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What’s
News
Business & Finance
C ongressional antitrust
investigators are scru-
tinizing plans by Google to
use a new internet proto-
col, concerned that it could
give the company a com-
petitive advantage by mak-
ing it harder for others to
access consumer data. A1
 The U.S. shale boom is
slowing just as shale’s im-
portance in global markets
has reached new highs fol-
lowing an attack on the
heart of Saudi Arabia’s oil
infrastructure. A1
 Boeing’s expected fix
for the 737 MAX will make
its flight-control system
more like an earlier version
of the same system used
on a military tanker jet. B1
 Turmoil at WeWork is
causing the shared-office-
space firm to all but stop
signing new leases, a fresh
blow to New York’s commer-
cial-real-estate market. B1
 Forever 21 filed for bank-
ruptcy protection and plans
to close hundreds of stores
amid a cash crunch. B2
 Food52, a digital bazaar
that sells upscale home
goods, said it sold a major-
ity stake to venture firm
TCG for $83 million. B3
 Concerns that planes
could be targeted in cyber-
attacks are prompting U.S.
officials to re-energize ef-
forts to identify airliners’
vulnerability. B3
 Glaxo reported positive
results in a clinical trial of
an ovarian-cancer treatment
that the company’s oncol-
ogy-research chief said jus-
tified the decision to acquire
cancer specialist Tesaro. B4
World-Wide
 Tens of thousands of
protesters poured onto
Hong Kong’s streets, with
the fiercest battles in weeks
breaking out as demonstra-
tors faced off with police and
shouted anti-China slogans
ahead of Tuesday’s 70th
anniversary of the found-
ing of Communist China. A1
 Antigovernment pro-
tests in Hong Kong are
stirring anti-China senti-
ment in Taiwan. A8
 The whistleblower at
the center of the impeach-
ment probe of Trump will
testify in the House “very
soon,” though in a way
that will protect his iden-
tity, Schiff said. A4
 Musk set forth an acceler-
ated timetable for his pro-
posed megarocket for travel
to Mars, saying it could take
humans on an orbital test
flight as soon as next year. A3
 Florida gun-control advo-
cates are mobilizing to pass a
ban on semiautomatic rifles
with high-capacity magazines
for the first time in a Repub-
lican-controlled state. A3
 Israel’s attorney general
extended Netanyahu’s pre-
trial hearing on allegations
of bribery, fraud and breach
of trust to four days. A6
 Thousands of Russians
rallied in Moscow to de-
mand the release of pro-
testers jailed during a rash
of political demonstrations
this summer. A6
 The party of former
Austrian Chancellor Se-
bastian Kurz won an elec-
tion months after his gov-
ernment collapsed. A6
CONTENTS
Business & Finance B2,5
Business News........B3
Crossword.............. A14
Heard on Street... B10
Life & Arts....... A11-13
Markets...................... B9
s 2019 Dow Jones & Company, Inc.
All Rights Reserved
* * * * * * MONDAY, SEPTEMBER 30, 2019 ~ VOL. CCLXXIV NO. 77 WSJ.com HHHH $4.00
NASDAQ 7939.63 g 2.2% STOXX 600 391.79 g 0.3% 10-YR. TREASURY À 22/32 , yield 1.678% OIL $55.91 g $2.18 EURO $1.0942 YEN 107.93
Thousands Rally in Moscow to Call for Release of Jailed Protesters
Google
Draws
Scrutiny
On Web
Protocol
Investigators examine
whether new standard
YURI KADOBNOV/AGENCE FRANCE-PRESSE/GETTY IMAGES
gives the search giant
a competitive edge
Congressional antitrust in-
vestigators are scrutinizing
plans by Google to use a new
internet protocol because of
concerns that it could give the
company a competitive advan-
tage by making it harder for
others to access consumer data.
In a letter this month, in-
By John D. McKinnon
WAVE OF DISSENT: Demonstrators took to the streets in Moscow on Sunday, calling for the release of protesters who were jailed in Washington
this summer. Opposition leaders said the turnout is a message to President Vladimir Putin that they won’t back down. A6 and Robert McMillan
in San Francisco
vestigators for the House Ju-
.
U.S. Shale Boom Slows Down
diciary Committee asked
ly
Google for information about
its “decision regarding
whether to adopt or promote
on the adoption” of the protocol,
Amid Worries Over Oil Supply which the Alphabet Inc. com-
pany said is aimed at improv-
ing internet security.
House investigators are also
us l,
asking whether data collected
BY CHRISTOPHER M. MATTHEWS when shale production fell due track to hit an average of 12.2 the Dallas Federal Reserve. or processed through the new
al a
AND REBECCA ELLIOTT
e
to a global price collapse, the million barrels a day this year, “We’re getting closer to protocol will be used by
slowdown this year is driven up from last year’s average of peak production and we are Google for any commercial
The U.S. shale boom is slow- partly by core operational is- 11 million barrels a day, the En- reaching the peak of the gen- purposes, according to the
ci on
ing as innovation plateaus— sues, including wells producing ergy Department said earlier eral physics of these wells,” Sept. 13 letter.
and just when shale’s impor- less than expected after being this month. said James West, a managing The Justice Department is
tance in global markets has drilled too close to one an- But because output grew so director at Investment bank aware of concerns over the
reached new highs following other, and sweet spots running quickly last year—from an av- Evercore ISI. protocol change and has re-
an attack on the heart of Saudi out sooner than anticipated. erage of 10 million barrels a U.S. shale oil production cently received complaints, ac-
er rs
Arabia’s oil infrastructure. The challenges raise the day in January to 12 million now accounts for about 8 mil- cording to a person familiar
U.S. oil production increased prospect that the technological barrels a day in December— lion barrels a day, or about 10% with the matter.
by less than 1% during the first and engineering advances that that implies limited growth of oil world-wide, significantly The new standard would
six months of the year, accord- have allowed shale companies throughout 2019. Activity has boosting global supplies. It has encrypt internet traffic to im-
m e
ing to the Energy Department, to unlock record amounts of oil slowed recently and employ- helped protect the U.S. and the prove security, which could
down from nearly 7% growth and gas from rock formations ment has fallen in some of the world from geopolitical supply help prevent hackers from
over the same period last year. have begun to level off. hottest U.S. oil regions, accord- shocks, such as this month’s snooping on websites, and
m rp
Unlike several years ago, U.S. oil production is on ing to a September report by Please turn to page A2 Please turn to page A6
Online Scams Lure Consumers
Repo Market Turmoil Tests
co Fo
Scammers are far more likely to succeed in engaging and stealing
money from potential targets by using websites and social media
than with phone calls and emails, a consumer study found. B4
Share of respondents who engaged, lost money,
John Williams’s N.Y. Fed
by type of contact
Phone/voice mail
Engaged Some ask why the bank didn’t act sooner; ‘the Fed at its best,’ he says.
Lost money
BY NICK TIMIRAOS put to the test.
Email After years of calm, the New York Fed is
John Williams, a Ph.D. economist and Fed- tamping down an unexpected bout of turbu-
eral Reserve lifer, made his mark inside the lence in money markets that caught officials
n-
Website central bank with his deep knowledge of in- and investors off guard this month. A sud-
terest-rate theory and a solid record as a den shortage of cash caused interest rates to
policy maker and communicator. spike unexpectedly on very short-term loans
Social media When Mr. Williams won a big promotion banks make to each other overnight, called
no
to Federal Reserve Bank of New York presi- repurchase or “repo” agreements.
dent last year, senior officials didn’t see his The Fed’s response, flooding the system
Postal mail lack of financial-markets experience as a lia- with temporary funding, soothed markets.
bility. He was so new to the markets side of But some economists and financial analysts
0% 25 50 75 100 the job that, in his first month in New York, say the Fed was caught flat-footed and slow
Note: Based on 1,408 interviews of some 90,000 people who filed reports between 2015 and 2018.
he received an hourlong tutorial on using a to respond to dysfunction that threatened to
Source: Better Business Bureau, Finra Investor Education Foundation Bloomberg data terminal, Wall Street’s ubiq- jam the transmission of central-bank policy
uitous trading-desk tool. decisions to the broader economy.
Now Mr. Williams’s market savvy is being Please turn to page A10
Street Battles Erupt
Fitness Devotees Are Getting INSIDE
Stoned to Stay Toned
At Hong Kong Protests
i i i
ANDRE D. WAGNER FOR WSJ
Pot helps relieve the pain and boredom,
BY NATASHA KHAN tions, appealing to the global
they say. Be careful you don’t fall asleep. AND CHUN HAN WONG community to stand with the
city’s antigovernment move-
HONG KONG—Tens of thou- ment. Rallies were taking place
BY ROB COPELAND and fitness junkies are making sands of protesters poured or planned in dozens of cities
weed a part of their workout onto Hong Kong’s streets on around the world in solidarity
Pauline Nordin is a trainer, routines. The burning ques- Sunday, with the fiercest bat- with Hong Kong’s protesters. LIFE & ARTS
model and licensed nutrition- tion: Are they onto some- tles in weeks breaking out as Hong Kong is in its 17th A Somali-born
ist. Earlier this year, she re- thing—or just on something? demonstrators faced off with straight weekend of demon-
placed the frozen peas in her Many workout fiends insist police and shouted anti-party strations, originally sparked by
teenager is the fashion
freezer with 2,000 cookies. that a few drags add an extra slogans ahead of Tuesday’s opposition to a proposed ex- industry’s new It
The shortbread treats are hit to their workouts. They say 70th anniversary of the found- tradition bill that would have girl A11
laden with canna- it helps them ignore ing of Communist China. allowed suspects to be tried in
bis—the equivalent pain, stem off bore- The protesters had planned the mainland’s more opaque le-
of about 1,500 dom and concen- to march to the government gal system. Although the city’s
joints. Ms. Nordin, trate on small mus- headquarters in the center of government formally withdrew
Opinion.............. A15-17 37 years old, says cle groups that the city under the theme the bill this month, the con-
Outlook....................... A2
AFP/GETTY IMAGES
Sports....................... A14 she can’t recover require repetitive “Global Anti-Totalitarianism tinuing protest movement,
Technology............... B4 from her punishing movements. Rally.” The police broke up the which has widened to include
U.S. News............. A2-4 workouts without Eleven states march at about 4 p.m., an hour other demands, has revealed
Weather................... A14
World News..... A6,8-9
them. She eats two have legalized mari- or so after it began, engaging deep-seated fears of China’s
each night before juana for adults, the protesters in urban street tightening rule in the city.
turning in. Workout aid? while twice as many battles in several districts The sustained size of the
> “My lifestyle is a allow it to treat cer- amid clouds of tear gas and movement and the intense vio- BUSINESS & FINANCE
Ferrari and my body is a well- tain medical conditions. Can- bursts of rubber bullets. They lence of the front-line confron- Joanna Stern reviews
tuned machine,” she says. “I ada last year legalized it coun- made multiple arrests. tations with police threaten to
would never do something de- trywide. Protesters waved flags from Please turn to page A8
the new Apple Watch,
structive.” In May, a nonprofit repre- different countries and inter- and whether you need
As marijuana moves into senting more than 100 former national institutions, including  Taiwanese demonstrate to upgrade B1
the mainstream, more athletes Please turn to page A10 the U.S. and the United Na- solidarity....................................... A8
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A2 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

U.S. NEWS
THE OUTLOOK | By Anna Isaac
ECONOMIC

Recession Sign Might Be on the Blink CALENDAR

Monday: China will release
its official purchasing managers
index right before the weeklong

A
widely watched U.S. Treasury yield has sustained a False positives for recession have long been a problem for the yields in Europe already in re- National Day holiday. Economists
recession signal has drop below the three-month U.K.'s yield curve. cord-low or negative territory expect the manufacturing PMI
been blinking red for T-bill since the 1970s, a reces- even before a recession hits, to inch up to 49.6 this month
10-year minus three-month 10-year minus two-year
months now. Yet the perfor- sion has followed. There have investors may no longer be- from 49.5 at the end of August.
mance of that gauge, the been no false positives. Spreads on U.S. Treasury yields lieve European bonds can act Tuesday: The Institute for
yield curve, in Britain sug- In the U.K., a decline in the as a hedge against falling eq- Supply Management publishes
5 pct. points U.S. RECESSIONS
gests it is less worrisome yield on 10-year gilts (as Brit- uity prices, said Scott Theil, its monthly reading on U.S. man-
than the American experi- ish government bonds are managing director and deputy ufacturing activity, which de-
4
ence indicates. known) below the 2-year has chief for fixed-income invest- clined in August for the first
This signal is a bond-mar- foretold the last three reces- ment at BlackRock. They may time in three years. The Wall
ket phenomenon called an in- sions in that country. (Yield 3 be buying U.S. Treasurys for Street Journal consensus fore-
verted yield curve, which curve analysis in Britain fo- their better returns, helping cast has the index rising to 50.2
means long-term government- cuses on the two-year gilt on 2 nudge their yields below in September from 49.1 in Au-
bond yields are below short- the short end.) short-term rates. gust.
term interest rates. Since the The U.K. yield curve also 1 Wednesday: Automatic Data

T
1970s, it has appeared before inverted in the mid- and late hat’s not all. The com- Processing Inc. produces a
every recession. But in Brit- 1980s with no recession oc- 0 pensation investors re- sneak peek at U.S. private-sector
ain, the yield curve has in- curring soon after. It was in- ceive for tying up their hiring two days before the Labor
verted without a recession, verted for the better part of –1 money in long- instead short- Department’s official jobs report.
for reasons that might be at 1998 to 2002. Recessions hit 1982 ’90 2000 ’10 term bonds, is called the term Economists expect the data to
work in the U.S. bond market elsewhere, including the U.S. premium. If investors see lit- show 138,000 positions were
today. Indeed, it might explain and Russia, but the U.K. econ- Spreads on U.K. gilt yields tle risk of inflation climbing filled in September, consistent
why other data, such as the omy held up and even meaningfully in the future, with forecasts for another solid
3 pct. points U.K. RECESSIONS
stock market, aren’t sending boomed for some of that time, they may accept a low or even month for job growth.
similarly downbeat signals. helping to earn the “Cool Bri- negative term premium. That Thursday: ISM releases its
2
Short-term rates are tannia” nickname. translates into lower bond nonmanufacturing indicator,
mostly under the control of These false positives illus- yields and more frequent in- providing a window into U.S. ser-
1
the central bank, while long- trate that factors other than versions of the yield curve. vices activity in September.
term bond yields are driven recession fears or domestic From the 1990s until the fi- Economists expect the index to
0
by investors. Normally, long monetary policy can trigger nancial crisis, the U.K. term remain solidly in expansion,
term rates tend to be higher curve inversion, said Andrew premium has tended to be though falling slightly to 55.2
than short ones, to compen- Wishart, U.K. economist at –1 lower than in the U.S. Some from 56.4 in August.
sate investors for tying up Capital Economics. economists say the Bank of Investors will also be watch-
their money for more time, –2 England’s inflation targeting, ing official data on August fac-

N
with all the additional uncer- ew rules imposed on
tainty that involves in terms pension funds in the
of inflation, economic growth U.K. after 1997 pushed
and monetary policy. them toward bonds and away
But when investors believe from large holdings of stocks.
initiated in 1992, reduced the tory orders, which are expected
–3 risk of rampant inflation and to rise a modest 0.1% from July.
1982 ’90 2000 ’10 sudden increases in interest Friday: The U.S. Labor De-
Note: Monthly figures through Sept. 25 rates, thereby reducing the partment releases its Septem-
Sources: Federal Reserve Bank of St. Louis (Treasury yields); Refinitiv (gilt yields) term premium. In the U.S., the ber employment report, the

.
there’s a recession coming, Similar measures affected in- term premium has since fol- most closely followed economic

that relationship can flip. surers. As a result, demand
They flee to the safety of for gilts rose, while at the
bonds over riskier invest- same time supply shrank as
ments such as stocks. When the government had relatively on
demand pushes the price of low deficits and therefore less
bonds up, their yields go need to issue gilts.
down. Investors, in these cir- Some economists and fi-
cumstances, also expect the nanciers say new post-finan-
us l,
on institutions at the same
time many central banks were
buying bonds as part of so-
called quantitative easing to
stimulate growth meant more
parties “fishing in the same
pool” for long-term bonds,
said Andrew Goodwin, chief
With recessions elsewhere in
2001, foreign central banks
cut rates, sending their bond
yields down. Investors looked
to the U.K., where rates were
higher. Their buying weighed
on gilt yields, inverting the
yield curve.
ly
lowed its U.K. counterpart.
While the British experi-
ence weakens the reliability of
a yield-curve inversion as a
recession indicator, it doesn’t
make it a useless bellwether.
It can indicate a slowdown
even when that doesn’t de-
indicator of the month. With the
China trade war and the slow-
down in Europe weighing on ex-
ports, manufacturing and busi-
ness investment, consumers
have been the sturdiest pillar
supporting economic growth in
the U.S. this year. Economists

central bank to cut interest cial crisis regulations have
rates to try to counteract a steered banks and insurers
al a
e
weak economy. Such a step into holding more government
would restore the normal re- bonds, which regulators view
lationship. as less risky than other assets.
ci on
U.K. economist at Oxford Eco-
nomics.
External forces also hold
sway in the U.K. “Global bond
yields pull gilt yields around
Some of those same factors
could be at work in the U.S.
now. Investors typically ex-
pect government bonds to
rise in value during a down-
velop into a recession, as was
the case in 2000. Americans
shouldn’t ignore the inverted
yield curve: Even if it doesn’t
presage a storm, bad weather
are expecting a decent report:
nonfarm payrolls up 140,000,
the unemployment rate steady
at 3.7%, and average hourly
earnings up 3.3% from Septem-

Every time the U.S. 10-year Putting these regulations with them,” said Mr. Wishart. turn as yields decline. With may still be on the way. ber 2018.

U.S. WATCH
Boom in U.S. oil production is still increasing, but at a slower
rate and new shale wells are producing less in
25%
er rs

Shale Oil
their first 90 days this year. MARYLAND the suspect is believed to have
caused more than $100,000 in
U.S. crude-oil production growth,
20 Witnesses Sought damage to any building contain-

Diminishes
m e

change from previous year

In Attack, Shooting ing five or more businesses, ac-
cording to a statement issued
Authorities in Maryland said by Schaumburg police. No fed-
m rp

they hope to hear from wit- eral charges have been brought
Continued from Page One 15 nesses who saw police shoot a against Mr. Garcia.
attack on Saudi Arabian oil fa- knife-wielding man after he at- Investigators said they be-
cilities, which crippled the tacked people at an outdoor lieve Mr. Garcia acted alone, but
world’s largest oil exporter. shopping mall. they haven’t determined a mo-
co Fo

Some forecasters believe The Baltimore County Police tive. Mr. Garcia was released to
shale still has many years of 10 Average daily production during first on Sunday identified 31-year-old police custody on Friday from a
growth ahead. 90 days for new wells in major Jamaal Ramone Taylor of Balti- behavioral health facility.
Consultant Rystad Energy shale basins more as the man responsible for Defense attorney Amil Alkass
estimates shale production will 557 the stabbing spree at the Hunt said Mr. Garcia has no criminal
peak at about 14.5 million bar- 503 497 Valley Towne Centre on Satur- history. He also noted his client
5
rels a day in around 2030. The 416 t11% day afternoon. takes psychiatric medications
growth trajectory could change 382 Mr. Taylor stabbed four peo- and is being treated for bipolar
due to factors such as higher barrels ple with a folding knife and beat disorder and paranoid schizo-
prices and consolidation in the a day a fifth person before officers phrenia.
shale sector. shot and killed him, police said. “He’s definitely not a terror-
0
One factor that could lead Officers fired after Mr. Taylor re- ist,” Mr. Alkass said.
growth to continue is the in- fused repeated commands to —Associated Press
creasing shale footprint of ma- drop the knife, police said.
n-

jor oil companies such as 2015 ’16 ’17 ’18 ’19* All five victims suffered inju- GEORGIA
Exxon Mobil Corp. and Chev- –5 ries that weren’t life-threatening.
ron Corp. They are now among —Associated Press Man Gets 140 Years
2017 ’18 ’19
the fastest-growing producers In Prison for Arson
no

in the Permian Basin of Texas *Through June ILLINOIS

and New Mexico, investing Sources: U.S. Energy Department (oil production); Raymond James, Enverus (new wells) A man who crashed his vehi-
heavily in factory-style shale Accused Mall Crash cle into a Georgia restaurant
production. rel. A $10 price increase would about 14% more than last year, than their predecessors. The Driver Is Denied Bail where he once worked and set it
But growth also could slow lift production by only 200,000 according to the Energy Infor- wells initially were prolific. on fire amid the lunchtime rush
if financial support from Wall barrels a day, much slower mation Administration. Hess wells that began produc- A man accused of driving an has been convicted of arson.
Street tightens further and oil production growth than 2018. Meanwhile, production in ing this year in North Dakota SUV through a suburban Chi- Jurors in Richmond County
prices continue to hover The slower rate of new the first 90 days of an average generated an average of about cago shopping mall was charged Superior Court on Friday found
around $60 a barrel—factors wells means companies will shale well, its most productive 19,600 barrels of oil each in and ordered held without bond 37-year-old Roland Croyle guilty
that are leading many small need to wring more out of period, declined by 10% in the their first month, a company on Sunday. but mentally ill on 24 counts of
and midsize shale producers to each well just to sustain cur- record for the region, accord- Police in Schaumburg, Ill., said arson, aggravated assault and
pull back and emphasize prof- rent production, let alone in- ing to data from ShaleProfile, the Cook County state’s attorney criminal damage to property in
itability. That is making it crease it. an industry analytics platform. had authorized a state terrorism the 2017 blaze.
more challenging for the com- But a growing body of data
Fewer new wells But as the 2019 wells aged, charge against Javier Garcia, 22 Judge J. Wade Padgett sen-
panies to drill new wells as indicates the production gains means producers their average output eventually years old, of Palatine, Ill. Mr. Gar- tenced Mr. Croyle to 140 years
rapidly as they did previously. from technological advances fell below that of the com- cia also was charged with felony imprisonment.
While the attacks on Saudi that many drillers have touted
must wring more pany’s 2017 and 2018 wells. criminal damage to property. Mr. Croyle crashed into the
facilities caused oil prices to are leveling off, and older shale out of each one. This year’s wells generated an Assistant Cook County Twin Peaks restaurant, officials
spike this month, even a sus- fields may have less oil left average of about 82,000 bar- State’s Attorney Annalee Mc- said, then threw buckets of fuel,
tained price increase would than originally thought. rels of oil in their first five Glone said during the bond hear- propane tanks and fuel-soaked
have a limited impact on shale Gains in oil production from months, 12% below wells that ing that on Sept. 20, Mr. Garcia blankets inside and torched it.
production because investors U.S. onshore drilling rigs are first half of the year compared began producing in 2018 and drove his SUV through a store He had worked there before be-
are demanding restraint, ac- declining rapidly, federal data with the 2018 average, accord- 16% below 2017 wells. entrance into the common area ing fired for drinking on the job.
cording to IHS Markit. show. ing to research by Raymond A Hess spokeswoman said of Woodfield Mall, weaving in Defense attorney Kelly Wil-
The consultant estimates In December, drilling rigs James. the group of wells isn’t repre- and out of kiosks as shoppers liamson said Mr. Croyle was de-
U.S. shale production would helped extract 25% more oil In North Dakota, newer sentative of the company’s ran for cover. No one was struck. pressed and wanted to end his
grow by 480,000 barrels a day than they had a year prior. In shale wells drilled by Hess North Dakota inventory and Under Illinois law, the Class X life.
in 2020 at a price of $62 a bar- August, they were producing Corp. are producing less oil noted that the company ex- felony of terrorism can apply if —Associated Press
pects this year’s production to
come in at the upper end of
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660) CORRECTIONS  guidance.
Across North Dakota’s Bak-
AMPLIFICATIONS
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
REBECCA BENSON/THE BLADE/ASSOCIATED PRESS

Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
ken Shale region, well produc-
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tivity hasn’t improved since
Periodicals postage paid at New York, N.Y., and other mailing offices. late 2017, according to
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Our newspapers are 100% sourced from sustainably certified mills.
That means some are drill-
Readers can alert The Wall Street ing bigger and often more ex- PINK FLASH: Darlene Rose, Drew Reynolds, 2, and Dionna Rose
Journal to any errors in news articles
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS by emailing wsjcontact@wsj.com or pensive wells to recover a sim- cheered on runners and walkers during the Susan G. Komen
by calling 888-410-2667. ilar amount of oil. Northwest Ohio Race for the Cure in Toledo on Sunday.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * Monday, September 30, 2019 | A3

U.S. NEWS

New Push for

Gun Control
In Florida

RION SANDERS/THE GREAT FALLS TRIBUNE/ASSOCIATED PRESS

BY ARIAN CAMPO-FLORES Some bans have failed to
AND ZUSHA ELINSON significantly dent sales of
AR-15-style rifles because
Gun-control advocates in they were written to outlaw
Florida are mobilizing behind only specific features, such as
an ambitious aim: to pass a pistol grips and flash sup-
ban on semiautomatic rifles pressors. Gun makers have
with high-capacity magazines gotten around those restric-
for the first time in a Republi- tions by removing the prohib-
can-controlled state. ited features. In California,
Promoting the effort are the accused attacker at a syn-
survivors and relatives of vic- agogue outside San Diego in
tims of the 2018 school shoot- April used an AR-15-style rifle
ing in Parkland, Fla., that killed that was legal in the state.
17 people and the 2016 Pulse The Florida initiative takes Forecasters expected snowfall of up to 4 feet in some places. Above, undeterred fans at a Saturday football game in Centerville, Mont.
nightclub shooting in Orlando, a simpler approach, propos-

Early Snowstorm Freezes Montana

Fla., that killed 49. A political ing to outlaw all new semiau-
committee they formed, Ban tomatic rifles and shotguns
Assault Weapons Now, is push- capable of holding more than
ing to meet a February dead- 10 rounds of ammunition in
line to gather enough signa- either a fixed or detachable BY TAWNELL D. HOBBS The weather service fore- ing on leaves took down some asked drivers to be careful.
tures to put a proposed state magazine. The language is di- cast snowfall of up to 4 feet in trees, pushing into power lines Montana Gov. Steve Bullock
constitutional amendment on rected at semiautomatic rifles An early winter storm in some locations before the and triggering power outages. declared a winter storm emer-
the 2020 ballot. like AK-47s and AR-15s. Most Montana brought high winds storm moves out of the area Wheat crops are expected to gency on Sunday. The Mon-
“Passing a ban on assault such rifles are sold with 30- and 3 feet of snow in some ar- late Sunday or early Monday. be lost and livestock that had tana State Emergency Coordi-
weapons in Florida will set an round magazines, and some eas, downing trees and power A blizzard warning was in been moved to higher eleva- nation Center is working with
example that it is absolutely mass killers have used 100- lines and making for treacher- effect through Sunday evening tions during the summer will all counties in the storm’s
possible for other states to fol- round magazines. ous driving conditions. for some areas, and residents likely be stranded, Mr. Nutter path to identify critical needs,
low suit, no matter their politi- “All rifles are particularly The snow started falling were told not to travel as said. He described some of the including emergency food, wa-
cal affiliation,” said Al Hoff- lethal, but what allows a Friday night across the north widespread blowing snow roads as treacherous. ter and shelter services.
man, a Republican donor and killer to transform into a kill- central region of the state and could significantly reduce visi- The city of Choteau, north- “With an unprecedented
one of the founders of Ameri- ing machine is the ability to by Sunday morning had bility. Winds were gusting as west of Great Falls, told resi- winter storm throwing our

.
cans for Gun Safety Now, use a high-capacity detach- brought 14 inches to Great high as 55 miles an hour. dents on Saturday to stay state a surprise in September,

ly
which has contributed able magazine and change a Falls, Mont., breaking the pre- On Sunday morning, the home. “There are a lot of state and local governments
$260,000 to the campaign. magazine quickly,” said David vious September record of 13.2 temperature in Great Falls was downed power lines and are working closely together
It faces significant obsta- Chipman, a senior policy ad- inches in 1934, said Paul Nut- about 30 degrees, with a wind downed trees which is creat- to protect the health and
cles. The signature-gathering viser at the Giffords Law Cen- onter, senior meteorologist with chill of 19. Following the ing a very dangerous situa- safety of Montanans and our
process in Florida is onerous, ter to Prevent Gun Violence, a the National Weather Service storm, the weather service ex- tion,” a post on the city’s top priority is making sure
and the ballot language must gun-control group. in Great Falls. pects temperatures to drop to Facebook page read. that happens,” Gov. Bullock
be approved by a state Su- “They seem to be the “This is a record-setting, the teens on Monday night— Montana State Highway Pa- said. “Montanans should heed
preme Court that leans conser- weapon of choice in these perhaps generationally, snow- down from an average low in trol Trooper Amanda Villa all warnings from state and lo-
us l,

vative. mass shootings,” said Patricia fall event,” he said. “And it is the low 40s for September. posted a picture of an over- cal officials, travel safely, and
Florida also has historically Brigham, president of the still snowing.” Gusty winds and ice form- turned car on Twitter, and be cautious during this time.”
al a
e
supported few gun restrictions League of Women Voters of
and is home to one of the Na- Florida and a member of the
tional Rifle Association’s most Ban Assault Weapons Now
Musk’s Mars Rocket Draws NASA Rebuke
ci on

powerful lobbyists, Marion committee. Limiting their sale

Hammer. could save lives, she said.
Semiautomatic rifles like Ms. Hammer, the NRA lob-
the AR-15 and AK-47 have been byist, is galvanizing opposi- BY ANDY PASZTOR national space station. employ. Twitter that he was looking
used in many of the deadliest tion to the effort, writing in a Mr. Musk’s Mars-oriented Over the years, both sup- forward to the announcement.
er rs

mass shootings in the U.S., in- recent note to members,
cluding in Parkland, Orlando “Your Second Amendment
and Las Vegas, where a gun- rights are in danger, PERIOD.”
man opened fire on a concert Ms. Hammer didn’t respond
m e
Space entrepreneur Elon project includes a stainless- porters and critics have ac- “In the meantime,” the NASA
Musk has stoked excitement steel rocket, called Starship, knowledged Mr. Musk’s time chief said SpaceX’s commer-
about accelerated development reaching some 40 stories tall lines often are intended more cial-crew capsule to take as-
of private deep-space vehi- when mated with a booster and as tools to push employees and tronauts to the orbiting inter-

crowd in 2017, killing 58 peo- to requests to comment. cles—while provoking conster- featuring fins at the nose as managers than firm or reliable national laboratory “is years
ple. They also have figured in Republican state Rep. nation inside NASA—by pro- well as near the engine nozzles deadlines. behind schedule” and “NASA
recent shootings, like one in El James Grant, chairman of the jecting his proposed rocket at the bottom. The design, in- expects to see the same level of
m rp

Paso, Texas, in August that criminal justice subcommittee
killed 22. in the Florida House, said the
In response, several Demo- measure’s language is so
cratic presidential candidates broad that it would end up
say they want to renew the outlawing sporting guns. He
co Fo
targeting Mars could take hu-
mans on an orbital test flight
as soon as next year.
Mr. Musk’s announcement
over the weekend sketched out
cluding in-space refueling ca-
pabilities, is an evolution of
preliminary versions Mr.
Musk’s Space Exploration
Technologies Corp., or SpaceX,
‘It’s time to deliver,’
NASA chief James
Bridenstine said of
enthusiasm focused on the in-
vestments of the taxpayers.”
Mr. Bridenstine added: “It’s
time to deliver.”
SpaceX’s human-rated

Federal Assault Weapons Ban said that while he believes a superambitious timetable for has unveiled in recent years, Dragon capsule is expected to
that was in place from 1994 to mass shootings require a pol- building and testing a privately with more specifics on timing. the crewed capsule. go into service in 2020—more
2004. Governors in Rhode Is- icy response, he opposes funded, behemoth rocket in- On Saturday, Mr. Musk laid than three years behind sched-
land and Virginia have been criminalizing firearms. tended to take people to the out a rapid timetable, sped up ule—but potentially barely
promoting state bans. “We can make Florida moon and eventually to Mars. from his earlier projections months ahead of Starship’s
Seven Democratic-domi- safer without taking liberty But even before details and faster than any major This time, however, the pur- possible initial orbital test mis-
nated states, including Califor- from law-abiding citizens,” he emerged, the head of the Na- space endeavor in memory. ported timetable elicited an sion with a crew.
nia, Connecticut and New York, said. tional Aeronautics and Space The hurry-up approach is par- uncharacteristically sharp re- During a freewheeling pre-
already outlaw semiautomatic A Quinnipiac poll in June Administration appeared to ticularly unusual considering sponse from James Briden- sentation and subsequent ques-
guns with certain assault-style found that 59% of Florida vot- publicly rebuke Mr. Musk for the multibillion-dollar project stine, the administrator of tion-and-answer session, Mr.
features. Those states, along ers supported a ban on the extensive delays on a techni- hasn’t yet flown a single full- NASA, one of SpaceX’s biggest Musk said the company has
with two others, also restrict sale of guns classified as as- cally less-ambitious federal ef- scale prototype and its engi- customers. Before the SpaceX earmarked the vast majority of
high-capacity magazines, sault weapons. Amendments fort, much closer to Earth, neers haven’t publicly dis- event for media and employees its efforts delivering on exist-
which allow shooters to fire in Florida need 60% voter aimed at transporting U.S. as- closed what type of life- at its Texas facility, Mr. Briden- ing programs, especially the
n-

more bullets without reloading. support to pass. tronauts to and from the inter- support systems they will stine said in a message on agency’s crewed capsule.

Group Allows More Aggressive College Recruiting

no

BY MELISSA KORN the changes will have on

schools’ financial aid budgets,
LOUISVILLE, Ky.—College as they consider setting aside
counselors and admissions of- funds for late offers or counter
ficers voted to scrap elements offers, and warned aggressive
of their ethics code that the moves on that front could
Justice Department said sti- lead, for some institutions, to R AISING THE BAR OF LUMINOSIT Y,
fled competition, under threat “mutually assured destruc- DEEP UNDER WATER.
JIM LO SCALZO/EPA/SHUTTERSTOCK

of legal action from the fed- tion” as discount rates creep

eral government. higher.
The changes will now allow Other admissions officers
schools to offer incentives like said schools could raise their
extra financial aid for binding deposit requirements to make
early-decision applicants, let it harder for families to walk
them more aggressively pur- away, while students may pick
sue new undergraduates who colleges for the wrong rea-
already committed to other sons, like special perks for
schools and recruit as transfer College admissions officers have faced pressure from the Justice committing early, rather than
students applicants who were Department. Above, a tour of Georgetown University. focusing on fit.
admitted but chose to enroll Despite the vote, NACAC of-
elsewhere. ethics code is unrelated to the respect that choice and cease ficials say they still expect the
Delegates from the National Varsity Blues admissions scan- recruiting them.” Justice Department to file a
Association for College Admis- dal, though that was a regular Cutting that line opens the complaint and consent decree
sion Counseling, which repre- topic of discussion at the con- door for schools to continue after the conference wraps.
sents roughly 1,700 colleges ference as thousands of admis- dangling more financial-aid There would be a period of
and universities, 2,400 sec- sions-industry professionals packages to woo students who public comment, and then a
ondary schools and 1,700 inde- descended on Louisville. accepted offers elsewhere. federal court would determine
pendent college counselors, NACAC officials said the That could help students whether to issue a formal
agreed Saturday to change the group had little choice but to lower their college costs, but court order to enforce the de-
code. The full membership make the changes, given the could also leave schools strug- cree and require that the code ENGINEER HYDROCARBON
voted later in the day to give financial burden of a continu- gling to predict enrollment be- of ethics be edited. SUBMARINE WARFARE CHRONOGRAPH
its board special authority to ing investigation and threat of cause students could walk While individual member
make additional changes to litigation. away from deposits. schools could then make their Revolutionary micro gas lights
the group’s bylaws in extraor- Specifically, the group de- The final provision to be own determinations about
Water resistant to 300m/1000ft
dinary legal circumstances. leted language barring col- deleted had barred schools things like incentives for
The Justice Department leges from offering incentives from soliciting transfer appli- early-decision applicants and Amortiser® anti-shock patented system
opened an investigation into exclusively for students who cations from the prior year’s late recruiting, NACAC offi- Crown protection patented system
the group in November 2017, apply through binding early freshman applicant pool. cials warned in a letter to
expressing concern that decision programs, like special “It’s a seismic moment,” members last month that “any Bellman’s, Manchester, NH 603-625-4653
changes to the ethics code ad- housing or financial-aid pack- said Ken Anselment, dean of agreement or understanding
Joseph Gann Jewelers, Boston, MA 617-426-4932
opted that year violated anti- ages. It eliminated a section admissions and financial aid at among separate institutions to
trust laws and limited stu- that discouraged pursuing stu- Lawrence University in Apple- continue the conduct prohib- Little Treasury Jewelers, Gambrills, MD 410-721-7100
dents’ opportunities to get the dents after May 1, which ton, Wis. “We can’t keep doing ited by the consent decree
W W W.BALLWATCH.COM | 888- 660 - 0691
best price on a college educa- stated that “once students things the way we have.” may result in an antitrust in-
tion. have committed themselves to Mr. Anselment said he wor- vestigation of those institu-
The investigation into the a college, other colleges must ried about a “corrosive effect” tions.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A4 | Monday, September 30, 2019 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ** THE WALL STREET JOURNAL.

