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he House approved a China Tbipartisan bill easing Dodd-Frank rules for small BY KATE O’KEEFFE and midsize banks, sending AND BOB DAVIS the legislation to Trump. A1 U.S. banks notched are- WASHINGTON—Lawmakers cord quarterly profit to start are moving to thwart Trump 2018, the FDIC said. B12 administration efforts to ease restrictions on Chinese telecom- Amazon is banning some munications giant ZTE Corp. shoppers for infractions such and other sensitive technology, as too many returns, some- citing fears the positions would times without telling them compromise national security in what they did wrong. A1 the latest twist in trade negotia- Zuckerberg apologized tions between the world’s larg- to EU lawmakers over scan- est economies. dals engulfing Facebook The Senate Banking Commit- but avoided responding to tee unanimously approved leg- many difficult questions. B1 islation on Tuesday that would tighten national-security re- Penney CEO Ellison is views of Chinese technology quitting his job to take over deals by the interagency Com- leadership of Lowe’s. B1 mittee on Foreign Investment in

Wynn shareholders voted OLIVIER MATTHYS/ASSOCIATED PRESS FOR AVAAZ the U.S., strengthen export con- overwhelmingly against the UNPLUGGED: Protesters marched on the European Parliament in Brussels on Tuesday ahead of testimony by Facebook CEO Mark trols and prohibit the Trump casino company’s executive Zuckerberg. He apologized over the company’s fake-news and privacy scandals, but rebuffed claims its market power was too big. B1 administration from lifting stiff compensation plan. B1 penalties imposed on ZTE. The U.S. and China recently Univision named media agreed on the broad outlines of veteran Sadusky as CEO of a deal that would allow U.S. the Spanish-language broad- companies to once again supply caster, succeeding Falco. B1 Bill Eases Small-Bank Rules ZTE with components, lifting a New Venezuela sanctions ban that threatens to put the are expected to further crimp company out of business. the country’s oil output and Congress passes less- Behind the scenes, his then by 258-159 approved the re- sions for years to come. The U.S. has accused the could boost crude prices. B13 top economic adviser and a sulting bipartisan legislation, The story of how the legisla- company of failing to punish ambitious plan than first powerful senator settled on a sending it to the president for tion came together, based on in- employees who violated sanc- Santos rejected Har- less ambitious plan. And in re- his expected signature. terviews with current and for- tions against Iran and North bour Energy’s offer of over sought by Trump; keeps cent weeks, Mr. Trump called a The bill cuts regulations for mer officials, demonstrates how Korea, but President Donald $10 billion for the Austra- much of Dodd-Frank senior House lawmaker, urging small lenders and raises the as- policy makers scaled back their Trump recently held out the lian oil-and-gas firm. B3 him to move forward despite set threshold at which larger priorities to maintain support prospect of a reprieve in a ges- The Dow fell 178.88 BY RYAN TRACY objections from Republicans regional lenders automatically for a compromise. ture to Chinese President Xi points to 24834.41 amid AND ANDREW ACKERMAN who wanted broader changes. face stricter rules, adding up to “Could it have done more? Jinping. concern over trade tensions The strategy to seek modest the most significant changes to Sure,” said Rep. French Hill (R., Also on Tuesday, a bipartisan and North Korea talks. B13 WASHINGTON—Ten days Dodd-Frank changes, agreed to the 2010 Dodd-Frank law. The Ark.). “But Sen. Crapo should group of 27 senators urged the after his inauguration, Presi- in private by Sen. Mike Crapo plan leaves untouched most of be congratulated for producing Please see CHINA page A4 Calpers said its finance dent Donald Trump promised (R., Idaho) and former Na- Dodd-Frank’s major planks, a bill in these partisan times.” chief has left, as the public to “do a big number” on the tional Economic Council Direc- such as emergency government Please see RULES page A2 Beijing finds ways to win in pension fund wrestles with Dodd-Frank law that tightened tor Gary Cohn in early 2017, powers and curbs on deriva- trade spat...... A4 more executive turnover. B12 rules on financial firms after paid dividends on Tuesday: tives, an outcome that is ex- U.S. banks log record Heard on the Street: China, U.S. An ex-Valeant executive the 2008 crisis. The House of Representatives pected to cement those provi- quarterly profit...... B12 tensions are new normal..... B14 was found guilty of defraud- ing the drug firm through a kickback scheme. B3 Trump Casts Doubt on Summit World-Wide Anger Over Tourist Hordes Lawmakers are moving Sparks Global Backlash to thwart Trump adminis- tration efforts to ease re- strictions on Chinese tele- com giant ZTE and other ‘Overtouristing’ strains vacation hot spots; the ‘Lord of the Rings’ effect sensitive technology. A1 Trump said he would BY RACHEL PANNETT realm of expert climbers. scotch a summit with Kim World of Travelers One tour group had to be unless the North Korean The number of people traveling QUEENSTOWN, New Zea- rescued after trying to walk leader first agreed to a list globally has more than doubled land—Towering mountain barefoot to Mount Ngau- of unspecified conditions. A6 in the past two decades ranges, forests and glacier- ruhoe, in apparent homage to The president is weighing fed rivers made New Zealand J.R.R. Tolkien’s Mount Doom. International arrivals, 1.25 measures to cut EU steel the perfect stand-in for Mid- Elected officials are in billions and aluminum exports to dle Earth in “The Lord of the weighing measures from new 1.00 the U.S. by about 10%, ac- Rings” movie series and a tourist taxes to tighter cording to EU officials. A6 cinematic billboard for the camper-van restrictions. One 0.75 Lt. Gen. Scott Miller was country’s natural beauty. town is considering shutting chosen as the next com- Today, jet boats rip down Wi-Fi at night to deter 0.50 mander of U.S.-led forces in rivers seeking the mythical campers. Queenstown, whose Isengard, where the wizard mayor says it has 120 visi- Afghanistan, officials said. A16 Gandalf was imprisoned. tors a year for every tax- 0.25 A longtime business “Freedom campers” in payer, is weighing whether

partner of Trump lawyer EVAN VUCCI/ASSOCIATED PRESS rented vans leave trails of to restrict Airbnb rentals. 0 Cohen has agreed to coop- EYE-TO-EYE: President Donald Trump and South Korean waste. Tens of thousands of On Waiheke Island off erate with prosecutors. A4 President Moon Jae-in on Tuesday discussed whether plans for a helicopter trips annually de- Auckland, protests broke out 1995 2000 ’05 ’10 ’15 summit with North Korean leader Kim Jong Un would pan out. A6 The House passed a bill posit visitors, some in flip- last year after double-decker Sources: World Bank; World Tourism giving patients with life- flops, on New Zealand gla- tour buses appeared, clog- Organization (2017) THE WALL STREET JOURNAL. threatening conditions ac- ciers that were once the Please see TRAVEL page A8 cess to unproven drugs. A2 Texas Democrats gave na- World’s Strangest Opera House tional party leaders the nomi- Amazon Bans nees they wanted in pivotal Makes Unusual Pitch to Locals Salesforce. House runoff elections. A5 Abrams won Georgia’s Dem- Customers iii ocratic primary in her bid to become the nation’s first black For Too Many Theater deep in the rainforest woos its #1 CRM. woman elected governor. A5 neighbors with mini-concerts at homes EPA chief Pruitt called safe Returns water “a national priority” af- Ranked #1 for CRM Applications based on IDC 2017 Market Share Revenue Worldwide. ter the agency reportedly tried BY KHADEEJA SAFDAR BY SAMANTHA PEARSON pink home downtown, where to block publication of a study AND LAURA STEVENS she scrapes together a living 19.6% on drinking-water hazards. A5 MANAUS, Brazil—It’s nearly giving dance classes. USC professors called for Amazon.com Inc. is banning lunchtime in the sweltering Lined up on plastic garden the school’s president to quit some shoppers from its e-com- Amazonian city of Manaus and chairs in her driveway is the amid a scandal over how the merce site for infractions such Angela Araújo is waiting for biggest crowd she could mus- university dealt with sexual- as returning too many items, the takeout she or- teronaThurs- misconduct allegations. A3 sometimes without telling dered: Handel, with day morning: a few 7.1% Died: Philip Roth,85, them what they did wrong. asideofMozart. retired and unem- Amazon has cultivated an Ms. Araújo, 53, ployed neighbors, 6.5% acclaimed novelist. A2 image as a customer-friendly can barely contain her 79-year-old 4.0% company, in part by making it her excitement as mother, the owner CONTENTS Opinion...... A13-15 easy for shoppers to send back her order pulls up of the local conve- Banking & Finance.... B12 Property Report... B6 3.2% Business News.. B3,5 Sports...... A12 items they don’t want. The in a clapped-out nience store and a Crossword...... A12 Technology...... B4 site’s lax return policies have Fiat Palio. It is Pe- Catholic missionary. Heard on Street. B14 U.S. News...... A2-5 conditioned consumers to ex- dro Panilha, the op- They are joined by 2013 2014 2015 2016 2017 Life & Arts...... A9-11 Weather...... A12 pect the same treatment from era house’s her 15 cats, one dog Markets...... B13-14 World News...... A6,16 Source: IDC, Worldwide Semiannual other retailers, adding to pres- sprightly pianist, and her beloved Software Tracker, April 2018. sure on brick-and-mortar joined by a portly Everaldo Barbosa parrot Nureyev, who > chains. But shoppers are find- opera singer is named after the ing out there are some cus- squeezed into a satin-lined Soviet-era ballet star. tomers Amazon has deter- waistcoat. This month, locals in this Please see RETURN page A6 “Oh my God! Just wait until impoverished city at the heart salesforce.com/number1CRM everyone sees this on Face- of the rain forest can get free CRM Applications market includes the following IDC-defined functional markets: Sales, Customer Service, Contact s Copyright 2018 Dow Jones & Center, and Marketing Applications. © 2018 salesforce.com, inc. All rights reserved. Salesforce.com is a registered Company. All Rights Reserved Amazon’s facial-recognition book!” Ms. Araújo shrieks, 15-minute opera performances trademark of salesforce.com, inc., as are other names and marks. tool fans privacy fears...... B4 twirling around her cramped Please see OPERA page A8 A2 | Wednesday, May 23, 2018 ****** THE WALL STREET JOURNAL. U.S. NEWS Acclaimed Novelist Philip Roth Dies at 85 Bill Clears

BY JEFFREY A. TRACHTENBERG through many of Mr. Roth’s Way for works. These include 2001’s Philip Roth, whose raucous, “The Dying Animal,” a short playful, elegant and often out- book in which the fictional lit- Use of Trial rageous novels about Jewish erature professor David life and sex and death and be- Kepesh—who is also featured trayal made him one of the in novels “The Breast” and Medicines country’s greatest novelists, “The Professor of Desire”— has died at age 85. must make a devastating deci- BY STEPHANIE ARMOUR The Associated Press, cit- sion involving a former lover ing Mr. Roth’s literary agent, that puts into question his WASHINGTON—Patients confirmed he had died. past moral choices. with life-threatening conditions Mr. Roth was born in New- Although much of his work would get the right to try un- ark, N.J. The aging industrial appeared autobiographical, proven drugs under legislation city featured in many of his Mr. Roth said in an interview that passed Tuesday in the works, dating to his first pub- with The Wall Street Journal House and now goes to Presi- lished book, 1959’s “Goodbye, that his personal history rep- dent Donald Trump, who is ex- Columbus,” a resented only a starting point. pected to sign it. PHILIP novella and “The person is a model who The passage of the so-called ROTH five short sto- then develops into some- Right to Try bill, in a 250-169 1933-2018 ries that won body,” he said. “You may be vote, follows months of debate the National with a real person, but you over whether expanded access Book Award have to come to inhabit that to investigational drugs is com- for fiction the following year. character yourself, and at that passionate or fuels false hope. During his career Mr. Roth point, at least the way I do it, The bill, sponsored by Sen. Ron wrote more than 30 books, ac- you leave the real person be- Johnson (R., Wis.), passed in cording to his publisher, hind.” the Senate in August. Houghton Mifflin Harcourt. As he aged, Mr. Roth be- Most patients already get ac- He tackled the issue of racial came increasingly focused on cess to unproven medicines un- identity in “The Human Stain” shorter novels that were in- der a compassionate-use pro- (2000); imagined what Amer- variably dark and confronta- gram overseen by the Food and ica might have been like if tional. These included four Drug Administration, agency offi- Charles Lindbergh had won works that Mr. Roth consid- cials say. But the bill would es-

the presidency in 1940 in BRIGITTE LACOMBEered FOR THE WALL STREET JOURNAL to be part of a connected sentially skirt the FDA’s normal “The Plot Against America” series: “Everyman” (2006), approval process to get trial med- (2004); and examined Ameri- tury in English,” said Ross great literary streaks, where be inextricably linked to one “Indignation” (2008), “The icines more rapidly to patients can dreams in the late 1960s Miller, who edited the defini- every book is first rate.” of the great comic, sexually Humbling,” (2009) and “Nem- with life-threatening illnesses. and early 1970s in “American tive collection of Mr. Roth’s Although Mr. Roth wrote charged novels of recent esis” (2010.) Republicans pushed for the Pastoral” (1997), for which he work for the Library of Amer- across a wide span of topics, memory, 1969’s “Portnoy’s “You have to be able to change, which Mr. Trump sup- won the 1998 Pulitzer Prize ica. “He was unrivaled, partic- he was inevitably drawn most Complaint,” in which the lead compress and condense,” said ported in his State of the Union for fiction. ularly in the period between closely to three: sex, death character appears almost Mr. Roth. “That’s the skill, to address, saying it would give pa- “He was the writer of the ‘The Counterlife,’ and ‘The and betrayal. overwhelmed with lust. condense and pack a punch at tients access to non-FDA-ap- second half of the 20th cen- Dying Animal.’ It’s one of the For many, Mr. Roth would Sexual desire resonates the same time.” proved drugs before it is too late. Some Democrats and pa- tient groups have argued it would usurp the FDA and leave Senators’ Identities Misused on FCC Website patients vulnerable to dangerous and possibly sham treatments. At a Wall Street Journal BY JAMES V. GRIMALDI someone posted opinions on A Wall Street Journal in- based on Title II, and denounce handing responsibility for in- health conference, FDA Com- the FCC website that were op- vestigation in December found Chairman Pai’s plans. Do what- ternet regulation back to the missioner Scott Gottlieb said Two senators this week posite to what they believed. nearly 7,800 people who said ever you can to dissuade him. Federal Trade Commission. his agency was “comfortable” called on the Federal Commu- “We were among those comments in their names that Thank you! Pat Toomey.” The Senate voted last week to with the right-to-try legislation nications Commission to fix whose identities were misused were posted on public federal Mr. Merkley, on the other reinstate the rules—a largely and could address any concerns the agency’s system for ac- to express viewpoints we do dockets at the FCC and other hand, supported the rules, but symbolic measure, because it “in implementation.” cepting online comments after not hold,” the senators wrote agencies were fakes. a comment under his name faces long odds of passing in Some Democrats argued that their names were used to post in a letter Monday to FCC Mr. Toomey supports and home address said, “They the House. the legislation will gut FDA opinions about so-called net Chairman Ajit Pai. “We are Mr. Pai’s proposal to scale back should be repealed.” Among their proposed re- oversight and fails to protect neutrality that they didn’t writing to express our con- the internet rules put in place Net-neutrality rules, ad- forms, the senators suggested patients from bad actors. write or authorize. cerns about these fake com- in the Obama administration. opted at the Obama-era FCC in the FCC require commenters “This will provide fly-by- The senators, Republican ments and the need to identify However, someone using Mr. 2015, required internet-service to fill out a Captcha—a system night physicians and clinics the Pat Toomey of Pennsylvania and address fraudulent behav- Toomey’s name and Senate of- providers to treat all online designed to prove humans opportunity to peddle false and Democrat Jeff Merkley of ior in the rulemaking process.” fice address wrote: “Please traffic equally. The Trump-era rather than bots provided the hope and ineffective drugs to Oregon, who have opposing Brian Hart, a spokesman for publicly support the FCC’s ex- FCC in December basically re- information—before posting a desperate patients,” said Rep. views on net neutrality, said Mr. Pai, declined to comment. isting net-neutrality rules pealed those rules, largely comment. Frank Pallone Jr. (D., N.J.). Supporters said the legisla- tion provides essential hope for fus (R., Pa.) at Pittsburgh’s patients facing terminal illness RULES Dodd-Frank Rollback Duquesne Club. and that the drugs patients will “Don’t just tell us how you get access to must have passed like [small banks], go out and initial safety trials. ContinuedfromPageOne WHAT GOES vote for this bill to help us” is “Why do you not want to al- A senior White House offi- u Bar for strictest bank rules how Tim Zimmerman, Stan- low these patients to exercise cial said the administration is raised to $250 billion in dard Bank’s chief executive their right to fight for their fu- wanted to help smaller lenders assets from $50 billion and the Independent Commu- ture?” said Rep. Michael Bur- and “recognized that this was nity Bankers of America’s gess (R., Texas), a physician. about as much as we could u Mortgage underwriting chairman, described their “These patients are our con- get.” The bill is one part of the standards and Volcker trading message to the lawmakers. stituents.” administration’s agenda to roll restrictions for small banks Mr. Hensarling met with Mr. The version of the legislation back Dodd-Frank rules, the of- Warner, who told him Demo- that passed Tuesday is broad ficial said. WHAT STAYS crats wouldn’t support addi- and allows patients access to an

The bill reflects the outline PETE MAROVICH/GETTY IMAGES u Consumer Financial tions to the Senate bill. investigational drug if the pa- agreed to by Messrs. Crapo and Republican Sen. Mike Crapo, left, put together a bipartisan Protection Bureau structure At a St. Patrick’s Day lunch, tient is diagnosed with a life- Cohn. It would raise to $250 compromise to overhaul the Dodd-Frank law despite opposition and oversight powers Mr. Cohn sought out GOP law- threatening disease or condition. billion from $50 billion the from Democratic Sen. Sherrod Brown. makers. He told House Majority —Kristina Peterson threshold at which big banks u Orderly Liquidation Leader Kevin McCarthy (R., Ca- contributed to this article. automatically face strict stress representing states that Mr. mittee, said he couldn’t support Authority to take over failing lif.): “This [bill] is not a fine tests and other rules. It would Trump won in 2016. the bill and ended his negotia- financial firms wine. It’s not getting better also make community banks el- During the negotiations, Mr. tions with Mr. Crapo. with time.” CORRECTIONS igible for relief from mortgage- Crapo rejected potentially con- That evening, at Ms. Heit- u Financial Stability Oversight Mr. Trump also called Mr. underwriting standards. troversial proposals, such as kamp’s Capitol Hill home, the Council and its power to Hensarling from the Oval Of- AMPLIFICATIONS Mr. Crapo, who declined to consumer bureau changes. He North Dakota senator and Mr. designate firms for stricter rules fice during a briefing on the comment, became Senate Bank- narrowed others to win Demo- Tester shared a beer and vowed bill’s status. ing Committee chairman in cratic support: Mortgage-un- to press on. The two began the u Rules on derivatives and “Jeb, I want the bill now,” U.S. holdings of European 2017. A conservative known for derwriting-standards relief process of finding co-sponsors debit-card fees Mr. Trump said. Union and Japanese stocks rose his “no drama” demeanor, he would go only to banks with by dividing up names in the “I informed him that negoti- by $1.124 trillion during the year told Mr. Cohn that he believed fewer than $10 billion in assets, Democratic caucus on a napkin. ations were going well and I to January. A Banking & Finance he could enact significant for example. On Nov. 13—two weeks Senate, House Financial Ser- thought we would have a path- article May 4 about Americans’ Dodd-Frank changes. Democrats, anxious to limit later—Mr. Crapo said he had a vices Committee Chairman Jeb way forward on our…bills overseas investing incorrectly The senator discussed with the bill’s scope, resisted some bipartisan deal. It split moder- Hensarling (R., Texas) invited soon,” Mr. Hensarling said, re- referred to U.S. holdings of eu- the former Goldman Sachs provisions related to capital ate Democratic supporters and lobbyists to a meeting in the ferring to the call. Mr. Hensar- rozone and Japanese stocks. Group Inc. executive the out- markets. Lawmakers also ulti- more-liberal opponents led by Rayburn office building and ling emerged from the brief lines of legislation rolling back mately didn’t include language Mr. Brown and Sen. Elizabeth vented that the Senate bill standoff without changes to the The odds of tossing a coin rules on smaller to medium- giving new class-action rights Warren (D., Mass.), who didn’t go far enough, attendees bill but with a commitment 30 times and getting heads size banks. Both agreed such to trial lawyers. thought the bill went too far said. Mr. Hensarling urged from Senate Majority Leader only three times are 1 in legislation would be worth do- Meanwhile, Mr. Cohn spoke to help an industry posting re- them to ask senators to negoti- Mitch McConnell (R., Ky.) to 264,468. The Everyday Math ing, even though the strategy with wary Democrats, some- cord profits. ate changes with the House. vote on a separate package be- column in Saturday’s Review would leave behind other GOP times daily, reassuring them Ms. Warren criticized other Banking groups instead fore the midterm elections. section incorrectly stated that priorities. They didn’t, for in- that the White House wouldn’t Democratic supporters by pressed for a quick House It is unclear what provi- the odds were 1 in 125,000. stance, try to reorganize the scuttle a limited deal. name in a fundraising email, a vote. Over Congress’s Easter sions will be included in the Consumer Financial Protection By Halloween, Sen. Sherrod move some colleagues felt break, community lenders met separate bill or whether it will Readers can alert The Wall Street Journal to any errors in news articles Bureau, a move backed by Re- Brown (D., Ohio), the liberal top crossed a line. for lunch with Reps. Steve Sti- have sufficient support to ad- by emailing [email protected] or publicans but opposed by Democrat on the banking com- After the bill passed the vers (R., Ohio) and Keith Roth- vance in the Senate. by calling 888-410-2667. Democrats. Mr. Crapo, in the previous THE WALL STREET JOURNAL Congress, had reached broad Bank Bill Could cial law, which sought to prevent in freeing our economy from agreement on such a package another financial crisis. overregulation,” said House (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) with four moderate Democrats: Spur Deal-Making The legislation leaves un- Speaker Paul Ryan (R., Wis.). Editorial and publication headquarters: Sens. Joe Donnelly (D., Ind.), touched most of Dodd-Frank’s Opponents argue it will 1211 Avenue of the Americas, New York, N.Y. 10036 Heidi Heitkamp (D., N.D.), Jon major planks, such as emer- bring back risks to the financial Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Tester (D., Mont.), and Mark Congress took a step Tues- gency government powers to system. Rep. Maxine Waters Postmaster: day to relax a wave of crisis- take over failing financial firms, (D., Calif.) said the legislation Send address changes to The Wall Street Journal, Warner (D., Va.). He wagered 200 Burnett Rd., Chicopee, MA 01020. he could win their support era restrictions placed on finan- and curbs on derivatives. “benefits Wall Street and the All Advertising published in The Wall Street Journal is subject to the applicable rate card, again, and that they would cial firms, as the House These provisions are ex- nation’s largest banks, which copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., bring additional members of approved a plan to ease rules pected to remain in place for are posting record profits.” 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to the Democratic caucus to se- for small and midsize banks. yearstocome. A central piece of the bill accept an advertiser’s order. Only publication of an advertisement shall constitute final cure the requisite 60 of 100 The House voted 258-159 The bill could encourage could relieve about two dozen re- acceptance of the advertiser’s order. Senate votes. to approve the bipartisan re- deal-making and make it easier gional banks from stricter rules. Letters to the Editor: Fax: 212-416-2891; email: [email protected] Democratic supporters in vamp of financial rules. Thirty- for banks to expand. The Sen- It will raise the threshold at the Senate—17 in all—say the three Democrats sided with Re- ate passed the legislation in which banks face tighter over- NEED ASSISTANCE WITH YOUR SUBSCRIPTION? legislation is needed to help publicans to pass the bill. March on a 67-31 vote, with sight to $250 billion in assets By web: customercenter.wsj.com; By email: [email protected] smaller, community banks un- President Donald Trump is support from 17 members of from the current $50 billion—a By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat duly affected by postcrisis reg- expected to sign the bill into law, the Democratic caucus. victory for midsize banks, which ulations. “Too big to fail had setting off a wave of deregula- Supporters say the bill will have long said they shouldn’t be REPRINTS & LICENSING become too small to succeed,” tory actions by federal agencies spur more lending and boost lumped in with the largest firms. By email: [email protected]; By phone: 1-800-843-0008 Ms. Heitkamp said. that will ease—but not disman- the U.S. economy. —Ryan Tracy Ten of them are also up for tle—the 2010 Dodd-Frank finan- “This is a major step forward and Andrew Ackerman GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS re-election in 2018, with seven THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | A3 U.S. NEWS Lava Reaches Site of Hawaii Power Plant

Officials fear toxic gas of the berm before it could rise enough to overflow. clouds could be created; Officials of Ormat, whose ‘we’re just at the mercy facility supplies power to Ha- waii Electric Light Co., didn’t of Mother Nature’ return an emailed request to comment. In a May 15 press re- BY JIM CARLTON lease, Ormat officials said they had taken precautionary mea- Hawaiian authorities scram- sures including shutting down bled to protect a major power the geothermal wells, placing plant from approaching lava physical barriers around them on Tuesday, in the latest and removing flammable mate- threat from renewed eruption rials from the facility. of the Big Island’s Kilauea vol- Hawaii Electric spokesman cano nearly three weeks ago. Jim Kelly said Tuesday the Hawaii County officials said utility has sufficient genera- the flow began Monday night tion from other power plants when one of more than 20 fis- on the Big Island to make up sures caused by the volcanic for the renewable plant being eruptions reactivated and sent taken out of commission. lava onto the property of Puna Meanwhile, hundreds of Geothermal Venture, a 38- people remain evacuated from megawatt plant that produces homes they fled after one of electricity by running a turbine the world’s most active volca- with superheated water from noes rumbled to life again. wells. If the molten lava com- As of Tuesday, 48 homes promises a well, emergency of- and other structures had been

ficials say that could set off MARIO TAMA/GETTY IMAGES destroyed, while injuries have clouds of flammable and poten- Molten lava erupted and streamed from a Kilauea volcano fissure near the Puna Geothermal Venture plant on Hawaii’s Big Island. been mostly minimal. About tially deadly hydrogen sulfide. 2,000 people live in homes in As a result, officials have keep the hot water at the bot- completed by midmorning well. “It really is uncharted Wendy Stovall, a U.S. Geologi- the eruption zone, but clouds been working with operators tom, and then they have Tuesday, when the lava flow territory,” said Garrett Kim, a cal Survey volcanologist, said of potentially harmful gas have of the plant, which is owned by moved to plug them with metal was reported stalled behind a longtime public safety officer the lava remained at least 11 drifted with the shifting winds Ormat Technologies Inc. of or other impermeable material, berm on the property. on the island. “Maybe the lava feet below the top of a vege- toward more populated areas, Reno, Nev., to safeguard the 10 said David Mace, a spokesman Officials say they aren’t could seal the wells under 20 tated berm on the plant prop- prompting health advisories. wells through a number of for the Federal Emergency sure the plugs and water tac- feet of rock, too. We really erty and was “very slow mov- “Unfortunately, we’re just steps. First, they have pumped Management Agency in Hawaii. tics will hold up under the don’t know.” ing.” She said lava would have at the mercy of Mother Na- cold water into the wells to That work had mostly been force of lava should it cover a At a press briefing Tuesday, to fill in a small valley in front ture,” Mr. Kim said. Calls Grow for USC Head’s Ouster

BY MELISSA KORN of a former health-center direc- and psychology who helped all need to work together to tor detailing complaints against write the letter. They hit 200 change the culture,” he said. Two hundred tenured pro- Dr. Tyndall dating back to 2000, names by Monday evening, and Efforts to reach Dr. Tyndall fessors from the University of and has said “it is not clear to- released the letter publicly on for comment were unsuccess- Southern California signed a day why” he was allowed to re- Tuesday, Mr. Simon said. ful. The Los Angeles Times letter calling for the school’s main in his position during that In the letter, faculty members said that in interviews with the president to step down amid span. Dr. Tyndall left last year from a range of departments say paper, he denied wrongdoing. an unfolding scandal over how Dr. Nikias “has lost the moral USC released an “action the university dealt with sex- authority to lead the University.” plan” Tuesday, including creat- ual-misconduct allegations Professors say the They say there is mounting evi- ing a centralized office of pro- against a longtime student dence that he didn’t protect stu- fessionalism and ethics, and re- health-center gynecologist. president ‘has lost dents, staff and colleagues from vamping reporting structures USC has been reeling in re- the moral authority “repeated and pervasive” sexual when complaints are made. USC cent days from a Los Angeles harassment and misconduct. also said it had let go two su- Times report detailing accusa- to lead the University.’ “The current administration pervisors from the student tions that gynecologist George has done some great things for health center in the wake of new Tyndall for decades conducted the university,” Mr. Simon said. complaints about Dr. Tyndall. improper pelvic exams on fe- “We feel, however, that the Board Chairman John Mork male students and made sexu- after reaching a settlement moral failings, the moral errors, said in a letter to the USC ally and racially inappropriate with USC, the school has said. outweigh those achievements.” community Tuesday that the comments. A handful of law-school fac- Dr. Nikias said in a state- board’s executive committee He was placed on leave after ulty members drafted the letter ment that he understands the has “full confidence in Presi- the school’s Office of Equity against the president, C.L. Max faculty’s anger and frustration, dent Nikias’ leadership, ethics, and Diversity received a com- Nikias, and began circulating it and is committed to rebuilding and values and is certain that plaint in June 2016. The school for signatures on Sunday, said their trust. “We all deeply care he will successfully guide our said it found files in the office Dan Simon, a professor of law about this university and we community forward.”

Catching Up While median home values in East Boston are lower than the city overall, they have risen at a faster rate recently. Percentage change in median home values: 125%

100 East Boston 75 CityofBoston

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TONY LUONG FOR THE WALL STREET JOURNAL Source: Zillow The possibility of an Amazon headquarters in East Boston has raised concerns about rising costs. THE WALL STREET JOURNAL. Prospect of Amazon Worries Some Cities YOU’VE GOT

BY JON KAMP fellow who focuses on housing pany. “That would create a lot Holding the line on prices markets and real estate. Recent of employment opportunities,” has proven hard. According to BOSTON—The possible ar- analysis from Brookings and said Debra Cave, who leads a Zillow, Boston’s median rent rival of a second Amazon real-estate firm Zillow indicate local civic group in East Boston. has risen about 47% to more SALE headquarters here is trigger- the Amazon project—as many Competing cities widely than $2,600 a month since late ing both hopes and apprehen- as 50,000 workers and 8 million view the Amazon headquarters 2010, the firm’s earliest re- sion in a neighborhood already square feet of office space— as a huge economic-develop- cords. Median home values in DESIGNER COLLECTIONS dealing with fallout from surg- could strain housing markets. ment draw that could have rip- the city have also soared. ing costs in a growing city. “I think a lot of places on ple effects across their econo- Rising costs have made East ARE UP TO The city has pitched East Amazon’s short list, it’s likely to mies, generating yet-more jobs Boston a neighborhood of Boston, an immigrant-filled drive up real-estate values and as other tech and service firms sharp contrasts. area of about 46,000 people, put pressures on specific neigh- cluster around. Amazon has Large residential projects are as a prime locale for Seattle- borhoods,” Ms. Schuetz said. estimated its investments in rising along the shoreline, and based Amazon.com Inc.’s next Concerns are bubbling up Seattle from 2010 through developers are remaking a street * home. While developers say even in places like Pittsburgh, a 2016 pumped an added $38 grid jammed with old apartment 40%FF gentrification came slowly modestly priced city compared billion into the city’s economy. buildings. Three-story buildings there, it is now in full swing, with other Amazon contenders. In Boston, Amazon would with renovated condos selling aided by a subway line under Some neighborhood advocates mark another success for a for about $500,000 stand near Boston Harbor offering quick there worry the development growing economy tethered to modest, low-rent apartments. commutes downtown. will trigger real-estate specula- the city’s concentration of top Meantime, a developer plans to Rising rents and displace- tion that boosts costs and universities and hospitals. Unre- replace the faded Suffolk Downs ment are already apparent in threatens lower-income resi- lated to the headquarters plan, thoroughbred track straddling what locals call Eastie, and dents in areas already pressured Amazon recently announced the line between East Boston some people worry the com- by an influx of technology jobs. plans to add 2,000 tech jobs in and neighboring Revere with a BARNEYS.COM NEW YORK BEVERLY HILLS SAN FRANCISCO pany moving in would further Zillow last month projected Boston’s Seaport district. huge mixed-use project. It CHICAGO BOSTON LAS VEGAS PHILADELPHIA SEATTLE pressure vulnerable residents. that landing the Amazon proj- Boston, a city of roughly would include city-mandated af- FOR INSIDER FASHION ACCESS: THEWINDOW.BARNEYS.COM “I think we should be con- ect in Pittsburgh would cause 673,000 people, grew about fordable housing units and, pos- cerned,” said Sal LaMattina, a annual rents, which are other- 8.5% between 2010 and 2016, sibly, Amazon. retired city councilor and life- wise forecast to drop, to in- according to census estimates, East Boston has become the time East Boston resident, crease by 0.9 percentage triggering a push by Mayor city’s epicenter for housing who has long advocated for point. The Nashville area was Martin Walsh’s administration displacement, according to neighborhood development. forecast to see the biggest im- to add housing, preserve af- housing advocates. City Life/ Boston isn’t alone: Most cit- pact of the finalists—an added fordable homes and aid at-risk Vida Urbana, a nonprofit, said ies on Amazon’s list of 20 final- 2.4-point increase, Zillow said. renters. In his second inaugu- it supported 71 households ists are grappling with the ef- Still, many officials and resi- ral address in January, the threatened with displacement fects of gentrification and dents in the 20 cities on Ama- mayor said, “Too many fami- there last year. *Up to 40 percent off regular prices on select clothing, shoes, and accessories for women, men, and children, as well as gifts for the home. rising costs, said Jenny zon’s list are excited about the lies are still being priced out —Keiko Morris Specific exclusions apply. See store associate for details. Schuetz, a Brookings Institution prospect of landing the com- of too many neighborhoods.” contributed to this article. A4 | Wednesday, May 23, 2018 PWLC101112HTGKBFAM123456789OIXX **** THE WALL STREET JOURNAL. U.S. NEWS In Trade Spat, Beijing Finds Ways to Win

BY GREG IP A deal may over time fight, stepping up customs prompt American farmers to inspections of U.S. cars and Among all the trade fights change their mix of crops to soybeans. that President Donald Trump garner better prices, but to- Mr. Trump has in effect has picked, his hand against tal U.S. production will, as done the same. His Com- China is the strongest. That always,belargelydeter- merce Department banned fight has eco- mined by global conditions. Americans from supplying ANALYSIS nomic, strategic Similarly, if U.S. shale pro- Chinese phone manufacturer and political ducers export more oil to ZTE Corp. because it had vio- logic that his China, they will sell less lated sanctions. When China confrontations with U.S. al- elsewhere. China may buy insisted those penalties be lies lack. more liquefied natural gas, eased as part of any trade Yet China, incredibly, ap- but that was probably inevi- talks, Mr. Trump agreed. pears to be winning. Though table: it is set to become the While Mr. Mnuchin said it is still early days, China world’s largest LNG importer the issues were “completely has thus far escaped the bulk anyway and the U.S. one of separate,” the U.S. is on the of threatened U.S. tariffs the three largest exporters. verge of easing the penalties while giving up almost noth- The promised Chinese on ZTE while China removes ing of substance. purchases might trim its some tariffs on farm prod- Mr. Trump initially trade surplus with the U.S., ucts. The apparent swap is seemed to have more stom- but not by anywhere near “pretty darned unusual,” said ach for confrontation with the $200 billion Mr. Trump one former U.S. trade official. China than his predecessors. has sought. More important, “The implication is that U.S. Instead, China has shrewdly that deficit has always been national security is tradable.” exploited his weak points: less of a problem than the When Mr. Trump first un-

his hopes for a breakthrough myriad ways China positions NG HANveiled GUAN/ASSOCIATED PRESS his sweeping actions with North Korea, a Chinese its own companies to grab An auto-parts market in Beijing. China said it would ease joint-venture rules for foreign car makers. against China last month he client; a low threshold for market share from foreign warned that the fight might political pain, especially in rivals, for example by acquir- champions over foreign ri- ing “the structural problem”: sought to keep national se- entail “a little pain.” But his Republican farm states; and ing the latter’s intellectual vals. For example, it requires China’s limited manufactured curity and trade relations own tolerance for pain ap- a readiness to play China’s property via compulsory li- foreign electric-vehicle mak- imports, which it wants to separate. But to maximize pears limited. Though the game of using legal proceed- censing, joint ventures or ers to use Chinese-made bat- reduce further. the chance of a breakthrough U.S. depends much less on ings as a commercial bar- theft, and limiting what for- teries while permitting Chi- U.S. officials may yet ex- on denuclearization with exports to China than the re- gaining chip. eign companies may do in nese-owned Volvo Car Group tract more substantive con- North Korea at a June 12 verse, China targeted farm Over the weekend, the U.S. China. to use superior South Ko- cessions in coming talks with summit, he, like his prede- exports from Republican agreed to suspend, for now, The U.S. Treasury is ex- rean-made batteries. China. If “we don’t get what cessors, is avoiding antago- states important to Novem- tariffs on up to $150 billion ploring how to restrict Chi- Thus, China’s biggest com- we want, the president can nizing its patron, China. ber’s midterm elections. That in Chinese imports. China in nese investment in the U.S., mitment so far is “to buy always put tariffs back on,” China has long used selec- may explain why U.S. offi- turn agreed to buy more en- and China has said it would more of the things that it Treasury Secretary Steven tive enforcement of its laws cials have prioritized avoid- ergy and agricultural prod- allow foreign companies to likely would buy more of no Mnuchin said Monday. Yet such as over health and anti- ing Chinese retaliation. ucts. That is hardly a game manufacture cars there with- matter what,” Brad Setser, a U.S. officials have shown lit- trust as a negotiating chip China still holds the changer. It will likely just re- out joint ventures. Yet it still trade expert at the Council tle appetite for exercising with foreign companies and weaker hand in this trade direct some sales that would has countless, often subtle, on Foreign Relations, wrote their leverage over China. governments. It has de- dispute—but it has played have happened anyway. ways to promote its domestic on Twitter, without address- Mr. Trump had initially ployed similar tactics in this that hand far better.

