, didn’t Port Arthur, Texas, Gustav struck the Gulf Coast in tech giant Tencent. Ant also is autonomous car within six years. need to shut any of its plants remain hobbled. succession in 2008, refining pursuing plans to list as early —John D. Stoll Former Employees and its shares have gained profit margins for some fuels as next year, though it hasn’t Allege Gender Bias 26% since Aug. 21, the week more than doubled. Valero, one confirmed a venue. TOYS ‘R’ US before Harvey made landfall. of the biggest U.S. refiners, Many Chinese tech giants Three former Google employ- Even refiners that slowed or electronics were fouled by said the storms that year cost are trying to expand into the Retailer Is Expected ees on Thursday filed a class-ac- halted operations due to the floodwater, according to a re- it about $350 million in lost insurance business. Private-eq- To Seek Chapter 11 tion lawsuit against the tech gi- flooding, including Phillips 66 port by Damien Courvalin, a business, but the company still uity investor Yunfeng Financial ant, alleging it discriminated and Marathon Petroleum managing director at Goldman reported profit of $1.15 billion. Group Ltd., another Jack Ma Toys ‘R’ Us Inc. could file for against women in pay and pro- Corp., have seen shares rise Sachs Group Inc. After Hurricane Sandy vehicle, last month joined a bankruptcy as soon as the next motions. between 5% and 9%. Valero is trying to restart struck a swath of the East consortium that acquired the few weeks, as nervous suppliers Google, part of Alphabet Inc., Valero Energy Corp., Phil- its plant in Port Arthur, but Coast in October 2012, Phillips Hong Kong business of U.S. in- have tightened terms for the re- has said its annual salary analy- lips 66 and Marathon are ex- the effort could take until the 66 had to shut its New Jersey surance giant Massachusetts tailer ahead of the crucial holi- ses show no pay gap among its pected to see sizable increases end of September, Goldman fuel plant. The storm cost the Mutual Life Insurance Co. day selling season, according to more than 75,000 employees. in their third-quarter earnings Sachs said. The investment company $56 million before ZhongAn said it plans to people familiar with the matter. Lawyers for the three plain- compared with the same pe- bank expects Exxon Mobil taxes, but refining earnings start taking investor orders for The company has struggled tiffs said more than 90 current riod in 2016. For Marathon, Corp.’s refinery in nearby that quarter jumped nearly 10- its IPO on Monday. Its shares as shopping shifts online, push- and former Google employees which shut down units at its Beaumont, Texas, to take a fold when compared with the are expected to start trading ing down prices and reducing came forward to say they faced Galveston Bay plant due to month to fully recover. The same period of the prior year. on the main board of the Hong store visits. In addition to shrink- discrimination. Harvey, analysts expect earn- companies have said they are Gasoline prices in New York Kong stock exchange on Sep. ing sales and heightened compe- —Yoree Koh ings per share to more than ramping up operations. remained high for months. 28. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | B3

TECHNOLOGY WSJ.com/Tech Tech Firms Face New Political Pressures

WASHINGTON—Technol- been pushing proposals that It wasn’t long ago that Presi- In the internet’s early days, sion to issue a record $2.91 bil- didn’t want to comment on their ogy firms, which long enjoyed could roil the industry, includ- dent Barack Obama held a festi- Washington often took a light- lion fine against Alphabet Inc. standing in Washington. But a hands-off approach from ing measures on net neutrality, val on the White House grounds touch approach designed to unit Google for allegedly abus- some companies have boosted Washington aimed at fostering privacy and liability. The in- to celebrate high-tech firms and nurture the fledgling industry. ing the power of its dominant spending on lobbyists and hired their growth, are facing more dustry’s standing suffered their transformative power. Now, though, some lawmakers search engine. The company former government officials to again recently when lawmak- In contrast, at a White House say big internet firms eventu- has filed an appeal of the fine. help craft their response. By John D. McKinnon, ers laid plans for public hear- meeting between tech leaders ally could lose key aspects of “Antitrust, privacy and over- In March, the House and Byron Tau ings to examine whether Face- and President Donald Trump all trust in tech companies are Senate passed Republican- and Douglas MacMillan book and other social-media this year, Microsoft Corp. Chief serious emerging issues that backed legislation that rolled platforms were used by foreign Executive Satya Nadella led off represent important potential back Obama-era rules that had political challenges from both governments during the 2016 by urging Mr. Trump to main- Facebook is under threats to the Valley,” said Ted benefited internet firms by parties amid growing concerns campaign to manipulate the tain an “enlightened” immigra- scrutiny over its Ullyot, partner for policy and tightening user-privacy rules over the companies’ size, in- U.S. election. Lawmakers also tion policy as well as govern- regulatory affairs at the ven- for their nascent rivals in the fluence and perceived lack of signaled they are considering ment research spending. Mr. acceptance of Russian ture-capital firm Andreessen wireless and cable sectors. accountability. legislation to address online Trump responded by urging ad buys in 2016. Horowitz and the former gen- After internet activists com- New scrutiny by Congress of spending by foreign adversar- other CEOs to keep their com- eral counsel of Facebook. “All plained about the measure, Re- Facebook Inc. over its accep- ies—a potential blow to the ments “a little shorter.” the more reason why tech publican Rep. Marsha Black- tance of Russian ad buys in the firms’ cherished freedom from Compounding the problem companies need to understand burn of Tennessee, a 2016 campaign is just the latest close government oversight. for the industry has been its oc- the special legal protections and engage with the policy subcommittee chairman, in a string of policy pressures “This is a Wild, Wild West,” casional lack of broad support they enjoy under U.S. law. arena, starting early in their stunned internet firms by pro- facing technology firms. said Sen. Mark Warner, a Vir- among Republicans recently, a There is even talk of possible development, to help minimize posing privacy legislation that It was already a tough year ginia Democrat, about the pos- situation that became more antitrust scrutiny for some big those threats in the current would impose new burdens on for Silicon Valley in Washing- sible need for more controls acute following the Republican tech firms in the U.S., following environment,” he said. the internet firms, as well as ton, where lawmakers have on internet companies. sweep in the 2016 election. the European Commission deci- The companies involved the wireless and cable firms. Amazon Hopes Its Culture Travels Well Alphabet,

BY LAURA STEVENS Lyft Talk

In planning Amazon.com $1 Billion Inc.’s second headquarters, Chief Executive Jeff Bezos faces a new challenge: How to maintain the Infusion online retail giant’s carefully BY GREG BENSINGER cultivated culture when he can’t AND JACK NICAS be in two places at once. The answer might lie in one Google parent Alphabet Inc. defining element of Amazon’s has held talks to invest about business practices. Its highly $1 billion in Lyft Inc., accord- decentralized structure, with ing to people familiar with the small, siloed teams, is the matter, in what would further equivalent of “1,000 indepen- an alliance against the ride- dent businesses, all marching hailing company’s rival, Uber in the same direction,” says Technologies Inc. former Amazon senior man- It isn’t clear when the talks ager Eric Heller, who now took place or whether a deal helps brands sell on the site. will materialize, and it Mr. Bezos has been funda- couldn’t immediately be mental in defining the Seattle- learned which unit of Alphabet based company’s culture, set- would make the investment. ting the tone on everything An investment in Lyft would from innovation to how big a complicate an already confus- pizza order teams should need ing mix of alliances and com- for lunch. Amazon emphasizes petitors in the global ride-hail- 14 leadership principles that ing business. Alphabet is an guide employee behavior, fo- investor in Uber after its ven-

cus and goals. STEPHEN BRASHEAR/ASSOCIATED PRESS ture-capital arm, now called Former executives say that The company’s headquarters complex in Seattle. Amazon has announced plans to create a second base in North America. GV, invested $258 million in while they saw Mr. Bezos infre- the ride-hailing giant in 2013. quently—in part because the of Whole Foods Market Inc. tion, which could house as Amazon already has more nants of startup culture at Their relationship soured over 33-building Seattle campus is But Amazon, having out- many as 50,000 employees, will than a dozen tech hubs across Amazon, including a mandate the years as Uber and Google so large—he still has an outsize grown Seattle, is now planning be equal in stature to Seattle. the U.S., as well as interna- to make quick decisions. began competing against each presence at the company he to split up its headquarters, an Amazon is soliciting proposals tional offices, with about a “I’ve been reminding people other in developing self-driv- founded in his garage in 1994. unusual step that presents the for the $5 billion project from quarter of its corporate staff that it’s Day 1 for a couple of ing cars. Alphabet executive Mr. Bezos is known for en- risk of reduced collaboration, metro areas that meet criteria operating outside Seattle. But decades,” he wrote in his an- David Drummond stepped off couraging employees to reach decreased face time and an including access to an interna- Amazon’s power center always nual shareholder letter this Uber’s board last year, citing out via email directly for his off-kilter leadership structure tional airport, mass transit and has been in and around the year. “Day 2 is stasis. Followed the increasing competition be- guidance. That’s even as the if executives don’t split their more than a million people. place where Mr. Bezos by irrelevance. Followed by ex- tween the two companies. number of Amazon’s employees time evenly between the two An Amazon spokesman de- founded the company. cruciating, painful decline. The standoff reached a head surpasses 450,000 globally, in- sites, management experts say. clined to comment on the Mr. Bezos, 53 years old, still Followed by death. And that is in February when Alphabet cluding the recent acquisition Amazon said the new loca- company’s plans. works to preserve the rem- why it is always Day 1.” sued Uber for allegedly steal- ing trade secrets to jump-start its own driverless-car program, allegations the ride-hailing company denies. In May, Oracle Delivers Gains in Profit and Revenue Alphabet turned to Lyft in a deal to jointly develop autono- BY ROBERT MCMILLAN web-based, on-demand comput- it harder to determine how each Pritchard, an analyst with Citi Suite, a seller of business soft- mous-vehicle technology. AND MARIA ARMENTAL ing services known as the cloud. is performing. Research. ware delivered over the inter- Further highlighting the in- That investment appears to be The Redwood City, Calif., The trick for Oracle, said net. Oracle also has set up a tertwining relationships, Soft- With Oracle Corp.’s shares paying off as Oracle’s cloud company said revenue climbed Ross MacMillan, an analyst with cloud-engineering center in Bank Group Corp. has held hitting records this summer, the business again drove growth 7% to $9.19 billion. Earnings RBC Capital Markets LLC, is to downtown Seattle, not far from talks with both Lyft and Uber company Thursday reported during the company’s fiscal first rose 21% to $2.21 billion, or 52 build its cloud business even as Microsoft and Amazon. about an investment in recent earnings that gave investors fur- quarter, which ended Aug. 31. cents a share, from $1.83 billion, its legacy software-licensing Asked about acquisitions weeks, The Wall Street Journal ther reason for optimism about Sales of business software or 43 cents a share, a year ear- business declines. during a conference call with reported Thursday. the company’s efforts to rein- delivered over the internet as a lier. When adjusted for stock- That is important in the plat- analysts, Chairman Larry Ellison An investment in Lyft would vent itself. service rose 62% to $1.07 billion. based compensation and other form-as-a-service and infra- said, “There’s no one left to buy. give Google access to a rela- Oracle shares, which initially Sales of the services used by items, earnings were 62 cents a structure-as-a-service busi- ... As we focus on the cloud, tively scandal-free partner. rose in after-hours trading, fell software developers to build ap- share, up from 55 cents a share nesses, where Amazon.com Inc. there aren’t a bunch of obvious Uber this year alone has 3% to $50.95 after company ex- plications on the cloud, called a year earlier. and Microsoft Corp. dominate, targets we can go out and buy.” pushed out its CEO, lost sev- ecutives provided current-quar- platform-as-a-service and infra- This quarter, Oracle expects he said. Customers who choose The bulk of the technologies eral other key executives and ter projections that didn’t meet structure-as-a-service, rose 28% cloud revenue to rise 39% to to run Oracle’s software on Am- that drive the company’s undergone a painful investiga- what Wall Street was expecting. to $400 million. 43%, helping drive a 2% to 4% azon or Microsoft’s cloud will be growth, Mr. Ellison said, are de- tion of its own workplace op- The shares had set a record high Last quarter, Oracle began re- revenue increase. Adjusted per- encouraged to buy more ser- veloped internally. erations after allegations of a of $53.14 during regular trading porting its software-as-a-service share profit, on a constant-cur- vices from those vendors, rather Last year, Oracle sold $4.57 culture permissive of sexual on Thursday. figures separately, a sign the rency basis, is expected to reach than Oracle, Mr. MacMillan said. billion worth of cloud services— harassment and sexism. It also The 40-year-old seller of business has become more com- 64 cents to 68 cents, up from 61 Originally skeptical of cloud accounting for 12% of its reve- faces three separate federal business software has spent bil- petitive, analysts said. But the cents a share a year earlier. computing, Oracle has taken nue. That was up from $2.85 bil- probes into its operations. lions of dollars over the past company has now combined re- “The debate on Oracle has steps to become a cloud com- lion, or 8%, the previous year. In Bloomberg News earlier re- few years to transform into a porting on its platform and in- moved beyond, ‘Will the busi- petitor in recent years. Last the first quarter, cloud services ported the talks between Al- postmillennium company selling frastructure businesses, making ness be destroyed?’” said Walter year, it spent $9.3 billion on Net- accounted for 16% of revenue. phabet and Lyft.