U.S. NEWS

Whistleblower Expected to Testify Soon

Leader of House probe taking all the precautions” to
protect his identity, he added.
into Trump’s Ukraine The chairman said he hasn’t
call says the man’s set a timetable for concluding
the investigation into Mr.
identity will be guarded Trump, a Republican up for re-
election next year.
BY JOSH MITCHELL A lawyer for the whistle-
blower said talks with lawmak-
WASHINGTON—The whistle- ers are ongoing. “We continue
blower at the center of the im- to work w/both parties in
peachment investigation of House & Senate and we under-
President Trump will testify in stand all agree that protecting
the House “very soon,” though whistleblower’s identity is par-
in a way that will protect his amount,” the lawyer, Mark S.
identity, the Democrat leading Zaid, wrote on Twitter.
the probe said Sunday. Any meeting with lawmakers
The whistleblower, whose would likely need to take place
identity hasn’t been made pub- in a secure room—known as a
lic, is a man who works for the Sensitive Compartmented In-
Central Intelligence Agency, formation Facility, or SCIF—
The Wall Street Journal con- given the sensitivity of the in-
firmed last week. The House is formation at issue, according to
waiting for the whistleblower’s national security lawyers.
attorneys to receive security The whistleblower’s com-
clearances, said Rep. Adam plaint, released last week, fo-
Schiff of California, the House cuses on a July 25 phone call
Intelligence Committee chair- between Mr. Trump and the
man. Ukrainian president, Volodymyr
“We’ll get the unfiltered tes- Zelensky. The complaint alleges
timony of that whistleblower,” that Mr. Trump sought to use
Mr. Schiff said on ABC. “We are the powers of his office to push
Ukraine to investigate Demo-
cratic rival Joe Biden, and that
White House officials acted to
conceal evidence of the presi-
dent’s actions.
Mr. Trump struck out at Mr.
Schiff on Twitter Sunday eve-
ning, saying the chairman
falsely attributed words to him
during Mr. Schiff’s opening re-
marks at the Intelligence Com-
mittee’s Thursday hearing with
acting Director of National In-
telligence Joseph Maguire.
“His lies were made in per-
haps the most blatant and sin-
ister manner ever seen in the
great Chamber. He wrote down
and read terrible things, then
said it was from the mouth of
the President of the United
States. I want Schiff questioned
at the highest level for Fraud &
Treason,” Mr. Trump wrote.
Mr. Trump also said he de-
served to confront not only the
whistleblower, who didn’t have
firsthand knowledge of the tele-
phone call with Mr. Zelensky,
“but also the person who ille-
gally gave this information,
which was largely incorrect, to
the ‘Whistleblower.’ Was this “I think he followed the law ev-
person SPYING on the U.S. ery step of the way.”
President? Big Consequences!” Mr. Trump’s former home-
The whistleblower com- land security adviser Tom
plaint’s description of the call Bossert on Sunday denounced
with Mr. Zelensky aligned the president for bringing up a
closely with the content of the debunked conspiracy theory
reconstructed transcript re- during the call. Mr. Trump
leased by the White House. The asked the Ukrainian leader to
complaint said it drew from do another favor for the U.S.
related to the U.S.-based cyber-
security firm CrowdStrike,
which conducted forensic anal-
President Trump ysis of the Democratic National
said on Twitter he Committee’s computer network
after it was hacked in 2016.
deserves to confront CrowdStrike concluded the
the whistleblower. hack was carried out by Rus-
sian intelligence officers, a find-
ing corroborated by U.S. intelli-
gence agencies and special
testimonials of more than a counsel Robert Mueller’s inves-
half-dozen unidentified U.S. of- tigation into Russian interfer-
ficials who expressed concern ence into the 2016 election. But
about Mr. Trump’s conduct. Mr. Trump has repeatedly cast
Mr. Schiff has said his com- doubt on Russian involvement,
ments at the committee hear- and said in April 2017 that
ing were “at least in part, par- CrowdStrike’s findings may not
ody.” be credible because the com-
“I think the whistleblower pany is “Ukrainian-based,”
did the right thing,” Mr. Ma- which is false.
guire said during the hearing. “The DNC server and that
conspiracy theory has got to go,
they have to stop with that,”
Mr. Bossert, the former Trump
adviser, said on ABC. “It cannot
be repeated in our discourse.”
Separately, Mr. Schiff said
Sunday on NBC that he and
other Democrats have yet to
decide on whether to push for
the president’s personal attor-
ney, former New York Mayor
Rudy Giuliani, to testify.
Mr. Giuliani initially said
Sunday on ABC that he
wouldn’t cooperate with Mr.
Schiff’s probe, accusing the
congressman of lacking fair-
ness. But he quickly changed
his position, saying he would
consider testifying.
“I have to be guided by my
client,” Mr. Giuliani said. “If he
decides he wants me to testify
I will testify.”
As the president’s personal
attorney, Mr. Giuliani pressed
Ukraine to pursue an investiga-
tion of Mr. Biden and his son
Hunter, according to the whis-
tleblower’s complaint.
—Dustin Volz and Alex Leary
contributed to this article.

Democrats Warm to Impeachment, Warily For Pence,

Many of the Democratic
Party’s core supporters say
Ukraine
they favor the impeachment in-
quiry of President Trump,
though they are wary that the
Isn’t in

.
effort will founder in the Re-
The Script

ly
publican-controlled Senate and
carries some political risks for
their party. BY CATHERINE LUCEY

By Ken Thomas,
Joshua Jamerson
on With the impeachment pro-
cess roiling Washington and en-
and Andrew Duehren raging his boss, Vice President
Mike Pence headed to Indiana
us l,

Interviews with base voters and tried to change the subject.

over the weekend also suggest During a two-day trip to his
al a
e
Democrats have their sights pri- home state, the scandal-averse
marily on the 2020 election and second-in-command studiously
are placing a premium on find- avoided media questions about
ci on
SANGSUK SYLVIA KANG FOR THE WALL STREET JOURNAL

ing a nominee who can beat Mr. Ukraine, an explosive whistle-

Trump next year. blower complaint and the
Portia Sterling reached the House’s impeachment inquiry
conclusion that Mr. Trump into President Trump.
needed to be impeached after Departing from Andrews Air
er rs

she heard he had pressed Force Base, Mr. Pence walked

Ukraine to investigate former up the stairs without stopping.
Vice President Joe Biden, who is Upon landing in Indiana, he
seeking the 2020 Democratic bypassed a reporter and shook
m e

nomination. hands with supporters. Enter-

Mr. Trump’s past behavior ing a school to sign a guitar
amounted to “gangster stuff, but and visit with children, he
m rp

right now, it’s our national secu- strode on with the questions
rity at stake,” said the retired hanging in the air. Sitting at a
teacher, seated in the shade be- Rep. Andy Kim, left, at a town-hall meeting in Seaside Heights, N.J., on Saturday. Mr. Kim backed an impeachment inquiry last week. roundtable discussion in a hos-
fore a Las Vegas campaign event pital, he smiled and stared
for Mr. Biden. Journal/NBC News poll found But he said he worries it will in 2016, the politics of impeach- Among Democrats seeking straight ahead. And returning
co Fo

But Norm Jolicoeur, a Demo- about 4 in 10 Democratic voters
crat who lives in the San Fran- favored moving to impeachment
cisco Bay Area, said he wasn’t so hearings.
sure. He is leaning toward sup- Susanne Kaye, a retired
porting impeachment but said fourth-grade teacher from
he worries it may backfire. Even Nashua, N.H., who attended an
if House Democrats impeach the event for Massachusetts Sen.
president, he said, enough Sen- Elizabeth Warren, another 2020
ate Republicans aren’t likely to candidate, said any political
convict him and remove him worries didn’t deter her from
from office. supporting impeachment.
“If they take action,” Mr. Joli- “Look, it’s going nowhere in
coeur said of the Democrats, the Senate, but this is for the
“they may not be able to win.” history books,” she said.
n-
distract Congress from urgent
problems, such as the afford-
able-housing issues he works on
through his church.
“You wonder if what happens
back in Washington even affects
us sometimes,” he said, trailing
a group of activists who gave
2020 hopeful Pete Buttigieg a
walking tour of downtown Reno
on Saturday.
Mr. Buttigieg, the mayor of
South Bend, Ind., said in an in-
terview that much of the public
ment are inescapable. the presidency, the Ukraine to Washington, he got into a
During a Saturday town-hall scandal has brought impeach- car and drove away.
meeting held by Rep. Andy Kim ment back to the fore after it Such caution comes natu-
(D., N.J.), only one question in- subsided following the comple- rally to Mr. Pence, who is as
volved impeachment—from Don tion of Robert Mueller’s investi- scripted as Mr. Trump is un-
Clark, a Republican who said he gation into Russian interference structured. But he now faces
worried it would hold up other in the 2016 election. the most serious scandal to
priorities. Ms. Warren, the first major grip this administration to
Mr. Kim endorsed an im- Democratic candidate to endorse date, as Mr. Trump contends
peachment inquiry last week af- impeachment last spring, was with impeachment proceedings
ter holding out for months. He paying the cashier at a New over his dealings with Ukraine.
said at the town hall that the Hampshire farm stand when she As vice president, Mr. Pence
rapid movement of events made was approached by Allan Grau- could succeed Mr. Trump if he
him unsure how the inquiry berd, a New York lawyer who is impeached by the House and

A CBS News poll released Mr. Trump has dismissed the had made up their minds “a long would be received in his district, supports the House impeach- convicted by the Senate.
Sunday and taken at the end of inquiry as a “witch hunt.” time ago over whether this pres- which Mr. Trump won by 6 per- ment process. In Indiana, Mr. Pence tried
last week showed 55% of Ameri- Michael Margerum, a deacon ident’s behavior is acceptable. centage points. “So much has “It’s what we knew after the to reframe the narrative. He
cans—and 87% of Democrats— at St. Paul’s Episcopal Church in That’s why I don’t worry about been happening just over the Mueller report,” Ms. Warren told talked about trade, advocating
no

say they approve of the im- Sparks, Nev., said he supported the politics of it.” last several days, I think every- Mr. Grauberd, arguing that Mr. for the U.S.-Mexico-Canada
peachment inquiry. In July, impeachment “reluctantly,” add- For Democratic lawmakers body in this country is just still Trump felt emboldened to ask trade agreement. He talked
before news of Mr. Trump’s ing, “You’ve got to step up and elected last year to House dis- trying to catch up with all of Ukraine for help prosecuting a about investing in mental
Ukraine campaign, a Wall Street say, ‘enough’s enough.’ ” tricts that backed the president this,” he said. political rival. health. He sought to inspire
children and lift up troops. The
closest he came to acknowl-

Process Is a Blend of Legal, Political Considerations edging the state of play was in
a speech Thursday, in which he
slammed Democrats for focus-
ing on “baseless allegations.”
BY BRENT KENDALL case-by-case basis. But the Committee in recommending “Whatever the Democrats
power was viewed at its core as impeachment said Mr. Clinton and their allies want to spend
The impeachment process is a legislative check to protect the had “undermined the integrity their time on, President Donald
a delicate blend of constitu- republic from executive abuses, of his office, has brought disre- Trump and I are going to stay
tional law and political calcula- said University of Missouri law pute on the presidency, has be- focused on the issues that mat-
tion, with even the definition of professor Frank Bowman, au- trayed his trust as president, ter most to you,” Mr. Pence said.
the phrase “high Crimes and thor of “High Crimes and Mis- and has acted in a manner sub- On Twitter late in the day
Misdemeanors,” which refers to demeanors: A History of Im- versive of the rule of law and Friday, Mr. Pence repeated
DOUG MILLS/ASSOCIATED PRESS

allegations of misconduct by of- peachment for the Age of justice.” that argument, adding that
ficials, remaining extraordi- Trump.” The Senate acquitted him in Democrats “began an impeach-
narily flexible. “Certainly among the key 1999. No Democrat voted ment inquiry before they even
That phrase—part of Article ideas was that abuses of execu- against the party’s standard- had the facts.”
II of the Constitution, which tive power would be impeach- bearer. The vice president’s chief of
provides for the removal of the able,” he said. Senators at the time cited an staff, Marc Short, described
president, vice president and President Trump’s interac- array of factors, such as Mr. Pence’s approach as a
other civil officers for treason, tions with Ukraine could open whether Mr. Clinton did what strategy to keep the focus on
bribery or other high offenses— him up to three main types of President Clinton with first lady Hillary Clinton after the House was alleged, whether it was a issues, saying the vice presi-
was meant to be malleable from abuse-of-power allegations, Mr. voted to impeach him in December 1998. He was acquitted. crime, whether it was a high dent was “going to highlight
the start. Bowman said: that he abused crime, and whether the offenses things that aren’t getting done
The framers of the Constitu- his authority as commander in they aren’t crimes. moved from office by the Sen- justified the political equivalent by a Democrat-led House.”
tion “were sufficiently practical chief, as well as his powers in President Johnson’s im- ate. The most recent came in of the death penalty. House Speaker Nancy Pelosi
to know that no charter of gov- the U.S. diplomacy and law-en- peachment in 1868, for example, 2010, with the removal of U.S. Legal experts said that, un- (D., Calif.) has said the cham-
ernment could possibly antici- forcement arenas, by seeking to was the product of a post-Civil District Judge Thomas Porteous like a court case, impeachment ber can continue working on
pate every future contingency, work with a foreign state War battle over Reconstruc- Jr. after the Senate found him is intended to have a political important legislation even as
and they therefore left consider- against a domestic political ad- tion. Whether Congress used its guilty of taking bribes and mak- dimension. Harold Krent, a pro- it pursues impeachment, which
able room for play in the joints,” versary. impeachment power properly in ing false statements. fessor at the Chicago-Kent Col- she called “as serious as our
former Supreme Court Chief If the House of Representa- that case continues to be de- No president has been re- lege of Law, said lawmakers in congressional responsibilities
Justice William Rehnquist wrote tives charges a president or bated today. moved from office by Congress. the Trump deliberations will be can be” Friday on the MSNBC
in his book “Grand Inquests,” other government official by ap- In modern times, Congress President Richard Nixon re- confronted with a range of po- program “Morning Joe.”
about the impeachments of proving articles of impeach- impeached U.S. District Judge signed in 1974 rather than face litical concerns, including the The vice president has been
President Andrew Johnson and ment, a trial is held in the Sen- Alcee Hastings of Florida in impeachment. type of hearings to conduct and brought into the fray. Mr.
Justice Samuel Chase. (Both ate, where a two-thirds vote is 1988 and removed him a year Bill Clinton was the only “whether this is something you Trump himself made a sugges-
men were acquitted.) required for conviction. later because of bribery and other president to have been want to do right before an elec- tion that transcripts of Mr.
The concept of impeachment It is well accepted that not perjury concerns, even after a impeached, based on charges of tion.” Pence’s calls with Ukrainian
was taken from English law, all crimes are impeachable. On jury acquitted him. lying under oath and obstruc- “There is this notion of hav- President Volodymyr Zelensky,
where the definition of what the flip side, some alleged In total, the House has voted tion of justice stemming from ing the impeachment power with whom he is known to
constituted a removable offense abuses of power have been to impeach 19 federal office- the Monica Lewinsky affair. The only when you really need it,” have had two calls and a meet-
was developed ad hoc, on a deemed impeachable, even if holders; eight have been re- Republican-led House Judiciary Mr. Krent said. ing, be released.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Monday, September 30, 2019 | A5

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A6 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

WORLD NEWS
Thousands Protest in Moscow Netanyahu
Hearing
They demand release
of demonstrators held
for summer rallies
Period Is
against Putin’s rule Extended
BY ANN M. SIMMONS BY FELICIA SCHWARTZ

MOSCOW—Thousands of TEL AVIV—Israel’s attorney

Russians rallied here on Sun- general extended Benjamin
day to demand the release of Netanyahu’s pretrial hearing
protesters jailed during a rash on allegations of bribery, fraud
of political demonstrations and breach of trust to four
this summer that became the days, as the embattled prime
biggest public show of dissent minister fights to retain power
in years against the rule of that could help protect him if
President Vladimir Putin. indicted.
The protesters were arrested Attorney General Avichai
during demonstrations that be- Mandelblit in February said he
gan in July in objection to au- intended to charge Mr. Netan-
thorities’ refusal to allow sev- yahu in connection with three
eral prominent antigovernment corruption investigations,
candidates to be placed on the pending the pretrial hearing
Sept. 8 Moscow City Council starting Wednesday. Among
ballot. Swarms of police in riot the allegations are that Mr.
gear broke up the demonstra- Netanyahu attempted to influ-
tions and more than 2,000 peo- ence media coverage of him
DMITRI LOVETSKY/ASSOCIATED PRESS

ple were detained amid com- and his family, and accepted
plaints of police brutality. gifts from two billionaire busi-
Five people were convicted nessmen in return for favors.
and sentenced to prison on Mr. Netanyahu has denied
charges relating to the summer the accusations and called
protests. Human-rights activ- them a witch hunt aimed at
ists, opposition leaders and or- forcing him from power.
dinary Muscovites have decried On Sunday, the attorney
the heavy-handed response and general’s office said Mr. Netan-
the lengthy prison terms. Human-rights activists, opposition leaders and ordinary Muscovites have decried the lengthy prison terms given to demonstrators. yahu’s legal team had four days
Sunday’s rally, organized by to “exhaust all of [its] claims
the Libertarian Party of Rus- solidarity with those who are gest that the opposition has nors and local parliaments. opposition politician Alexei Na- during the oral hearing.” Mr.
sia, was authorized by the illegally harassed by crooks, succeeded in exploiting a chink But the authorities were valny were searched in connec- Mandelblit extended the hear-
Moscow mayor’s office. thieves and real masked ban- in the establishment’s armor clearly rattled by the results. tion with what Russian author- ing period from two days fol-

.
Dubbed “Set them free!,” it dits,” tweeted Lyubov Sobol, a and is achieving its goal of be- Four days after the vote, ities said was an investigation lowing a request for more time

ly
drew around 20,000 people, would-be candidate who went coming a coherent threat to homes and offices of political into alleged money laundering from the prime minister’s law-
according to the press service on a monthlong hunger strike Mr. Putin’s rigid political sys- opposition activists across the by the organization. Mr. Na- yers, his office said.
of the Moscow department of after election authorities de- tem, analysts have said. country were raided. Some ac- valny denies the charges. The attorney general is then
the Russian Interior Ministry. nied her application to run for on Neither the Kremlin nor the tivists were detained and inter- On Sunday, he called for expected to take about a
The turnout sends a mes- the City Council. Moscow mayor had an immedi- rogated. Others had their elec- supporters to continue the month or two to decide
sage to Mr. Putin that the op- The Kremlin’s attempt to ate comment about Sunday’s tronics seized, their personal fight. “Write every day on In- whether to formally charge Mr.
position isn’t willing to back stifle the opposition failed, at rally. The Kremlin has been ea- email accounts blocked and stagram, write on Twitter ev- Netanyahu, legal experts said.
down, opposition leaders said. least in Moscow, where candi- ger to underscore that its United their bank accounts emptied. ery day—set them free!” Mr. The hearings come as Mr.
us l,

“Despite the day off and dates backed by Russia’s oppo-
bad weather, it was very im- sition won nearly half the seats
al a
e
portant to come today, to show on the council. The results sug-
ci on
Russia party retained most of its
seats in other key cities outside
Moscow that voted for gover-
Nearly 200 homes and re- Navalny told the crowd. Netanyahu is trying to form a
gional offices affiliated with —Nonna Fomenko coalition government after an
the Anti-Corruption Fund of contributed to this article. inconclusive election this
month. If he succeeds and re-
mains prime minister, he

Austria’s Ex-Leader Rebounds in Election

wouldn’t be forced to resign
should he be charged, experts
say. If he holds any other post,
however, he would have to
BY BOJAN PANCEVSKI hidden-camera video. Mr. Strache had entered govern- step down.
er rs

Mr. Kurz now faces what ment, forcing his resignation. Negotiations with rival
The party of former Aus- some analysts said will be The scandal echoed across Benny Gantz, who campaigned
trian Chancellor Sebastian long and complex coalition ne- Europe, fueling the debate on replacing Mr. Netanyahu’s
Kurz won an election months gotiations. about whether mainstream right-wing and religious bloc
m e

after his government collapsed, “We got ousted as govern- politicians should form gov- with secular centrist rule,
a turnaround that in a rare de- ment, and we had a difficult ernments with the continent’s have been challenging. Mr.
MATTHIAS SCHRADER/ASSOCIATED PRESS

velopment on Europe’s frac- four months since, but the rising nationalist and anties- Gantz has said he won’t join a
m rp

tured political landscape saw people voted us back in today,” tablishment parties. government with Mr. Netan-
antiestablishment populists Mr. Kurz told supporters in Vi- While mainstream center- yahu while the prime minister
suffer a significant decline. enna on Sunday evening. In a left and center-right parties is under investigation.
Mr. Kurz’s conservative subsequent interview on live have often ruled together in Mr. Netanyahu on Sunday
People’s Party took 38.4% of television, he refused to com- the Alpine country, there is no called Mr. Gantz and the two
co Fo

Sunday’s vote, according to mit to any coalition options.
the preliminary official results, If the results are confirmed,
his party’s best result in years he will have a choice between
and up more than 6 percent- forming a coalition with the
age points from its 2017 score. left-leaning Greens or reboot-
The nationalist Freedom Party ing his failed alliance with the
slumped more than eight Freedom Party.
points, to 17.3%. Mr. Kurz has repeatedly re-
Mr. Kurz lost a parliamen- jected a coalition with the So-
tary vote of confidence in May cial Democrats, who came in
after the leader of the Free- second with 21.5%.
dom Party, then junior partner One aide to Mr. Kurz said he
in his administration, was would, however, consider an al-
shown promising public con- liance of conservatives, Greens
n-
Sebastian Kurz faces long and complex coalition negotiations.
has been dubbed the Dirndl Co-
alition after the colors of the
local folk attire, which match
those of the three parties.
The nationalists suffered
heavy damage after Heinz-
Christian Strache, then party
leader and later vice chancellor
precedent there for a coalition
between the conservatives and
the Greens.
Aides to Mr. Kurz told The
Wall Street Journal that rural
voters and party officials fa-
during a night of heavy drink- vored a renewed coalition with
ing in Ibiza, the Spanish holiday the nationalists, while urban
resort, promising public con- groups preferred an alliance
tracts to a woman he believed with the Greens and the pro-
to be a Russian billionaire in re- business Neos.
turn for her political support. Polls showed that a majority
The footage was shot just be- of conservative and Green vot-
fore the previous election but ers rejected a coalition between
agreed for both sides to try
again on Wednesday, accord-
ing to Mr. Netanyahu's Likud
party.
The premier’s legal troubles
have loomed large over Israel’s
elections.
Mr. Netanyahu last week
asked Mr. Mandelblit to broad-
cast the hearings live so his
team could counter “a deluge
of biased partial leaks” from
the investigations into him,
which the attorney general re-

tracts for political support in a and free-market liberals, which under Mr. Kurz, was filmed leaked and released long after the two parties. jected.

FROM PAGE ONE

no

GRAVITY IS NOT GREAT

FOR YOUR BODY. Google the navigation protocol with
about 1% of its Chrome
browser users next month, a
support the new DNS standard
so consumers have more
choice.
switching their DNS service
providers.
That would shift DNS ser-

BUT ZERO-GRAVITY IS... Draws first step toward more wide-

spread adoption of the new
technology.
Google and
browser maker, Mozilla
another

Corp., want to encrypt DNS.

vices used by consumers away
from such companies as Com-
cast Corp. and AT&T Inc.

Scrutiny Google said that it is sup-

Continued from Page One
from spoofing—faking an in-
ternet website to obtain a con-
sumer’s credit-card informa-
tion or other data.
But the new standard could
alter the internet’s competitive
landscape, cable and wireless
companies said. They fear being
shut out from much of user
data if browser users move
wholesale to this new standard,
From head to toe gravity weighs you down - which many internet service
compressing your vertebrae, stretching out providers don’t currently sup-
your skin, pulling body fat down, causing port. Service providers also
aging, pain and health problems now or in worry that Google may compel
the future. its Chrome browser users to
switch to Google services that
support the protocol, some-
Our zero-gravity recliners can help heal pain,
slow aging, and improve your health by thing Google said it has no in-
tention of doing.
neutralizing gravity’s effects.
“Right now, each internet
service provider has insight
into the traffic of their users,
and that’s going to shift” as a
result of the change, said Andy
Ellis, chief security officer at
Free Shipping Akamai Technologies Inc.,
which provides internet ser-
12 Months 0% Apr vices to corporations but
doesn’t support the new stan-
30-Day Risk-Free Trial dard.
Google, which has vast
SVAGO.COM 844-MY-SVAGO troves of consumer data be-
cause of its domination of
search, plans to begin testing
porting the new technology to
improve users’ security and
Doing so could help prevent
hackers from spoofing or
snooping on the websites
Mozilla sees the antitrust
concerns raised about Google
as “fundamentally mislead-
privacy and that its browser that users visit, for example. ing,” according to Marshall Er-
changes will leave consumers Such a move could compli- win, Mozilla’s senior director
in charge of who shares their cate government agencies’ of trust and safety.
internet surfing data. efforts to spy on internet Service providers are rais-
The new standard modern- traffic. But it could prevent ing these concerns to under-
izes a fundamental building service providers who don’t mine the new standard and
block of the internet known as support the new standard ensure that they have contin-
the domain name system, or from observing user behavior ued access to DNS data, he
DNS. This software takes a in gathering data. said.
user’s electronic request for a Like Google, Mozilla’s Fire- While Google is taking a less-
website name such as wsj.com fox is planning a small-scale aggressive approach than
and, much like a telephone rollout of the protocol, ex- Mozilla, the long-term impact of
book, provides the series of pected to start in the coming the change could be enormous.
internet protocol address Google’s Chrome has about 64%
numbers used by computers. of the world-wide browser mar-
“Google has no plans to ket, according to StatCounter,
centralize or change people’s
Internet service the internet data tool.
DNS providers to Google by providers recently Because Google operates its
default. Any claim that we own DNS service, known as
are trying to become the cen-
stepped up criticism Google Public DNS, some are
tralized encrypted DNS pro- over the issue. concerned that the DNS up-
vider is inaccurate,” the com- grade could ultimately concen-
pany said in an emailed trate too much of the inter-
statement. net’s traffic in the hands of
In a blog post earlier this weeks. Firefox is planning Google.
month, the Electronic Frontier eventually to move most U.S. Internet service providers
Foundation, a digital-rights consumer users to the new have recently stepped up their
watchdog group, said it was standard, perhaps as early as criticism over the issue, with
“very excited” by the new year’s end. some speculating that Google,
standard’s potential to im- Mozilla is taking a more too, might emulate Firefox’s
prove internet privacy. aggressive approach than more aggressive approach,
Nevertheless, the EFF is Google. It will move most which gives the browser
worried that the new standard consumers—but not corpo- maker control over which DNS
could chip away at the decen- rate users who use providers service is used.
tralized nature of the internet. such as Akamai—to the new —Brent Kendall
The solution, the EFF said, is standard automatically, even in Washington
for more service providers to if the change involves contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Monday, September 30, 2019 | A7

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— Wolfgang Puck

.
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on
Renowned chef Wolfgang Puck at our GFF dinner last week with Silicon Valley entrepreneurs John Shi, CEO & Co-founder BZR; and Larissa Russell, CEO & Co-founder Pod Foods.
us l,

THE
al a
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INTERNET OF FOOD
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Uber Eats restaurant listings tripled in the last year.

m e

Last week, at our Silicon Valley Global Food Forum roundtable Wolfgang Puck
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and digital food entrepreneurs discussed ...

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Domino’s says its competitors of the future won’t be

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49
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Retail grocers are revolutionizing convenience for online
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purchase 3.“Direct-to-Consumer”
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online* high-value goods are shipped usually through online
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Eventually, I see a day when the consumer can pick from a smorgasbord of
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the United States. Our boxes save money and save the environment.
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www.prattplus.com * Source: L.E.K. Insights Vol 21 (4) - February 8, 2019
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A8 | Monday, September 30, 2019
TYRONE SIU/REUTERS
A police officer pepper-sprayed antigovernment protesters during a demonstration in Hong Kong’s Causeway Bay district on Sunday.
Hong Kong
Protesters,
Police Clash
Continued from Page One
mar China’s anniversary cele-
brations. The movement is the
highest-profile public chal-
lenge to President Xi Jinping
since he rose to power in 2012.
Marchers vented their anger
at Chinese banks, smashing
and spray painting ATMs at
the Bank of China and plaster-
ing the front of the Bank of
Communications with posters
comparing China to the Nazis;
hurled bricks and Molotov
cocktails at the government
headquarters; burned the en-
trance of a metro station and
set half a dozen large fires.
The police, for their part,
started the day off with tear
gas rounds almost immedi-
ately after the march began;
fired jets of blue dye from wa-
ter cannons; sent snatch teams
in aggressive charges to make
arrests; brought huge numbers
of officers into the streets;
and pepper-sprayed crowds of
ON THE STAGE AND ON THE RECORD.
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journalists and others as they
tried to leave for the night.
The Hong Kong government
has signaled its desire for rec-
onciliation through dialogue in
past weeks and hosted a pub-
lic forum with Chief Executive
Carrie Lam on Thursday. But
the continued volume and fe-
rocity of the protests suggest
the government’s strategy is
doing little to quell the unrest.
The organizers of Sunday’s
march, who didn’t identify
themselves publicly, didn’t ap-
ply to the police department
for permission, as organizers
have for many previous rallies.
Police tried to quell the dem-
onstration before it began, fir-
ing tear gas and pepper spray
in the center of the shopping
district of Causeway Bay. Pro-
on through dialogue.
testers began to march anyway,
holding a giant yellow banner
us l,
that said “Restore Hong Kong,
Revolution of Our Time.”
al a
e
As they marched down one
of the city’s longest roads, they
chanted slogans while breaking
ci on
into song. The protest anthem’s
lyrics include the lines: “Lift up
your head and speak up, our
voices will ring loud, in the
hope that freedom will return
er rs
here.…The sons and daughters
march together for justice, a
revolution of our time.”
m e
m rp
co Fo
n-
AND
WORLD NEWS
A 15-year-old student, who
gave his name as John, marched
with a placard featuring an im-
age of the anonymous “Tank
man,” who stood alone before a
column of Chinese army tanks
in the aftermath of the deadly
crackdown on the 1989 Tianan-
men Square protests in Beijing.
“We are not radicals, we
just want to fight for a better
future,” said John, who took
the placard from other pro-
testers who were distributing
anti-Communist Party para-
The government has
signaled its desire
for reconciliation
phernalia. He said the plac-
ard, captioned “CCP Evil Dic-
tatorship Party,” reflected his
misgivings about Communist
rule and its impact on civil
liberties in Hong Kong. “We
want to tell the world that
the evils committed by the
Communist Party could hap-
pen here, too,” he said.
Along the demonstration
route, protesters vandalized
facades of mainland Chinese
businesses, including outlets
of state-owned banks, plaster-
ing them with anti-party plac-
ards and spray-painting pro-
test slogans.
Police on Sunday appeared
to be employing different
crowd-control strategies than in
previous weeks. They fired tear
gas even before the rally was to
begin, even though nonpartici-
pants were milling around the
busy shopping area. And, in
contrast to previous instances
in which police chased protest-
ers, large groups of police in
riot gear waited at intervals
along the expected march route.
As police can hold arrested
people for 48 hours without
charge, those arrested Sunday
could still be off the streets
for Tuesday’s national day
public holiday.
In other districts, protesters
vandalized subway stations and
other structures, continuing an
outburst of anger against the
city’s subway company, MTR
Corp. In the Wan Chai station,
protesters smashed the glass of
an elevator and threw objects
into the underground station
from the street level.
—Wenxin Fan
and Andrew Dowell
contributed to this article.
/FOUNDER AND CEO, GLOSSIER
/ASSISTANT ATTORNEY GENERAL, ANTITRUST
DIVISION, U.S. DEPARTMENT OF JUSTICE
/CEO, XPRIZE FOUNDATION
/SUPERMODEL, ACTIVIST AND PHILANTHROPIST
/HEAD, UBER EVERYTHING
/OWNER, DALLAS MAVERICKS;
CHAIRMAN, AXS TV
* * THE WALL STREET JOURNAL.
Taiwanese
Demonstrate
Solidarity
BY JOYU WANG
TAIPEI—Antigovernment
protests in Hong Kong are
stirring anti-China sentiment
in a neighbor that is also wary
of Beijing’s growing clout.
A march in Taiwan’s capital
drew what organizers said were
100,000 people into the streets
in solidarity with Hong Kong,
which has endured 17 weeks of
unrest underpinned by fear of
the Chinese government’s in-
creasing reach into the city’s
affairs. Taipei police didn’t give
a crowd-size estimate.
The political turmoil in the
former British colony is pushing
Taiwan away from Chinese
President Xi Jinping’s plan to
use the Hong Kong model of
“one country, two systems” to
bring the self-governed island of
Taiwan under Beijing’s rule. Ris-
ing opposition here is a setback
for Mr. Xi’s push for a reunifica-
tion that is part of his grand vi-
sion to rejuvenate China.
On Sunday, some partici-
pants rallying in Taipei wore
yellow helmets and gas
masks—symbols of Hong
.
Kong’s 2019 protests—and
ly
waved giant black flags that
read “restore Hong Kong, the
revolution of our times,” be-
fore the march started outside
Taiwan’s legislative buildings.
Some also waved green flags
that embody the ideology of
Taiwan independence, which
Beijing won’t countenance.
The mostly black-clad crowds,
braving the pouring rain as a
typhoon approached, marched
2 miles through the govern-
ment district of Taipei while
chanting protest slogans.
Sunday’s gathering was
part of a global effort to sup-
port Hong Kong’s pro-democ-
racy movement and its fight
against China’s authority over
the semiautonomous city.
© 2019 Dow Jones & Co., Inc. All Rights Reserved. 6DJ7465
Thousands more gathered in
four other Taiwanese cities for
a march, rallies and a movie
screening over the weekend.
Taiwan’s president, Tsai
Ing-wen, has been a vocal ally
of Hong Kong’s pro-democracy
protests. Ms. Tsai, who is
seeking reelection next year,
has criticized Beijing’s han-
dling of the protests in Hong
Kong. In public remarks at the
ruling Democratic Progressive
Party’s 33rd anniversary cele-
bration on Saturday, she high-
lighted the threats and politi-
cal intervention from across
the Taiwan Strait.
“In the race of 2020, our ri-
vals are not only within our
country but more on the other
side of the shore,” Ms. Tsai
said, adding that China wants
to see “Taiwan elect an admin-
istration that bows to Beijing
and is afraid of purchasing
fighter jets and supporting
Hong Kong’s democracy.” The
Trump administration has
agreed to sell Taiwan some $8
billion of F-16V fighter jets, a
move China opposes.
Even the China-friendly Na-
tionalist Party (KMT) spoke
against the application of “one
country two systems” frame-
work for Taiwan. KMT leader
Wu Den-yih said in a video
posted to the opposition
party’s verified Facebook page
on Sunday that the Republic of
China—Taiwan’s formal
name—is “a sovereign and in-
dependent country…and can’t
be compared with Hong Kong.”
Mr. Wu said he opposed po-
lice using harsh means to dis-
perse crowds in Hong Kong.
Some attendees at Sunday’s
event said they thought Taiwan
and Hong Kong faced similar
problems, as China continues
to expand its reach and pres-
sures other countries not to
recognize Taiwan’s sovereignty.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Monday, September 30, 2019 | A9

WORLD NEWS

India’s Holiday Sales Test Shopping Slump

BY ERIC BELLMAN
NEW DELHI—India’s slow-
ing economy faces a critical
test this week when corporate
executives and economists see
whether its annual festival of
lights blockbuster shopping
spree reignites spending.
The shopping season, lead-
ing up to the Hindu festival of
Diwali, kicked off this weekend
with a tsunami of ads and offers
from battling retail giants Ama-
zon.com Inc. and Walmart
Inc.’s Flipkart, among others.
The weeks around the cele-
bration—when gifts are fre-
quently exchanged, and it is
considered auspicious to buy—
typically account for up to a
third of retailers’ annual sales.
So far this year, flagging In-
dian consumer spending has
been a major drag on the
overall economy.
Sales this week will be an
important indicator of the
depth of India’s slowdown, as
well as whether the Western
brands that have bet billions
on the emerging market will
ever get a return on their in-
vestments.
Last year, Bappi Raju, 57
years old, used the sales to
pick up a refrigerator and an
air purifier, but this year his
family is holding back on big
acquisitions. His Diwali gifts
to family, friends and work
colleagues have been down-
graded to nuts from silver
items last year.
“We will spend, but not
splurge,” he said. “We want to
keep some money handy in
case there is some sort of a fi-
nancial crisis-like situation.”
Forrester predicts the
growth rate from online sales
this year will be more than
30%, but that would be a
sharp decline from the more
than 90% growth last year and
the slowest expansion in at
least five years.
“The first half was slow in
terms of sales so this is the
window they have” to make up
for lost ground, said Satish
Meena, a New Delhi-based an-
alyst with Forrester. “It’s cru-
cial for companies.”
The ads on websites, bill-
boards and front pages of
newspapers shouted about the
thousands of discounts and
launches Sunday. Amazon’s
promotions, which included
Online sales growth may slow during India's holiday festival
this year.
Change from previous year
in sales*
200%
150
100
50
0
’15 ’16 ’17 ’18
*Change in gross merchandise value recorded during the five-day holiday sales by
Amazon and Flipkart; †estimate for 2019.
Source: Forrester Research
handing out coupons at a New
Delhi railway station, focused
on the deals. Flipkart’s ads
feature the biggest stars of
Bollywood and cricket.
“This is really the harvest
time for the whole country,” in
terms of retail sales, said Ra-
jneesh Kumar, chief corporate
affairs officer at Flipkart In-
dia. “It becomes the bench-
mark for the coming year.”
cut back on purchases of every-
thing from cars and motorcy-
Predicted share of sales cles to toothpaste and cookies
by category in recent months. They say they
are worried about the economy,
Smartphones jobs and trade tensions.
36% In response, the govern-
ment unveiled a series of
Fashion steps in recent weeks to try
24 to quickly spur borrowing
and investment and resusci-
Consumer electronics tate spending. It has slashed
16 interest rates, merged state-
owned banks, reduced re-
Appliances strictions on foreign invest-
12 ments and slashed corporate
tax rates.
Homeware and furniture But it isn’t clear the moves
4 will do much to make India’s
’19†
middle class less restrained
this season, economists warn.
“I’m not buying the view
that this is just a cyclical
India’s economy has slowed downturn,” said Vivek Dehejia,
to a six-year low and has given an expert on the Indian econ-
up its spot as the world’s fast- omy at Carleton University in
est-growing large economy Ottawa. “This reflects the
this year as a lack of credit whole unfinished economic re-
and confidence has damped form agenda.”
spending by the government, Global brands have invested
companies and, especially, billions to be ready to reap the
consumers. rewards as India’s potentially
The nation’s massive con- massive middle class starts
sumer class has been the last spending more. Many missed
domino to fall. Shoppers have the boat in China and don’t
want to make the same mis-
take in the other billion-per-
son economy. Amazon has
pledged to invest at least $5
billion in India building a na-
tional network of warehouses.
Walmart made its biggest in-
ternational acquisition yet
when it took over Flipkart last
year for around $16 billion.
Big names like Starbucks,
McDonald’s and IKEA as well
as tech leaders like Uber,
Google and Netflix have all
been ramping up their com-
mitment to India.
To generate interest, Amazon
has added 150,000 more sellers
and will have a record amount
of deals and financing options.
Flipkart launched a local
language version of its app
and hired 50,000 more people
to help with the surge in sea-
sonal orders. It may even ben-
efit from consumer gloom,
said Mr. Kumar.
“When there are noises
around consumer demand
then value players like us, we
get more traction,” he said.
“In these times, people want
more value for money.”
—Vibhuti Agarwal
contributed to this article.