of China’s negotiating agenda. merce Department banned U.S. CHINA But they have either been re- companies from selling to ZTE, Cohen jected or deferred by the U.S. Mr. Trump suggested he was In this case, said several peo- considering reversing the pen- ContinuedfromPageOne ple briefed on the matter, Trea- alty, tweeting this month that Associate, heads of the U.S. trade repre- sury officials explored fulfilling he and Mr. Xi were “working to- sentative’s office and Treasury China’s request. National-secu- gether to give massive Chinese and Commerce departments to rity officials objected and the phone company, ZTE, a way to Prosecutors reject any proposals to ease ex- matter was dropped, but not get back into business, fast.” He port controls on technology as a without hard feelings among se- added: “Too many jobs in China way to boost sales to China. curity officials who felt the ex- lost. Commerce Department has Make Deal The letter, led by Senate Ma- ploration suggested naiveté on been instructed to get it done!” jority Whip John Cornyn of the part of U.S. negotiators. In addition to ZTE’s alleged BY NICOLE HONG Texas and signed by other top Treasury spokesman Tony sanctions violations, U.S. offi- AND MARK MAREMONT Republicans and Democrats— Sayegh said: “Treasury never cials have warned for years that including Sen. Marco Rubio (R., considered this action and the telecom firm’s equipment, A longtime business part-

Fla.), Minority Leader Chuck CHIP SOMODEVILLA/GETTYviewed IMAGES any such proposal as a along with equipment made by ner of Michael Cohen, Presi- Schumer of New York and Sen- A letter by Senate Majority Whip John Cornyn and other senators nonstarter.” rival Huawei Technologies Co., dent Donald Trump’s personal ate Banking Committee ranking warned against easing export controls on sensitive technology. Separately, the measure tar- could be used to spy on Ameri- lawyer, has agreed to cooper- Democrat Sherrod Brown of geting a ZTE deal was the latest cans, accusations that both ate with prosecutors, accord- Ohio—also condemned the pro- American companies that al- “We strongly urge you to indication of growing congres- companies have denied. ing to people familiar with the spective deal on ZTE. ready sold parts to it. reject any proposal by China to sional opposition. The provi- Sen. Tim Scott (R., S.C.), one matter. As part of the ZTE negotia- The White House has denied loosen existing restrictions on sion, introduced by Sen. Chris of the Senate bill’s co-sponsors, Evgeny “Gene” Freidman, a tions, Beijing would remove tar- it is using enforcement actions the export or other transfer of Van Hollen (D., Md.), would pro- plans on introducing the ver- New York City taxi mogul, iffs on billions of dollars of U.S. against ZTE as a bargaining these sensitive U.S. technolo- hibit the president from chang- sion approved by the Senate pleaded guilty Tuesday in Al- farm products, according to chip in the talks with China. gies,” the letter said. “Any such ing the penalties on sanctioned Banking Committee as an bany County court to one people with knowledge of the ZTE has been protesting the move would bolster China’s ag- Chinese telecommunications amendment to the must-pass count of criminal tax fraud. As matter in both countries. The Commerce Department’s deci- gressive military moderniza- firms until the administration National Defense Authorization part of his plea agreement, he Trump administration also is sion last month to ban Ameri- tion and significantly under- certifies to Congress that the Act, priming it for passage by agreed to help prosecutors seeking Beijing’s help to facili- can companies from selling it mine long-term U.S. national company in question has com- the full Senate as early as next with state or federal investiga- tate denuclearization talks with products, which swiftly crippled security interests.” plied with U.S. law for a year. month, according to a person tions, people familiar with the North Korea. the Chinese firm. In early May, China deliv- The House Appropriations familiar the discussions. matter said. It is likely he will In remarks at the White On the export-control issue, ered to U.S. negotiators in Bei- Committee passed a similar Another version of the bill assist federal prosecutors in House on Tuesday, Mr. Trump the Cornyn letter warned the jing a trade proposal calling bill recently. And the Cornyn initially introduced by Rep. Manhattan with their probe said he envisioned a fine of Treasury and Commerce depart- for the U.S. to ease export letter also blasted any easing Robert Pittenger (R., N.C.) was into Mr. Cohen, one of those more than $1 billion for ZTE, ments and the U.S. trade repre- controls, especially on semi- of penalties against ZTE. The unanimously approved by the people said. potentially reaching $1.3 billion, sentative’s office against easing conductors. Beijing asked the administration shouldn’t House Financial Services Com- Last month, federal agents and that he believed ZTE should export controls on militarily im- U.S. to allow the sale of those “compromise lawful U.S. en- mittee on Tuesday. It is ex- raided Mr. Cohen’s office, install new leadership and buy portant technology, a move that high-tech goods that aren’t forcement actions against se- pected to win the approval of home and hotel room as part more American products. He some in the administration have subject to export controls in rial and premeditated viola- the full House as soon as next of an investigation into possi- said he was concerned about been considering as a way to other Western nations. Such tors of U.S. law, such as ZTE.” month, according to a person ble bank fraud and campaign- any action against ZTE hurting boost exports. requests have long been part Just weeks after the Com- familiar with deliberations. finance violations related to Mr. Cohen’s efforts to raise cash and conceal negative in- formation about Mr. Trump Intelligence Firm Had Alliance during the 2016 campaign, ac- cording to people familiar with the investigation. With Cambridge Analytica Manhattan federal prosecu- Home Security. tors have said the seized ma- terials are largely focused on BY BYRON TAU partnership was intended in Cambridge Analytica didn’t Mr. Cohen’s “personal busi- Done Right. AND REBECCA BALLHAUS part to help win government respond to requests for com- ness dealings.” The search contracts—something that ment. warrant obtained by federal WASHINGTON—A company Cambridge and its parent Marc Mukasey, a lawyer investigators for the raids au- Introducing the all new SimpliSafe. owned by Joel Zamel, an Is- company, SCL Group, were ag- for Mr. Zamel, said his client thorized seizure of documents raeli entrepreneur whose work gressively seeking to do as “had nothing to do with Cam- related to Mr. Cohen’s taxi me- It’s smaller. Faster. Stronger than ever. has drawn the scrutiny of spe- their allies in the Trump ad- bridge Analytica.” He has pre- dallions, among other things, Engineered with a single focus: to protect. cial counsel Robert Mueller, ministration took power, ac- viously said investigators people familiar with the inves- formed a strategic partnership cording to people familiar have told him Mr. Zamel isn’t tigation said. More than easy to use: with a data firm for President with the efforts. a target of the Mueller inves- The medallions, issued by a It’s downright delightful. Donald Trump’s campaign in a The existence of the memo- tigation. A person familiar city agency and required for joint bid to win business from randum of agreement is an ex- with the memo between Cam- running a taxi, are bought and All at prices that are fair and honest. the U.S. government and other ample of how the president’s bridge and Psy-Group said it sold on a secondary market clients after the 2016 election, allies sought to gain entry and was signed without Mr. that has seen prices drop according to people familiar influence in Washington after Zamel’s involvement. steeply with the rise of ride- with the matter. the election. Mr. Zamel has met with sharing services such as Uber Psy-Group, one of Mr. Mr. Mueller’s investigators, and Lyft. Zamel’s firms, signed a memo- who appear to have expanded Mr. Cohen, who hasn’t been randum of understanding with Psy-Group’s owner, their inquiries to questions charged with a crime, has de- Cambridge Analytica LLC, a about the influence of a Gulf nied wrongdoing. digital firm that helped propel Joel Zamel, has met monarchy during the 2016 The investigation in Man- Mr. Trump to the presidency, with special-counsel election, the Journal has pre- hattan followed a referral by these people said. Facebook viously reported. Mr. Mueller the office of special counsel Inc. in March suspended Cam- investigators. is investigating whether Robert Mueller, who is investi- bridge over allegations that it Trump associates colluded gating whether associates of improperly harvested the data with Russia in the 2016 U.S. Mr. Trump colluded with Rus- of millions of Facebook users, election. Mr. Trump denies sia’s efforts to interfere in the accusations that in part led to SCL Group won a $500,000 colluding with Russia, and 2016 presidential election. Mr. the firm’s closure earlier this contract from the State De- Moscow denies that it med- Trump has denied any collu- month. partment starting in February dled in the election. sion and Russia has denied The Dec. 14, 2016, memo- 2017 aimed at providing “tar- In the months before the meddling. randum, as described to The get audience research,” ac- 2016 election, Mr. Zamel met Patrick J. Egan, a lawyer for Wall Street Journal, outlines a cording to federal records. No with Donald Trump Jr., Mr. Mr. Freidman, declined to partnership whereby the two government contracts have Trump’s eldest son, at Trump comment. A spokesman for firms could cooperate on a been awarded to the Psy- Tower along with George Na- the U.S. attorney’s office for case-by-case basis to provide Group, according to public re- der, a top adviser to the the Southern District of New Right now get free shipping t intelligence and social-media cords, though not all govern- crown prince of the United York, which is leading the services, or pitch business to ment contracts—for example, Arab Emirates, to discuss an probe into Mr. Cohen, also de- SimpliSfe.com/WS an array of clients. in the arena of intelligence offer from Messrs. Zamel and clined to comment. A person familiar with the and foreign policy—are pub- Nader to help boost the cam- News of Mr. Freidman’s co- work of Psy-Group, a private licly disclosed. paign, the Journal has previ- operation was first reported intelligence firm, said the A spokesman for SCL and ously reported. by the New York Times. THE WALL STREET JOURNAL. ****** Wednesday, May 23, 2018 | A5 U.S. NEWS EPA’s Pruitt Says Texas Delivers for Democratic Brass BY JANET HOOK Drinking-Water AND REID J. EPSTEIN Texas Democrats gave na- tional party leaders the nomi- nees they wanted in pivotal Safety Is Priority House runoff elections Tuesday, including one in a bitter con- BY HEIDI VOGT state environmental officials test that pitted the party estab- and other groups came after a lishment against its progressive WASHINGTON—Environ- media report last week that activist wing. mental Protection Agency Ad- the agency had tried to block In Houston, Lizzie Pannill ministrator Scott Pruitt said the release of a study on the Fletcher, a lawyer favored by keeping chemical contamina- health dangers posed by the the Democratic establishment, tion out of drinking water is “a chemicals. defeated Laura Moser, a pro- national priority,” a week after Politico reported the effort gressive activist who pushed the agency reportedly tried to to block publication of the for a bolder party strategy. At block publication of a study on findings by the Health and Hu- stake in that primary was the drinking-water hazards. man Services Department, chance to run against GOP Rep. At a meeting Tuesday, which based on emails released in re- John Culberson, a top Demo- had been scheduled in March, sponse to a Freedom of Infor- cratic target because Hillary before media reports on the mation Act request. Clinton narrowly won the dis-

The meeting, billed as a trict in 2016. JOHN BAZEMORE/ASSOCIATED PRESS “National Leadership Summit The DCCC had used its mus- Stacey Abrams is the first black woman to win a major party nomination for governor anywhere. Agency tried to block to take action on Per- and cle to sideline Ms. Moser be- Polyfluoroalkyl Substances,” cause party leaders believed Georgia Candidate Politics at Rutgers University. Harris of California and Bernie publication of a study was scheduled in March. she would be a weak general “I am so grateful to the Sanders of Vermont, two lead- Three news outlets—the As- election candidate because of Makes History thousands of you in this room ers of the Democratic Party’s on hazards, according sociated Press, CNN and E&E her controversial writings. and around this state and liberal wing in Washington. to media reports. News—said they were barred In West Texas, Democratic around the country who have But Ms. Abrams has been from attending opening re- voters picked former Air Force Stacey Abrams won Geor- joined me on this drive to his- dogged by questions about her marks on Tuesday. intelligence officer Gina Ortiz gia’s Democratic primary for tory,” Ms. Abrams said in her personal finances, issues that “The Environmental Protec- Jones, who was also backed by governor Tuesday, setting her victory speech in Atlanta. are likely to receive a full hear- study, Mr. Pruitt announced a tion Agency’s selective barring the party establishment, over up for a general election in The Republicans are headed ing from whichever Republican four-part plan to address dan- of news organizations, includ- an acolyte of Vermont Sen. Ber- which she is bidding to become to a July runoff election after wins the July runoff. gers from one group of poten- ing the AP, from covering to- nie Sanders. In Dallas, DCCC- the nation’s first black woman none of the six candidates run- Ms. Abrams has argued tially hazardous chemicals. day’s meeting is alarming and backed Colin Allred, a former elected governor. ning took 50% of the GOP pri- that her financial status makes The chemicals—called per- a direct threat to the public’s NFL player, easily beat his op- The Associated Press de- mary vote. The runoff will pit Lt. her more sensitive to the needs fluoroalkyls and polyfluoroal- right to know about what is ponent, a businesswoman. clared Ms. Abrams, a former Gov. Casey Cagle against Brian of working people. In her most kyls—can be found in electron- happening inside their govern- But in Kentucky, an under- minority leader of the Georgia Kemp, the Georgia secretary of recent disclosure filed with the ics, nonstick cookware, stain- ment,” AP Executive Editor dog political novice—former state House, the winner in the state, according to the AP. state, she listed her net worth resistant carpets and foam Sally Buzbee said in a state- Marine fighter pilot Amy intraparty contest against Sta- Ms. Abrams ran on a plat- at about $110,000. She also re- used by firefighters. The ment on Tuesday. McGrath—defeated Lexington cey Evans, a former state rep- form of improving education, ported about $174,000 in chemicals are particularly E&E and CNN confirmed Mayor Jim Gray, who had been resentative. She is the first health care and transit. The 44- credit-card and student-loan prevalent around military that their reporters were also recruited by the DCCC to run black woman to win a major year-old Yale-educated lawyer, debt, and about $54,000 in bases, possibly because of fire- turned away. Reporters from against her in the primary. party nomination for governor who has written romance nov- back taxes and penalties to the fighting exercises at the bases. The Wall Street Journal, Polit- Texas and Kentucky were two anywhere, according to the els in her spare time, has en- Internal Revenue Service. Mr. Pruitt said he takes the ico, the Hill and others were of four states holding primaries Center for American Women in dorsements from Sens. Kamala —Reid J. Epstein issue of contamination seri- present at the meeting. The and runoff elections Tuesday ously. “It’s clear that this issue EPA said there wasn’t enough that underscored the political is a national priority,” Mr. room to accommodate all re- prominence of women in the who support abortion rights. progressive, activist wing in lerno in a Dallas area district. Pruitt said. porters who wished to attend. 2018 elections. In Georgia, two The DCCC tried to undercut the midterm campaign. Insiders Mr. Allred, who is now a civil He said the EPA will evaluate “This was simply an issue of women ran against each other Ms. Moser before the district’s argue Ms. Fletcher’s approach rights attorney, will face GOP the need for a maximum allow- the room reaching capacity, in the Democratic gubernatorial seven-candidate primary in will appeal to independents and Rep. Pete Sessions, who had no able amount of the chemicals, which reporters were aware of primary, and the winner, Stacey March by releasing opposition disaffected Republicans with a Democratic opponent in 2016. take steps to designate them as prior to the event. We were Abrams, has a shot at becoming research about potentially con- centrist message. Liberal activ- Democrats see promise now be- “hazardous substances,” de- able to accommodate 10 news the first black woman governor troversial writings of hers. But ists say the party should try to cause Mrs. Clinton beat Donald velop groundwater-cleanup rec- outlets and provided a live elected in the country. the tactic boomeranged on the do a better job of mobilizing Trump in the district in 2016. ommendations by the fall, and stream for those we could not The runoff in Texas’ Seventh party, giving Ms. Moser a fund- core supporters and inspiring And in a district that collaborate with other agencies accommodate,” EPA spokesman Congressional District in Hous- raising boost and propelling new voters to show up with a stretches from San Antonio to and states to set guidelines on Jahan Wilcox said in an email. ton also pitted two women her to the runoff election. bold liberal message, as Ms. El Paso, Ms. Ortiz Jones de- the use of a specific chemical The agency opened up an after- against each other. Ms. Fletcher The choice in that race re- Moser advocates. feated Rick Treviño, a public in the group, known by the noon session to all media that scored the endorsement of EM- flected a broader debate among In other Texas runoffs, for- school history teacher, who brand name GenX. previously was to be closed to ILY’s List, the influential politi- Democrats between the party mer NFL linebacker Mr. Allred says he was inspired to run by Mr. Pruitt’s comments to the press. cal group that backs women establishment and its more beat businesswoman Lillian Sa- Mr. Sanders.

isn’t a substitute for a plan.

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WEALTH PLANNING | T RUSTANDESTATESERVICES | INVESTMENT MANA GEMENT |PRIVATE BANKING * *Private Banking is the marketing name for an offering of M&T Bank deposit and loan products and services. Investments:•AreNOTFDIC-Insured•HaveNOBankGuarantee•MayLoseValue WilmingtonTrustisaregisteredservicemark.WilmingtonTrustCorporationisawhollyownedsubsidiaryofM&TBankCorporation.WilmingtonTrustCompany, operating in Delaware only, Wilmington Trust, N.A., M&T Bank, and certain other affiliates provide various fiduciary and non-fiduciary services, including trustee, custodial, agency, investment management, and other services. International corporate and institutional services are offered through Wilmington Trust Corporation’s international affiliates. Wilmington Trust Investment Advisors, Inc., a subsidiary of M&T Bank, is an SEC-registered investment advisor providing investment management services to Wilmington Trust and M&T affiliatesandclients.Loans,creditcards,retailandbusinessdeposits,andotherbusinessandpersonalbankingservicesand products are offered by M&T Bank, member FDIC. ©2018 Wilmington Trust Corporation and its affiliates. All rights reserved. 老吉首发，未经许可不得转载。 A6 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. WORLD NEWS TrumpSows Doubt About Korea Summit

President says yang undertake complete, ver- ifiable and irreversible scheduled meeting denuclearization. with Kim Jong Un is Last week, North Korea lobbed three harshly worded subject to conditions statements at the U.S. and South Korea through its state BY MICHAEL C. BENDER media. One of them, attributed to Kim Kye Gwan, Pyongyang’s WASHINGTON—President longtime leading figure on nu- Donald Trump said he would clear negotiations, threatened scotch a planned summit with to pull the plug on the June 12 Kim Jong Un unless the North summit if the U.S. was going Korean leader first agreed to a to focus on North Korea’s list of unspecified conditions, “unilateral nuclear abandon- adding new uncertainty to the ment.” meeting scheduled for Singa- Victor Cha, who was a pore in just three weeks. White House National Security Mr. Trump, speaking Tues- Council expert on Asia during day before a White House the George W. Bush adminis- meeting with South Korean tration, said the fate of the President Moon Jae-in, said he summit would hinge on how would insist on the full denu- wide a gap remained between clearization of the Korean the two countries on denucle- Peninsula and on other com- arization, and whether Mr. mitments from Mr. Kim. “I Trump would be willing to ne- don’t want to waste a lot of gotiate those differences. time, and I’m sure he doesn’t “Trump really wants this want to waste a lot of time. So meeting, but I think he is com- there’s a very substantial ing to the realization that,

chance that it won’t work out. YONHAP/EPA/SHUTTERSTOCK with North Korea, nothing is And that’s OK.” South Korean President Moon spoke with U.S. Secretary of State Mike Pompeo and national security adviser John Bolton on Tuesday. ever easy,” Mr. Cha said. “This Mr. Trump aimed to shift is not going to be a situation the burden of the summit back something that maybe has “I don’t think there will be in charge is President Trump.” cumspect about his demands. where he walks into the room to Mr. Kim, whose deputies never been done before,” said positive developments in his- Mr. Moon outlined his He declined to describe the and North Korea has made a surprised the White House last Mr. Trump, who estimated the tory if we just assume that be- terms for a successful summit, conditions he was seeking, strategic decision to give up week with a round of aggres- odds for the meeting at 50-50. cause it all failed in the past it saying that it would include a while saying later that he everything to be embraced by sive language that suggested “If you look 25 years into the will fail again,” Mr. Moon said. formal end to the Korean War, would insist on denucleariza- the world, and Trump walks unilateral nuclear disarma- future—50 years into the fu- “There have been many agree- complete denuclearization of tion. “I have a very strong out with a crate full of nuclear ment was a deal breaker for ture—he will be able to look idea how it takes place,” Mr. warheads.” the high-level talks. back and be very proud of ‘I don’t want to waste a lot of time, Trump said about denuclear- Secretary of State Mike Despite the doubts, the U.S. what he did for North Korea, ization, adding that it “must Pompeo said the U.S. was still president kept the door open and actually for the world.” and I’m sure he doesn’t.’ take place.” trying to ensure the two sides for the summit, and sought to Mr. Moon, meanwhile, Mr. Moon’s visit to Wash- have a “common understand- lure Mr. Kim with promises of struck a reassuring tone. He ington—the sixth time he has ing” of “the contents of what global fame and fortune. The acknowledged growing skepti- President Donald Trump met with Mr. Trump—came as will be discussed.” U.S. president offered to guar- cism around the summit as he the historic planned meeting Mr. Pompeo said he hoped antee Mr. Kim’s safety, and encouraged Mr. Trump to push ments between the United North Korea, a permanent between U.S. and North Ko- that work would be completed added that China, Japan and forward, praising the U.S. States and North Korea previ- peace declaration on the Ko- rean leaders looked increas- in time for the summit to take South Korea planned to invest president for “dramatic and ously, but this will be the first rean Peninsula, and restoring ingly at risk, with growing place on June 12 but wasn’t “very large sums of money” in positive change” and saying he time that there will be an diplomatic relations between doubts about North Korea’s sure. North Korea. had “every confidence” of a agreement between the lead- Washington and Pyongyang. commitment to the U.S.’s long- —Michael R. Gordon “He has a chance to do successful summit. ers. And, moreover, the person Mr. Trump was more cir- standing demand that Pyong- contributed to this article. U.S. Takes Aim at European Metals WORLDWATCH UNITED KINGDOM minutes to last week’s policy BY EMRE PEKER global trade issues that both meeting, when the benchmark sides see as priorities. BOE Maintains Selic rate was held at 6.5%. BRUSSELS—President Don- If the White House grants Outlook for Key Rate The bank said a weakened ald Trump is weighing mea- “unlimited” waivers to the bloc, real could fuel a rise in import sures to cut European Union EU leaders said, Brussels would The Bank of England may prices, reducing the likelihood of steel and aluminum exports to enter into talks with Washing- raise its key interest rate in “a inflation ending the year below the U.S. by about 10%, in a sign ton on slashing tariffs and im- few months” if the U.K. econ- the official 4.5% target. the bloc’s concessions to secure proving regulatory cooperation. omy rebounds from a first-quar- —Paulo Trevisani tariff exemptions aren’t meeting The bloc also would be open ter slowdown, Gov. Mark Carney White House demands, EU offi- to working with the Trump ad- said. MYANMAR cials familiar with the talks said. ministration to overhaul the The central bank left its key Washington proposed two World Trade Organization and interest rate unchanged at its Watchdog Reports options for Brussels: a quota deepen energy links—a nod to May meeting, having signaled Killings by Rohingya fixed at 90% of U.S. imports Europe potentially buying U.S. earlier in the year that it might from the EU in 2017 and a tar- liquefied natural gas. move at that gathering. A Rohingya Muslim militant iff-rate quota that would target “Is this going to be enough, Mr. Carney told lawmakers on organization slaughtered dozens the same 10% reduction via I’m not sure, frankly,” Ms. Tuesday that the central bank of Hindus in Myanmar last year levies, Poland’s Entrepreneur- Malmström said. “I think they continues to expect to raise its amid violence that included the ship and Technology Minister don’t think it’s enough.” key interest rate gradually over military’s bloody campaign that Jadwiga Emilewicz said Tues- The EU has readied coun- coming years, while signs of a forced some 700,000 Rohingya day after EU governments dis- termeasures, including €2.8 rebound in growth may come to flee the country, a report re- cussed U.S. trade relations. billion ($3.3 billion) worth of soon. leased Tuesday by Amnesty In- “We are under the impres- levies against American ex- —Paul Hannon ternational said.

sion that somehow they want JASPER JUINEN/BLOOMBERG NEWS ports that can swiftly go into Both Muslims and Hindus are to limit steel imports to the Workers on the floor of an aluminum plant in Essen, Germany effect if the president doesn’t BRAZIL minorities in Buddhist-dominated U.S.,” European Trade Com- exempt the bloc from his tar- Myanmar, but the Rohingya missioner Cecilia Malmström their scope and details aren’t from EU members in her ef- iffs. Brussels also asked to join Bank Minutes Cite Muslims have been the target of said of continuing negotiations yet clear, EU officials said. forts to secure waivers. China’s WTO challenge against Currency Worries focused persecution for decades. with Washington before brief- A spokesman for Commerce A quota at 90% of 2017 ex- Washington’s measures. The Myanmar government con- ing EU governments. “Alumi- Secretary Wilbur Ross didn’t ports would be “illegal” and “We want to avoid a trade Concerns about global eco- siders them illegal immigrants num as well,” she said, with- comment on the quota proposal. Europe wouldn’t accept it, an war,” German Economic Af- nomic turbulence weakening the from Bangladesh and a security out providing details. Ms. Malmström has been in EU diplomat said. fairs and Energy Minister Pe- local currency were behind its threat. The EU is still trying to fig- regular contact with Mr. Ross U.S. intentions to target Eu- ter Altmaier said Tuesday in decision to keep interest rates The Arakan Rohingya Salva- ure out precisely what Mr. since Mr. Trump’s decision in ropean exports come despite a Brussels. “It’s important to unchanged for the first time in tion Army didn’t respond to in- Trump wants ahead of his March to impose tariffs of 25% four-point plan EU leaders put come to an agreement that is 19 months, the central bank quiries about the Amnesty re- June 1 deadline, when the on steel and 10% on aluminum. forth during their summit last in the interest of both sides.” said. port in public statements. The bloc’s temporary exemptions She was expected to hold an- week, seeking to woo Mr. —William Mauldin Renewed risks of higher in- group has generally insisted that will expire, European officials other round of talks with her Trump with promises of mar- in Washington and terest rates in developed econo- it targeted only Myanmar secu- said. Quotas are one idea U.S. counterpart on Tuesday, ket access for American ex- Valentina Pop in Brussels mies threaten emerging-market rity personnel. floated by U.S. negotiators, but seeking to build on feedback ports and an alliance to tackle contributed to this article. currencies, the bank said in the —Jon Emont FROM PAGE ONE

ployee—responding on behalf get them banned, but the com- ceiving compensation for writ- RETURN of Mr. Bezos—notified him he pany says in its conditions of ing reviews. Cases are was reinstated. use that it reserves the right typically evaluated by a hu- “We want everyone to be to terminate accounts on its man after algorithms surface ContinuedfrompageA1 able to use Amazon, but there sole discretion. Some people the account as suspicious, they mined aren’t worth keeping. are rare occasions where said they have also received said. Nir Nissim received an someone abuses our service email alerts from Amazon It tends to happen when email in March notifying him over an extended period of about their return activity. “you’re creating a lot of head- that his account had been time,” an Amazon spokesman Amazon declined to disclose aches for Amazon,” said Chris closed because he violated the said last week. “We never take how many customers had been McCabe, a former policy en- company’s conditions of use these decisions lightly, but subjected to such a ban. forcement investigator at Am- agreement. “You cannot open with over 300 million custom- Retailers lose billions of azon and now a consultant at a new account or use another ers around the world, we take dollars annually because of re- EcommerceChris LLC. account to place orders on our action when appropriate to turn abuse or fraud, which in- Shoppers also are more site,” Amazon wrote. protect the experience for all cludes behavior such as re- likely to get flagged if they The 20-year-old, who works our customers.” questing a refund for items mark an atypical reason for

at an ice cream shop in Israel, The spokesman said Ama- RICK T. WILKING/GETTYthat IMAGES are used, stolen or bought their returns. For example, an said he had a $450 gift-card zon encourages customers to Amazon has encouraged customers to contact the company if they somewhere else. The Wall account could get flagged if a balance that he could no lon- contact the company if they think that they have been mistakenly banned. Street Journal previously re- customer says an item didn’t ger use. “I contacted them al- think they have been mistak- ported that chains such as arrive as described when the most every day for a week or enly banned. how much I buy,” she said. orders. “I didn’t get any warn- Best Buy Co. and J.C. Penney other 99% of customers who two,” he said. Shira Golan, 23, said she Earlier this month her ac- ing,” she said. “If I knew this Inc., have hired a third-party made the return did so simply Eventually a customer-ser- spends thousands of dollars a count was shut down without would happen, I wouldn’t buy firm called Retail Equation to because they didn’t want it. vice agent told him that his year on Amazon, buying ev- explanation, she said. The ac- clothes and shoes on Ama- develop a “risk score” on each “If your behavior is consis- account had been closed due erything from clothes and tuary, who lives in New York zon.” customer for the purpose of tently outside the norm, to his return activity. Mr. Nis- shoes to groceries and toilet- City, said she called and Dozens of people have com- policing returns. you’re not really the kind of sim said he has returned just ries. She said she has asked emailed the company to learn plained on Twitter, Facebook According to former Ama- customer they want,” said one item this year—a com- for refunds in the past on a reason for the closure. On and other online forums that zon managers, the company James Thomson, a former se- puter drive—and four items clothing and shoe orders, May 10, she received a re- Amazon closed their accounts terminates accounts for be- nior manager at Amazon and last year. He sent more mes- some of which she says were sponse saying she was termi- without warning or explana- haviors including requesting now partner at brand consul- sages to protest the ban, in- damaged or the wrong items. nated permanently because tion. Amazon doesn’t tell cus- too many refunds, sending tancy Buy Box Experts. cluding one to Chief Executive “I didn’t think it was so signif- she “reported an unusual tomers in its return policy back the wrong items or vio- —Shayndi Raice Jeff Bezos. An Amazon em- icant, especially considering number of problems” with her that their return behavior can lating other rules, such as re- contributed to this article. A8 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. IN DEPTH

from São Paulo who was shot “Fitzcarraldo.” culture secretary. said Mr. Novo. his most captive audience yet: OPERA in the throat midway through European tourists, espe- Mr. Novo, 38, a guitarist in For the annual opera festi- 30 patients hooked up to kid- a cheeseburger. cially the French, are still en- a famous Amazonian rock val, which ends June 2, Mr. ney dialysis machines at a lo- “Just wonderful, so beauti- amored with the building and band, was appointed to the job Novo called on his new events cal health clinic. ContinuedfromPageOne ful,” says Valdeize Souza, 57, dress elegantly for a night at in October as part of a shake- manager, Francis Madson, a The star of the show is so- delivered to their homes and lauding Mr. Barbosa’s perfor- the opera when their cruise up in local politics. Amazonas local actor and film director, prano Carol Martins. Before workplaces as part of an effort mance with a wide grin. Ma- ships dock at Manaus, said state was forced to hold emer- who came up with the idea for going on, sitting beside pa- to popularize Manaus’s opera naus’s resplendent opera Jairo Ferreira, a local tour gency elections last year after Opera Delivery. Within 24 tients in the bright waiting house, a little-visited land- house, the Amazonas Theater, guide. “Americans are less the governor, José Melo de Ol- hours of taking orders, 50 per- room, the voluptuous singer mark with a strange history. is only a 20-minute walk away. bothered—they’d rather have iveira, was stripped of his formances had been booked— flutters her fake eyelashes as At Ms. Araújo’s place, tenor Performances cost as little as an adventure in the jungle, mandate by the courts for the maximum the singers fig- she listens to Mr. Madson’s in- Everaldo Barbosa embarks on $1.30, but like many of her swim with river dolphins or vote-buying with the help of ured they could deliver during structions on timing and the opening aria of the 1738 friends, she has never set foot evangelical pastors. Mr. Ol- the month. where to stand. opera “Serse” by Handel. He is inside. iveira, who has denied wrong- Mr. Panilha, who accompa- “Now, do you have a prob- accompanied by the shrill mel- Crowned with an opulent doing, was later jailed over nies all the performers with an lem with blood?” he asks her. ody of the metal workshop dome laden with 36,000 yel- The opera house came separate corruption-related electronic keyboard, worries Inside the treatment room, across the road, and the clink low, blue and green enameled in pieces on ships up charges. the program is making him fat. the dialysis machines mark the of beer bottles being unloaded French tiles, the Belle Époque One of the first changes Mr. “When we go to people’s pace, methodically pumping from a truck nearby. The hum- theater was built in the late the Amazon during Novo made was to open the homes, they normally prepare blood in and out of patients ming car engine of Mr. Bar- 19th century at the height of the rubber boom. opera house on Sundays, the a little party for us with snacks lined up on armchairs for the bosa’s driver, who is reluctant the city’s rubber boom. In the only day when the city’s poor, and cake,” he said. At Ms. four-hour procedure. She does to leave the comfort of the ve- minds of local politicians it who often work several jobs, Araújo’s house, there was a full her best to captivate the audi- hicle’s air conditioning, adds was a way to civilize the jun- have time off. He rebelled meal of rice and shrimp stew ence with a love song from to the cacophony. gle outpost and turn Manaus something.” Natives of Ma- against the stuffy dress code waiting for them at 11 a.m. Mozart’s “The Marriage of Fi- Passersby cast apprehen- into the envied “Paris of the naus have even less interest, enforced by his predecessor, a At a school performance, garo.” sive glances at the scene as tropics.” he said. traditional-minded lawyer who half the students walked out “I still haven’t managed to they make their way to a From the Italian crystal More than a century since had been culture secretary for when they realized opera visit the opera house,” said housing complex suspected to chandeliers to the Scottish the opera house was built, the two decades. Spectators can would be performed. The typi- Marcelo de Sá Fonseca, 25, be home to members of the cast-iron stairways, the opera city’s poorer folk—including now turn up in shorts and flip- cal audience reaction, how- whose health problems began drug gangs that have made house arrived in pieces on descendants of indigenous flops. ever, has been very positive, as a young boy when an alliga- this city one of Brazil’s most ships up the Amazon river to slaves who were forced to tap The mini-revolution hasn’t he said, with some people tor bit off his leg while he was violent. Over recent months, its tributary, the Negro, whose the rubber that financed its gone down so well among sec- moved to tears. fishing in the river. “I have no several people have been exe- dark waters lap the port of construction—still “don’t feel tors of Manaus’s high society. The day after the recital at idea what the lady was singing cuted by criminals in nearby Manaus. The epic feat inspired they belong inside,” said De- “We’ve had complaints when Ms. Araújo’s, Mr. Panilha per- about,” he says, “but it relaxed streets, including a tourist Werner Herzog’s 1982 film nilson Novo, the state’s new the theater gets really full,” forms for what turns out to be me.”

took on the route, overriding TRAVEL limits set out in a recently agreed park plan. The walk was already so popular that hikers ContinuedfromPageOne complained of congestion. ging two-lane roads. One man The department justified its in shorts stood down a bus un- decision under “exceptional til the tourists disembarked. A circumstances,” a clause in resident elsewhere became so conservation law. After an in- annoyed with jet boats in a vestigation, an independent river near his property he ombudsman, whose rulings hired a digger to divert the aren’t binding, called the claim water; officials threatened le- of exceptional circumstances gal action if he persisted. “nonsense on stilts.” The de- Tourism, which many coun- partment publicly apologized tries once considered a busi- to the climber who made the ness niche that could yield complaint but didn’t reverse easy revenue, has become a its loosening of trail rules. mega-industry. And those mil- In 2016, at the urging of heli- lions of tourists who descend copter companies wanting to each year on small towns, offer more flights for Lunar once-lonely beaches and his- New Year, the conservation de- toric sites are generating a partment granted a trial eight- global backlash. fold increase in aircraft landings International tourist arriv- on a remote Fiordland glacier. als globally grew to 1.3 billion The alpine club started a in 2017, the United Nations’ crowdfunding campaign to pay World Tourism Organization for the department to make its says. That is up from 674 mil- reasoning public. An ombuds- lion in 2000 and 278 million in man investigation in April 1980, propelled by the rise of ruled the department “acted budget air travel, social media, unreasonably” and that “as-

an emerging Chinese middle RACHEL PANNETT/THE WALLpects STREET JOURNAL of its decision appear to class and technologies that Tour boats in Milford Sound on New Zealand’s remote southwest corner. The region lent its moody scenery to ‘Lord of the Rings.’ be contrary to law.” make distant places easy to Marie Long, the conserva- navigate. year, from 39,000 in 2005. tion department’s director of A wave of antitourism dem- Property prices soared. Unem- planning permissions and onstrations took place in pop- ployment averaged 1.9% in land, says it now agrees it ular European destinations 2017, versus 4.7% nationally. made a wrong decision. She last summer, including Venice, “I’ve lived here for 36 years says her advice to staff is to Mallorca and San Sebastián, and the place is a whole lot stick to existing limits in na- Spain. In Barcelona, youth better than when I came here,” tional-park management plans. groups were filmed slashing says Jim Boult, the town’s The chief pilot for Glacier rental-bicycle tires, and offi- mayor. “Some New Zealanders Southern Lakes Helicopters, cials banned tour groups from have the idea that because it Andy Clayton, says he worries parts of the city. isn’t like it was in 1965, it’s a few rogue tourism operators Fodor’s in 2016 began pub- not good anymore.” are spoiling things for ones lishing a “No Go” list reflect- Locals complain traffic has that try to protect New Zea- ing concerns that tourism was become a problem, and resi- land’s green image. With heli- destroying the world’s best dents who can’t afford homes copters, he says, “it’s all about places. Featured this year: the feel squeezed out. Jason Med- flying neighborly.” Galápagos Islands and parts of ina, an events manager, says he Some industry leaders say Thailand, and a designation moved to Queenstown in 2004 it is contradictory that there for “Places That Don’t Want and found a sleepy mountain are New Zealanders who have You to Visit” because their town where houses rented for turned against tourism, given governments are trying to about $1,000 a month. Now, he its economic benefits. combat overcrowding. says people are lucky to get “People forget that 10 years single rooms for that. ago…the industry and New A tourism-industry survey Zealand communities were Economic driver last fall found 40% of the screaming out for growth,”