Asked about production the last minute. That perfec- Throwing out one in five dis- its Switch gaming system. MIMS delays for the iPhone X, a tionism isn’t unwarranted, plays means absorbing a Even Apple can’t get spokeswoman for Apple said because hardware can’t be huge cost, he adds. (Apple’s around what may be the only that the November ship revised once it’s in the hands touch-screen yields have most critical bottleneck for ContinuedfrompageB1 date was reflected in finan- of the consumer, and the since risen, he says.) the iPhone X. At present, an- for new iPhones, it’s harder cial estimates Apple gave in cost of recalls, such as Sam- Other challenges to yield alysts say, only one conglom- to know what proportion of July. sung’s Galaxy Note 7 battery- include factory-worker train- erate can manufacture that orders will be for the iPhone Yet Apple has admitted to fire fiasco, can be enormous. ing, because most final as- OLED screen—and it is Ap- X versus its somewhat less being blindsided in the past. Even relocating a single sembly of phones is still ple’s biggest smartphone pricey new siblings, the When faced with a shortage screw can have consequences done by hand. competitor. Granted, Sam- iPhone 8 and 8 Plus. In addi- of iPhone 7 models in Octo- for the dimensions, place- sung Electronics’ visual dis- tion, many analysts are pre- ber 2016, Mr. Cook said on ment and performance of play business is separate dicting this could be a “su- an earnings call that it was dozens of other components, Global Shortages from its mobile business, but per cycle” of upgraders who “hard to say” if Apple would says Chetan Sharma, a mo- Sometimes, a component Apple appears to be trying have been holding out for a meet demand by the end of bile-industry consultant. De- is scarce at any price. Nearly to bring in other partners to complete redesign—leading the year. tails like this can be worked every smart gadget you can make OLED displays, includ-

to a sales surge such as the “It’s very hard to gauge out in advance given enough DAVID PAUL MORRIS/BLOOMBERG NEWS name contains NAND mem- ing Japan Display and LG one caused by the 2014 demand, as you know, when time, but in the cutthroat The iPhone X won’t start ory, which retains data when Display. launch of the iPhone 6. you’re selling everything mobile industry, time is shipping until November. powered off. This key com- Manufacturing smart- One reason forecasting de- you’re making,” he added. something even Apple ponent has lately faced a phones is so complicated, it’s mand matters so much is the doesn’t have. A yearly refresh “Yield” is the percentage global supply crunch. a minor miracle they get to rise in just-in-time manufac- of the company’s phone line of a batch of components “It’s sort of like OPEC,” us at all. Companies control turing. Producing millions of Perfectionism’s Cost leaves only a few months in that meets production stan- Mr. Lam says. Just as refin- whatever they can by pre-an- phones means coordinating a One of the biggest chal- each design cycle to bring a dards. Yield is the enemy of eries will contract with oil nouncing products, collect- symphony of component lenges top-tier manufactur- device out of the lab and first-time technologies, says companies years in advance, ing preorders, stoking de- manufacturers, all delivering ers face in delivering prod- onto the factory floor, Mr. Wayne Lam, the principal giants such as Apple will mand and, when necessary, parts on demand. These part- uctontimeistheirown Sharma says. analyst for smartphone elec- make deals for enormous managing expectations. They ners can’t risk unsold inven- exacting standards, says When a company brings in tronics at IHS Markit. quantities of NAND memory, even ponder how much scar- tory eating into their already Mr. Ashok. new technology—such as the “On the original iPhone, squeezing out smaller com- city may increase desire—so razor-thin profit margins. Apple is notorious for iPhone X’s OLED display, not yield rates for capacitive petitors. Nintendo has that when the product does The result is that electronics changing small but impor- seen in any previous touch [screens] were like blamed booming smartphone arrive, weeks or even tend to ship directly from tant details of its final hard- iPhone—the headaches mul- 80% because it was new demand for a shortage of months later, it feels like it factory to retailer. ware designs more or less at tiply. technology,” says Mr. Lam. components needed to make was worth the wait. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B4 | Monday, September 18, 2017 THE WALL STREET JOURNAL. JOURNAL REPORT | CYBERSECURITY

safety features—such as anti- most all new cars will have lock brakes—vulnerable to at- fully autonomous driving ca- The Danger of the Hackable Car tack. First, however, hackers pability within a decade, Mr. need to gain access to a car’s Musk said that could prompt a As cars go increasingly digital—and connected—cybersecurity internal communication net- “fleetwide hack.” work by compromising a device In the wake of the recent experts worry that they also are becoming a lot more vulnerable connected to it, such as a incidents involving security smartphone or USB adapters. flaws, and the threat of more, But once inside, researchers the government is starting to BY CHESTER DAWSON found they could shut down weigh in. Last year, the Fed- critical systems relatively easily eral Bureau of Investigation is- by mimicking—or spoofing— sued a statement warning the HACKERS MAY HAVE a new error messages on the central public about the risks of car target in their sights—one communications network stan- hacks. A proposed bill that that’s just as central to every- dard in most cars. passed the House of Represen- day life as computers are. tatives this month and is now Our cars. No simple fix headed to the Senate would As vehicles fill up with “There’s no simple fix,” require auto makers to ap- more digital controls and in- says Mark Nunnikhoven, vice point cybersecurity officers ternet-connected devices, president of cloud-computing and implement plans “for de- they’re becoming more vulner- research at Trend Micro. “This tecting and responding to cy- able to cybercriminals, who kind of internal network was berattacks, unauthorized in- can hack into those systems never meant to be connected trusions and false and just like they can attack com- the way it is now.” spurious messages or vehicle puters. Almost any digitally Another immediate concern control commands.” connected device in a car could is customer data. Auto makers Hoping to stave off regula- become an entry point to the are setting up cars to collect tory action, 14 auto makers vehicle’s central communica- and transmit a wealth of de- created a forum two years ago, tions network, opening a door tailed information such as the known as the Automotive In- for hackers to potentially take auto’s location, speed and formation Sharing and Analy- control by, for instance, dis- even the driver’s alertness—in sis Center, or Auto ISAC, to act abling the engine or brakes. other words, how, where and as a clearinghouse for indus- There have been only a in what condition someone try best practices. The group handful of successful hacks on drives. Industry officials say says it will hold a summit in vehicles so far, carried out car makers are preparing to December. mostly to demonstrate poten- roll out connectivity packages Meanwhile, two leading tial weaknesses—such as shut- allowing owners to interact auto-maker trade groups have ting down moving a car and with service providers and, for spelled out privacy principles taking control of another’s example, make purchases by regarding personal data to steering. But security experts credit card from the car. give owners more options,