WORLD WATCH
Fear, Pessimism
Damp Afghan Vote
FRANCE

Thousands Gather

.
To Honor Chirac

BY CRAIG NELSON
AND EHSANULLAH AMIRI
KABUL—Slightly more than
two million Afghans voted in
presidential elections over the
weekend, a historic low for a
ly
tween the incumbent presi- Thousands of mourners paid
dent, Ashraf Ghani, and his tribute on Sunday to former
government’s chief executive, on French President Jacques Chirac,
Abdullah Abdullah, hundreds who died last week at age 86.
of thousands, perhaps millions, Mr. Chirac was lying in state
of potential voters had effec- Sunday afternoon inside the In-
tively been disenfranchised. valides monument in Paris,
us l,

nation beleaguered by a nearly
18-year war and disillusioned
by the government’s failure to
The national election com-
mission said in August that
al a
e
1,993 planned polling stations
where France honors its heroes,
after he died on Thursday.
People paused for a moment

KAMIL ZIHNIOGLU/ASSOCIATED PRESS

deliver on its pledge to end wouldn’t open on election day of silence in front of the casket
corruption and spur overhauls. because Afghan security offi- draped in the French flag under
ci on

As vote counting got under
way on Sunday, a day after the
vote, an official from the na-
tional election commission put
the voter turnout at about 2.2
cials decided they couldn’t be
protected against attacks by
insurgents. By Saturday, that
number had grown as high as
2,474, depending on which
er rs
a smiling picture of Mr. Chirac,
who served as mayor of Paris, a
lawmaker, prime minister and
France’s president from 1995 to
2007. A memorial service is

million—just 23% of those Af-
ghans registered to vote and
7% of the country’s estimated
32.2 million people. Official re-
election official was speaking.
There were no massive Tali-
ban attacks on Saturday—a tes-
tament, government officials
m e
planned for Monday in Paris.
President Emmanuel Macron
and about 30 former or current Members of the public lined up to pay their respects to former French President Jacques Chirac.
heads of states and government

sults aren’t expected for weeks. and election experts said, to the are expected to attend. A private
The actual turnout figure roughly 75,000 soldiers and po- funeral will take place later that
could well prove to be even lice the government deployed day in Paris.
m rp

lower than the commission of-
ficial’s figure of 2.2 million vot-
ers: On the evening of parlia-
mentary elections last October,
the commission announced a
to guard polling sites, as well as —Associated Press
bans in Kabul and other cities
on large trucks, motorcycles GREECE
and bicycles that could serve as
transport for suicide bombers. At Least One Dead  
#1 Wall Street Journal Bestseller
co Fo

turnout of over four million,
only to revise the number
downward to 3.2 million sev-
eral months later.
Momina Hashimi, who pro-
Turnout could prove
to be even lower
than the estimated
2.2 million voters.
But the militants’ threats of
violence discouraged voting.
So did taking out mobile
phone towers, which severed
communications between elec-
tion officials in Kabul and
more than 800 polling stations
in four northern provinces,
election officials said.
Just as importantly, they
prevented potential voters
from phoning others who may
have already voted to help
them decide whether to take
n-
As Migrants Set Fires
Migrants protesting at an
overcrowded camp on the Greek
island of Lesbos set fires and
clashed with police, killing at
least one person, officials said.
About 12,000 migrants, most
of them Afghans, are housed in Whether you lead a team
a space designed for 3,000. The
protesters were demanding to of 2 or 200,000, you need to read
be transferred to the Greek
mainland.
A burned body was brought

the risk themselves. to a local hospital Sunday and

The legacy of previous, there was information about an
cessed ballots at a polling sta- fraud-ridden elections also unconfirmed second death, po-
tion in the farming community soured the public. The first lice said. UNHCR Greece later
no

of Jabal Saraj, 50 miles north
of the capital Kabul, faulted
the Taliban and a legacy of
fraud-ridden elections for
driving down the vote.
“The Taliban’s threats have
discouraged many people from
voting,” said Ms. Hashimi, a
19-year-old law student in
northeastern Kapisa province.
“And because of our history of
dirty elections, other people
think voting’s pointless.”
On Saturday, she was sel-
dom busy. Nearly five hours af-
ter a polling station at a boys
school had opened its doors,
only four out of the site’s 360
registered women voters had
cast ballots, she said.
The low voter turnout for the
presidential election, the fourth
since the U.S.-led invasion in
2001 that forced the Taliban
from power, wasn’t unexpected.
Even before the first ballot
was cast in an election that
has shaped up as a contest be-
MUHAMMAD SADIQ/EPA/SHUTTERSTOCK
post-2001 presidential election
drew eight million voters and
the number has dropped ever
since, just as their reputation
for vote-rigging has grown.
Each Afghan election has
been followed by a shake-up of
the government-appointed com-
missions overseeing voting. The
reasons given have been incom-
petence in organizing the vote
and the inability to curb fraud.
More recently, their failures
were deemed criminal: This
month, 10 former electoral offi-
cials were sentenced to five
years each in jail for corruption.
Jaded by the persistence of
election fraud or seeking to ex-
ploit that legacy for partisan
advantage, opposition campaign
officials and many Afghans
were swift to cry foul on Satur-
day, as reports spread of names
omitted from voter-registration
lists and of malfunctioning por-
table biometric devices used to
verify voters’ identities.
tweeted that “we learned with
deep sadness that the lives of a
woman and a child were lost in
a fire” on Lesbos.
—Associated Press
SWITZERLAND
African Leader’s Son’s
Cars Fetch Millions
Car lovers splashed out more
than $27 million at an auction
for dozens of luxury cars seized
from the son of Equatorial
Guinea’s president in a Swiss
money-laundering probe.
The 25 lots sold by auction
house Bonhams included a white-
and-cream 2014 Lamborghini
Veneno roadster that cost the
buyer 8.28 million Swiss francs
($8.4 million). Total proceeds from
the sale beat the 18.5 million
francs ($18.7 million) that authori-
ties had hoped to fetch for a
charity to benefit the people of
oil-rich Equatorial Guinea.
The auction comes after the “An instructive and entertaining leadership
Geneva prosecutor’s office said it
had closed a case against Te- manual for executives, managers, and military
odoro Nguema Obiang Mangue, officers. Mattis is a gifted storyteller.”
the son of the country’s presi-
dent, Teodoro Obiang, and two
other people following a probe — J E F F R E Y G O L D B E R G , The Atlantic
of money laundering and mis-
management of public assets.

Swiss authorities seized the

cars in 2016. The Geneva prose-
cutor’s office cited rules allowing
prosecutors to close cases in RANDOM
HOUSE
which the person under investiga-
tion had “repaired the damage or
done everything that could have
been expected of him or her to
make up for the wrong that was
caused.”
Election workers moved ballot boxes in Kandahar on Sunday. —Associated Press
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Monday, September 30, 2019
Gym Rats
Give Weed
A Spin
Continued from Page One
professional athletes, includ-
ing boxer Mike Tyson and cy-
clist Floyd Landis, petitioned
the world antidoping authority
to remove marijuana from its
list of banned substances.
Some ultramarathoners say it
helps them through long races.
The aroma of weed is common
these days at San Francisco
boot-camp fitness classes,
Denver climbing walls and jiu
jitsu tournaments.
“I’ll have a toke before the
gym,” says Peter Kloczko, 29,
of London, Ontario, “and it’s
like, damn, I’m on point to-
day.”
Los Angeleno Artemus Dol-
gin, 35, at times smokes as
many as 14 joints a day, many
on the stoop of his gym or at
home while bench pressing.
Mr. Dolgin, who describes his
Repo Fuss
Deals a Test
To N.Y. Fed
Continued from Page One
“There is a serious question
about why they didn’t foresee
it,” said Nathan Sheets, chief
economist at investment-advi-
sory firm PGIM Fixed Income,
who previously held senior
Fed and Treasury Department
posts. “Why were they sur-
prised? What did they miss?
And was that a reflection of
something not happening at
the New York Fed on the desk
or elsewhere?”
In an interview, Mr. Wil-
liams rejected the idea that
the central bank was behind
the curve in responding to the
market volatility. The New
York Fed followed a “consis-
tent approach of assessment,
coming up very quickly with
an appropriate plan, and exe-
cuting that,” he said. “This is
really the Fed at its best.”
The Fed’s approach will be
tested Monday, when the third
quarter ends and banks may
refrain from overnight lending
in order to show strong bal-
ance sheets. Reduced lending
could put pressure on the repo
market and create more vola-
tility.
The New York Fed said it
plans to keep injecting funds
through Oct. 10 and has in-
creased the sizes of these in-
jections in recent days.
Mr. Williams and his col-
leagues must also solve the
mystery behind the money-
market dysfunction: Why did
banks, seemingly flush with
reserves, choose not to lend as
rising repo rates created a
quick profit opportunity? Offi-
cials are studying the role of
new regulations and other
postcrisis market structure is-
no
sues. Regardless of the cause,
such volatility isn’t good—in
stressed conditions, it could
force hedge funds and others
that rely heavily on short-term
loans to dump assets, disrupt-
ing markets and impairing the
flow of credit to the economy.
The New York Fed, in a cas-
tle-like fortress two blocks
from Wall Street, serves as the
central bank’s nexus between
the financial markets and the
economy. It provides the U.S.
government’s real-time eyes
and ears on trillions of dollars
that flow through global mar-
kets daily. Its staff played crit-
ical roles designing rescue
programs and monitoring
banks when broken credit
markets sent the financial sys-
tem to the brink of collapse
between 2007 and 2009.
Mr. Williams took the helm
in June 2018 after a career as
an economist at the Washing-
ton-based board of governors
and then the San Francisco
Fed, where he became presi-
dent in 2011. His predecessor
in New York, William Dudley,
had overseen markets opera-
tions after serving as chief
economist at Goldman Sachs.
Mr. Williams co-wrote sem-
inal research on policy-setting
rules and models to estimate a
theoretical neutral level of in-
terest that neither spurs nor
slows growth, something
economists call “r-star.”
A punk and classic-rock mu-
sic aficionado, he sprinkled
speeches with lyrical refer-
ences to Led Zeppelin and The
Clash. When he left San Fran-
cisco, staffers presented him
profession as “hustler,” says it
pumps up his biceps, and his
self-confidence.
“You definitely feel the
blood flow through each spe-
cific muscle,” he says. “The
epitome of muscle building is
the mind-muscle connection,
which doesn’t come right
away. Weed really enhances
that.”
Keith Humphreys, a profes-
sor of behavioral sciences at
Stanford University who spe-
cializes in addiction, says:
“There’s no evidence of that
whatsoever. Sort of by defini-
tion, we are not good at ob-
serving our behavior when we
are under the influence of a
drug.”
Harvard University re-
searchers have found that
smoking marijuana raises the
resting heart rate and carries
other health risks.
The World Anti-Doping
Agency, based in Montreal, in-
cludes marijuana on its list of
banned substances for athletes
competing in the Olympics
and other international com-
petitions. “Cannabis can cause
muscle relaxation and reduce
pain during post-workout re-
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
The New York Fed, housed in this building, flooded the system with funding last week as interest rates on banks’ overnight loans spiked because of a cash shortage.
with an “R-Star” T-shirt with
the gothic lettering of the rock
band AC/DC’s logo.
This month’s trouble bub-
bled up Monday, Sept. 16. Mr.
Williams and Lorie Logan, the
executive who is interim man-
ager of the Fed’s portfolio, had
traveled to Washington with
other senior staffers ahead of
the central bank’s two-day
n-
rate-setting policy meeting.
Potential for funding pres-
sures in money markets had
been building for months due
to regulatory changes, rising
Treasury bond issuance and
steady declines in deposits
banks hold at the Fed—known
as reserves—the result of the
Fed’s 2017 decision to shrink
its balance sheet.
The Fed had been surveying
banks for months about their
demand for reserves but didn’t
think they were near this
point that would lead to fund-
ing pressures.
Cash crunch
Officials knew some large
payments of corporate taxes
and Treasury auction settle-
ments on Sept. 16 would result
in a large transfer of cash from
banks to the government. But
they believed money markets
could digest them, as similar
payment dates in April and
June hadn’t roiled markets.
A cash crunch began build-
ing that afternoon in repo
rates. This year, rates on re-
purchase agreements usually
have been no more than a 10th
of a percentage point above
the effective fed-funds rate, or
around 2.2% in August and
early September. They reached
5% on Sept. 16.
Pressure intensified when
repo desks began rolling over
loans early Tuesday, Sept. 17,
with the repo rate rising as
high as 10%. Even then banks
refused to lend, passing up big
profits to hold on to their
cash.
The dysfunction led the
Fed’s benchmark federal-funds
rate to rise to 2.3%—above its
2%-to-2.25% target range—go-
FROM PAGE ONE
Trainer and nutritionist Pauline Nordin shows the result of her
punishing workouts. Nightly recovery routine: cannabis cookies
covery. It can also decrease
anxiety and tension, resulting
in better sport performance
under pressure,” the agency
says on its website.
The other reason WADA is
harsh on weed: It might con-
tribute to injury. The drug, it
says, “can increase focus and
risk-taking behaviors, allowing
athletes to forget bad falls or
previous trauma in sport, and
ing outside of the target range
for the first time since the
central bank began setting a
range during the 2008 crisis.
From temporary offices at
Fed headquarters in Washing-
ton, Mr. Williams, Ms. Logan
and their team assessed what
was roiling markets and what
operations were needed to re-
store liquidity. They decided
to inject $75 billion in cash
into money markets, the first
such move since the crisis.
Traders didn’t hear any-
thing from the Fed until 9:15
that morning, several hours
after rates began spiking, min-
utes before the U.S. stock mar-
ket opened and an hour before
the Fed policy meeting would
start.
“Market confidence in the
New York Fed markets desk is
critical and a series of events
here have, let’s say, dinged
confidence in the operations,”
said Ward McCarthy, chief fi-
nancial economist at financial-
services company Jefferies
LLC. “It’s important that the
confidence issue be addressed
before it becomes a more sig-
nificant problem.”
Mr. Williams in the inter-
view defended the bank’s re-
sponse, saying, “We diagnosed
it right, and Lorie and her
team worked with others to
get that done and get it done
quickly.”
Some analysts said that the
Fed ultimately made the right
calls but that the incident
showed officials had miscalcu-
lated the quantity of reserves
needed in the system and how
tight funding markets would
get as a result.
“The lack of response on
Monday was unnerving,” said
Mark Cabana, head of short-
term interest-rate strategy re-
search at Bank of America
Merrill Lynch. “They came in
on Tuesday, but they came in
too late.”
Mr. Williams’s team was
making its moves without key
leadership after he ousted two
veterans. In late May, Mr. Wil-
liams announced the depar-
ture of Simon Potter, head of
THE WALL STREET JOURNAL.
Mr. Moses, an emergency-
medicine student and dedi-
cated powerlifter, took that as
a green light to switch to
grass. One problem: He began
getting confused about balanc-
ing weight evenly across a
barbell. He recently was squat-
ting 315 pounds of weight
when he heard a crack and felt
a whoosh of pain at his waist.
“And that’s about when I went:
F—- it, I’m getting more
stoned,” he says.
Former athletes looking to
reverse the ban argue that
PAULINE NORDIN
many stoners have it wrong:
Weed doesn’t provide a sport-
ing edge. While marijuana and
other cannibanoids support
wellness “by aiding in pain re-
lief and rest,” the athletes
wrote in a petition, “there is
push themselves past those no evidence that they enhance
fears in competition.” sport performance.”
Sam Moses of Daytona A series of Brazilian jiu
Beach, Fla., can relate. He says jitsu tournaments, dubbed
he was regularly using dietary “High Rollerz BJJ,” aren’t
supplements and even steroids waiting around for a reversal.
when his deceased sister ap- The organization requires op-
peared to him in a dream. ponents to smoke a joint to-
“She said, ‘Don’t worry about gether before the start of each
it, it’s just weed. It’s natural. match. The tournament prize
You know your limits,’ ” says is a brick of pot. The audience
Mr. Moses, 26. is encouraged to light up, too.
.
ly
Fed Spread
The Federal Reserve has drained reserves from the banking
sector, creating the potential for greater volatility in funding
markets when demand for cash exceeds available supply.
Reserves held by banks at the Spread between Fed bench-
Fed have fallen mark rate and cost to borrow
in repo market
$3 trillion 5 pct. points
3.71 pct. points
4 on Sept. 17
2 3
2 the Fed’s first rate cut in a de-
1 1
0 the Fed would do. Markets be-
0 –1
2008 ’10 ’15 2017 2018 2019
Sources: Federal Reserve (reserves); DTCC, Federal Reserve, Goldman Sachs Global Investment
Research (spread)
the markets desk since 2012, former staffers said. Mr. Pot-
and Richard Dzina, head of fi- ter learned of the decision
nancial services. They had from Mr. Williams shortly be-
joined the New York Fed in fore he was to deliver a key-
1998 and 1991, respectively. note address in Hong Kong
People familiar with the mat- that had already been an-
ter said the exits had less to nounced.
do with particular policy dis-
putes than with tension over
day-to-day management is- Awkward moment
sues. At a going-away party at
The way Mr. Williams exe- the New York Fed’s headquar-
cuted the abrupt departures ters, Messrs. Potter and Dzina
rattled upper management and received an extended ovation
sank staff morale, current and that kept Mr. Williams waiting
offstage to address attendees.
“It was maybe three minutes,”
said one attendee. “It is hard
to describe how awkward the
air felt.”
Last month, the New York
Fed said Mr. Williams planned
to break the top job of over-
seeing markets into two posi-
tions—one to oversee the cen-
tral bank’s securities portfolio
and open-market operations,
and to implement monetary-
DAVID PAUL MORRIS/BLOOMBERG NEWS
policy decisions; and the other
to handle markets group oper-
ations and technology.
Mr. Williams, in the inter-
view, said the leadership va-
cancies were “in no way inter-
fering with the work we’re
doing, and our ability to do
our very best.”
Mr. Williams himself had
New York Fed President and previously roiled markets, un-
Chief Executive John Williams intentionally, in a July 18 pub-
Electrician Paul Roney dis-
covered yet another risk to
mixing weed and weights. A
few weeks ago, the 45-year-old
consumed a bit more than
usual and ran into a buddy at
the gym. He wound up forget-
ting to exercise altogether.
“You have to go straight-
away if you smoke a fattie,” he
advises. “Wait an hour and
you’re just going to be asleep
on the floor.”
One thing he likes, though,
is that it gives him the munch-
ies when it’s time to load up
on healthy fare such as egg
whites, boiled chicken and oat
bran. “You can eat all of your
diet food,” he says.
Ms. Nordin, the nutritionist
who emptied her freezer for
the habit, estimates that 5% of
her daily calorie intake is can-
nabis cookies, sold under the
brand Dr. Norm’s.
The siblings who run the
company say they named it af-
ter their late father, a derma-
tologist. They say they have
no idea what he thought about
the benefits of marijuana. He
did believe, however, that
laughter was the best medi-
cine.
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
lic speech on the eve of the
central bank’s quiet period be-
fore its July policy meeting.
He expounded on 20 years of
research that called for more
aggressive and pre-emptive
action to shore up the econ-
omy at any sign of weakness.
He had delivered similar
comments before. But the con-
text of these remarks—from a
top lieutenant to Fed Chair-
man Jerome Powell just before
cade—led markets to change
their expectations about what
gan anticipating the Fed would
cut interest rates by a half-
percentage-point, instead of a
quarter point, at the July
30-31 meeting.
Decisions to make
Hours later, the New York
Fed issued a rare clarification
that markets had misunder-
stood the speech. Mr. Williams
hadn’t meant to send a signal
about the size of the coming
rate cut.
Mr. Williams and Mr. Powell
must now lead their col-
leagues through a series of de-
cisions, including:
• when to let the Fed’s as-
set portfolio begin growing
again;
• whether to add additional
reserves, which would require
larger purchases of Treasurys;
• what mix of Treasury se-
curities to add;
• whether to replace the
Fed’s benchmark rate with
something more widely
traded;
• whether to launch a new
tool that could alleviate cash
crunches without daily ad hoc
injections, and how to design
it.
“Where the Fed left itself
vulnerable,” said Jim Vogel, a
rates strategist at fixed-in-
come broker FTN Financial,
“was to postpone all of those
decisions, and to do it so pub-
licly.”
—Liz Hoffman and Akane
Otani contributed to this
article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * NY Monday, September 30, 2019 | A10A

GREATER NEW YORK

NYPD Officer Killed in Bronx Shootout
Policeman was gun five times—are unclear.
Numerous shots were fired
patrolling a housing and Officer Mulkeen was shot
complexpronetogang three times, police said.
Police said the suspect, An-
violence;suspectdies tonio Williams, died at the
scene. The suspect, a 27-year-
BY CORINNE RAMEY old man with a criminal record,
AND BEN CHAPMAN was on probation for a narcot-
ics-related incident and had
A New York Police Depart- been convicted of burglary in
FROM LEFT: SETH WENIG/ASSOCIATED PRESS; NYPD

ment officer was fatally shot Rockland County, police said.

early Sunday while patrolling Officer Mulkeen lived in
a Bronx neighborhood that has Yorktown Heights with his
struggled with gang violence. girlfriend, also an NYPD offi-
The 33-year-old officer, cer working in the Bronx,
Brian Mulkeen, had served Chief Monahan said. Officer
nearly seven years on the Mulkeen graduated from Ford-
force, according to Chief of ham University, where he was
Department Terence Monahan. an accomplished member of
“A young man with a bright Investigators at the Edenwald the track and field team, ac-
future who courageously pa- Houses, where Officer Brian cording to the school.
trolled some of New York City’s Mulkeen, 33 years old, was New York City Mayor Bill
toughest streets has tragically fatally shot early Sunday. de Blasio said he met with Of-
lost his life,” Chief Monahan ficer Mulkeen’s family.
said Sunday morning. lic-housing development in the shootings, according to police. lice said. A physical struggle keen yelled, said Chief Mona- “He wanted to protect other
At about 12:30 a.m., officers borough’s Eastchester neigh- Officer Mulkeen and his escalated into a gunfight, ac- han, citing body-camera foot- people,” Mr. de Blasio said.
assigned to a Bronx anticrime borhood, police said. The offi- partner attempted to question cording to Chief Monahan. age. Chief Monahan said “And he put his life on the line
unit were patrolling around the cers were in the area because a suspect who fled, with the “He’s reaching for it! He’s aspects of the gunfight—includ- and he gave his life for all of
Edenwald Houses, a large pub- of gang activity and recent officers pursuing on foot, po- reaching for it!” Officer Mul- ing who fired Officer Mulkeen’s us.”

Sex-Abuse Suits Trash-Collection Changes Sought

BY KATIE HONAN

Detail Traumas
A bill that would create ex-
clusive zones for the commer-
environmental justice piece waste. and foremost,” said Mr. Rey-
that doesn’t necessarily mean Private carters travel to noso.
we need to do exclusive businesses all around the city, Supporters of the bill say
zones,” Mr. Reynoso, a Demo- and neighborhoods have more switching to exclusive carters

Children Endured cial-waste industry across the crat who represents neighbor- than 50 separate companies would have the largest impact
city could change before it is hoods in Brooklyn and Queens, servicing the area. Drivers can on the environment.

.
voted on next month, its spon- said in an interview. often clock long hours and “What we are seeing here is

BY CORINNE RAMEY doctor. The Boy Scouts said
AND TOM MCGINTY that the organization encour-
ages victims to come forward
One woman alleged that an and that it has changed policy
elementary-school teacher re- to safeguard against abuse.
peatedly put his hand up her Of New York’s 62 counties,
skirt while hidden behind a Erie had the most cases
us l,
sor said.
City Councilman Antonio
Reynoso said he is considering
taking out a portion of his bill
on
that would require private
trash collectors, or carters, to
bid on 20 zones within the
five boroughs, with a goal of
Those incentives include
making sure half of the private
carter industry’s trucks are
electric by 2030, or giving
more points in the bidding
process to more environmen-
tally friendly companies, he
said.
ly
travel long distances picking a deep system change,” said
up all of the trash on their Maritza Silva-Farrell, execu-
route. tive director of the Alliance
The new changes would for a Greater New York, who
create specific geographic supports the bill. “We’re going
zones that would eliminate to be reducing emissions, have
millions of miles of truck traf- fewer trucks in the streets,
fic each year, according to the and have more protection for

chalkboard, sometimes hitting filed—196. Those include 156
her with a plastic bat. A man naming the Diocese of Buffalo
al a
e
accused a social-service as the defendant and 28
worker tasked with driving against the Kenmore-Town of
him to court of abusing him in Tonawanda Union Free School
ci on
having a single company oper-
ating in each zone. The legis-
lation seeks to address envi-
ronmental and worker-safety
issues in the current system.
In New York City, the De-
partment of Sanitation collects
trash from private homes and
city buildings, agencies and in-
stitutions, like public schools
sanitation department. our workforce.”
Since introducing the bill in But the exclusive contract
May, Mr. Reynoso said he has aspect was a sticking point.
met with multiple people to It was the biggest change
find the best way to improve from the Department of Sani-

a car. Another man claimed District, where a former fifth-
that while he was hospitalized grade teacher has been ac-
at age 7, staffers sodomized cused of serial abuse.
him with a broomstick. A spokeswoman for the Di-
These are among the alleged ocese of Buffalo said new alle-
er rs
“We have other things that
the sanitation department
wants to offer or to talk about
that can really speak to the
and the city’s public housing
complexes. Commercial busi-
nesses use licensed private
trash haulers to pick up their
safety and environmental tation’s own 2018 proposal,
standards in the industry. which recommended having
“For me this is an environ- three to five carters servicing
mental justice legislation, first an area.
Business leaders feared that

victims in more than 700 law- gations would be investigated. having a sole carting company
suits filed since Aug. 14, when The diocese has said that since in each zone would increase
the state of New York opened a 2003 it has taken many steps the cost to pick up trash, and
one-year window during which to protect children. A spokes- a group of Manhattan busi-
m e

people who say they were sex- man for the school district ness-improvement groups sent
ually abused as children can said it takes misconduct alle- a letter to the City Council in
sue their alleged abusers no gations seriously and has been June saying the proposal
m rp

matter how long ago the abuse in communication with appro- would create a monopoly.
occurred. The law has already priate state authorities. “We think that this could
had financial impacts, with the The bulk of the suits are truly be a piece of landmark
Roman Catholic Diocese of against institutions, which of- legislation for the city of New
Rochester filing for bankruptcy ten have insurance or other York, but that it really needs
co Fo

this month, citing legal costs funds to pay settlements. The to be a nonexclusive system,”
and settlements. outliers are 16 lawsuits in Kathryn Garcia, the sanitation
A Wall Street Journal analy- which people have sued only commissioner, said in an inter-
sis of court records found 734 individuals, including fathers, view. “We do not want to give
lawsuits filed through Sept. 23, an older brother and a grandfa- monopolies to companies.”
JAMES SPRANKLE FOR THE WALL STREET JOURNAL

ther. In one lawsuit, a man ac- A single-carter trash pickup

cused his parents of abusing program was introduced in
him in their Staten Island home Los Angeles in 2017, with one
Defendants include beginning when he was age 3. company picking up trash
hospitals, churches, When the man reported it at from businesses and large
school, his mother brutally apartment complexes in spe-
summer camps, as beat him, the complaint says. cific zones.
well as schools. For some institutions The rollout of the system
named in lawsuits, the one- doubled the cost to pick up
n-

year window without statutes trash for some businesses

of limitations has proved hard overnight, said Aaron Taxy, di-
many filled with graphic de- to navigate. Many don’t deny rector of government and pub-
scriptions of childhood trauma. abuse may have occurred, but lic affairs at the Building Own-
no

Defendants include hospitals, say alleged perpetrators are Private carters travel to businesses all around the city, and neighborhoods have over 50 separate ers and Managers Association
churches, summer camps, as gone and the organizations are companies servicing the area. A new bill would create exclusive zones for the commercial-waste industry. Greater Los Angeles.
well as Catholic, Jewish, under new leadership.
Quaker and public schools “As politically correct as it
throughout the state. There are may seem on one side of the STATE STREET | By Jimmy Vielkind
also baseball leagues and mu- fence, once you are on the ac-
sic schools, after-school clubs cused side of the fence, it’s de-
and a martial-arts association.
Many lawsuits involve insti-
tutions that have previously
bilitating,” said Arthur Aidala,
a lawyer who works with the
Diocese of Brooklyn, which has
Republicans Squabble Over Campaign Funds
been accused of abuse. About been named in 84 lawsuits. A campaign vember elections allowed a dozen campaign-finance dis- “The facts are clear in this
550 lawsuits name one of the He said most electronic re- committee Democrats to capture the closure reports, including one case, and there are no con-
state’s Catholic dioceses, 40 cords of modern life—Twitter, controlled by Senate majority for the first filed in January. The SRCC re- flicts.”
name the Boy Scouts and 11 Facebook, cellphones, text mes- state Senate time in a decade. Ms. Young paid $50,000 to Ms. Young’s Mr. Buley and a spokes-
name Rockefeller University, sages—didn’t exist at the time Republicans challenged Mr. Flanagan’s committee in 2015. woman for Mr. Flanagan also
which has said a former doc- of the alleged abuse. “That has been ac- leadership after the elec- In court papers, Ms. noted recent spending by Ms.
tor abused patients. makes it difficult to figure out cused of refusing to repay tions, but lost a caucus vote. Young’s campaign treasurer, Young’s campaign committee.
The Catholic Church has what the truth is,” he said. $100,000 to former Sen. Mr. Flanagan soon nomi- Louis Proto, said the SRCC On March 11, the day Ms.
taken measures to address A spokeswoman said the Di- Cathy Young’s campaign be- nated a supporter to succeed repaid a $100,000 loan to Young formally resigned, her
abuse, including setting up ocese of Brooklyn can’t com- cause she tried to oust Sen- Ms. Young as SRCC chairman former Majority Leader Dean committee paid $50,000 each
funds to compensate victims. ment on pending litigation but ate Minority Leader John and removed her from her po- Skelos that also came on the to Tom Dunham and Joe
Rockefeller University has apol- has worked tirelessly to ensure Flanagan last year. sition as chairwoman of the eve of the 2014 election. The Sorbero, two former SRCC
ogized to victims of the former the protection of children. The allegation is included chamber’s Finance Committee. SRCC rebuffed Ms. Young’s employees who were close to
in a lawsuit filed this spring Ms. Young and her campaign requests for repayment be- Ms. Young but weren’t in fa-
Opening the Floodgates in state court in Cattaraugus committee’s attorney wrote cause of her challenge to Mr. vor with Mr. Flanagan.
County and spawned a con- letters to the SRCC demanding Flanagan, Mr. Proto said in (Messrs. Sorbero and Dun-
Of the more than 700 child sexual-abuse cases filed in New York tinuing legal fight that shows the return of the money. an affidavit. ham didn’t return calls seek-
since Aug. 14, nearly 550 target Catholic dioceses. the lingering resentment be- Ms. Young surprised her Attorneys for the SRCC ing comment.)
Cases by Catholic diocese Counties with the most cases tween a prominent Republi- colleagues when she an- say that Ms. Young’s 2014 Mr. Flanagan’s spokes-
can and her former colleagues nounced in February that she transfer wasn’t a loan, but a woman said the payments
Buffalo Erie that could deliver a blow to was resigning from her seat contribution. They say there were “questionable.” Mr.
156 196 the GOP’s campaign coffers. to take a position at Cornell is no contract memorializing Pantano said they were for
New York New York Cathy Young for Senate University the next month. the loan, and said it was only “professional services previ-
136 165 says the disputed money is Ms. Young didn’t return calls recorded in campaign-finance ously provided to the cam-
Brooklyn Kings the balance of a $150,000 seeking comment. disclosures as a loan because paign committee.” New York
84 loan to the Senate Republican As of July, Cathy Young Ms. Young, as chairwoman, law allows campaign commit-
94
Campaign Committee in the for Senate had $410,876 on directed SRCC staff to do so. tees to pay bonuses.
Rockville Centre Monroe days before the 2014 election. hand. The SRCC, which is at- “The facts and circum- Mr. Pantano said Cathy
47 49 Republicans won state Senate tempting to win seats in next stances attendant to the al- Young for Senate sued in or-
Rochester Albany seats that year, and Ms. year’s elections, reported leged loan are questionable, der to close the matter but
46 40 Young coordinated the politi- $269,301. The Democratic confusing, and shrouded wouldn’t say if she plans to
Albany cal efforts as the SRCC chair- Senate Campaign Committee within an operating environ- seek office again.
Nassau
40 woman. Mr. Flanagan was reported a $1.75 million bal- ment dominated by self-deal- Several Republican opera-
40
Syracuse elected conference leader the ance. ing parties,” SRCC lawyer Jeff tives and officials familiar with
20
following year. Campaign-finance records Buley wrote in a legal memo- the dispute said they believed
Note: Includes cases filed between Aug. 14 But Ms. Young was still in show the SRCC declared an randum filed on Sept. 20. it was motivated by spite.
Ogdensburg and Sept. 23.
Source: WSJ analysis of New York state court charge of the SRCC last year outstanding liability to Cathy Cathy Young for Senate
16 records when GOP losses in the No- Young for Senate in more than spokesman Phil Pantano said: jimmy.vielkind@wsj.com
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10B | Monday, September 30, 2019 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

Theaters Act
To Lock Up
Cellphones

GABRIELA BHASKAR FOR THE WALL STREET JOURNAL

BY CHARLES PASSY
Cellphone interruptions are
the bane of almost every per-
former. But now, more cultural
institutions and theatrical pro-
ducers in New York City are
embracing a way to curb the
use of the devices during
shows.
Namely, they are making
audience members squirrel
them away for the entire per-
formance.
Yondr, a company behind a
lockable case that is used to
store phones during shows, is
gaining acceptance in more
val, which begins Oct. 19. The
Shed, the new cultural venue
connected to Hudson Yards,
has also tapped Yondr for re-
cent shows featuring the Ven-
ezuelan performer and experi-
mental composer Alejandra
Ghersi, otherwise known as
Arca.
Also in the mix: pop legend
Madonna, who has put the
pouch system in place for the
current run of her “Madame
X” tour at the Brooklyn Acad- ‘Freestyle Love Supreme’ has become the second Broadway production to use the Yondr lockable pouch system, below.
emy of Music.
Artists and producers say bifurcate your attention,” said the onus is still on audience tainment world say it is hard
they are turning to Yondr for a Anthony Veneziale, one of the members to make sure the de- to imagine a time when every
variety of reasons. stars and creators of “Free- vice is turned off or set in si- show will go the Yondr route.