Tourism remains a crucial LILLIAN SUWANRUMPHA/AGENCE FRANCE-PRESSE/GETTYcountry IMAGES worried tourism was says Simon England-Hall, chief and welcome economic driver Thailand said it would close Maya Bay, above, for several months because of damage from tourism. putting too much pressure on executive of Tourism New Zea- in many places, especially de- New Zealand, up from 18% two land, an industry marketing veloping countries such as cuss the issue at a summit on beaches and coral reefs of “100% Middle-earth.” The De- years earlier. agency. He says operators are Cambodia and parts of Africa the topic co-organized by the Southeast Asia, that were al- partment of Conservation Much backlash revolves aware of the changing mood where visitors’ spending has U.N. Overtourism was also a ready under strain from formed a commercial-business around Fiordland, a wilderness and that “most of New Zea- lifted many out of poverty. A theme in March at ITB Berlin, throngs of visitors. unit to find more ways to gen- area near Queenstown. One of land is not yet benefiting from number of countries with well- a major industry convention. erate income from protected its 14 fiords, Milford Sound, is increased tourism.” established attractions, such as Thailand said in March it areas, providing GPS coordi- accessible by a narrow, winding Last year, the government’s Egypt, have been hurt in some would close Maya Bay on Koh Kiwi crisis nates of “Rings” locations. road including a one-lane tun- conservation department recent years as tourism fell off Phi Phi Leh, an island where New Zealanders once Tourism became a top New nel. Nearly 800,000 tourists asked New Zealanders to nom- during periods of unrest. Leonardo DiCaprio’s “The thought of tourism as a green Zealand export, along with visit it each year, many on inate new areas for develop- In New Zealand, “we’re hop- Beach” was filmed, from June alternative to industries such dairy. “The landscape is so buses running such tight sched- ment to take pressure off pop- ing for a good debate about to September because over- as mining or timber. Advances beautiful it looks fake,” says ules that some drivers have ular hiking trails. They this and no knee-jerk reaction,” touristing was damaging the in aviation in the 1990s helped Amy Blitzer, a 34-year-old proj- only a 30-minute buffer to com- received around 30 responses says Chris Roberts, chief execu- marine environment. The Phil- make the country more acces- ect manager from New York plete the return journey while from a population of 4.8 mil- tive of Tourism Industry ippines in April announced sible, and government officials who took a helicopter flight to complying with official limits lion, a response rate that Aotearoa, an association repre- that Boracay, an island once moved to capitalize, develop- a glacier recently. that let them drive again the Kevin Hackwell, chief conser- senting hoteliers and tourist known for crystal-clear wa- ing a global-tourism campaign. Places such as Queenstown, next day. Accidents involving vation adviser for conserva- operators. “Tourists are a mas- ters, would close to tourists In ads after the first “Lord gateway to numerous “Rings” overseas drivers are common. tion group Forest & Bird, says sive economic benefit.” for six months over concerns of the Rings” film in 2001, the sites, boomed. International Dozens of tour boats circled isn’t surprising. Many top tourist destina- about pollution. slogan “100% Pure New Zea- visitors passing through the the fiord on a recent day, taking “Why would anyone want to tions, including U.S. national China’s emergence as a land” began morphing into local airport hit 567,000 last turns idling by pods of dolphins volunteer their favorite local parks, have long worked to tourist source is adding to and nosing up to waterfalls. walk,” he says, “to be commer- strike a balance between lur- crowds. Outbound Chinese The 87-year-old Federated cialized in the way the ‘Great ing tourist money and control- tourists rose to more than 60 Trails of Middle Earth Mountain Clubs, one of New Walks’ have, and overrun?” ling crowds. million last year from fewer Queenstown, gateway to numerous ‘Rings’ sites, boomed. Property Zealand’s leading conservation Last September’s national The latest surge is differ- than 20 million a decade ear- prices soared too, putting them out of reach of some locals. groups, has filed dozens of election divided the nation be- ent, say experts such as Simon lier, according to Chinese data. complaints to the country’s tween those who benefited Milne, who has researched The Chinese spent $261 bil- Queenstown Airport, Queenstown vs. the country, conservation department over from the conservative admin- tourism around the world, and lion vacationing abroad in international passengers 2017 the past five years, many re- istration’s nine-year steward- says frustrations have been 2016, more than travelers from lated to Fiordland. A petition it ship of the economy and those boiling at an unprecedented any other country, and China 600,000 GDP, growth from previous year circulated against a proposed who felt left behind. The win- level, especially the past 18 has accounted for roughly 80% monorail line and new tunnel ning center-left Labour Party 500,000 Queenstown 5.9% months. “We can’t ignore the of the growth in global tour- into the park received nearly pledged to tax tourists to help New Zealand 2.8% fact that tourists don’t have a ism in dollar terms since 400,000 10,000 signatures. Both pro- fund new infrastructure. good rap in many places,” said 2008, according to the U.N. Unemployment rate posals were ultimately blocked. The new conservation minis- Mr. Milne, director of the New New Zealand’s former prime 300,000 Queenstown 1.9% Another battle was over ter, Eugenie Sage, a conserva- Zealand Tourism Research In- minister, Bill English, last year Routeburn trail, one of New tionist who fought the Fiordland New Zealand stitute at Auckland University declared during a visit by Chi- 200,000 4.7% Zealand’s “Great Walks,” wind- monorail, says increasing air- of Technology. nese Premier Li Keqiang that ing through ancient forests con- craft landings and expanding 100,000 Average house price, April 2018 Since last summer’s Europe 2019 would be the “China-New necting the Fiordland and commercial activities on conser- Queenstown NZ$1.1 million protests, the industry has Zealand Year of Tourism.” 0 Mount Aspiring national parks. vation land can’t go on forever. made “overtourism” a focus. Yet the boom in Chinese New Zealand $698,200 The conservation department “There is a limit,” she says. More than 60 tourism minis- visitors has added to traffic at 2005 ’10 ’15 Note: NZ$1 million = US$694,600 had granted a guiding company “If you’re going to a concert ters and private-sector leaders some tourist hot spots, such Sources: Queenstown Airport; Infometrics the right to nearly double the and the venue is sold out, you gathered in November to dis- as the white-sand tropical (GDP, unemployment); QV (house prices) THE WALL STREET JOURNAL. number of guided walkers it can’t go.” THE WALL STREET JOURNAL. ** NY Wednesday, May 23, 2018 | A8A GREATER NEW YORK New Attorney General Is Named Suit Claims Abuse at Barbara Underwood New York Democrats are expected to nominate a candi- will serve as the state’s date for the attorney general Juvenile top prosecutor until election during a convention on Long Island on Wednesday. the end of the year Convention speakers are ex- Center pected to include former U.S. BY CORINNE RAMEY Sen. Hillary Clinton and for- BY MELANIE GRAYCE WEST mer Vice President Joe Biden. New York lawmakers Tues- New York City Public Advo- A 20-year-old Bronx man day appointed Barbara Under- cate Letitia James, a Democrat has filed a lawsuit against the wood as the state’s 66th attor- viewed as the race’s front-run- city, its child-welfare agency ney general, making her the ner, has garnered a handful of and several of the agency’s first woman to hold the posi- endorsements in recent days. employees claiming he was re- tion and allowing her to serve On Monday, New York City peatedly raped by a female as the state’s top prosecutor Council Speaker Corey John- counselor while he was held in through the end of this year. son, a Democrat, endorsed Ms. a juvenile detention center. Under New York law, the James, calling her “immensely Miguel Smith entered the state legislature is charged Barbara Underwood Leecia Eve Letitia James qualified.” city’s Horizon Juvenile Center with filling the position, which On Tuesday, unions 32BJ in the Bronx in May 2013 became vacant this month fol- SEIU, which represents prop- when he was 15 years old and lowing the resignation of At- u New York state attorney u Democrat running for state u Democrat running for state erty-services workers, and the was physically and sexually torney General Eric Schneider- general (the Democrat isn’t attorney general attorney general Communications Workers of abused there by staff for the man. running in the election) America District One, which Administration for Children’s “I’ve served in many roles u 53 years old u 59 years old represents telecommunica- Services, according to the in government throughout my u 73 years old tions employees, endorsed Ms. complaint filed Monday in the career,” Ms. Underwood said u Vice president at Verizon u New York City public advo- James as well. U.S. District Court for the in a statement. “But I believe u Served as state solicitor gen- cate Also this week, another Southern District of New York. this job—at this moment in eral from 2007 through 2018 u Port Authority board member Democrat, the lawyer Leecia The alleged abuse happened history—is the most important u Former member of the New Eve, said she would run for at- when Mr. Smith, who is cur- job I have ever had.” u Argued 20 cases before the u Former aide to Andrew York City Council torney general. rently in jail, was 15 and 16, Earlier this month, state U.S. Supreme Court Cuomo and Hillary Clinton Ms. Eve, 53 years old, according to the complaint. lawmakers interviewed about u Graduated from Howard Uni- works at Verizon Communica- Mr. Smith alleged he was re- a dozen candidates for the po- u Graduated from Georgetown u Graduated from Harvard Law versity School of Law tions Inc. as vice president of peatedly raped by a female sition. Law School government affairs for New counselor, and kissed by and “She’s competent, she’s ca- York, New Jersey and Con- asked to show his genitals to a pable, she has a stellar record necticut, according to an on- second female counselor. He and she will be a terrific in- line biography. She also serves said he was repeatedly punched terim attorney general,” Sen. ‘I believe this job ‘New Yorkers, now ‘I will fight to on the Board of Commission- by Horizon staff and discour- Majority Leader John Flanagan, – at this moment more than ever, safeguard the ers of the Port Authority of aged from seeking medical at- a Republican, said on Tuesday New York and New Jersey. tention at the center’s clinic. before a joint session of the in history – is the need a defender to rights of working Ms. Eve previously worked Mr. Smith said in the com- state’s Senate and Assembly. most important protect their rights people and use as an aide to New York Gov. plaint that counselors and “Not only are we breaking a Andrew Cuomo, a Democrat, their managers knew of, and glass ceiling, but we’re setting job I have ever and the my experience, andMrs.Clinton. would bring in, contraband, the standard high,” said Sen. had.’ organizations and capabilities, and “New Yorkers, now more including alcohol and drugs. Andrea Stewart-Cousins, who than ever, need a defender to leads the Democratic confer- the environment of passion...to help protect their rights and the ence. our great state.’ all New Yorkers.’ organizations and the environ- The man alleges he Ms. Underwood, a Demo- ment of our great state,” she

crat, became acting attorney LEFT TO RIGHT: HANS PENNINK/ASSOCIATED PRESS; MIKE GROLL/ASSOCIATED PRESS; LEV RADIN/PACIFIC PRESS/ZUMA PRESS said Tuesday. was repeatedly raped general after Mr. Schneider- If either Ms. Eve or Ms. beginning when he man resigned earlier this cally involved. Mr. Schneider- tor general from 2007 until this and has argued 20 cases before James were to win the elec- month following a report in man, a Democrat, has denied month, when she became the the U.S. Supreme Court. tion, it would mark the first was 15 years old. the New Yorker magazine that the allegations. state’s acting attorney general. Ms. Underwood has said time an African-American he physically abused women Ms. Underwood, 73 years She previously held the position she won’t run for attorney woman holds the statewide of- with whom he was romanti- old, served as New York’s solici- of acting U.S. Solicitor General, general in the coming election. fice in New York. He said they would reward ju- veniles willing to “play ball” with special privileges, includ- Suffolk Ponders Driverless Airport Shuttle ing fast food, candy, cellphone use and videogames. Staff would also “visit the BY JOSEPH DE AVILA rape victim’s home and carry back photographs and money Travelers taking the Long directly to the victim that was Island Rail Road to Long Is- not otherwise permitted,” ac- land MacArthur Airport typi- cording to the complaint. cally rely on taxis to travel the The lawsuit filed Monday final 3-mile leg from the closely mirrors a separate one Ronkonkoma train station. filed in August 2017 by Franklyn Now, Suffolk County officials Maldonado, also of the Bronx, want to make driverless vehi- against the city, the Administra- cles an option. tion for Children’s Services and The county envisions add- several of the agency’s employ- ing a driverless shuttle system ees. Mr. Maldonado, like Mr. that would cover about 3.5 Smith, alleges that he was miles of private airport roads raped multiple times by Nath- to give riders another way to alie Medford, who was a juve- get to the airport. nile counselor at Horizon. Factoring in tunnel and An attorney for Ms. Medford roadway construction, Suffolk didn’t respond to a request for County officials say a dedi- comment. Ms. Medford has de- cated roadway could be ready nied Mr. Maldonado’s allega- within the next two decades. tions and countersued him, During that time, they ex- court records show. pect driverless technology to A spokeswoman for the Ad- improve sufficiently to become ministration for Children’s Ser- a feasible option to connect vices referred comment to the the airport and train station. New York City Law Department,

Steve Bellone, Suffolk SUFFOLK COUNTY DEPARTMENT OF ECONOMIC DEVELOPMENT and declined to say how many County’s Democratic execu- A driverless shuttle proposed by Suffolk County officials would run between the Ronkonkoma train station and MacArthur Airport. of the Horizon staff workers tive, is expected to make the named in the two lawsuits con- pitch for the new train-to-air- and federal agencies, depend- County economic develop- completion of a third track plans on developing a 50-acre tinue to work for the agency. A port connection system at ing on the funding sources. ment and planning. from Floral Park to Hicksville.” residential and commercial spokesman for the Law Depart- Thursday’s State of the County Startups such as Local Mo- He said the county planned The connection also would be project called the Ronkonkoma ment said: “The city takes these address. tors already have launched pi- to capitalize on the state’s in- enhanced by a project de- Hub to the north of the sta- allegations seriously. We’ll re- The system is estimated to lot programs of driverless vestments in the LIRR to im- signed to improve service to tion. view the complaint and respond cost $41 million and includes shuttles in the Washington, prove the busiest station in the east side of Manhattan. About 8% of the airport’s 2 accordingly.” the construction of new roads D.C.-metro area, and others the county. Funding sources The area around million annual passengers use Vik Pawar, the attorney for and tunnels, according to a re- are under way in Europe and for the train-to-airport con- Ronkonkoma also is home to the Long Island Rail Road to Mr. Maldonado and Mr. Smith, port commissioned by the Japan. nections haven’t been identi- two of the county’s biggest de- get to MacArthur, according to said the city has been saying county and town of Islip, “Developing a seamless fied. velopment projects. the county’s report. that Mr. Maldonado is lying which owns the airport, exam- connection between the An LIRR spokesman said: Jones Lang LaSalle Inc. Taxis and other car services about his abuse. “I am certain ining the connection. Ronkonkoma LIRR and Mac- “This enhanced connection plans to build a $1 billion proj- are now the main options for the city will say Miguel is ly- The system would need ap- Arthur Airport is critical to will be boosted by the LIRR’s ect south of the station that train passengers to make the ing, too,” Mr. Pawar said. “The provals from the New York the economic vitality of our construction of a second track includes a sports-medicine trek to the airport. Village problem is the defendants got State Department of Transpor- regional transportation cen- from Farmingdale to center, medical office and re- Taxi, which provides service to away with these atrocious acts tation, the Federal Aviation ter,” said Lou Bekofsky, dep- Ronkonkoma later this year search center, and a sports the airport, couldn’t be because they said, ‘No one will Administration and other state uty commissioner of Suffolk and will grow further with the arena. Tritec Real Estate Co. reached for comment. believe you.’ ”

CLASSIC FUSION TITANIUM BLUE A8B | Wednesday, May 23, 2018 NY ** THE WALL STREET JOURNAL. GREATER NEW YORK

METRO MONEY | By Anne Kadet Free for All at City Museums Is Paying Off

When Me- Stacy Hollander, the mu- linda Allen- seum’s acting director. Grote’s plan to Its 133,000 annual visitors spend her often drop a donation in the birthday at the collection box and spend at New York Bo- the gift shop, she notes. tanical Garden got rained out Indeed, the museum’s store on a recent afternoon, she and accounts for roughly a quarter her two friends googled of its $4 million in annual “Bronx museum” and wound revenue and support. up at the Bronx Museum of Then there’s the money the Arts, which they had saved by not running a ticket never heard of. They were booth—$200 to $400 a day even more surprised to dis- for a small museum, esti- cover admission is free. mates Amy Boncardo, execu- The American Folk Art Museum and the National Museum of the American Indian offer free admission. Above, fifth-graders play with “We were going to pay,” tive director at the Queens American Indian musical instruments. Below, another student tries out snow goggles at the American Indian museum. said her pal Barbara Loizeaux. County Farm Museum. Having toured the small Besides, says Ms. Hollander, museum’s exhibits of local admission fees contribute far artists, the trio declared it less to the typical museum’s was well worth paying for. bottom line than you might “$5 to $7,” suggested Linda expect. Gate receipts account McLeod. for just 6% of the average mu- “$25,” countered Ms. Al- seum’s revenue, compared len-Grote. with 8% from the gift shop, “$15,” said Ms. Loizeaux. 22% from endowment income “So why is it free?” and 57% from donations, ac- While many New York City cording to the Association of museums offer free admission Art Museum Directors. to residents, or waive the fee Some of New York City’s at certain times, there are free museums make up for roughly a dozen that offer the the lost revenue with alter- best kind of open-door pol- native sources. The National icy—free admission to every- Museum of the American In-

one, all the time. dian in lower Manhattan, for COUNTER CLOCKWISE FROM TOP: JASON DECROW/ASSOCIATED PRESS/SMITHSONIAN’S NATIONAL MUSEUM OF THE AMERICAN INDIAN; BESS ADLER FOR THE WALL STREET JOURNAL The reason is obvious: It example, is 60% federally makes the venue accessible funded. Established by an tending a handful of paid-ad- pily would pay admission, appeal. I never visited some condor feathers. to all, even cheapskates. And Act of Congress in 1989, it is mission events, such as the typically citing $10 to $12 as of them because I assumed Indeed, in a city where museums say the policy of- prohibited from charging ad- annual Queens County Fair, in a reasonable fee for a small they’d be a tedious affair, like residents are used to free fers advantages to the insti- mission. its 2016-17 fiscal year. museum. dinner with a friend who pays concerts from top musicians tution, as well. The Queens County Farm About 80,000 or so guests But evidence shows that for the meal so you’ll listen to and world-class art in free At the American Folk Art Museum, with its sheep, visit each year for free, says admission fees actually have a him rattle on. galleries, there’s no stigma Museum on Manhattan’s Up- goats, alpacas, hens, bees and Ms. Boncardo. If each paid huge impact on attendance. The National Museum of to luring patrons with free per West Side, a big sidewalk vegetable fields, covers a $10, that could add $800,00 After the Bronx Museum of the American Indian, mean- museum admission. sign adorned with balloons good chunk of its $3 million to the bottom line. “But if we the Arts dropped its $5 ad- while, offers what may be the “It’s a New York thing to reads, “Come in: Admission is yearly operating budget by charged $10 a head, we mission fee in 2012 atten- city’s most entertaining fash- offer free experiences,” Ms. always free.” selling produce, eggs, yarn wouldn’t have 80,000 visi- dance spiked, according to its ion exhibit including ivory- Hollander says. “It’s one of “There is so much competi- and honey to its 400,000 visi- tors,” she says. “Let’s face it.” annual reports. and-sealskin Inuit snow gog- the things that makes it such tion in the cultural landscape tors. It also earned $1.3 mil- When I spoke with visi- These small museums are, gles, garters made with a great city.” of New York City. It’s impor- lion from group tours and tors at free museums around after all, often niche attrac- porcupine quills and a nifty tant to be welcoming,” says $744,000 from visitors at- the city, most said they hap- tions with relatively narrow dance skirt fashioned from [email protected] alexaOUT TODAY Quarterbacks Get Primed for Football Season

FREE INSIDE THE THE SETH WENIG/ASSOCIATED PRESS HAMPTONS DOUBLE TAKE: New York Jets first-round pick Sam Darnold, right, and veteran quarterback Josh McCown practiced at the NFL team’s training camp in Florham Park, N.J., on Tuesday. ISSUE GREATERNEWYORKWATCH NEW YORK CITY NEW YORK CITY AIRPLANE SCARE ACTRESS SOFIA BOUTELLA K2 Overdose Tally Lawyer Apologizes Passengers Evacuated MAKES A SPLASH Grows in Brooklyn For Restaurant Tirade From Smoking Plane Two years after it turned a A lawyer whose rant against A smoking engine forced the Brooklyn intersection into so- Spanish speakers in a New York evacuation of a plane at Newark called “zombieland,” the syn- City eatery went viral posted an Liberty International Airport. thetic drug known as K2 has re- apology online on Tuesday, say- United Airlines said air-traffic emerged, causing 56 overdoses ing he was not a racist. control tower notified the crew since Saturday, law-enforcement “Seeing myself online opened that smoke was coming from officials said Tuesday. my eyes—the manner in which I one of the engines when Flight The overdoses were in five expressed myself is unaccept- 2160 from San Francisco landed different locations in Brooklyn, able and is not the person I am,” at about 2:30 a.m. Tuesday. including the area of Broadway Aaron Schlossberg said in a post Passengers exited onto the and Myrtle Avenue. Near that in- to his Twitter and LinkedIn ac- taxiway and were bused to the tersection in July of 2016, 33 counts. “I see my words and ac- terminal. No injuries were re- people overdosed on a similar tions hurt people, and for that I ported. Port Authority police form of the drug, with many am deeply sorry.” said a hydraulic fuel leak is sus- seen at the time shaking and Mr. Schlossberg became in- pected as a cause. writhing on the ground. censed last week when he heard —Associated Press New York Police Department workers in a Manhattan restau- Chief of Detectives Dermot Shea rant speak Spanish. In the rant NEW JERSEY said the recent victims experi- caught on video, he threatened enced similar symptoms, includ- to call Immigration and Customs Firefighter Settles ing foaming at the mouth. Police Enforcement to have the work- Discrimination Suit have arrested 12 people in con- ers “kicked out of my country.” nection with the overdoses, in- In the uproar that followed, a A New Jersey city will pay cluding eight for selling the drug complaint was filed with a law- $450,000 to settle a lawsuit and four for possession. Authori- yers’ disciplinary committee; the with a deputy fire chief who al- ties are still determining who is building he was using as a busi- leged he wasn’t promoted be- the main source of the drug. ness address terminated its cause he is white. Police believe the K2 in the agreement with him; and critics As part of the settlement recent overdoses is coming from hired a mariachi band to play with Plainfield, Jeffrey Courtney the same source because of the outside his apartment and for- will be banned from city employ- proximity of the overdoses and mer office space and they de- ment and cannot disparage or

3NYP101 similarity in the packaging. manded his disbarment. defame the city in the future. —Zolan Kanno-Youngs —Associated Press —Associated Press THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | A9 LIFE&ARTS

WORK & FAMILY | By Sue Shellenbarger Reinvention in a Digital Era

Can older employees stay in the game? Ways to stay current and valuable as workplaces favor the young and tech-savvy

DO YOUR COLLEAGUES at the office seem to be getting younger? It looks that way to the millions of older employees in industries being disrupted in the digital era and favoring younger more digitally savvy workers, such as tech, enter- tainment, retailing and media. As more workers in their 40s and beyond plan to de- lay retirement until their mid-60s, a grow- ing number will have to hustle to reassert their value to their employers. A core question older employees face: Would your boss hire you again with the skills you have now? Being able to answer yes takes some smart moves to keep your skills fresh, your attitude upbeat and your personal style up-to-date. Waiting to act until a buyout offer or other rumblings of cutbacks surface at your company is too late. “You can’t wait until the ax is falling to get out of the way,” says Judith Gerberg, a New York City executive coach. Networking with younger colleagues and showing curiosity about what they do can help you stay abreast of changes, says Ellis Chase, a New York career-management con- sultant and author. “You have to break through your comfort zone and talk to that 28-year-old hotshot. Seek her out and ask, ‘I’d love to learn more about this. Could you spend a half-hour with me? I’ll take you to lunch,’” Mr. Chase says. Jeff Fuerst, 52, spent eight years in his 40s as an inventory-management executive at Sears Holding Corp., the troubled retailer, in hopes of helping it turn around. He stayed abreast of technology and helped start a work-from-home program to help attract young recruits. As Sears continued to close stores, he kept his industry contacts fresh by work got done. She sometimes worried, “If I way they move into new roles, so that they attending meetings of professional groups. go on this team, how am I ever going to get feel more comfortable, he says. Stayin’ Alive In a transition initiated by one of those my job back?” Ms. Alber says. But she One way to do this, consultants and contacts, Mr. Fuerst left Sears three years learned valuable skills, including managing coaches say, is to develop your personal To help go the distance late in your career: ago for a position as a senior vice president cross-functional teams and delegating work style. That doesn’t mean overhauling your n If your area is a likely target for cuts, ex- at Integrated Merchandising Systems, a she couldn’t do herself, helping her advance wardrobe or appearance in an effort to look plore potential assignments in other units. Morton Grove, Ill., merchandising and mar- to chief information officer. as hip as younger colleagues. “If you’re in keting agency. There, he’s learning e-com- “It became her brand,” says Amy Rup- your 30s and you have stubble, maybe it’s n Look for problems you can solve for your merce and digital-marketing technology, pert, an executive coach who worked with hunky. But if you’re 70 and you’ve got gray employer to demonstrate your strengths. and he has since been promoted to chief lo- Ms. Alber for years. “People knew, ‘You can stubble, it looks like you’re homeless,” says n Consider updating your wardrobe and gistics officer. “If you don’t react quickly to throw Karen Alber into anything and she’ll Peter Cappelli, a management professor at hairstyle with help from a trusted adviser. change, it’s very hard to keep up,” Mr. Fu- the Wharton School and author of “Manag- n erst says. ing the Older Worker.” Participate when possible in off-hours so- Forming ties and collaborating with col- New York image consultant Amanda Sand- cializing or charity events with colleagues. leagues at all levels is an important sur- Collaborating with colleagues ers advises choosing clothing and accessories n Take the initiative to get to know youn- vival skill, Ms. Gerberg says. Make sure that reflect current fashions, but making sure ger colleagues with skills you don’t have. “you have somebody who, if your name at all levels is an important they also fit well and look good on you. Men n Volunteer to help with training or on- comes up at a meeting to be fired, will say, can update their look by choosing trousers survival skill, one coach says. boarding programs for new hires. ‘Oh no, that person is great. I’ve worked with tapered legs, leather shoes with double with them,’ ” she says. If your group is tar- monk straps rather than laces, and contem- n Raise your hand for internal projects that geted for buyouts, having friends inside porary glasses with tortoiseshell or colorful will strengthen your network or skills. the company also improves your chances run with it.’ ” Two years ago, Ms. Alber transparent frames. While an Apple watch n Update your professional credentials via of transferring to a new assignment in a made a planned, voluntary move to a new suggests the wearer is tech savvy, “on some- training or refresher courses. different unit. career, co-founding the Integreship Group, a one older it looks like they’re trying to be n Karen Alber, 54, continued to advance her Chicago leadership-coaching firm, with Ms. young,” Ms. Sanders says. A better choice Stay involved in professional organiza- skills and build new contacts during stints Ruppert. might be a classic watch with a leather band, tions or your college alumni network. at three separate beverage and food compa- Many people face psychological road- she says. nies in the past 15 years, enduring major blocks to learning new jobs or skills, says Women should abandon outdated looks, cost cuts and restructuring threats and leav- Andy Molinsky, a professor of organizational such as a frumpy cardigan over a dress, in ing voluntarily in each case. She earned cer- behavior at Brandeis University and author favor of a leather jacket or asymmetrical tifications in a field that didn’t exist when of a book on stepping outside your comfort sweater, Ms. Sanders says. she graduated from college in the 1980s— zone. Older workers may feel resentful Those whose hair is thinning can color supply-chain management. about having to stretch themselves when it with highlights to lend more depth and She joined professional groups and spoke they’ve already worked for decades. Or they thickness, she suggests. And gray hair is at meetings. “I sometimes thought, ‘Really? may think, “This doesn’t feel like me,” Dr. fine if it’s healthy and styled in a contem- Ihavetogetonaplaneandgotoaconfer- Molinsky says. porary way, Ms. Sanders says. “Wear your ence?’” Ms. Alber says. “But then I did it Some manage to venture into new terrain age as a badge of honor,” she says. “If you anyway.” She took coaching courses because anyway, by developing a sense of purpose— believe it, they’ll believe it.” she enjoyed mentoring young colleagues. a belief that making the effort is important She also volunteered for internal projects, for a reason you value deeply. Others man- Work & Family Mailbox: Open desks for

including task forces for improving how age to tweak, personalize or customize the introverts and other topics...... A10 FROM TOP: ILLUSTRATION BY ROBERT NEUBECKER; ISTOCK

TRAVEL TWEENS: A HOTEL’S TOUGHEST CUSTOMERS

BY ANDREA PETERSEN contests and water-balloon tosses. They’ve also added themed rooms such as the Future Rock Star Suite HOTELS ARE TRYING to crack at the company’s Hard Rock Hotel, one of the trickiest riddles in the which has a faux stage and memo- business: How do you keep a tween rabilia from tween idols Taylor happy? Swift and Katy Perry. “Tweens are Children in that awkward age be- our customers and guests of the tween 8 and 12 can be a headache future,” he says. for hotels. They flee at the sight of Children of all ages are playing a 5-year-olds coloring. Yet they may larger role when it comes to where be too young to wander around a and how their families travel. resort alone or to take part in the About 77% of travelers said chil- growing number of teen-oriented dren influenced the planning of va- activities at hotels like dance par- cation activities and 54% said they ties. And their presence is likely to helped select the hotel, according chase the teens away anyway. Now, to a 2018 survey of 2,967 leisure hotels are coming up with new travelers conducted by marketing ways that they hope will engage and research firm MMGY Global. tweens—and keep their families That is up from 66% and 49%, re- coming back for return visits. spectively, in 2014. About one-third Tweens “want cool. They don’t of travelers now say they are actu- want kiddie,” says David Bartek, ally “at the mercy of our children vice president for operations for when making vacation decisions.” Loews Hotels at Universal Orlando. When the Atlantis resort in the Mr. Bartek oversees five properties Bahamas opened its Club Crush near an epicenter of tweendom: teen nightclub in 2010, it was bom- The Wizarding World of Harry Pot- barded by tweens trying to crash ter, housed in two of Universal Or- it, despite its 13-and-over age lando Resorts theme parks. rules. “They would say, ‘We’re old

UNIVERSAL ORLANDO RESORT The hotels host tween-friendly enough. Can we use the bathroom? A suite at the Hard Rock Hotel Universal Orlando features memorabilia from Taylor Swift and Katy Perry. poolside activities like Hula-Hoop Please see TWEENS page A11 A10 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. LIFE & ARTS

MY RIDE | By A.J. Baime One Little Red Corvette Leads to Another

Kim Burroughs, 43, a den- purple, my sister’s was sil- derland, Md. I was starting Scott Chalk—who restores tist from Gambrills, Md., on ver, and we played with dental school in the Balti- cars professionally—told me her 1962 Chevrolet Corvette, them all the time. more area, so I was not about a friend who had a as told to A.J. Baime. Jump forward to 1997. My around to help him restore 1962 Corvette that he had When I was little, my sis- father John Burroughs it. He promised that this gotten in the 1970s. He had ter and I both had Barbie bought a 1959 Corvette. I car would be mine some- taken it apart intending to dolls and Barbie Corvettes, helped him push the car off day, but I guess I got impa- restore it but that never which were toy cars that the trailer when it was de- tient. happened, and now he Barbie “drove.” Mine was livered to his house in Sun- In 2015, my boyfriend wanted to sell it. We went and saw the car; it had been painted red and all the parts were in boxes. ADVERTISEMENT The year 1962 was the last of the first-generation Showroom Corvette, and the best in To advertise: 800-366-3975 or WSJ.com/classifieds my opinion because the car came with a bigger 327 V-8 engine. In June 2015, I paid PORSCHE $30,000 for mine. My boy- friend and I loaded it in a trailer and brought it home.

We created lists of all the MATT ROTH FOR THE WALL STREET JOURNAL parts we had and all the Kim Burroughs, top, bought her 1962 Chevrolet Corvette in 2015 parts we needed. I went to for $30,000—inspired by her father, who owns a 1959 model, and swap meets and Corvette her childhood Barbie’s car. Ms. Burroughs and her boyfriend shows to find parts. We completely restored her car, which earned a top award. spent some 60 hours under-  neath the car scraping off ized that our restoration April 8, 2018, we took the      4 ' (  0)( 2 2    . undercoating, which had was going to be really nice, car to be judged by the Ma-  5 4' '5& 6 7/( $58'  )   probably been put on by a so we decided to have the son Dixon chapter of the .    4 ' (  0)( 2 2     dealership when the car car judged by the National NCRS, in Havre de Grace,   . + '5&   ' 5    3 was originally purchased. Corvette Restorers Society Md. The car earned a “Top   . + '5&  0 (   3  9      The underside of the (NCRS), which looks at how Flight” award, the highest    5 4' '5&    -)/( 5  2 3   9  5 4' '5&  .9   trunk lid was still the origi- close a restorer can get a you can get.  nal paint color so, a paint car to what it was the day it To think, it all started 00-0:1--1 specialist used that to mix left the factory. with a Barbie doll.  2 "" ("5 1 ('" , (     9 the right shade, which was We finished our restora- 9 2 ""     9 called Honduras Maroon. tion in October 2016, which Contact A.J. Baime at 9 2 "" 6     7/(     9 9 2 "" 6  /')"2$58'  ) %   % Along the way, we real- is fast for a job this big. On Facebook.com/ajbaime.