paint a grim picture of what VIKTOR KOEN All of which could make such as providing an ability to might lie ahead. They see a that information a hacking opt out of services that share growing threat from malicious target for spam-based market- data on location and other hackers who access cars re- Calling All Cars Honk If You've Been Hacked ers or thieves looking to hijack metrics, and adding protec- motely and keep their doors Global shipments of vehicles with Internet connectivity in vehicles, including buses and heavy-duty trucks people’s credit cards or black- tions for owners who opt in. locked until a ransom is paid. embedded cellular modems mail them using personal in- Car markers are also work- Cybercriminals also could USA Worldwide formation about their where- ing to fortify their connected steal personal and financial 100 million NUMBER OF VEHICLES IN USE EQUIPPED WITH TELEMATICS SYSTEMS abouts or state of health. systems. They’re patching data that cars are starting to Privacy advocates say more flaws in software as they be- AFTERMARKET* LINE-FITTED† collect about owners. 80 safeguards are needed to make come aware of them, and beef- Or they might get even 1.0 billion it harder for other people to ing up security so that more ambitious. Some experts 0.8 get personal data about driv- spoofed, or fake, messages can 60 warn of a day when millions of ers—whether the disclosures be identified and stopped, or fully internet-connected vehi- 0.6 are authorized or not. stymied if they get past de- cles will be at risk of being hi- 40 0.4 “Cars are for many Ameri- fenses. For instance, car en- jacked remotely. A mass hack cans their second home. I gines might not obey a com- 0.2 could be catastrophic for the 20 don’t think I’m exaggerating mand to “start and accelerate” self-driving cars of the future, 0 when I say that probably most unless air-bag sensors in the especially if those cars don’t of us have danced in our car, car confirmed someone is in have steering wheels or other 0 2017 ’19 ’21 ’23’25 2017 ’19 ’21 ’23 ’25 cried in our car, and we’ve the driver’s seat. backup systems to let drivers 2015 ’17 ’19 ’21 ’23 *Aftermarket systems refers to third-party devices installed after a car is purchased yelled in the privacy of our General Motors Co., the take manual control. †Line-ﬁtted refers to factory-installed devices such as modems and Bluetooth modules. car,” says Joe Jerome, a law- largest U.S. auto maker, set up Now the auto industry and Source: Strategy Analytics Source: Ptolemus Consulting Group THE WALL STREET JOURNAL. yer with the Center for De- a dedicated cybersecurity lawmakers are rushing to meet mocracy and Technology a group three years ago that these threats. Congress is pro- creasingly using software to sending data to cloud-comput- assisted steering. That Washington, D.C.-based non- currently numbers 80 people. posing new standards that car control features and functions ing networks. prompted the recall of 1.4 mil- profit advocacy group. “A lot In July, GM hired two cyberse- companies must meet to guard that have long been dominated Cybersecurity experts say lion vehicles by Fiat Chrysler of this technology sort of curity experts who directed against cyberattacks. Car mak- by hardware, such as braking, this has made cars far more Automobiles, and served as a changes that dynamic.” the Jeep hack in 2014. ers are beefing up their soft- gear shifting and throttle con- like personal computers, with warning to the industry that But the really serious “We have re-engineered our ware to make their vehicles trol. It represents a seminal all the vulnerability that car networks are no longer is- threats, security experts say, vehicle-development process tougher to hack, as well as break from the mechanical hy- comes with that. Yet until re- lands unto themselves. lie a few years ahead, as auto- to include cybersecurity con- reaching out to benevolent draulic systems of the recent cently, network security was Earlier this year, research- motive networks spread across siderations from the earliest hackers to help them identify past, one that began with largely treated as an after- ers at Argus Cyber Security car makes and models. For in- stages of vehicle design,” GM’s potential security flaws. electronically controlled fuel thought—the systems were Ltd. remotely shut down a stance, hackers might lock the chief cybersecurity officer, Jeff While there are disagree- injection in the late 1960s. designed to give auto mechan- car’s engine using a Bluetooth- doors of an entire model line, Massimilla, told a conference ments among manufacturers “Software is rapidly replac- ics access to a car’s functions, enabled device that monitors extorting the auto maker to al- on connected cars in June. and security experts about the ing hardware,” says Colin Bird, not fend off criminal hackers. engine performance and lowittoregainaccess. Last year, Fiat Chrysler set exact magnitude of the possi- a senior automotive industry A handful of widely publi- downloads vehicle data, made “It is just a matter of time up a “bug bounty” program to ble threats, there is a wide- analyst at IHS Markit. “More cized attacks has demonstrated by German auto-parts supplier before large-scale attacks oc- pay hackers for information on spread consensus that action than 50% of a car’s value today that vulnerability, including a Robert Bosch GmbH. The com- cur” on automobiles, Miroslav flaws that could allow unau- is needed immediately to minis defined by software, and that 2014 incident involving a Jeep pany says the device was in Pajic, Duke University assis- thorized access, but the com- imize risks. is continuing to increase.” Cherokee. Hackers looking to limited distribution and that it tant professor of electrical and pany won’t say if that has Cyberintrusions have given The digital features go far point out potential vulnerabili- immediately sent out a patch computer engineering, said at identified any vulnerabilities. auto makers a “wake-up call” beyond rudimentary diagnos- ties found a password to a Wi- to fix the flaw. Separately, a June conference on con- Ford Motor Co. and other over the past five years, says tic monitoring systems stan- Fi hot spot and cellular con- Bosch said this month that it nected cars co-sponsored by global auto makers also have Phil Jansen, Fiat Chrysler’s dard in most cars on the road. nections used in the Jeep’s has developed an encrypted the National Highway Traffic active programs to counter ve- vice president for North Amer- Newer cars have modems en- central display and entertain- standard for over-the-air soft- Safety Administration and the hicle hacking. ican product development. “It abling internet connectivity; ment system. From there, they ware upgrades in vehicles. Federal Trade Commission. has caused us to rethink how today, these are used mostly accessed the car’s internal Last month, cyber sleuths at Elon Musk, chief executive Mr. Dawson is a staff we set up architectures” for used for entertainment, but computer network and took security provider Trend Micro of Tesla Inc., highlighted the reporter in The Wall Street vehicle electronics. they are fast evolving into control of functions ranging Inc. disclosed a flaw in almost danger in a July speech to a Journal’s Detroit bureau. The new vulnerability portals for software upgrades from the door locks and win- all cars from the past 30 years gathering of state governors in Email him at chester. comes as auto makers are in- of critical systems and for dow wipers to electronically that makes any number of Rhode Island. Predicting al- [email protected].

One victim of the June at- and industry experts argue that Insurance Grows for Cyberattacks tack, shipping conglomerate the benefits of insurance go be- A.P. Moller-Maersk A/S, says yond the coverage itself. Going it will cost the company be- through the process of purchas- Companies seek to protect themselves against a wide array of threats tween $200 million and $300 ing cyberinsurance, they say, million because system shut- can make a company more se- BY ADAM JANOFSKY ative, and along with that, downs halted a large part of cure, because the audits and Increasing Coverage company awareness of the is- the firm’s operations. questionnaires may alert a Percentage of Marsh LLC* clients in the U.S. purchasing standalone sue has grown,” says Claire Insurers say the evolution business to a risk or technology AS THE THREAT from hackers insurance against cyberattacks, by industry Wilkinson, a consultant to the of ransomware has been a of which it wasn’t aware. And grows, businesses are hoping 50% Insurance Information Insti- wake-up call. “Our policies getting a policy can be an in- that cyberinsurance will pro- tute Inc., a New York-based covered cyberextortion for centive for companies to com- vide a new line of defense. trade group, and an author of years, but if you asked me five mit to security measures to Once largely limited to tech- Hospitality several white papers on cyber- or 10 years ago what that keep their premiums low. 40 nology firms, cyberinsurance and gaming insurance. would look like, it would be a But experts caution that cy- has emerged as the fastest- Retail/wholesale Twenty years ago, insurers disgruntled ex-employee who berinsurance shouldn’t be seen growing type of coverage offered only policies that cov- had a back door to the sys- as a replacement for rigorous among U.S. companies. The 30 ered things like coding errors tem,” says Mr. Francis. “Now security. Data breaches and cy- policies are designed to cover Services and other software accidents we have ransomware, and we berattacks can cause lasting financial losses from different Power and utilities that could bring down a com- have to figure out how that damage in the form of lost kinds of attacks—from theft of 20 Financial institutions pany’s networks, according to [affects] how we price poli- customers or a destroyed rep- data to extortion using ran- Manufacturing Ms. Wilkinson. Now, cyberin- cies.” utation, and cyberinsurance in somware—as well as recouping Education surance can cover a vast array Ransomware is only one of some situations will cover only damages from a tainted repu- 10 of computer-related risks, and many new threats that have a fraction of the costs. tation and stolen money. Many Health care insurers have introduced pol- led to the creation of new poli- In June 2014, for example, carriers are also trying to dis- icy riders designed for small cies. For instance, insurers of- the restaurant chain P.F. tinguish themselves by offer- 0 Communications, firms. fer coverage for property dam- Chang’s China Bistro Inc., ing tools and services to help media and tech New breaches and attacks age and bodily injury coverage which paid a $134,000 annual firms respond quickly to cy- 2013 20142015 2016 “accelerate the need for cyber- due to cyberattacks on critical premium for cyberinsurance, berattacks or prevent them. Note: Data was unavailable for 2015 insurance, and carriers have infrastructure operators, learned that hackers had sto- Security experts, of course, *Marsh, a leading insurance broker, is a unit of Marsh & McLennan Cos. innovated in response,” says transportation companies and len the credit-card numbers of caution that insurance Source: Marsh Risk Management Research, 2015; Ms. Wilkinson. oil and gas firms. 60,000 customers. According shouldn’t be seen as a replace- Marsh Global Analytics THE WALL STREET JOURNAL. One recent example is the to court documents, the res- ment for good cybersecurity influx of ransomware attacks, Some overlap taurant was reimbursed more measures, because data Travelers Cos. billion by 2022. in which a computer is locked Some of these risks may be than $1.7 million by the in- breaches and cyberattacks can The market for cyberinsur- Headline-grabbing breaches until the victim pays a de- covered under other kinds of surer for costs such as a foren- cause lasting damage that is ance has soared in the past at organizations like Yahoo mand. In May, hundreds of insurance policies—businesses sic investigation and litigation, difficult to recoup. And it isn’t several years. In June, Fitch Inc., the Democratic National thousands of computers run- with kidnap and ransom insur- but had to pay $1.9 million in even clear what kind of claims Ratings said the industry grew Committee and Equifax Inc. ning outdated operating sys- ance occasionally use it to re- fines levied against it by its will be allowed or not allowed. by 35% in 2016, with total pre- account for part of that tems were infected with the coup losses from ransomware, credit-card processing vendor. miums of $1.35 billion. Re- growth, insurance experts say, “WannaCry” ransomware, and for example. But insurance ex- P.F. Chang’s didn’t respond Much to learn searchers from Allied Market but many companies are also in June several major organi- perts say such policies weren’t to requests for comment. “There’s so much new cov- Research predicted that de- purchasing cyberinsurance in zations were infected with a designed with cyberrisks in erage out there that hasn’t mand for cyberinsurance will response to new laws such as variant of the “Petya” ransom- mind, and will likely be dis- Mr. Janofsky is a staff been tested,” says Tim Francis, continue to boom in coming the European Union’s General ware that security researchers puted as stand-alone cyberin- reporter for WSJ Pro a vice president and enterprise years, and forecast that the Data Protection Regulation. say was particularly destruc- surance products emerge. Cybersecurity. Email: lead for cyberinsurance at global market may reach $14 “There has been a legal imper- tive. Some insurance providers [email protected]. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | B5 FINANCE & MARKETS Traders Are Profiting as Oil Prices Stall

BY STEPHANIE YANG tial deposit. Range Bound “Those strategies work well A placid oil market is em- Oil markets have been quiet, with prices ﬂuctuating within a tight because they are targeting boldening traders to adopt range. That’s caused a strategy that bets on sideways trading to excel. short-term horizons and…a strategies that reap modest very low-volatility environ- gains on small price moves, U.S. crude-oil futures ment,“ said Jean-Jacques while risking big losses in the $60 a barrel Duhot, chief investment officer event of larger ones. of Arctic Blue Capital Ltd. “It’s U.S. oil futures have spent Crude prices have traded going to be very challenging much of 2017 in a range 55 mostly within a narrow band for them to do well when the around $50 a barrel—their volatility bottoms out.” least-volatile period in three Mean-reverting strategies years. The stalemate reflects are an essential part of many expectations that crude will be 50 traders’ tool kits. Versions of supported by production cuts these strategies form the core by the Organization of the Pe- of approaches such as value troleum Exporting Countries 45 investing, which has fallen out and limited by the capacity of of favor in recent years as dy- nimble U.S. shale producers to namics, ranging from central- boost output when prices rise. 40 bank stimulus to industry con- U.S. crude settled flat Friday solidation and higher-than- 2016 ’17 at $49.89. EDDIE SEAL/BLOOMBERG NEWS expected corporate profits, Many traders are adapting A refinery stands behind an oil field near Corpus Christi, Texas. Sources: WSJ Market Data Group THE WALL STREET JOURNAL. have supported expanded mul- by pursuing what is known on tiples in many markets. Wall Street as a mean-revert- from a year earlier to the “You’ve got this standoff losses that force traders to a mean reversion strategy to The relatively tight trading ing strategy, generally one highest on record, according where everything is sort of in promptly sell when the market bet against oil and wait for range for oil this year is help- that wagers prices will fall to CME Group Inc. balance,” said Emil van Essen, turns against them. prices to fall back below that ing traders with a task that when oil is above a certain The rise of the “yo-yo mar- head of the energy-focused Many analysts say eco- level. But losses would be might otherwise be a chal- level and rise when it declines ket” trade is the latest sign of fund Emil Van Essen LLC. nomic fundamentals support compounded if the move lenge, given the commodity’s below a threshold. how Wall Street is seeking to Some investors say the continued placidity, though marked the start of a trend history of volatile trading. Though the strategy prom- make the most of an environ- strategy can help generate ad- others worry that bets on low higher. Recently, traders have been ises only modest returns when ment in which outsize trading ditional gains with limited volatility will be wrong-footed In addition, futures trading focused on the $45-to-$55 the price is near the trading profits are few and far be- risk, as long as it is properly when an event causes inves- typically involves using lever- range, where options positions target, some traders are com- tween. A longstanding regime managed in terms of leverage, tors to change their outlook or age, or placing a large bet are the most concentrated, ac- pensating by boosting their of low volatility, or muted which gives futures traders ex- markets take a different view with a small amount of money. cording to data provider Quik- activity. In overall trading, av- price swings, has swept over posure to contracts for a frac- of various risks. If the bet goes wrong, the Strike. erage daily volume in U.S. oil markets since the financial tion of the full cost, and the A trader who thinks U.S. oil holder may be on the hook for —Gunjan Banerji futures rose 51% in August crisis. use of tools such as stop- is overvalued at $55 could use losses at several times the ini- contributed to this article. SoFi Says CEO Cagney Rovio IPO Pricing Disappoints