STEPHANIE AARONSON/THE WALL STREET JOURNAL

venues around town.
The case (or Yondr pouch,
as it is often dubbed) stays
with the theatergoer through-
out the performance and is
locked and unlocked with the
assistance of Yondr support
personnel.
“Freestyle Love Supreme,” a
show that combines hip-hop
and improvisational comedy,
has become the second Broad-
way production to use the
Yondr system. Dave Chap-
pelle’s 10-show Broadway en-
gagement earlier this year was
For starters, it is very much
intended to put an end to
those mid-show interruptions
from a ringing phone. It is also
about curbing piracy by mak-
ing sure audiences can’t re-
cord and share material that is
meant to stay within the the-
ater.
But some performers say
there is a larger motivation: It
is about getting audiences to
be truly tuned in to what is
happening on stage.
Unless a phone is locked
away, the temptation is always
style Love Supreme,” which
was conceived in partnership
with Lin-Manuel Miranda of
“Hamilton” fame and director
Thomas Kail. The show, cur-
rently in previews, opens Oct.
2.
Nevertheless, theatergoers
have their reservations about
the Yondr pouch. At a recent
“Freestyle Love Supreme” per-
formance, audience member
Cameron Deahl said: “The
minute I put my phone in it, I
wanted it back.”
But Mr. Deahl, a research
lent mode.
Yondr founder Graham
Dugoni says such issues
rarely occur within theaters.
And he says the company,
which was launched in 2014,
has seen considerable growth
of late.
“We’re in thousands of
shows a year,” he said.
The company declined to
reveal sales figures, though of-
ficials say the cost for concert
and show producers to use the
the show. system is generally $2 to $3 a
Other theatergoers point to seat. Yondr is finding a grow-
If anything, they say cell-
phones have their place in the
theater, at least in terms of
creating buzz for a show.
Think of the proverbial picture
shared on social media of an
audience member holding
their program.
Either way, the cellphone
has become “baked into” the
theater and concert experi-
ence, said Michael Cohl, a vet-
eran rock promoter who now
produces shows on and off-
Broadway, including the recent
run of “Bat Out of Hell—The

.
the first. there to check email or post analyst who lives in New York limitations with the Yondr sys- ing market in schools as well, Musical” at the New York City

Lincoln Center will work
with Yondr for select events
during its White Light Festi-
something on social media, City, also said he “appreciated
performers say. the idea of being more present
“These digital devices can in the moment” by the end of
on GREATER NEW YORK WATCH
us l,
ly
tem. One frequently cited ex- officials say. Center.
ample: Even if the pouch con- Still, theater producers and “There’s no stopping it,”
taining the phone is locked, others in the New York enter- Mr. Cohl added.

NEW YORK CITY The original plan to repair
damage caused by superstorm
L-Train Tunnel Work
al a
e
Sandy in 2012 called for a shut-
Ahead of Schedule down of the East River tunnel,
but in January Mr. Cuomo called
ci on
NEW JERSEY ported the incidents to police. CONNECTICUT UConn President Thomas
Police say they described a Katsouleas said while the risk
Two Child-Luring Kickoff Time Moved
bald, heavyset white man is low, the school wanted to
Attempts Reported wearing a light gray or white To Reduce EEE Risk take reasonable steps to re-
shirt. duce exposure to the illness.

Repairs to a subway tunnel
used by the L train between
Manhattan and Brooklyn are ex-
pected to be done by April, a
year after work started, ahead
that off in favor of the current
plan, which only requires work
on nights and weekends.
The L line is one of the city’s
most crowded. There are about
er rs
Police in Toms River are in-
vestigating two suspected
child-luring attempts.
The incidents occurred close
to one another on Saturday af-
Authorities released a photo The University of Connecti- Kickoff is now set for noon
of a late ’90s or early 2000s cut has changed the time of Saturday. The game was origi-
gray or silver SUV that may Saturday’s football game nally scheduled to start at 7
have been involved in the inci- against the University of p.m.
dents. South Florida as a precaution Earlier this month, Connecti-

of the 15-month projected time-
line, New York Gov. Andrew
Cuomo said Sunday.
400,000 rides daily, and more ternoon. Patrols have been increased against the potentially deadly cut recorded the second hu-
than half go through the tunnel. In both cases, children noti- in the area. mosquito-borne eastern equine man case of EEE in the state.
—Associated Press fied their parents, who then re- —Associated Press encephalitis. —Associated Press
m e
m rp

LESSONS IN LEADERSHIP
LUNCHEON
co Fo

A PRIVATE EVENT FOR BUSINESS EXECUTIVES

n-
no

Edward C. Byers Jr. Karl Horst Greg Welteroth

U.S. Navy SEAL Major General, U.S. Army (Ret.) Circle of Honor
Master Chief Petty Officer President & CEO of the Recipient
Special Warfare Operator Congressional Medal of Honor Founder of
Medal of Honor Recipient Foundation Welteroth Enterprises

October 9th 2019 at

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10:30 am to 2:00 pm: Speakers, Complimentary Lunch,
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Check-in begins at 9:30 am.
Dress code calls for Business Casual attire.

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Moving America Forward

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Monday, September 30, 2019 | A11

LIFE&ARTS
A Model, On
Her Own Terms
A Somali-born teen is fashion’s new It girl as
the business seeks greater diversity
BY RAY A. SMITH or in front of the camera is evi-
dent, but that is only part of what

I
owa teenager Ugbad Abdi
had just graduated from
high school in Des Moines
last year when she got a
message on Instagram that
would change her life.
Ms. Abdi, who had been posting
shots of herself in different
makeup looks, had drawn the at-
tention of a top modeling agency.
But it wasn’t just her striking
looks or her height that made her
compelling. Ms. Abdi also happens
to be a Somali-born Muslim who
wears a hijab—which made her
even more compelling.
“There are women in the world
that look like Ugbad and dress like
Ugbad and our business of fashion
should really be concerned with
addressing all people that con-
sume clothes and beauty,” said
Kyle Hagler, president of the New
York division of Next Management,
which signed her last year.
Increasingly, the fashion busi-
ness is showcasing models with a
makes her an exceptional model,”
said Anna Wintour, editor-in-chief
of Vogue magazine and artistic di-
rector and global content adviser
of Condé Nast. “From the begin-
ning, she has used her platform to
challenge stereotypes about Mus-
lim women and open doors for
others.”
Few people are more surprised
by her sudden rise than Ms. Abdi
herself, who has retained a teen-
age awe while navigating her as-
cent. “I’m in American Vogue Cou-
ture Story while wearing my
hijab?!!?!,” she posted to Insta-
gram in March. She had never
been to New York until last year,
when she met with agency execu-
tives to talk about signing on.
“From there, everything hap-
pened,” she said, describing the
entire experience as “amazing.”
She recalls the giddy moment
‘She has used her

.
wider range of ethnicities, races,

ly
sizes and ages, finding it makes platform to challenge
business sense to better reflect a
customer base that has long been
stereotypes,’ says
more diverse than the models fea- Vogue’s Anna Wintour. on
tured on runways. Ms. Abdi’s rapid
ascent is a prime example: In less
than a year, she went from Iowa
high schooler to fashion It girl. while riding through New York’s
us l,

In January, she made an atten- Union Square in a car with her

tion-getting runway debut at Val-
entino’s couture show in Paris.
Since then, she has walked the
runway for brands including Bur-
agent when she saw herself in an
al a
e
ad for Fendi plastered on a giant
billboard. “I almost freaked out,”
she said. She later went back to
ci on

berry, Chanel, Fendi and Marc Ja-
cobs. She was in Vogue in April,
August and its all-important Sep-
tember issue.
During New York Fashion Week
take photos, including one of her
looking at herself in the ad, which
she posted to Instagram. “That Clockwise from above: Ugbad Abdi sits outside after a Michael Kors show in
was a big moment for me,” she New York; at Burberry in London; getting her makeup done at Michael Kors.
said. “I had to post that.”
er rs

earlier this month, Michael Kors
booked her exclusively for his
show, where she modeled the
opening look. She went on to walk
“Everything that has happened
so far to this moment, it’s like, all
a dream come true,” Ms. Abdi said
in an interview after the Michael
m e
and thin. Hardison, one of the pioneering
More East Asian models began black runway models of the 1970s.
to appear on runways beginning in Business reasons underlie the
2011, as China’s economy opened changes. Modest fashion, for in-

the runways of Burberry, London Kors show. up. In 2017, plus-sized model Ash- stance, represents a big opportu-
Fashion Week’s biggest show, for a The fashion industry’s efforts to ley Graham appeared in a Michael nity, especially in the Middle East.
second time, and then in Milan at diversify have been slow to evolve. Kors show, paving the way for Muslim spending on clothing is ex-
m rp

Max Mara and Fendi. The 19-year-
old is currently at Paris Fashion
Week, which ends Oct. 1, and has
appeared in big shows including
Lanvin and Dries Van Noten.
In the 1970s, several black models
became popular, alongside civil-
rights activism and the “Black is
Beautiful” movement. In 1974, Bev-
erly Johnson became the first
co Fo
other curvier models.
At the same time, a growing
number of mainstream clothing
brands, from lingerie brand Aerie
to department store Macy’s, have
pected to reach $361 billion by
2023, according to Thomson Reu-
ters.
Ms. Abdi’s family fled from war-
torn Somalia to a Kenyan refugee

Ms. Abdi and her agency em-
brace her Muslim faith, explaining
to casting directors, stylists, and
photographers that her religious
observance means she won’t wear
skin-baring clothing or reveal her
hair.
“Ugbad’s grace on the runway
black model to appear on the
cover of American Vogue. Iman
achieved stardom starting in the
mid-’70s, followed by Naomi
Campbell, Veronica Webb and Tyra
Banks in the ’80s and ’90s. But the
dominant look in modeling re-
mained white, as well as young
n-
been featuring more diverse
women in their advertising, posi-
tioning diversity as a selling point.
And beauty brands’ advertising
and social-media campaigns now
feature more celebrities, models
and influencers of color, fueled in
part by the launch of Rihanna’s in-
clusive Fenty Beauty
by Rihanna line in
2017.
Of 221 major fash-
ion shows held in
February and March
camp when she was small. A U.N.
refugee agency relocated her fam-
ily to Des Moines when she was 9.
In high school, people encouraged
the tall, thin teen to look into
modeling. She admired Iman, also
from Somalia, and Halima Aden, a
hijab-wearing Muslim model IMG
signed in 2017.
After she signed with Next, the
agency was upfront with industry
professionals about Ms. Abdi’s
wish to keep her head covered and
not wear revealing clothing.

in New York, Lon- Casting director Patrizia Pilotti

don, Milan and Paris, tapped Ms. Abdi for her debut at
nearly 40% of the the Valentino couture show. “We
models cast were didn’t book her because she was
no

nonwhite, a record, Muslim. We booked her because

according to the- she was beautiful,” she said.
FashionSpot, a fash- Soon after, major industry pros
ion blog that has clamored to book her. “Whether
tracked model diver- it’s size or age or background, gen-
sity since late 2014. der, religion, I don’t think it should
More plus-size, older be a stumbling block for a de-
and transgender and signer to make people look re-
nonbinary models markable,” said Mr. Kors.
have appeared on “People have been getting really
catwalks in recent creative with things, designing
seasons. certain scarves for me, which is
COUNTER CLOCKWISE FROM TOP: ANDRE D. WAGNER FOR THE WALL STREET JOURNAL (2); GETTY IMAGES (5); SIPA USA/ASSOCIATED PRESS

“Inclusion is hap- really nice,” said Ms. Abdi. “They

pening right now sometimes put a lot of hats on me.
and may it con- So it’s really like we can do any-
tinue,” said Bethann thing.”

As Fashion Seeks More Diversity, New Models Stand Out

Adwoa Aboah Freckled faced, with
a buzzcut and a jeweled tooth, Ms.
Aboah has walked the runway for
labels including Chanel and Dior and
appeared in campaigns for brands
including Burberry, Chanel, Giorgio
Armani and Revlon. She is also a
contributing editor at British Vogue,
and founded an online platform for
young women called Gurls Talk.
Valentina Sampaio The 22-year-old
transgender model from Brazil made a
splash over the summer when she was
hired as Victoria’s Secret first trans
model. She joins a growing number of
transgender models being tapped by
fashion and cosmetics brands. She
appeared on the cover of Vogue Paris
in 2017 and signed deals with brands
including L’Oréal and Dior beauty.
JoAni Johnson The 67-year-old model
has appeared in shows for brands
including Tommy Hilfiger and Deveaux
New York and starred in campaigns for
brands including Sephora and Rihanna’s
Fenty. A casting agent saw a 2016
photo of her by a street style
photographer and cast her in an Allure
video on aging gracefully. A new
modeling agency signed her soon after.
Anok Yai The 21-year old, Egyptian-
born and of Sudanese descent, has
become a rising star and part of a
wave of darker-skinned models of
African descent expanding the range of
brown skin shades on runways. In a
Vogue YouTube interview, Anna
Wintour singled out Ms. Yai and Ms.
Abdi as having “had very very strong
seasons” for the Fall 2019 shows.
Paloma Elsesser Influential fashion
makeup artist Pat McGrath
selected Ms. Elsesser, while
studying literature and psychology
at the New School, to star as a
muse for her new makeup line in
2016.
The 27-year-old has since
appeared in fashion magazines, on
runways and in campaigns.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A12 | Monday, September 30, 2019
A Lifelong Fitness Fan Finds a New Test in Tap
This retiree puts in her hours at her gym, but she’s happiest when she’s moving her feet with friends in a dancing class
CHRISTINE DIBONA figured tap
dancing would be a breeze, even at
69, after a lifetime of exercise. In-
stead she calls it the toughest
workout she’s ever tried.
Ms. DiBona was recruited by her
friend of 40 years, Rebecca Amo-
roso, to join an adult tap group at
Inspire Dance Centre near their
homes in Southold, N.Y., on Long
Island’s North Fork.
After retiring from her job as a
broker for a corporate insurance
company in 2010, Ms. DiBona em-
braced a try-everything attitude.
She signed up for art classes, piano
lessons and added dance to her
seven-day-a-week workout routine.
“After 45 years of working hard,
I’m now playing hard,” she says. “I
realized there are so many things I
love but never had time for.”
She says playing the piano has
helped improve her tap rhythm
and both activities help sharpen
her memory. In 2014, Ms. DiBona
suffered an episode of shingles and
had to stop dancing for six
months. Exercise, particularly
dance, she says, has been crucial in
helping with lingering nerve pain.
“The routines work balance and
agility, but they also make you
think,” she says. “We all mess up a
lot, but we don’t take it too seri-
ously. We laugh a lot in class.”
The adult class includes seven
regulars—all retired women in
their 60s and 70s. They often go to
lunch together after class. Their
instructor, Meagan Loring, asked
the group if they’d like to partake
in the studio’s recitals, but they
kindly declined.
“We tap for the pure joy of it
without pressure or costumes,”
Ms. DiBona says. “Though some-
times after a few glasses of wine,
Rebecca and I will tap after dinner
for our husbands.”
The Workout
Ms. DiBona attends an hourlong
adult tap class every Monday af-
ternoon. A warm-up focuses on an-
kle strengthening, balance exer-
cises and single-sound movements
including toe taps, heel digs, toe
drops and heel drops.
The women start with three to
four short dance combinations
that help with memorization. They
move across the floor in groups of
two or more doing different tap
steps that will appear in longer
routines.
It’s Never Too Late to Dance
As we age, exercise becomes
more important. Certain types of ex-
ercise may give both our mind and
body a boost, says Joe
Verghese, director of
the Montefiore Ein-
stein Center for the
Aging Brain in the
Bronx, N.Y.
Studies have
shown that gen-
eral exercise can
improve cognitive
function, but some re-
search also suggests that
dance in particular can improve
brain health.
no
Dr. Verghese helped lead a study
with researchers in Japan that
found ballroom dancing and learning
to play a musical instrument im-
proved memory in seniors with mild
cognitive impairment syndrome, a
precursor to Alzheimer’s disease. He
is currently coleading a pilot study
comparing the cognitive effects of
AIRMAIL | SCOTT McCARTNEY
An Airline Alliance Mix-Up
ALEXANDER HASSENSTEIN/GETTY IMAGES
Lufthansa and United are both part of the Star Alliance, but the computers of airline partners don’t always
communicate perfectly with one another.
WHAT’S YOUR WORKOUT? | JEN MURPHY
on
Christine DiBona, above right and middle bottom, attends an adult tap class in Southold N.Y. She works out at home with her husband, below.
Ms. Loring choreographs longer
routines that the group learns and
us l,
builds on over a month. She re-
cords the routine so the women
al a
e
can practice at home.
Ms. DiBona works out every day
in her home gym, usually with her
ci on
husband, Henry Saraceni, who is
also retired. She does 30 to 45 min-
utes of cardio, alternating between
the treadmill, StairMaster and re-
cumbent bike. Four days a week
er rs
she tacks on a full-body strength
workout using a multifunction
weight machine. “My gym routine
is repetitive,” she says. “I like that
m e
tap engages your whole body and
your brain. You can’t zone out.”
Post-workout, she spends 20
m rp
minutes stretching with resistance
bands and a vibrating foam roller.
co Fo
group dance classes with treadmill
walking.
“Most dance studies have looked
at ballroom dancing. But there
is no reason to think that
other forms of dancing
might not be beneficial,”
he says. “Many other
dance forms include
the physical, cognitive
and social aspects that
have been hypothesized
to be responsible for the
n-
cognitive benefits of dance.”
A group setting is more
conducive to learning, Dr. Verghese
says. “The social interactions may
play an important factor in reducing
cognitive risk, as well as promoting
adherence,” he adds. “But if there
are logistical reasons that prevent
one from attending class, virtual
sessions might fill the need.” He
cautions that all seniors should be
medically cleared before they start a
dance program.
THE WALL STREET JOURNAL.
LIFE & ARTS
BESS ADLER FOR THE WALL STREET JOURNAL (3)
.
ly
She often mixes in
yoga poses.
The Diet
Breakfast alter-
nates between non-
fat Greek yogurt,
avocado toast and
a veggie egg white
omelet. Lunch is
typically tuna fish
with olives. Ms. Di-
Bona says that
when the couple
was still working
they never had din-
ner together.
“Now we wake
up and the first
thing we talk about
is what we should
cook for dinner,”
she says. The cou-
ple eats fish three
nights a week.
“We’re both Italian
and used to eat
pasta every day,
but now we indulge
once every other
week,” she says. Her husband
loves red sauce and she prefers ol-
ive oil and garlic, so they always
prepare two separate dishes.
“We drink a lot of wine—Italian,
of course,” she says. “He won’t buy
Long Island wines.”
The Gear and Cost
She pays $150 for a 10-class
punch card at Inspire Dance Cen-
tre.
Her tap shoes can cost any-
where from $30 to $300. She is a
fan of Capezio Mary Jane-style
flats ($60). She invested around
$20,000 in her home gym.
The Playlist
“Everyone thinks we dance to
show tunes, but Meagan puts on
Motown, rock, Sinatra,” she says.
Q:
I just had an experience portion of my original round-trip ticket
with United Airlines but that is a small fraction of the last-
and Star Alliance that I minute ticket I was forced to purchase
think is part of the at the airport. Any thoughts?—Sharon
same concern you ad- Silver, Los Angeles
dressed in your
[Aug. 28] article. I
booked with United for flights operated
by Lufthansa to Europe and back.
A: I’ve found airlines are ridiculously
difficult when it comes to refunds.
The finger-pointing you’ve experienced
When I got to the airport in Hungary to is far too common. Even when only one
return home to LAX, the person at the airline is involved, carriers are slow to
ticket counter was unable to print my part with the money they owe you.
boarding pass. They could see my Congress has even stepped in oc-
ticket in the system, including casionally, such as requiring that
seat and special meal, but were airlines refund baggage fees if
unable to print. I spent almost they lose your bag. Seriously.
two hours with customer service Your situation involves a lot
who tried to contact Lufthansa more money than a baggage fee. I
and United to resolve the issue. reached out to United and the airline,
Finally, after numerous attempts, I when presented with the situation, did
was told that in order to not miss the refund the difference you were owed,
flight I had to buy the ticket again to plus $700 in travel vouchers for the in-
print the boarding pass. They blamed it convenience. “I’m afraid we won’t know
on bad computer communication be- what caused the problem with the orig-
tween United and Lufthansa and said it inal check-in, since the ticket has been
wouldn’t be a big deal to get the refunded,” spokesman Charles Hobart
money back since clearly it was just a says. “This makes it challenging to de-
computer glitch. I paid $4,195 at the termine whether Lufthansa had control
gate for a one-way business ticket on when they were trying to check-in. Re-
July 21. gardless, it’s all been settled.”
I have been fighting with United and
Lufthansa for the money back ever Subscribe to Scott McCartney’s Middle
since. So far Lufthansa has blamed it all Seat newsletter at
on United. They have refunded me a WSJ.com/newsletters.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
BY EDWARD ROTHSTEIN
‘THE COLMAR TREASURE” sounds
New York
like a thriller combining an exotic
place with a promise of chests
bursting with jewels and bearer-
bonds. Put that phrase together
with “A Medieval Jewish Legacy,”
as in the title of an exhibition at
the Met Cloisters, and you might
also suspect an unseemly associa-
tion is being made between those
riches and the nature of Jewry’s
medieval legacy.
Neither association is accurate—
and the Met is not entirely respon-
sible, since the word “treasure” has
long been associated with these ar-
tifacts. But anyone anticipating
spectacular unveilings is bound to
be disappointed. “Colmar” here re-
fers to a medieval village in Alsace,
and the “treasure,” arrayed in half
of a small gallery at the Cloisters,
includes items as mundane as but-
tons and belt-hooks.
These artifacts inspire gasps
less for their opulence than for
their origins. And the catalog by
the Cloisters’ senior curator, Bar-
bara Drake Boehm, should be read
for a larger context. Ms. Boehm
was partly responsible for the
Met’s 2016 exhibition about medi-
eval Jerusalem, which distorted
the city’s history with myths of
harmony under Muslim rule. There
is none of that here, though there
is a related misunderstanding
about cultural coexistence.
The Colmar Treasure, we learn,
was accidentally discovered in 1863,
during renovations to a confec-
tioner’s building on what was once
the Rue des Juifs. Some artifacts
disappeared; some were sold and
resold; and the surviving collection
is divided—some pieces held by
Colmar’s Musée Unterlinden; others
by Paris’s Musée de Cluny, from
which this show is drawn.
The most stunning object in the
cache—which includes more than
FROM RIGHT: MUSÉE DE CLUNY/MUSÉE NATIONAL DU MOYEN ÂGE/RMN-GRAND PALAIS/ART RESOURCE, NY (2); THE METROPOLITAN MUSEUM OF ART (2); BIBLIOTHÈQUE MUNICIPALE, COLMAR
300 silver coins, 14 finger rings of
gold and gilded silver, and a silver
brooch with precious stones—is a
gold Jewish ceremonial wedding
ring. It is crowned by a miniature
filigreed building (Jerusalem’s Tem-
ple) with a hexagonal pyramidal
roof bearing the Hebrew “Mazel
tov” (Good luck or congratulations).
But why were these objects hid-
den, as others were throughout the
region? We see a 1548 “bird’s-eye”
woodcut of Colmar by Sebastian
Münster, which shows eight
churches within the city walls but
no Jewish presence. Yet the town
had had a synagogue as early as
1279. In the early 14th century, Jews
expelled from French territories set-
no
THEATER REVIEW | TERRY TEACHOUT
Unforgettable Performances
In an Unremarkable Drama
OLD ACTORS never die,
they just start appearing in
old-actor plays, of which
there are two kinds: feel-
good old-age-isn’t-for-sissies
weepers like “On Golden
Pond” and harsh old-age-is-
a-shipwreck dramas like
“The Waverly Gallery.” Flo-
rian Zeller’s “The Height of
the Storm,” which has trans-
ferred to Broadway after a
successful West End run, is
a play of the first kind
dressed up to look like a
play of the second kind.
Stripped of its over-elab-
orately Pinteresque mystifi-
cations, “The Height of the
Storm” appears to be about
a famous writer suffering
from dementia (Jonathan
Pryce) who hasn’t done
right by his loyal, long-suf-
fering wife (Eileen Atkins).
Will she stick with him to
the bitter end? (Yes, other
interpretations of the play
are absolutely possible, but
Monday, September 30, 2019 | A13
LIFE & ARTS
EXHIBITION REVIEW
The Colmar Treasure:
Troubled Trove
At the Met Cloisters, a cache of items hidden by persecuted Jews in
France needs more context to truly shine
Jewish ceremonial wedding ring
(c. 1300), above; jewel box (second
quarter 14th century), left
the 13th century—affixed to Col-
mar’s St. Martin’s Church showing
a Jew, wearing his often-mandated
pointed hat, lewdly entwined with
a “horned porcine Devil” (an im-
age known as a “Judensau”).
In the exhibition, the massacres
become sudden eruptions against
Colmar’s “Jewish citizens”—an
anomalous characterization. In his
encyclopedic history of the Jews,
Salo Wittmayer Baron notes that
medieval Jews were not citizens but
“serfs” under the protection and au-
thority of the ruling powers, subject
to special taxes and demands ac-
cording to the Justinian Code man-
dating the servitude of the Jews.
The history then, is oddly un-
moored. Matters become more con-
fused because the Met adds items
.
to the Colmar artifacts. Alongside a
ly
simple silver stylus found, for ex-
ample, the Met shows a far more
interesting 14th-century ivory writ-
on ing tablet, suggesting that some-
thing like it might have once been
Page from part of the treasure. A nondescript
a mahzor hasp of a lock is accompanied by
(first half 14th an inlaid jewel box for the same
us l,
century), below reason. (Adding to the awkward-
left; double cup ness in this context, the box fea-
al a
e
(second quarter tures a swastika design—created,
14th century), below of course, long before the symbol
center; florin of Louis was appropriated by the Nazis—
ci on
of Hungary (1342- here said to have been “emblematic
53), below right of good fortune.”) The Colmar
Treasure is thus “buried” among
tled in Colmar and other trading never lived to retrieve them. more elaborate artifacts; its par-
cities. Before these objects were The catalog cites a priest’s ticularity gets muddled. It would
er rs
hidden, Colmar had a synagogue, a account from a few de- have been better to display
Jewish school and a ritual bath. cades later, describing the similarly hidden “treasures”
Then, in 1347, the Black Death massacres: “Many thou- from other towns.
struck Europe. Jews were widely sands were burned ev- But there are compensa-
m e
named as its cause. In Colmar a erywhere, indiscrimi- tions. Ms. Boehm’s interpreta-
Jewish man confessed under tor- nately”; expelled Jews tions of some artifacts are
ture to poisoning were often recaptured subtly revealing. The objects—
m rp
the wells. In 1349, and “stabbed to death or coins aside—are intimate, per-
expecting the drowned.” Outside Col- sonal. Their owner, Ms. Boehm
worst, Jews hid mar’s gates was the suggests, was a woman who ap-
valuables. They “Grave of the Jews.” Inside preciated the whimsy of a belt
hook with a begging dog—one of
co Fo
the objects—or the sensuality of a
dangling silver belt (of which only
pieces remain).
And along with the striking wed-
ding ring is another with an oval-
the gates, property was confiscated shaped onyx, “highly unusual
and religious texts dismembered: among medieval rings.” Onyx, Ms.
We see endpapers from a Hebrew Boehm notes, was believed to affect
prayer book used to bind a 15th- dreams and allow conversations
century theological text from Col- with the dead. The band of this ring
mar’s Dominican library. is decorated with an image of
Ms. Boehm recounts these facts clasped hands and a Latin motto
without real explanation. She also that alludes to visions of a lost love.
unconvincingly suggests that be- The ring may be then an intimation
n-
forehand, Colmar’s Jews experi- of love outlasting death. As hidden
enced tolerant coexistence. It goes by its doomed owner, it still is.
unmentioned that the Black Death
massacres were just more extreme The Colmar Treasure: A Medieval
versions of killings that had taken Jewish Legacy
place over centuries. And though The Met Cloisters, through Jan. 12,
she notes some details incompati- 2020
ble with coexistence, she leaves
them unexamined, including a gar- Mr. Rothstein is the Journal’s
goyleish sculpture—possibly from Critic at Large.
this one strikes me as the mances of its stars, borders
most believable of the lot.) I on the miraculous. It will be
give Mr. Zeller credit for a long time before I forget
not being obvious about the what he has done with the
denouement, but beyond closing seconds of the play,
that “The Height of the in which we watch Mr. Pryce
Storm” has little to offer cast off the last remaining
save the opportunity to see ropes tying him to the
two great actors in the fin- shores of reality. Everything
est possible form. Not that that first-class acting and
they have much to work directing can do for a play
with, but it is glorious to has been done for “The
watch Mr. Pryce and Ms. At- Height of the Storm,” but
kins, both of whom have none of it, I fear, matters
been absent from Broadway very much in the end: It’s
for far too long, wringing still an empty vessel.
the maximum amount of
juice out of the minimum The Height of the Storm
amount of script. Manhattan Theatre Club,
Anthony Ward’s ultra- Samuel J. Friedman Theatre,
genteel dark-shadows coun- 261 W. 47th St. ($79-$169),
try-house set is…well, what 212-239-6200/800-432-7250,
it is. Far more impressive is extended through Nov. 24
what Jonathan Kent has
done with it. He is a director Mr. Teachout, the Journal’s
JOAN MARCUS
of supreme distinction who drama critic, is the author
rarely works in New York, of “Satchmo at the
and his staging of Mr. Waldorf.” Write to him at
Zeller’s play, like the perfor- tteachout@wsj.com. Eileen Atkins and Jonathan Pryce in Florian Zeller’s ‘The Height of the Storm’
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

SPORTS
The NBA Ref Who Found Religion
Steve Javie planned to retire somewhere warm after a long career as a referee. Then he enrolled in a Catholic seminary.
BY BEN COHEN

Newtown, Pa.
Near the end of his long career
as an NBA referee, Steve Javie
took a summer vacation with his
wife. They decided to burn his un-
holy amount of frequent-flier miles
and Marriott points on a trip to
Saint Thomas. He was thinking
about retirement, and this seemed
like an ideal place to settle down.
Javie could play golf, hit the beach
and live in a tropical paradise.
It did not quite work out that
way. Instead he would spend the
next seven years committing him-
self to Catholicism.
“The calling comes and you go,
‘Uh oh, I gotta listen,’ ” he said.
Javie officiated his last NBA
game in 2011. He soon began
studying at his local seminary. He
was recently ordained as a deacon
by the Archdiocese of Philadelphia.
And this unexpected turn of events
is how he found himself in church
one Sunday morning wearing elab-
orate vestments to deliver a hom-
ily. He began with a confession.
“I’m a sports guy,” he said.
Javie comes from a long line of
sports guys. The son of an NFL
referee, he played and umpired mi-
nor-league baseball. When he
eventually chose basketball, Javie
had a 25-year career in the NBA

SARAH WEBB/CATHOLIC PHILLY

and consistently ranked as one of

.
the league’s top officials. “He was

ly
the best referee I ever worked
with,” said his former colleague
Joey Crawford, “and I worked with
everybody.” on
Crawford says that referees
must have unimpeachable judg-
ment, steady control of the game Steve Javie was one of the NBA’s top refs. When he retired, he became a rules analyst on TV. He also went to a Catholic seminary and became an ordained deacon.
and deep knowledge of the rules. A
us l,

good ref has one or two of those

three traits. “He had all three,” he Javie” was unusually qualified for to be as qualified as priests,” said much in school. Kelly Anderson, an yet. Javie was assigned to his local
al a
e
said. But even the best refs are this unlikely vocation. He wasn’t Michael Pascarella, a deacon in the assistant professor of biblical parish here in the Philadelphia
prone to mistakes, and those er- just a sports guy. He was also a re- Archdiocese of Philadelphia’s of- studies, never would have known suburbs, and he’s learning there
rors can follow them forever. ligious guy. fice for clergy. “With all the chal- about Javie’s work with Michael are some differences between
ci on

“You’re a scumbag for the rest of When a bum knee forced Javie lenges facing the church today, we Jordan, Kobe Bryant and LeBron Catholic deacons and NBA refer-
your life,” Crawford said. “Steve is to hang up his whistle at the age need competent, qualified men James if one of his classmates ees. He used to be told that he was
not a scumbag. He’s the farthest of 56, he needed something else to serving in this role.” hadn’t mentioned it. She didn’t blind, for example, and now he’s
thing from it. Players and coaches do, and his friends were not en- There are nearly 20,000 dea- think about it again until she was free to wear reading glasses.
and people in our league have a tirely surprised when Javie de- cons in the U.S., and they have out to dinner one night and While nobody was excited to
er rs

different attitude about who we cided to spend his retirement be- many of the same responsibilities glanced at the television during an hear from him in NBA arenas, hun-
are and what we do. Steve really coming a deacon. They knew that NBA game on ESPN. She was not dreds went silent in church on a
screwed that one up.” he attended daily Mass and had expecting to find herself staring at recent Sunday morning here. It
Javie is still the face of NBA become more devout toward the someone she knew from St. was time for Javie’s homily.
Javie officiated his last
m e

refs even in retirement. As the end of his career. What did shock Charles Borromeo Seminary. Javie had been away on a golf
rules analyst for ESPN, he remains them was how long it would take NBA game in 2011. He “Oh my god, that’s my student!” trip with NBA refs earlier in the
a constant presence on television, to make a lifetime commitment. she said. “I almost fell off my week thinking about what he
m rp

a floating head with unmistakable “Seven years,” Javie said.

soon began studying at chair. And then I looked him up on might say to his congregants. His
slick hair who explains question- “Seven years?” Crawford re- his local seminary. Wikipedia.” inspiration came while he was
able calls. plied. His graduating class had to searching for an errant shot. In-
There is something oddly reli- It turns out there are few places choose one of the new deacons to stead he found another golfer’s
gious about the whole thing. The in the world where the process of represent them on the altar during shank. When he picked up that
co Fo

NBA summons Steve Javie to in- becoming a deacon is as demanding as priests. They even agree to a their ordination mass in June. ball, he noticed there was a mes-
terpret the rules for the masses. as it is in the Philadelphia diocese. vow of celibacy if their wives pre- They picked Javie. sage on it. He still didn’t have his
He’s the closest thing there is to a The application lasted an entire decease them. Javie is a typical When he gave his first homily ball, but now he had a sermon.
basketball deacon. year. His reward for being accepted: deacon in most ways: 95% are the next day, Crawford was there Javie reached for that previ-
The idea of becoming an actual six years in a Catholic seminary. older than 50 and 92% are mar- to see his old colleague in action. ously lost golf ball in his pocket on
deacon was not something that Javie took classes in everything ried, according to U.S. Conference “It was like he’d preached for 30 Sunday and read it to his church:
crossed his mind until very re- from the history of the church to of Catholic Bishops data. But in years,” Crawford said. “I told him “I once was lost, and now I’m
cently. As he put it: “My Bible the science of preaching as he some ways, he’s an outlier: 11% afterward: The next time I come to found.”
used to be the sports page.” earned his master’s degree in the- have graduate degrees, and closer something like this, you’ll be the “I really believe that searching,
But his old colleagues insist the ology. He says he’s never studied to 0% are professional referees. Pope.” finding and rejoicing relates to our
man they used to call “Father so hard in his life. “Deacons need But his old job didn’t come up He’s not exactly in Vatican City Gospel reading today,” Javie said.
n-

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
<0 1 2 3 4 5 6 7 8 9 10 11 12 13 7 Play miniature 32 Film role for
50s Edmonton
d t
golf Chris Hemsworth
no

Vancouver
Vancouver Calgary
ary
0s 14 15 16
40s 10s
8 Sound in a 33 Lively dances
30s Winnipeg
p 17 18 19 canyon 34 Hideous
ttl 30s 50s
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SQUEAKY CLEAN | By Barbara Lin 28 Son of Isaac 52 Rose holder
29 Online alias 53 Scratches (out)
U.S. Forecasts City
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Tomorrow
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54 Member of the
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Atlanta 95 72 s 91 71 s Portland, Maine 60 46 s 70 61 c Jakarta 94 76 pc 92 76 pc 10 Huff 37 Texas governor 60 Major pineapple
company team, on 58 Golf club
Austin 94 75 pc 95 73 pc Portland, Ore. 61 39 pc 65 41 s Jerusalem 81 62 s 80 60 s 14 Preface Abbott scoreboards employee
Baltimore 76 64 c 84 68 s Sacramento 68 45 s 74 44 s Johannesburg 78 49 pc 68 46 pc 61 Fictional lover
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Boston 64 54 s 78 67 pc Salt Lake City 58 37 s 58 38 s Madrid 86 53 s 81 50 pc exuberant from Verona Previous Puzzle’s Solution
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D O E N I K E T H E R E
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nominated 2016 WILLIAMS, ASTON MARTIN, KIMBERLY-CLARK,
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New York City 71 62 c 79 69 pc Dublin 56 50 r 54 39 pc Warsaw 62 49 r 62 57 pc at the contest answer, like the theme entries a
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 85 71 pc 86 71 pc Edinburgh 55 43 c 52 35 pc Zurich 67 47 pc 72 53 t company named for its founders.