(/ ; 1+0:0-0-01+0   % 0""*1 * 9 '8 ( &2  .    &/( 23 . "    4'" 2 %   %  WORK & FAMILY MAILBOX | By Sue Shellenbarger 1<0$ :1; < 9 7   &&/  9  % % 7  '" (4 "  7/(     %3 %   ! "# $ 9% 0 '" (4  3   .% OPEN DESKS FOR INTROVERTS %   ! "# 9. 0 &/( $)/(  '=" -&&        ! "# 1 9. 0  5   -&&    %   ! "# $% &' ()* . >   %3 <( 5 '##5 5 ' .  3 3 >   ( '   +' ' '     3 You wrote recently about employers her career prospects? Or should she wait to )+ ,-&& replacing traditional one-desk-per-em- quit until after she finds a new job?—R.R. . 3   ! "# %9 $ 0 ( 7/(  2    Q: !  " #"$ #%$ &% %   $ '( )  * + '   %  , -    ployee setups with unassigned desks and a variety of other spaces for meeting and so- Those changes are certainly deal break-                cializing. What impact do these wide-open A: ers, but staying for a few months lon-           setups have on introverts?—M.S. ger isn’t likely to hurt her prospects. Hiring managers can easily tie the abrupt change in Losing your assigned desk can be her title and pay to the spinoff, rather than LEASE BOATING A: especially jarring for introverts, who any failing on her part. They’re also likely to may feel the loss of a home base more understand that she wanted to continue     keenly than others. Many also miss the pre- working while seeking a new job. Meanwhile,       dictability of sitting near the same people ev- encourage her to look for ways to turn her ery day, employers and employees say. New current assignment into a win, by helping   hires in these freewheeling setups typically solve problems caused by the transition or as- have to learn more new names and faces im- suming leadership in some measurable way. > 2  3 , > @   mediately. There’s a lot of value in leaving any job as > ?  3    2. >   1 Some introverts also benefit from being al- a winner, if possible. Staying for six to 12  ! :; #/ <; # , 3; +) lowed to work from home or other private more months would let her say in a future in-  = :     :               settings more often. Many employers provide terview that even though the terms of her         this added flexibility as part of the transition employment were changed dramatically, she     !      "#  $   % @! $ to unassigned seating. These setups also typi- stuck it out long enough to assess her pros-   & '()*** + ,   cally include private workspaces for employ- pects there and make a contribution. Mean-    01 +  /  ! ' + *   ees to settle down by themselves, focus on while, she should document her accomplish-      23 01 4  !! ' +*! *        their work and think deeply. ments so she can describe them in detail.      (  , 1  * ' +  If the changes take too great a personal toll      +5*# * ' +! $ #% && '() Regarding your recent story about on her and you can afford to risk her being out    !  ## ' 7   # LEASE  "# $ #% && '()  5# 23 )   8 && '() Q: phone snoopers who look over other of work for a while, it’s time to move on.    * 23(5!# $*% &&'() ( 6 (  # people’s shoulders to read their computer or +' ,  -     * ( 6 (  1   2017 Bentley Bentayga smartphone screens: Did you find any apps +' ./   *  2 6  23  9 /3 6   ! or hardware options that protect users’ pri- White, Loaded. MSRP $258,000 2k miles, Buy for $178,900 vacy? Nationwide delivery. We offer all current Screen filters that fit over a laptop, tab makes & models - for less. Call 7 days. Trades accepted. A: let or smartphone screen are the most BMW BMW widely used solution. They work like vertical 877.989.1500 blinds that permit users looking straight at www.LEASEFAX.com the screen to see it clearly, but block the view from the periphery. 3M offers a selection of visual-privacy filters in various colors for mon-      itors, laptops, tablets and smartphones. -        PORSCHE Many commuters simply hold the flip cov-           !"       #$%$ ers on their smartphones partly closed to &'($ )  *           block bystanders’ view.        & + &             $                 My wife started a new management         job last year but her division was    Q: spun off a few months later, depriving her               ! " #      of her director title and forcing her to take          !    a 35% pay cut. Will staying on that job hurt PERKINS+WILL/GARRETT ROWLAND THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | A11 LIFE & ARTS

FILM REVIEW ‘Solo’: The Force| By Joe Morgenstern Is Half-Awake

THE WELCOME NEWS in the matter of “Solo: A Star Wars Story” is that they found a good kid to grow into Harrison Ford’s boots. That term isn’t meant to di- minish the actor’s maturity. At 28, Alden Ehrenreich brings impres- sive skills behind a boyish face to a risky role. But the hero of this origin story about Han Solo has been conceived as a cocky kid with brash charms that foreshadow one of the most distinctive rogues in movie history, and Mr. Ehrenreich pulls it off, to the extent that any- one can consummate an impossi- ble act of anticipatory mimicry. He can lower his pleasing voice to a con man’s sardonic register; his cheeks seem dimpled, despite the absence of actual depressions, and his eyes seem to pick up reflected light from adventures not yet lived. But the neutral news about “Solo” is exactly that, its dramatic neutrality. Time ticks by at a drifty pace while lots of action of no great consequence grinds on. What’s most surprising about this younger Han is the unsurpris- ing nature of his background. As a kid on the mean streets of the planet Corellia—darkly Dickensian streets in a movie that’s depress- ingly dark overall—he boosted speeders and dreamed childhood dreams of owning his own ship. (The “Solo” part of his name turns out to be touching in an Ellis Is- land kind of way.) We first meet him on those streets as he’s rac- ing, and then car-chasing, with the love of his young life, Qi’ra, who’s played appealingly by Emilia Clarke. They’re desperate to es- cape an oppressive culture, and it’s easy to wish them well in their travails and sudden separation, al- though their star-crossed reunion comes so quickly as to suggest an extremely small galaxy, or, more plausibly, the narrative problems inherent in a famously troubled

production that lost its original di- LUCASFILM LTD. (3) rectors and focus early on. (Ron Alden Ehrenreich as Han Solo and Joonas Suotamo as Chewbacca, above; grant hints that something signif- Howard took over Emilia Clarke as Qi’ra, left; Paul Bettany as Dryden Vos, below icant may be cooking on the dis- the direction, tant desert planet Tatooine. working from a Even the action feels perfunc- script by Jonathan tory, however impressive it may Kasdan and Law- be on the surface. The most elab- rence Kasdan.) orate set piece is a train rob- The film’s most bery—the train being a futuristic momentous event (or pastistic, given the “long time is Han’s first en- ago” part of the meme) creation counter—punish- that cruises the sides of vertical ing and tumultu- cliffs, but the sequence lacks the ous at the outset visual organization—the simple —with the clarity—of its silent-era forebears. Wookiee warrior Donald Glover’s Lando Calrissian Chewbacca, who is seductive in an unusually inclu- will become his sive sense, given his romantic en- co-pilot and cher- tanglement with L3-37, a faceless ished companion, robot voiced by Phoebe Waller- and who is played, Bridge. And if “Solo” is the origin perhaps more plaintively than be- that it’s too long and he’ll have to story of a human hero, it is fore, by Joonas Suotamo. (A per- shorten it. equally the celebration of a ma- sonal note: My first “Star Wars” The movie seems too long, chine whose title transfers from sighting came in 1976. At a pre- partly because of its episodic Lando to Solo in the course of a view for another film I saw a structure—battle-chase-battle- card game. At the screening I at- trailer with an image that was, battle-chase—but also because of Beckett (good work as usual by crook, however wily, and he’s in- tended, there were many laughs according to everything I knew at what is, or isn’t, at stake. Garden- Woody Harrelson) and his co- volved with a mob headed by Paul and some cheers of recognition, the time, unfathomable—a space variety villainy is afoot in the ab- crook Val (an ill-used Thandie Bettany’s Dryden Vos, an oily op- but the only applause line came ship with some sort of giant, sence of a majestic villain like Newton). Beckett serves as Han’s erator of high viscosity, yet none with the definitive explanation of bleating ape at the controls.) Han Darth Vader. The Rebel Alliance mentor, so there’s that layer to of it matters all that much in the how a justifiably self-delighted speaks pidgin Wookiee well remains undreamed of. Han falls their relationship; he’s fatherly to cosmic scheme of things. Not un- Han Solo made the Kessel run in enough, so he gets Chewbacca’s in not with principled revolution- a fault in warning Han not to til the last reel does a genuine less than 12 parsecs in the Millen- name, but immediately decides aries but with a wily crook named trust anyone. Still, a crook is a surprise surface, and with it fra- nium Falcon.

Hotels also are TWEENS creating more ad- venturous excur- sions they hope ContinuedfrompageA9 will appeal to We just want to look,’” says Lau- tweens. The May- ren Snyder, the property’s chief bourne Hotel marketing officer and executive Group, which runs vice president. three luxury prop- So Atlantis decided to open a erties in London, tween-only nightclub, Club Rush, teamed up with with karaoke contests and a children’s party smoothie bar, a year later. More organizers Sharky recently, Atlantis has started al- & George to launch lowing 9-to-12-year-olds to visit new activities in Club Crush in afternoons and early March, including evenings without an adult, before an elaborate trea- The Berei family, above, has taken advantage of the teens arrive for their mocktails sure hunt around offerings for tweens at Mohonk Mountain House. and DJ dance party. the British Mu- Young visitors to the Atlantis in the Bahamas, right. Rosewood Bermuda launched a seum for about bunch of supervised activities spe- $600. prompt their families to make a re- cifically for 8-to-11-year-olds in It begins with an actor, playing turn visit, says Alex Sherwood, Mo- April, including hiking to a local an MI5 agent and dressed in a honk’s director of hotel operations. cave and learning how to make tra- trench coat, surreptitiously hand- William and Thomas Berei, 9- ditional fish cakes. ing the children a letter that says year-old twins from Mountain The property made the move be- the Rosetta Stone has been Lakes, N.J., have been vacationing cause tweens were avoiding the ho- switched with a fake. at Mohonk with their parents and tel’s traditional children’s program, The children’s mission: to follow older sister since they were babies which prevented their parents from a trail of clues and find the real and have participated in the resort’s being able to have alone time to go one. “They end up seeing a lot of children’s program since they were to the beach, play golf—or spend the exhibits in a fun way and they 2. The boys were excited to finally

money at the resort’s spa, says accidentally learn the stuff their get to the older group. FROM LEFT: JEFF BEREI; ATLANTIS, PARADISE ISLAND RESORT Paul Telford, the property’s manag- parents want them to,” says “We get to do more challenging ing director. George Whitefield, a Sharky & things,” William says. “You can do ments. Some are serious splurges. the steam room and a buffet of The new tween activities take George co-founder. rock scrambles that make your In March, Acqualina Resort & Spa cookies and candy like Gummi place away from the children’s The children’s club at Mohonk heart pump really fast.” in Sunny Isles Beach, Fla., Bears and Airheads. program area, so tweens “don’t Mountain House in New Paltz, N.Y., Travelers should expect to see launched a Young Fan treatment Pink Sands Club Canouan in St. feel like they’re going into a day is for children 2 to 12. But only more pint-size spa-goers. While for children 7 and up. (A parent is Vincent and the Grenadines has a care,” Mr. Telford says. Rosewood children 7 and older are allowed to many hotels have long offered also required for the $500 pro- new Texters Treat neck and shoul- Hotels & Resorts is launching a go rock scrambling or try archery. manicures and pedicures to the gram.) der massage to “help relax those new program for tweens at all of That builds anticipation among the under-12 set, tweens are now get- It includes an hour-long mas- all-important muscles for texting,” its hotels in 2019. younger children—which can ting a broader menu of treat- sage for child and adult, time in for children 8 and up. A12 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. SPORTS

GYMNASTICS Internal Upheaval at USA Gymnastics

Following a sex-abuse scandal, the organization of the world-dominant women’s team is in disarray

BY LOUISE RADNOFSKY USA Gymnastics CEO Kerry Perry is set to testify in THE OVERSEER of the dominant Congress on Wednesday U.S. women’s gymnastics program about a sexual-abuse will step into a harsh congressional scandal in the sport. spotlight on Wednesday, still struggling with internal upheaval after a sexual-abuse scandal and facing existential threats from liti- gation and Capitol Hill. Kerry Perry, the new chief exec- utive of USA Gymnastics, is set to testify in Congress on Wednesday about the organization’s handling of the crisis that grew out of for- mer team physician Larry Nassar’s sexual abuse of athletes. Perry, who took over late last year, will appear as part of a broader hear- ing before a House Energy and Commerce subcommittee “examin- ing the Olympic community’s abil- ity to protect athletes from sexual abuse.” Perry will appear at a moment when the organization is still cleaning house after the Nassar scandal and faces huge potential liability related to his conduct that it may not be able to pay for. The organization is in such disarray that, at the moment, it isn’t clear who is in charge of training the national women’s team, which won gold medals at the last two Sum- mer Olympics.

The scandal has already swept AMY SANDERSON/ZUMA PRESS away Perry’s predecessor; the en- tire board of directors, including By Friday, Perry was announcing would come from, including did not resign as I did not feel that to minimize elite gymnasts’ risk of the chairman; and the national a restructuring of the organization whether their insurance policies suddenly abandoning the national injury and that he handled these team coordinator. Most of those at the USA Gymnastics headquar- would pay them. team athletes was in the best in- “carefully” as a coach. individuals are now defendants in ters in Indianapolis, with at least USA Gymnastics is suing seven terest of their safety or emotional The organization also must find lawsuits. Sponsors have fled and nine layoffs, including Faehn, the of its insurers over their refusal to well being.” a new training home. USA Gym- the national team training center head of the organization’s nascent pay or defend claims related to In a statement about Faehn on nastics stopped using the Karolyis’ has been abandoned. athlete protection program, and Nassar, and policies filed in court Friday, Perry confirmed her depar- ranch, where much of the abuse In her new role, Perry is con- seven other employees. as part of the litigation indicate ture and said: “This is a personnel against elite gymnasts is alleged to sumed with fallout from the Nas- She told staff in a two-minute that even if the claims are deemed matter that we will not discuss in have taken place, in January after sar scandal. Last week, she was in meeting that the cuts were neces- to be within the scope of the cov- detail.” On Monday, Perry apolo- 2016 Olympic star Simone Biles Los Angeles discussing settlements erage, it is not certain that insur- gized to team members and their said she had been abused by Nas- of Nassar-related abuse claims ers would pay their full value. parents for “the disruption and sar there and was reluctant to re- with lawyers representing elite Without insurance backing, the confusion created at last week’s” turn for training camps. gymnasts, including 2012 Olympic At the moment, it isn’t organization would struggle to camp, adding that it was “truly Earlier this spring, USA Gymnas- stars, as well as more than 200 clear who is in charge of meet more than a handful of the unfortunate,” and said she had tics invited bids from entities in- women and girls in Michigan. The claims. In 2016, the year the U.S. made USA Gymnastics’ Junior terested in “partnering” on an am- women allege that USA Gymnas- training the national women triumphed in the Rio Olympic program director Annie bitious new national team training tics bears liability for Nassar as- women’s team. Olympic Games, its revenues were Heffernon the interim vice presi- center by 2020; for now, monthly saulting them under the guise of around $35 million and expenses dent of the women’s program. camps are being held at different treatment while he was working as $32 million. The collapse of a na- USA Gymnastics also faces the host gyms around the country. a sports medicine physician for tional governing body has few more basic problem of determin- In social-media posts, current Michigan State University. Those sary because “our organization is precedents, and the ramifications ing who is in charge of training national team members, including settlement discussions didn’t re- facing a great deal of pressure on of bankruptcy are one matter that the women’s team in the run-up to Biles, have said they are training sult in an agreement. John Manly, many fronts” and “to better adapt federal lawmakers are considering. the 2020 Tokyo Games. Martha undeterred. a lawyer representing many of the to the current climate, restructur- USA Gymnastics said that it has no Karolyi retired as the national “FYI we (us ladies) don’t stop victims, said that while USA Gym- ing was necessary.” intention to file for bankruptcy. women’s team coordinator after working hard just because our or- nastics has been “conciliatory” in USA Gymnastics did not re- Meanwhile, USA Gymnastics is in the Rio Olympics and is now em- ganization is falling apart,” wrote discussions, “their litigation strat- spond to specific questions about a new state of upheaval following broiled in the Nassar litigation. Biles in February. egy has been steel-fisted.” its finances, insurance or the re- the ouster of Faehn. She was the Valeri Liukin was tapped as her “I believe that Team USA can Then on Thursday, Perry pushed structuring. federation official who fielded the successor but stepped down in still thrive. Even if the organiza- out the vice president of the It remains unclear if USA Gym- first complaint about Nassar in the February after former athletes said tion is a disaster. Even if there are women’s program, Rhonda Faehn, nastics could make a major settle- summer of 2015, and she has been he had made abusive comments no sponsors. Even if we don’t have who was heading a national team ment without triggering its own at the center of a debate about about their weight. a national training facility. These training camp in Crossville, Tenn., demise. While Perry was in Cali- whether the organization acted suf- Liukin said in an email that he things do not define our talent, at the time. Athletes complained fornia, Michigan State announced ficiently quickly or thoroughly. has always been committed to his our drive, our sport,” wrote Marg- about her forced departure on so- it had agreed to a settlement of Faehn said in an email that ath- athletes’ emotional and mental zetta Frazier a few days later. cial-media posts, and the remain- $500 million, but university offi- letes’ welfare had been her “abso- health and believes nutrition and —Rebecca Davis O’Brien der of the camp was canceled. cials did not say where the funds lute top priority.” She added: “I weight management are important contributed to this article.

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 50s Edmontondt 60s 50s 30s <0 1234 56789 10111213 56 Classic muscle 22 Hitching hope 80s cars 25 Sgt.’s superior VVancouver Calgary 40s 0s 14 15 16 60s 10s 58 Eye up and 26 Trendy Seattlettl Winnipegp 50s 17 18 19 down 80s 20s superfruit 90s Montreal 30s 20 21 22 59 Fair features PPortlandd Helena 70s 60s 29 Copier Bismarckk Eugene Billings 60 Rooney of complication 60s Ottawattawa 70s AAugustag t 40s 23 24 60s 60s Mpls./St.Mpls./s / . 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The Last Temptation of Elon BOOKSHELF | By Ann Toews The False God This column The importance of this fac- are, and having investors be- Tesla is entitled to move does not ad- tor is apparent when you con- lieve that government, media them perennially to the end vise owning sider a simple question: To a and green groups will treat of the line in favor of custom- individual customer looking to get the them as if they are, is a key ers who are willing to fork up Of ‘Wellness’ stocks. But if most utility at the best price, prop under Tesla’s stock. for the fully loaded ($78,000) you are a will electric cars ever be able Thus an ominous warning version. BUSINESS shareholder to compete with gasoline- is the new Consumer Reports, Mr. Musk has discovered, WORLD in Tesla, powered cars, short of gov- which withholds a favorable or invented, a market for Everything Happens for a Reason By Holman W. should you ernment interventions that rating from the Model 3 be- electric cars. And that’s great. By Kate Bowler Jenkins, Jr. support the raise the price of and eventu- cause of erratic braking and Whether buyers really want call of good- ally prohibit gasoline-pow- poorly designed touch-screen electric cars, or just want (Random House, 178 pages, $26) governance ered cars? controls. Consumer Reports high-end emblems of green types for Elon Musk to sur- The answer is no. Mr. Musk has apparently rediscovered virtue, it can be a good busi- Natural Causes render his chairman’s title to himself has opined that gaso- ness either way. By Barbara Ehrenreich an independent eminence who line should cost $10 a gallon. Unlike the DeLorean, Mr. can be appointed to ride herd His big commitment to lith- He could have built an Musk’s vehicles live up to ex- (Twelve, 234 pages, $27) on him? ium-ion technology is tanta- electric-car business pectations as long as those Our answer, strictly from mount to a bet that no battery expectations are reasonable. e are responsible for our bodies and our well-being. the shareholder’s standpoint, breakthroughs are in the off- that wasn’t based As this lesson is taken to W With willpower and a bit of help from modern is no. This good-governance ing to fix the range and charg- on green hot air. heart, we expect to see fewer medicine, we can all overcome illness and live long nostrum, like many, is case- ing drawbacks that are the Teslas in Thanksgiving traffic lives. People with persistent health problems should pursue specific. It’s a good idea for a main handicap of electric vehi- on I-95 making the last miles every conceivable cure, starting with eating more kale, company for which it is a good cles. His answer to every to grandma’s house on the practicing mindfulness and joining a gym. idea. It’s not a good idea for critic, as well as to the Califor- its mettle. Three years ago, back of a flatbed truck. In two new books two writers, both of them determined to Tesla because the main thing nia Air Resources Board and the magazine tossed out its What we have yet to see, face their mortality honestly, assail these and other current holding up the stock price is the National Highway Traffic traditional, objective criteria from Tesla or any other man- American falsehoods about the extent to which we control our Mr. Musk’s image as a con- Safety Administration when to sing the praises of another ufacturer, is that customers own health. Kate Bowler, the author of “Everything Happens jurer, and any move suggesting they are less than fully oblig- Tesla model as a shining are willing to buy electric for a Reason, and Other Lies I’ve Loved,” is a 37-year-old the board is questioning his ing, has been: How dare you tribute to green politics and cars at prices resembling the mother and Duke Divinity School professor with Stage 4 colon magical potency could be fatal endanger the planet by erect- policy. cost of making them. Here cancer. Barbara Ehrenreich, the author of “Natural Causes: An for the Musk bubble. ing obstacles to the advent of If the air must come out of may reside Mr. Musk’s real Epidemic of Wellness, the Mr. Musk has fenced with green transportation? the Tesla bubble, we’re glad missed opportunity. He could Certainty of Dying, and Killing analysts lately over whether Tesla in theory should be that civic culture is doing the have aimed to become a niche Ourselves to Live Longer,” is a he needs to raise fresh capital a beneficiary of the Trump job. There was never much maker of electric fetish ob- seasoned writer and, at 76, self- this year amid struggles to administration’s rollback of hope or any great need for jects, and done so at a price admittedly of age to die. Ms. Bowler get the Model 3 into produc- fuel-mileage targets—it re- the Securities and Exchange point that would not require believes in God; Ms. Ehrenreich is tion. The discussion is mod- duces the incentive of other Commission to go after Mr. endless subsidies from the tax- an atheist who takes comfort in the estly irrelevant, though, be- auto makers to build electric Musk for pie-in-the-sky fore- payer or stock investors. idea of an “animate universe” of life cause Mr. Musk keeps laying cars and dump them on the casts that investors knew He had a chance to show and possibility. They’ve both chosen out grand plans that will cer- market at a big loss. Yet one were pie-in-the-sky and wel- that an electric-car maker to forgo extreme medical interven- tainly require gobs of fresh senses Mr. Musk’s ambiva- comed as Muskian gusts of with realistic ambitions could tion and to face the inevitable. capital in future years. lence. If investors perceive hot air to keep the stock be a profitable, self-sustain- As they grapple with what it All this rests on the stock- that public policy no longer aloft. ing member of the auto-man- means to die, they each return to and debt-buying public adopt- is hotly devoted to promot- There is no need now for ufacturing community. Right their Ph.D. research—Ms. Bowler’s on ing a hazy, not quite explicit ing electric vehicles, the the Federal Trade Commis- now, his fans are stuck with the American prosperity gospel, Ms. belief that Mr. Musk repre- Musk bubble could quickly sion to intervene in response the hope that some combina- Ehrenreich’s on cellular immunology—and sents the green future and deflate. to the gripes of those who put tion of the Musk bubble plus identify, perhaps surprisingly, the same insight: that public policy will fall in Electric cars are no solu- down $1,000 deposits for his public policy will make their that the various ways we seek to support the ill, and the faith line behind him and guaran- tion to climate change, but alleged $35,000 Model 3 only bet on Tesla stock come out we place in man-made remedies, are deeply misguided. tee his success. having buyers believe they to discover the fine print: all right. Before her diagnosis, Ms. Bowler spent 10 years studying a belief characteristic of certain Christian churches that God rewards the faithful with health and wealth. She immersed herself in communities that sought proof of God’s love primarily Trump Courts Disaster With Iran in their possessions and skipped right over Lenten suffering to Easter joy. On occasion, believers suggested Ms. Bowler examine In a speech at continues to do business relations with Iran constitutes and prompt “a lot of anger her conscience for unresolved sins producing her physical pains. the Heritage with the country. Conceding an essential part of the agree- and resentment.” As she begins to “battle” her disease—amid exhortations to Foundation that this strategy will pose ment, which should be upheld This prospect does not be an optimistic warrior—she finds that she has unwittingly earlier this “financial and economic dif- by the international commu- worry President Trump, who adopted a version of this prosperity gospel. With her dream week, Secre- ficulties for a number of our nity.” Noting that the agree- appears to regard the alliance job and picture-perfect family secure, she had doubted her tary of State friends,” Mr. Pompeo made ment wasn’t designed to ad- as an outdated burden that vulnerability. She had tacitly expected God to grant her “a few POLITICS Mike Pompeo clear the administration dress all issues in the West’s limits American freedom of ac- shining accolades” and a full life as a wife and mother in & IDEAS laid out the wouldn’t relent. relationship with Iran, Ms. tion without delivering com- exchange for her devotion. By William Trump admin- “We will hold those doing Mogherini said that the U.S. mensurate benefits. If you “One moment I was a regular person with regular A. Galston istration’s con- prohibited business in Iran to secretary of state had not don’t care all that much about problems,” she writes. “And the next, I was someone with ditions for a account,” he said. “I’ve spent shown how scrapping the deal democracy and believe that cancer. Before my mind could apprehend it, it was there— new deal with a great deal of time with our the U.S. can achieve its secu- swelling to take up every space my imagination could touch.” Iran. These conditions include allies in my first three weeks. rity objectives on its own, then In this new and fearful existence, Ms. Bowler meets doctors not only the permanent cessa- I know they may decide to The administration’s the alliance’s seven-decade who lack satisfying answers or even the ability to empathize. tion of Iran’s nuclear and bal- keep their old nuclear deal go- strategy alienates history promoting freedom, She fumes that her mother-in-law has the privilege of listic missile programs but ing with Iran. That is certainly security and prosperity seems complaining about aging and realizes that many sick people also the complete reversal of their decision to make. They Europe and risks like an afterthought. lack equitable access to clinical trials. None of it seems fair. decades of Iranian regional know where we stand.” war in the Mideast. It is possible, I suppose, She describes “control” as a drug that has us all hooked, policy. It is inconceivable that Mr. Pompeo’s speech wasn’t that the Iranian regime will whether we adhere to the prosperity gospel or simply a sense Tehran would agree to any- well received in Europe. Brit- collapse under the weight of that our futures are in our own hands. thing of the sort, which points ish Foreign Secretary Boris U.S. pressure. But the odds to the real objective of the ad- Johnson termed the adminis- “will make the region safer are low, especially if the two ministration’s policy—regime tration’s demands a “new from the threat of nuclear non-Western Iran deal signa- Americans are hooked on a powerful illusion— change. jumbo Iran negotiation” and proliferation” or put the tories—China and Russia—re- that modern medicine, self-discipline and Indeed, Mr. Pompeo said as declared—with uncharacteris- Western alliance in a better fuse to go along and instead much: He noted that Supreme tic understatement—that suc- position to influence Iran’s step up their economic deal- denial can together forestall death. Leader Ali Khamenei had been cess wouldn’t be “very easy conduct in other areas. ings with Tehran. If the Irani- in power since 1989 and said to achieve in anything like a “There is no alternative,” she ans continue to abide by the the Iranian people wouldn’t reasonable time scale.” concluded. terms of the agreement, they Ms. Ehrenreich goes after the same cultural illusion of “abide the rigid rule of ty- Claiming that the U.S. had In the short run, the Trump can probably ride out the mastery. In the late 1960s, she conducted doctoral research on rants forever.” Making sure no “walked away” from an administration will probably storm while deepening the macrophages, immune cells widely accepted as “good guys” in one missed the point, he also agreement with clear benefits be able to force the Europeans split between the U.S. and the fight against harmful elements in the body. “I could walk said, “At the end of the day, for the West, Mr. Johnson to halt economic dealings with Europe. Tehran can also fur- through the valley of the shadow of death, so to speak,” she the Iranian people will get to said that Europeans would be Iran because their stake in the ther unleash its regional writes, “or expose myself to deadly microbes, and know no make a choice about their discussing “how to take it U.S. economy is orders of proxies, forcing the Trump evil, because my immune cells and antibodies would keep me leadership. If they make the forward.” magnitude greater. In the lon- administration to extend from harm.” So when medical research reveals in 2008 that decision quickly, that would Federica Mogherini, the Eu- ger run, however, this course America’s military involve- these heroes sometimes aid and abet the proliferation of be wonderful.” ropean Union’s high represen- of action risks permanent ment as the head of the anti- disease, she feels nothing short of betrayal. Meanwhile, the U.S. will tative for foreign affairs and damage to the trans-Atlantic Iranian coalition. Revelations about a traitorous immune system lead to more impose the toughest and security policy, went further. alliance. As the Brookings In- We are on a path that could questions and eventually to her realization that a whole host most comprehensive sanc- The Iran deal was “the result stitution’s Suzanne Maloney lead to war with Iran. The ad- of supposedly ordered systems are in fact unpredictable. Ms. tions in history, including of more than a decade of com- puts it, “The casual disregard, ministration had better con- Ehrenreich finds reasons to doubt our faith in Western not only primary sanctions plex and delicate negotia- the back of the hand that was sult Congress and the Ameri- “rituals” of medical examinations, expensive wellness on Iran but also secondary tions,” she said. “The normal- given to Europeans” will be can people before it reaches regimens and a glut of evidence-poor tests—bemoaning sanctions on anyone who ization of trade and economic “incredibly counterproductive” the point of no return. precious time spent trying, uselessly, to prevent all manner of ailment. “Conflict may be endemic to the human world, with all its jagged inequalities, but it must be abolished in the individual,” she wryly concludes of the wellness movement. Remember the Pueblo, Mr. President “To what end? To feel good, of course, which is the same as feeling powerful.” By Richard Miniter Surrounded and outgunned, led the men in raising their The Navy secretary set it One of Ms. Ehrenreich’s late chapters is a philosophical Bucher surrendered without middle fingers—claiming it aside, wisely siding with pub- whirlwind that begins with a question, “Who is in charge?,” orth Korea released firing a shot. was the “Hawaiian good-luck lic opinion that Bucher and and ends in utter, graphic despair. She denounces in turn N three U.S. hostages in That saved the lives of all sign.” Bucher’s last written his crew had suffered enough. monotheism’s emphasis on the soul, the Enlightenment’s the run-up to next but one of 83 Americans confession is a masterpiece of Bucher died in 2004, praised emphasis on the self and capitalism’s emphasis on personal month’s summit with President aboard, including two civilian double-talk, translating harm- by former shipmates. branding, finally reducing one’s choice of belief to animism or Trump. It should follow up by oceanographers. But Bucher’s lessly into Korean while clear Today the USS Pueblo is meaninglessness. The latter, she suggests, may soon be more returning the USS Pueblo. decision was controversial. It enough to any American: tied up at Pyongyang’s Victori- manageable with psychedelic drugs that promote “the death of Sent to map North Korean was the first surrender of a “In summation, we who ous War Museum, a floating the self” and a fearless embrace of unity with the universe. radar stations in January U.S. Navy ship since 1807. Al- have been rotating upon the symbol of American defeat. Ms. Bowler steers clear of prescriptions for the dying. 1968, the spy ship, whose top though many cards were fickle finger of fate for such Troupes of schoolchildren are Counter to Ms. Ehrenreich’s claim that religious belief relies on speed was 13 knots, was pur- long languid months give our trotted aboard to see strange coercion and pat answers, Ms. Bowler avoids both—indeed, sued by North Korean gun- word to the Great Speckled artifacts of “Yankee imperial- wants to overturn the tendency toward both. She finds herself boats. Machine-gun fire and More than 50 years Bird that we will heretofore in ism.” Yet the North Koreans “floating” on the love and prayers of those around her in the artillery shells raked the ship, later, North Korea all sincerity cleanse ourselves know that they have milked the months after her diagnosis—a fleeting feeling of God’s wounding 10 sailors, one fa- of rottenness and vitupera- ship of most of its propaganda presence that St. Augustine called “the sweetness.” She yearns tally. The former freighter should return the ship. tions. We solemnly await our value. They offered to return it to relish her remaining moments with her beloved husband was armed only with two ma- return to our loved ones so in August 2005 in exchange for and son in “ordinary time,” the part of the church calendar chine guns, tied down under that the fickle finger can be a meeting with a high-level that falls outside the joyous—and sorrow-filled—holidays. ice-covered tarps. Uncovering burned, the loss of classified replaced by the rosy fingers of U.S. official. Why not belatedly What practical advice she does offer is directed at those who and loading the jam-prone material “would dwarf any- dawn and salvation. So help accept the offer? encounter the dying: what to say and not say, listed in two guns, Cmdr. Lloyd “Pete” Bu- thing in previous U.S. crypto- me, Hanna.” Kim Jong Un could close separate appendices. cher later said, would have logic history,” a 1992 National Freed at last, the sailors the wounds of the “Pueblo In- Ms. Bowler’s and Ms. Ehrenreich’s observations about our heightened the risk to his Security Agency report, classi- landed in San Diego on cident” and transform the ship culture-wide denial of bodily decay lead them down distinct crew. fied until 2012, found. Some Christmas Eve 1968 to cheers into a symbol of reconciliation. paths of interrogation and discovery. For all their research, As the Pueblo desperately admirals publicly demanded a and cameras. Bucher had lost As for Mr. Trump, bringing the they are not prepared to give us easy answers. Still, their dry sought to evade capture, court-martial. nearly half of his body Pueblo home would be an ac- humor and raw, personal accounts help make thinking about crewmen burned punch cards Seeing his crew beaten, weight. Though scarred by complishment that has eluded our common fate bearable. We may have a few extra years yet to keep secrets from the en- starved and tortured over 11 torture, hunger and disease, nine presidents. to sip kale smoothies, run marathons and get tested for emy, and smoke poured out of months in captivity, Bucher all the prisoners survived. everything under the sun, but we ought not make physical the vessel. Six fast gunboats repeatedly rallied them to per- Weeks later, Bucher faced a Mr. Miniter is CEO of the health our ultimate hope. swarmed in. A pair of MiG severe. When his captors board of inquiry, which rec- American Media Institute, a fighters circled overhead. sought propaganda photos, he ommended a court-martial. nonprofit news organization. Ms. Toews is a fellow at the Foreign Policy Research Institute. A14 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR When Carter Page Met Stefan Halper Water’s Rising Because It’s Getting Warmer