BY NATHAN ALLEN

To Step Down Immediately Rovio Entertainment Oy, the company behind the “An- BY PETER RUDEGEAIR certainty caused by Mr. Cagney’s ment was found. gry Birds” mobile-gaming AND TELIS DEMOS departure and concerns about Some board members hoped franchise, on Friday set the the company’s culture, but they could organize an orderly pricing for its initial public of- Online lender Social Finance around 30 funds still partici- executive transition after The fering, valuing the company at Inc. said Friday Chief Executive pated, and some even increased Wall Street Journal reported about $1 billion—well short of Mike Cagney would step down their buying at the new yield that some SoFi executives en- shareholders’ more-optimistic immediately and give up his seat level, the people said. “Investor gaged in or tolerated what was forecasts. on the board, an about-face as participation was strong,” said described as improper behavior The Finnish company said it the embattled company contin- Ashish Jain, SoFi’s senior vice toward women, according to would offer shares within a ues to grapple with accusations president of capital markets, in a people familiar with the matter. range of €10.25 to €11.50 ($12.22 of improper workplace culture. statement. Mr. Cagney has faced contin- to $13.71), giving it a market Tom Hutton, who replaced Last Monday, the company ued speculation among staff and capitalization of between €802 Mr. Cagney as chairman of SoFi’s announced that Mr. Cagney even shareholders in recent million and €896 million.

board last Monday, was named would relinquish his title as months about his personal con- The range would value LI MUZI/XINHUA/ZUMA PRESS interim chief executive of the chairman of the board but re- duct at SoFi, according to people Rovio at roughly three times ‘Angry Birds’ balloon at New York’s Macy's Thanksgiving Day Parade company. He has served as a main a director and stay on as close to the company. its annual revenue, on par SoFi director since 2012. CEO until a permanent replace- Following the company’s with similar companies, a per- able three or four years ago, It expects to begin trading SoFi received a mixed backing original transition announce- son involved in the IPO said. but given more recent perfor- on the Nasdaq Helsinki prelist from investors on Friday. It comment, board members met to When Rovio earlier this mance in the sector, was “re- on Sept. 29 and on the official pleted the sale of a package of discuss a speedier exit for Mr. month announced plans to ally way too high,” said Atte list around Oct. 3, under the personal loans, but at a smaller Cagney because they felt it was float, shareholders hoped the Riikola, an analyst for Inderes, code ROVIO. size and at a slightly higher yield untenable for him to remain IPO would value the company a Helsinki-based research firm. Struggling to repeat the than the company had been con- atop SoFi, the people said. Mr. at about €2 billion, people fa- He added that the IPO pric- success of its Angry Birds sidering earlier in the week. Cagney agreed with the other di- miliar with the matter said at ing is now “quite fair” com- franchise, Rovio has gone In recent days, the company rectors and tendered his resig- the time. “This number wasn’t pared with other gaming com- through several cost-cutting believed it had demand for more nation at a meeting Thursday realistic,” the person said. panies. rounds and management than $600 million worth of morning, those people added. When China’s Tencent The IPO will raise gross pro- changes in recent years. bonds in the deal, led by Gold- “I want SoFi to focus on help- Holdings Ltd. bought Super- ceeds of about €30 million and For the first six months of man Sachs Group Inc. But on Fri- ing members, hiring the best cell Oy, last year, it valued the allow existing shareholders, in- the year, the company re- day, it ended up selling $527 mil- people, and growing our com- mobile-game maker at more cluding majority owner Kaj Hed, ported a 94% rise in revenue lion worth of bonds, according pany in a way consistent with than $10 billion, or 4.3 times the uncle of Rovio co-founder to €152.6 million. to people familiar with the deal. our values,” Mr. Cagney wrote in its 2015 revenue. Niklas Hed, to sell shares. Earnings before interest, That was about the same the companywide note last Mon- “It set a ceiling because Su- Rovio, which has videogame taxes, depreciation and amor- amount and the same yield SoFi day. “That can’t happen as well percell is the best monetizing and brand licensing, says the tization, or Ebitda, rose to had originally envisioned, and as it should if people are focused game company,” said Tero Kuit- listing will help it pursue its €39.9 million from €11 million

better than the terms on a SoFi ANDREW GOMBERT/EPA/SHUTTERSTOCK on me, which isn’t fair to our tinen, strategist at Finnish soft- growth strategy, including a year earlier. deal earlier this year. Mike Cagney, then chairman members, investors, or you.” He ware developer Kuuhubb Oy. through acquisitions, and gain —Sam Schechner A handful of potential inves- and CEO, spoke at a technology didn’t respond to a request for A valuation in the range of more flexibility to remunerate and David Gauthier-Villars tors dropped out amid the un- event in New York in May. comment. €2 billion could have been do- its employees. contributed to this article. Advertisement INTERNATIONAL INVESTMENT FUNDS U.S. Claims California Firm [ Search by company, category or country at asia.WSJ.com/funds ]

NAV —%RETURN— Illegally Imported Aluminum FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR VP Classic-B Units AS EQ HKG 09/14 USD 156.18 36.3 27.7 17.1 VP Classic-C Units AS EQ HKG 09/14 USD 19.59 35.6 26.9 16.8 BY SCOTT PATTERSON VP Classic-C Units AUD H AS EQ HKG 09/14 AUD 16.06 34.5 26.3 17.1 owned or operated by mem- American aluminum pro- VP Classic-C Units CAD H AS EQ HKG 09/14 CAD 15.76 36.1 27.3 17.1 AND JUSTIN SCHECK bers of Mr. Liu’s family or his ducers have been complaining VP Classic-C Units HKD H AS EQ HKG 09/14 HKD 13.39 35.9 27.6 NS Data as shown is for information purposes only. No offer is being made by VP Classic-C Units NZD H AS EQ HKG 09/14 NZD 16.40 36.0 28.4 17.8 close associates. for years about Chinese com- Morningstar, Ltd. or this publication. Funds shown aren’t registered with the VP Classic-C Units RMB AS EQ HKG 09/14 CNH 12.56 20.5 19.7 NS U.S. Securities and Exchange Commission and aren’t available for sale to United VP Classic-C Units RMB H AS EQ HKG 09/14 CNH 13.38 39.2 31.6 NS The U.S. Justice Department The government notified panies flooding U.S. markets States citizens and/or residents except as noted. Prices are in local currencies. VP Multi-Asset Fund Cls A HKD OT OT HKG 09/14 HKD 10.78 12.1 9.2 NS All performance figures are calculated using the most recent prices available. VP Multi-Asset Fund Cls A USD OT OT HKG 09/14 USD 10.87 11.3 8.5 NS is alleging that a California the court that it intends to with inexpensive aluminum, VP Taiwan Fund AS EQ CYM 09/14 USD 20.42 21.9 22.3 19.2 company evaded $1.5 billion in seize a warehouse in Fontana which they say has helped to NAV —%RETURN— tariffs by conducting an illegal that is owned by Perfectus, ac- depress prices. FUND NAME GF AT LB DATE CR NAV YTD 12-MO 2-YR For information about listing your funds, effort to smuggle banned alu- cording to the complaint. The Journal, in a page one n Chartered Asset Management Pte Ltd - Tel No: 65-6835-8866 please contact: Freda Fung tel: +852 2831 Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: [email protected] minum into the U.S., according Representatives for China story last year, linked Mr. Liu to CAM-GTF Limited OT OT MUS 09/08 USD 311447.91 3.1 -2.5 7.9 2504; email: [email protected] to a government complaint Zhongwang and Mr. Liu didn’t more than $1 billion in alumi- filed Thursday. respond to requests for com- num shipments from China The civil complaint signals ment. A spokesman for Perfec- Zhongwang to Mexico, according that U.S. authorities are deep- tus said the company hadn’t to interviews with people who ening an investigation into a had a chance to review the have done business with Mr. Liu, n Website: https://www.valuepartners-group.com/ Tel: (852) 2143 0688 China A-Share Fund Cls A AUD H OT OT HKG 09/14 AUD 13.59 15.3 16.1 10.7 long-running international complaint and had no com- as well as company records, China A-Share Fund Cls A AUD UnH OT OT HKG 09/14 AUD 12.45 13.9 14.0 5.8 LIST YOUR China A-Share Fund Cls A CAD H OT OT HKG 09/14 CAD 12.49 14.4 14.4 9.1 aluminum scheme that alleg- ment. China Zhongwang has trade documents and legal fil- China A-Share Fund Cls A EUR H OT OT HKG 09/14 EUR 13.08 13.8 13.4 8.6 edly involves Fontana, Calif.- earlier denied any connection ings reviewed by the Journal. China A-Share Fund Cls A EUR UnH OT OT HKG 09/14 EUR 12.74 10.5 14.1 NS China A-Share Fund Cls A GBP H OT OT HKG 09/14 GBP 13.09 13.6 13.4 10.3 based Perfectus Aluminum Inc. with Perfectus. In a subsequent article, the China A-Share Fund Cls A GBP UnH OT OT HKG 09/14 GBP 15.53 15.9 21.2 21.0 China A-Share Fund Cls A HKD H OT OT HKG 09/14 HKD 13.32 14.1 14.2 9.0 FUNDS The complaint, part of a The new allegations could Journal reported that the U.S. China A-Share Fund Cls A HKD UnH OT OT HKG 09/14 HKD 13.99 25.5 21.3 12.0 China A-Share Fund Cls A NZD H OT OT HKG 09/14 NZD 13.39 15.4 16.3 10.8 proceeding to seize assets, al- help resolve a mystery about Commerce Department was in- China A-Share Fund Cls A NZD UnH OT OT HKG 09/14 NZD 12.00 20.5 22.0 5.2 leges that Perfectus Aluminum massive stockpiles of aluminum vestigating whether thousands China A-Share Fund Cls A RMB (CNH) OT OT HKG 09/14 CNH 14.71 17.3 18.5 12.6 China A-Share Fund Cls A USD OT OT HKG 09/14 USD 13.88 24.7 20.6 11.4 is controlled and “effectively in Mexico, the U.S. and else- of tons of aluminum at Alumi- China A-Share Fund Cls A USD H OT OT HKG 09/14 USD 13.33 14.7 14.9 9.5 China Greenchip-A Units AS EQ CYM 09/14 HKD 67.60 32.9 27.2 14.7 owned” by Liu Zhongtian, where that had baffled U.S. alu- num Shapes LLC, a factory in a China Greenchip-A Units AUD H AS EQ CYM 09/14 AUD 11.47 33.5 28.0 15.5 founder and chairman of Chi- minum-industry officials. The Philadelphia suburb tied to China Greenchip-A Units CAD H AS EQ CYM 09/14 CAD 11.16 33.5 27.5 14.5 China Greenchip-A Units NZD H AS EQ CYM 09/14 NZD 11.72 32.9 27.8 15.7 nese aluminum giant China Wall Street Journal, in a series Perfectus, was part of an al- China Greenchip-A Units USD AS EQ CYM 09/14 USD 11.16 32.5 26.8 14.5 China Greenchip-A2 QDIs Units AS EQ CYM 09/14 HKD 12.18 32.5 26.8 14.6 Zhongwang Holdings Inc., one of articles, has reported how Mr. leged scheme by Mr. Liu and GC Hi Yield Inc - Cls A MDIs GBP H OT OT CYM 09/14 GBP 9.62 6.9 9.8 12.9 GC Hi Yield Inc-Cls A MDIs AUD H OT OT CYM 09/14 AUD 9.20 8.2 11.6 14.9 of China’s biggest aluminum Liu and his associates were al- others to evade tariffs by dis- GC Hi Yield Inc-Cls A MDIs CAD H OT OT CYM 09/14 CAD 9.28 7.4 10.6 13.4 In print & online. Contact: producers and exporters. legedly involved in a complex ef- guising the metal as shipping GC Hi Yield Inc-Cls A MDIs NZD H OT OT CYM 09/14 NZD 9.56 8.5 12.1 15.4 GC Hi Yield Inc-Cls P HKD Acc sh OT OT CYM 09/14 HKD 15.31 8.6 11.8 14.2 It says Perfectus illegally im- fort to ship billions of dollars’ pallets. Aluminum Shapes told GC Hi Yield Inc-Cls P HKD MDIs sh OT OT CYM 09/14 HKD 9.27 8.6 11.9 14.3 GC Hi Yield Inc-Cls P MDIs SGD H OT OT CYM 09/14 SGD 10.11 7.3 10.4 13.8 ported more than 2.1 million worth of aluminum from China the Journal at the time that it GC Hi Yield Inc-Cls P USD Acc sh OT OT CYM 09/14 USD 15.33 7.9 11.2 13.8 aluminum pallets from China to locations in Mexico, Malaysia, hadn’t violated trade rules. GC Hi Yield Inc-Cls P USD MDIs sh OT OT CYM 09/14 USD 9.26 7.9 11.1 13.8 [email protected] GC Hi Yield Inc-ClsA MDIs EUR H OT OT CYM 09/14 EUR 10.05 6.4 8.9 12.1 into the U.S. between 2011 and Vietnam, the U.S. and elsewhere. In the Thursday complaint, Hi-Div Stk Cls A RMB H Acc OT OT HKG 09/14 CNH 12.61 26.1 22.7 15.0 Hi-Div Stk Cls A RMB UnH Acc OT OT HKG 09/14 CNH 14.36 17.2 17.8 13.2 2014, violating a 2010 Com- Mr. Liu has denied having prosecutors alleged that “Alu- Hi-Div Stk Cls A1 OT OT HKG 09/14 USD 89.13 24.3 19.6 12.3 Hi-Div Stk Cls A2 AUD H MDIs OT OT HKG 09/14 AUD 10.31 23.2 18.6 12.1 merce Department ban on cer- ties to stockpiles of aluminum minum Shapes was purchased, Hi-Div Stk Cls A2 CAD H MDIs OT OT HKG 09/14 CAD 10.46 22.8 17.9 10.9 tain aluminum imports from shipped overseas from his Chi- at least in part, for the pur- Hi-Div Stk Cls A2 GBP H MDIs OT OT HKG 09/14 GBP 9.97 24.7 19.4 11.4 Hi-Div Stk Cls A2 HKD MDIs OT OT HKG 09/14 HKD 10.94 25.0 20.3 12.7 China and avoiding payment of nese operation. pose of melting Zhongtian Hi-Div Stk Cls A2 MDIs OT OT HKG 09/14 USD 11.85 23.4 18.7 11.9 Hi-Div Stk Cls A2 NZD H MDIs OT OT HKG 09/14 NZD 10.58 23.6 20.0 12.8 more than $1.5 billion in tariffs. “These things have nothing Liu’s and Perfectus’s stockpile Hi-Div Stk Cls A2 RMB H MDIs OT OT HKG 09/14 CNH 10.49 27.8 23.6 15.7 According to the complaint, to do with me,” he said in a June of bogus aluminum “pallets” Hi-Div Stk Cls A2 RMB UnH MDIs OT OT HKG 09/14 CNH 10.37 17.6 18.2 14.0 Hi-Div Stk Cls A2 SGD H MDIs OT OT HKG 09/14 SGD 11.48 NS NS NS the pallets were manufactured 2016 interview with the Journal into aluminum billet, for sale Intel-China Converg Fund-A AUD H AS EQ CYM 09/14 AUD 11.18 27.0 22.3 NS Intel-China Converg Fund-A CAD H AS EQ CYM 09/14 CAD 12.10 19.0 16.1 NS by China Zhongwang and sold at his company’s Liaoning, in the United States.” Alumi- Intel-China Converg Fund-A NZD H AS EQ CYM 09/14 NZD 12.51 21.9 19.7 NS Intel-China Converg Fund-A Units AS EQ CYM 09/14 USD 169.10 26.7 22.4 10.2 to Perfectus by intermediary China, plant, where he lives in num Shapes didn’t respond to Intel-Chinese Mainland Foc Fund AS EQ CYM 09/14 USD 54.93 48.3 44.1 20.2 entities, some of which were an apartment inside the factory. a request for comment. VP Classic-A Units AS EQ HKG 09/14 USD 348.24 36.8 28.3 17.7 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B6 | Monday, September 18, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST Data as of Friday, September 15, 2017