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Silicon Valley Goes Soft
I miss Travis
Kalanick.
Sure, the for-
mer Uber CEO
was known to
attack col-
leagues in the
INSIDE
boardroom
VIEW
and berate his
By Andy
drivers from
Kessler
the back seat.
And yes,
when I met him in 2013, he
was pacing around with a golf
club looking as if he wanted to
break a window in his confer-
ence room.
But he told me the story of
when Uber received a cease-
and-desist order from the San
Francisco Municipal Transpor-
tation Agency. Did you cease?
I asked. “No.” Did you desist?
“No” he repeated, asserting
that Uber is perfectly legal,
and that the agency didn’t
have jurisdiction anyway. That
was a bold move—just the
kind that Silicon Valley is
missing these days.
I’m not condoning the cul-
ture that festered under Mr.
Kalanick. He famously wrote
an email to the “Uber Team”
before a Miami off-site meet-
ing in which he advised,
among other things: “Do not
throw large kegs off of tall
buildings.” It isn’t bad advice,
but it shows he had a lot of
growing up to do—much like
the 22-year-old Mark Zucker-
berg, whose card read: “I’m
CEO, Bitch.” Uber during his
tenure was also known for
shrugging off sexual-harass-
ment claims. Mr. Kalanick was
replaced for a reason.
The problem is that too
many in the media don’t dis-
Brazil’s Market Revolution
Brazilian in-
flation is now
around 3.5% a
year, and real
interest rates
have dipped
AMERICAS to between
2% and 3%.
By Mary
Credit-de-
Anastasia
fault risk is
O’Grady
easing, the
stock market
is climbing, and forecasts for
growth are improving—though
still well below what Brazil
needs to become a developed
country.
This brighter outlook, after
nearly three years of reces-
sion, began during the presi-
dency of Michel Temer, who
took over after Workers’ Party
President Dilma Rousseff was
impeached in 2016. But it has
gained momentum since the
inauguration of President Jair
Bolsonaro in January.
In a speech to the United
Nations General Assembly last
week, Mr. Bolsonaro showed
why he was elected. Two days
after the Turtle Bay crowd
feted a privileged Scandina-
vian teenager for delivering a
climate harangue, Mr. Bolson-
aro went before the assembly
and invoked God, sovereignty
no
and “the yearnings and ideals”
of the Brazilian people.
He denounced the “colonial-
ist spirit” of the global elite,
the socialism that spawned the
dictatorship in Venezuela, and
Cuba’s conscription of doctors
sent abroad to earn money for
the regime. Left-wing rule, he
said, left Brazil with “wide-
spread corruption, serious
economic recession, high
Notable & Quotable: ‘The Brink of Socialism’
Brazilian President Jair
Bolsonaro speaking to the
United Nations General As-
sembly, Sept. 24:
I come here before you to-
day to introduce you to a
new Brazil, a country that is
now re-emerging after com-
ing to the brink of socialism,
a country that is being re-
built on the yearnings and
ideals of its people.
Under my administration,
Brazil has been working to
regain world trust and also to
lower unemployment, vio-
lence and business risks by
reducing bureaucracy through
deregulation and especially
by leading through example.
My country was very close to
socialism, which led us to a
situation of widespread cor-
ruption, serious economic re-
cession, high crime rates, and
continuous ceaseless attacks
against family and religious
values that are part and par-
cel of our traditions.
In 2013 an agreement be-
OPINION
tinguish between Uber’s rot-
ten corporate culture and its
legitimately bold business
practices. Instead both get
placed under the same um-
brella of “toxic bro culture,“
as if everyone in Silicon Valley
is a misogynist Neanderthal
strutting around with his
baseball cap on backward.
Tragically, the pendulum
has swung too far in the other
direction. Silicon Valley has
gone wussy on us—wait, can I
even say “wussy” anymore?
The New York Times suggests
tech workers are all experi-
encing “existential dread” and
in need of therapy. Bad lead-
ership is to blame.
Everyone is caving in like
an overcooked soufflé. Mr.
Zuckerberg says the era of
self-regulation is over. Micro-
soft President Brad Smith says
the tech sector should em-
brace regulation. Apple’s Tim
Cook, who practically invented
the global supply chain, met
with President Trump to beg
him to lift tariffs—from Apple,
but not everyone else.
Amazon has surrendered
on multiple fronts, raising its
minimum wage to $15 to quell
claims it paid “starvation
wages” and committing to
carbon neutrality by 2040 de-
spite knowing full well that
the real problem is Chinese
coal plants, which power the
factories that make the prod-
ucts Amazon ships.
What happened? Silicon Val-
ley suffers from a classic case
of Stockholm syndrome: Its
leaders have developed sympa-
thy for their government and
social-justice captors. Facebook
and Uber spent millions on
us l,
al a
e
crime rates, and continuous
attacks against family and reli-
ci on
gious values that are part and
parcel of our traditions.”
The speech was a challenge
to U.N. orthodoxy. Many Bra-
zilians celebrated it even as
er rs
alarm spread in the salons of
New York and Paris and news-
rooms around the globe.
Mr. Bolsonaro refuses to
m e
bow to green gods and the in-
ternational thought police, and
for this he is condemned. Yet
m rp
something fresh and important
is happening in Brazil even if
ideologues at the U.N. are too
wrapped up in environmental
clichés and special-interest
co Fo
politics to recognize it.
Mr. Bolsonaro could turn
out to be one more old-school
politician. But surprisingly, his
agenda looks like a game
changer for millions of impov-
erished Brazilians. If his critics
were interested in Brazil’s fu-
ture, they would hold him ac-
countable for his promises in-
stead of bad-mouthing him.
Take his pledge to reform
Brazil’s national development
bank, BNDES, founded in 1952.
n-
Like many development banks,
BNDES has largely served the
politically powerful and has
played an outsize role in the
country’s recurring economic
debacles.
Last week in New York I in-
terviewed Gustavo Montezano,
a 39-year-old former invest-
ment banker and the sixth
BNDES president in four years,
about the reform agenda. If he
fulfills promises to reduce the
damage the bank does to eco-
nomic growth, he will also
have to reduce its usefulness
tween the former Workers’
Party and the Cuban dictator-
ship brought to Brazil 10,000
doctors who had no evidence
of professional training. They
were prevented from bringing
their spouses or children, and
75% of their wages were con-
fiscated by the Cuban regime,
and they were further pre-
vented from enjoying funda-
mental rights such as, for ex-
ample, the right to go and
come. Truly tantamount to
slave labor, believe me.
Supported by human
rights organizations both in
Brazil and the United Na-
tions organization, even be-
fore I took office, almost
90% of these Cuban citizens
left Brazil as a result of a
one-sided initiative by the
Cuban government. Those
who decided to stay in Brazil
will undergo proper technical
eligibility criteria to allow
them to exercise their medi-
cal profession.
Brazil has, therefore,
stopped contributing to the
cringeworthy TV commercials
apologizing for misdeeds. Face-
book ought to update its iconic
signs to read, “Move fast and
break things—and then apolo-
gize profusely.”
Through his bravado, Mr.
Kalanick (along with John Zim-
mer at Lyft) invented a revolu-
tionary business model that
has changed how as many as a
Attacks from media
and government have
cowed tech firms from
making bold moves.
billion people work, live and
don’t drive home after a few
beers. Could such a break-
through happen today? Who
will cattle-prod economic dead-
weights like health care, educa-
tion and government?
Investigations into tech’s
competitive behavior make
the problem worse. It came
out last week that Snap has
been collecting examples—in a
dossier it calls “Project Volde-
mort”—of aggressive tactics
Facebook uses to try to
squash Snap. Of course Face-
book uses aggressive tactics,
much as GM did to Ford,
Macy’s to Gimbels, Boeing to
Airbus, Coke to Pepsi. If done
legally, that’s the American
way. Without competition, you
get stagnation.
Are there any leaders with
backbones anymore? I’ve met
a few but most seem timid.
onThe hot companies are fake-
meat producers whose “burg-
ers” taste like burned Styro-
as a political tool. That would
be revolutionary.
Mr. Montezano says BNDES
reform fits into the govern-
ment’s broader economic lib-
eralization. Mr. Bolsonaro has
already won approval of a
long-overdue reform of the
pension system, launched an
aggressive privatization pro-
gram, and won the passage of
laws to reduce the regulatory
burden on business.
Bolsonaro’s critics
should hold him
accountable for his
promises of reform.
The Journal’s Paulo Tre-
visani reported on Sept. 23
that the government is “open-
ing up one of the world’s most
closed big economies, slashing
import tariffs on more than
2,300 products and exposing
local industries long accus-
tomed to protectionism to the
challenges of free trade.” Still
to come, Mr. Montezano told
me, is simplification of the tax
code and an “overhaul” of
public-sector administration.
For most of the past six de-
cades, politicians on the right
and left have protected the
BNDES status quo. The bank is
financed by workers through a
payroll tax, though they rarely
benefit.
Instead the influential re-
ceive government-guaranteed
below-market loans for their
companies, public and private.
When loans go bad, the losses
Cuban dictatorship by no lon-
ger sending to Havana $300
million as had been the case
every year. History has
taught us that already back
in the 1960s, Cuban agents
were sent out to several
countries to collaborate to-
wards implementing dictator-
ships in the region. A few de-
cades ago, they tried to
change the Brazilian regime
and the system in place in
other countries and Latin
America. They were defeated.
Brazilian civilians and mili-
tary died—were killed—and
so many had their reputation
fully destroyed. We have,
nevertheless, overcome that
war and we have upheld our
freedom.
These agents of the Cuban
regime, introduced by Hugo
Chavez, also made their way
into Venezuela, and today
there are 60,000 Cuban
agents who control and in-
terfere in all areas of the
Venezuelan society, espe-
cially in intelligence and de-
foam, and some crypto and
blockchain companies with al-
most zero real-world applica-
tions. Autonomous cars have
been subsumed by traditional
auto makers. I’m not sure
many of the fashion/fitness/
lifestyle companies should
even be considered technology
plays. Then there’s the We-
Work dude who was only good
at squandering $10 billion, al-
legedly self-dealing and smok-
ing weed until stepping down
as CEO. He’s not the role
model we’re looking for.
It’s time for Silicon Valley
to stop being defensive and
start playing offense again.
There are tiny signs of hope.
Facebook refused, at first, to
take down a fake video of
Nancy Pelosi that made her
seem drunk. After the inmates
took over the asylum at
Google, CEO Sundar Pichai
banned “political debate” on
internal discussion boards, in
effect telling his workers to
#ShutUpAndCode.
Then there’s Uber’s re-
sponse to California’s new
rule that reclassifies tempo-
rary and gig workers as full-
time employees unless their
jobs are “outside the usual
course” of business. Not quite
a cease-and-desist order to
ride-sharing companies, but
close. Uber reacted by claim-
ing “drivers’ work is outside
the usual course of Uber’s
business, which is serving as a
technology platform for sev-
eral different types of digital
marketplaces.” Sounds a tad
far-fetched—but woo-hoo,
some backbone! Mr. Kalanick
would be proud.
Write to Kessler@wsj.com.
are piled on the national debt.
This indebtedness raises the
cost of borrowing for Brazil-
ians who lack political clout.
A notable BNDES-financed
project was the Port of Mariel
in Cuba, where the bank lent
more than $500 million and
Brazil guaranteed the loans.
Most of that money is lost, ac-
cording to Mr. Montezano,
who also says there is “a per-
ception” that the Mariel con-
tracts are priced two to three
times above actual costs.
Mr. Montezano says BNDES
will end the practice of subsi-
dizing loans, pay back money
owed to the treasury, and
move the bank’s focus to facili-
tating the flow of private capi-
tal to infrastructure projects
aimed at development. “Ide-
ally, we shouldn’t use our capi-
tal,” he says. “If there is a pri-
vate bank to finance the
project, we should step out.”
If the “no subsidies” pledge
holds, there will be no more
BNDES lending. But Mr. Mon-
tezano envisions the bank tak-
ing a greater role as a finan-
cial-services intermediary in
federal, state and municipal
projects and in concessions
and privatizations, all of which
need the high-quality technical
expertise the bank can pro-
vide. The goal is “less lending,
more development.” It isn’t
unlike BNDES’s privatization
work in the 1990s.
BNDES reform is another
major departure from business
as usual in a top-heavy state.
It is also another test of
whether Mr. Bolsonaro is seri-
ous about changing Brazil.
Write to O’Grady@wsj.com.
fense. Venezuela, formerly a
vibrant, democratic country,
currently experiences the
cruelty of socialism. It is fair
to say that yes, socialism is
working in Venezuela. They
are all poor and deprived of
freedom. Brazil has also felt
the impacts resulting from
the Venezuelan dictatorship
of the more than four million
Venezuelan citizens who fled
the country. A sizable por-
tion migrated to Brazil, flee-
ing hunger and violence. We
have done our part to help
them and assist them
through the operational wel-
come carried out by the Bra-
zilian army and praised
world-wide.
We have also worked with
other countries, including the
United States of America, to
ensure democracy will be es-
tablished in Venezuela. We
have also endeavored our
very best efforts to ensure
that other South American
countries will not experience
this harmful regime.
Monday, September 30, 2019 | A15
BOOKSHELF | By Joseph C. Sternberg
Leviathan
In Shackles
The Narrow Corridor
By Daron Acemoglu and James A. Robinson
(Penguin Press, 558 pages, $32)
D
oes democracy have a future? Once, the tendency was
to assume that the only future following “the end of
history” would be one of free markets and liberal
democracies. But in the 1990s and 2000s, vicious conflicts
around the edges of the developed world led to the question
of whether such a future was attainable by everyone.
Moreover, the rise of nihilistic, religiously inspired terrorism
signaled that some people desired an altogether different
end to history.
To some observers, recent political developments imply
that even voters in the free world don’t always want history
to stay “ended.” We see instead the rise of political
movements that eschew the trappings of open representative
governance and explicitly reject classically liberal economics.
The latest effort to make theoretical sense of these
movements arrives via economist Daron Acemoglu and
political scientist James A. Robinson. In “The Narrow
Corridor: States, Societies,
and the Fate of Liberty,”
they explore why liberal
democracy is so hard to
achieve in the first place,
despite the considerable
political and economic fruits
it offers.
Messrs. Acemoglu and
Robinson start, as you would
expect, with the 17th-century
English philosopher Thomas
Hobbes. They observe that his
“despotic Leviathan,” as they
.
call it—an overweening state
ly
whose subjects accept political
repression as the price of
personal security—is not the only
means of avoiding a Hobbesian state of war.
Many societies instead have fashioned a “cage of norms” for
themselves—strict social and economic conventions meant to
preserve order in the absence of a Leviathan. Given the
practical difficulties of constructing a properly despotic
Leviathan, this alternative and its compensating social
strictures have been the more common experience in human
history.
A middle way, the authors propose, is the “shackled
Leviathan” capable of providing order that is less socially
and economically repressive than a cage of norms but also
less politically repressive than a despotic Leviathan. The
narrow corridor of the book’s title refers to the space in
which a shackled Leviathan travels, walled in on one side by
an effective state apparatus and on the other by a vibrant
society, the two constantly in tension with each other.
Entering the corridor has economic implications, too: “The
Shackled Leviathan has been distinctive in . . . creating broad-
based economic opportunities and incentives and promoting
a sustained rise in economic prosperity.” Neither the
despotic Leviathan nor the cage of norms, according to the
authors, can encourage the right sorts of entrepreneurship.
There’s some insight here, although not vast stores of
novelty. Messrs. Acemoglu and Robinson’s narrow corridor is
an apt metaphor, capturing a sense that the hallway is
something a society must constantly travel along rather than
pass through once. The authors also offer insight into why
people caging themselves within norms might not welcome
the introduction of a new Leviathan. Many societies still see
little advantage in submitting to an authority that might
quickly grow despotic.
An allegory of good government that imagines
liberty thriving in the narrow space connecting a
vibrant society and an effective, responsive state.
Alas, these kernels of insight come with substantial
padding in a maddeningly episodic book of more than 500
pages. African tribes, Chinese emperors, Enlightenment
philosophers, religious prophets and Founding Fathers drift
in and out of focus, yet the book never gives a coherent
account of how society might find its way into the narrow
corridor or why it might permit itself to drift out of one.
When the authors do focus on a historical example, the
results are unconvincing. Their potted history of America—
which will garner them praise for their frontal assault on
American exceptionalism—is hopelessly confused. It isn’t
true, as they assert, that in drafting the Constitution the
Founding Fathers “absentmindedly overlooked a gamut of
basic rights that we now think of as essential to American
institutions and society.” The tenor of the debate over the
Bill of Rights concerned whether those rights even needed to
be stated—they were taken for granted as part of the English
legal tradition America inherited—and whether specifically
enumerating some rights would encourage the government
to trample on those that weren’t. The nuances of this debate
ought to have been of more interest for a book such as this.
It gets worse. The relationship between state and society
on the question of slavery and race in America is complex,
rarely happy—and instructive. Yet at most turns the authors
seem to get it backward. Northern Founders made structural
compromises with Southern slaveholders to secure
ratification of the Constitution not in tolerance of slavery
but in hopes that their new republic would one day
extinguish it—as eventually happened.
More recently, the overly powerful state that Messrs.
Acemoglu and Robinson assume protects minority citizens
instead has oppressed them. This is the one conclusion the
authors refuse to draw from their meandering analysis of the
recent events in Ferguson, Mo., and a damning report on
how the local police department enforced a thousand petty
nanny-state diktats to raise revenue from a beleaguered
African-American community. America offers an exceptional
case study of the successes and failures a Leviathan and civil
society have experienced chasing each other along the
narrow corridor. Too little of that appears here.
Inevitably, most discussion of “The Narrow Corridor” will
turn to President Trump. The authors warn that America
could indeed drift out of the corridor toward greater
despotism. Here, too, they leave too much unexamined. A
nontrivial portion of Mr. Trump’s supporters would say they
voted for him not to embrace a despotic Leviathan but
because, after a century of progressive, Leviathan-expanding
governance, they feared America already had one. The most
important question is how to tell whether one is still inside
the narrow corridor—a question that awaits another book.
Mr. Sternberg writes the Journal’s Political Economics column
and is author of “The Theft of a Decade: How the Baby Boomers
Stole the Millennials’ Economic Future.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Worst China Trade Idea Mothering, Parenting and Working for Pay

T
he Trump Administration is looking for The U.S. also benefits from Chinese invest- Bravo for Erica Komisar’s recogni- From my perspective as an older,
ways to pressure China to change its ment, which totaled $148.33 billion from 1990 tion of a woman’s real power as a divorced woman who raised two
mother (“A Woman Doesn’t Need an children by herself while managing
trade practices, but how about not hurt- to June 2019. Some of this finances new busi-
Office to Be Empowered,” op-ed, a professional teaching position,
ing the U.S. along the way? nesses or goes to buy U.S. Sept. 21). We would have fewer men- Ms. Komisar’s argument seems out-
The latest shoot-self-in-foot Banning investment firms that need the capital to tal-health-care costs in U.S. colleges dated. Moreover, it contains ele-
moment came Friday when would hurt the U.S. and expand at home or reach new and universities today if women (or ments of sexism, elitism and privi-
word leaked that the White markets abroad. If Chinese men) stayed home to rear stable, se- lege. For starters, nowhere is the
House may restrict bilateral reformers in Beijing. companies and individuals cure and self-confident individuals. husband or male partner included.
U.S.-China investment. can’t invest in the U.S., they Rearing responsible adults is the Shouldn’t the same question be ap-
Bloomberg News reported will find other places in the most valuable work one can do for plied to the male in the family rela-
that the Administration may also block Chinese world to do so and those economies will be America’s future. tionship? She doesn’t even assume
companies like Alibaba from listing on U.S. stronger for it. VICTORIA WINTERER that a husband or domestic partner
stock exchanges. An investment ban sounds like something Essex, Conn. should also be asked to contribute
substantially and equitably to do-
Rising stock prices went in reverse, and from the mind of Peter Navarro, the White
It is a pernicious lie that mestic life, including raising chil-
that’s no surprise. A blanket ban on bilateral in- House trade adviser who wants to decouple the women—including even the most ca- dren.
vestment is a good way to hurt America while U.S. and Chinese economies. He sees tariffs as pable among us—necessarily waste PROF. TERRY MIZRAHI
making Chinese reform less likely. a way to break up existing supply chains, and their abilities by becoming full-time West Hollywood, Calif.
The delisting of Chinese companies is espe- an investment ban would over time sharply re- mothers. My wife channeled her in-
cially foolish. American financial exchanges are duce U.S.-China economic interaction. This is telligence, education, creativity and Ms. Komisar fails to grasp the
sources of U.S. economic strength, but they misguided as a strategy for promoting change wisdom into nurturing our children plight of most families. True, the
compete in a global market. Foreign firms can in China, and it’s not what President Trump and now (in smaller ways) our U.S. stands virtually alone among
choose to list in London or Hong Kong or Frank- says he’s trying to achieve. grandchildren. We might have more Organization for Economic Coopera-
furt as easily as on the Nasdaq or the New York Mr. Trump has said that the point of his tar- material things if she had worked tion and Development (OECD) coun-
outside the home, but at age 70 I tries in its failure to enact universal
Stock Exchange. Banning Chinese companies iffs is to cause the Chinese to change their pred-
don’t regret what we don’t have. early-childhood care.
from U.S. exchanges would merely hurt those atory trade practices. The goal is to get the What I would miss terribly are the European nations generally have
American businesses and U.S. capital markets. world’s second largest economy to play by in- fruits of her domestic career—suc- much more generous maternity-
The damage to the Chinese firms would be mi- ternational trade rules. The Chinese have their cessful, well-adjusted sons in stable leave benefits. The overall employ-
nor because investors would still be able to own debate between economic reformers and families and grandchildren who ment rate of mothers with a child
raise capital elsewhere. mercantile nationalists. U.S. policy should aim show promise of becoming fine age 3 or under in the U.S. in 2011
One benefit of listing on U.S. exchanges is to support the reformers, but trying to cut off adults. If there is a better measure was similar to other OECD coun-
that it obliges foreign firms to meet American all Chinese trade and investment from the U.S. of personal success in life, I don’t tries, but only 14% of U.S. mothers
regulatory standards for disclosure to inves- plays into the hands of the mercantilists. They’ll know of it. held part-time employment com-
tors. The White House would not be protecting say the U.S. will punish China no matter how KIM STEINERpared with a mean of 22% for all
American investors by forcing Chinese compa- it behaves, and they’ll have a point. Boalsburg, Pa.countries, including France, U.K.
and Germany. The differing empha-
nies to list on foreign stock exchanges where A smart policy would punish Chinese compa-
Ms. Komisar’s bullying message is sis on part-time employment in
the rules are less rigorous. nies that break the rules while allowing access hurtful and antiquated. The reality other countries follows their more
A ban on bilateral capital flows would be to those that play fair. The 2018 revisions to the for millions of us is that we have to generous maternity- and family-

.
even more destructive. Hundreds of American Committee on Foreign Investment in the U.S. be employed (I never say we “work,” leave benefits, often lasting six

ly
firms already do business in China, many of statute give the Trump Administration plenty because all moms are working moms months to a year compared to the
them profitably, and they will need to keep in- of authority to restrict investment on national whether we’re paid or not) to main- U.S., which rarely exceeds three
vesting to stay competitive. Direct U.S. invest- security grounds. tain a decent standard of living. The months.
ment in China from 1990 to June 2019 was By all means do so when Chinese companies
on best way to drive change is to bring Ms. Komisar’s hesitation for new
$276.38 billion, according to the U.S.-China FDI pose a risk of cybertheft, espionage, or to the more women into the C-suites so mothers to use early-childhood care
Project. An arbitrary ban on investment could energy grid or national defense. But a political that decisions about work culture before age 3 jeopardizes their stake
make much of that a stranded investment that ban on two-way capital flows will accomplish shift to accommodate the needs of in the workforce.
working families. DAVID S. YOUNGER, M.D., MPH, M.S.
us l,

would hurt those companies and inevitably little beyond damaging America’s economic
PEGGY EVERTS CUNY School of Medicine
their employees in America too. growth. Oxford, Mich. New York
al a
e

A Judicial Primer on Bias Response

ci on

Fed Can’t Possibly Meet Most Expectations

D
espite all the attention devoted to free complaints about Michigan’s overbroad defini-
speech on campuses, the legal status of tions were moot because the school revised Regarding Allen Buckley’s Sept. 24 share their magic recipes because
the issue is often unclear. That’s why a them after it was sued. letter “On the Fed’s Mandate and Its no other central bank in the world
decision from the Sixth Circuit Last week the Sixth Circuit Performance” about Judy Shelton’s seems to be able to pull off that
er rs

Students have broad “The Fed’s Mandate Is Up to Con- trick.

Court of Appeals, scolding the disagreed on both counts and
gress and the President” (op-ed, As to “maximum employment,” I
University of Michigan’s standing to sue over the sent the case back to the dis- Sept. 17): I wonder if Ms. Shelton has challenge any economist to offer a
speech policies, is good news. trict court. Even “the very considered the possibility (which coherent explanation of the precise
A frequent stumbling block suppression of speech. name ‘Bias Response Team’
m e

seems obvious to me) that the Fed- mechanisms the Fed can deploy to
to bringing successful lawsuits suggests that the accused stu- eral Reserve doesn’t have the ability directly affect employment.
for infringed speech is that dent’s actions have been pre- to deftly control the economy, inter- Congress can declare new man-
m rp

students typically lose standing to sue when judged to be biased,” Judge David McKeague est rates, inflation or employment as dates for the Fed, but that seems
they graduate. A nonprofit group called Speech wrote. “The name is not the ‘Alleged Bias Re- so many seem to think. like little more than political postur-
First found a way around that problem by suing sponse Team’ or ‘Possible Bias Investigatory If she believes the Fed can lower ing when one looks at the opera-
the University of Michigan on behalf of its mem- Team.’ It is the ‘Bias Response Team.’ And as short-term rates while simultane- tional realities of what monetary
bers, preserving its standing so long as it has at such, the name intimates that failure to meet ously delivering adequate yields to policy can and cannot accomplish.
co Fo

pension funds struggling to meet STEVE WIERHAKE

least one active student at the school. could result in far-reaching consequences, includ-
their liabilities, then I hope they Punta Gorda, Fla.
Free Speech’s complaint took issue with a ing reputational harm or administrative action.”
university-created office called the Bias Re- Speech First has standing, he said, because “both
sponse Team, a campus bureaucracy that urged the referral power and the invitation to meet with
students to report speech or behavior they students objectively chill speech.”
Regulators: Aid, Don’t Crush, Competition
thought was a “bias incident.” While the Bias The University of Michigan claimed there “Inside a Campaign to Take Down groups like the Free and Fair Markets
Response Team lacks formal disciplinary power, was no evidence that a student had ever faced Amazon” (Exchange, Sept. 21) exposes Initiative and of companies orches-
it can request a sit-down with anyone accused discipline for engaging in intellectual debate. a darker side of Washington regula- trating behind-the-scenes campaigns
of committing an act of bias, and it can refer “This misses the point,” Judge McKeague re- tory politics. The article reveals the against disruptive competitors. Their
cases to law enforcement. Speech First also plied. “The lack of discipline against students regrettably common strategy of sur- goals are to hamper their business ri-
challenged the vague definitions of bullying and could just as well indicate that speech has al- reptitiously encouraging regulators to vals, not get at the truth.
hamstring competitors. The cloak- My trade organization supported
harassment in the university’s Statement of ready been chilled.”
and-dagger game designed to be- antitrust action against IBM in the
n-

Student Rights and Responsibilities, noting stu- More than 200 schools have bias response smirch a company’s reputation in 1970s, AT&T in the 1980s and Micro-
dents deemed in violation could face discipline, teams similar to the University of Michigan’s. Washington helps explain why politi- soft in the 1990s; we value enforce-
including expulsion. At a minimum, they might at least take the Sixth cians’ calls to punish successful Amer- ment when necessary to address bad
Last year federal Judge Linda Parker ruled Circuit’s good advice and rename them the “al- ican tech firms are out of step with behavior. But antitrust enforcement is
no

that Speech First lacked standing, and that its leged” bias response teams. the public’s appreciation for their
highly innovative products.
Until U.S. regulators gather and an-
Bernie’s National Rent Control alyze the facts and evidence, politi-
cians should be wary of pressure from
too important a tool to undermine its
credibility by using it for political rea-
sons. Companies should compete in
the market—not the political swamp.
ED BLACK

B
ernie Sanders this month unveiled a $2.5 Chief Executive
Housing prices do appear to be rising faster
Computer & Communications
trillion housing agenda, but the price tag than wages. The cost to rent a primary residence
isn’t the only shocker. “Under my plan,” he is up about 3.7% year over year, per federal data.
Berkeley’s Green Divestiture Industry Association
Washington
told union members in Las Ve- Not coincidentally, the vacancy Violates California Law
gas, “we will establish a national He says Venezuela isn’t rate for rentals, 6.8%, is at lows Your editorial “The University of
rent-control standard, capping his model. You can’t tell last seen in 1985. That gets to California Divests” (Sept. 23) notes Good Manners Show Love
annual rent increases through- the real problem: It’s impossi- that the UC Berkeley chapter of Fossil
out the country at no more than by his housing policy. ble to build denser housing in Free says “our work is not done” until Regarding Paula Marantz Cohen’s
1½ times the rate of inflation or many places due to restrictive the UC system rejects all types of “Jane Austen Understood That Man-
3%, whichever is higher.” zoning and antigrowth activ- funding from the fossil-fuel industry. ners Maketh the Man” (op-ed, Sept.
Oy. Economists of all stripes agree rent con- ism by current homeowners. I put my daughter through UC Santa 14): This great grandmother will al-
Barbara while working for a large in- ways remember her mother’s polite
trol doesn’t work. A mere 2% think it has positive Some sources say that 75% of residential land
ternational oil company (enabling UC response to her teen’s disparaging re-
effects, according to a 2012 survey by the IGM in Los Angeles is zoned for single-family homes. students and parents to drive and fly mark about manners: “Manners are
Forum. In other contexts Bernie might cite that In San Diego a Lutheran church has been trying at will, by the way). Would Fossil love in little things.”
statistic as proof of settled science. No less de- to build a couple of dozen affordable apartments Free consider its work complete when ANNE KILLEFER
finitive are the in-depth studies. An analysis last in its underused parking lot. But the zoning rules the UC system rejects tuition pay- Knoxville, Tenn.
year of San Francisco’s 1994 rent-control initia- specify that churches need one car spot for each ments from anyone employed by an
tive found that the landlords it affected “reduced 60 inches of pew space. oil company?
rental housing supply by 15%, causing a 5.1% city- There are useful ways to attack such prob- RUSS YARROW Pepper ...
wide rent increase.” lems. This year Oregon passed a law that in some Southport, N.C.
And Salt
The Sanders plan would generously let land- cities overrules local regulations to allow town-
lords “apply for waivers if significant capital im- houses and quadplexes. Minneapolis has moved Basing investment decisions on any- THE WALL STREET JOURNAL
thing other than the prudent-investor
provements are made”—as if this wouldn’t be a to repeal single-family zoning. Nationwide rent
rule by any California public-retire-
politicized process and a brake on investment. control would undermine these efforts. ment-fund trustee violates Section 17
Ditto for Bernie’s proposed House Flipping Tax, It’s constitutionally dubious, too. What gives (c) of Article XVI of the California con-
a 25% levy on sellers who either didn’t live in the Washington the power to dictate rents in Cincin- stitution. That section was enacted via
property or didn’t own it for five years. The pre- nati and Phoenix? In 2012 the Supreme Court statewide, voter-approved Proposition
dictable outcome: less development, less reno- balked at using the Commerce Clause to justify 21 in June of 1984 to protect retirees
vation, and fewer rentals. ObamaCare’s mandate to buy health insurance. from shenanigans just like this.
The bulk of the plan’s money, about $1.5 tril- It’s hard to imagine today’s Court giving federal LARRY STIRLING
lion, would go to the National Affordable Hous- rent control a friendlier reception. San Diego
ing Trust Fund. It would be spent to build and Mr. Sanders says that his version of demo-
rehabilitate 7.4 million units that the plan prom- cratic socialism bears no relation to the kind Letters intended for publication should
ises would “remain affordable in perpetuity.” practiced in Venezuela, yet his housing policy be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
The trust fund would also administer two mil- has all the earmarks: price controls that crimp or emailed to wsj.ltrs@wsj.com. Please
lion new “social housing units,” constructed at supply and cause capital to flee, then govern- include your city and state. All letters
a cost of $400 billion. But even all that wouldn’t ment diktats and subsidies to counteract the are subject to editing, and unpublished “I’ll be fielding your questions
be enough, given how Mr. Sanders’s proposal damage from the controls. As in Venezuela, the letters can be neither acknowledged nor and my assistant will be
returned.
would crimp private building. poor would suffer the most. googling the answers.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Probe the
Effort to Sink
Kavanaugh
By David B. Rivkin
And Lee A. Casey
T
he effort to sink Justice Brett
Kavanaugh’s confirmation cries
out for investigation. The Sen-
ate Judiciary Committee has already
made a criminal referral to the Jus-
tice Department regarding alleged
material misstatements by lawyer
Michael Avenatti and his client Julie
Swetnick. And a new book by two
New York Times reporters contains a
potentially explosive revelation.
Leland Keyser tells a new
book’s authors she felt
pressured to testify falsely.
In “The Education of Brett Ka-
vanaugh,” Robin Pogrebin and Kate
Kelly report that Leland Keyser—who
was unable to corroborate high-
school friend Christine Blasey Ford’s
allegation of youthful sexual miscon-
duct—says she felt pressured by a
group of common acquaintances to
vouch for it anyway. The book quotes
an unnamed male member of the
group suggesting in a text message:
“Perhaps it makes sense to let every-
one in the public know what her con-
dition is”—a remark the reporters de-
scribe as reading “like a veiled
reference” to Ms. Keyser’s “addictive
tendencies.” (The authors quote her
as saying she told investigators “my
whole history of using.”)
A concerted effort to mislead the
Federal Bureau of Investigation and
the Senate, especially if it involved
threats to potential witnesses, could
violate several federal criminal stat-
utes, including 18 U.S.C. 1001 (lying to
federal officials), 18 U.S.C. 1505 (ob-
struction of official proceedings) and
18 U.S.C. 1622 (subornation of per-
jury). Investigating and, if the evi-
dence is sufficient, prosecuting such
offenses would deter similar miscon-
duct in the future.
It’s bad for the country when nom-
inees are subjected to what Bill Clin-
ton calls “the politics of personal de-
struction.” It intensifies political
polarization and bitterness, traduces
due process, dissuades good people
from government service, and injures
the reputation of the judiciary and
other institutions.
The Senate and FBI could also con-
sider changing the background-check
process for nominees. Justice Ka-
vanaugh’s opponents seem to have
expected a full-fledged criminal-style
inquiry into Ms. Ford’s allegations, al-
though Senate Democrats had sat on
them for months. But that’s not how
background investigations work.
They’re carried out by a special unit
2 25 2 29 2
2
 2
5 2
2
9 cover the lost ground,” says Sentier
whose job is to verify information the
nominee has provided and gather ad-
ditional information that may reflect
on his character and reputation. This
process does not involve the same
sort of searching questions that are
characteristic of a criminal investiga-
tion. Nor do FBI background investi-
gators routinely assess individual
witness credibility. They reach no
conclusions but collect information
and then forward it to the White
House and Senate. It is then up to the
elected officials to decide who and
no
what to believe. It is a political, not a
criminal, process.
This is a matter of practice and
tradition, not law. The FBI could be
asked to conduct background investi-
gations in a manner more compara-
ble to its criminal and intelligence
work, where agents will assess wit-
ness credibility and use those assess-
ments to guide the focus and course
of the inquiry. It should be especially
vigilant to the possibilities of collu-
sion and witness tampering, which
are uniquely troubling in high profile
confirmation battles.
Messrs. Rivkin and Casey practice
appellate and constitutional law in
Washington. They served in the White
House Counsel’s Office and Justice
Department under Presidents Reagan
and George H.W. Bush.
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John Durham’s Ukrainian Leads
By Michael B. Mukasey
A
mericans often boast that
we are a nation of laws, but
for the moment laws ap-
pear to play a decidedly
secondary role in the
drama we are living in and—hope-
fully—through.
We have some guidance from our
foundational law, the Constitution,
which tells us how to proceed: the
House of Representatives has “the sole
power of impeachment,” the Senate
has “the sole power to try all impeach-
ments,” and must do so “on oath or af-
firmation.” The Senate cannot convict
“without the concurrence of two-
thirds of the members present.” And
“when the president of the United
States is tried, the chief justice shall
preside.”
It looks almost like a real trial. Yet
despite the legal trappings, the un-
derlying standard, if applied to a
criminal statute, would be vulnerable
to attack as void for vagueness: “The
president . . . shall be removed from
office on impeachment for, and con-
viction of, treason, bribery, or other
high crimes and misdemeanors.”
Treason and bribery have specific
and recognized meanings, but what
about “other high crimes and misde-
meanors”?
In Federalist No. 66, Alexander
Hamilton defended the Senate as the
tribunal for trying impeachments in
part by saying that impeachable of-
fenses come from “the abuse or vio-
lation of some public trust” and “are
of a nature which may . . . be denomi-
nated political.”
Tellingly, during President Clin-
ton’s impeachment trial, Chief Justice
William Rehnquist was asked to in-
struct senators, as judges uniformly
instruct jurors, that in reaching a
on
verdict they must consider only the
evidence presented during the trial.
He refused; senators were free to
us l,
Trump’s Middle-Class Economic Progress
al a
e
By Stephen Moore
ci on
P
resident Trump’s critics can’t
deny that the economy is doing
well, so instead they insist all
the benefits have gone to the rich
er rs
and large corporations. “America’s
middle class is under attack,” Sen.
Elizabeth Warren asserted in her
presidential campaign announcement
m e
last December.
m rp
A new study indicates
median incomes are rising
far faster than they did
under Bush or Obama.
co Fo
The latest data from the Census
Bureau monthly surveys tell a differ-
ent story. Real median household in-
come—the amount earned by those
in the very middle—hit $65,084 (in
2019 dollars) for the 12 months end-
ing in July. That’s the highest level
ever and a gain of $4,144, or 6.8%,
since Mr. Trump took office. By com-
parison, during 7½ years under Presi-
dent Obama—starting from the end
n-
of the recession in June 2009
through January 2017—the median
household income rose by only about
$1,000.
These statistics were published by
two former census income-research
House Democrats Resist a Win for American Workers
By Mitch McConnell
And Kevin McCarthy
P
resident Trump and the leaders
of Canada and Mexico an-
nounced the most significant
trade deal in a generation a year ago
this week. The U.S.-Mexico-Canada
Agreement is unambiguously a win
for America. It would create new
jobs, expand export markets,
strengthen protections for workers,
and generate billions of dollars in
new prosperity. The USMCA would
also help keep North American part-
Robert Thomson
Chief Executive Officer, News Corp
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Chief Executive Officer and Publisher
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OPINION
consider whatever they wished. In
fact, they were free to consider noth-
ing; the Constitution imposes on the
Senate no obligation to hold a trial at
all. President Andrew Johnson was
impeached on 11 charges, but tried on
only three. As for the House, the only
governing principle there is that the
majority rules.
So are we now not a nation of laws
but a nation of politics? Not entirely.
True, much media and political ef-
fort has gone into sometimes close
and often willful parsing of President
Trump’s July 25 conversation with
President Volodymyr Zelensky—
ironic when you consider Mr.
Trump’s well-known linguistic pro-
miscuity—not to mention the cele-
brated whistleblower complaint,
which contains no firsthand informa-
tion. Little notice has been given,
however, to another document lying
in plain sight: a Justice Department
press release issued the day the con-
versation transcript became public.
That Justice Department state-
ment makes explicit that the presi-
dent never spoke with Attorney Gen-
eral William Barr “about having
What the prosecutor
has found may be quite
different from what the
Democrats are looking for.
Ukraine investigate anything relating
to former Vice President Biden or his
son” or asked him to contact Ukraine
“on this or any other matter,” and
that the attorney general has not
communicated at all with Ukraine. It
also contains the following morsel:
“A Department of Justice team led by
U.S. Attorney John Durham is sepa-
rately exploring the extent to which a
number of countries, including
The Middle Rises
U.S. median household income, July 2019 dollars