ultiple media sources have now con- CRASSH and Mr. Halper’s department share a Would the Journal run the op-ed Sea-level rise has brought more fre- firmed that American academic Ste- building where the symposium took place. “Objects Are Falling, but Not Because quent flooding to dozens of coastal M of Gravity”? That’s pretty similar to communities, including Atlantic City, fan Halper is the “top secret” infor- The event was titled “2016’s Race to Change climate contrarian Fred Singer say- N.J. and Charleston, S.C., where the mant the FBI asked to sidle up the World,” and headlined the A timeline that ing The Sea Is Rising, but Not Be- number of floods has quadrupled to Trump campaign officials in dueling perspectives of former cause of Climate Change” (op-ed, since 1970. The pace of sea-level rise 2016. Some questions follow: contradicts claims by Secretary of State Madeleine May 16). has recently doubled. Who asked Mr. Halper to keep Albright and former GOP Con- No, ice is not accumulating on Mr. Singer acknowledges there’s tabs on the Trump officials, Justice and the FBI. gressman Vin Weber. Accord- Earth—it is melting. No, Antarctica “good data showing sea levels are and when and why? ing to the program, Mr. Halper isn’t too cold for melting—warming in fact rising at an accelerating The answers go to the cred- kicked off the opening session oceans are eroding the ice from be- rate,” yet makes the unscientific ibility of the Federal Bureau of Investigation’s on July 11. Mr. Page confirms he met Mr. Halper neath, destabilizing the ice sheet. claim that this is disconnected claim that it didn’t open an official counterin- for the first time at the symposium. And no, legitimate scientific conclu- from rising global-warming emis- telligence probe into Trump-Russia collusion Another noteworthy participant was Sir sions are not reached in op-ed sions and temperatures. The risks until July 31, 2016. The answers might also Richard Dearlove. Sir Richard, a Cambridge pieces, but through careful peer-re- are clear. Sea-level rise projections viewed research. for 2100 range from one foot to show if Obama Administration officials knew alumnus, spent a near-40-year career at the That research shows that sea lev- more than eight feet—far greater about this mission, or if political actors work- British intelligence service, MI6, rising to its els are rising and human-caused cli- than the six inches Mr. Singer ing for the Clinton campaign such as Fusion chief from 1999 to 2004. As such he overlapped mate change is the cause. Don’t take claims. Swiftly reducing our global- GPS played a role. with anti-Trump dossier author Christopher our word for it; help yourself to the warming emissions would give us One mystery concerns Mr. Halper’s interac- Steele, who was recruited by MI6 after graduat- mountain of scientific literature the best chance to minimize sea- tion with Trump aide Carter Page. The New York ing from Cambridge in the late 1980s, and who showing as much. When water level rise, but our current emis- Times reported on Friday that Mr. Halper’s con- later ran the Russia desk. Sir Richard told the warms, it expands. When ice warms, sions trajectory makes achieving tact with Trump officials happened only after Washington Post in February that Mr. Steele’s it melts. To deny these facts is not the range’s low end more unlikely the July 31 launch of the probe. The story notes reputation was “superb.” just to deny climate change. It is to each day. KRISTINA DAHL, PH.D. that Mr. Halper reached out to campaign adviser Sir Richard is also friendly with Mr. Halper. deny basic physics. Union of Concerned Scientists George Papadopoulos “late that summer” and The two men were part of a small group that ran New York City experienced an ad- ditional 25 square miles of flooding Oakland, Calif. then to Mr. Page “in the ensuing months.” A the Cambridge Intelligence Seminar, an academic from the approximately one foot of Washington Post story adds that Mr. Halper sat forum for researchers and one-time practitioners sea-level rise that has occurred due NASA disagrees with Prof. Singer. down with Trump official Sam Clovis on either of spycraft. At least one of these sessions in 2014 to human-caused warming. Without A Feb. 13 paper notes: “Rising con- “August 31 or Sept. 1.” featured eventual Trump National Security Ad- concerted efforts to reduce carbon centrations of greenhouse gases in But Mr. Page tells us he actually met Mr. viser Michael Flynn. The duo made headlines in emissions, it could experience as Earth’s atmosphere increase the Halper in mid-July, at a symposium at England’s the United Kingdom in 2016 when they resigned much as eight feet by the end of the temperature of air and water, which University of Cambridge, where Mr. Halper is an from the organization, which Mr. Halper told the century—permanently inundating causes sea level to rise in two ways. emeritus professor. Mr. Page says the invitation Financial Times was due to “unacceptable Rus- most of Wall Street. First, warmer water expands, and ASST. PROF. ANDREA L. DUTTON to that event came much earlier—the end of sian influence on the group.” this ‘thermal expansion’ of the May or early June. Mr. Page declined to say who For the record, Mr. Page says he had never University of Florida ocean has contributed about half of Gainesville, Fla. the 2.8 inches (7 centimeters) of invited him but says it was someone other than interacted with the CRASSH program at Cam- PROF. MICHAEL E. MANN global mean sea-level rise we’ve Mr. Halper. bridge before that early summer 2016 invita- Penn State University seen over the last 25 years...Sec- Mr. Halper had a central role in the sympo- tion. And while he did not speak at the event, University Park, Pa. ond, melting land ice flows into the sium. The event was hosted by the Centre for he says the organizers paid his round-trip air- ocean, also increasing sea level Research in the Arts, Social Sciences and Hu- fare from New York. Fred Singer leaves out any real ev- across the globe.” manities (CRASSH), a Cambridge research insti- Perhaps all of this is a crazy coincidence, but idence to refute research attributing WENDY FLEISCHER tute. And the official organizer was another House Intelligence Chairman Devin Nunes is the measured sea-level rise almost Brooklyn, N.Y. American academic and alumnus of Republican right to investigate. President Trump on Mon- exactly to the measured thermal ex- administrations named Steven Schrage. In a day tasked Chief of Staff John Kelly with ensur- pansion of seawater and glacier melt. Melting ice is not the only thing SEN. SHELDON WHITEHOUSE (D., R.I.) Facebook post at the time, Mr. Schrage ex- ing that Justice Department officials let con- that can raise the sea level. Note the plained that the event was supported by Cam- gressional leaders review “classified and other Newport, R.I. eruption of hundreds of undersea volcanoes in the oceans and what bridge’s Department of Politics and Interna- information they have requested.” There’s no Our emissions will continue shap- they deposit. All of the rivers of the tional Studies—Mr. Halper’s department. excuse for refusing to cooperate. ing how much seas rise in the com- world flush millions of acre feet of ing decades. Taking this threat mud and silt into the sea floor daily. lightly endangers hundreds of com- During an undersea earthquake a A Right To Try Arrives munities in the U.S. and world-wide, tectonic plate could override another, and wastes the dwindling time we affecting a thousand miles of sea he House on Tuesday passed a bill that ments without government approval. Many have to reduce our risk by cutting floor, displacing a great deal of wa- would allow some patients to seek med- drug companies will decline to provide experi- carbon emissions and investing in re- ter and raising the sea level. T silience. Since 1900, global sea level DAVID DARLOW ical treatments still in clinical trials, and mental treatments because they fear this could this is a welcome end to some distract from the goal of FDA has risen by seven to eight inches. Spokane, Wash. messy sausage-making. But it Congress resolves its approval. But right to try is isn’t a GOP license to forget differences on access still important as a message about the more fundamental from Congress that patient U.S. Allies Are Shortsighted on Iran’s Threat bureaucratic obstacles to drug to experimental drugs. and physician prerogative are approvals. more important than bureau- Kudos to Daniel Henninger for up to the terms of the agreement The House passed 250-169 a cratic whim. seeing through the maze of contra- are naive at best. bill sponsored by Senator Ron Johnson of Wis- President Trump is eager to sign the bill, and dictions posed by the Iranian nu- President Trump took a dispas- consin that passed the Senate by unanimous con- he kicked off a speech on drug prices this month clear deal (“America’s So-Called Al- sionate view of the deal and scraped sent last year. The bill is named for patients such with some spontaneous lingua franca to FDA lies,” Wonder Land, May 17). The it to gain one with real teeth to it. as Wisconsin mother of three Trickett Wendler, Commissioner Scott Gottlieb: “Where is Scott? Europeans placed money ahead of Our European allies, who don’t feel who died in 2015 after a battle with ALS. Another Stand up, Scott. Stand up. And ‘right to try’ is diplomacy and security in pushing threatened by a nuclear Iran, have the deal with Iran despite the fact willingly overlooked its flaws to se- is Jordan McLinn, a young boy in Indiana who happening, right? You have that moving? ‘Right that it was deeply flawed. President cure economic gain. They will be has Duchenne muscular dystrophy. to try.’ So important.” Vice President Mike Obama took a winning hand created loath to give up trading with a The House over several months made Pence has long been an advocate. by economic sanctions and turned it country that just secured over $100 changes to the Senate bill and then passed its Right to try has moved because Americans into a losing one because he was billion thanks to the Obama admin- own version this spring from House Energy and perceive that new drugs aren’t reaching pa- desperate to make a deal. istration. Once again, America will Commerce Chairman Greg Walden. Mr. Johnson tients quickly enough, and they’re right. Discov- Instead of punishing Iran for have to take the lead and do the then tried to move the House bill in the Senate, ering a new drug is perhaps the riskiest bet in missing deadlines, President Obama heavy lifting. but Minority Leader Chuck Schumer blocked it all of American business. Three phases of clini- rewarded Iran by offering conces- ROBERT M. SUSSMAN for unexplained reasons. cal trials can last more than six years, and the sions if it returned to the bargain- Paradise Valley, Ariz. The question since has been if the bill would third part involves as many as 3,000 patients. ing table. When all was said and die. Mr. Walden deserves credit for finally ac- This model is untenable as discoveries target done, the non-treaty that was The theory that President signed was worth little because it Trump’s moves to pull out of the cepting the Johnson version instead of insisting ever smaller patient populations in the emerg- didn’t even provide for anytime, Iran nuclear deal marks a new stra- on his own bill that would fail. The delta be- ing era of biomedicine. anywhere inspections, something tegic direction would have some tween the two versions involved in part who Dr. Gottlieb has been updating FDA pro- the U.S. said it would absolutely in- merit if he had the same skills, could “try” drugs—did a patient’s diagnosis cesses, but the movement could use more politi- sist on at the start of the negotia- background and ability to line up have to be terminal?—but the differences aren’t cal firepower from Congress. Let’s hope the tions. Those who claim Iran is living our allies as the George H.W. Bush worth derailing the project. right-to-try moment is the first of many to help administration did with Iraq. Sadly, The core of the bill is to allow drug manufac- patients receive potentially life-saving treat- the contrasts couldn’t be greater. turers and patients to enter into mutual agree- ments as soon as possible. Government Causes High TOM SCOTT Electric Rates in California Morgan Hill, Calif. Suffer the Little Children The letters of May 16 address Who can argue Mr. Henninger’s California’s new solar power for perspicacious point that our Euro- homes mandate. I identify with Ste- pean “allies” view President hat’s more important—finding a fos- group’s right to religious liberty by penalizing ven Schlosser. We were right there Obama’s nettlesome non-treaty nu- W ter home for needy children, or iden- it specifically for Catholic beliefs, and that the with him at $3,200-plus a year, and clear deal with Iran solely through tity politics? The answer from the city is violating the First Amendment by compel- that was with no air conditioning, the prism of their raw commercial political left is exacerbating a ling speech that Catholic So- at 29-cents-plus per kilowatt hour, interests? crisis in Philadelphia that is Philadelphia sacrifices cial Services opposes. while subsidizing Arizona. After in- Living under America’s military leaving hundreds of children to Catholic foster services Beyond the law, Philadel- stalling 26 solar panels, we now get umbrella since World War II has languish in group homes. phia’s coercion hurts the $80 back at the end of the year, lulled Western Europe into thinking Catholic Social Services has to identity politics. city’s most vulnerable chil- and our electric bills are under $10 that trading with the enemy can worked in Philadelphia for de- dren and the families who a month. guarantee the safety of Western civ- What is bad in our “nanny ilization from those who don’t value cades and oversees about 100 want to care for them. One of state” is the increase in our utility the Western tradition. foster homes. But two months ago the city the plaintiffs in this case is Cecelia Paul, who bills to pay for “green” energy. We JAMES HYLAND abruptly halted referrals to the group because has opened her home to more than 130 children have folks complaining on the web- Beechhurst, N.Y. the Catholic charity holds Catholic beliefs about over the past 46 years. Philadelphia honored site Nextdoor.com about their elec- same-sex marriage. Last week several foster par- her as one of its foster parents of the year in tric bills who have no idea the ents represented by the Becket Fund for Reli- 2015. But because Mrs. Paul is certified through state legislature under Gov. Jerry Pepper ... gious Liberty sued in federal court to resume the Catholic Social Services, her home has been va- Brown is the cause. SoCalGas and And Salt group’s foster-care placements. cant since April. PG&E are blamed as evil, greedy Catholic Social Services works with children Philadelphia claims foster parents like Mrs. corporations, with no media saying THE WALL STREET JOURNAL regardless of race, gender or sexual orientation. Paul could simply work through another one of otherwise. LARRY YOUNG But on Catholic religious grounds the charity its partners. But switching can be a bureaucratic Ventura, Calif. won’t certify same-sex or unmarried couples as hassle, and the red tape is only part of the prob- foster parents, instead referring them to another lem. Catholic Social Services provides its foster Numerous readers wrote to extol state-approved organization. More than two families with holistic support, building relation- the virtues of solar panels. My only dozen alternative agencies exist, and Catholic ships that often last for years. The group’s social comment: If solar panels are so Social Services says no gay couples have even workers are there for midnight phone calls and worthwhile, they shouldn’t need sought its help for certification, much less filed weekend emergencies. “Mrs. Paul trusts them, government subsidies or mandates. a complaint after being turned away. relies on them, and she cannot imagine starting ALEX PRIEGER Philadelphia has nonetheless denounced from scratch and fostering children without Agoura Hills, Calif. Catholic Social Services as discriminatory and them,” the lawsuit says. launched an investigation into its practices. Un- As the lawsuit notes, the real discrimination Letters intended for publication should less the group agrees to provide written certifi- here is religious. Philadelphia is penalizing Cath- be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, cations for same-sex foster parents, the city will olic Social Services because its beliefs about or emailed to [email protected]. Please terminate its contract in June. marriage don’t mesh with progressive cultural include your city and state. All letters The Becket Fund suit argues that this is a values. To protect the city’s conscience, Philadel- are subject to editing, and unpublished “Dobson has a tremendous sense breach of contract with Catholic Social Services. phia demands that Catholics violate their own. letters can be neither acknowledged nor of responsibility. He might enjoy returned. It also claims that Philadelphia is violating the Who is really intolerant here? taking some blame.” THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | A15 OPINION Rough Social Justice at Evergreen State

By Jillian Kay Melchior off campus. Biology professor Bret what I know about identity politics: Weinstein declined, and in an email The most important color in the coun- ere’s the math behind an called the decree “a show of force, try is, was, and always will be green,” academic hemorrhage: and an act of oppression itself.” Af- he said. Half of Evergreen’s funding Between 500 and 600 ter the email circulated on campus, comes from tuition. The external re- H fewer students will at- enraged students disrupted his class view found an impact on operational tend Evergreen State on May 23. revenue so significant that it “will po- College next fall than in 2017, ac- Police tried to respond, but pro- tentially generate another sense of cording to internal estimates. That testers blocked them from the class- ‘trauma’ on the campus.” means projected full-time enrollment room. Later that day, Mr. Bridges or- Based on fall 2018 enrollment is down as much as 17% from 3,500 dered campus police chief Stacy projections, nearly 25 full-time ad- last fall. When President George Brown to accompany him to a meet- juncts will lose their jobs, provost Bridges saw an internal email outlin- ing with student activists—but to Jennifer Drake wrote in a Feb. 15 ing these numbers, his impulse was leave behind her uniform and badge. email. The college has had to tap its to get the public-relations depart- Mr. Bridges stood passively as stu- emergency reserve fund for $1.3 mil- ment to finesse them. Otherwise, he dents interrupted Ms. Brown’s lion so far to cover the costs of the wrote, they “might end up appearing speech with laughter, vulgar lan- “events of spring 2017,” including le- elsewhere in ways that will be used guage and boos. The next day stu- gal settlements. Evergreen has de- against us.” dents occupied the library, using fur- layed the construction of a $42 mil-

niture to barricade the doors. ISTOCK/GETTY IMAGES lion, 375-bed dorm. Theprotestsgrewsoaggressive In response to the growing crisis, The Washington college’s that many on campus feared for of learning to a new type of anti-in- but after the protests, undergraduate Evergreen administrators have re- enrollment plummets as their physical safety. Mr. Bridges or- tellectualism,” Ms. Shockey later told retention “reached its lowest perfor- fused to accept responsibility. The ex- dered the police to stay away. “If law me. “Free speech and good discourse mance in over a decade.” Only 60% of ternal review gives them cover here, even the left sours on enforcement were to come in,” he was lost—and then good teachers,” first-time, first-year students who en- commending their “responsive and protest-mob politics. said later, “there would be perhaps she added. “This is about where the rolled last fall stayed through the end appropriate” actions amid the pro- violence, perhaps damage to prop- alt-left seems to be taking us.” of the school year, “a full 8 percent- tests. It blames the media for having erty, damage to students.” Ms. Others joined the movement age points below the prior year,” the “imposed its own narrative on the Brown ultimately resigned, and this against Evergreen. Applications for report said. events and transformed them into an Mr. Bridges has himself to blame. week plans to file a tort claim alleg- fall 2018 are down 20%. Sandra Kai- Among those who remain, many example of ‘a campus in meltdown.’ ” Nationwide, after administrators ing a hostile work environment. Mr. ser, Evergreen’s vice president for resent how the administration ca- And it faults Mr. Weinstein for taking have capitulated to disruptive stu- Weinstein and his wife, who also college relations, claims the low ap- tered to the most radical students. “I “advantage of this situation to make dent activists, colleges have lost the taught at Evergreen, filed a similar plication and enrollment numbers feel like the rest of us are getting a national news story” and “make a support of donors, alumni, parents lawsuit last fall. The college de- may not be as bad as they look be- dragged through the mud for what’s political point.” and prospective students. If there manded their resignation as a condi- cause many students commit to Ev- essentially a Marxist outburst,” said Administrators have since dou- was one school you’d expect to defy tion of its $500,000 settlement. ergreen “at the last moment.” She James Stewart, who will graduate bled down on identity politics. Ever- this trend, it would be Evergreen, in As the protests raged, Kirsten added that “we normally expect en- from Evergreen this spring. green advertises a “bias response Olympia, Wash. Founded in 1967, the Shockey of Oregon gave administra- rollment to decline in a full-employ- Last fall, Mr. Stewart conducted team” to handle perceived slights. It college is proudly to the left of tors a warning. She and her husband ment economy,” given that working an in-depth survey of some 50 stu- has increased funding for new social- Berkeley and Middlebury. Its motto lean left. Their son Jakob attended adults, veterans and community-col- dents for his statistics class. Almost justice administrators and support is literally “let it all hang out”—om- Evergreen, and they assumed their lege transfers account for about half all called themselves progressive, staffers. Evergreen employees now nia extares—and radical activism has daughter would, too. But they were the student body. but Mr. Stewart found “enormous go through “cultural competency, always been part of the pitch. But alarmed by what she called the At least someone is sick of all the internal backlash, especially from sensitivity and antibias training.” new records show that Evergreen “witch hunt” atmosphere and “ero- winning. But an independent report those who are approaching gradua- And in a May 14, 2018, email on hasn’t been spared the backlash that sion of free speech” on campus. As on the protests, commissioned by Ev- tion or have a finger on the pulse of “leaner leadership at Evergreen,” Mr. has plagued schools like the Univer- decision time approached, Ms. ergreen last October, reached a differ- what’s happening outside of Ever- Bridges outlined an administrative sity of Missouri. This time, it’s com- Shockey told Mr. Bridges in an email, ent conclusion. Published in April, it green.” More than one-third of the reorganization plan heavy on “equity ing from the left. “we are watching closely.” said that the declines in applications students said “academic mobbing” and inclusion.” Evergreen’s public controversy They didn’t like what they saw. and enrollment were indeed “under- was a top concern, Mr. Stewart All this suggests things are going began with the “Day of Absence” last Ms. Shockey’s daughter crossed Ev- stood to be at least in part the result said. “They now feel like they can’t to get worse for Evergreen. Which April. In earlier years, minority stu- ergreen off her list, following the ad- of the disruptions of last spring.” speak their mind without getting would be rough social justice. dents and faculty held an annual vice of her brother. “The way iden- Moreover, current students were flee- attacked.” one-day walkout, but in 2017 orga- tity politics played out looked to us ing. Retention rates had long been These findings bode ill for the col- Ms. Melchior is an editorial page nizers instructed all whites to stay like a university going from a place “relatively stable,” the report said, lege Mr. Stewart still loves. “Here’s writer at the Journal. Before Meeting Kim, Trump Had to Repudiate the Iran Deal

By Tod Lindberg or both. But what is done by execu- of heart over the 15-year course of the Second, add more-intrusive verifica- negotiators, starting with Secretary tive action can be undone by execu- agreement. That fits with Mr. tion measures. Third, address Iran’s of State Mike Pompeo. hen President Trump an- tive action. America’s credibility, Obama’s oft-expressed vision of his- ballistic-missile program (on which Many of Mr. Trump’s critics have W nounced America’s with- therefore, wasn’t on the line—even if tory bending in a liberal arc. But the the current deal is silent). Fourth, demanded to know what comes next drawal from the Iran nu- Mr. Obama’s might have been. premise seems highly dubious. More- find a way to curb Iran’s regional ad- with Iran, as if war were the only al- clear deal two weeks ago, critics There’s some truth in this, but it over, as negotiations were wrapping venturism, including in Syria. ternative. It isn’t. In the first place, warned the move would undermine misses a more basic point. Mr. up, Mr. Obama seemed if anything What would the public think if a the deal remains ambiguously in U.S. credibility just when it was Trump campaigned against the Iran North Korea deal allowed Pyongyang place even without the U.S. Iran needed most: on the eve of negotia- deal not in principle, but because he to resume its nuclear program after hasn’t withdrawn yet, and its nuclear tions with North Korea over its nu- saw its terms as bad for the U.S. Otherwise North Korea 15 years? And included inspection activities so far don’t seem to exceed clear-weapons and missile programs. Even if you disagree, taking his criti- could have demanded the procedures that were inadequate to what might be called ordinary cheat- If Mr. Trump was willing to rip up cism seriously shows why the high- verify compliance? And stood silent ing. This ambiguity may be fairly the Iran deal, which had won the stakes negotiations with North Korea same lenient terms, and on North Korea’s rapidly advancing stable, as Mr. Macron plays “good blessing of the United Nations Secu- all but required Mr. Trump to dump negotiations would fail. ballistic-missile program? And pro- cop” to Mr. Trump’s “bad cop.” rity Council and America’s biggest the Iran deal. If he had kept it in vided Mr. Kim with billions of dol- France continues to seek progress on allies, why would Kim Jong Un be- place notwithstanding his power to lars upfront in sanctions relief and the “four pillars,” with the induce- lieve the U.S. would abide by any withdraw, Mr. Kim could seize on its other assistance? That would be a ment that Iranian concessions could new agreement? provisions as the starting point for more eager than Iran to conclude a dubious deal by any light, and would draw the Americans back in. The counterargument from Trump the coming negotiations. Why would deal. The flurry of American conces- certainly be bad by Mr. Trump’s More broadly, if Mr. Trump is loyalists was mainly to blame Presi- Mr. Kim accept a worse deal for sions at the end of the process raised terms. right that he can obtain better terms dent Obama for failing to make the North Korea than what Iran had ob- suspicions that better terms might Mr. Macron sought more time to from Mr. Kim, then a North Korea Iran deal binding. If it had been rati- tained? Leaving one bad deal still ac- have been possible. negotiate new terms with Iran, and deal could become the template for fied as a treaty by a two-thirds vote tive would have established the prec- Hence the “four pillars” for a bet- the U.S. might well have granted it a reworked Iran deal. In that sense of the Senate, the agreement would edent for another bad deal. ter agreement that French President before withdrawing—except for the the future of Iran’s nuclear program have been harder to depart. But Mr. The fundamental problem with the Emmanuel Macron put forward last press of events with North Korea. may run through Pyongyang. Obama evidently believed that ratifi- Iran deal is that while it buys time, month during his visit to Washing- Mr. Trump needed to repudiate the cation was unattainable, unnecessary which is good, it seems to do so in the ton: First, make the restrictions on deal before it became an impossi- Mr. Lindberg is a senior fellow at to ensure his successors’ compliance, hope that Tehran will have a change Iran’s nuclear programs permanent. ble hindrance for his North Korea the Hudson Institute. Facebook Tips the Scales in Ireland’s Abortion Referendum

ByMarceldelaCruz about for some time.” But the so- transparent effort to affect the ref- that have done nothing illegal has a reputation in Ireland, it isn’t cial-media giant injected itself into erendum’s outcome. from campaigning in a perfectly for neutrality. A quick look at the acebook announced on May 8 a fierce debate over repealing Ire- The truth is the Irish govern- legal matter.” site’s Daily Edge section reveals F that it would take it upon it- land’s constitutional ban on abor- ment and many in the traditional Facebook also announced in its an editorial bias for the pro-repeal self to monitor the Republic tion only 17 days before the vote. If media have grown concerned that May 8 statement that it would “yes” campaign. Recent featured of Ireland’s May 25 referendum on the company indeed had a long- voters will reject their push for le- enlist the fact-checking help of articles bear headlines such as abortion by banning all ads on the standing concern about election in- galized abortion. Social media is “Cillian Murphy sent a cake to To- topic from foreign groups. The an- tegrity, it should have announced one of the few avenues of public gether for Yes to thank them for nouncement read, in part: “We are its change of policy before the de- outreach left to those who oppose The social-media giant all their hard work” and “A bunch an open platform for people to ex- bate got started. repeal of the Irish Constitution’s deals a last-minute blow of Irish comedians including press ideas and views on both While Facebook claims to be act- pro-life Eighth Amendment, which Aisling Bea and Sharon Horgan sides of a debate. Our goal is sim- ing in the spirit of democracy and voters overwhelmingly approved to the campaign against have made a video asking people ple: to help ensure a free, fair and transparency, its new policy isn’t in in 1983. An independent member repealing restrictions. to be their yes.” transparent vote on this important line with Irish law. The 1997 Elec- of the Dáil Éireann, Ireland’s This site hardly seems a reli- issue.” toral Act prohibits foreign donations lower house of Parliament, ac- able partner in Facebook’s stated The announcement featured for “political purposes” to Irish poli- cused Prime Minister Leo Varad- effort to protect views on “both plenty of incongruities. Facebook ticians or organizations but doesn’t kar last week of lobbying Face- TheJournal.ie, an online newspa- sides of the debate.” Who checks claimed that helping “protect the say anything about foreigners buy- book to ban advertising related to per. “Stories rated as false by the checkers? integrity of elections and referen- ing online ads. Facebook is in fact the referendum on abortion. Leg- TheJournal.ie will see their distri- As a co-founder of FrontPage.org, dums from undue influence” was limiting the right of free expression islator Mattie McGrath said the bution significantly reduced,” the a website that has published arti- “an issue we have been thinking of those who use its platform in a ban was “preventing campaigns statement said. If TheJournal.ie cles in support of the Eighth Amendment, I have seen firsthand how Facebook puts its thumb on the scale. Earlier this month Face- PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Notable & Quotable: Phelps book’s ad service denied our at- Rupert Murdoch Robert Thomson tempts to promote two op-eds by Executive Chairman, News Corp Chief Executive Officer, News Corp Sean Higginswriting at Washing- employees, our employees, California journalist Bruce Arnold of the Irish Gerard Baker William Lewis Editor in Chief Chief Executive Officer and Publisher tonExaminer.com, May 15: employees. I think the next increases Independent, Ireland’s most popu- are going to be bad for employees. I lar daily newspaper. It also Matthew J. Murray Karen Miller Pensiero DOW JONES MANAGEMENT: Executive Editor Managing Editor Mark Musgrave, Chief People Officer; Bill Phelps, co-founder and chief think it is pushing it too far, too fast blocked our attempts to promote a Edward Roussel, Chief Innovation Officer; Jason Anders, Chief News Editor; Thorold Barker, executive officer of the California- and I think employees will be hurt by letter signed by more than 100 Anna Sedgley, Chief Operating Officer Europe; Elena Cherney, Coverage Planning; based Wetzel’s Pretzels franchise, those increases,” Phelps said.... Irish lawyers defending the Eighth Andrew Dowell, Asia; Neal Lipschutz, Standards; OPERATING EXECUTIVES: was a prominent advocate for the Phelps was, by his own admission, Amendment. Meg Marco, Digital Content Strategy; Ramin Beheshti, Product & Technology; Alex Martin, Writing; Michael W. Miller, Features Kenneth Breen, Commercial; Golden State’s $15 a hour minimum far more “bullish” on the increase Last week Facebook’s Dublin & Weekend; Shazna Nessa, Visuals; Jason P. Conti, General Counsel; wage for several years, but has re- previously. In a 2016 Forbes op-ed ti- lawyers rejected our request to re- Rajiv Pant, Technology; Ann Podd, News Frank Filippo, Print Products & Services; cently changed his opinion. He now tled, “The Minimum Wage Hike is store FrontPage.org’s ability to in- Production; Matthew Rose, Enterprise; Steve Grycuk, Customer Service; Michael Siconolfi, Investigations; Kristin Heitmann, Chief Commercial Officer; says that the rate...isalready Good for business,” he argued that form the Irish public on issues re- Nikki Waller, Live Journalism; Nancy McNeill, Advertising & Corporate Sales; squeezing his businesses and hurting there had been no downsides for his garding the referendum. It isn’t Stephen Wisnefski, Professional News; Christina Van Tassell, Chief Financial Officer; workers, and he worries things will business at all. “I’ve paid very close too late for the company to admit Carla Zanoni, Audience & Analytics Suzi Watford, Chief Marketing Officer; Jonathan Wright, International likely get worse as minimum wage attention to our business as Califor- its mistake and reverse its deci- Paul A. Gigot, Editor of the Editorial Page; DJ Media Group: rises to the $15 level. nia has raised the minimum wage sion. That would truly serve the Daniel Henninger, Deputy Editor, Editorial Page Almar Latour, Publisher “We’ve had a 38 percent increase over the past couple of years. And interest of freedom, fairness and WALL STREET JOURNAL MANAGEMENT: Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; in the minimum wage from 2013 to what I found was stunning. When transparency. Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head now. They’re looking at another 35 California increased the state mini-

EDITORIAL AND CORPORATE HEADQUARTERS: percent increase in the minimum mum wage from $8 to $9 an hour in Father de la Cruz is a Catholic 1211 Avenue of the Americas, New York, N.Y., 10036 wage over the next four years. I think July 2014, our same-store sales dou- priest based in Ireland and co- Telephone 1-800-DOWJONES the past increases have been good for bled in the next two weeks....” founder of FrontPage.org. A16 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. WORLD NEWS In Gaza, a Rare Opening Sparks Exodus

Accustomed to tight increasingly frustrated. On Saturday, a young man borders, Palestinians set himself on fire on the take advantage of street in Gaza City, shouting: “Curse the father of the gov- Egypt’s brief move ernment,” as the flames seared his flesh and a crowd BY ABU BAKR BASHIR rushed to help him, according AND JARED MALSIN to video footage of the inci- dent. KHAN YOUNIS, Gaza Strip— “There’s a lack of hope,” A taxi driver who hopes to said Omar Shaban, a Gaza- move to Turkey. An aspiring based political economist. law student. A father seeking “One of the most destructive opportunities for his children. things for the Gaza population They are among the hun- is not that they suffer now. dreds of Palestinians in the They don’t know when their Gaza Strip who have rushed suffering will end.” for the exit since Egypt Many people waiting in opened its border last week. Khan Younis in recent days It is a rare opportunity to said they supported last leave a territory that has been week’s protests at Gaza’s bor- largely sealed off from the der with Israel, which coin- outside world since Israel and cided with the opening of the Egypt tightened border con- new U.S. Embassy in Jerusa- trols after the Islamist group lem, which Palestinians also Hamas took power in 2007. claim as their capital. Egyptian President Abdel But many also said they Fattah Al Sisi ordered the Ra- stayed away, and some ques- fah border crossing opened for tioned the risk. a month after Israeli forces “It’s fruitless,” said Karam killed some 60 people during ADEL HANA/ASSOCIATED PRESS Abu Ereban, 18, who arrived at protests last week at Gaza’s Palestinians in Khan Younis, Gaza Strip, on Tuesday waited to enter Egypt, which has ordered the Rafah crossing opened for a month. the border on Sunday and said border with Israel. he hoped to travel to Algeria The Egyptian border is usu- can’t find words to describe Ashraf Saqer said he had pre- his mother and his father, who West Bank, which is gov- to study law. “People go there ally open only intermittently, how miserable the situation viously obtained a visa to was seeking medical treat- erned by the Palestinian Au- and get shot for nothing.” and thousands of people are is.” travel to Jordan, but couldn’t ment. thority. In the converted sports on the waiting list. Gaza residents with bags get permission to leave Mr. Al Najar, a taxi driver, Now, an estimated two mil- club, a concrete building with Many Gazans who have packed and children in tow through the Israeli border. said he hoped to find work in lion people live in an area the a thin metal roof, Palestinians come to the Egyptian border have been arriving in recent “I’m searching for a good Turkey one day, inspired in size of Washington, D.C. sat and talked to one another in recent days are united by days in Khan Younis, where life for myself and my family,” part by Turkish soap operas A series of three wars be- or pecked at mobile phones in unfulfilled ambition, frus- they wait on plastic seats said Mr. Saqer, who spoke by he had seen on television. tween Hamas and Israel have recent days. Some stared trated by the collapsing Gaza fixed to concrete bleachers in phone Monday from the club, Israel and Egypt effectively compounded Gaza’s woes. ahead as if taking in an invisi- economy and eager to jump- a converted sports club. where he said he was waiting sealed off Gaza after Hamas The United Nations said in ble soccer match. start lives that have been on When their names are with his wife and three chil- took power. a report last year that Gaza Bilal, 27, who was waiting hold. called, they file down a corri- dren. The border closure has dev- was becoming unlivable due in the club on Sunday, said he “People used to work in the dor to a separate room to be And some said they didn’t astated Gaza’s economy and to a lack of work opportuni- was also planning to travel to Gaza Strip and in Israel and processed before boarding a plan to return. Mohamed Al undercut the livelihoods of ties, the failure of the health- Egypt to enroll in a master’s make good money,” said Imad bus to the nearby border. Najar, 23, who was waiting in thousands of Palestinians. care system and other prob- degree program. “I need to Al Hamayda, who is 51 years Many have been trying to the club on Tuesday, said he Many used to work and lems. travel,” he said. “It is my fu- old and unemployed. “Now, I get out of Gaza for years. was traveling to Egypt with study in Israel and in the Gaza residents have grown ture.” General Is Picked to Lead Forces in Afghanistan U.S. Adds BY JESSICA DONATI there and later served multi- number of American personnel AND NANCY A. YOUSSEF ple combat deployments to Af- to around 14,000. Sanctions ghanistan and Iraq. Gen. Miller has served in So- WASHINGTON—Lt. Gen. If all goes as expected, Gen. malia, Afghanistan and Iraq, Scott Miller was chosen as the Miller will take over the Afghan and now will head a mission On5Iran next commander of U.S.-led war at a time when a frag- that is now heavily dependent forces in Afghanistan, senior mented, Taliban-led insurgency on American special-operations military officials said, after remains in control of swaths of forces that are backing local Af- Officials two years in charge of the mil- the countryside and is renew- ghan army and police units. The BY IAN TALLEY itary’s secretive Joint Special ing a push into major cities, de- Afghan government took over Operations Command. spite the arrival of thousands the war against the Taliban in WASHINGTON—The Trump Gen. Miller, a decorated spe- of additional U.S. forces. 2014, but it continues to rely on administration imposed sanc- cial-operations soldier, will be Last week, the Taliban over- the U.S. for most of its funding tions on five Iranian officials it the ninth U.S. general in 17 ran the capital of Farah prov- and extensive military support. said are responsible for pro- years to take charge of the war ince, taking over key govern- Gen. Miller faces a complex viding Yemeni rebels with

in Afghanistan and the first to SCOTT OLSON/GETTY IMAGES ment buildings before being job in Afghanistan, where the long-range missiles being used be appointed under President Lt. Gen Scott Miller, second right, in Afghanistan in 2014. driven out by U.S. fighter jets in war has grown more compli- to target Saudi Arabia. Donald Trump. The Pentagon support of local forces. It was cated in recent years, as Wash- The U.S. action on Tuesday declined to comment until the around the world with drones contingent of Delta Force in the first near-loss of an Afghan ington accused rival countries is part of a broader White decision is formally announced. and elite units that included the Battle of Mogadishu in provincial capital since the Tali- such as Russia and Iran of House strategy to isolate Iran As JSOC commander, Gen. the Army’s Delta Force and the 1993, recounted in the book ban overran Kunduz in 2016. backing the insurgency, charges and rein in Tehran’s support Miller headed some of Amer- Navy’s SEAL Team Six. and movie “Black Hawk Mr. Trump decided last Moscow and Tehran deny. for proxies involved in con- ica’s most-secretive missions, Among those operations, he Down.” He was awarded a year to send about 4,000 addi- —Michael Phillips flicts across the Middle East. pursuing suspected terrorists was a captain in charge of a Bronze Star for his service tional troops, bringing the contributed to this article. The U.S. Treasury Depart- ment added five officials linked to the Islamic Revolu- URBI ET ORBI | By Francis X. Rocca tionary Guard Corps’ Al-Ghadir Missile Command and related programs, including Mahmud Bagheri Kazemabad, the mis- Catholic Church Faces a Fight Over Gay Blessings sile unit’s commander. The IRGC, Iran’s elite military unit, already is under U.S. sanctions. ROME—Reports that Pope Protestants may receive “Their actions have enabled Francis told a sex-abuse vic- Catholic Communion only in the Houthis to launch missiles tim that God made him gay highly exceptional cases. at Saudi cities and oil infra- have drawn headlines this Pope Francis has written structure,” Treasury Secretary week, with many observers that “there are absolutely no Steven Mnuchin said. “They inferring a new level of ac- grounds for considering ho- have also disrupted humanitar- ceptance of homosexuality, mosexual unions to be in any ian aid efforts in Yemen and which the cat- way similar or even remotely threatened freedom of naviga- echism of the analogous to God’s plan for tion in key regional waterways.” Catholic marriage and family.” Iran’s mission to the United Church de- Nations didn’t respond to re- scribes as ather Martin says the quests to comment. “objectively potential for confusion U.S. and United Nations of- disordered.” F is high. ficials say Iran provided the The Vatican spokesman “If a priest stands up, in Houthi rebels in Yemen with declined to confirm or deny his collar especially, and says the Qiam-1 ballistic missile, an the statement, citing a policy a prayer at a reception, some Iranian long-range surface-to- of not commenting on the people might come away and surface guided missile. The pope’s private conversations. say, ‘Isn’t that great, that the Houthis have fired such weap- But no aspect of Pope Catholic Church approves ons at Saudi targets over the Francis’ five-year reign has this now?’ ” he said. “It past several months, including been better known or more would be misleading to peo- major oil facilities critical to controversial than his concil- ple and in a sense unfair to global crude supplies. iatory approach to gay peo- the couple, too.” “These designations expose

ple, most famously expressed TONY GENTILE/REUTERS Yet it’s hard to imagine the the extent of Iranian support in his 2013 words about gay Pope Francis, left, at the Vatican on Monday, in 2013 said about gay priests, ‘Who am I to judge?’ Vatican under Pope Francis to the Yemeni missile pro- priests: “Who am I to judge?” categorically forbidding gram,” said Behnam Ben Tale- Conservatives have been Several bishops in Bel- can priests do show support in parts of the world-wide priests around the world blu, an Iran expert at the prompt to argue that Pope gium and Germany have other ways, such as saying church go their own way on from such activity. Not only Foundation for Defense of De- Francis’ statements on ho- called for allowing priests to grace at a wedding reception important matters, including would such a prohibition mocracies, a think tank that mosexuality, confirmed or bless couples in committed or celebrating a private Mass how to translate the Mass into clash with the welcoming has long called on Washington otherwise, don’t conflict same-sex relationships. with the couple later on. “But local languages and whether tone the pope has adopted to- to impose more aggressive with church teaching or sug- Cardinal Reinhard Marx of all of these priests have done to allow divorced people in ward gays; but it would also penalties against Tehran. gest toleration of homosex- Munich, a top adviser to the so very cautiously.” second marriages to receive conflict with the emphasis he Although the Houthis don’t ual acts, but simply reflect pope, opposes a uniform pol- Most church leaders in Af- Communion. This month, the has placed on the exercise of have nuclear weapons, the the basic Christian message icy on the matter, but says rica are adamantly against pope indicated that it was up individual conscience in Qiam-1 missile is capable of of God’s love for all people. individual pastors should blessing same-sex unions. to the German bishops confer- moral decision-making. carrying a nuclear warhead, make arrangements on a “I’m sure there are ele- ence to decide whether to al- As more governments Mr. Taleblu said, adding to et the pope’s stance case-by-case basis. ments of value in an adulter- low some Protestants to re- around the world legalize Western officials’ worries has encouraged a The situation is different in ous situation. Does that mean ceive Communion in Catholic same-sex marriage, the Cath- about regional proliferation of Y greater openness to other parts of the world. The we must bless adulterous churches in Germany. olic Church’s internal debate weapons of mass destruction. homosexuality among the Rev. James Martin, author of unions?” said Cardinal Wil- That last decision drew a over whether to recognize By imposing sanctions on church’s hierarchy, leading to “Building a Bridge,” a book frid Napier of Durban, South public denunciation from such unions—and if so, the Iranian officials allegedly calls for the appreciation not about the church’s relationship Africa. “If same-sex unions Dutch Cardinal Willem Eijk, how—is likely to get only involved in proliferation of just of gay people but of gay with gay Catholics, says he has are going to be blessed, is the who said the pope should more intense and fractious. weapons of mass destruction, relationships. That trend is never heard of Catholic priests church going to say, ‘OK, you have given the Germans —Francis X. Rocca is the the U.S. is also trying to in- straining any appearance of a in the U.S. formally blessing can bless polygamous ones’?” “clear directives, based on Journal’s Vatican crease the pressure on allies consensus on the subject same-sex unions inside a Pope Francis has shown a the clear doctrine and prac- correspondent. This column to take a harder line on Teh- within the church. church. He says some Ameri- willingness to let different tice of the church,” that appears from time to time. ran. TECHNOLOGY: AMAZON DRAWS CIVIL-RIGHTS FIRE OVER FACIAL RECOGNITION B4 BUSINESS&FINANCE

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Job Hop Marvin Ellison stabilized Marvin Ellison joined Penney sales at J.C. Penney and Facebook when it was in crisis... faces a similar task at much bigger Lowe’s. J. C. Penney net income/loss CEO Skips $1.0 billion . Ellison 0.5 becomes CEO 0 Tough EU –0.5 –1.0 Questions –1.5 BRUSSELS—Mark Zucker- FY2008 ’10 ’12 ’14 ’16 berg apologized to European ...and he leaves when its sales Union lawmakers over the are still weak... fake-news and privacy scan- dals engulfing Facebook Inc., Same-store sales, annual change but rebuffed suggestions that 5% the company has outsize mar- 0 -5 By Natalia Drozdiak, -10 Valentina Pop -15 and Sam Schechner -20 -25 ket power and avoided re- FY 2008 ’10 ’12 ’14 ’16 sponding to many difficult questions. ...to join Lowe's, which hasn't Speaking at a hearing at the kept pace with Home Depot. European Parliament Tuesday Same-store sales, annual change on how the social network 10% handles Europeans’ data, Face- Lowe's Home Depot book’s CEO echoed his recent 5 testimony before U.S. Con- 0 gress on similar issues. “We didn’t take a broad enough -5 view of our responsibility— -10 that was a mistake and I’m FY 2008 ’10 ’12 ’14 ’16 sorry for it,” Mr. Zuckerberg said. “I’m committed to get- Source: S&P Global Market Intelligence ting this right.”