Nikkei 225 Index STOXX 600 Index S&P 500 Index 4 p.m. New York time Last Year ago 19909.50 s102.06, or 0.52% Year-to-date s 4.16% 380.71 t1.08, or 0.28% Year-to-date s 5.34% 2500.23 s4.61, or 0.18% Trailing P/E ratio 24.11 24.47 High, low, open and close for each 52-wk high/low 20230.41 16251.54 High, low, open and close for each 52-wk high/low 396.45 328.80 High, low, open and close for each P/E estimate * 19.10 18.25 38915.87 12/29/89 414.06 4/15/15 1.99 2.14 trading day of the past three months. All-time high trading day of the past three months. All-time high trading day of the past three months. Dividend yield All-time high: 2500.23 09/13/17

Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. 20500 395 2500 Session high DOWN UP 65-day moving average Session open t Close 20250 390 2475 Close Open t

Session low 20000 385 2450

19750 380 2425

19500 375 2400

65-day moving average 65-day moving average 19250 370 2375

Bars measure the point change from session's open 19000 365 2350 June July Aug. Sept. June July Aug. Sept. June July Aug. Sept.

International Stock Indexes Data as of 4 p.m. New York time Global government bonds

Latest 52-Week Range YTD Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year Region/Country Index Close NetChg % chg Low Close High % chg and 10-year government bonds around the world. Data as of 3 p.m. ET 2890.56 0.19 2390.11 2891.23 14.2 World The Global Dow 5.49 • Country/ Spread Over Treasurys, in basis points Yield MSCI EAFE 1964.30 5.27 0.27 1614.17 • 1970.23 16.6 Coupon Maturity, in years Yield Latest Previous Month Ago Year ago Previous Month ago Year ago MSCI EM USD 1102.16 2.27 0.21 838.96 • 1102.26 27.8 2.750 Australia 2 1.949 56.4 55.8 45.8 87.7 1.921 1.813 1.606 2.750 10 2.749 54.9 38.5 42.5 2.738 2.659 2.118 Americas DJ Americas 603.51 1.35 0.22 503.67 • 603.51 11.7 55.2 3.000 2 -0.532 -191.6 -191.0 -130.4 -0.550 -0.556 -0.575 Brazil Sao Paulo Bovespa 75756.52 1099.84 1.47 57079.76 • 75756.52 25.8 Belgium -191.3 0.800 10 0.713 -148.8 -154.0 -143.6 0.699 0.735 0.257 Canada S&P/TSX Comp 15173.03 0.31 0.002 14450.69 • 15922.37 –0.7 -148.8 0.000 2 -0.482 -186.6 -186.3 -183.4 -134.0 -0.499 -0.480 -0.610 Mexico IPC All-Share 49921.84 –186.02 –0.37 44364.17 • 51713.38 9.4 France 1.000 10 0.714 -148.7 -148.8 -154.9 -143.1 0.699 0.725 0.262 Chile Santiago IPSA 3950.05 31.52 0.80 3127.54 • 3950.05 22.6 0.000 Germany 2 -0.699 -208.3 -207.2 -206.5 -137.1 -0.708 -0.711 -0.641 U.S. DJIA 22268.34 64.86 0.29 17888.28 • 22268.34 12.7 0.500 10 0.434 -176.6 -176.9 -184.0 -165.8 0.418 0.435 0.035 Nasdaq Composite 6448.47 19.38 0.30 5046.37 • 6460.19 19.8 0.050 Italy 2 -0.072 -145.6 -142.7 -140.1 -78.7 -0.064 -0.047 -0.058 S&P 500 2500.23 4.61 0.18 2085.18 • 2500.23 11.7 2.200 10 2.079 -12.2 -12.4 -22.8 -35.8 2.063 2.046 1.334 CBOE Volatility 10.17 –0.27 –2.59 9.36 • 22.51 –27.6 0.100 Japan 2 -0.144 -152.9 -150.0 -147.0 -100.0 -0.136 -0.115 -0.270 EMEA Stoxx Europe 600 380.71 –1.08 –0.28 328.80 • 396.45 5.3 0.100 10 0.021 -217.9 -214.7 -222.6 -173.3 0.040 0.048 -0.040 Stoxx Europe 50 3101.84 –9.71 –0.31 2730.05 • 3276.11 3.0 4.000 Netherlands 2 -0.671 -205.5 -205.5 -199.9 -132.9 -0.692 -0.644 -0.599 France CAC 40 5213.91 –11.29 –0.22 4332.45 • 5432.40 7.2 0.750 10 0.559 -164.2 -165.1 -172.2 -156.0 0.536 0.552 0.132 Germany DAX 12518.81 –21.64 –0.17 10259.13 • 12888.95 9.0 4.750 Portugal 2 -0.014 -139.9 -138.1 -134.4 -26.6 -0.017 0.010 0.463 Greece ATG 776.20 –14.77 –1.87 557.47 • 858.08 20.6 4.125 10 2.782 58.2 61.4 54.4 171.8 2.800 2.819 3.411 Israel Tel Aviv 1415.46 … Closed 1363.50 • 1478.96 –3.8 2.750 Spain 2 -0.301 -168.5 -166.3 -171.5 -90.9 -0.300 -0.361 -0.179 Italy FTSE MIB 22229.49 –51.65 –0.23 16134.71 • 22281.14 15.6 1.450 10 1.603 -59.8 -58.4 -81.5 -62.0 1.603 1.460 1.073 Netherlands AEX 526.78 –2.56 –0.48 439.07 • 536.26 9.0 4.250 Sweden 2 -0.677 -206.2 -204.9 -199.2 -136.0 -0.685 -0.637 -0.631 Russia RTS Index 1123.43 –2.26 –0.20 960.32 • 1195.61 –2.5 1.000 10 0.636 -156.4 -157.6 -160.0 -137.7 0.611 0.675 0.316 Spain IBEX 35 10317.40 –43.70 –0.42 8607.10 • 11135.40 10.3 1.750 U.K. 2 0.436 -94.8 -98.7 -112.6 -58.6 0.376 0.229 0.144 Switzerland Swiss Market 9028.05 –43.38 –0.48 7593.20 • 9176.99 9.8 4.250 10 1.309 -89.1 -95.4 -118.8 -89.7 1.233 1.087 0.796 South Africa Johannesburg All Share 55645.15 –205.17 –0.37 48935.90 • 56655.88 9.9 1.250 U.S. 2 1.384 ...... 1.364 1.355 0.730 Turkey BIST 100 107741.70 –502.52 –0.46 72519.85 • 110423.11 37.9 2.250 10 2.201 ...... 2.187 2.275 1.693 U.K. FTSE 100 7215.47 –79.92 –1.10 6693.26 • 7547.63 1.0 Asia-Pacific Commodities Prices of futures contracts with the most open interest 4 p.m. New York time Australia S&P/ASX 200 5695.00 –43.70 –0.76 5156.60 • 5956.50 0.5 EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia TCE: COMEX: LME: China Shanghai Composite 3353.62 –17.81 –0.53 2980.43 • 3385.39 8.1 Derivatives Berhad; Tokyo Commodity Exchange; Commodity Exchange; London Metal Exchange; NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 9/14/2017 Hong Kong Hang Seng 27807.59 30.39 0.11 21574.76 • 28094.61 26.4 One-Day Change Year Year India S&P BSE Sensex 32272.61 30.68 0.10 25765.14 • 32575.17 21.2 Commodity Exchange Last price Net Percentage high low Corn 0.50 417.25 344.25 Indonesia Jakarta Composite 5872.39 20.39 0.35 5027.70 • 5915.36 10.9 (cents/bu.) CBOT 354.75 0.14% Soybeans -7.50 1,047.00 907.00 Japan Nikkei Stock Avg 19909.50 102.06 0.52 16251.54 • 20230.41 4.2 (cents/bu.) CBOT 968.50 -0.77% Wheat (cents/bu.) CBOT 448.25 5.25 592.25 422.50 Malaysia Kuala Lumpur Composite 1786.33 4.96 0.28 1616.64 • 1792.35 8.8 1.19 Live cattle (cents/lb.) CME 112.925 1.150 1.03 122.850 99.825 New Zealand S&P/NZX 50 7762.66 –56.57 –0.72 6664.21 • 7879.46 12.8 Cocoa ($/ton) ICE-US 2,000 27 1.37 2,301 1,794 Philippines PSEi 8180.85 35.94 0.44 6563.67 • 8180.85 19.6 Coffee (cents/lb.) ICE-US 141.45 3.80 2.76 166.75 119.10 Singapore Straits Times 3209.56 –11.39 –0.35 2787.27 • 3354.71 11.4 Sugar (cents/lb.) ICE-US 15.13 0.28 1.89 20.40 13.50 South Korea Kospi 2386.07 8.41 0.35 1958.38 • 2451.53 17.7 Cotton (cents/lb.) ICE-US 68.88 -0.24 -0.35 75.75 66.15 10580.41 26.84 0.25 8902.30 10617.84 14.3 Taiwan Weighted • Robusta coffee ($/ton) ICE-EU 1991.00 -2.00 -0.10 2,272.00 1,892.00 Thailand SET 1660.53 1.43 0.09 1406.18 • 1660.53 7.6 Copper ($/lb.) COMEX 2.9530 -0.0045 -0.15 3.1785 2.5025 Gold ($/troy oz.) COMEX 1325.10 -4.20 -0.32 1,362.40 1,160.80 Silver ($/troy oz.) COMEX 17.680 -0.109 -0.61 18.875 14.440 Currencies London close on Sept. 15 Aluminum ($/mt)* LME 2,090.50 -27.00 -1.28 2,134.00 1,688.50 Tin -145.00 21,225.00 18,760.00 Yen, euro vs. dollar; dollar vs. major U.S. trading partners US$ vs, ($/mt)* LME 20,555.00 -0.70 Fri YTD chg Copper ($/mt)* LME 6,459.00 -113.00 -1.72 6,937.00 5,491.00 Country/currency in US$ per US$ (%) Lead ($/mt)* LME 2,292.00 -10.00 -0.43 2,481.00 2,022.00 10% WSJ Dollar index Europe Zinc ($/mt)* LME 2,990.00 -60.00 -1.97 3,195.00 2,450.50