BUSH
+$401 s0.7%

2

5
5
5
2
Source: Sentier Research
specialists with 50 years experience
who now run Sentier Research, a
nonpartisan research group. Sentier
analyzes the Census Bureau’s
monthly Current Population Survey
to calculate the most up-to-date
changes in median household income,
which it publishes six months to a
year ahead of the official annual
numbers. Sentier’s advance estimates
are imperfect and sure to be revised,
but generally have been a reliable
leading indicator. (The big rise Sen-
tier reports doesn’t account for the
ners close while the U.S. hangs tough
with China.
Mexico has ratified the agreement.
Canada is waiting for us to take the
lead. The U.S. Senate stands ready,
willing and eager to pass it. There’s
only one obstacle, which has been on
full display in the last several days:
House Democrats have been more in-
terested in picking fights with the
White House than clinching biparti-
san victories for America.
Under pressure from progressives
to deny the country any successes
during the Trump administration,
Speaker Nancy Pelosi has tried to run
out the clock on the USMCA. Leading
House Democrats frequently claim to
support the deal in the abstract but
have spent months finding one ex-
cuse after another to delay passing it.
The administration has worked
tirelessly to address these shifting
objections. It’s time for Mrs. Pelosi’s
delay tactics to end. House Demo-
crats need to put the country first
and stop blocking this significant vic-
tory for the American people.
The USMCA isn’t some political
football. It’s a critical piece of eco-
nomic policy. Its enactment or failure
will have life-changing consequences
for workers. Twelve million American
jobs rely on trade with our northern
and southern neighbors, according to
the U.S. Chamber of Commerce. Mex-
ico and Canada together represent a
$500 billion export market for the
U.S. They buy one-third of the goods
America exports, plus tens of billions
of dollars more in services.
Monday, September 30, 2019 | A17
ASSOCIATED PRESS
Ukraine, played a role in the counter-
intelligence investigation directed at
the Trump campaign during the 2016
election. While the Attorney General
has yet to contact Ukraine in connec-
tion with this investigation, certain
Ukrainians who are not members of
the government have volunteered in-
formation to Mr. Durham, which he is
evaluating.”
The definitive answer to the obvi-
ous question—what’s that about?—is
known only to Mr. Durham and his
colleagues. But publicly available re-
ports, including by Andrew McCarthy
in his new book, “Ball of Collusion,”
suggest that during the 2016 cam-
paign the Federal Bureau of Investi-
gation tried to get evidence from
Ukrainian government officials
against Mr. Trump’s campaign man-
ager, Paul Manafort, to pressure him
into cooperating against Mr. Trump.
.
When you grope through the miasma
ly
of Slavic names and follow the daisy
chain of related people and entities,
it appears that Ukrainian officials
who backed the Clinton campaign
provided information that generated
the investigation of Mr. Manafort—
acts that one Ukrainian court has
OBAMA (post recession) TRUMP
+$1,043 s1.7% +$4,144
s6.8%
effect of the 2017 tax cuts, which
saved the average household $1,400
in 2018, according to my colleagues
at the Heritage Foundation’s Center
for Data Analysis. For married cou-
ples with two children, the figure was
more than $2,900.)
Sentier’s data squares with other
economic trends. It explains why con-
sumer spending has surged this year
and major retailers like Lowe’s and
Target report massive sales. White
House economic adviser Larry Kud-
low had it right when he said last
Ask America’s farmers and pro-
ducers how important these trading
relationships are. U.S. agricultural ex-
ports to Canada and Mexico have
quadrupled during the past 25 years
and now constitute nearly 30% of U.S.
exports in that sector.
Ask America’s manufacturers.
Ninety percent of U.S. manufacturing
sectors count either Canada or Mex-
ico in their top two export markets.
Ask America’s entrepreneurs. Tens of
Passing the USMCA would
bring in 176,000 jobs and
$68 billion. It should be
an easy bipartisan victory.
thousands of small and medium-size
businesses sell goods and services to
Mexican or Canadian customers.
Virtually no part of the U.S. econ-
omy is untouched. The deal would ex-
pand market access for American
food, including badly needed ap-
proval to sell more dairy, poultry and
eggs to Canada. These and other re-
forms add up to an estimated $2.2
billion victory for agriculture alone.
The U.S. trade representative esti-
mates the USMCA’s automotive pro-
visions would yield more than $30
billion in new investments over five
years and billions more in purchases
of U.S. auto parts every year. Across
all sectors, newly streamlined labor
and environmental standards would
said violated Ukrainian law and “led
to interference in the electoral pro-
cesses of the United States in 2016
and harmed the interests of Ukraine
as a state.”
Whether Mr. Trump’s conversation
with Mr. Zelensky constitutes “high
crimes” or “misdemeanors” depends
at least in part on what he was get-
ting at when he raised the subject of
a “favor.” He asked not about the Bi-
dens but rather about CrowdStrike, a
private company hired by the Demo-
cratic National Committee to conduct
a forensic examination of the DNC
server. The FBI took its word, instead
of conducting its own examination,
for the conclusion that the Russians
had hacked the DNC.
Neither the House in framing
charges nor the Senate in considering
them will be prevented from subject-
ing excerpts of the conversation to
more analysis than they will stand.
Nor does anything stop lawmakers
from considering the word of an
anonymous whistleblower that con-
sists entirely of secondhand reports
and conjecture not subject to easy
refutation, save for occasional whop-
pers like the suggestion that place-
ment of the Zelensky conversation on
a closed system not vulnerable to
penetration was somehow unlawful
or evidence of a guilty conscience.
The House and Senate, by design
of the Founders, are unconstrained
by any considerations save political
ones. But as they labor, and occasion-
ally preen in the limelight, Mr. Dur-
ham works quietly to determine
whether highly specific criminal laws
were violated, and if so by whom. He
is an experienced and principled
prosecutor who has earned the confi-
dence of attorneys general of both
parties, including me. Stay tuned.
Mr. Mukasey served as U.S. attor-
ney general (2007-09) and a U.S. dis-
trict judge (1988-2006).
month that, due to fatter paychecks,
families are spending and saving
more at the same time.
Sentier’s income data dates to
2000 and tells the story of the past
two decades. The recession of
2008-09 crushed middle-class in-
comes so dramatically that the me-
dian income when Mr. Obama left of-
fice was no higher than it was when
George W. Bush arrived. That was the
middle-class and blue-collar squeeze
Donald Trump tapped into.
Mr. Obama inherited a financial
mess, but the median income contin-
ued its decline during almost all of
his first term and rose only slowly in
his second term—the weakest recov-
ery from a recession since the 1930s.
“We never saw a recovery where in-
comes took such a long time to re-
founder Gordon Green.
Now a warning: A protracted eco-
nomic slowdown or recession could
reverse Mr. Trump’s advances on jobs
and incomes. The trade war is impos-
ing a heavy toll. But for now the me-
dian family enjoys its fattest pay-
checks ever. The middle class not
only isn’t shrinking, it’s getting
richer.
Mr. Moore is a senior fellow at the
Heritage Foundation and co-author,
with Arthur Laffer, of “Trumponom-
ics: Inside the America First Plan to
Revive Our Economy.”
give American workers a fairer play-
ing field and reduce incentives to
ship U.S. jobs over the border.
All in all, the International Trade
Commission predicts the USMCA
would create around $68 billion in
wealth and 176,000 jobs for America.
Even in this politically charged mo-
ment, a success of this scale should
be a no-brainer.
But clearly House Democrats ha-
ven’t seen it that way. Why the heel-
dragging?
Some observers, and not only Re-
publicans, suspect that Democrats
simply want to deny Mr. Trump a
high-profile win. Even more cynically,
perhaps they agree with the far-left
voices actively rooting for a recession
to help their election odds in 2020.
Or perhaps Washington Democrats
have been so consumed by their per-
sonal hatred for this president that
they can no longer recognize good
policy when they see it.
Whatever the reason, the Demo-
cratic delaying tactics are hurting the
country. If Mrs. Pelosi and House
Democrats tank this trade deal be-
cause they don’t like the occupant of
the White House, “Trump derange-
ment syndrome” will no longer be
some Beltway curiosity. It will have
drained potential prosperity from all
50 states and killed a huge number of
American jobs.
Mr. McConnell, a Kentucky Repub-
lican, is Senate majority leader. Mr.
McCarthy, a California Republican, is
House minority leader.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A18 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

Problems drive us
to close the gap.
Together with IBM, educators are
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
BUSINESS & FINANCE
© 2019 Dow Jones & Company. All Rights Reserved.
Last Week: S&P 2961.79 g 1.01%
Boeing Omitted MAX Safeguards
Designers left out
features used in
version of system
used in military tanker
BY ALISON SIDER
AND ANDREW TANGEL
Boeing Co. engineers work-
ing on a flight-control system
for the 737 MAX omitted safe-
guards that had been included
in an earlier version of the
same system used on a mili-
Fewer Stocks Participate in Market’s Rally
BY JESSICA MENTON
U.S. stocks are hovering
near record levels but many
are struggling to break out of
a narrow trading range to hit
new highs. One reason: Fewer
individual stocks are contrib-
uting to the rally.
The number of stocks hit-
ting 52-week highs has fallen
since June—when the S&P 500
kicked off its last successful
run at a record. Last week, 106
firms in the index set 52-week
highs, down from 293 in mid-
June, according to FactSet.
The lack of breadth in the
stock market is concerning to
some analysts who note the
S&P 500 has broken out to
fresh highs three times since
early 2018, but each rally was
short-lived. That marks a di-
vergence from 2013 and 2017
when stocks notched a series
of highs following strong
bouts of volatility.
The broad stock-market in-
dex is within 2.1% of July 26’s
record—it has rallied 18% this
year to 2961.79 but is up just
1.6% from a year ago following
last fall’s brutal selloff.
“Investors are concerned
that this is another breakout
that won’t last,” said Frank
Cappelleri, executive director
at brokerage Instinet. “Violent
back-and-forth stock moves
shake investor confidence,
which causes doubt for the
next breakout to work.”
After growing fears of a po-
tential U.S. recession rocked
financial markets in August,
the S&P 500 has done an
about-face in September, ris-
ing 1.2%. The latest leg up co-
incides with the biggest rota-
tion out of high-momentum
stocks and into value shares
since the financial crisis.
INSIDE
no
JOSHUA ROBERTS/REUTERS
BUSINESS
U.S. steps up
scrutiny of
cybersecurity
for airlines B3
HEARD ON THE
STREET
Tesla may need more
than strong deliveries
for its growth story B10
TECHNOLOGY: SCAMMERS FIND EASY PREY ON INTERNET MARKETPLACES B4
S&P FIN g 0.20%
tary tanker jet, people familiar
with the matter said.
Accident investigators have
implicated the system, known
as MCAS, in two deadly
crashes of the jetliner that
killed a total of 346 people.
The engineers who created
MCAS more than a decade ago
for the military refueling plane
designed the system to rely on
inputs from multiple sensors
and with limited power to
move the tanker’s nose—which
one person familiar with the
design described as deliberate
175 companies
150 Peak: Jan. 26
176 companies
125
100
75
50
25
0 growth,” a We spokesman said
2018
Share of S&P 500 companies trading
above their 50-day moving averages
100%
er rs
80
60
m e
40
m rp
20
0 0
2019
co Fo
Sources: FactSet (52-week highs, moving averages, earnings growth); American Association of Individual Investors Sentiment Survey (investors)
Investors have been selling
higher-growth technology
companies including the popu-
lar FAANG stocks—Facebook
Inc., Amazon.com Inc., Apple
Inc., Netflix Inc. and Google
parent Alphabet Inc.—that
have propelled the decadelong
bull market.
They are opting instead for
n-
PERSONAL TECHNOLOGY | By Joanna Stern
Now Isn’t Right Time
To Upgrade Apple Watch
Here’s the
best thing
about the new
Apple Watch
Series 5: You
don’t need to
buy it.
Why buy when you can
just glance down at your
neighbor’s Series 5 and see
the time on the new always-
on display? That’s what
someone did to me the other
day on the subway. I’m basi-
cally the Mother Teresa of
giving people the time.
Joking aside, if you bought
last year’s Apple Watch Se-
ries 4, I give you permission
to stop reading. The biggest
hardware change to this
year’s Series 5—that always-
on display—is useful and
cool. It just isn’t a reason to
ditch your Series 4. In fact, if
you turn off the new display
setting, you’ll get slightly
longer battery life. And un-
less you’re a real outdoorsy
person, I can’t see the new
compass being a reason, ei-
ther.
Plus, the new WatchOS 6
operating system, available
for Series 3 and 4 now and
later this fall for Series 1 and
2, adds a bunch of features
that will make your old
watch feel new.
It’s a different story if
you’re considering an Apple
Watch for the first time, or
* * THE WALL STREET JOURNAL.
S&P IT g 0.82% DJ TRANS g 1.08%
checks against the system act-
ing erroneously or causing a
pilot to lose control.
“It was a choice,” this per-
son said. “You don’t want the
solution to be worse than the
initial problem.”
The MAX’s version of
MCAS, however, relied on in-
put from just one of the
plane’s two sensors that mea-
sure the angle of the plane’s
nose. The system also proved
tougher for pilots to override.
Investigators have implicated
the system in the fatal nose-
Dec. 17, 2018 – Jan. 7, 2019
Number of S&P 500 companies
closing at 52-week highs
on
us l,
al a
e
ci on
Share of investors saying they
are bullish on the stock market
50%
40
30
20
10
2019
beaten-down value stocks, of-
ten defined as companies
whose shares trade at a low
multiple of their book value, or
net worth. That includes en-
ergy and financial stocks that
have underperformed the
broader market in recent years.
“With fewer stocks hitting
new highs, the question is: Has
upgrading from a Series 3 or
earlier. Part fitness tracker,
part health monitor, part
daily minder and personal
assistant, the Watch has
evolved into a useful acces-
sory. But given that the two-
year-old Series 3 now costs
$200—half the price of the
Series 5—this year’s buying
decision comes down to how
much money you’d spend…to
possibly save your life. At
least, that’s how Apple is
pitching it.
(Dow Jones & Co., pub-
lisher of The Wall Street
Journal, has a commercial
agreement to supply news
through Apple services.)
For Apple Watch owners,
it has become muscle mem-
ory: Tap the screen—even
with your nose—or lift your
wrist to wake the display.
The Series 5 allows you to
break that habit, with a
screen that always shows the
time but dims nonvital infor-
mation and graphics until
you wake it up.
Two technical changes al-
low the screen to be on all
day without killing the bat-
tery: a new screen compo-
nent that adjusts the refresh
rate, along with optimized
watch faces that go bare
bones when not in use.
Mickey Mouse, for instance,
still points to the hour and
Please turn to page B4
WSJ $ IDX À 0.48% LIBOR 3M 2.099 NIKKEI 21878.90 g 0.91%
dives of a Lion Air jet in Octo-
ber 2018and of an Ethiopian
Airlines MAX in March. Indo-
nesia is expected to fault that
MCAS design, in addition to
U.S. oversight lapses and pilot
missteps, in its final report on
the Lion Air crash into the
Java Sea, The Wall Street
Journal has reported.
Now, Boeing’s expected fix
for the 737 MAX will make its
MCAS more like the one used
in the tanker, people familiar
with the matter said.
Details of the system’s his-
0 companies
’19
Historic average
38.5%
the market been using bond-
proxy sectors as leadership
stocks, or is the low interest
rate environment keeping
other sectors like financials
back that have a bigger
punch?” Mr. Cappelleri said.
Some analysts and inves-
tors said the recent rotation
out of momentum shares is a
Sean Gauthier looks through his sneaker collection, some of which he financed through Affirm.
That New Sweater Is Yours
In Just Four Easy Installments
BY ANNAMARIA ANDRIOTIS
AND PETER RUDEGEAIR
Sean Gauthier wouldn’t
think of using credit cards to
buy sneakers.
“I try to save them for an
emergency situation,” said Mr.
Gauthier, a 38-year-old night-
club manager in New London,
Conn. “If I start online shop-
ping with my credit card, I’ll
start getting nutty.”
Monday, September 30, 2019 | B1
tory and engineers’ desire to
build in safeguards on the
tanker version of MCAS ha-
ven’t been previously re-
ported. The existence of a ver-
sion of MCAS on the tanker
was earlier reported by Air
Force magazine.
MCAS stands for the Ma-
neuvering Characteristics Aug-
mentation System. A Boeing
spokesman declined to explain
why the systems differ on two
airplanes, but said, “The sys-
tems aren’t directly compara-
Please turn to page B2
June 20
112
.
ly
July 3: 109
S&P 500 quarterly earnings growth,
change from a year earlier
25%
20 Analysts’
estimates
15
10
5 chief executive officer of RXR
0
–5
2019 ’20
sign that major averages are
vulnerable to a pullback. Mi-
crosoft Corp., network-equip-
ment maker Cisco Systems
Inc. and software company Or-
acle Corp. were among com-
panies hitting records this
year but are now struggling to
reclaim their highs.
Please turn to page B9
But recently, while browsing
a $140 pair of white, pink and
green Nikes on the app of foot-
wear retailer StockX, he tapped
on an offer from financial-tech-
nology upstart Affirm Inc. that
let him buy the shoes right
away and pay for them over six
months. He could have bought
the colorful kicks outright, but
Mr. Gauthier, who has used Af-
firm several times, said the $5
the company charged him in to-
See more at WSJ.com/Markets
WeWork
Woes Hit
New York
Property
BY PETER GRANT
AND KEIKO MORRIS
Turmoil at WeWork is caus-
ing the shared-office-space
company to all but stop sign-
ing new leases, a fresh blow to
New York City’s already soft-
ening commercial real-estate
market.
Since We Co. Chief Execu-
tive Adam Neumann stepped
down on Tuesday, the com-
pany has reversed its rapid
growth strategy, looking to
slow its expansion, shed head
count and assets, and move
closer to profitability.
That new approach initially
included a decision to forgo
signing any new leases, ac-
cording to people familiar
with the matter. These rental
agreements usually require
WeWork to spend money
building out the space it will
rent and then sublet.
We’s new management
team decided on Thursday to
resume leasing. “We expect
the pace of entering new lease
agreements to slow over the
next several quarters as we
pursue more strategic
Friday.
That decision may not make
much of a difference. The vast
majority of New York City
landlords have little interest in
taking on WeWork as a new
tenant while the company is
struggling to shore up its fi-
nances, brokers and landlords
say.
“WeWork has got to rework
its whole position in the mar-
ketplace,” said Scott Rechler,
Realty, a New York developer
and investor that has WeWork
as a tenant. “Because if they
don’t, landlords aren’t going
to be comfortable doing deals
with them.”
The company recently com-
pleted one large deal in Man-
hattan. WeWork is taking
362,000 square feet at 437
Madison Ave., though it won’t
be able to move in until Janu-
ary 2021, the building’s land-
lord, the William Kaufman Or-
ganization, said.
But some landlords have
shelved potential deals with
Please turn to page B2
AMY LOMBARD FOR THE WALL STREET JOURNAL
tal interest was a small price
for flexibility to pay over time.
Gone are the days when spe-
cial financing plans were
mostly reserved for big-ticket
purchases like TVs and refriger-
ators. Now, sweaters, makeup
or other everyday items can be
paid for in installments with
loans or other payment plans
offered at checkout with thou-
sands of merchants in the U.S.,
Please turn to page B9
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Monday, September 30, 2019 * ***** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople

Forever 21 Files for Bankruptcy

in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A E
Acosta ......................... B5
Affirm Inc....................B1
Afterpay Touch Group B9
Akamai Technologies . A6
Alphabet................A1,B1
Amazon.com.....B1,B3,B9
American Electric
Power........................B9
American Express.......B9
American Tower REIT.B9
Apple...........................B1
B
Bank of America.......A10
Bertelsmann Digital
Media Investments..B3
BHP Group .................. B9
Boeing....................B1,B3
C Jefferies Financial
Carlyle Group..............B5
M
E*Trade Financial.......B5 Mastercard..................B9
F Microsoft.....................B1 BY SOMA BISWAS dresses. It is a major tenant shrinking stores and closing lo- ing leases, according to people
Facebook......................B1 for mall operators in the U.S. cations, Forever 21 pushed into familiar with the matter.
N
Flipkart........................A9 Retailer Forever 21 Inc. filed where it has 541 of its loca- stores that in some cases were Sunday’s bankruptcy filing
Nasdaq ........................ B2 for bankruptcy protection Sun- tions. The company plans to double or triple the size of pre- notes the company has more
Food52.........................B3
Forever21 .................... B2 Netflix.........................B1 day and plans to close hun- close 350 stores globally, in- vious locations. than $1 billion in assets and
G O dreds of stores, the latest casu- cluding as many as 178 in the To help fill them, Forever 21 more than $1 billion in debts.
Oracle .......................... B1
alty of shifting shopping habits. U.S., a spokeswoman said. pushed into categories such as In addition to U.S. closures,
GlaxoSmithKline.........B4
The closely held company, Teens once swarmed to For- menswear, footwear, lingerie the company plans to exit from
Goldman Sachs.........A10 P
which has 800 stores around ever 21’s piles of inexpensive, and plus sizes. The stores were most of its locations in Asia
I PayPal Holdings..........B9 the world, has faced a cash high-fashion-imitating party still too cavernous, and the and Europe. It will continue op-
IEX Group....................B2 PGIM Fixed Income..A10 crunch and been preparing for dresses and tank tops. Its merchandise felt repetitive, ac- erations in Mexico and Latin
Independence Group...B9 Procter & Gamble.......B9 a bankruptcy filing. prices were below those of Ar- cording to former executives, America.
Interactive Brokers S The chain has secured cadia Group Ltd.’s Topshop and customers and analysts. JPMorgan Chase & Co., For-
Group..................B2, B5
Sanofi..........................B4 $350 million in financing to Inditex SA’s Zara. But it went The recent struggles ever 21’s most senior lender,
Intercontinental fund its restructuring. on a rapid store expansion af- prompted the company to en- has agreed to roll over its loan
Exchange...................B2 Schwab........................B5
StockX.........................B1 Forever 21, founded in ter the 2008 recession, just as ter into talks with its landlords to the retailer into a new $275
J 1984, sells low-price apparel shopping was shifting online. about shrinking some of its million bankruptcy financing
T
such as $5 tops and $20 While other chains were bigger spaces and renegotiat- package.
Group ...................... A10 TD Ameritrade Holding
B5
JPMorgan Chase....B2,B9

IEX Group Loses Listings Battle

Cisco Systems.............B1
Citigroup......................B9 K-L
CVS Health..................B4 Kirkland & Ellis...........B5
Lerer Hippeau
D Ventures ................... B3
Discovery Inc...............B3 Lincoln Property ........... B
INDEX TO PEOPLE
C Hesser, Amanda ......... B3
Cappelleri, Frank.........B1 Hickey, Rob ................. B3
Chernin, Peter.............B3 Hoos, Axel...................B4
D J
Durrant, Angela..........B9 John Williams.............A1
E L
Erwin, Marshall..........A6 LaMonica, Salvatore...B5
F Lee, Thomas................B9
Levchin, Max...............B9
Farnan, Joseph Jr. ...... B5
H M
Haegel, Eduard............B9 Mottola, Gary..............B4
Tesaro..........................B4
Tesla.....................B9,B10
W
Walmart.................A9,B9
We...............................B1
R ing-bell ceremony in an at-
Rechler, Scott ............. B1
Roper, Will..................B2
Roseman, Eric.............B2
S dium in the company’s Manhat-
Savage, Stefan............B3
Stubbs, Merrill............B3
T iar with the matter. But no IEX-
Tilton, Lynn.................B5
Troy, Jeffrey................B3
BY ALEXANDER OSIPOVICH
Upstart exchange operator
IEX Group Inc. cooked up its
own version of the New York
Stock Exchange’s daily, open-
tempt to lure corporate listings
from rivals.
The idea: Executives would
stand in front of a white po-
tan office, drop an orange cube
into a slot and a synthetic gong
would sound, say people famil-
listed companies ever took part.
Last week, IEX scrapped its
five-year effort to get compa-
nies to list with it after its only
success, Interactive Brokers
Group Inc., jumped ship.
IEX’s retreat shows how
tough it is to take on established
players in finance but also in
any business where a company
has generated a network effect.
Before users of an existing plat-
form will jump to a new offer-
ing, they want to see that plenty
of others are already there.
That confers huge advantages
on firms with large networks,
from Facebook Inc. to the NYSE
and Nasdaq Inc. The latter two
hold an effective duopoly for
corporate listings in the U.S. and
have for more than a decade.
“It has become clear that the
legacy exchanges have a strong-
hold on this market,” IEX Chief
Executive Brad Katsuyama wrote
in a Sept. 23 blog post announc-
ing the company’s exit from the
business. He said IEX would fo-
cus on its core trading business
and new ventures in data and
technology.
Founded in 2012, IEX han-
dles about 3% of daily trading
volume in U.S. stocks, com-
pared with 20% for Nasdaq and
24% for the NYSE. In 2014, Mr.
Katsuyama and his team be-
came unlikely celebrities with
the publication of Michael
Lewis’s book “Flash Boys: A
Wall Street Revolt,” which cast
them as crusaders against
predatory high-speed traders.
Previously focused on trad-
ing technology, IEX tried to le-
verage its fame to make a
splash in listings.
NYSE parent Intercontinen-
tal Exchange Inc. and Nasdaq
generated a combined $734
million from listings last year,
which contributed just a frac-
tion of their top lines. Even a
small slice of that revenue
would have boosted IEX, whose
main exchange unit had 2018
revenue of $143 million, ac-
cording to a regulatory filing.

.
ly
Estimated Box-Office Figures, Through Sunday
SALES, IN MILLIONS on
FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE

1. Abominable Universal $20.9 $20.9 --

2. Downton Abbey Focus Features $14.5 $59.5 -53
us l,

3. Hustlers STX $11.5 $80.6 -32

Entertainment
al a
e
4. It Chapter Two Warner Bros. $10.4 $193.9 -39
5. Ad Astra Twentieth $10.1 $35.5 -47
ci on

Century Fox
*Friday, Saturday and Sunday Source: Comscore
er rs

WeWork coln Property counts WeWork

as a tenant in more than a
dozen locations and executives

Troubles say they maintain a good rela-

m e

tionship and continue to dis-

cuss future deals.