THE WALL STREET JOURNAL. JESSICA A. STEWART/THE ST. JOSEPH NEWS-PRESS/ASSOCIATED PRESS European lawmakers pressed him on the steps the company has taken since the revelations that data-analytics Penney’s Chief Moves to Lowe’s firm Cambridge Analytica im- properly obtained the personal information of as many as 87 Marvin Ellison must the department-store chain tail market that we’ve seen in The strong U.S. economy that Ellison put in place at JCP million Facebook users. They away from apparel toward ap- over 50 years,” Mr. Ellison told and low unemployment are has partly delivered but is still also questioned Mr. Zucker- help rejuvenate chain; pliances. Last year, he closed analysts last week on a confer- helping some big chains that far from complete,” said Neil berg over the spread of fake department-store more than 100 stores and ence to discuss Penney’s quar- have managed to close weaker Saunders, managing director of news on the Facebook plat- slashed jobs. But the company’s terly earnings. He previously locations, invest in store im- GlobalData Retail, a consulting form, the company’s market turnaround unfinished sales have sputtered, and its worked at Home Depot. and provements and capture more firm. His “exit will also raise power and how the social net- once-iconic stature has dimin- Target Corp. online orders. Last week, Wal- speculation that he is not par- work will comply with the EU’s BY SUZANNE KAPNER ished as losses have piled up. Many traditional chains like mart Inc. and Macy’s Inc. re- ticularly optimistic about the new privacy law, known as the AND SARAH NASSAUER Lowe’s, meanwhile, has been Penney continue to struggle as ported rising same-store sales future prospects of JCP,” Mr. General Data Protection Regu- searching for a new CEO to spending moves to the web and for the latest quarter. Saunders said. lation, which enters into force J.C. Penney Co., struggling boost results at the home-im- Amazon.com Inc. squeezes re- On Tuesday, Lowe’s said it Penney “is in a much better Friday. to reverse its decline, is losing provement chain, which faces tailing profits. Toys ‘R’ Us Inc. had hired Mr. Ellison and he position today than it was four Some Parliament members its chief executive to Lowe’s pressure from an activist inves- is liquidating all its U.S. stores would join the seller of paint years ago,” a company spokes- fumed that the format of the Co., another retailer trying to tor as it labors to keep pace and Sears Holdings Corp. con- and plywood on July 2. Penney woman said, noting that dur- hearing didn’t allow the CEO fix itself. with the rapid revenue gains at tinues to shrink. Nine West shares fell 6% to $2.35 while Please see LOWE'S page B2 to directly respond to all ques- Marvin Ellison, who joined Home Depot Inc. and Claire’s Stores filed for Lowe’s shares slipped 1.9% to tions posed to him. Penney in 2014 and became “This is arguably the most bankruptcy protection in re- $85.75. Heard on the Street: Penney As is typical of most Euro- CEO the following year, shifted challenging and competitive re- cent months. “The turnaround program is running out of luck...... B14 pean Parliament hearings, Mr. Zuckerberg grouped his re- sponses after all lawmakers spoke. He didn’t respond to questions over whether the Shareholders Rebuke Wynn Resorts on Pay social network would ever al- low users to opt out of tar- BY CHRIS KIRKHAM our stockholders through the after Mr. Wynn resigned in viously said that last year’s geted advertising, and Matt Maddox process.” February, received a stock stock awards were part of a whether he thought it was Shareholders in Wynn Re- got an In a separate filing Tuesday, grant of 200,000 shares val- renewal of Mr. Maddox’s and morally correct to collect data sorts Ltd. voted overwhelm- additional Wynn Resorts announced that ued at $19.2 million last year. Ms. Sinatra’s employment con- on people who don’t use Face- ingly against the company’s 50,000 shares the board’s compensation Kim Sinatra, executive vice tracts, and that earlier long- book. executive compensation plan, after he committee would be composed president and general counsel, term stock grants had expired. British Conservative mem- according to results released became chief of three new female directors received 100,000 shares val- He added that a third-party ber Syed Kamall described the Tuesday, a rare public rebuke executive. who were appointed last ued at $9.6 million. consultant hired by the com- process as a “get out of jail of the corporation’s leadership month. Mr. Maddox received an ad- pany found that Mr. Maddox’s free card” because it gave Mr. in the months since founder Shareholders voted strongly ditional 50,000 shares after he compensation was in line with Zuckerberg “too much room to Steve Wynn resigned amid indicated that the company in favor of two women, Patri- took over as CEO in February, a group of other casino, hotel avoid the difficult questions.” sexual-misconduct allegations. was prepared to act on the re- cia Mulroy and Betsy Atkins, according to securities filings. industry and fashion CEOs. Mr. Zuckerberg pledged to Shareholders voted nearly sult. The board is working to nominated as board members. Mr. Maddox and Ms. Sinatra Mr. Maddox’s annual base follow up on any unanswered 80% of shares against the move the casino giant from “a Compensation for several would be eligible to receive a salary is $2 million, the same questions in writing over the company’s compensation plan founder [led] company to a top executives at Wynn Re- portion of that money next as Chairman and CEO James following days and said the at an annual shareholders’ more traditional global enter- sorts this year reflected long- year if they meet certain per- Murren of MGM Resorts Inter- company would soon send an meeting last week, in a non- prise,” he said. “Compensation term stock grants that were formance targets; the stock national and below that of executive for a more extensive binding referendum known as practices will be a part of that awarded last year. Matt Mad- would fully vest in November Sheldon Adelson, chairman hearing. a“sayonpay”vote. evolution, and we look for- dox, who became the com- 2021. and CEO of Las Vegas Sands European Parliament Presi- A Wynn Resorts spokesman ward to the future support of pany’s chief executive officer A company spokesman pre- Please see WYNN page B2 Please see EU page B4 HEARD ON THE STREET | By Spencer Jakab INSIDE Media Pro to Lead Univision At Last, There Is an BY BENJAMIN MULLIN Univision Communications Alternative to Stocks Inc. has tapped media veteran Vincent Sadusky as chief exec- “What’s 2010 had seen the index utive, succeeding Randy Falco gonna make jump and go on to gain at the troubled Spanish-lan- you nearly 60% by the time of guage broadcaster, according bearish?” his May 14, 2013, encore. to people familiar with the Hedge- The phenomenon most INTEL PATCHES matter. fund responsible for the epic bull Mr. Sadusky, the former manager David Tepper market now in its 10th year ITSELF UP CEO of broadcaster Media posed this question one isn’t FOMO—fear of missing General Inc. and a longtime morning five years ago, out—but TINA—there is no AFTER ATTACKS executive at Univision rival helping cement his alternative. While there has Telemundo, is slated to start reputation as a market been plenty of debate about CYBERSECURITY, B4 as soon as June 1, one of the sage. The “taper tantrum” exactly how unorthodox people said.

was roiling equity markets monetary policies like A spokeswoman for Univi- PATRICK MCMULLAN world-wide, and futures quantitative easing helped sion declined to comment. Vincent Sadusky is very experienced in Spanish-language media. were lower, but the founder the economy, it is no Mr. Sadusky will join Univi- of Appaloosa Management mystery how they boosted sion at a tumultuous time for In the wake of the canceled ter said Mr. Falco had begun asserted in a CNBC stock prices. The lousy the company, which earlier IPO, Univision replaced its to lose favor with the board in interview that so much return on riskless assets this year announced it was chief financial officer and then recent months. Mr. Falco has money was being pumped such as Treasurys scrapping a planned initial announced that Mr. Falco had been at Univision since Janu- into the economy by central practically forced investors public offering that would informed the board that he ary 2011. banks globally that taking to pay up for riskier ones, have offered a long-desired planned to retire at the end of Mr. Sadusky brings years refuge in zero-yielding safe as Mr. Tepper so exit for the media firm’s pri- 2018, when he will turn 65. of experience in Spanish-lan- assets was silly. presciently asserted. RETAIL FIGHTS vate-equity owners. The March announcement guage media. He serves on The S&P 500 rallied to The three-month Shortly after, The Wall was a surprising move given the board of Hemisphere Me- close 17 points higher that Treasury bill, which has WEB WITH Street Journal reported that that Univision in November dia Group, a U.S. broadcast day and has had a total never offered a negative Univision’s board was prepar- had extended Mr. Falco’s em- and cable TV company aimed return of 85% since then. annual return based on data SHOP CRAWLS ing to search for new leader- ployment agreement for two at U.S. Hispanic and Latin An earlier “Tepper rally” since 1928, saw its yield ship and had hired a consult- additional years, through Jan- American markets. He previ- after a similar TV plunge from nearly 5% in PROPERTY REPORT, B6 ing firm to review the business uary 2020. At the time, some ously worked at Telemundo appearance in September Please see HEARD page B2 for significant cost cuts. people familiar with the mat- Please see CEO page B2 B2 | Wednesday, May 23, 2018 **** THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS & FINANCE

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

A G Nine West...... B1 Abraaj Group...... B12 General Electric...... B14 NXP SemiconductorsB14 Toll Brothers Hit as Margins Slip Advanced Micro Devices Genesis Global Trading O BY CHRIS KIRKHAM ...... B4 ...... B12 Omnicom Group...... B5 Alibaba Group...... B13 H Open Door Labs...... B6 Alphabet...... B4,B5 Shares of high-end home Harbour Energy...... B3 P Toll Brothers Amazon.com builder Inc. fell Hemisphere Media.....B1 Psy Group...... A4 ...... A1,A3,B1,B4 10% after the company re- Home Depot...... B14 Q ported lower-than-expected Appaloosa Management HSBC...... B5 ...... B1 Qualcomm...... B4,B14 profit margins for the three I months ended April 30. Apple...... B4 S Intel...... B4 There has been concern B J Saban Capital Group...B2 among investors that a rise in Bank of America Santos...... B3 mortgage rates since January J.C. Penney ...... B12,B13 Sea...... B13 could be a deterrent to the ...... A6,B1,B13,B14 Beijing Bytedance Sears Holdings...... B1 home-building industry. Aver- JPMorgan Chase...... B12 Technology...... B13 Silicon Valley Bank...B12 age rates for 30-year fixed K Best Buy...... A6 Silvergate Bank...... B12 mortgages last week rose to a bitFlyer...... B12 Kazatomprom...... B14 SoftBank Group...... B4 seven-year high of 4.61%, ac- Boeing...... B13 KeyCorp...... B13 Spotify Technology...B13 cording to mortgage giant Brookfield Asset KKR...... B13 T Freddie Mac. Management...... B6 Kohl's...... B14 But Toll Brothers executives Target...... B14 C Kushner...... B6 said on a conference call with L Telemundo Wall Street analysts Tuesday Cambridge Analytica..A4 Communications Group that the rise in rates hasn’t af- Cameco...... B14 Las Vegas Sands...... B1 ...... B1 fected the company’s business Caterpillar...... B13 Lennar...... B6 Tencent Holdings...... B13 so far, citing strong sales in Claire's Stores...... B1 LNR Partners...... B6 Texas Pacific Group....B2 lower-cost markets such as Coinbase Global...... B12 Lowe's...... B1,B13,B14 Toll Brothers...... B2

Boise, Idaho, where buyers LUKE SHARRETT/BLOOMBERG NEWS M Comerica...... B13 Total...... B13 might be more sensitive than A Toll Brothers home under construction last year. Toll faces higher costs for labor and lumber. ConocoPhillips...... B13 Macy's...... B1,B6,B14 TPG...... B12 higher-end customers to fluc- Credit Suisse...... B13 Madison Dearborn Twitter...... A6 tuations in interest rates. The dian lumber. Cross River Bank...... B12 Partners...... B2 U company focuses largely on Home Builder Stumbles Jack Micenko, a home- D Media General...... B1 Univision high-end homes with average Toll Brothers’ share price plunged Tuesday amid concerns about higher building analyst with Susque- Meritage Homes...... B6 D.E. Shaw...... B2 Communications...... B1 price tags double those of mortgage rates and lower profit margins. hanna Financial Group, said Metropolitan Bank Didi Chuxing Technology V other large builders, and exec- the disappointing gross profit Holding...... B12 utives said those buyers are Net profit 2Q 2018* Share price margin could mostly be attri- ...... B13 Valeant Pharmaceuticals MGM Resorts less susceptible to fluctuations $200 million $111.8 million $54 buted to one-time operational E International...... B1 International...... B3 in mortgage rates. issues. But he said the timing Micron Technology....B13 Vornado Realty Trust.B6 EIG Global Energy “Our clients have much wasn’t great, because of inves- Microsoft...... B4 W Partners...... B3 higher credit ratings. They put 150 50 tors’ concerns about how in- Motorola Solutions.....B4 F Wabtec...... B14 more money down,” said Chief terest rates could affect the N Facebook...... A6,B1,B4 Walmart...... B14 Executive Doug Yearley. “It’s Tuesday housing market more broadly. 100 46 Fidelity National NBCUniversal...... B2 Wells Fargo...... B12 generally easier for them to $39.46 “Most investors right now Information Services Neurala...... B4 WPP...... B5 get a mortgage because ▼10% are hypersensitive to rising ...... B5 Nexstar Media Group.B2 Wynn Resorts...... B1 they’re not tapped out when rates and the potential impact rates go up a little bit.” 50 42 on demand,” he said. “This is a Adjusted gross profit mar- tough quarter to have some INDEX TO PEOPLE gin for Toll Brothers was operational issues.” 22.5% for the second quarter 0 38 Overall, Mr. Micenko said FY 2016 ’17 ’18 Jan. Feb. March MayApril A I Potter, Betsy...... B6 ended in April, below the com- he is still seeing strong home- pany’s previous guidance and buying demand. Demand is re- Arreaza, Alejandro....B13 Ishii, Curtis...... B12 R *Ended April 30 down from 24.3% in the same Sources: S&P Capital IQ (income); FactSet (shares) THE WALL STREET JOURNAL. lated more to the economy, Asubonten, Charles..B12 J Richey, Tyler...... B14 B quarter last year. The com- rising equity in one’s current Johnson, Ron...... B2 Ross, Amy...... B6 pany said profit margins for sell condominium inventory affected by higher costs for la- home, or life events such as a Berman, Geoffrey S....B3 Jong Kim Un...... B13 S the quarter were down be- in New York City to generate bor and materials, particularly new marriage or the birth of a Bezos, Jeff...... A6,B4 K Sadusky, Vincent...... B1 cause of some specific opera- cash for other priorities. lumber, which has risen to re- child, he said. “I think there’s Bozievich, Elizabeth...B6 Kocher, Paul...... B4 Saunders, Neil...... B1 tional issues: delays on some Shares in Toll Brothers cords in 2018 after the Trump very few people who buy a Burke, Peggy...... B6 Kocubinski, Peter...... B14 Sinatra, Kim...... B1 particularly profitable homes closed at $39.46 on Tuesday. administration’s decision last house solely based on where C M T in California, and a push to The company has also been year to place tariffs on Cana- mortgage rates are,” he said. Cutts, Leanne...... B5 Maddox, Matt...... B1 Tanner, Gary...... B3 D Malek, Christyan...... B13 Taylor, Laura...... B6 Davenport, Andrew....B3 McCabe, Chris...... A6 Tepper, David...... B1 director Ron Tysoe chairman, Niblock, would retire after 13 Ellison spent a dozen years at Desrochers, Real...... B12 McGuire, Brendan...... B3 Thomson, James...... A6 LOWE’S replacing Mr. Ellison. years in the top role. That an- Home Depot. He rose through E Meir, Edward...... B14 Tysoe, Ron...... B2 Mr. Ellison joined Penney nouncement came one week the ranks, ending up in the job Mulvee, Suzanne...... B6 V when it was in crisis following after three new directors of executive vice president in Ellison, Marvin N Continuedfromthepriorpage former CEO Ron Johnson’s joined the company’s board charge of the do-it-yourself ...... B1,B13,B14 Verhofstadt, Guy...... B4 ing Mr. Ellison’s tenure the failed experiment to revamp following criticisms from ac- chain’s roughly 2,000 U.S. F Naqvi, Arif...... B12 W D.E. Shaw Niblock, Robert...... B2 company strengthened its bal- the 116-year-old chain. While tivist investor &Co. stores. He was the first Afri- Falco, Randy...... B1 Weber, Manfred...... B4 O ance sheet by retiring $1.4 bil- Mr. Ellison stabilized sales, the that Lowe’s had underper- can-American to join its senior Fritsch, Carsten...... B13 Wynn, Steve...... B1 lion in debt. company remains challenged. formed Home Depot in recent ranks and left for Penney after Fyfe, David...... B13 Oh, Aaron...... B13 Z Mr. Ellison, 53 years old, is It is carrying a hefty debt load years. missing out on the top job at G P Zamel, Joel...... A4 jumping to a much bigger com- and is unprofitable. It lost $78 Lowe’s was set to release its Home Depot. Gruenberg, Martin....B12 Parno, Bryan...... B4 Zuckerberg, Mark...... B1 pany. Lowe’s takes in more million in the most recent first-quarter results Wednes- Mr. Ellison is expected to than five times as much reve- quarter, compared with a $187 day morning. In February, the draw on his Home Depot play- nue as Penney, and its market million loss a year earlier. Mooresville, N.C.-based chain book to improve Lowe’s cus- capitalization of roughly $73 Penney’s same-store sales reported falling sales and tomer service, online presence WYNN billion compares with less than for the three months to May 5 lower-than-expected earnings and professional business, said $1 billion for the department- rose a scant 0.2%, short of the for its fiscal fourth quarter. people familiar with the mat- store chain. company’s expectations and The retailer agreed to pay ter. Continuedfromthepriorpage Penney, which is based in strong results from rivals such Mr. Ellison a base salary of At Home Depot, for example, Corp., whose base salary was Plano, Texas, said Tuesday it as Macy’s. $1.45 million and a target bo- Mr. Ellison had sales associates $5 million last year. was launching a search for a Some analysts had become nus of $2.9 million He will also wear bright orange vests to Outside proxy advisory new CEO. It created an office disillusioned with Mr. Ellison’s receive a signing bonus of make it easy for shoppers to firms Institutional Share- of the chairman consisting of plan for turning around Pen- about $6 million in stock differentiate them from em- holder Services and Glass, the chief financial officer, the ney, noting he was shifting into grants and options that will ployees doing other tasks and Lewis & Co. had both recom- chief information officer and lower margin categories like potentially pay out over the decided employees shouldn’t mended that shareholders other executives who will appliances without fixing the next three years. Mr. Ellison stock shelves during the busi- vote against the company’s manage the day-to-day re- core apparel business. earned the same base salary at est hours, the people said. compensation plan. Among sponsibilities until a successor Lowe’s said in March that Penney. —Cara Lombardo other things, the firms noted is found. Its board elected lead its current CEO, Robert Before joining Penney, Mr. contributed to this article.

that the long-term stock DAVID BECKER/GETTY IMAGES FOR WYNN LAS VEGAS grants to Mr. Maddox were Kim Sinatra executive vice unusually large and didn’t president, received 100,000 Tuesday With the cashlike clearly lay out performance shares valued at $9.6 million. 1.9307% HEARD instruments now yielding goals. 1.93%, their highest since This year’s proxy filing long pattern of sexual miscon- the collapse of Lehman also showed a high disparity duct by Mr. Wynn. The Journal Continuedfromthepriorpage Brothers, worrywarts can in pay between the company’s also reported that he paid $7.5 1.5% early 2007 to zero by early once again earn at least a median employee ($44,437) million to a manicurist at his Cash No Longer Trash 2009. As it stayed there, the bit of money on the compared with the compensa- Wynn Las Vegas resort who in Three-month Treasury yield S&P 500’s annualized return sidelines. tion for former CEO Mr. 2005 told people Mr. Wynn between 2009 and 2017 was Mr. Tepper noted in Wynn ($34.5 million), a ratio had forced her to have sex a whopping 15.2 percentage January that he believed of 1 to 777. In a report re- with him. 1.0 points higher than that of bond prices remain key to leased earlier this year, com- Mr. Wynn has said it is the bill. stock values and that, at pensation-data analysis firm “preposterous” that he would It isn’t unusual for stocks that point, stocks looked Equilar Inc. found in a survey assault a woman. In response to do better—they have “cheap.” But yields have of more than 350 companies to previous articles, a lawyer trounced Treasurys in the risen since then, while that the median employee-to- for Mr. Wynn has sent a state- 0.5 long run—but the gap in stock prices are at the same CEO ratio for midsize firms ment on his behalf saying he performance during the level. such as Wynn Resorts, with “declined to participate in The preceding 80 years had been Mr. Tepper seems to be market capitalization between Wall Street Journal’s reporting a far more modest 7.3 diversifying, putting $2.3 $3 billion and $25 billion, because it is clear that the percentage points. billion of his own money was1to138. Journal has no intention of 0 In other words, the into an entirely different A Wynn Resorts spokesman treating him fairly.” In late 2008 ’10 ’15 ’18 opportunity cost of sitting asset: the Carolina said the company expected April, the lawyer added that on your hands was less than Panthers. Could it be third the ratio would be signifi- “Mr. Wynn has not engaged in Source: FactSet THE WALL STREET JOURNAL. half as much. and long for stocks? any nonconsensual sexual rela- tions with any of the women Proxy advisory firms upon whom the Journal has to highlight its broad portfo- uity owners, including Saban relied on its reporting.” CEO lio, which includes the UniMás Capital Group, Madison recommended voting After the Journal published broadcast network, dozens of Dearborn Partners and 1in6 against the company’s its first article on sexual-mis- television and radio stations, a Texas Pacific Group, more children conduct allegations involving Continuedfromthepriorpage slate of cable networks such than a decade ago in a $13.7 face hunger. compensation plan. Mr. Wynn and female employ- for a decade, including as as Galavisión and a digital billion leveraged buyout that ees on Jan. 26, Wynn Resorts’ chief financial officer from business. saddled the company with stock price fell by more than 1999 to 2004. Mr. Falco has expanded Fu- billions in debt just before 18% over the next two trading Univision is grappling with sion Media Group, which now the financial crisis. The com- cantly lower in the future, days, wiping out nearly $3 bil- rising content costs and an includes Gizmodo Media pany has so far been unable since Mr. Wynn no longer lion in market value. industrywide shift in the tele- Group, composed of the Root to engineer an exit for those works for the company. A law- The company’s stock price vision landscape, with more and most of the websites for- backers and still has $7.9 bil- yer for Mr. Wynn didn’t re- has since rebounded, following pay-TV subscribers cutting merly owned by Gawker Me- lion in debt on its books as of spond to requests for com- a series of moves the company the cord in favor of streaming dia; a stake in the Onion; and March 31. ment Tuesday made to settle outstanding lit- services, a trend that has low- the cable channel Fusion. Mr. Sadusky has overseen Mr. Wynn resigned from his igation involving Mr. Wynn, al- ered TV ratings and reduced Univision is still undergoing the sale of a company before. roles as the company’s chair- lowing him to sell his stake. the value of television compa- a broader business review that While at Media General, he man and CEO in February and At last week’s annual meet- nies. Meanwhile, NBCUniver- people familiar with the mat- helped steer the company’s sal Nexstar Media Group sold off his entire 12% stake ing, shareholders barely men- ’s Telemundo has been nip- ter have said could result in sale to Join us at for $2.1 billion in March. The tioned Mr. Wynn during a ping at Univision’s heels, cost cuts in the range of $200 Inc. for $2.13 billion in 2016. FeedingAmerica.org moves came after a January question-and-answer session largely because of Univision’s million, including significant Bloomberg News first re- article detailed allegations of and focused instead on the ratings declines in recent layoffs. ported the appointment. behavior that cumulatively company’s plans in Macau and years. Univision was taken pri- —Sarah Rabil would amount to a decades- Las Vegas. Instead, Univision has tried vate by a group of private-eq- contributed to this article. THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | B3 BUSINESS NEWS Ex-Valeant Executive Convicted In Scheme

BY REBECCA DAVIS O’BRIEN

A Manhattan federal jury found a former executive at Valeant Pharmaceuticals Inter- national Inc. guilty of charges that he defrauded the pharma- ceutical giant through a multi- million-dollar kickback scheme. The former Valeant execu- tive, Gary Tanner, and his co- defendant, Andrew Daven- port—the former chief executive of Philidor Rx Ser- vices, a specialty mail-order pharmacy involved in the scheme—were both convicted Tuesday on all four criminal counts they faced, including honest services wire fraud and money-laundering conspiracy. “We are of course disap- pointed in the verdict, but we look forward to addressing the many legal and evidentiary is- sues on appeal,” said Brendan McGuire, a lawyer for Mr. Tan- ner. A lawyer for Mr. Davenport didn’t immediately respond to a request for comment.

“As a unanimous jury has BRENDON THORNE/BLOOMBERG NEWS found, Gary Tanner sold his A Santos well in Australia last year. The oil-and-gas company rejected Harbour Energy’s $10 billion takeover offer as undervalued amid the recent recovery in prices. loyalty to Andrew Davenport for $9.7 million,” Manhattan U.S. Attorney Geoffrey S. Ber- man said in a statement. “Un- Australian Oil Giant Snubs U.S. Bid beknownst to his employer, Tanner became the fox guard- ing the henhouse.” BY MIKE CHERNEY Santos, and was contingent sent a full value of the com- ingness by their board to ex- equity firms are showing fresh The trial is the first criminal on the Australian company pany and, when combined plore means of closing the interest in energy as global oil prosecution to emerge from Santos Ltd. of Australia hedging some of its future oil with the associated risks, is gap between the offer and prices recover. multiple investigations into rejected a more than US$10 output. not in the best interests of their expectations,” Harbour In rejecting the proposal, Valeant’s sales practices. Some billion acquisition offer by Santos, one of the largest Santos shareholders,” Santos said. Santos said it believed the of- of the investigations are con- Harbour Energy Ltd. on independent oil-and-gas com- said. But Harbour said it was still fer was too low given the re- tinuing. Valeant has said it is Tuesday, calling the offer un- panies in the Asia-Pacific re- Harbour said late Tuesday willing to negotiate a deal cent increase in oil prices and cooperating with the various dervalued given recent oil- gion, has now ended talks with it is disappointed with the de- with the Santos board, if it re- rally in energy-company investigations, including the price gains. Harbour. It said the latest of- cision given that the deal considered its decision. shares. It also balked at taking one in Manhattan. The rejection comes after fer represented a 4.6% in- would have offered a “compel- A deal for Santos would on foreign-exchange risk for Several current and former private-equity-backed Har- crease from the original non- ling premium” for Santos. have given Harbour stakes in its roughly 120,000 mom-and- Valeant executives testified at bour—set up by EIG Global binding proposal of US$4.98 a “There was insufficient en- two liquefied-natural-gas pop shareholders. the nearly three-week-long Energy Partners in 2014 to share, made in April. Since gagement with Santos on val- plants in Australia and an- Santos also said the pri- trial of Messrs. Tanner and hunt for oil and natural-gas then, Brent oil prices have uation, no meaningful attempt other in Papua New Guinea. vate-equity structure of the Davenport. “We believe the assets outside the U.S.— risen 14% and share prices of by Santos to discuss a realis- The shopping spree by Har- deal was too complex, and jury’s verdict reflects the facts raised its offer twice in recent other Australia-listed energy tic price which could be sup- bour, which last year that executing its existing of the case,” a spokeswoman days to woo Santos. The lat- peers have risen 18% on aver- ported by any reasonable set bought energy assets in the strategy would unlock more for Valeant said in an emailed est proposal, made Monday, age, Santos said. of technical and commercial North Sea from Royal Dutch value for its shareholders than statement. offered US$5.21 a share for The offer “does not repre- assumptions, and an unwill- Shell PLC, comes as private- selling to Harbour. B4 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech Amazon’s Tool for Facial Recognition Fans Privacy Fears

BY JAY GREENE company said in a statement. Other technology compa- Amazon.com Inc. found it- nies also work with U.S. police self thrust into the contentious departments to apply facial- issue of government surveil- recognition technology to lance on Tuesday after dozens video surveillance and body of civil-rights organizations cameras footage. Motorola So- called on the tech giant to stop lutions Inc., for example, is selling its facial-recognition working with the artificial-in- technology to law-enforcement telligence startup Neurala Inc. organizations. to make body cameras that The retail giant has been learn to identify a suspect or a selling the technology as a missing child and spot them in means to help authorities crowds. identify suspects in surveil- Amazon introduced Rekog- lance footage, according to nition in 2016 as part of its documents the American Civil Amazon Web Services cloud Liberties Union obtained from business. The technology is es- police departments through sentially a matching algorithm, public-records requests. where customers can teach the

HECTOR GUERRERO/BLOOMBERG NEWS The uproar comes amid in- service to pick out individuals An Intel design center in Guadalajara, Mexico. There are no known reports of criminals using the vulnerabilities to steal data. creasing concerns world-wide by tagging images stored on about the extensive reach of its servers. Its facial-recogni- powerful tech companies, the tion technology can then scan massive quantities of informa- other photos and videos to de- Chip Flaws Hound Intel tion they collect and analyze tect specific people. and the potential for abuse of people’s privacy and data. More patches needed Microsoft Corp., Alphabet Francisco this week, there There are no known reports The ACLU and other civil- Civil-rights groups Inc.’s Google and others, is a were nearly 30% more papers of Spectre and Meltdown at- rights organizations sent a let- for Spectre and new variant on Spectre. submitted covering computer tacks being used by criminals, ter to Amazon Chief Executive sent CEO Jeff Bezos Meltdown until new Advanced Micro Devices hardware security than last but security researchers are Jeff Bezos expressing “pro- a letter citing the Inc., Qualcomm Inc. and ARM, year, said Bryan Parno, a Carn- worried they can be used to found concerns” about the po- processors come out owned by SoftBank Group egie Mellon University profes- steal data such as passwords tential misuse of the technol- potential for misuse. Corp., said their products also sor and one of the conference’s from cloud-computing servers ogy, which Amazon calls BY ROBERT MCMILLAN are affected. organizers. or desktop PCs surfing the in- Rekognition. Security researchers say The Spectre and Meltdown ternet. “We demand that Amazon Intel Corp. plans to release this latest bug, a twist of the discoveries “will likely draw Intel has addressed Spectre stop powering a government The accuracy of facial rec- patches for a new vulnerability Spectre flaw called Variant 4, additional interest to the area” and Meltdown with software surveillance infrastructure ognition generally depends on affecting its chips, the second is complex, making it less of a of hardware hacking, he said. updates, but the company ex- that poses a grave threat to the quality of the images and time this year it has addressed threat since it is more difficult An Intel spokesman declined pects to fix these bugs at the customers and communities video uploaded and tagged, flaws known as Spectre and for hackers to exploit than the to comment on whether the chip level in new processors across the country,” the and the technology gets better Meltdown. The fix is unlikely Meltdown bug. But it won’t be company was expecting to released later this year. Intel groups wrote in the letter. as it collects more data. to be the last. the last such discovery, they patch more hardware flaws in doesn’t expect the problem to Amazon didn’t directly Facial recognition has long Inspired by the January dis- say. the future. In a Monday blog have a material impact on its comment on law enforcement’s been developed by tech com- closure of the bugs, security “There are going to be lots post, Intel wrote: “We know finances. use of Rekognition, saying the panies, including Facebook researchers are digging into more vulnerabilities found over that new categories of security While there are more bugs company requires customers Inc., Alphabet Inc.’s Google, chip attacks and uncovering the next five years; no question exploits often follow a predict- likely to come, not every dis- to “comply with the law and be Apple Inc. and Microsoft even more flaws, said Paul Ko- about it,” Mr. Kocher said. able life cycle, which can in- covery will be on par with responsible” when they use its Corp., as part of their social cher, an independent cryptog- Research into hardware at- clude new derivatives of the Meltdown and Spectre, said services. It cited positive uses media, photo storage or other raphy expert who with others tacks has heated up in recent original exploit.” Ryan Permeh, a former Intel of the technology, such as services. discovered Spectre. years and was given a further While Spectre and Melt- security architect who is now helping amusement parks find Civil-rights advocates are Spectre and Meltdown sent boost from the publicity gener- down affect most of the chief scientist with security lost children. worried about growing state the world’s chip makers scram- ated by Spectre and Meltdown. world’s chips, they have been a vendor Cylance Inc. “Our quality of life would be surveillance. China, for exam- bling to fix design flaws long At the annual security and particular problem for Intel, “These things happen every much worse today if we out- ple, has expanded the use of present in most of the world’s privacy conference for the In- which commands 95% of the three-to-five years,” he said. lawed new technology because facial recognition, recently processors. The latest discov- stitute of Electrical and Elec- market for server and per- —Ted Greenwald some people could choose to capturing three suspects who ery, disclosed Monday by Intel, tronics Engineers, held in San sonal-computer processors. contributed to this article. abuse the technology,” the were attending concerts. JOHN THYS/AGENCE FRANCE-PRESSE/GETTY IMAGES Facebook CEO Mark Zuckerberg, as he arrived at the European Parliament in Brussels on Tuesday.

ment to Europe, announcing by authorities and regulators We’re saying “yes” EU that it would hire an addi- around the world, who are in- tional 3,000 employees in the creasingly looking to Europe for region to reach a total of direction on how to rein in the to the future ContinuedfrompageB1 10,000 by the end of the year. Silicon Valley firms over their dent Antonio Tajani said the Seated around a hoop- privacy policies, market power, format was his idea. shaped table in an intimate tax payments and other issues. Other members were dis- wood-paneled room in the Eu- The GDPR, the EU’s new pri- of energy. satisfied with the substance of ropean Parliament, roughly a vacy law, is one such piece of Mr. Zuckerberg’s responses. dozen European lawmakers in- legislation. Mr. Zuckerberg said Speaking to reporters after the dividually interrogated the the company would be compli- hearing, German leftist Gabri- chief executive. ant with the new rules by Fri- Tomorrow’s next big thing is out there, an idea waiting ele Zimmer called them “very Manfred Weber, the leader day, adding that a large portion general answers.” Jan Philipp of the largest group in the Eu- of European users already re- to be brought to life. We strive to be a partner who Albrecht, the German member ropean Parliament, the Euro- viewed and consented to the of Parliament from the Green pean People’s Party, said more new privacy policies designed to paves the way for you to reach whatever dreams, Party who led the GDPR nego- regulation for the company meet the demands of the new tiations, told reporters: “I am was needed and raised the is- law. goals, or “impossible” things you want to achieve. shocked that Zuckerberg sue of Facebook’s market dom- Brussels is the first stop for didn’t take this seriously at inance. “We should discuss Mr. Zuckerberg as he seeks to That’s why we innovate, expand, invest, research, and all.” breaking up the Facebook mo- calm tensions with European of- In response to questions nopoly. Can you convince me ficials. On Wednesday, Mr. Zuck- build solutions across 50 states and the full energy about the Cambridge Analytica not to do so?” erberg will travel to Paris, where scandal, Mr. Zuckerberg said Liberal member Guy Ver- he will attend a government-or- Facebook has more tightly re- hofstadt also dug into the ganized lunch with executives spectrum. We’re designing solutions that remove the stricted the data that outside question of the company’s from Uber Technologies Inc., apps can access and has sus- market power, stressing that Microsoft Corp. and other firms limits in your path. We’re building the future of energy. pended 200 apps it suspects of self-regulation wouldn’t be about using technology to pro- having misused user data enough to control the com- mote the common good. shared on or through Face- pany. “We have a big problem EU and European national book. He said the company is here,” he said, asking Mr. regulators for years have been reviewing thousands more Zuckerberg to decide whether among the most active world- apps and expects more to be he wants to be remembered wide in trying to bridle Face- removed. “in fact as a genius who cre- book. A working group of sev- He also said Facebook is ated a digital monster that is eral EU data-protection working to more broadly pro- destroying our democracies watchdogs brought sanctions tect the integrity of elections, and our societies.” against the company for prior including by encouraging vot- In response, Mr. Zuckerberg changes to its privacy policies, ers to go to the polls and by said the company “exists in a though some of those decisions working with governments to very competitive space, where were thrown out in court. Some identify misinformation people use a lot of different EU regulators are also investi- threats in real time. The issue tools for communication” add- gating the company’s use of is of interest to Parliament ing that advertisers have “a lot data about users of chat app southerncompany.com/imagine members, who face elections of choice” in terms of where WhatsApp, which it bought in next spring. they choose to advertise. 2014 for $22 billion. Mr. Zuckerberg also The hearing comes amid —Deepa Seetharaman stressed Facebook’s commit- greater scrutiny of tech giants contributed to this article. THE WALL STREET JOURNAL. Wednesday, May 23, 2018 | B5 BUSINESS NEWS