s Bulgaria lev 0.6114 1.6356 –12.0 Nickel ($/mt)* LME 11,350.00 -225.00 -1.94 12,220.00 8,780.00 0.1599 6.255 –12.8 0 Croatia kuna Rubber (Y.01/ton) TCE 221.20 -6.70 -2.94 n.a. n.a. Euro zone euro 1.1958 0.8363 –12.0 Palm oil -7.00 2950.00 2380.00 Euro s Czech Rep. koruna-b 0.0458 21.818 –15.1 (MYR/mt) MDEX 2860.00 -0.24 –10 Denmark krone 0.1607 6.2234 –12.0 Crude oil ($/bbl.) NYMEX 50.49 0.14 0.28 58.37 42.84 s Hungary forint 0.003867 258.57 –12.1 NY Harbor ULSD ($/gal.) NYMEX 1.7896 0.0180 1.02 1.8206 1.3943 Yen Iceland krona 0.009393 106.46 –5.8 –20 RBOB gasoline ($/gal.) NYMEX 1.6201 0.0234 1.47 1.6689 1.2736 Norway krone 0.1274 7.8493 –9.2 Natural gas ($/mmBtu) NYMEX -0.036 3.5960 2.8860 2016 2017 Poland zloty 0.2795 3.5785 –14.5 3.091 -1.15 Brent crude Russia ruble-d 0.01738 57.550 –6.1 ($/bbl.) ICE-EU 55.38 0.16 0.29 60.09 45.51 US$ vs, US$ vs, 0.1256 7.9615 –12.6 Gas oil ICE-EU 3.25 535.50 408.25 YTD chg YTD chg Sweden krona ($/ton) 534.25 0.61 Fri Fri 1.0413 0.9603 –5.8 Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Switzerland franc Turkey lira 0.2908 3.4384 –2.4 Sources: SIX Financial Information; WSJ Market Data Group Hong Kong dollar 0.1279 7.8189 0.8 Americas Ukraine hryvnia 0.0382 26.2050 –3.2 India rupee 0.0156 64.1333 –5.6 Argentina peso-a 0.0589 16.9685 6.9 U.K. pound 1.3574 0.7367 –9.1 London close on Sep 15 Indonesia rupiah 0.0000754 13254 –2.0 Cross rates Brazil real 0.3198 3.1266 –3.9 Japan yen 0.009019 110.87 –5.2 Middle East/Africa Canada dollar 0.8199 1.2197 –9.3 USD GBP CHF JPY HKD EUR CDN AUD Kazakhstan tenge 0.002946 339.50 1.7 Bahrain dinar 2.6510 0.3772 0.01 Chile peso 0.001599 625.30 –6.6 1.2495 1.6959 1.3014 0.0113 0.1598 1.4939 1.0244 ... Macau pataca 0.1245 8.0332 1.5 Egypt pound-a 0.0567 17.6400 –2.7 Australia Colombia peso 0.0003451 2897.38 –3.5 Malaysia ringgit-c 0.2387 4.1895 –6.6 Israel shekel 0.2841 3.5195 –8.5 Canada 1.2197 1.6554 1.2698 0.0110 0.1560 1.4582 ... 0.9759 Ecuador US dollar-f 11unch New Zealand dollar 0.7291 1.3716 –5.0 Kuwait dinar 3.3206 0.3011 –1.5 Euro 0.8363 1.1351 0.8708 0.0075 0.1070 ... 0.6856 0.6692 Mexico peso-a 0.0565 17.6928 –14.7 Pakistan rupee 0.0095 105.385 1.0 Oman sul rial 2.5976 0.3850 0.003 Hong Kong 7.8189 10.6130 8.1419 0.0705 ... 9.3499 6.4113 6.2573 Peru sol 0.3079 3.2482 –3.1 Philippines peso 0.0195 51.294 3.4 Qatar rial 0.2697 3.708 1.9 110.8710 150.4800 115.4600 ... 14.1800 132.5800 90.9200 88.7400 Uruguay peso-e 0.0345 28.970 –1.3 Japan Singapore dollar 0.7433 1.3454 –7.0 Saudi Arabia riyal 0.2666 3.7505 –0.01 Venezuela bolivar 0.100047 10.00 0.003 Switzerland 0.9603 1.3033 ... 0.0087 0.1228 1.1484 0.7875 0.7684 South Korea won 0.0008836 1131.67 –6.3 South Africa rand 0.0760 13.1664 –3.8 U.K. 0.7367 ... 0.7673 0.0066 0.0942 0.8811 0.6040 0.5896 Asia-Pacific Sri Lanka rupee 0.0065402 152.90 3.0 Close Net Chg % Chg YTD % Chg U.S. ... 1.3574 1.0413 0.0090 0.1279 1.1958 0.8199 0.8003 Australia dollar 0.8003 1.2495 –10.0 Taiwan dollar 0.03326 30.069 –7.4 WSJ Dollar Index 85.07 –0.11 –0.13 –8.46 0.03022 33.090 –7.6 China yuan 0.1526 6.5526 –5.6 Thailand baht Sources: Tullett Prebon, WSJ Market Data Group Source: Tullett Prebon

Key Rates Top Stock Listings 4 p.m. New York time Latest 52 wks ago % YTD% % YTD% % YTD% Libor Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Cur Stock Sym Last Chg Chg Asia Titans 50 One month 1.23722% 0.53178% ¥ TakedaPharm 4502 6115.00 -0.39 26.47 CHF RocheHldgctf ROG 243.20 -0.33 4.56 Last: 167.05 s 0.07, or 0.04% YTD s 18.5% Three month 1.32389 0.85711 Asia Titans HK$ TencentHoldings 0700 338.80 0.53 78.60 £ RoyDtchShell A RDSA 2102.50 -1.91 -6.24 Six month 1.47111 1.24733 HK$ AIAGroup 1299 59.00 -0.17 34.86 ¥ TokioMarineHldg 8766 4415.00 0.73 -7.94 €SAP SAP 92.01 0.09 11.11 175 One year 1.73206 1.54489 ¥ AstellasPharma 4503 1442.50 3.59 -11.15 ¥ ToyotaMtr 7203 6480.00 0.76 -5.79 € Sanofi SAN 81.37 -0.84 5.81 High 170 Euro Libor ANZ 29.88 -1.03 -1.78 WES 41.43 -0.62 -1.68 € SchneiderElectric SU 71.50 -1.04 8.15