Hit NYC But with We’s initial public

m rp

offering plans on hold as the

company weighs big layoffs
and other cost-cutting mea-
Continued from the prior page sures, Lincoln executives re-
WeWork that were under ne- main cautious.
co Fo

gotiations, and some building “We know there are going

owners are considering termi- to be repercussions,” said Eric
nating agreements with We- Roseman, the firm’s vice presi-
Work in instances where dent of innovation. “We just
spending on capital improve- don’t know if the whole moun-
ments hasn’t begun, brokers tain is going to get wiped out.”
and building owners said. S&P Global Ratings on
LINDSEY WASSON/REUTERS

Landlord sentiment souring Thursday said it cut a We en-

on WeWork could further tity’s credit rating to the lower
weigh down the New York City junk rating of single B-minus
office market, which is the from single-B, reflecting
country’s largest. “heightened uncertainty
Office leases in Manhattan around The We Company’s
have come under pressure in ability to raise capital to sup-
n-

recent years from an abun- port aggressive growth and Boeing developed its MCAS flight-control system during the early 2000s for the KC-46A Pegasus, a military refueling plane.
dance of new supply, from the the pressure this places on li-
World Trade Center to the
new Hudson Yards in Mid-
quidity,” S&P said.
Manhattan, where WeWork Jet Design tion Administration safety re-
quirements, people familiar Rivalry With Airbus conditions, endangering the
no

town, and new office designs became the biggest office with the matter said. So engi- plane’s ability to win
Led to the 737 MAX
that reduce the amount of
space per worker.
Other big U.S. office mar-
lease holder last year and now
occupies more than 7 million
square feet, could be hit the
Cut Some neers devised MCAS software,
which automatically pushes
down the tanker’s nose if nec-
certification from the Federal
Aviation Administration, people
familiar with the matter said.
kets could also suffer from the
current aversion to WeWork.
Building owners in cities in-
hardest.
WeWork rivals like Indus-
trious LLC and Convene have
Safeguards essary, to comply with FAA
standards, these people said.
In a key difference from the
Boeing Co. began develop-
ing the 737 MAX jet in 2011
amid competition with rival
The large engines on the
MAX essentially had the same
effect on the plane’s
cluding Chicago, Boston, Los been growing. But they are subsequent version of the sys- Airbus SE, which had been en- aerodynamics that the
Angeles and San Francisco much smaller than WeWork Continued from the prior page tem used on the MAX, the sys- ticing airline customers with its refueling pods had on the
have relied heavily on WeWork and haven’t been as aggressive ble.” The contrast in design tem on the tanker moves the new single-aisle passenger jet. military plane.
to fill excess space and to ap- in taking new space. highlights how different teams plane’s horizontal stabilizer— The MAX’s new fuel- Engineers who had worked
peal to startup companies at- “Most of [WeWork’s] com- of Boeing engineers wound up the control surface perpendic- efficient engines were larger on the tanker suggested MCAS
tracted to co-working’s layouts petitors emphasize their more including protections on one ular to the airplane’s tail— and placed farther forward on —or Maneuvering
and ethos. Co-working tenants deliberate pace of growth,” airplane but not on a later once per activation and not the wing than on previous 737 Characteristics Augmentation
occupy 54.2 million square said Mary Ann Tighe, chief ex- model of another aircraft. repeatedly, the person familiar models. That caused the System—as a possible solution
feet nationally and more than ecutive of the New York region Boeing has said the MAX, with the tanker project said. plane’s nose to pitch up in for the MAX engineers, people
16.5% of office demand since for commercial real-estate with its revised MCAS, will be The tanker engineers also certain extreme flight familiar with the matter said.
the beginning of 2017 can be firm CBRE Group Inc. among the safest airplanes gave the system only limited
attributed to WeWork and WeWork also became a fa- ever to fly. power to nudge the plane’s
other co-working firms in 54 vorite New York tenant in part After the MAX operated by nose down to ensure that pi- identify an MCAS misfire as an the stick, the pilot is com-
major U.S. markets, according because it was sometimes Lion Air crashed, Air Force of- lots would be able to recover emergency known as a run- pletely in control.”
to data firm CoStar Group Inc. willing to pay above market ficials said they were con- if it accidentally pushed the away stabilizer, then counter- On the MAX, MCAS’s design
Dallas-based developer Lin- rents to keep its growth firing. cerned their tanker, known as plane into a dive, said the per- act the system with a long- required it to remain active
the KC-46A Pegasus, shared son familiar with the tanker’s standing cockpit procedure. even if pilots pulled back on
the same problems. An Air MCAS design. That meant The more advanced flight- the controls, making it more
Force spokeswoman said se- MCAS had little authority over control computer systems on complicated to stop the sys-
nior officials met with their the stabilizer, which made it the tanker also made it easier tem from forcefully and re-
Boeing counterparts to con- easier for pilots to counteract. for MCAS to compare data peatedly pushing down the
firm the tanker’s MCAS com- Boeing said it isn’t aware of from multiple sensors, the nose.
plied with military require- any consideration to rely on person familiar with the Since days after the March
ments for designs that prevent both sensors that measure the tanker project said. “The un- crash of a 737 MAX in Ethio-
a single faulty sensor from angle of the plane’s nose when derlying architecture was pia, that aircraft has been
causing a system to fail. its engineers designed MCAS there to take advantage of,” grounded world-wide. The
Boeing developed the MCAS for the 737 MAX. A single “an- this person said. flight ban has thrown a
for the military tanker around gle of attack” sensor was Aside from sensors, the wrench into airline finances
the early 2000s, another per- deemed sufficient, and Boeing tanker MCAS has another key and planning, and disrupted
son familiar with the project has said it complied with safeguard. Pilots of the tanker customers’ travel plans.
DAVID ‘DEE’ DELGADO/BLOOMBERG NEWS

said. The tanker was a military
derivative of Boeing’s wide-
body 767 commercial jet and
included pods on its wings
used for air-to-air refueling of
fighters and other war planes.
Those wing pods added lift
and caused the tanker’s nose
to pitch up in some flight con-
ditions, risking the plane’s
WeWork offices. Some landlords have shelved potential deals. ability to meet Federal Avia-
safety and regulatory require-
ments. Other systems on ear-
lier 737s relied on single sen-
sors, former Boeing engineers
and others familiar with the
designs have said.
Boeing instead relied pri-
marily on pilots as the back-
stop should that plane’s MCAS
misfire. MAX engineers deter-
mined pilots would quickly
can override MCAS by simply
pulling back on controls, ac-
cording to a senior Air Force
official and others familiar
with the matter.
“We have better sensor
data,” said Will Roper, an as-
sistant Air Force secretary
who is the branch’s procure-
ment chief. “But most impor-
tantly, when the pilot grabs
The new MCAS for the 737
MAX is expected to rely on
two sensors to verify data. It
will fire once, not repeatedly,
each time it activates. And pi-
lots will be able to override
the system by pulling back on
the controls.
—Andy Pasztor, Elisa Cho
and Jim Oberman
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Monday, September 30, 2019 | B3

BUSINESS NEWS

Effort Revived to Prevent Plane Hacking

BY ROBERT MCMILLAN
AND DUSTIN VOLZ
Concerns that planes could
be targeted in cyberattacks are
prompting U.S. officials to re-
energize efforts to identify air-
liners’ vulnerability to hacking.
The revived program, led by
the Department of Homeland
Security and involving the Pen-
tagon and Transportation De-
partment, aims to identify cy-
bersecurity risks in aviation
and improve U.S. cyber resil-
ience in a critical area of public
infrastructure, a DHS official
said. DHS is offering few details
on the program but says it will
involve some limited testing of
actual aircraft.
Transportation and national-
security officials remain con-
cerned that aviation is a pre-
ferred target for terrorists and
that cyberattacks could provide
a new avenue to threaten
planes and passengers.
The new U.S. program is try-
ing to ensure that hackers can’t
exploit potential vulnerabilities
in electronic systems of new
and old airliners. The scrutiny
comes after cyberattacks that,
in recent years, have attempted
to disrupt such internet-con-
nected sectors as energy grids
and electoral systems.
The U.S. Air Force separately
plans to take a bigger role in
examining the security of sys-
tems used in commercial avia-
tion. Many of the systems are
also used by the military. “If we
don’t probe first, our adversar-
ies will,” Will Roper, the ser-
vice’s assistant secretary for ac-
quisition, technology, and
logistics, said in an interview.
“We’ve been a little complacent
in not trying to attack all of the
parts of the airplane.”
Cyberattacks against airlines
have targeted weaknesses in in-
formation-technology systems
rather than aircraft. British Air-
ways is facing a $230 million
fine in the U.K. after about a
half-million passenger records
were accessed during a 2018
cyberattack. Air Canada and
Hong Kong’s Cathay Pacific also
reported data hacks last year.
“There are many risks in avi-
ation beyond looking at the air-
craft,” said Jeffrey Troy, presi-
dent of the Aviation Information
Sharing and Analysis Center, a
nonprofit industry organization
focused on cybersecurity. “It’s
very important to be looking at
Cyberattacks
against airlines have
targeted IT
weaknesses.
the whole ecosystem and identi-
fying key points where a digital
system, if it were to malfunc-
tion, could cause a bad day for a
lot of people.”
The Air Force operates more
than 5,300 planes—including
converted airliners such as the
Boeing 747, the model used as
Air Force One when carrying
the president. The service has
used internal teams to probe its
systems and look for potential
weaknesses adversaries could
exploit. Mr. Roper said he
wants the Air Force to look
with more urgency for cyberse-
curity weaknesses.
The Air Force sent 28 people
to Defcon, the annual hacking
convention, in Las Vegas this
year to participate in its first-
ever dedicated “hacking vil-
lage,” where researchers could
try to find vulnerabilities in
aviation systems.
Stefan Savage, a computer-
science professor at the Univer-
sity of California San Diego,
said it is important to have
more outside scrutiny of avia-
tion cybersecurity because
manufacturers aren’t always
willing to own up to security
problems, especially when fix-
ing them would be costly.
“Beyond trusting Boeing,
who’s the backstop?” he said.
Mr. Savage is on a team of re-
searchers who assembled a test
bed containing many of the sys-
tems found on a Boeing 737 to
carry out security testing.
Handling the sensitive infor-
mation such tests can highlight
is tricky. The plane-testing
component of a Department of
Homeland Security effort,
called the Avionics Cybersecu-
rity Initiative, was cut short
last year amid a disagreement
with Boeing Co. over the test-
ing methodology and plans to
publicly release some findings.
DHS said as part of that ini-
tiative it had acquired a used
Boeing 757 airliner in 2016 and
spent more than $10 million to
identify potential cybersecurity
vulnerabilities. Program admin-
istrators had planned to run 15
cybersecurity tests on the ap-
proximately 30-year-old jet. But
the plane hasn’t been touched
in more than a year because of
the disagreement over some of
the program’s early findings.
The program’s manager, Rob
Hickey, a former Air Force pilot,
described some of the findings
at a November 2017 aeronautics
cybersecurity conference, saying
testers were able to access some
of the airplane’s systems using
radio frequency communica-
tions, according to a report in
the trade publication Avionics
International.
Boeing, which disputed some
of the findings, felt blindsided
by Mr. Hickey’s disclosure, ac-
cording to current and former
DHS officials, and testing of the
plane’s systems was put on
hold. “We had some disagree-
ments about some of the spe-
cific tests. We had to work
through those,” one official fa-
miliar with the program said.
“There were valid points on
both sides.”
Mr. Hickey said in an
emailed statement he hopes the
DHS resumes the testing proto-
col that his team developed
“for the good of all—especially
the flying public.”
Boeing said it supports the re-
constituted cybersecurity initia-
tive and may participate at next
year’s Defcon conference. “We
need to bridge the gap between
the hacking community and the
industry,” an official said.

Venture Firm TCG Buys Stake in Cooking-Tools Firm

BY BENJAMIN MULLIN
Food52, a digital bazaar
that sells upscale home goods,
said it sold a majority stake to
venture firm TCG for $83 mil-
ipes and home-improvement
tips as well as selling its own
products to online shoppers.
Two of its top sellers are an
apron with built-in potholders
($45) and a double-sided cut-
retailers like Amazon.com Inc.
to buy other products.
Food52 gets a tiny fraction
of its revenue from affiliate
sales, a spokesman said.
Ms. Hesser, Food52’s chief

.
lion, a deal that gives TCG an ting board with an extra-deep executive, and Ms. Stubbs, the

entree into the world of fine
dining and home accessories.
The companies said the
stake sale values Food52 at
more than $100 million.
Food52 said it generated about
$30 million in revenue last
year but isn’t profitable.
juice-trough ($59).
Food52 incorporates guid-
ance from its audience while
developing its products, Ms.
Hesser said. The popular
apron and cutting board were
informed by suggestions from
Food52 readers, who re-
us l,
ly
company’s president, said in
an interview that they decided
to sell a stake in the company
on after a process that began last
year with an email from a TCG
employee. The company’s line
of custom home goods was
selling briskly, and the co-

AMY LOMBARD FOR THE WALL STREET JOURNAL

Food52 previously raised
$13 million from investors in-
cluding Lerer Hippeau Ven-
tures, Bertelsmann Digital
Media Investments Inc. and
sponded to a survey on the
company’s website.
al a
e
“In retail, there’s almost no
interaction between the con-
sumers and producers,” Ms.
ci on
founders decided to take on
additional investment to ex-
pand that business.
“We realized that there was
huge potential to really blow

Scripps Networks Interactive,
which was acquired by Dis-
covery Inc. last year.
Founded in 2009 by
Amanda Hesser and Merrill
Hesser said. “We wanted to
break down those walls.”
Food52 is among a crop of
media companies that make
much of their revenue from e-
er rs
this out,” said Ms. Stubbs.
TCG was founded in 2018
by Peter Chernin, the former
chief operating officer of News
Corp, the parent company of

Stubbs, veteran food journal-
ists who worked for the New
York Times, Food52 offers rec-
no
commerce—both by selling Wall Street Journal publisher
their own products and by re- Dow Jones & Co., alongside
ferring their readers to online Mike Kerns and Jesse Jacobs. Merrill Stubbs, left, and Amanda Hesser, center, with chef Allison Bruns Buford
m e
m rp
co Fo
n-
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

TECHNOLOGY & BUSINESS WSJ.com/Tech

Scammers Find Lucrative Targets Online

Craigslist and eBay rights owners, law enforcement
and government officials, “en-
are among the most sure a safe shopping experi-
profitable venues for ence” for its customers.
The study comes as scam-
swindlers, study finds mers appear to be expanding
their activities, helped in part
BY YUKA HAYASHI by social media and online
transactions.
The online ads that you Consumers filed 372,000
willingly click on are more fraud complaints to the Fed-
likely to make you a scam vic- eral Trade Commission report-
tim than the robocalls flood- ing a total loss of $1.5 billion
ing your phone with urgent in 2018, with the number of
messages. complaints up 34% from 2017,
A study of consumer behav- according to tallies by the re-
ior toward schemes found that port’s authors.

SARAH HOFFMAN FOR THE WALL STREET JOURNAL

scammers are far more likely Characteristics often found
to succeed in engaging and among scam victims included
stealing money from potential feelings of loneliness and be-
targets by using websites and ing isolated from others, the
social media than through the study found. People from
phone calls and emails they lower-income households, de-
have long used. fined as those earning $50,000
That tendency has made or below annually, also en-
online marketplaces like gaged and lost money at sig-
Craigslist and eBay among the nificantly higher rates than
most lucrative venues for others.
scammers to hunt for targets, The respondents to the
along with social-media plat- study—among the over 90,000
forms, the study found. Lisa Bryant says she sent $16,400 for a deck boat she saw on Craigslist to the seller’s bank account, but it was never delivered. consumers who submitted
Such scammers often run scam reports to BBB—included
official-looking websites with Those represent far higher most easily fall victim to what self a well-educated consumer Soon after Ms. Bryant sent both victims and those who
fake consumer reviews and try success rates for scammers the BBB categorizes as “online who does her homework be- an agreed-upon purchase escaped the harm of scam at-
to lure targets with items in- than they experience through purchase” scams, which in- fore making purchases. When amount of $16,400 to the tempts. Of all those who par-
cluding used cars, vacation phone calls and voice mail, volve purchases and sales on the 49-year-old program man- seller’s bank account, she said, ticipated in the survey, report-
rentals and tickets to popular where only 39% of respon- direct seller-to-buyer sites like ager for an aerospace com- the company went silent. The ing scams from any of the
concerts and sporting events. dents engaged and 11% lost Craigslist and eBay. Scammers pany spotted a Tahoe deck boat was never delivered, she sources studied, 47% said they
The study, conducted money. Some 42% of scam may pretend to purchase an boat that she and her husband said, and the seller’s website is didn’t engage with the scam-
jointly by the consumer-edu- emails drew engagement and item and then send the seller a had been looking for on now defunct. She said she asked mers. Among the others, 30%
cation arms of Better Business 13% led to monetary losses. bogus check and ask for a re- Craigslist last month, she her bank to reverse the payment engaged but weren’t victim-
Bureau and the Financial In- The median losses among fund of the “accidental” over- carefully studied the website but hasn’t heard back. ized while 23% engaged and
dustry Regulatory Authority those who participated in the payment. In other cases, the of a consignment warehouse Other victims who alerted lost money.

.
along with the Stanford Center study were around $600. scammer, when posing as a that was handling the transac- BBB in recent months include The study’s findings under-

ly
on Longevity, was based on in- The findings surprised the seller, will simply never de- tion and claimed to be located a California consumer who re- scored the effectiveness of in-
terviews of 1,408 consumers in study’s authors. “It could be liver the goods or send fake or not far from her home in Ta- ported losing $300 on concert tervention by companies or
2018 who filed a fraud tip or that our defense may be down inferior items. coma, Wash. tickets offered on Craigslist. A agencies involved in transac-
report to the BBB between or lowered when we are on a on Nearly half of the people “It’s a great website. It’s very Maryland victim reported hav- tions, such as bank tellers and
2015 and 2018. site that we choose to visit,” who reported encountering sophisticated,” she said. “It ing lost $203 for DJ equip- employees of wire-transfer
On social media, 91% of the said Gary Mottola, research di- online purchase scams lost makes it look like they have ment he agreed to buy on services, the authors said.
respondents said they initially rector for Finra Investor Edu- money, compared with other been in business forever. It had Craigslist and paid for via Pay- Among the respondents who
failed to recognize fraudulent cation Foundation. “It is easier prevalent types of schemes references. It had reviews and Pal. These reports weren’t ver- engaged with scammers, 20%
us l,

advertisements as scams and to identify fraudulent activity such as “tech support” scams, listed all the locations.” ified by BBB. reported that such organiza-
proceeded to engage, and 53% when it comes through active where 32% reported losing That, she said, made her ig- Representatives for Craigslist tions intervened or tried to in-
al a
e
eventually lost money. channels like phone calls money, and sweepstakes/lot- nore some warning signs, in- couldn’t be reached for com- tervene to stop the scams and
On websites, 81% of re- where we expect it to come tery scams, where 15% became cluding a wire transfer that ment. An eBay spokesman said successfully prevented mone-
spondents engaged and 50% through.” victims. initially failed to go through the company’s technology, com- tary losses in more than half
ci on

lost money. The study found people Lisa Bryant considers her- and the lack of listing on Yelp. bined with its partnerships with of those cases.

Glaxo Says
ADVERTISEMENT

The Marketplace
er rs

To advertise: 800-366-3975 or WSJ.com/classifieds

Data Back
Tesaro Buy
m e

CLASS ACTION

 
           
m rp

      BY CARLO MARTUSCELLI

     
      GlaxoSmithKline PLC has

  !  " " #  $ %  & '  reported positive results from
( )               a study of a cancer drug in a
      
co Fo

clinical trial that a senior fig-

KENNY WASSUS/THE WALL STREET JOURNAL

* + $' , ( )  -'       ure in the company said justi-

. -'        / 0  %'     fied the decision to acquire
1 2 1 $          " $' # % cancer specialist Tesaro for
 

      3   4  $4.16 billion.
Axel Hoos, head of oncology
 $                # " %
research at the drugmaker,
      5$6   ( 56      78 % said Saturday the results of
1  )9, the phase 3 Prima study could
1           -'      change how women with ovar-
 4  
  
:

;  <   ian cancer are treated.
$ " &' (( ( ,   =' 9 (  Data from the clinical trial
. -'   "     '   %   The Apple Watch Series 5 now contains a compass, along with a new always-on display. showed that women with
              %$  = $  ovarian cancer could benefit

Apple’s
n-

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  dently recommend to all. (If some extensive testing of from treatment with Glaxo’s
you weren’t confused that last year and found it drug Zejula regardless of
 = $  "     " $    enough: The 4 is no longer worked as promised. whether they had specific ge-

Smartwatch
       %             on sale; Apple replaced it With those differences, netic mutations, Glaxo said.
no

   '     8   "  $'   with the 5, which costs the and the $200 price delta, The pharmaceutical giant
  
 
 
     same.) you’re faced with an unusual picked up the drug as part of
 

         
    
    !   !!  
 
Always On The upgrade from the 4 to
5 isn’t going to be worth it for
most, though. The big ques-
gadget buying decision: How
much are you willing to pay
to save your life? Apple is
its takeover of Tesaro in De-
cember. At the time, some fi-
nancial analysts criticized the
tion is for new buyers of the even marketing the lifesaving company for overpaying, and
 :  
   
      Continued from page B1 watch. Do you get the start- capabilities in videos like shares of Glaxo slumped after
       $       ' %  minute but stops tapping his ing-at-$200 Series 3, or the this. It feels a bit icky to the deal was disclosed.
   $       " $ $ " foot to count out every sec- starting-at-$400 Series 5? have to make that decision.
!
 
ond. Apple optimized all Both watches can run the The Series 5 (like the Se-

BUSINESS OPPORTUNITIES BANKRUPTCIES

watch faces to support this.
I’ve already found the al-
ways-on helpful. When racing

new WatchOS 6 software,
which is itself a big upgrade.
It includes new watch faces,
ries 4) is another refinement
of the best smartwatch you CVS Pulls
Zantac After
can buy. Unlike with earlier
 



 
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# &      &  11 p.m.—with just under 10% set up the Apple Watch or could contain low levels of a
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 abled the always-on feature loud noises. Oh, there’s also, an iPhone. CVS said Saturday that it is
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# maining—just like with my Hardware-wise, the Series a magnetic charging disc re- abundance of caution.”
      
    
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      not the larger 44 mm model.) able fitness tracker in its own Why not charge with the purchased these products at
       
  
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 trusty compass, enabled by Series 5 buys you a bigger, al- ger that works with my fund.
  
 

 
 the watch’s new magnetome- ways-on screen, thinner de- iPhone and AirPods? Zantac is sold by Sanofi
 




 


ter, just once. I was coming sign and better battery life— •Before heading out for a and generically under the
THEMARKETPLACE out of the subway and plus more sophisticated run, I was stuck syncing mu- name ranitidine.
ADVERTISE TODAY wanted to make sure I was health monitoring. sic and pairing AirPods with A Sanofi spokesman said
 
 
 headed in the right direction. The Series 5’s ECG app re- lots of taps and settings ad- Sunday that the company is


    . (800) 366-3975
  The Series 5 is, otherwise, cords your heartbeat using justments. I wish syncing ev- working closely with the FDA
For more information visit: just like the Series 4. And an embedded electrical heart erything were simpler. and conducting its own inves-
!!"##!" wsj.com/classifieds
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" that’s a great thing. The Se- sensor and can check for Apple declined to com- tigations. The company has no
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ries 4’s bigger screen and atrial fibrillation (AFib). It ment on future products and plans to stop distributing or
© 2019 Dow Jones & Company, Inc.
    All Rights Reserved. health features made it the also can detect falls and alert features. Translation: See you manufacturing Zantac or other
first watch I could confi- emergency contacts. I did next watch! ranitidine products, he said.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. NY Monday, September 30, 2019 | B5

BUSINESS & FINANCE

Fed Rate Cuts Put Pressure on E-Brokers

Industry’s price war
results in fees that
are near zero for
products and services
BY LISA BEILFUSS
Depending on where you
turn, it can seem as though it
costs almost nothing to buy
and sell stocks, invest in ex-
change-traded funds and even
get financial advice.
But some of the juice be-
hind the intensifying price war
under way across the broker-
age industry is drying up.
Electronic brokers in recent
years have become more reli-
ant on their banking arms,
which effectively subsidize low
trading and investing fees. A
key element of the business
model was rising interest
rates, but a flip in Federal Re-
serve policy this year to cut-
SHANNON STAPLETON/REUTERS
ting them has changed the
equation for e-brokers.
“Their fate largely rests
with what the Fed decides to
do,” said Steven Chubak, a
brokerage analyst at Wolfe Re-
search.
Mr. Chubak and others said
it would be hard for online
brokers to walk back the deep
discounts customers have
grown used to. For now, they
are culling expenses.
Charles Schwab Corp. ear-
lier this month said it would
cut 600 jobs, or 3% of its
workforce. E*Trade Financial
Corp. has said it is focusing on
managing expenses, trimming
such functions as marketing.
TD Ameritrade Holding Corp.
has said it would close about
20% of its retail branches.
In the past decade, Schwab
has led the brokerage industry
in slashing prices for trading,
investing and personal finan-
cial advice to nearly nothing.
Dirt-cheap fees have helped
Schwab and its e-broker rivals
take on Wall Street. In the lat-
est move, Interactive Brokers
Group Inc. said it would let
customers trade U.S.-listed
stocks and ETFs with no fees—
the first major online broker-
age to fully waive trading fees.
But nothing is free. Behind
the low prices offered to cus-
tomers has been an explosion
in the banking arms connected
to online brokers. The bet has
been that customers would pre-
fer to sacrifice earning interest
on their cash, and in some
cases be willing to allocate
more of their investment port-
folios to cash instead of invest-
ing it, in exchange for low or no
fees for products and services.
For example, Schwab in re-
cent years began offering fee-
free digital financial advice.
The trade-off: Clients must
hold a relatively high por-
tion—up to 30%—of their
Share of Schwab's revenue sweep money from clients’
from banking brokerage accounts into their
banks, where the companies
60%
can earn more on the cash by
investing the money them-
50 selves and lending it out.
At Schwab, bank revenue
40 now represents 60% of the
overall amount, up from 38%
in 2014. For E*Trade and TD
30
Ameritrade, revenue generated
by client cash now comprises
20 about three-quarters and one-
half of their businesses, re-
10 spectively. That reliance
means the online brokerage
0 industry is increasingly at the
mercy of the Fed.
2008 ’10 ’12 ’14 ’16 ’18
One Schwab executive said
Source: the company the company’s tilt toward its
bank to drive profit intensified
portfolio in cash, which is in recent years owing to ex-
swept to the banking arm. pectations for rising interest
Rising interest rates have rates. Rates were pinned near
been key to this business zero for nearly a decade, a pe-
model because they have more riod Schwab Chief Executive
than made up for falling fee Walt Bettinger has called pun-
revenue. Schwab and others ishing, with “no other way to
describe the financial impact
on our company.”
Now the path for more eas-
ing is more aggressive than
Schwab and others were pro-
jecting, according to Mr. Chu-
bak. “I don’t think anyone an-
ticipated a trade war, or that
it would drive any sort of
global slowdown to the extent
it has,” he said.
Analysts aren’t expecting a
return to zero interest rates,
and there are also silver lin-
ings that help offset the im-
pact of falling rates. When a
weaker economy weighs on the
stock market, investors typi-
cally move a bigger share of
their portfolios to cash for
safety, and some of that cash is
expected to flow into the bro-
kerages’ banks. And when rates
drop, some customers who
might otherwise move cash to
higher-yielding alternatives
may be less motivated to do so
because of those lower rates.

.
ly
Lynn Tilton raised money to lend to troubled companies.
on
Judge Orders Financier
us l,
al a
e
To Continue Efforts
ci on

To Sell Businesses
BY PEG BRICKLEY up for sale have largely been
masked from public view. They
er rs

A bankruptcy judge ruled number far fewer than the 75

that Lynn Tilton must con- companies that Ms. Tilton and
tinue to support efforts to find Patriarch claim as part of the
buyers for troubled companies portfolio.
m e

that owe money to her bank- Some Patriarch businesses

rupt Zohar investment funds. were dissolved in bankruptcy,
The ruling from Judge but others seem to have sim-
m rp

Karen Owens of the U.S. Bank- ply closed.

ruptcy Court in Wilmington,
Del., was a blow to Ms. Tilton,
who argued unsuccessfully
that her duty to try to sell
One of the most prominent
of the businesses was Trans-
Care Corp., a New York ambu-
lance operation that was
co Fo

those companies ends when a owned largely by Ms. Til-

temporary legal settlement
with Zohar creditors termi-
nates. A lawyer for Ms. Tilton
said she would appeal.
The peace pact will expire
soon, Judge Owens said at a
hearing Friday. The ruling
marked the latest in a series
of legal contests involving Ms.
Tilton’s distressed-investing
empire.
She founded the Zohar
funds to raise money from in-
ton. TransCare owed the Zo-
har funds more than $30 mil-
lion when it filed for
bankruptcy in early 2016,
court papers say. Employee
paychecks bounced.
Ms. Tilton has denied alle-
gations she mishandled Trans-
Care’s affairs, which arose in a
lawsuit brought by bankruptcy
trustee Salvatore LaMonica,
who is seeking to claw back
$16 million in alleged unlawful
n-

vestors to lend to a collection transfers and collect $67 mil-

of troubled businesses. lion in damages from Ms. Til-
The Zohar funds are trying ton.
to collect $1.8 billion they owe Ms. Tilton created the Zo-
no

those investors. But sales of har funds to fuel her turn-

two of the companies linked to
Ms. Tilton brought in less than
$150 million—well short of
what was needed to extend a
standstill agreement between
her and her Patriarch Partners
management firm on the one
hand and the Zohar funds on
the other.
Much of the legal wrangling
is over who has the better
claim to owning the busi-
nesses. Delaware’s Court of
Chancery recognized the Zo-
har funds as owners of some
of the companies, over Ms.
Tilton’s protests. She put the
Zohar funds into bankruptcy
shortly before Delaware’s Su-
preme Court was set to hear
her appeal.
The businesses being put
around empire and resorted to
bankruptcy twice to protect
them, most recently last year.
Joseph Farnan Jr., a former
federal judge, was put in
charge of the Zohars in bank-
ruptcy court and has said he
would sell the underlying com-
panies to pay down the debts.
Mr. Farnan and others in-
volved in the Zohar bankrupt-
cies said the settlement agree-
ment was clear and called for
continued cooperation by Ms.
Tilton in sales efforts.
Ms. Tilton resigned as man-
ager of the loans in the Zohars
during a 2016 pass-through
bankruptcy, when the first of
the funds defaulted, but says
she still has an ownership in-
terest in them.