This announcement is neither an offer to purchase nor a solicitation of an offertosell Shares (as defined below). The Offer (as defined below) is made onlybythe Offer to Purchase, dated May 23, 2018, and the related Letter of Transmittal and any amendments or supplements thereto, and is being made to all holders of Shares. The Offer is not being made to (nor will tenders be accepted from or on behalf of ) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, “bluesky” or other laws of such jurisdiction. In jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offereemed shallbed to be made Alphabet, Facebook on behalf of Purchaser (as defined below) by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designatedrchaser. byPu Notice of Offer to Purchase Pulled Down Pay All Outstanding Shares of Common Stock of For Software CEOs ARMO Biosciences, Inc. BY THEO FRANCIS at High Earners The highest-paid software Highest-paid software and $50.00 Per Share, Net in Cash executive of 2017? That was services CEOs in 2017 by Gary Norcross, chief executive of Fidelity National Informa- SHARE- TOTAL HOLDER PAY Bluegill Acquisition Corporation, tion Services Inc., at $29.1 CEO/COMPANY RETURN In millions million. awholly-ownedsubsidiaryof Fidelity National, also Gary Norcross Fidelity National 26% $29.1 known as FIS, is a bank-tech- nology provider. Mr. Norcross Robert Kotick Eli Lilly and Company has led the Jacksonville, Fla.- Activision Blizzard 76 28.7 based company since January Shantanu Narayen Bluegill Acquisition Corporation, a Delaware corporation (“Purchaser”) and wholly-owned subsidiary of Eli Lilly and Company, an Indiana 2015. His total compensation Adobe Systems 80 21.9 corporation (“Lilly”), is offering to purchase all of the outstanding shares of common stock, par value $0.0001 per share(the“Shares”), of ARMO increased 46% from $20 mil- Pierre Nanterme BioSciences, Inc., a Delaware corporation (“ARMO”), at a purchase price of $50.00 per Share (the “Offer Price”), net to the seller in cash, without lion the previous year, accord- Accenture 16 19.8 interest and less any applicable tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated May 23, 2018, ing to regulatory filings. The Daniel Schulman and in the related Letter of Transmittal (which, together with the Offer to Purchase, as they may be amended or supplemented from time totime, company’s total shareholder PayPal 87 19.2 collectively constitute the “Offer”). Stockholders of record who tender directly to Computershare Trust Company, N.A. (the “Depositary”) will not be return, which reflects share- Ajay Banga obligated to pay brokerage fees or commissions or, except as may be set forth in the Letter of Transmittal, transfer taxes on the purchase of Shares price appreciation and divi- Mastercard 48 18.7 by Purchaser pursuant to the Offer. Stockholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult such institution as to whether it charges any service fees or commissions. dends, was 26% last year. Virginia Rometty A spokeswoman said $11.1 IBM -4 18.6 THE OFFER AND THE WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE PAST 11:59 P.M. million of Mr. Norcross’s pay Devin Wenig last year included a special bo- eBay 27 17.7 EASTERN TIME, ON JUNE 21, 2018, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED. nus for integrating SunGard, Brad Smith The Offer is being made pursuant to an Agreement and Plan of Merger, dated May 9, 2018 (as it may be amended from timetotime,the“Merger which FIS acquired in late Intuit 25 16.4 2015. She said most of his pay Agreement”), by and among ARMO, Lilly and Purchaser.The Merger Agreement provides, among other things, that, following the consummation of Francisco D'Souza is tied closely to performance the Offer and subject to certain conditions, Purchaser will be merged with and into ARMO pursuant to Section 251(h) of the GeneralCorporation Cognizant 28 12.5 Law of the State of Delaware, as amended (the “DGCL”), with ARMO continuing as the surviving corporation and becoming a wholly-owned and aligned with shareholder subsidiary of Lilly (the “Merger”). In the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the interests. Note: Industry groups defined by Standard & “Effective Time”) (other than (i) Shares owned by ARMO immediately prior to the Effective Time, (ii) Shares owned by Lilly or Purchaser at The median pay figure for Poor's. Shareholder return reflects 1-year total shareholder return through the the commencement of the Offer and owned by Lilly or Purchaser immediately prior to the Effective Time or (iii) Shares held by any stockholder the software and services in- month-end closest to each company's who is entitled to demand and properly demands appraisal of such Shares pursuant to, and who complies in all respects with, Section 262 of the dustry, which included 24 full- fiscal-year end. DGCL and who, as of the Effective Time, has neither effectively withdrawn nor lost its rights to such appraisal and payment undertheDGCL year CEOs as of April 30, was Source: MyLogIQ LLC (pay); ISS Analytics with respect to such Shares) will be converted into the right to receive an amount in cash equal to the Offer Price without interest, less any applicable $10.7 million, below the overall tax withholding. median of $12.1 million for most of which consisted of The Offer is not subject to a financing condition.The obligation of Purchaser to accept for payment and pay for Shares validly tendered(andnot full-year CEOs at all S&P 500 personal and home-security properly withdrawn) pursuant to the Offer is subject to the satisfaction of the conditions set forth in Section 15 of the Offer to Purchase, (collectively companies, according to a Wall services. As defined by Stan- the “Offer Conditions), including the Minimum Tender Condition (as defined below) and the Antitrust Condition (as defined below). Street Journal analysis of dard & Poor’s, the industry The term “Expiration Date”means June 21, 2018, unless the expiration ofthe Offer is extended to a subsequent date in accordance with theterms proxy filings by S&P 500 firms. group includes the CEOs of of the Merger Agreement, in which event the term “Expiration Date” means such subsequent date. Median total return for soft- such traditional software firms The Board of Directors of ARMO has unanimously: (i) determined that the Offer, the Merger and the transactions contemplated thereby ware companies was 33%, as Adobe Systems Inc. and In- (collectively, the “Transactions”) are fair to and in the best interests of ARMO and its stockholders; (ii) duly authorized and approved the execution, compared with about 19% tuit Inc., as well as cloud-com- delivery and performance by ARMO of the Merger Agreement and the consummation by ARMO of the Transactions; (iii) declared the Merger overall. puting and social-networking Agreement and the Transactions advisable; (iv) recommended that ARMO’s stockholders tender their Shares in the Offer; and (v) resolved that the Low-paid founders helped giants like Alphabet and Face- Merger shall be governed by and effected under Section 251(h) of the DGCL. bring the median pay down. book. It also includes firms The Merger Agreement contains provisions that govern the circumstances under which Purchaser is required or permitted to extend theOffer Larry Page, CEO of Google par- like Fidelity National, money- and under which Lilly is required to cause Purchaser to extend the Offer. Specifically,the Merger Agreement provides that: (i) if any Offer Condition ent Alphabet Inc., made just order giant Western Union Co. (as set forth in Section 15 of the Offer to Purchase) other than the Minimum Tender Condition has not been satisfied or waived, Purchaser shall, $1. Facebook Inc. founder Mark and credit-card giants Visa Inc. and Lilly shall cause Purchaser to, extend the Offer for one or more consecutive increments of not more than ten business days each (or suchlonger Zuckerberg made $8.9 million, and Mastercard Inc. period as Lilly and ARMO may agree), until such time as such conditions have been satisfied or waived; (ii) Purchaser shall, and Lilly shall cause Purchaser to, extend the Offer for the minimum period required by any rule, regulation, interpretation or position of the Securities andExchange Commission or its staff thereof or The Nasdaq Stock Market applicable to the Offer; and (iii) if each Offer Condition (other thantheMinimum Tender Condition) shall have been satisfied or waived, and the Minimum Tender Condition shall not have been satisfied, Purchaser may(andifso requested by ARMO, Purchaser shall, and Lilly shall cause Purchaser to), extend the Offer for one or more consecutive increments of not more than ten business days each (or for such longer period as may be agreed between ARMO and Lilly); provided that ARMO shall not request Purchaser to, and Lilly shall not be required to cause Purchaser to, extend the Offer on more than three occasions. In each case, Purchaser shall not, andisnot required to extend the Offer beyond the Outside Date, without ARMO’s consent. The“Outside Date” means November 9, 2018. The “Minimum Tender Condition” means that there shall have been validly tendered (and not validly withdrawn) prior to the expiration of the Offer that number of Shares that, when added to the Shares then owned by Lilly or Purchaser, would represent a majority of Shares outstandingas of immediately following the consummation of the Offer. The “Antitrust Condition” means that any applicable waiting period (or any extension thereof ) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the anti-competition laws of Germany and Austria, shall have expired or otherwise been terminated. If the Offer is consummated, Purchaser will not seek the approval of ARMO’s remaining stockholders before effecting the Merger.Lilly, Purchaser and ARMO have elected to have the Merger Agreement and the transactions contemplated thereby governed by Section 251(h) of the DGCL and agreed that the Merger will be effected as soon as practicable following the consummation of the Offer. Under Section 251(h)ofthe DGCL, the consummation of the Merger does not require a vote or action by written consent of ARMO’s stockholders. Purchaser expressly reserves the right to waive, in its sole discretion, in whole or in part, any Offer Condition or modify the terms of the Offer, except that ARMO’s prior written approval is required for Purchaser to, and for Lilly to permit Purchaser to: (i) reduce the number of Shares subject to the Offer; (ii) reduce the Offer Price; (iii) waive, amend or modify the Minimum Tender Condition or the Termination Condition (asdefined below); (iv) add to the Offer Conditions or impose any other conditions on the Offer or amend, modify or supplement any Offer Condition inany manner adverse to the holders of Shares; (v) except as otherwise provided in the Merger Agreement, terminate, extend or otherwise amend or modify the Expiration Date of the Offer; (vi) change the form or terms of consideration payable in the Offer; (vii) otherwise amend, modify orsupplement any of the terms of the Offer in any manner adverse to holders of Shares; or (viii) provide for any “subsequent offering period” inaccordancewith Rule 14d-11 of the Exchange Act. Purchaser and Lilly may not waive the Minimum Tender Condition or the Termination Condition. The “Termination Condition” means that the Merger Agreement shall have been terminated in accordance with its terms. ALBIN LOHR-JONES/PRESS POOL Larry Page, CEO of Google parent Alphabet, made $1 in 2017. Any extension, delay, termination or amendment of the Offer will be followed as promptly as practicable by a public announcement thereof,and such announcement in the case of an extension will be made no later than 9:00 a.m., Eastern time, on the business day after the previously scheduled Expiration Date. For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered andnot Ad Giant WPP Loses properly withdrawn as, if and when it gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to theOfferwillbemade by deposit of the Offer Price for such Shares with the Depositary, which will act as agent for tendering stockholders for the purpose ofreceiving HSBC Account to Rival payments from Lilly and Purchaser and transmitting such payments to tendering stockholders. Under no circumstances will Lilly or Purchaser pay interest on the Offer Price, regardless of any extension of the Offer or any delay in making such payment. BY ALEXANDRA BRUELL Mindshare’s services for In all cases, Purchaser will pay for Shares validly tendered and accepted for payment pursuant to the Offer only after timely receipt by the American Express Co. are also Depositary of (i) the certificates evidencing such Shares (the “Share Certificates”) or timely confirmation of a book-entry transfer ofsuchShares into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth in Section 3 of the Offer to Purchase, An Omnicom Group Inc. up for review. (ii) the Letter of Transmittal, properly completed and duly executed, with all required signature guarantees and (iii) any other documents required by agency has captured the global WPP has had a particularly the Letter of Transmittal or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal and such other documents. media-buying account for tough time over the past couple Shares tendered pursuant to the Offer may be withdrawn at any time prior to the Expiration Date.Thereafter, tenders are irrevocable, exceptthat HSBC Holdings PLC, dealing of years and is forecasting no if we have not accepted your Shares for payment within 60 days of commencement of the Offer, you may withdraw them at any time after July22, another blow to advertising ri- revenue growth this year. Ac- 2018, the 60th day after commencement of the Offer, until Purchaser accepts your Shares for payment. val WPP PLC. count losses exacerbate those For a withdrawal of Shares to be effective, the Depositary must timely receive a written or facsimile transmission notice of withdrawal atone The account has billings of struggles and spook investors of its addresses set forth on the back cover of the Offer to Purchase. Any notice of withdrawal must specify the name of the person who tendered about $400 million and yields already growing skeptical of the Shares to be withdrawn, the number of Shares to be withdrawn and the names in which the Share Certificates are registered, if different from an estimated $20 million in an- the ad holding company and its that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an “eligible institution,” unless nual revenue for WPP, accord- model—and Mr. Sorrell’s sud- such Shares have been tendered for the account of an “eligible institution.” If Shares have been tendered pursuant to the procedures for book-entry ing to a person close to the re- den departure doesn’t help. transfer as set forth in Section 3 of the Offer to Purchase, any notice of withdrawal must specify the name and number of the account at DTC to be view. WPP is currently conducting a credited with the withdrawn Shares. If Share Certificates representing the Shares to be withdrawn have been delivered or otherwise identified tothe WPP, the world’s largest ad search for his replacement. Depositary, then, prior to the physical release of such Share Certificates, the name of the registered owners and the serial numbers shown onsuch holding company, with annual WPP shares, which rose Share Certificates must also be furnished to the Depositary. revenue of $19.7 billion, has slightly to $91.42 on Tuesday, Withdrawals of tenders of Shares may not be rescinded and any Shares properly withdrawn will be deemed not validly tendered for purposes also been enduring a review of are off 17% from the start of of the Offer. Withdrawn Shares may, however, be retendered by following one of the procedures for tendering Shares described in Section 3ofthe its Ford Motor Co. account, one last year. Offer to Purchase at any time prior to the scheduled expiration of theOffer. of its largest. Just last month, Mr. Sorrell built WPP into an The information required to be disclosed by paragraph (d)(1) of Rule14d-6 of the General Rules and Regulations under the Securities Exchange WPP announced the abrupt exit ad-services giant through an Act of 1934, as amended, is contained in the Offer to Purchase and is incorporated herein by reference. of Chief Executive Martin Sor- aggressive acquisition strategy. ARMO has provided Purchaser with ARMO’s stockholder list and security position listings for the purpose of disseminating the Offer to rell after an allegation of per- For years, the agencies enjoyed Purchase, the related Letter of Transmittal and related documents to holders of Shares.The Offer to Purchase and related Letter of Transmittal will sonal misconduct. longtime relationships with cli- be mailed to record holders of Shares whose names appear on ARMO’s stockholder list and will be furnished for subsequent transmittal to beneficial A review of the HSBC ac- ents. But more recently adver- owners of Shares to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear count came after the bank hired tisers have come under pres- on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing. a new chief marketing officer, a sure to cut back and rethink The receipt of cash by a holder of Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal incometaxpurposes. move that often leads to an their advertising models. See Section 5 of the Offer to Purchase for a more detailed discussion of the U.S. federal income tax treatment of theOffer. You are urged to consult agency change. HSBC hired Le- While WPP has lost a num- with your own tax advisor as to the particular tax consequences to you of the Offer and the Merger in light of your particular circumstances anne Cutts, a former marketing ber of accounts in recent years, (including the application and effect of any U.S. federal, state, local or non-U.S. income and other tax laws). executive from Mondelez, last including AT&T Inc. and Volks- The Offer to Purchase and the related Letter of Transmittal contain important information. Stockholders should carefully readboth year. Omnicom agency PHD is wagen AG, the holding company documents in their entirety before any decision is made with respect to the Offer. the new holder of the HSBC ac- isn’t alone. The media-buying Questions or requests for assistance may be directed to the Georgeson LLC (the “Information Agent”) at the address and telephone numbers count, whose review was con- sector is mired in a tumultuous set forth below. Requests for copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agentorto ducted by consultant ID Comms period in which many clients brokers, dealers, commercial banks or trust companies. Such copies will be furnished promptly at Purchaser’s expense. Purchaser will not pay any fees or commissions to any broker or dealer or any other person (other than the Information Agent or the Depositary) for soliciting tenders of Shares on behalf of the bank. have reviewed their ad-buying pursuant to the Offer. “We have selected PHD as relationships in an attempt to our preferred Media Planning cut costs, adapt to a faster- and Buying Supplier as they paced digital environment and The Information Agent for the Offer is: demonstrated strong strategic rebuild trust amid concerns skills and advanced digital around opaque media-buying transformation capabilities,” practices. Ms. Cutts said in a statement. Despite its challenges, WPP WPP has long had a close re- recently won some media busi- lationship with HSBC. Its ness for U.K. retailer Tesco PLC. 1290 Avenue of the Americas, 9th Floor Mindshare agency has been Omnicom referred calls to NewYork,NY10104 handling the media account for new client HSBC. WPP’s Shareholders, Banks and Brokers over a decade. WPP-owned GroupM, the ad-buying division Call Toll Free: 1-866-695-6078 agency J. Walter Thompson that includes Mindshare, didn’t Via Email: [email protected] also performs some creative respond to a request for com- duties for the bank. ment. B6 | Wednesday, May 23, 2018 ** THE WALL STREET JOURNAL. THE PROPERTY REPORT Retailers Roll Out Shop Crawls

Groups create events vide experiences for shoppers, such as free yoga or movie to lure customers nights. away from online “You’ve got to create excite- ment and engagement with competitors consumers to keep them com- ing back,” said Suzanne Mul- BY ESTHER FUNG vee, director of research and senior real-estate strategist at America is crawling with CoStar Group. crawls. The needlepoint tour, which Store owners and down- took about 18 months to plan, town planning committees in brought 16 women earlier this cities around the U.S. are or- month to stores like Ship- ganizing shop crawls—often wreck Beads, Luv2Stitch and A with alcohol flowing—to spark Stitch in Time. The organizers consumer interest in an era of gave them a canvas to work on online shopping. throughout the trip and they In recent months shoppers visited stores along the way to were treated to a three-hour attend classes and pick up sets vintage- and salvage-shop of threads. crawl in Kenosha, Wis.; a sum- “More and more needle- mer-shop crawl in Iowa City, point shops are closing. The Iowa, complete with cocktails; expenses are too high; people and a 10-day needlepoint shop don’t have time to do needle- crawl across Washington state, point. We wanted to support Oregon and California. shops and needlepoint Landlords and store owners classes,” said Elizabeth are looking for ways to gener- Bozievich, editor of Needle- ate buzz as consumer tastes point Now, an Elmira, Ore.- are changing quickly and e- based magazine and co-orga- commerce is siphoning sales nizer of the “Rolling Stitch revenue. For the past two Party and Shop Crawl” tour. years, large retailers such as Ms. Bozievich and her co-orga- Macy’s Inc. have been shrink- nizer, Laura Taylor, plan to do ing their bricks-and-mortar another tour in 2020. portfolios at a faster-than- In the Midwest, a vintage usual pace, which has hurt and salvage store started the some locations more than oth- Kenosha Vintage Shop Crawl ers. last year, bringing customers Net absorption of retail on a yellow school bus to hunt space in the U.S. slowed to 11 for reclaimed barn wood, million square feet in the first “Zero” electric desk fans, vin- quarter of this year, the lowest tage clothing and jewelry since 2012, according to data across another four stores in from CoStar Group. This year, the area. announced store closures have Against The Grain, which accounted for 95 million hosts the ticketed events, lim- square feet as of early May its the three-hour crawls to 28

and seem poised to exceed the people each so that all can fit CHRISTOPHER HUNTER (3) 105 million square feet logged into the stores. The summer shop crawl in Iowa City, Iowa, last week included about 20 stores and 250 participants, with cocktails and food. last year. “Every shop has food and More retailers are focusing drinks, and the shop owners turned out to be a bonding ex- wouldn’t have heard about the Friday, where 250 attendees ers said they have to control their energies on sprucing up tell you about the shop and perience with other partici- shops.” The crawl is held walked around 20 participat- the number of tickets to en- remaining stores, adding cafes how they started. You get to pants. nearly monthly with a differ- ing stores with a customized sure stores don’t run out of and electrical outlets for cus- see a little bit behind the Other store owners have ent theme each time, keeping glass in hand containing cock- beverages. tomers to grab a coffee or scenes,” said Kenosha resident been happy with it, said Amy it fresh for repeat customers. tails or nonalcoholic drinks “250 is as high as we’d go,” charge their phones. Peggy Burke, who has joined Ross, store manager at In Iowa City, Downtown doled out at each store. said Betsy Potter, director of Landlords also are boosting the crawl twice. Against The Grain. “We’ve District officials held the an- With drinks and appetizers operations at Iowa City Down- budgets for events that pro- She added that it also brought different people who nual summer shop crawl last being a big motivator, organiz- town District. Kushner and LNR Negotiate Debt Startup Opens Door BY PETER GRANT and Vornado did. “Back then, when liquidity For a Home Trade-In In 2007, when New York’s go- was in such short supply, there BY LAURA KUSISTO a new home on the contin- go commercial real-estate mar- weren’t that many games in gency of selling an existing ket was near its peak, Kushner town, so you cut a deal with the Soon it may be nearly as one can be pricey and have a Cos. purchased the office tower existing guy,” said Manus easy to trade in an old home negative stigma. Opendoor at 666 Fifth Ave. in Manhattan Clancy, senior managing direc- for a new one as it is to dis- will give a cash offer for a for what was then a record $1.8 tor of Trepp LLC, which tracks pense with a used car. house within 24 hours, he billion using mostly debt. the real-estate debt market. Open Door Labs Inc., a San said. The program appeals Now, that debt is moving to According to loan documents Francisco startup that buys to home builders because a center stage as Kushner Cos. reviewed by The Wall Street homes in cash and turns large share of their customers works to complete a deal to Journal, in exchange for the around and flips them, is get- already own a home and many bring in Brookfield Asset Man- fresh equity, LNR in 2011 agreed ting into business with home of them need to use the equity agement as a roughly 50% part- to extend the debt maturity un- builders. The partnerships will from that property to help ner in the 39-story tower, ac- til February 2019. LNR also offer new-home buyers a with a down payment for a cording to people familiar with agreed to cut the debt into a se- “trade-in” feature that will al- new one. the matter. nior $1.1 billion piece and a $115 low them to buy a new home Mr. Miller said buyers delay The deal would shore up 666 million junior piece. without having to worry about trading up for a new home be- Fifth Ave.’s balance sheet and Since then, Kushner Cos. and the hassle of selling the old cause they don’t want the has- provide hundreds of millions of Vornado have only paid debt one. sle of painting, fixing things dollars for an overhaul of the service on the senior debt. In- If the idea catches on, it up and showing their home. building that has been a finan- terest on the junior debt has ac- could pose a threat to the resi- cial headache for Kushner Cos. crued to the point that the total dential brokerage industry. for years, the people said. debt load is now $1.4 billion, ac- Traditional real-estate agents The concept could If the transaction succeeds, cording to loan documents and wouldn’t be needed in the kind Kushner Cos. would maintain Vornado financial filings. of deals being contemplated. pose a threat to 50.5% stake in the property. The issue now being negoti- Opendoor has been piloting traditional real- Kushner Cos.’s partner in the ated between Kushner Cos. and the program in select markets, property, Vornado Realty LNR is how much, if any, of the starting with Las Vegas in estate agents. Trust, would exit and essen- junior debt needs to be repaid, 2017 with Lennar Corp., the tially be replaced by Brookfield. according to some of the people country’s largest home builder But before that deal can take familiar with the matter. by revenue, which is an inves- place family-owned Kushner The loan documents state tor in Opendoor. Opendoor “Now we can speak to po- Cos. must reach an agreement that in the case of a “capital said it facilitated the purchase tential customers and say, ‘You with LNR Partners LLC, the event,” meaning a sale or refi- of $40 million of homes last don’t have to procrastinate. special servicer of the debt on nancing, the senior debt would month through its partner- We can help facilitate a group the building that totals more be repaid first. After that—in ships with Lennar and other that will buy your home,’” Mr.

than $1.4 billion, which comes VICTOR J. BLUE/BLOOMBERGwhat NEWS is known in the real-estate home builders, including Mer- Miller said. due in February. New York’s 666 Fifth Ave. is tied to Trump adviser Jared Kushner. industry as a capital “water- itage Homes Corp. Opendoor offers cash to Kushner Cos. contends that fall”—Vornado and Kushner Now, Opendoor is rolling homeowners based on a mar- only about $1.1 billion of that sold his stake in the property to strain on 666 Fifth Ave. was so Cos. would be repaid the fresh out a larger program in which ket analysis, and turns around debt needs to be repaid, accord- a trust controlled by other fam- acute Kushner Cos. had to rene- equity they put up in 2011, any customer buying a new and resells the homes, aiming ing to the people familiar with ily members. gotiate what was then $1.215 along with a return on that eq- home will have this option in to make a profit in fees and the matter. It is unclear Abbe Lowell, a lawyer for Mr. billion in debt and bring in Vor- uity. any of the nine markets where potential home-price apprecia- whether LNR agrees with that Kushner, has said his client “has nado as a 49.5% partner. Both The rest of the proceeds Opendoor operates. Opendoor tion after making modest im- assessment. Kushner Cos. and an ethics agreement…with Vornado and Kushner Cos. would be split between the ju- expects the program to be provements. The company will LNR are negotiating, the people which he is in full compliance.” agreed to put in as much as nior debt holder and the own- available in roughly 20 mar- work with new-home buyers said. The story of the debt on the $110 million in fresh capital for ers, the loan documents say. kets by the end of the year. to allow them to wait until Kushner Cos.’s efforts to sal- building—and the reason why leasing costs, upgrades, operat- Kushner Cos. maintains that, “Very often there’s the fric- their new home is ready be- vage its investment in 666 Fifth Kushner Cos. believes it doesn’t ing shortfalls and other costs. under the Brookfield deal, not tion involved in figuring out fore they move out, which can Ave. have come under intense have to pay the full $1.4 bil- The commercial real-estate enough proceeds are being gen- how to sell the first home,” take months. scrutiny since Jared Kushner, lion—goes back to when the industry was in such bad shape erated to pay the junior debt said Stuart Miller, chief execu- That introduces a welcome the scion of the family and family purchased the building then that creditors were more anything, according to people tive of Lennar. This program degree of flexibility for sellers. President Donald Trump’s son- in 2007, before Mr. Trump de- inclined than they are today to familiar with the matter. But “takes the friction out of the But it also potentially intro- in-law, took a senior White cided to run for president. restructure troubled debt the loan documents define a transaction.” duces more risk for Opendoor House job. Concerns have per- Most of the debt was sold to rather than foreclose on a prop- capital event as an “arm’s Nate Harbacek, Opendoor’s because there is a longer lag sisted among Trump critics and investors as commercial mort- erty, said real-estate debt ex- length sale” or a refinancing. head of corporate develop- time between when Opendoor others that Mr. Kushner might gage-backed securities that perts. Creditors were especially They are ambiguous when it ment, said the aim is to repli- makes an offer and takes pos- use his powerful position to as- were supposed to be repaid in inclined to cut deals when bor- comes to what happens if Kush- cate the experience of buying session of the home, leaving sist his family with 666 Fifth 2017. rowers were willing to put up ner Cos. brings in a partner to a new car. He pointed out that open the possibility that home Ave. even though Mr. Kushner But by 2011, the financial more equity, as Kushner Cos. replace Vornado. the current process of buying prices flatten or decline. B12 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. BANKING & FINANCE U.S. Banks Log Record Quarterly Profit

BY RYAN TRACY jumps in trading revenue and rate fell to 1.34% in the first proved to be mostly loyal, have debated whether this is a Return to Form AND TELIS DEMOS lending income, helped banks quarter, setting a postcrisis even to banks paying little in- blip or an early warning that U.S. banks’ quarterly return on comfortably exceed their cost low, according to the data. terest. While some rates, such consumers are overstretched. equity has well exceeded the WASHINGTON—U.S. banks of capital for the first time in The Federal Reserve’s re- as for online savings accounts, Banks’ card-loan balances fell 10% threshold for the first notched a record quarterly over a decade. cent moves to raise interest have ticked higher, the 5% from the fourth quarter, time since 2007. profit to start 2018, newly re- Banks’ return on equity was rates have so far been helpful megabanks that are increasing the only major loan category leased data show, a result of 11.44%, the highest level since for banks. Net interest income their deposits—such as JP- to decline sequentially. 15% the new tax law, rising interest 2007. for banks rose 8.5% from a Morgan Chase &Co.,Bank of Beyond cards, the FDIC said rates and an improving econ- That is a strong indication year ago to $131.3 billion, and America Corp. and Wells that banks’ reaching for more 10 omy. that banks have managed to their average net interest mar- Fargo & Co.—are also the ones yield by making longer-term The industry reported $56 adapt their businesses to new gin was 3.32%, up from 3.19% paying some of the lowest loans, which are typically risk- 5 billion in net income for the regulations put in place fol- a year ago. That is the widest rates to depositors. ier because there is a greater first quarter, up 27.5% from lowing the 2008 financial cri- margin since at least 2013. “Large institutions have chance of an adverse event 0 the year-ago quarter, the Fed- sis. They also have been That margin measures benefited more than commu- over time, was a point of eral Deposit Insurance Corp. helped by consumers and busi- banks’ lending income versus nity banks from rising short- worry. –5 said Tuesday. The new U.S. tax nesses that, at the moment, what they pay to attract de- term interest rates,” FDIC Loans and securities held law gave banks a boost, but are both eager to borrow and posits. The fear among some Chairman Martin Gruenberg by banks with maturities lon- –10 profits still would have been paying back their loans. investors is that banks will said. ger than three years are hov- $49.4 billion without it, the Indeed, consumers and need to pass on higher rates There are, however, signs of ering at around 35% of banks’ –15 FDIC said. The previous record businesses are falling behind to depositors faster than they trouble in credit-card lending. total assets, the highest level 2006 ’10 ’15 ’18 was the second-quarter profit on their bank debts at the can reprice their loans or Net charge-offs of bad card in 20 years. The biggest Source: FDIC of $48.1 billion last year. lowest rate in years. U.S. make new ones. debts increased 16% from a growth has been in loans that THE WALL STREET JOURNAL. That profit surge, driven by banks’ overall noncurrent-loan But so far, depositors have year ago. Analysts and bankers are due in more than 15 years. For Small Lenders, Bitcoin Is a Moneymaker Another

BY CHRISTINA REXRODE Bank, said that doing business Calpers for digital companies has al- To many banks, bitcoin and lowed his company to increase other digital currencies are a fee income, which more than Executive mania, or worse. But to a tripled in 2017, largely from handful of small lenders, they crypto transactions. The bank are a moneymaker. has also been able to build up Leaves Take Silvergate Bank,a deposits without racking up three-branch lender that until interest expenses or installing BY HEATHER GILLERS recently focused mostly on lo- lots of costly new locations, cal businesses in the San Di- which are often the tactics The nation’s largest public ego area. Last year, its assets employed by small banks to pension fund is wrestling with nearly doubled to $1.9 billion juice deposits. more turnover in the executive from $978 million, largely be- “You could just keep build- suite following the abrupt de- cause of business flowing in ing branches, which is a bad parture of its chief financial from crypto-related compa- strategy,” Mr. DeFazio said. officer. nies. “We noticed a long time ago Charles Asubonten, who Big banks’ decision to that the payments world was joined as finance chief less largely shun the crypto world changing.” than eight months ago, “no has left an opening for smaller The regulatory framework longer works” at the Califor- lenders such as Silvergate, for cryptocurrencies, and for nia Public Employees’ Retire- Metropolitan Bank Holding how banks can interact with ment System, a Calpers Corp. in New York and Cross them, is still uncertain. Silicon spokesman said Tuesday. He River Bank in Fort Lee, N.J. In Valley Bank, of Santa Clara, declined to describe the cir- part their decision reflects an Calif., which is known for em- cumstances surrounding the environment where commu- bracing disruptive technolo- executive’s exit. “It’s a person- nity banks often struggle to gies, has done business with nel matter, so I can’t say any- differentiate themselves, given crypto exchanges but has more thing more,” he said by email.

larger firms often can offer SANDY HUFFAKER FORrecently THE WALL STREET JOURNAL decided to focus on Mr. Asubonton was “sepa- consumers and businesses CEO Alan Lane’s Silvergate Bank nearly doubled its assets last year largely from crypto businesses. companies working with rated from his position” on largely unmatchable conve- blockchain, the technology May 16, according to the Cali- niences with their geographic that are well known in the which is privately held, said it companies call banks for help that enables crypto trading. fornia State Controller’s Office. reach and deployment of mo- crypto world, including the ex- now banks about 250 crypto with normal expenses like rent “You’re getting some level Mr. Asubonten couldn’t be bile and other technology. changes Coinbase, BitFlyer companies. and payroll. of guidance from regulators, reached for comment. These banks are taking a and Kraken, which allow users Mr. Lane said he isn’t con- Genesis Global Trading but there’s not total clarity,” The unexpected develop- calculated risk to embrace an to buy and sell digital cur- flicted about being a banker to Inc., a digital-currency trading said Jake Moseley, head of the ment follows the surprise an- untested new market that is rency. crypto businesses. “At what firm, has been banking with bank’s national fintech prac- nouncement last week that associated with a variety of Many Wall Street banks point as a banker do you pull Silvergate for several years. tice. “We’re being selective at Calpers Chief Investment Offi- hazards, itself a striking are resisting the idea of trad- Genesis Global CEO Michael this stage until we get greater cer Ted Eliopoulos would leave stance in the staid world of ing crypto. Others have re- Moro acknowledges that a clarity.” by year-end. Mr. Eliopoulos at- banking. Virtual currencies re- stricted customers from using Many Wall Street bigger bank would have some The U.S. Treasury’s Finan- tributed the decision to “sig- main unpredictable, defined by credit cards to buy digital cur- advantages. But he said he ap- cial Crimes Enforcement Net- nificant health considerations” wild price swings, increasing rency. Bitcoin has dropped by firms are resisting the preciated Silvergate’s open- work said that anti-money- for his younger daughter. regulatory scrutiny and a rela- more than half since its De- idea of trading ness to the crypto world, espe- laundering laws apply to Several other top Calpers tive lack of transparency that cember record. cially after watching other companies that transmit or is- officials have left or an- banks in a postcrisis world “Banking in this ecosys- cryptocurrencies. crypto companies go out of sue digital currencies and the nounced plans to depart, in- tend to avoid. tem,” said Silvergate Chief Ex- business after losing banks handling those transac- cluding longtime fixed-income “They’re taking on a risk, ecutive Alan Lane, “is not for their bank relationships. tions. The banks that have ad- chief Curtis Ishii and private- and going against the inherent the faint of heart.” “I sat down with Alan early opted the crypto strategy say equity managing investment view [of crypto] that ‘It’s all Mr. Lane, 56 years old, said your head out of the sand?” he on and he cared about bit- they have kept banking regula- director Real Desrochers. evil over there, don’t touch he became interested in cryp- said. “Every banker should be coin,” Mr. Moro said. “He re- tors well-informed and have Calpers plans to hire a that stuff,’” said Brian Stoeck- tocurrencies several years ago learning about the technol- ally believed in the potential rejected clients that don’t search firm to find a new fi- ert, a partner at consulting after reading some predictions ogy.” of what this might become, meet their standards. nance chief. Chief Compliance firm Stratis Advisory, which about how they would replace The business can take sev- and honestly it sort of was a “I don’t look down on any- Officer Marlene Timberlake specializes in crypto busi- the need for banks. Along the eral forms. Exchanges that let refreshing take given the sen- body who looks at this and D’Adamo will serve as interim nesses. “But then there’s also a way, he learned about crypto customers buy and sell virtual timents expressed by some of says, ‘Gosh, it’s risky,’” said finance chief until the position view of, ‘OK, well, they’ve got exchanges and related compa- currency need a place to store the other banks, especially the Mr. Lane, the Silvergate CEO. is filled. to get banked somewhere.’” nies that, despite a proposi- their customers’ money and a biggest ones.” “We’re just very blessed that Mr. Asubonten succeeded So far, the Main Street tion that is largely anti-bank, way for them to convert Mark DeFazio, CEO of we have a culture here where Cheryl Eason, who began a banks have landed customers still need bankers. Silvergate, crypto to dollars. Other crypto the six-branch Metropolitan we took an interest early.” new job as vice president and chief financial officer of Royal Roads University in British Columbia. Ms. Timberlake TPG Explores Managing Abraaj’s Health-Care Fund D’Adamo was interim CFO un- til Mr. Asubonten arrived. Calpers said when Mr. Asu- U.S. private-equity firm TPG executives are at an early talks, the people said. The $1 billion in 2016 from more dispute with investors over bonten was hired that he came TPG is in talks with investors stage and an agreement hasn’t Dubai-based firm told inves- than 20 investors to help pro- how their money was being from a private-equity firm and in Abraaj Group’s $1 billion been reached, the people said. tors last month that it was vide affordable health care to used. The disagreement con- had 20 years of experience in health-care fund about taking TPG would likely manage the stepping down as manager of people in Africa and Asia. The cerned money allegedly not “many aspects of finance and health-care assets through its the health-care fund following health-care fund has invested being used for its stated pur- investments” across five conti- By William Louch, Rise fund, the people said. The allegations that it misused in- in Indian hospitals, Kenyan pose of building hospitals and nents in areas ranging from Simon Clark $2 billion fund aims to make vestors’ money in the fund, clinics and a diagnostics busi- clinics in Africa and Asia, the mining to energy to health care. and Nicolas Parasie what are called impact invest- The Wall Street Journal has ness in Pakistan, fund docu- Journal has reported. The CFO doesn’t oversee ments capable of earning prof- reported. Investors including ments show. TPG’s Rise fund has famous Calpers’s $355 billion in in- over management of the fund’s its and providing measurable the Gates Foundation and the Like TPG’s Rise fund, Abraaj backers, including U2 lead vestments; that job belongs to hospitals and clinics in devel- improvements to the quality of World Bank’s International Fi- marketed its health-care ven- singer Bono, film producer the chief investment offi- oping countries, people famil- life of people on low incomes. nance Corp. hired a forensic ture as an impact fund that Jeff Skoll and British entrepre- cer. The CFO is responsible for iar with the matter said. TPG manages more than $82 accountant to investigate the could assist the poor and neur Richard Branson. TPG re- managing everything from Talks between investors in billion, according to its web- fund earlier this year. make money for wealthy in- cently appointed former U.S. Calpers’s budget and account- the fund, including the Bill & site. Abraaj, founded in 2002 by vestors. Abraaj’s health-care Secretary of State John Kerry ing to risk management and fi- Melinda Gates Foundation, and Abraaj isn’t involved in the deal maker Arif Naqvi, raised initiative was derailed by the as an adviser to the Rise fund. nancial planning.