AU$ AustNZBk AU$ Wesfarmers Close 165

One month -0.40143% -0.37400% AU$ BHP BHP 26.26 -2.34 4.79 AU$ WestpacBanking WBC 31.44 -1.19 -3.56 € Siemens SIE 116.30 -0.68 -0.43 Low t Three month -0.37657 -0.32086 HK$ BankofChina 3988 3.99 ... 15.99 AU$ Woolworths WOW 25.39 ... 5.35 € Telefonica TEF 9.09 0.08 3.08 160 Six month -0.30286 -0.20829 HK$ CKHutchison 0001 100.70 0.10 14.56 € Total FP 44.92 -0.08 -5.94 50–day 155 One year -0.22000 -0.07300 HK$ CNOOC 0883 9.49 2.71 -2.16 Stoxx 50 CHF UBSGroup UBSG 16.05 -0.43 0.63 moving average CSL 130.96 -0.22 30.43 € Unilever UNA 50.63 0.48 29.44 150 Euribor AU$ CSL CHF ABB ABBN 23.43 -0.64 9.08 One month -0.37100% -0.37100% 7751 3799.00 0.42 15.30 £ Unilever ULVR 4348.50 -0.51 32.07 16 23 30 7 14 21 28 4 11 18 25 1 8 15 ¥ Canon € ASMLHolding ASML 135.85 0.07 27.38 Three month -0.32900 -0.30100 9022 19020 -1.19 -1.09 € Vinci DG 80.25 -0.02 24.03 July Aug. Sept. ¥ CentralJapanRwy €AXA CS 24.55 -1.03 2.36 Six month -0.27100 -0.20100 0939 6.63 -0.30 11.06 £ VodafoneGroup VOD 206.45 -1.69 3.30 HK$ ChinaConstructnBk € AirLiquide AI 105.90 -0.94 0.24 One year -0.17100 -0.05400 2628 -0.21 17.57 CHF ZurichInsurance ZURN 287.10 -1.58 2.39 HK$ ChinaLifeInsurance 23.75 € Allianz ALV 184.95 -0.03 17.80 0941 0.80 -0.85 Yen Libor HK$ ChinaMobile 81.50 € AB InBev ABI 101.20 -1.17 0.65 Stoxx 50 0386 5.95 0.34 8.18 DJIA One month -0.04907% -0.09629% HK$ ChinaPetro&Chem £ AstraZeneca AZN 4719.50 -1.80 6.35 3101.84 t 9.71, or 0.31% s 3.0% CBA -0.61 -7.44 $ AmericanExpress AXP 86.99 0.93 17.43 Last: YTD Three month -0.03136 -0.03943 AU$ CmwlthBkAust 76.28 € BASF BAS 86.20 0.12 -2.39 9020 -0.93 -0.10 $ Apple AAPL 159.88 1.01 38.04 Six month -0.00036 -0.01121 ¥ EastJapanRailway 10090 € BNP Paribas BNP 65.99 -0.83 8.98 3275 6954 1.87 11.43 $ Boeing BA 249.00 1.54 59.94 One year 0.10300 0.08714 ¥ Fanuc 22080 £ BT Group BT.A 284.40 0.67 -22.49 6501 $ Caterpillar CAT 121.37 0.74 30.87 3200 Offer Bid ¥ Hitachi 782.60 1.33 23.83 € BancoBilVizAr BBVA 7.38 -0.83 16.16 2317 0.44 36.58 $ Chevron CVX 114.63 0.16 -2.61 Eurodollars TW$ Hon Hai Precisn 115.00 € BancoSantander SAN 5.59 -1.25 12.66 3125 7267 $ CiscoSystems CSCO 32.44 0.78 7.35 One month 1.3400% 1.2400% ¥ HondaMotor 3245.00 0.90 -4.98 £ Barclays BARC 186.65 -1.66 -16.47 3050 $ Coca-Cola KO 46.18 0.15 11.38 Three month 1.3900 1.2900 KRW HyundaiMtr 005380 136500 -0.36 -6.51 € Bayer BAYN 110.25 -1.43 11.22 $ Disney DIS 98.52 0.63 -5.47 2975 Six month 1.5500 1.4500 HK$ Ind&Comml 1398 5.73 ... 23.23 £BP BP. 448.25 -0.76 -12.04 $ DowDuPont DWDP 69.86 -0.23 3.99 One year 1.8000 1.7000 ¥ JapanTobacco 2914 3696.00 0.38 -3.85 £ BritishAmTob BATS 4741.00 1.03 2.59 2900 $ ExxonMobil XOM 80.07 -0.02 -11.29 ¥ KDDI 9433 2936.00 -0.02 -0.79 € Daimler DAI 66.25 0.64 -6.32 Latest 52 wks ago $ GeneralElec GE 23.93 -0.37 -24.27 16 23 30 7 14 21 28 4 11 18 25 1 8 15 ¥ Mitsubishi 8058 2596.00 -0.02 4.26 DTE 15.01 0.10 -7.34 Prime rates € DeutscheTelekom $ GoldmanSachs GS 225.22 -0.72 -5.94 July Aug. Sept. ¥ MitsubishiElectric 6503 1722.50 0.85 5.71 DGE 2488.00 -0.66 17.91 U.S. 4.25% 3.50% £ Diageo $ HomeDepot HD 158.40 -0.61 18.14 ¥ MitsubishiUFJFin 8306 681.60 0.80 -5.36 ENI 13.81 1.25 -10.73 Canada 3.20 2.70 € ENI $ Intel INTC 37.00 1.43 2.01 ¥ Mitsui 8031 1659.50 -0.06 3.27 GSK 1454.00 -1.79 -6.91 Japan 1.475 1.475 £ GlaxoSmithKline $ IBM IBM 144.82 -0.49 -12.75 ¥ Mizuho Fin 8411 191.20 0.79 -8.87 GLEN 344.50 -2.02 24.21 Dow Jones Industrial Average P/E: 20 Hong Kong 5.00 5.00 £ Glencore $ JPMorganChase JPM 91.62 0.71 6.18 ¥ NTTDoCoMo 9437 2539.50 0.53 -4.64 £ HSBC Hldgs HSBA 708.00 -1.78 7.78 s s Policy rates $ J&J JNJ 134.45 0.20 16.70 Last: 22268.34 64.86, or 0.29% YTD 12.7% AU$ NatAustBnk NAB 30.86 -0.26 0.62 INGA 15.12 -1.31 13.05 ECB 0.00% 0.00% € INGGroep $ McDonalds MCD 156.92 -0.05 28.92 ¥ NipponTeleg 9432 5127.00 -0.04 4.38 IMB 3327.50 2.05 -6.07 Britain 0.25 0.25 £ ImperialBrands $ Merck MRK 66.16 0.06 12.38 22500 ¥ NissanMotor 7201 1129.00 0.18 -3.96 ISP 2.91 -0.41 20.12 Switzerland 0.50 0.50 € IntesaSanpaolo $ Microsoft MSFT 75.31 0.72 21.19 ¥ Panasonic 6752 1611.50 0.03 35.48 MC 230.00 0.20 26.79 22000 Australia 1.50 1.50 € LVMHMoetHennessy $ Nike NKE 53.87 0.26 5.98 HK$ PingAnInsofChina 2318 61.90 0.24 59.54 LLOY 65.32 -1.63 4.50 U.S. discount 1.75 1.00 £ LloydsBankingGroup $ Pfizer PFE 35.36 -1.04 8.87 21500 $ RelianceIndsGDR RIGD 52.10 -0.38 65.13 OR 178.90 -0.28 3.17 Fed-funds target 1.00-1.25 0.25-0.50 € LOreal $ Procter&Gamble PG 93.27 -0.30 10.93 KRW SamsungElectronics 005930 2520000 0.20 39.84 NG. 953.90 0.20 -8.11 MMM Call money 3.00 2.25 £ NationalGrid $3M 213.35 0.91 19.48 21000 ¥ Seven&I Hldgs 3382 4310.00 0.51 -3.21 CHF Nestle NESN 80.95 -0.25 10.81 $ Travelers TRV 120.70 0.62 -1.40 Overnight repurchase rates ¥ SoftBankGroup 9984 8587.00 0.46 10.59 CHF Novartis NOVN 82.40 -0.84 11.20 UTX 113.08 -0.05 3.16 20500 U.S. 1.21% 0.43% $ UnitedTech ¥ Sony 6758 4241.00 0.26 29.50 DKK NovoNordiskB NOVO-B 300.50 -0.69 17.98 $ UnitedHealth UNH 198.18 0.23 23.83 Euro zone n.a. n.a. 16 23 30 7 14 21 28 4 11 18 25 1 8 15 ¥ Sumitomo Mitsui 8316 4161.00 0.24 -6.70 £ Prudential PRU 1741.00 -1.30 6.97 $ Visa V 105.30 -0.74 34.97 July Aug. Sept. 0016 135.10 -0.15 37.86 RB. 6775.00 -2.34 -1.61 VZ 1.44 -10.34 Sources: WSJ Market Data Group, SIX HK$ SunHngKaiPrp £ ReckittBenckiser $ Verizon 47.86 Note: Price-to-earnings ratios are for trailing 12 months Financial Information, Tullett TW$ TaiwanSemiMfg 2330 218.50 ... 20.39 £ RioTinto RIO 3452.50 -1.36 9.31 $ Wal-Mart WMT 80.38 0.88 16.29 Sources: WSJ Market Data Group; Birinyi Associates For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Monday, September 18, 2017 | B7 FINANCE & MARKETS Why BofA Exited 1,597 Branches

Bank’s pullback from sis of bank regulator data. Bank of America no longer many rural areas is has a branch in places like Elk- also a retreat from its hart, Ind., Dodge City, Kan., and Florence, S.C. In the Utica, ‘bigger is better’ tack N.Y., area, where there were 12 Bank of America closed this Vassar, Mich., branch in 2010. Huntington Bancshares bought the former Burton, Mich., home of branches in 2009, there are Frankenmuth Credit Union later moved into the building. a Bank of America branch in 2014. BY RACHEL LOUISE ENSIGN now none. AND COULTER JONES “You can’t be everywhere,” said Dean Athanasia, co-head Bank of America Corp. of the bank’s consumer unit, in pulled all of its branches out an interview. Nevertheless, he of Indiana four years ago said the bank’s footprint, with when it sold off a group of an- 4,542 branches, covers 80% of tiquated storefronts in Rust the U.S. population. “I don’t Belt towns. Later this year, the think we were optimally posi- lender is returning but this tioned before.” time is targeting affluent cus- In most counties the bank tomers in the state’s largest left, it sold at least some of its city, Indianapolis. branches to smaller lenders, The Charlotte, N.C., bank, limiting the harm to those the nation’s second-largest communities. lender, has gotten rid of about In nearly one-quarter of the 1,600 branches since the fi- counties, Bank of America nancial crisis as it sought to simply closed the branches, di- rekindle sagging profits and recting customers to other lo- focus on major metropolitan cations, sometimes dozens of