Data provided by Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Mutual Funds Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret IntlIdxPrem r 43.98 +0.01 2.0 SrsIntlVal 10.80 +0.01 1.0 CorePlusBd 8.01 ... -2.3 IncomeFd 11.98 ... -1.4 IntlEqIdxInst 20.58 -0.01 2.0 TotIntlAdmIdx r 30.77 ... 1.1 WellsI 26.11 -0.03 -2.5 Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. SAIUSLgCpIndxFd 14.66 -0.05 2.7 TotalBond 10.30 ... -2.2 Lazard Instl Price Funds Tweedy Browne Fds TotStAdml 68.48 -0.26 3.1 Welltn 41.69 -0.03 -0.2 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e TMktIdxF r 78.43 -0.29 3.1 First Eagle Funds EmgMktEq 19.00 +0.14 -5.1 BlChip 106.89 -0.56 11.0 GblValue 29.51 -0.03 3.6 TxMIn r 14.60 -0.01 1.7 WndsrII 38.11 -0.12 0.7 and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, TMktIdxPrem 78.42 -0.30 3.0 GlbA 59.61 -0.09 0.9 Lord Abbett A EqInc NA ... NA VANGUARD ADMIRAL ValAdml 41.28 -0.06 0.3 VANGUARD INDEX FDS 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r USBdIdxInstPrem 11.16 ... -2.7 FPA Funds ShtDurIncmA p 4.18 ... -0.2 EqIndex 73.29 -0.23 2.6 500Adml 252.24 -0.79 2.7 WdsrllAdml 67.63 -0.22 0.8 500 252.21 -0.79 2.6 apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not Fidelity Advisor I FPACres 35.01 +0.03 0.9 Lord Abbett F Growth 67.75 -0.38 8.1 BalAdml 34.82 -0.08 0.8 WellsIAdml 63.26 -0.07 -2.5 ExtndIstPl 218.74 -1.50 4.9 available due to incomplete price, performance or cost data. NE-Not released by Lipper; NwInsghtI 33.61 -0.14 7.2 FrankTemp/Frank Adv ShtDurIncm 4.18 ... -0.2 HelSci 74.53 -0.20 5.9 CAITAdml 11.55 ... -0.9 WelltnAdml 71.99 -0.07 -0.2 SmValAdml 58.36 -0.32 2.8 data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Fidelity Freedom IncomeAdv 2.30 ... -0.3 Metropolitan West InstlCapG 40.72 -0.24 10.3 CapOpAdml r160.89 -0.39 4.7 WndsrAdml 80.43 -0.14 1.8 TotBd2 10.32 ... -2.8 FF2020 16.29 -0.02 0.8 FrankTemp/Franklin A TotRetBd 10.30 ... -2.5 IntlStk 18.76 +0.01 0.5 EMAdmr 37.80 +0.14 -0.8 VANGUARD FDS TotIntl 18.40 ... 1.1 TotRetBdI 10.30 ... -2.5 EqIncAdml 77.33 -0.17 -0.3 TotSt 68.45 -0.26 3.0 Tuesday, May 22, 2018 FF2025 14.22 -0.01 1.0 CA TF A p 7.26 ... -1.6 IntlValEq 15.14 +0.01 0.1 DivdGro 26.76 -0.08 2.0 FF2030 17.84 -0.02 1.4 IncomeA p 2.32 ... -0.4 TRBdPlan 9.69 ... -2.4 MCapVal 31.15 -0.09 2.5 ExplrAdml 97.28 -0.90 10.0 INSTTRF2020 22.66 -0.03 0.6 VANGUARD INSTL FDS Net YTD Net YTD Net YTD MFS Funds Class I Freedom2020 K 16.28 -0.01 0.8 RisDv A p 61.68 -0.36 1.1 MidCap 91.61 -0.64 5.3 ExtndAdml 88.64 -0.60 4.9 INSTTRF2025 23.06 -0.03 0.9 BalInst 34.83 -0.08 0.8 Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret ValueI 39.88 -0.10 -1.9 Freedom2025 K 14.20 -0.01 1.0 FrankTemp/Franklin C N Inc NA ... NA GNMAAdml 10.15 ... -1.8 INSTTRF2030 23.38 -0.04 1.1 DevMktsIndInst 14.62 -0.01 1.7 MFS Funds Instl 76.16 -0.39 5.5 22.85 -0.02 1.7 American Century Inv Baird Funds US CoreEq2 22.09 -0.11 2.6 Freedom2030 K 17.82 -0.02 1.5 Income C t 2.35 ... -0.6 NHoriz 57.93 -0.41 10.2 GrwthAdml INSTTRF2035 23.71 -0.04 1.5 DevMktsInxInst IntlEq 26.06 +0.01 2.4 HlthCareAdml r 84.73 -0.21 0.3 ExtndInst 88.63 -0.61 4.9 Ultra 47.18 -0.23 8.7 AggBdInst 10.48 ... -2.8 US Small 37.45 -0.32 4.4 Freedom2035 K 15.12 -0.02 2.1 FrankTemp/Temp A OverS SF r 11.61 -0.02 2.7 INSTTRF2040 24.03 -0.05 1.7 Oakmark Funds Invest HYCorAdml r 5.73 ... -1.2 GrwthInst 76.16 -0.39 5.5 American Funds Cl A CorBdInst 10.83 ... -2.6 US SmCpVal 39.85 -0.33 5.1 Freedom2040 K 10.62 -0.02 2.1 GlBond A p 11.82 +0.04 0.9 R2020 NA ... NA INSTTRF2045 24.25 -0.05 1.9 BlackRock Funds A EqtyInc r 32.12 -0.05 -0.2 InfProAd 25.09 -0.02 -1.7 InPrSeIn 10.22 -0.01 -1.7 AmcpA p 33.93 -0.16 7.7 US TgdVal 25.92 -0.24 4.3 Fidelity Invest Growth A p 27.21 -0.02 -0.2 R2025 NA ... NA INSTTRF2050 24.27 -0.05 1.9 GlblAlloc p 19.66 ... -0.2 Oakmark 86.79 -0.28 2.9 IntlGrAdml 101.57 -0.03 6.3 InstIdx 248.96 -0.77 2.7 AMutlA p 40.97 -0.11 0.9 USLgVa 39.23 -0.05 0.7 Balanc 24.23 -0.05 2.4 FrankTemp/Temp Adv R2030 NA ... NA IntlVal 40.09 -0.04 0.5 BlackRock Funds Inst OakmrkInt 28.77 +0.16 0.7 ITBondAdml 10.85 ... -3.5 InstPlus 248.98 -0.78 2.7 BalA p 27.16 -0.08 0.4 Dodge & Cox BluCh 95.43 -0.48 8.7 GlBondAdv p 11.77 +0.04 0.9 R2035 NA ... NA LifeCon 19.87 -0.02 -0.1 EqtyDivd 23.00 -0.01 1.5 Old Westbury Fds ITIGradeAdml 9.34 ... -3.0 InstTStPlus 60.88 -0.23 3.1 BondA p 12.44 ... -2.7 Balanced 105.91 -0.02 0.6 Contra 130.83 -0.55 8.5 Harbor Funds R2040 NA ... NA LifeGro 34.17 -0.07 1.5 GlblAlloc 19.79 ... -0.1 LrgCpStr 14.75 -0.04 2.0 LTGradeAdml 9.65 -0.01 -7.6 MidCpInst 43.18 -0.21 2.4 CapIBA p 61.25 -0.06 -1.7 GblStock 13.80 +0.05 -0.4 ContraK 130.80 -0.55 8.5 CapApInst 76.41 -0.42 10.0 Value 37.08 -0.08 -0.6 LifeMod 27.34 -0.03 0.7 StratIncOpptyIns 9.82 ... -0.1 Oppenheimer Y MidCpAdml 195.48 -0.93 2.4 MidCpIstPl 212.97 -1.02 2.4 CapWGrA 52.71 -0.07 3.5 Income 13.41 ... -1.6 IntlInst r 68.79 -0.06 1.9 PRIMECAP Odyssey Fds Bridge Builder Trust CpInc r 10.24 -0.02 0.9 DevMktY 43.65 +0.17 1.7 MorgAdml 98.14 -0.50 8.2 PrmcpCor 27.58 -0.07 2.5 SmCapInst 73.99 -0.52 4.9 EupacA p 57.60 +0.04 2.5 Intl Stk 45.97 +0.22 -0.8 Harding Loevner AggGrowth r 50.21 -0.13 13.3 CoreBond 9.80 ... -2.6 DivIntl 40.33 +0.02 0.8 IntGrowY 44.39 -0.03 1.8 MuHYAdml 11.16 ... -1.0 SelValu r 30.38 -0.04 -2.8 SmCapIstPl 213.57 -1.50 4.9 FdInvA p 63.56 -0.24 2.4 Stock 204.94 -0.08 2.2 IntlEq NA ... NA 41.19 -0.04 10.6 Del Invest Instl GroCo 196.19 -0.87 9.8 Parnassus Fds Growth r MuIntAdml 13.82 +0.01 -1.1 STAR 27.17 -0.05 1.4 STIGradeInst 10.44 ... -0.8 GwthA p 53.31 -0.26 7.6 DoubleLine Funds Invesco Funds A 32.59 -0.11 2.1 Value 22.00 -0.12 2.9 GrowCoK 196.22 -0.87 9.9 ParnEqFd 43.49 -0.14 2.3 Stock r MuLTAdml 11.34 ... -1.5 TgtRe2015 15.36 -0.01 0.2 TotBdInst 10.35 ... -2.7 HI TrA p 10.13 ... -0.1 CoreFxdIncmI 10.67 ... -1.8 10.99 -0.01 0.6 Dimensional Fds InvGB 7.65 ... -2.6 EqIncA PIMCO Fds Instl Principal Investors MuLtdAdml 10.80 ... -0.1 TgtRe2020 31.56 -0.04 0.6 TotBdInst2 10.32 ... -2.7 ICAA p 41.20 -0.12 2.4 TotRetBdI 10.38 ... -1.2 John Hancock Class 1 5GlbFxdInc 10.82 ... -0.5 InvGrBd 10.86 ... -2.4 AllAsset NA ... NA DivIntlInst 14.09 -0.01 1.4 MuShtAdml 15.69 ... 0.4 TgtRe2025 18.65 -0.02 0.8 TotBdInstPl 10.35 ... -2.7 Edgewood Growth Instituti IncoA p 23.05 -0.02 -0.7 EmgMktVa 31.60 +0.07 1.2 LowP r 55.51 -0.26 1.8 LSGwth 16.36 -0.03 1.7 ShortT 9.89 ... 1.0 Prudential ClZ&I PrmcpAdml r141.24 -0.14 5.7 TgtRe2030 34.01 -0.05 1.1 TotIntBdIdxInst 32.55 -0.02 0.3 N PerA p 45.42 -0.10 5.2 EmMktCorEq 22.79 +0.10 -1.9 EdgewoodGrInst 32.73 -0.07 10.7 MagIn 105.30 -0.50 5.5 John Hancock Instl TotRt 9.92 ... -2.5 TRBdZ 13.97 +0.01 -3.0 RealEstatAdml108.88 +0.17 -6.5 TgtRe2035 20.98 -0.04 1.4 TotIntlInstIdx r123.06 ... 1.1 NEcoA p 49.03 ... 9.9 IntlCoreEq 14.85 -0.02 2.1 Fidelity OTC 12.04 -0.05 9.6 DispValMCI 23.62 -0.07 1.3 PIMCO Funds A Schwab Funds SmCapAdml 73.99 -0.52 4.9 TgtRe2040 36.39 -0.07 1.7 TotItlInstPlId r123.08 ... 1.1 NwWrldA 67.86 +0.12 1.4 IntlVal 20.99 +0.01 2.6 500IdxInst 95.43 -0.30 2.7 Puritn 23.93 -0.06 2.6 JPMorgan Funds IncomeFd 11.98 ... -1.5 S&P Sel 42.29 -0.13 2.7 STBondAdml 10.21 ... -0.9 TgtRe2045 22.92 -0.05 1.9 TotStInst 68.50 -0.26 3.1 SmCpA p 58.44 -0.11 4.7 IntSmCo 21.69 -0.03 2.0 500IdxInstPrem 95.43 -0.30 2.7 SrsEmrgMkt 21.00 +0.09 -1.9 MdCpVal L 39.87 -0.13 -1.0 PIMCO Funds I2 TIAA/CREF Funds STIGradeAdml 10.44 ... -0.8 TgtRe2050 36.88 -0.08 1.9 ValueInst 41.28 -0.06 0.3 TxExA p 12.75 ... -1.1 IntSmVa 23.11 -0.03 0.6 500IdxPrem 95.43 -0.30 2.7 SrsGroCoRetail 18.34 -0.09 10.3 JPMorgan R Class Income 11.98 ... -1.4 BdIdxInst 10.41 -0.01 -2.8 TotBdAdml 10.35 ... -2.7 TgtRetInc 13.48 -0.01 -0.2 Western Asset WshA p 46.44 -0.22 2.2 US CoreEq1 23.45 -0.12 3.2 ExtMktIdxPrem r 65.01 -0.45 4.9 SrsIntlGrw 16.43 -0.02 1.7 CoreBond 11.21 ... -2.4 PIMCO Funds Instl EqIdxInst 20.25 -0.07 3.1 TotIntBdIdxAdm 21.69 -0.01 0.3 TotIntBdIxInv 10.85 ... 0.3 CorePlusBdI 11.29 +0.01 -3.5 THE WALL STREET JOURNAL. **** Wednesday, May 23, 2018 | B13 MARKETS Venezuela Sanctions Are Bullish for Oil

Penalties on South sanctions on Monday after con- off on measures that would keep Iran’s oil flowing, even ures. And the collapse is pick- demning as a “sham” the pro- Plummeting have taken more direct aim at though some major oil pro- ing up steam. Venezuelan American country to cess that led to President Nico- Venezuela's oil production has Venezuela’s oil sales, perhaps ducers like Total SA have an- crude output has dropped by have greater effect on lás Maduro’s re-election on dropped dramatically amid a in an effort to avoid causing nounced plans to leave the an additional 200,000 barrels Sunday. A long period of pro- spiraling economic crisis. oil prices to move higher as country if they don’t get a day this year, to stand at 1.42 supply than Iran’s duction declines in the South summer driving season begins. waivers. China, the largest million barrels a day, a 15-year Monthly crude-oil production American country is about to The effect might only be indi- buyer of Iranian crude, still low and a striking reversal of BY ALISON SIDER get much worse, analysts said. 3.0 million barrels a day rect, forcing Venezuela to use supports the nuclear agree- fortune for a country with the AND JULIE WERNAU The “physical impact” of the cash to buy diluent, a product ment and hasn’t historically world’s largest oil reserves. Venezuelan situation on the 2.5 it needs to blend with its out- abided by U.S. restrictions on Further complicating efforts, New U.S. sanctions on Vene- global oil market is much more put, ClearView said. Iranian oil. U.S. oil giant ConocoPhillips, zuela’s oil production are ex- significant than that of Iran, 2.0 But oil analysts like Mr. Analysts at Citigroup said one of dozens of creditors com- pected to further crimp the said Christyan Malek, an oil an- Malek believe the greater sup- the disruption to Iran’s output ing after Venezuela for expro- country’s output and reduce alyst at JPMorgan Chase & Co. 1.5 ply threat resides in Venezuela, could be 200,000 barrels a day priated assets and unpaid set- global supply even more than Sanctions are likely to make not Iran. He predicts “no higher than it previously tlements, recently won a court sanctions on Iran—a develop- it harder for Venezuela to keep 1.0 change” at all for the Islamic thought. The bank recently ruling on the Dutch island of ment that could provide an- producing and exporting crude, Republic’s oil exports. He said raised its oil-price forecast for Curaçao, authorizing its local other boost to rising crude which would squeeze refiners 0.5 Iran will likely circumvent U.S. this year by $10 a barrel and subsidiary to seize assets held prices. and force them to find new economic sanctions by export- now expects prices to average there by PdVSA. Asset seizures Oil prices in the U.S. have sources of the heavy crude that ing more barrels to countries $75 a barrel this year due to from the area, a significant de- 0 risen more than 19% this year Venezuela produces. ’ like Turkey and India. the combined impact of de- parture point for Venezuelan to $72.13 a barrel, driven in Venezuela’s decline has also 2013 ’14 ’15 ’16 ’17 Iran sanctions are likely to clines in Venezuela and Iran. crude, may have already af- large part by OPEC cutbacks inadvertently bolstered efforts Source: International Energy Agency be smaller, slower and more Analysts agree that any dis- fected PdVSA’s ability to export and supply disruptions. These by the Organization of the Pe- THE WALL STREET JOURNAL. uncertain in terms of their im- ruption to Venezuela’s oil in- to Asia, according to Alejandro forces, along with rising global troleum Exporting Countries to pact on the oil market com- dustry, the country’s main Arreaza, an economist at Bar- demand for oil, have combined tighten the market by restrain- Many analysts predict Vene- pared with Venezuela’s decline. source of foreign reserves, will clays. to shrink what had been a sup- ing production. Venezuela is zuela’s output will continue to Countries have 180 days to deepen its economic crisis. Data in the coming months ply glut that dragged U.S. producing around 550,000 bar- drop. David Fyfe, chief econo- show they are ramping down The broadened sanctions will show the magnitude of the prices below $30 a barrel in rels a day less than the cap it is mist at Gunvor Group, said Iranian oil imports or face re- impede Venezuela’s ability to impact of sanctions and asset 2016 before they recovered. subject to under the agreement. Venezuela’s declining produc- stricted access to U.S. financial sell its foreign assets and pro- seizures, he said The Trump administration’s “The free fall in Venezuela tion together with the broad- institutions; it is unlikely that hibit Americans from buying “It was believed that this decision this month to exit has already pushed compliance ened sanctions in Venezuela some of Iran’s biggest custom- any debt owed to Venezuela. production decline would slow from the Iran nuclear agree- with the Vienna Agreement off mean output will likely drop ers will comply. That includes accounts receiv- and stabilize, but now that is ment and restart sanctions the charts,” the International an additional 500,000 barrels a Previous sanctions on Iran able—or debts owed for oil not the case because of this stoked concerns that global Energy Agency wrote in a day, placing Venezuelan pro- reduced the flow of its oil by 1 sales—at its state-owned oil sanctions situation,” said output could decline further. monthly report last week. The duction below 1 million barrels million barrels a day, but this company, Petróleos de Vene- Carsten Fritsch, an analyst at Now, Venezuela is emerging as country’s decline coupled with a day by the end of 2018. time there is likely to be less zuela SA. Commerzbank. “It is now rea- possibly a greater and more im- losses in Mexico account for Analysts at ClearView En- international cooperation, ana- Venezuela’s oil output slid sonable to think this deteriora- mediate risk to global oil sup- about 40% of the oil that OPEC ergy Partners think the fears lysts said. around 23% over the course of tion continue at stronger pace.” ply. and its allies have been holding may be overblown. They said The European Union is still last year, according to Inter- —Christopher Alessi Washington announced fresh off the market, the IEA said. the Trump administration held trying to salvage the deal to national Energy Agency fig- contributed to this article. Treasurys Chinese Firms Take New Fundraising Tack

Flat After BY JULIE STEINBERG AND LIZA LIN Show Me the Money Venture-capital investments Fair Sale Some of China’s most valu- in China, quarterly able private technology compa- nies are seeking new ways to $40 billion Of Notes raise capital to fund their am- bitious expansion plans at 30 BY AKANE OTANI home and abroad. Ride-hailing firm Didi Chux- 20 U.S. government bonds ing Technology Co. is in talks stalled as a dearth of economic with potential investors about 10 data and a relatively uneventful a sale of convertible bonds that debt auction left many investors could later be exchanged into 0 on the sidelines. stock in the Beijing-based com- 2016 ’17 ’18 The yield on the benchmark pany, according to people fa- Note: Equity financing into China-based, 10-year U.S. Treasury note set- miliar with the matter. It isn’t venture-capital-backed startups tled at 3.065%, unchanged from known how much Didi is trying Source: Dow Jones VentureSource Monday. to raise in this manner, but the THE WALL STREET JOURNAL. Yields, which fall as bond company recently accelerated prices rise, slipped overnight as talks about a potential initial convertible bonds often have a Italian govern- public offering that could take road map for an eventual IPO, CREDIT ment bonds— place later this year, people fa- typically within 12 to 18 MARKETS which had weak- miliar with the matter previ- months, said Aaron Oh, head of ened as investors ously told The Wall Street structured equity origination

braced for politi- Journal. Ride-hailing company Didi Chuxing is talking to investors about a sale of convertible bonds. CARLOS JASSO/REUTERS for Asia-Pacific at Credit cal uncertainty under the coun- Another rapidly expanding Suisse Group AG. If an IPO try’s new government—recov- Chinese startup, Beijing Byte- sult of technology companies’ riod and can be converted into given the right to swap the doesn’t materialize, however, ered some of their losses. They dance Technology Co., in re- expansion efforts, which have shares in the issuing company, convertible securities for com- companies could be on the then wavered between small ad- cent weeks issued about $300 involved heavy spending on often at a predetermined price mon shares in the company at hook to repay debtholders. vances and declines, with some million in convertible bonds to marketing and other costs to or price range. The annual in- a discount to Alibaba’s IPO Didi and Bytedance are analysts attributing the lull in private-equity firm KKR &Co., acquire customers and fend off terest payments on convertible price at which it went public in among a new wave of Chinese trading to a dearth of economic according to other people fa- rivals. securities also can be a few 2014. internet and technology start- data on the calendar. miliar with the matter. The Selling convertible securi- percentage points lower than In the case of Spotify, the ups that eventually could chal- Bond yields largely held company, which owns a popu- ties allows companies to raise rates on traditional unsecured company issued $1 billion in lenge the dominance of Alibaba steady after the Treasury sold lar Chinese news-aggregation capital with less dilution to ex- bonds. convertible debt to a group of and Tencent in some areas. $33 billion of two-year notes at app called Jinri Toutiao, was isting shareholders, while giv- Some technology companies investors in 2016, also about Both startups have raised a high yield of 2.59%, slightly valued at $22 billion in an eq- ing buyers of the instruments that previously sold convert- two years before it went pub- funds by selling equity several lower than where they traded uity fundraising round in late an opportunity to reap addi- ible securities before going lic. Sea Ltd., a Southeast Asian times in recent years. before the auction. 2017, according to an individ- tional gains if and when the public include Chinese e-com- digital entertainment and e- Didi as of the end of 2017 The absence of a so-called ual familiar with that transac- debt converts into stock down merce firm Alibaba Group commerce company backed by had raised more than $20 bil- tail—when the highest yield the tion. the road. Holding Ltd. and music- Tencent Holdings Ltd., also is- lion in equity and debt funding, Treasury sold in the auction ex- Representatives for Didi, The securities, which have streaming company Spotify sued convertible securities be- according to Dow Jones Ven- ceeds the highest yield expected Bytedance and KKR declined to both stock- and bond-like char- Technology SA. When Alibaba fore it went public on the New tureSource, and the company when the auction began—sug- comment. acteristics, typically pay inves- issued such instruments in York Stock Exchange last year. was valued at $56 billion in its gested there was fair demand The emerging trend is a re- tors interest for an initial pe- 2012, investors in effect were Private companies selling last private fundraising round. among investors for the bonds, something analysts said helped keep the market steady. The yield on the two-year Financials in Front note, which is often sensitive to Financial stocks outperformed the other 10 sectors in the S&P 500 changes in investors’ expecta- on Tuesday. tions for Federal Reserve policy, Performance, minute by minute settled at 2.570%, unchanged 1.2% S&P 500 from Monday and below its May financials 16 closing high of 2.589%. 1.0 sector Investors may have also been s0.6% holding off from making big 0.8 moves ahead of the release of Fed minutes later in the week, 0.6 analysts said. 0.4

AUCTION RESULTS 0.2 Here are the results of Tuesday's Treasury auctions. All bids are awarded at a single price at the market- 0 S&P 500 clearing yield. Rates are determined by the difference t between that price and the face value. 0.3% FOUR-WEEK BILLS –0.2 Applications $139,656,172,900 Accepted bids $45,000,042,900 –0.4 " noncompetitively $755,866,900 " foreign noncompetitively $100,000,000 9:30 10 11 noon 1 2 3 4 MICHAEL NAGLE/BLOOMBERG NEWS Auction price (rate) 99.866222 (1.720%) J.C. Penney shares fell 6% after CEO Marvin Ellison said he was leaving the retailer for Lowe’s. Source: FactSet THE WALL STREET JOURNAL. Coupon equivalent 1.746% Bids at clearing yield accepted 52.90% Cusip number 912796MF3 The bills, dated May 24, 2018, mature on June 21, 2018. Industrials Pull Down Stocks in Late Trading 52-WEEK BILLS $95,702,206,800 Applications BY RIVA GOLD Accepted bids $26,000,269,300 minutes. Industrial stocks— with Mr. Kim may not happen, and regional lenders from a unveiled a $10 billion stock- " noncompetitively $578,524,800 AND ALLISON PRANG which powered Monday’s rally adding to uncertainty. number of restrictions tied to buyback plan. Shares of J.C. " foreign noncompetitively $0 Auction price (rate) 97.699722 on news the U.S. would sus- The Dow Jones Industrial the 2010 Dodd-Frank financial Penney fell 15 cents, or 6%, to (2.275%) U.S. stocks slid as investors pend its efforts to apply tariffs Average fell 178.88 points, or overhaul. After the close, the 2.35 after Chief Executive Coupon equivalent 2.347% weighed the latest trade ten- to $150 billion in Chinese im- 0.7%, to 24834.41, after rising House passed the Senate-ap- Marvin Ellison said he was Bids at clearing yield accepted 37.67% Cusip number 912796QH5 sions between the U.S. and ports—were among the big- Monday above 25000 for the proved bill. leaving the company to run The bills, dated May 24, 2018, mature on May 23, 2019. China and as gest losers. first time since March. The The KBW Bank Index, which home-improvement retailer TWO-YEAR NOTES TUESDAY’S President Don- Boeing was the biggest S&P 500 fell 8.57 points, or comprises 24 different banks Lowe’s. Shares of Lowe’s fell Applications $100,684,532,100 MARKETS ald Trump drag on the blue chips, falling 0.3%, to 2724.44 and the Nas- including large lenders such as 1.64, or 1.9%, to 85.75. Accepted bids $38,732,492,100 " noncompetitively $420,191,900 said his June $8.90, or 2.5%, to $355.02, daq Composite dropped 15.58 Bank of America and smaller The Stoxx Europe 600 " foreign noncompetitively $150,000,000 summit with while Caterpillar dropped points, or 0.2%, to 7378.46. firms like KeyCorp and edged up 0.3%, while the U.K.’s Auction price (rate) 99.825680 (2.590%) North Korean leader Kim Jong 2.72, or 1.7%, to 156.20. Financial stocks were a Comerica, closed up 0.9%. FTSE 100 rose 0.2% to a re- Interest rate 2.500% Un “may not work out.” Mr. Trump said Tuesday he bright spot, climbing 0.6% in In corporate news, shares cord close. In Asia early Bids at clearing yield accepted 79.53% Cusip number 9128284Q0 Shares waffled between isn’t satisfied with the China the S&P 500. Those shares ral- of Micron Technology Wednesday, Japan’s Nikkei and The notes, dated May 31, 2018, mature on May 31, small gains and losses before trade talks and separately said lied ahead of a House vote on climbed 3.55, or 6.4%, to 59.03 Hong Kong’s Hang Seng Index 2020. turning lower in the final 90 his planned June 12 summit a bill that would relieve small after the memory-chip maker were each down 0.7%. B14 | Wednesday, May 23, 2018 THE WALL STREET JOURNAL. MARKETS Copper Misses Out on Commodities Rally

BY AMRITH RAMKUMAR 20% think copper prices can rise if The metal is trailing oil and an index of 24 commodities this year. U.S. crude oil* economic data pick up and the After hitting a nearly four- U.S. and China reach a com- year high in 2017, copper 15 promise on trade policies. prices have slumped this year, Treasury Secretary Steven a worrying signal for the Mnuchin said over the week- global economy even as 10 end that the U.S. was “putting stocks, oil and other markets the trade war on hold,” push- have rebounded. S&P GSCI Index ing up copper 2.2% over the Prices of copper have fallen 5 past two sessions. Some ana- 4.9% in 2018, though they lysts also think copper is just climbed Monday and Tuesday taking a breather after its best to close at $3.1190 a pound. year since 2010, noting that 0 The metal is underperforming continued gains in oil should January February March April May the S&P GSCI Index of 24 com- lift other materials eventually modities by its widest margin Copper* as well. over the past two decades, –5 Still, hedge funds and other other than at the start of 2016, speculative investors have cut according to an analysis by net bets on higher copper WSJ Market Data Group of –10 prices by 75% in 2018, and in comparable periods. Net bullish bets on higher copper prices have fallen in recent weeks after hitting a record last September. March pushed them to their The gap is a bearish sign lowest level since 2016, ac- 125,000 contracts for some investors because cording to Commodity Futures copper is used to build every- 100,000 Trading Commission data. thing from airplanes to smart- Worries about oversupply 75,000 phones. Copper’s weakness is also have hurt copper prices, especially notable because oil 50,000 analysts said. While conflict in has added 19% this year and the Middle East has stoked 25,000 on Monday closed at its high- concerns about lower oil pro- est level since 2014. Oil and 0 duction and thus boosted copper are two of the most ac- June 2017 2018 prices, the supply disruptions tively traded commodities, and from labor-contract renegotia- some investors trade the two Copper supply is expected to exceed Some investors worry that cumulative The S&P 500 has erased its February tions and other conflicts be- together in a single basket. demand this year after several years growth in Chinese fixed-asset losses and climbed into positive tween miners and host gov- Some analysts fear that of market deficits. investment‡ will continue slowing. territory for the year. ernments—problems that protectionist trade policies buoyed copper prices last 200,000 metric tons 8% Change from a year earlier 2900 will lead to slower activity and year—haven’t materialized in ultimately a weaker global 2018. economy. That could reduce 0 6 2800 Late last month, the Inter- consumption of materials such national Copper Study Group, as copper. A long-feared eco- –200,000 4 2700 an organization of copper-pro- nomic slowdown in China, the ducing and -consuming coun- world’s largest commodities –400,000 2 2600 tries, said it expects a small consumer, and recent data in supply surplus in 2018, after Europe and Japan have only –600,000 0 2500 previously projecting a deficit. compounded those worries. The ICSG on Monday also pub- “Growth isn’t as synchro- 2014 ’15 ’16 ’17 ’18† ’19† February March April Jan. Feb. March April May lished figures showing there nized as it once was,” said Ed- *Front-month price †Projections ‡A measure of construction activity from the start of the year was a slight surplus in the ward Meir, a strategist at bro- Sources: WSJ Market Data Group (copper, oil performance); FactSet (GSCI, S&P 500); Commodity Futures Trading Commission (bets); first two months of the year. ker-dealer INTL FCStone. International Copper Study Group (supply); Chinese National Bureau of Statistics (fixed-asset investment) THE WALL STREET JOURNAL. “We as a market may have “Copper is reacting more to been a little too positive on that slowdown.” making the metal more sensi- years. And Europe’s economic the U.S., a trend that has re- expensive for overseas buyers. both the demand and supply Recent Chinese data tive to economic data from the growth slowed to 1.7% in the cently pushed up Treasury “You can’t ignore the dents sides,” said Peter Kocubinski, showed that a closely watched country. first quarter, according to the yields and the dollar and con- in the bullish argument for portfolio manager and head of gauge of construction activity Meanwhile, Japan’s econ- European Statistics Agency, tributed to worries about copper and the global econ- commodities at J.P. Morgan rose 7% in the January-April omy contracted in the first compared with a 2.3% clip in tighter financial conditions. omy,” said Tyler Richey, co-ed- Asset Management. He said he period from a year earlier, less three months of 2018 because the U.S. Higher bond yields tend to itor of investment research still has a positive outlook for than economists’ median esti- of weak private consumption Some analysts see copper’s make copper and other com- publication the Sevens Report. copper this year. “We haven’t mate for a 7.4% gain. China ac- and business investment, put- lackluster performance as an- modities less attractive to “There’s a lot of concerns out had the strikes to the degree counts for roughly half of the ting the brakes on the nation’s other signal that growth mo- some investors, while a stron- there.” the market was worried world’s copper consumption, longest growth streak in 28 mentum has shifted back to ger dollar makes them more Some commodities bulls about.” HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Global Deal Wave Poses a Danger OVERHEARD J.C. Penney

Global corporate deal called off, but those that go bill that will make it easier Can you have your yellow- Is Running making is on fire. The dan- Riding the Wave ahead will do so in the face to block Chinese deals in the cake and eat it too? ger is that a lot of value Value of announced mergers and of rising protectionism in U.S. Back in December, money- Out of Luck ends up getting burned. acquisitions, by bidder’s origin trade and potential tariff Despite these numbers, losing Canadian uranium This year so far has seen wars, which could blow up bankers and investors say miner Cameco saw its shares J.C. Penney’s CEO, Marvin an explosion of bidding ac- $1.0 trillion U.S. companies’ plans for interna- the boom isn’t yet frenzied. jump by nearly one-fifth after Ellison, is jumping ship. In- tivity and U.S. companies 0.8 Rest of world tional growth or cost sav- This year’s volumes may it decided to slash production. vestors who have been hang- pursuing record volumes of Europe ings. have been swelled by U.S. ac- It helped that Cameco’s main ing on to the stock in hope deals at home and overseas. 0.6 They also could disrupt tivity held back from the fi- rival, Kazakhstan’s Kazatom- of a turnaround might want Purchase multiples are ele- the multicountry supply nal quarter of last year when prom, also promised to slash to do the same. 0.4 vated, too, which suggests chains that many companies executives waited to see how output around that time. The Mr. Ellison, who previ- company chiefs are taking 0.2 have built over the past two they would be affected by total cuts by the two big ously spent 12 years at more risks, emboldened by decades. the White House’s plans for players amount to over 25 Home Depot, is being their firms’ high valuations 0 For U.S. companies, a corporate tax rates. million pounds a year. poached from Penney to and earnings prospects. 2000 ’05 ’10 ’15 White House that is unpre- Multiples are elevated, Uranium prices jumped for head Lowe’s, Home Depot’s Many may be rushing into Note: Each year through May 21 dictable both in domestic though: U.S. bidders have a while, but they are now rival. action before rising interest Source: Dealogic competition policy and in in- been valuing targets at about slightly below their November That relatively successful rates make financing more ternational disputes won’t 15 times trailing earnings be- level, according to Ux Consult- Lowe’s thinks he is someone costly or knock confidence billion of deals even before help. fore interest, taxes, deprecia- ing, as there is still plenty of worth poaching is notewor- among equity investors. more deals announced Mon- Deals might not be as- tion and amortization on av- surplus. It wouldn’t help if thy: Despite his talents, he There are also growing risks day, including General Elec- sessed on their own merits erage for the past few years, some other big source of sup- still couldn’t save J.C. Pen- from hard-to-predict politi- tric’s $11 billion rail merger alone but become bargaining according to Thomson Reu- ply comes onto the market, ney. cal interference and battles with Wabtec. The biggest chips in wider negotiations, ters, although that has but it was reported Monday The stock, which sank 12% over global trade rules. jump though has come in particularly with China. dropped to just under 13 that a proposed Virginia mine when the company reported Globally, mergers and ac- U.S. cross-border deals. This could help in some times so far this year. The with around 120 million first-quarter earnings on quisitions announced so far Overseas, U.S. bidders cases—like Qualcomm’s deal highest average multiple hit pounds of potential reserves Thursday, dropped 6% in this year total $1.96 trillion, have struck almost $180 bil- for NXP Semiconductors, before the financial crisis blocked by state authorities Tuesday’s trading. according to Dealogic, more lion worth of deals so far which appears more likely to was 14.5 times in 2005. will get a hearing in the U.S. The company has no im- than 60% ahead of the same this year, which is more than get approval in China if the It won’t take much to Supreme Court. mediate successor lined up. point in 2017 and just behind $90 billion above the same U.S. eases sanctions on push this deal-making wave Cameco’s healthy glow Instead, the CEO’s office will the year-to-date record set period last year and $70 bil- China’s ZTE, a telecommuni- from one that seems a bit faded in an instant with the be run by a committee—not in 2007. lion above the previous year- cations equipment firm. But heated to one that looks very shares falling nearly 7% on a good look at a time when U.S. buyers are leading to-date peak in 2007. it will more likely hurt if risky indeed. Tuesday. decisive action is badly the way with a record $840 These deals could yet be Congress pushes through a —Paul J. Davies needed. The company closed more than 100 stores last year. It has been squeezed by other discount retailers like Wal- U.S.-China Trade Tensions Represent the New Normal mart and Target, which Headlines on trade these put out a separate statement Dealing with the $375 billion North Korea. And Mr. have tightened their inven- days are like leftover pea saying tariffs remain an im- Sticky Problem goods deficit itself also de- Trump’s shoot-from-the-hip tory and improved their se- soup: sometimes hot, some- portant tool to “protect our Total U.S. exports of selected goods fies easy solution. Even if approach creates additional lections through smart part- times chilly, always unsatis- technology.” vs. bilateral deficit with China China were to meaningfully opportunities. Having pub- nerships. fying. What are investors to raise purchases of key U.S. licly promised President Xi Meanwhile, fellow mall- Saturday’s joint Sino-U.S. make of all this? First, don’t $10 billion farm and energy goods as Jinping he would help sanc- based retailer Macy’s re- statement following talks in confuse this latest thaw with the joint statement stipu- tion-busting Chinese tech ported a second consecutive 0 Washington—essentially a anything approaching a reso- lates, U.S. oil and soybean conglomerate ZTE, Mr. solid quarter and close com- Civilian aircraft vague call for larger Chinese lution of the core issues. Tar- –10 exports globally in 2017 to- Trump will now find it diffi- petitor Kohl’s pleased inves- purchases of U.S. goods and iffs may this time be avoided. Crude oil taled less than $50 billion. cult to accomplish any sort tors on Tuesday with its own Soybeans better intellectual property But China’s leaders are well –20 Deficit with China Trade tensions will inevitably of deal without at least lim- set of upbeat quarterly fig- protection—was thin gruel. aware their best hope of get hot again somewhere ited relief for the company. ures. Still, global stocks rallied joining the ranks of wealthy –30 down the line. For investors, the best ap- In other words, the signs Monday following Treasury nations is the continued ab- Still, all-out conflict is proach remains steady as she are becoming clearer that –40 Secretary Steven Mnuchin’s sorption—some might say avoidable—mostly because of goes. On-again, off-again Penney’s problems aren’t in- statement that the U.S. is stealing—of developed-world 2009 ’11 ’13 ’15 ’17 the U.S. side’s divisions on Sino-U.S. trade “wars” in- dustrywide but specific to “putting the trade war on technology. Leveraging low- Source: CEIC goals and strategy. China is a creasingly look like a semi- the retailer. hold.” Just in case the com- cost labor and advanced for- major market for U.S. farm permanent part of the in- It seems less and less plete disarray of the U.S. side eign technology is one of the open to tinkering but un- products, and has already vestment environment. That likely that Penney’s decline wasn’t already clear, U.S. main ways developing coun- likely to cease large-scale used that leverage over Pres- isn’t particularly satisfying, canbereversed. Trade Representative Robert tries experience so-called state support for its high- ident Donald Trump’s base but better than a full-on A CEO leaving with no no- Lighthizer, who has advo- catch-up growth. tech industries—the key with great success. The U.S. stomach flu for markets. tice certainly won’t help. cated a tougher approach, China will therefore be complaint of U.S. hard-liners. needs China’s help with —Nathaniel Taplin —Elizabeth Winkler