areas. The reductions are miles away. ANDREA BRANDT FOR THE WALL STREET JOURNAL (4) roughly equivalent to shutting Meanwhile, Bank of Amer- In October 2013, Bank of America closed this branch on Dixie This former Bank of America branch in Saginaw, Mich., was sold all the Citigroup Inc. and Cap- ica is opening new branches in Highway in Saginaw, Mich. to Huntington Bancshares in 2014 but was later closed. ital One Financial Corp. out- a number of big metropolitan lets in the U.S. areas where it previously much of their reason to exist deals, in 2007 Bank of Amer- about $2.5 million, compared tains a presence. The strategy would repre- didn’t have them, a rare move because routine transactions ica bought U.S. Trust, a pri- with $1.4 million for the typi- Of the counties Bank of sent a stark change for any big for a big bank in recent years. such as depositing checks and vate bank that targets clients cal small city or rural outpost, America has left from lender, but it is a particularly With its emphasis on more transferring money are in- with millions to invest. The said Jon Voorhees, a Bank of mid-2009 through the middle striking departure for a bank urban markets, the bank in creasingly done on computers next year, it agreed to buy America retail executive from of 2016, more than 95% were built over decades on the idea part is adapting to demo- or phones. Banks can’t get rid Merrill Lynch & Co. in the heat 2004 to 2015 and now an in- outside metro areas with 1 of offering a coast-to-coast graphic changes. of branches altogether, how- of the financial crisis. dustry consultant. million or more people, the network in areas both urban Many rural areas have ever, because many customers Bank of America was hit Once money became tight, Journal analysis shows. The and rural. struggled with population de- still pick their bank based on hard by the financial crisis, re- “why would I want to invest to bank’s increasingly urban net- “Bigger is indeed better,” cline and lower male labor- whether it has a nearby ceiving some $45 billion in aid rebuild” in the less populated work looks more like those of former Chief Executive Hugh force participation as highly branch. Important product from the U.S. Treasury. As a areas “when I could build a New York-based J.P. Morgan McColl said when the bank educated young workers flock sales still happen there. part of a plan to further stabi- branch in Manhattan?” he Chase & Co. or Citigroup. was formed in 1998 by the to urban centers. But the bank Older Bank of America lize the bank, Chief Executive asked. Through the changes, Bank merger of NationsBank Corp. also is grappling with the fall- branches were typically domi- Brian Moynihan announced The bank said revenue is of America has continued to and BankAmerica Corp. out of the financial crisis. New nated by a long row of teller plans in 2011 to cut $5 billion just one of a number of factors add consumer deposits—$55 But strains from the finan- restrictions on overdraft fees windows. In the newer in annual costs in the con- it looks into when evaluating a billion last year. While revenue cial crisis led to a different ap- also hit consumer-banking branches, the tellers are some- sumer unit and related areas. branch, including deposit bal- has been falling in recent proach. In 2009, the bank had revenue, and a determination times in the basement. The Pulling out of the rural ances and client satisfaction. years, profits have hit their branches in 725 U.S. counties, to avoid the mistakes of the new branches emphasize big- branches was one way to Overall though, the bank highest point since 2006. And roughly one out of every four subprime era led to a new fo- ticket purchases. reach the goal. The typical ur- has cut 1,597 U.S. branches earnings at the bank’s con- nationwide. In 2016, it was in cus on creditworthy custom- The approach stems in part ban branch easily clears its since the beginning of 2009, sumer unit, which includes its 253 fewer counties, according ers. from two big acquisitions. Af- roughly $900,000 annual oper- which includes closures in branches, increased 8% last to a Wall Street Journal analy- Branches have also lost ter dozens of traditional bank ating cost with revenue of counties where the bank main- year.

Insight Unbound

Experience the depth and breadth ofmarketscoverageonWSJdigital

Inafast-changingworld,theJournal’sdigitalplatformskeepyoumoving. Fromliveanalysisandin-depthresearchtopodcastsandnewsletters— themarketsinsightyouneedisalwaysonwithWSJdigital.

READNOWATWSJ.COM/MARKETS

© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5850 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B8 | Monday, September 18, 2017 THE WALL STREET JOURNAL. MARKETS

THE DAILY SHOT By Lev Borodovsky and Colin Barr More Bad News for the Labor Market

Among the central Employer costs for worker compensation, by private industry mysteries in markets right now is when tumbling U.S. $60 an hour unemployment might finally force up wage growth and shake inflation 50 out of its slumber. Despite Thursday’s rise in consumer 40 inflation, the signs right now aren’t good. The problem is the 30 disconnect between the workforce and the skills employers are seeking. 20 Supplemental pay Finding skilled workers is Retirement and savings the most pressing problem Paid leave for small businesses in 10 Legally required benefits recent surveys. Job openings in construction Insurance are rising, but those 0 Wages and salaries positions are notoriously Information Financial Professional Manufacturing Construction Education Trade, Leisure and difficult to fill. Professional activities and business and health transportation hospitality and business services tend services services and utulities to pay well, but openings have slowed. U.S. unemployment rate Employee wages and salaries, change from a year earlier At the other end of the spectrum, where experience 10% 8% is less important and pay is accordingly less, leisure and 8 hospitality openings have 4 jumped. As hiring in the economy shifts toward this 6 low-paid sector and away 0 from the better- compensated ones, it’s 4 likely we will see even more –4 downward pressure on 2 wages—a development that wouldn’t be welcomed by Recession Recessions 0 –8 central bankers. 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 1997 2000 ’05’10 ’15

Small businesses identifying Construction job openings Professional and business-services Leisure and hospitality job openings WSJ subscribers can get quality of labor as biggest problem job openings The Daily Shot— a chart-by-chart brieﬁng 20% 250 thousand 1.5 million 900 thousand on markets and economics— sent to their email 200 15 each morning. Subscribe at 1.0 600 wsj.com/newsletters 150 10 100 0.5 300 5 50

0 0 0 0 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17

Sources: U.S. Bureau of Labor Statistics (costs, unemployment, openings); U.S. Bureau of Economic Analysis (wage growth); National Federation of Independent Business (quality of labor) THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Risks Rise for Australian Banks OVERHEARD In Autos,

Investors have been call- China have damped property Clinical trial failures are Big Isn’t ing the Australian housing Skyscraping demand in Australia, previ- unpleasant, but one analyst market a bubble for years, Gains in home prices in ously a popular venue for took such news extra hard. Always Best yet prices keep charting Australian cities Chinese buyers. Danish biotech Bavarian higher. The market, though, Little wonder that house Nordic said Thursday it was Does scale matter in the could be about to turn. That 80% prices are starting to slow— discontinuing a pivotal trial auto industry? Carlos Ghosn, won’t be pretty for banks. Sydney they were flat month-over- study of its experimental boss of the Renault-Nissan- The property market has 60 Melbourne month in major cities in Au- prostate cancer vaccine due Mitsubishi alliance, is taking been skyrocketing Down Un- gust. That could hurt banks’ to a lack of efficacy. Its a lonely road in betting it der—prices in Sydney have 40 earnings as loan growth shares plunged 48% Friday. does. gone up 80% since 2012 slows and provisions rise. Chad Messer, analyst at General Motors has with- while in Melbourne they 20 Australian banks are still Needham and Co., captured drawn from Europe, South have gained 54%. In turn, trading at a premium to the mood. After asking about Africa and India this year. In- houses have become unaf- 0 their peers in other coun- the company’s collaboration vestors have bid the value of fordable for many Austra- tries: The four biggest Aus- arrangements with other Tesla up to $63 billion, even –20 lians as prices keep outpac- tralian banks on average drug companies, he signed off though it only makes about ing income growth. An 2012 ’13 ’14 ’15 ’16 ’17 trade at 2.1 times tangible by saying, “Thanks, and my 100,000 cars a year. Sergio average home in Sydney now Sources: CEIC; Bloomberg News (photo) Central business district book value, far higher than, condolences”—a far cry from Marchionne has unleashed costs more than 12 times the THE WALL STREET JOURNAL. in Sydney, Australia say, J.P. Morgan Chase, the typically chipper “great breakup speculation at Fiat median income there, ac- which trades at 1.7 times. quarter, guys.” Chrysler. Analysts have writ- cording to research firm De- one-third of Australian mort- able pay once their interest- The country’s largest bank When reached for com- ten excited notes about the mographia. gage applications contain in- only period expires. by market value, Common- ment, Mr. Messer pointed to potential of spinoffs at Mer- To keep houses within the accurate information, result- This is fine as long as the wealth Bank of Australia, the hard work that had gone cedes maker Daimler and reach of buyers, banks seem ing in around $400 billion of market keeps going up, as looks the most vulnerable. It into the study. “It was an un- Volkswagen. to have loosened their lend- so-called liar loans, accord- homeowners can sell their is the most expensive of the fortunate outcome for the Yet Mr. Ghosn is doubling ing standards. Home lending ing to UBS. houses to cover loan repay- big four, at 2.5 times tangi- company and for prostate down on the virtues of scale: is big business for Australian Many home buyers have ments. Once the market ble book. Aside from hous- cancer patients,” he said in an sharing vehicle platforms, banks—more than half of also been taking out inter- stops rising it will become ing-market worries, it has email. “I have gotten to know factory capacity and technol- their loan books consist of est-only mortgage loans, harder to avoid problems. been embroiled in a probe the management team of the ogy. On Friday, he unveiled a residential mortgages, meaning borrowers don’t Australian regulators are related to money laundering. company well over the years, plan that involved doubling amounting to $1.2 trillion, a need to repay the principal trying to cool the property Shorting Australian banks and I felt an expression of my annual savings from coopera- figure that has risen 47% in for a certain period. Nearly market by reining in the use has long been a “widow- sympathy for how it must tion within the alliance to the past five years. Analysts 40% of outstanding home of interest-only loans. But maker.” Now, though, it feel to experience such a dis- €10 billion ($11.9 billion). Re- say much of this new lending loans are interest-only. The they face another difficulty: could be a winning trade. appointment was in order.” nault, Nissan and Mitsubi- has been dubious: Around risk is borrowers will be un- Tightened capital controls in —Jacky Wong shi will share 22 engines out of 31 by the end of 2022, up from 14 out of 38 last year. Importantly, they will also share an electric-vehicle Sales Report Shows Why Consumers in U.S. Feel Spent platform, infotainment and The thing about consum- the higher prices for gaso- that wasn’t spent—stood at result of the hurricanes. self-driving technology. ers is that they can spend A Penny Spent line and other items that the just 3.5%. That compares Chief among them is gaso- Mr. Ghosn’s synergy num- only so much. Personal saving rate hurricanes ushered in will with 5.1% a year earlier. line: As of Sept. 11, a gallon bers haven’t always been ap- The U.S. Commerce De- keep the money people do As a result, the paths to of regular fetched $2.69 na- parent where they matter to partment reported retail- 12% have to spend from stretch- stronger spending gains are tionally, according to the En- investors: the profits of the sales figures on Friday, and 10 ing quite as far. Inflation-ad- rather limited. One would be ergy Information Administra- listed companies that form they were weak. Overall sales 8 justed spending, therefore, for job growth to reacceler- tion, versus $2.40 two weeks the alliance. Renault’s first- fell 0.2% in August from July. 6 will be weaker. ate. Another would be for earlier. Car prices will likely half operating margin was Economists had expected 4 U.S. income growth has wage growth to finally start be firmer as people in the lower than that of Peugeot them to rise. Sales figures 2 been muted recently. picking up. Or people could Houston area replace vehi- Citroën. Nissan’s margins for July and June were re- Hourly wages have been save even less—something cles lost to Harvey. Building- are ahead of Honda’s, but be- vised lower. September, 0 gaining only about 2.5% an- that might occur temporarily material costs also are rising. hind Toyota’s. when the brunt of Hurri- 2000 ’10 nually, and, although job as households in hurricane- It is hardly the environ- The alliance overtook canes Harvey and Irma show Source: Commerce Department gains have added to the hit areas draw down savings ment struggling retailers Volkswagen and Toyota to up in the data, will likely be THE WALL STREET JOURNAL. number of people drawing to cover losses, though that wanted to face this fall. In- make more cars than any sin- a bad month as well. a paycheck, hiring growth isn’t sustainable. vestors who hoped this gle car manufacturer in the Part of the problem is placement efforts in the has moderated. Meanwhile, Through much of the fall, would be the year the U.S. first half. But if Mr. Ghosn that with wage growth storms’ aftermaths, which Americans have been sup- the problem of Americans’ economy finally pulled itself wants to prove the value of muted and the saving rate will boost spending on items porting their spending by limited spending power will free of its low-growth mo- that scale in the rapidly low, Americans’ wherewithal such as lumber and cars in saving less. As of July, the be compounded by the rass will probably have to changing car industry, he to increase their spending is the coming fourth quarter, personal saving rate—the higher prices they will be wait some more. needs to get margins up, too. limited. Rebuilding and re- don’t change that. Moreover, share of after-tax income paying for many items as a —Justin Lahart —Stephen Wilmot