Marketing Firm Acosta

To Skip Interest Payments
BY ALEXANDER GLADSTONE
Acosta Inc. plans to skip
coming interest payments as it
prepares for a balance-sheet re-
structuring, the marketing-ser-
vices company said.
Acosta and a group of lend-
ers have agreed the company
“should defer making certain
upcoming debt service pay-
ments,” it said. Lenders have
agreed not to take action to en-
force their rights in connection
with the deferred payments
while restructuring negotia-
tions continue, it said.
The Carlyle Group-owned
company has engaged Kirkland
& Ellis LLP as counsel to pre-
pare for a debt restructuring
and planned to miss a roughly
$31 million coupon payment due
Oct. 1 to creditors holding $800
million in unsecured bonds due
2022. Acosta provides sales and
marketing services to compa-
nies such as Coca-Cola Co., Ty-
son Foods Inc., Kraft Heinz Co.
and Clorox Co.
For the fiscal quarter ended
July 31, Acosta revenue de-
clined 15%, while adjusted earn-
ings before interest, taxes, de-
preciation, and amortization
declined 6.4%.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as 52 wk 52 wk 52 wk Prem12 Mo 52 wk
measured by assets. Closed-end funds sell a limited Prem Ttl Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Prem Ttl
number of shares and invest the proceeds in securities. Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
Unlike open-end funds, closed-ends generally do not EVMuniBd EIM 13.97 12.94 -7.4 3.9
buy their shares back from investors who wish to cash Specialized Equity Funds EtnVncTxMgdBuyWrtOpp ETV NA 14.43 NA -1.5 EtnVncFltRteInc EFT NA 13.23 NA 6.6 EVMuniIncm EVN 13.87 12.82 -7.6 4.3 SharesPost 100:L 29.08 NA NA 0.4
in their holdings. Instead, fund shares trade on a stock EvTxMnDvsEqInc ETY NA 11.89 NA 1.1 USQ Core Real Estate:I 25.66 NA NA 4.7
exchange. NA signifies that the information is not
Aberdeen Glb Prem Prop AWP 7.01 6.20 -11.6 13.0 EV SenFlRtTr EFR NA 12.98 NA 6.8 EVNatMuniOpp EOT 21.63 22.46 +3.8 4.3
available or not applicable. NS signifies fund not in Adams Natural Resources PEO 18.85 15.93 -15.5 -15.9 EtnVncTxMgdGlbB ETW NA 9.62 NA -12.0 EVSnrIncm EVF NA 6.13 NA 6.4 InvAdvMuIncTrII VKI 12.06 11.28 -6.5 4.9 USQ Core Real Estate:IS 25.66 NA NA 4.7
existence of entire period. 12 month yield is computed GI NFJ DivInt&PremStr NFJ 13.66 12.23 -10.5 0.8 EVTxMnGblDvEqInc EXG NA 8.25 NA -4.3 FT/Sr Fltg Rte Inc 2 FCT 13.70 12.01 -12.3 6.3 Invesco MuniOp OIA 7.71 7.83 +1.6 4.8 Versus Cap MMgr RE Inc:I 28.35 NA NA NE
by dividing income dividends paid (during the previous BR Enh C&I CII 16.80 16.00 -4.8 -0.8 First Trust Energy Inc G FEN 21.63 22.00 +1.7 10.1 FT/Sr Fltg Rte 2022 TgTr FIV 9.51 8.88 -6.6 5.0 InvescoMuOppTr VMO 13.48 12.50 -7.3 4.9 Versus Capital Real Asst 25.67 NA NA 5.5
twelve months for periods ending at month-end or
during the previous fifty-two weeks for periods ending BlackRock Energy & Res BGR 12.14 11.35 -6.5 -15.7 First Tr Enhanced Eq FFA 15.78 16.09 +2.0 8.6 Highland Income HFRO 13.96 13.42 -3.9 7.0 InvescoMuTr VKQ 13.49 12.62 -6.4 4.9 Wildermuth Endwmnt:A 13.62 NA NA 4.8
at any time other than month-end) by the latest BlackRock Eq Enh Div BDJ 9.59 9.18 -4.3 3.3 FirstTrEnergyInfra FIF 18.08 16.25 -10.1 12.4 InvDYCrOpp VTA 12.50 10.93 -12.6 8.4 InvescoQual Inc IQI 13.61 12.78 -6.1 4.9 Wildermuth Endwmnt:C 13.24 NA NA 4.1
month-end market price adjusted for capital gains BlackRock Enh Glbl Div BOE 11.64 10.37 -10.9 1.5 FirstTrMLPEner&Inc FEI 12.36 11.34 -8.3 0.6 InvSnrIncTr VVR 4.71 4.15 -11.9 6.6 InvTrInvGrMu VGM 13.90 12.84 -7.6 4.7 Wildermuth Endowment:I 13.76 NA NA 5.2
distributions.
Source: Lipper BlackRock Enh Intl Div BGY 6.08 5.41 -11.0 1.7 Gabelli Healthcare GRX 11.81 10.34 -12.5 -1.1 Nuveen Credit Strat Inc JQC 8.32 7.44 -10.6 13.0 InvescoValMunInc IIM 16.50 15.29 -7.3 4.5 Income & Preferred Stock Funds
BlackRock Hlth Sciences BME 36.74 38.31 +4.3 -3.9 Gab Utility GUT 5.11 7.43 +45.4 44.1 NuvFloatRateIncFd JFR 10.92 9.70 -11.2 7.6 MAINSTAY:MKDEFTRMUNOP MMD NA 20.98 NA 4.8 Destra Multi-Altrntv;A 13.46 NA NA 1.0
Friday, September 27, 2019
BlackRock Res & Comm BCX 8.60 7.52 -12.6 -10.3 GAMCOGlGold&NatRes GGN 4.23 4.39 +3.8 7.7 NuvFloatRteIncOppty JRO 10.83 9.54 -11.9 7.7 Nuveen AMT-Fr Mu Val NUW 16.95 16.56 -2.3 3.8 Destra Multi-Altrntv;C 12.99 NA NA 0.3
52 wk Destra Multi-Altrntv;I 13.69 NA NA 1.3
Prem Ttl BlackRock Sci&Tech Trust BST 31.11 31.84 +2.3 -4.5 J Han Finl Opptys BTO 33.07 32.31 -2.3 -6.5 Nuveen Senior Income NSL 6.52 5.75 -11.8 7.7 Nuveen AMT-Fr Qlty Mun I NEA 15.63 14.27 -8.7 4.4
Fund (SYM) NAV Close /Disc Ret BlackRock Utl Inf & Pwr BUI 21.15 24.10 +13.9 24.4 Neuberger Brmn MLP & EI NML 8.12 7.15 -11.9 -10.2 PionrFltRate Tr PHD 11.97 10.51 -12.2 7.0 Nuveen AMT-Fr Mu CI NVG 17.21 16.74 -2.7 4.6 Destra Multi-Altrntv;L 13.14 NA NA 0.5
CBRE ClrnGlbRlEst IGR 8.86 7.86 -11.3 17.0 NubrgrRlEstSec NRO 5.80 5.62 -3.1 25.5 High Yield Bond Funds Nuv Enh Muni Cr Inc NZF 16.74 16.24 -3.0 4.8 Flat Rock Opportunity 19.81 NA NA 7.0
General Equity Funds Variant Altrntv Inc:Inst 26.21 NA NA 11.7
CLEARBRIDGEENGYMDSOPP EMO NA 8.66 NA -15.4 NuvDow30DynOverwrite DIAX 17.76 17.86 +0.6 -3.4 AllianceBernGlHiIncm AWF 13.16 11.98 -9.0 7.0 Nuveen Enh Muni Val NEV 15.27 14.38 -5.8 4.5
Adams Diversified Equity ADX 17.83 15.80 -11.4 8.8 Variant Altrntv Inc:Inv 26.23 NA NA NS
CLEARBRIDGEMLP&MDSTMTR CTR NA 8.89 NA -13.3 NuvCorEqAlpha JCE 14.45 14.28 -1.2 -1.3 Barings Glb SD HY Bd BGH 18.07 17.41 -3.7 10.2 Nuveen Int Dur Mun Term NID 14.30 13.63 -4.7 3.7
Boulder Growth & Income BIF 13.31 11.12 -16.5 2.3 NuveenDiversDiv&Inc JDD 11.51 10.87 -5.6 8.6 BR Corporate HY HYT 11.81 10.70 -9.4 8.2 Convertible Sec's. Funds
ClearBridge MLP & Midstm CEM NA 11.29 NA -13.7 NuvMuniHiIncOpp NMZ 14.08 14.21 +0.9 4.8
Central Secs CET 37.30 31.34 -16.0 11.7 Nuveen Engy MLP Tot Rtn JMF 8.91 8.56 -3.9 -14.3 BlackRock Ltd Dur Inc BLW 17.03 15.64 -8.2 6.1 Calmos Dyn Conv and Inc CCD 19.59 19.99 +2.0 1.2
ChnStrInfr UTF 27.25 27.29 +0.1 34.2 Nuveen Muni Val NUV 10.60 10.48 -1.1 3.5
CohenStrsCEOppFd FOF 13.22 12.87 -2.6 8.2 NuveenNasdaq100DynOv QQQX 22.27 22.07 -0.9 -1.3 BNY Mellon Hi Yield Str DHF 3.34 3.07 -8.1 9.0 World Equity Funds
COHEN&STEERSMLPINC&E MIE 8.61 9.01 +4.6 -4.6 Nuveen Quality Muni Inc NAD 15.95 14.35 -10.0 4.4
EVTxAdvDivIncm EVT NA 24.50 NA 8.0 Cohen&SteersQualInc RQI 15.14 15.92 +5.2 40.1 Nuv Real Est JRS 11.48 10.91 -5.0 20.1 Brookfield Real Asst Inc RA 23.55 22.61 -4.0 NA Nuveen Sel TF 2 NXQ 15.37 14.64 -4.7 3.4
ACAP Strategic:A 17.78 NA NA 9.2
GabelliDiv&IncTr GDV 23.02 21.43 -6.9 -4.5 Nuveen Rl Asst Inc & Gro JRI 19.39 17.35 -10.5 16.7 CrSuisHighYld DHY 2.56 2.57 +0.4 9.1 ACAP Strategic:W 13.33 NA NA 10.0
CohenStrsREITPref RNP 24.76 24.22 -2.2 33.4 PIMCO MuniInc PMF NA 14.90 NA 4.8
Gabelli Equity Tr GAB 5.58 5.94 +6.5 2.2 NuvS&P500DynOvFd SPXX NA 15.55 NA -1.4 DoubleLine Inc Sol DSL 19.23 19.78 +2.9 9.1 BMO LGM Front ME;I 8.36 NA NA -14.6
Cohen&Steers TotRet RFI 14.41 14.80 +2.7 31.0 PIMCOMuniIncII PML NA 15.65 NA 4.8
GeneralAmer GAM 42.27 36.14 -14.5 4.6 NuvSP500BuyIncFd BXMX 13.20 13.04 -1.2 -2.4 First Tr Hi Inc Lng/Shrt FSD 17.01 15.17 -10.8 8.5 CalamosGlbTotRet CGO 11.44 12.09 +5.7 -1.8
Columbia Sel Prm Tech Gr STK 20.64 21.04 +1.9 11.9 Pimco Muni III PMX NA 12.77 NA 5.0
JHancockTaxAdvDiv HTD 27.04 27.96 +3.4 30.9 DNP Select Income DNP 10.78 12.93 +20.0 25.7 ReavesUtilityIncome UTG 36.92 37.11 +0.5 28.8 IVY HIGH INCOME OPP IVH 15.06 13.68 -9.2 8.8 PioneerHilncAdv MAV 12.00 10.93 -8.9 4.9 Prem12 Mo
Librty AllStr Eq USA 6.49 6.34 -2.3 3.5 Duff&Ph Glbl Util Inc Fd DPG 16.88 15.88 -5.9 20.3 Tortoise Enrgy Infra Crp TYG 20.82 20.18 -3.1 -15.8 NeubHgYldStrt NHS 12.79 12.06 -5.7 7.5 PioneerMunHiIcmT MHI 13.05 12.40 -5.0 4.9 Fund (SYM) NAV Close /Disc Yld
Royce Micro-Cap Tr RMT 8.95 8.01 -10.5 -15.9 EtnVncEqtyInc EOI NA 15.18 NA 2.1 Tortoise Midstream Enrgy NTG 12.67 12.16 -4.0 -14.3 NexPointStratOppty NHF 21.08 18.00 -14.6 13.4 Putnam Mgd Inc PMM 8.17 7.79 -4.7 4.6 Loan Participation Funds
Royce Value Trust RVT 15.34 13.73 -10.5 -9.7 EtnVncEqtyIncoII EOS NA 16.81 NA 2.2 Income & Preferred Stock Funds Nuveen Crdt Opps 2022 TT JCO 9.64 9.87 +2.4 5.8 Putnam Muni Opp PMO 13.67 13.10 -4.2 4.5 1WS Credit Income NA NA NA NS
Source Capital SOR NA 36.30 NA -7.1 EVRskMnDvsEqInc ETJ NA 9.21 NA 2.4 CalamosStratTot CSQ 12.69 12.69 0.0 2.4 Nuveen Global High Inc JGH 17.61 15.54 -11.8 8.3 Western Asset Mgd Muni MMU NA 13.75 NA 4.9 Angel Oak Str Crdt:Inst NA NA NA 8.1
Tri-Continental TY 29.90 27.15 -9.2 4.8 ETnVncTxMgdBuyWrtInc ETB NA 15.60 NA 2.4 CohenStrsLtdDurPref&Inc LDP 25.73 25.58 -0.6 16.2 Nuveen HI Dec 2019 Tgt JHD 9.92 9.85 -0.7 4.0 Westn Asst Mu Def Opp Tr MTT NA 21.56 NA 4.1 Blackstone/GSO FR EI D 24.24 NA NA NS
CohenStrsSelPref&Income PSF 26.70 29.32 +9.8 19.4 Nuveen HI Nov 2021 Tgt JHB 9.94 9.90 -0.4 5.3 Single State Muni Bond Blackstone/GSO FR EI I 24.24 NA NA 6.9
FirstTrIntDurPref&Inc FPF 24.04 23.44 -2.5 17.6 PGIM Global High Yield GHY 16.32 14.35 -12.1 7.7 BlackRock CA Mun BFZ 15.42 13.67 -11.3 3.8 Blackstone/GSO FR EI T 24.20 NA NA 6.3
JHanPrefInc HPI 21.67 23.99 +10.7 18.4 PGIM High Yield Bond ISD 16.68 14.96 -10.3 7.6 BR MH CA Qly Fd Inc MUC 15.71 14.08 -10.4 3.9 Blackstone/GSO FR EI T-I 24.72 NA NA NS
A Week in the Life of the DJIA JHPrefIncII HPF 21.32 23.24 +9.0 19.2 PioneerHilncmTr PHT 9.98 9.24 -7.4 NA BR MH NJ Qly MUJ 15.98 14.21 -11.1 4.3 Blstn Commnty Dev 9.84 NA NA 3.5
HnckJPfdInco III HPS 18.95 20.02 +5.6 16.4 Wells Fargo Income Oppty EAD NA 8.23 NA 8.7 BR MH NY Qly MHN 15.09 13.60 -9.9 3.8 BNYM Alcntr Glb MS Cr Fd 100.63 NA NA NS
A look at how the Dow Jones Industrial Average component stocks J Han Prm PDT 15.87 18.12 +14.2 21.1 WstAstHIF II HIX NA 6.75 NA 8.3 BR MuniYld CA MYC 15.76 14.44 -8.4 4.0 CLIFFWATER CL FD;I 10.11 NA NA NS
did in the past week and how much each moved the index. The DJIA LMP CapInco SCD NA 13.86 NA 11.9 Western Asset Hi Inc Opp HIO 5.49 5.05 -8.0 6.6 BR MuniYld CA Qly MCA 15.91 14.36 -9.7 4.2 CNR Strategic Credit 9.87 NA NA NS
Nuveen Pref & Inc Opp JPC 10.18 10.10 -0.8 17.8 Western Asset Hi Yld D O HYI NA 15.12 NA 7.1 BR MuniYld MI Qly MIY 15.81 14.05 -11.1 4.3 FedProj&TrFinanceTendr 9.98 NA NA 4.4
lost 114.82 points, or 0.43%, on the week. A $1 change in the price of Nuveen Fd JPS 9.89 9.85 -0.4 20.6 Other Domestic Taxable Bond Funds FS Global Crdt Opptys D NA NA NA 6.7
BR MuniYld NY Qly MYN 14.46 13.00 -10.1 3.8
any DJIA stock = 6.78-point change in the average. To date, a $1,000 Nuveen Pref & Inc Term JPI 24.89 24.79 -0.4 17.3 Ares Dynamic Crdt Alloc ARDC NA 14.89 NA 8.6 EVCAMuniBd EVM 12.57 11.33 -9.9 4.1 Invesco Sr Loan A 6.48 NA NA 4.7
investment on Dec. 31 in each current DJIA stock component would Nuveen TxAdvDivGr JTD 16.95 16.64 -1.8 1.5 Barings Corporate Inv MCI NA 16.79 NA 7.4 InvCaValMuIncTr VCV 13.41 12.78 -4.7 4.4 Invesco Sr Loan C 6.50 NA NA 4.0
have returned $34,930, or a gain of 16.43%, on the $30,000 TCW Strat Income TSI NA 5.68 NA 7.5 BlackRock Mlt-Sctr Inc BIT 18.36 17.08 -7.0 8.2 InvPAValMuIncTr VPV 14.09 13.04 -7.5 4.9 Invesco Sr Loan IB 6.49 NA NA 5.0
Virtus Glb Div & Inc ZTR 10.42 10.93 +4.9 11.6 BlackRock Tax Muni Bd BBN 25.03 24.76 -1.1 5.5 InvTrInvGrNYMu VTN 14.55 13.55 -6.9 4.6 Invesco Sr Loan IC 6.48 NA NA 4.8
investment, including reinvested dividends. Convertible Sec's. Funds DoubleLine:Oppor Crdt Fd DBL 20.79 20.75 -0.2 7.0 Invesco Sr Loan Y 6.48 NA NA 5.0
Nuveen CA AMT-F Qual MI NKX 16.44 15.13 -8.0 4.0
GI Conv & Inc NCV 5.62 5.62 0.0 -8.3 Duff&Ph Util Cor DUC 9.56 9.14 -4.4 4.7 Nuveen CA Val NCA 10.71 10.58 -1.2 3.2 Sierra Total Return:T 24.05 NA NA 5.3
The Week’s Action Thrivent Church Ln&Inc:S NA NA NA NS
Pct Stock price Point chg $1,000 Invested(year-end '18) AGI Conv & Inc II NCZ 5.04 5.04 0.0 -7.1 EVLmtDurIncm EVV NA 12.49 NA 6.5 NuveenCAQtyMuInc NAC 16.08 14.89 -7.4 4.3
AGI Eqty & Conv Inc NIE 22.89 21.60 -5.6 1.4 Franklin Ltd Dur Income FTF 10.11 9.31 -7.9 12.2 Nuveen MD Qual Muni Inc NMY 15.16 13.31 -12.2 3.9 High Yield Bond Funds
chg (%) change in average* Company Symbol Close $1,000
CalamosConvHi CHY 11.04 11.01 -0.3 -8.8 KKR Income Opportunities KIO NA 15.63 NA 9.8 Griffin Inst Access Cd:A NA NA NA 7.0
6.50 5.63 38.18 NKE $92.31 Nuveen MI Qual Muni Inc NUM 15.85 13.97 -11.9 3.7
Nike $1,255 CalmosConvOp CHI 10.51 10.43 -0.8 -4.5 MFS Charter MCR 9.04 8.32 -8.0 8.3 Griffin Inst Access Cd:C NA NA NA 7.0
NuvNJ Qual Muni Inc NXJ 16.49 14.49 -12.1 4.4
2.31 5.19 35.20 Home Depot HD 229.86 1,365 World Equity Funds Nuveen Taxable Muni Inc NBB 22.45 22.35 -0.4 5.1 Griffin Inst Access Cd:F NA NA NA 6.9
Nuveen NY AMT/Fr Qual MI NRK 14.92 13.47 -9.7 3.9
Aberdeen Tot Dyn Div AOD 9.39 8.24 -12.2 2.1 PIMCO Corp & Inc Oppty PTY NA 18.11 NA 9.1 Griffin Inst Access Cd:I NA NA NA 7.0
1.91 2.33 15.80 Procter & Gamble PG 124.57 1,384 Nuveen NY Qual Muni Inc NAN 15.51 14.17 -8.6 4.0
Griffin Inst Access Cd:L NA NA NA 7.0
Calamos GloDynInc CHW 7.82 7.80 -0.3 -4.0 PIMCO Corp & Inc Strat PCN NA 18.25 NA 8.1 Nuveen OH Qual Muni Inc NUO 17.22 15.72 -8.7 3.3
1.80 3.77 25.57 McDonald’s MCD 213.16 1,222 Cdn Genl Inv CGI 34.48 24.18 -29.9 -2.3 PIMCO Flexible Cr I;A 9.81 NA NA NS
PIMCOHilnco PHK NA 7.73 NA 11.1 Nuveen PA Qual Muni Inc NQP 15.79 13.96 -11.6 4.1
1.53 1.79 12.14 American Express AXP 118.59 1,258 China CHN 21.57 19.34 -10.3 1.9 PIMCO IncmStrFd PFL NA 11.40 NA 9.5 PIMCO Flexible Cr I;Inst 9.81 NA NA 10.3
Nuveen VA Qlty Mun Inc NPV 15.02 13.79 -8.2 3.7
EV TxAdvGlbDivInc ETG NA 16.37 NA -0.9 PIMCO IncmStrFd II PFN NA 10.32 NA 9.97 PionrILSBridge NA NA NA NS
1.26 1.47 9.97 WalMart WMT 118.45 1,292 PIMCO CA PCQ NA 19.75 NA 4.7 WA Middle Mkt Dbt NA NA NA 9.2
EtnVncTxAdvOpp ETO NA 25.01 NA 8.9 Putnam Mas Int PIM 4.85 4.57 -5.8 7.2 PIMCOCAMuniII PCK NA 9.94 NA 4.2
1.18 1.72 11.67 Travelers TRV 148.00 1,257 FirstTr Dyn Euro Eq Inc FDEU 15.04 13.50 -10.2 -5.1 Putnam Prem Inc PPT 5.41 5.23 -3.3 7.4 WA Middle Mkt Inc NA NA NA 9.2
52 wk Other Domestic Taxable Bond Funds
0.96 1.36 9.22 IBM IBM 143.24 1,305 Gabelli Multimedia GGT 7.48 8.07 +7.9 -2.4 Wells Fargo Multi-Sector ERC NA 12.27 NA 10.0 Prem Ttl
GDL Fund GDL 11.09 9.20 -17.0 5.7 Am Beacon Apollo TR:Y 10.40 NA NA NS
World Income Funds Fund (SYM) NAV Close /Disc Ret
0.91 3.47 23.53 Boeing BA 382.86 1,207 India Fund IFN 22.77 20.51 -9.9 3.8 Abrdn AP IncFd FAX 4.85 4.19 -13.6 4.0
Am Beacon SP Enh Inc:Y 10.18 NA NA 5.3
0.74 0.40 2.71 54.31 Japan Smaller Cap JOF 10.16 8.78 -13.6 -4.7 Specialized Equity Funds BR Credit Strat;Inst 10.20 NA NA NS
Coca-Cola KO 1,175 BrndywnGLB Glb Inc Oppts BWG NA 12.01 NA 6.5
Bluerock Total Inc+ RE:A 29.98 NA NA 5.6 BlackRock Mlt-Sctr Oppty 97.34 NA NA 7.6
Korea KF 30.82 27.04 -12.3 -12.1 EtnVncStDivInc EVG NA 13.13 NA 6.2
0.60 0.82 5.56 United Technologies UTX 136.39 1,303 Mexico MXF NA 12.99 NA -16.8 Bluerock Total Inc+ RE:C 28.79 NA NA 4.9 BlackRock Mlt-Sec Opp II 100.55 NA NA NS
MS EmMktDomDebt EDD 7.41 6.51 -12.1 9.1

.
MS ChinaShrFd CAF 23.22 20.37 -12.3 4.1 Bluerock Total Inc+ RE:I 30.46 NA NA 5.9 Capstone Church Capital 11.99 NA NA 1.9
0.50 1.09 7.39 Apple AAPL 218.82 1,404 PIMCO Dyn Crd & Mrt Inc PCI NA 24.45 NA 9.7 Bluerock Total Inc+ RE:L 29.80 NA NA 5.3 CION Ares Dvsfd Crdt;A 25.73 NA NA 5.4

ly
MS India IIF 22.31 18.98 -14.9 -3.2 PIMCO Dynamic Income PDI NA 32.42 NA 9.97
0.12 0.06 0.41 Intel INTC 50.78 1,103 Broadstone Rl Est Acc:I 11.03 NA NA NS CION Ares Dvsfd Crdt;C 25.70 NA NA 5.4
New Germany GF 15.71 13.85 -11.8 -2.5 PIMCO Income Opportunity PKO NA 26.52 NA 10.0
0.02 0.01 0.07 Verizon VZ 60.30 1,107 Broadstone Rl Est Acc:W 11.02 NA NA NS CION Ares Dvsfd Crdt;I 25.73 NA NA 5.4
Swiss Helvetia SWZ 9.26 8.04 -13.2 -5.5 PIMCO Stratg Inc RCS NA 9.30 NA 8.7 CC Real Estate Income;A 8.24 NA NA -7.4 CION Ares Dvsfd Crdt;L 25.72 NA NA 5.4
–0.03 –0.06 –0.41 Visa V 174.00 1,325 Templeton Dragon TDF 20.12 17.88 -11.1 -0.2 Templeton Em Inc TEI 9.90 8.98 -9.3 8.9 CC Real Estate Income;Ad 8.25 NA NA -7.8 CION Ares Dvsfd Crdt;W 25.72 NA NA NS
Templeton Em Mkt EMF 16.55 14.53 -12.2 5.0 Templtn Glbl Inc GIM 6.75 6.17 -8.6 6.9
–0.83 –0.60 –4.07 XOM 71.48 CC Real Estate Income;C 8.30 NA NA -7.3 CNR Select Strategies 10.63 NA NA 0.0
–0.99
–1.07
–1.18
–0.59
–8.00
–4.00
Exxon Mobil
JPMorgan Chase
Walgreens
JPM 117.72
WBA 54.41
on1,085
1,234
815
VirtusTotalRetFd ZF 11.22 11.13 -0.8 22.3
Wells Fargo Gl Div Oppty EOD NA 5.41 NA 14.4
Prem12 Mo
WstAstEmergDebt EMD NA 13.85 NA 8.8
Western Asset Gl Cr D Op GDO NA 17.54 NA 7.1
National Muni Bond Funds
CC Real Estate Income;I 8.24 NA NA -7.4
CC Real Estate Income;T 8.07 NA NA -8.2
NexPointHCOpp;A 15.61 NA NA -13.9
GL Beyond Income 1.47 NA NA NE
Lord Abbett Cred Opps Fd NA NA NA NS
Lord Abbett Cred Opps Fd NA NA NA NS
Fund (SYM) NAV Close /Disc Yld AllBerNatlMunInc AFB 15.28 13.67 -10.5 3.9 NexPointHCOpp;C 15.46 NA NA -14.5 OFI Carlyle Pvt Cred:A NA NA NA 0.0
–1.23 –1.71 –11.60 Microsoft MSFT 137.73 1,372 BlckRk Inv Q Mun BKN 16.40 15.61 -4.8 4.3
U.S. Mortgage Bond Funds NexPointRlEstStrat;A 21.23 NA NA 5.6 OFI Carlyle Pvt Cred:I NA NA NA NS
us l,

–1.23 –1.57 –10.65 Caterpillar CAT 126.59 1,016 BlckRk Income BKT 6.43 6.05 -5.9 6.8 BlackRock Muni 2030 Tgt BTT 25.85 23.62 -8.6 3.1 NexPointRlEstStrat;C 21.36 NA NA 4.9 OFI Carlyle Pvt Cred:L NA NA NA NS
Invesco HI 2023 Tgt Term IHIT 10.55 10.39 -1.5 5.7 BlackRock Muni BFK 14.53 14.02 -3.5 4.8 NexPointRlEstStrat;Z 21.34 NA NA 5.9 OFI Carlyle Pvt Cred:N NA NA NA NS
–1.28 –0.47 –3.19 Pfizer PFE 36.22 852 Nuveen Mtge Oppty Term JLS 23.09 23.02 -0.3 7.4 BlackRock Muni II BLE 14.99 14.80 -1.3 4.5 PREDEX;I 26.07 NA NA 3.9 OFI Carlyle Pvt Cred:Y NA NA NA NS
–1.34 –2.23 –15.12 MMM 164.53 885 BlckRk Muni Inc Qly BYM 15.49 14.10 -9.0 4.3
al a

3M Investment Grade Bond Funds PREDEX;T 26.11 NA NA 3.8 Palmer Square Opp Inc 18.26 NA NA 5.4
e
BlRck Core Bond BHK 15.56 14.41 -7.4 5.2 BR MuniAssets Fd MUA 14.41 15.20 +5.5 4.2 PREDEX;W 26.11 NA NA 3.8 Resource Credit Inc:A 10.80 NA NA 6.3
–1.53 –0.76 –5.15 Cisco Systems CSCO 48.84 1,151
BR Credit Alloc Inc BTZ 14.91 13.61 -8.7 5.8 BR MuniEnhanced MEN 12.16 11.37 -6.5 4.7 Principal Dvs Sel RA A 25.32 NA NA NS Resource Credit Inc:C 10.92 NA NA 5.6
–1.75 –2.31 –15.67 Walt Disney DIS 129.96 1,193 J Han Income JHS 15.46 14.47 -6.4 4.6 BR MuniHoldings Qly MFL 14.74 13.41 -9.0 4.7 Principal Dvs Sel RA Ins 25.34 NA NA NS Resource Credit Inc:I 10.82 NA NA 6.6
ci on

–2.23 –4.77 –32.35 Goldman Sachs GS 208.97 1,269 MFS Intmdt MIN 4.05 3.84 -5.2 9.0 BR MH Qly 2 MUE 14.01 12.70 -9.4 4.6 Principal Dvs Sel RA Y 25.35 NA NA NS Resource Credit Inc:L 10.79 NA NA 6.1
Western Asset Inf-Lk Inc WIA NA 11.57 NA 3.5 BR MuniVest Fd MVF 9.71 9.19 -5.4 4.8 Resource RE Div Inc:A 10.63 NA NA 7.9 Resource Credit Inc:W 10.79 NA NA 6.3
–2.32 –3.05 –20.69 Johnson & Johnson JNJ 128.60 1,017 Western Asset Inf-Lk O&I WIW NA 11.12 NA 3.8 BR MuniVest 2 MVT 15.31 14.75 -3.7 4.8 Resource RE Div Inc:C 10.63 NA NA 7.1 World Income Funds
–2.36 –1.14 –7.73 Dow DOW 47.07 973 Loan Participation Funds BR MuniYield Fd MYD 14.96 14.90 -0.4 4.7 Resource RE Div Inc:D 10.80 NA NA 7.3 Destra Int&Evt-Dvn Crd:A 25.22 NA NA NS
Apollo Senior Floating AFT NA 14.79 NA 9.0 BR MuniYield Qlty MQY 16.21 15.06 -7.1 4.4 Resource RE Div Inc:I 11.08 NA NA 8.2 Destra Int&Evt-Dvn Crd:I 25.21 NA NA 4.8
–2.64 –2.25 –15.26 Merck MRK 82.91 1,107 BR MuniYld Qlty2 MQT 14.24 12.93 -9.2 4.3
BR Debt Strategy DSU 12.20 10.76 -11.8 7.6 Resource RE Div Inc:L 10.64 NA NA 7.7 Destra Int&Evt-Dvn Crd:L 25.21 NA NA NS
–4.60 –5.72 –38.79 Chevron CVX 118.60 1,123 BR F/R Inc Str FRA 14.52 12.62 -13.1 6.9 BR MuniYld Qly 3 MYI 14.98 13.55 -9.5 4.3 Resource RE Div Inc:T 10.62 NA NA 7.2 Destra Int&Evt-Dvn Crd:T 25.21 NA NA NS
er rs

–7.57 –17.63 –119.57
UnitedHealth Group UNH 215.26
*Based on Composite price. DJIA is calculated on primary-market price.
Source: Dow Jones Market Data; FactSet.
m e
m rp
875 BlackRock Floatng Rt Inc BGT 14.08 12.29 -12.7 6.5 BNY Mellon Muni Bd Infra DMB 14.47 14.22 -1.7 4.4 Resource RE Div Inc:U 10.64 NA NA 7.9 National Muni Bond Funds
Blackstone / GSO Strat BGB NA 14.68 NA 10.8 BNY Mellon Str Muni Bond DSM 8.33 8.45 +1.4 4.8 Resource RE Div Inc:W 10.80 NA NA 8.0 PIMCO Flex Mun Inc;A-3 NA NA NA NS
Blackstone/GSO Sr Flt Rt BSL 16.54 16.82 +1.7 9.1 BNY Mellon Strat Muni LEO 8.68 8.57 -1.3 4.8 SharesPost 100;A 29.20 NA NA 0.6 PIMCO Flex Mun Inc;Inst NA NA NA NS
Eagle Point Credit ECC NA 15.70 NA 15.3 DWS Muni Inc KTF 12.66 11.58 -8.5 4.5 SharesPost 100:I 29.33 NA NA 0.9 Tortoise Tax-Adv Soc Inf 9.99 NA NA 4.3

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THE WALL STREET JOURNAL. Monday, September 30, 2019 | B7

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
26820.25 t 114.82, or 0.43% last week Trailing P/E ratio 19.25 23.90 2961.79 t 30.28, or 1.01% last week Trailing P/E ratio * 23.05 24.40 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 17.52 17.11 High, low, open and close for each of P/E estimate * 18.11 18.09
the past 52 weeks Dividend yield 2.29 2.09 the past 52 weeks Dividend yield * 1.91 1.80 IPOs in the U.S. Market
All-time high 27359.16, 07/15/19 All-time high 3025.86, 07/26/19
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Current divisor 0.14744568353097 Rule 144a market; deal amounts are for the U.S. market only
27000 3000
Symbol/ Pricing
65-day moving average 200-day moving average Expected primary Shares Range($)
26000 2900 pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)

10/2 9/6 ADC Therapeutics ADCT. 8.2 23.00/ MS, BofA ML,
25000 2800 Biopharmaceutical N 26.00 Cowen & Co
company developing
therapies for cancer.
200-day moving average 24000 2700 10/2 9/6 Aprea Therapeutics APRE 5.0 14.00/ JPM, MS,
Biopharmaceutical Nq 16.00 RBC Cptl Mkts
Week's high company developing novel
23000 2600 anticancer compounds.
DOWN UP
10/2 9/6 Frequency Therapeutics FREQ 6.7 14.00/ JPM, GS,
t

Monday's open Friday's close

65-day moving average Clinical-stage Nq 16.00 Cowen & Co
22000 2500 biotechnology company.
Friday's close Monday's open
t

10/2 8/15 Monopar Therapeutics MNPR 4.4 8.00/ JonesTrading Inst Srvcs
Week's low 21000 2400 Biopharmaceutical Nq 10.00
company developing drug
Bars measure the point change from Monday's open combinations to improve
clinical outcomes in cancer
20000 2300 patients.
SO N D J F M A M J J A S SO N D J F M A M J J A S 10/2 8/29 Viela Bio VIE 7.5 19.00/ GS, MS,
Primary Biopharmaceutical Nq 21.00 Cowen & Co
NYSE weekly volume, in billions of shares market Composite company developing
t
t

Financial Flashback treatments for

inflammation and
24 autoimmune diseases.
16 The Wall Street Journal, September 30, 2008
8 Citigroup Inc. acquired most of Wachovia Corp. for
0 nearly $2 billion in a government-engineered Lockup Expirations
SO N D J F M A M J J A S takeover. Below, companies whose officers and other insiders will become eligible
to sell shares in their newly public companies for the first time. Such
sales can move the stock’s price.
Major U.S. Stock-Market Indexes Nasdaq Composite
Lockup Offer Offer amt Through Lockup
Latest Week 52-Week % chg t 178.05, or -2.19% expiration Issue date Issuer Symbol price($) ($ mil.) Friday (%) provision
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann.
Dow Jones
last week
Sept. 30 April 3, ’19 NGM Biopharmaceuticals NGM 16.00 120.3 –12.8 180 days
Industrial Average 27079.68 26704.96 26820.25 -114.82 -0.43 21792.20 l 27359.16 1.4 15.0 13.7 April 3, ’19 Replay Acquisition RPLA.U 10.00 287.5 2.6 180 days
Transportation Avg 10531.88 10295.93 10341.27 -113.09 -1.08 8637.15 l 11409.96 -9.1 12.8 9.0
8150 April 3, ’19 Ruhnn Holding RUHN 12.50 125.0 –43.4 180 days
Utility Average 881.56 861.55 876.46 13.56 1.57 692.00 l 879.11 21.6 22.9 8.6
-1.23 l 31091.22 April 3, ’19 Silk Road Medical SILK 20.00 138.0 58.3 180 days
Total Stock Market 30818.75 30132.31 30293.19 -376.58 24126.04 0.3 17.8 10.6
Barron's 400 684.60 671.58 674.65 -9.56 -1.40 571.68 l 767.31 -12.1 10.7 7.1 8050 April 3, ’19 Tradeweb Markets TW 27.00 1242.0 35.3 180 days

Nasdaq Stock Market Oct. 2 April 5, ’19 Guardion Health Sciences GHSI 4.00 5.0 –80.1 180 days
7950
Nasdaq Composite 8158.84 7890.28 7939.63 -178.05 -2.19 6192.92 l 8330.21 -1.3 19.7 14.4 Sources: Dealogic; WSJ Market Data Group

.
Nasdaq 100 7873.25 7626.82 7681.58 -141.97 -1.81 5899.35 l 8016.95 0.7 21.4 16.4
7850
IPO Scorecard

ly
S&P 20 23 24 25 26 27 Performance of IPOs, most-recent listed first
500 Index 3007.98 2945.53 2961.79 -30.28 -1.01 2351.10 l 3025.86 1.6 18.1 11.1 September % Chg From % Chg From
1956.83 1915.50 -21.90 -1.13 1567.40 l 2019.55 -4.8 15.6 DJ US TSM Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
MidCap 400 1922.74 on 7.6 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
SmallCap 600 966.50 942.26 946.31 -15.80 -1.64 793.86 l 1061.92 -10.9 12.0 8.0 t 376.58, or -1.23% Oportun Financial 16.26 8.4 0.6 Envista Hldgs 26.59 20.9 –4.9
OPRT Sept. 26/$15.00 NVST Sept. 18/$22.00
Other Indexes last week
Peloton Interactive 25.24 –13.0 –2.0 IGM Biosciences 17.91 11.9 –26.3
Russell 2000 1563.64 1515.64 1520.48 -39.29 -2.52 1266.93 l 1696.57 -10.4 12.7 6.9 PTON Sept. 26/$29.00 IGMS Sept. 18/$16.00
NYSE Composite 13128.06 12913.42 12971.98 -121.82 -0.93 10769.83 l 13239.87 -0.8 14.0 6.7
us l,

Datadog 32.27 19.5 –14.1 Apex Technology Acquisition 10.19 1.9 0.4
Value Line 529.09 516.75 518.73 -8.18 -1.55 446.06 l 582.86 -11.0 9.8 2.6 30900 DDOG Sept. 19/$27.00 APXTU Sept. 17/$10.00
NYSE Arca Biotech 4513.84 4174.54 4202.90 -272.78 -6.09 3890.37 l 5381.09 -21.9 -0.4 6.7 Exagen 14.50 3.6 –22.0 Cloudflare 18.24 21.6 1.3
al a

XGN Sept. 19/$14.00 NET Sept. 13/$15.00

e
NYSE Arca Pharma 592.73 582.20 584.90 -6.77 -1.14 535.91 l 612.45 -1.5 2.8 4.0 30600
Ping Identity 16.52 10.1 –17.9 Experience Investment 10.00 ... –0.1
KBW Bank 101.36 98.78 100.27 -0.81 -0.80 80.78 l 107.33 -4.4 16.9 12.5 PING Sept. 19/$15.00 EXPCU Sept. 13/$10.00
ci on

PHLX§ Gold/Silver 97.90 90.54 91.07 -3.53 -3.73 61.84 l 101.76 39.7 28.9 -0.7
30300 Sources: Dow Jones Market Data; FactSet
PHLX§ Oil Service 72.90 65.41 65.78 -6.30 -8.74 59.66 l 154.64 -56.0 -18.4 -23.8
PHLX§ Semiconductor 1590.22 1531.71 1542.87 -20.13 -1.29 1069.39 l 1622.02 12.9 33.6 23.9
30000
Other Stock Offerings
CBOE Volatility 18.69 14.33 17.22 1.90 12.40 11.61 l 36.07 42.1 -32.3 9.5
20 23 24 25 26 27 Secondaries and follow-ons expected this week in the U.S. market

Nasdaq PHLX Sources: FactSet; Dow Jones Market Data September Symbol/
er rs

Primary Amount Friday’s

Expected Issuer/Business exchange ($mil.) price ($) Bookrunner(s)
International Stock Indexes Commodities and Oct. 2 MetroCity Bankshares
Finance
MCBS
Nq
33.0 n.a. Stifel, Hovde Group,
Raymond James & Assoc
Latest Week 52-Week Range YTD
Currencies
Last Week YTD
m e

Region/Country Index Close % chg Low Close High % chg

Close Net chg %Chg % chg Off the Shelf
World The Global Dow 3019.59 –1.47 2631.29 • 3123.81 10.4
DJ Commodity 609.41 -7.98 -1.29 6.38 “Shelf registrations” allow a company to prepare a stock or bond for
DJ Global Index 399.23 –1.16 335.69 • 408.65 13.8
m rp

TR/CC CRB Index 175.72 -1.62 -0.91 3.48 sale, without selling the whole issue at once. Corporations sell as
DJ Global ex U.S. 243.18 –1.18 217.71 • 252.84 9.2
Crude oil, $ per barrel 55.91 -2.18 -3.75 23.12 conditions become favorable. Here are the shelf sales, or takedowns,
Americas DJ Americas 699.65 –1.11 558.25 • 716.56 17.9
Natural gas, $/MMBtu 2.404 -0.151 -5.91 -18.23
over the last week:
Brazil Sao Paulo Bovespa 105077.63 0.25 78623.66 • 105817.06 19.6
Gold, $ per troy oz. 1499.10 -8.90 -0.59 17.27
Takedown date/ Deal value
Canada S&P/TSX Comp 16694.27 –1.22 13780.19 • 16899.69 16.6 Issuer/Industry Registration date ($ mil.) Bookrunner(s)
Mexico S&P/BMV IPC 42857.58 –1.61 38574.18 • 49841.47 2.92 U.S. Dollar Index 99.13 0.85 0.87 3.07 Ctrip.com International Sept. 26 $876.5 GS, JPM
co Fo

Chile Santiago IPSA 3655.95 0.50 3303.90 • 4030.52 –2.8 WSJ Dollar Index 91.80 0.43 0.48 2.38 Professional Services Sept. 26,319
EMEA Stoxx Europe 600 391.79 –0.30 329.58 • 392.95 16.0 Euro, per dollar 0.9140 0.0063 0.69 4.83 BioXcel Therapeutics Sept. 26 $19.0 BMO Cptl Mkts
Stoxx Europe 50 3241.86 0.12 2696.36 • 3241.86 17.5 Yen, per dollar 107.93 0.37 0.34 -1.52 Healthcare April 1,319
Eurozone Euro Stoxx 382.29 –0.58 321.36 • 384.50 16.4 U.K. pound, in dollars 1.23 -0.0185 -1.48 -3.68 Forestar Group Sept. 25 $105.7 Citi, JPM, Mizuho,
Euro Stoxx 50 3545.88 –0.71 2937.36 • 3571.39 18.1
52-Week Real Estate/Property Sept. 24,318 WFS, TD Sec
Austria ATX 3021.23 –1.53 2681.25 • 3398.58 10.0 Low Close(l) High % Chg Plymouth Industrial REIT Sept. 25 $54.0 Barclays, KeyBanc, JPM
Belgium Bel-20 3712.08 –0.71 3164.98 • 3860.17 14.4
DJ Commodity 572.87 642.46 -2.55 Real Estate/Property July 30,318
France CAC 40 5640.58 –0.88 4598.61 • 5690.78 19.2 l
Broadcom Sept. 24 $3,737.5 BofAML,Citi,JPM,MS,Barclays,BNPParibas
Germany DAX 12380.94 –0.70 10381.51 • 12629.90 17.3 TR/CC CRB Index 167.89 l 201.23 -9.96
Computers & Electronics June 14,318 BMOCptlMkts,HSBC,RBCCptlMkts,WFS
Greece Athex Composite 870.35 –0.66 593.05 • 899.93 41.9 Crude oil, $ per barrel 42.53 l 76.41 -23.67
$366.9
Israel Tel Aviv 1615.48 –0.37 1419.50 • 1658.53 10.4 Natural gas, $/MMBtu 2.070 l 4.837 -20.08
STAG Industrial
Real Estate/Property
Sept. 24
Feb. 13,319
Raymond James & Assoc,
Citi
Italy FTSE MIB 22017.40 –0.48 18065 • 22204 20.2 Gold, $ per troy oz. 1184.40 l 1550.30 25.82
Netherlands AEX 578.31 0.15 476.03 • 583.26 18.5 VEREIT Inc
Real Estate/Property
Sept. 23
April 15,319
$895.9 Citi, Barclays, MS
Portugal PSI 20 4934.28 –1.64 4587.45 • 5420.07 4.3 U.S. Dollar Index 95.02 l 99.13 4.20
n-

Russia RTS Index 1347.72 –2.15 1048.71 • 1411.53 26.4 WSJ Dollar Index 88.65 l 91.95 2.35
Univar Solutions Sept. 23 $245.8 GS, JPM
South Africa FTSE/JSE All-Share 55209.03 –2.12 50434.39 • 59544.80 4.7
Euro, per dollar 0.8617 l 0.9156 6.06
Chemicals Dec. 12,316
Spain IBEX 35 9184.06 0.06 8363.9 • 9581.9 7.5
Yen, per dollar 105.30 l 114.53 -5.07
Sweden OMX Stockholm 622.69 –1.14 515.36 • 630.41 18.6
Public and Private Borrowing
no

Switzerland Swiss Market 10037.81 –0.19 8195.64 • 10098.59 19.1 U.K. pound, in dollars 1.20 l 1.33 -5.68
U.K. FTSE 100 7426.21 1.11 6584.68 • 7686.61 10.4 Treasurys
Asia-Pacific Real-time U.S. stock

WSJ quotes are available on Monday, September 30 Thursday, October 3

Australia S&P/ASX 200 6716.10 –0.22 5467.6 • 6845.1 18.9
Auction of 13 and 26 week bills; Auction of 4 and 8 week bills;
China Shanghai Composite 2932.17 –2.47 2464.36 • 3270.80 17.6 WSJ.com. Track most-
.COM announced on September 26; settles on October 3announced on October 1; settles on October 8
Hong Kong Hang Seng 25954.81 –1.82 24585.53 • 30157.49 0.4 active stocks, new
India S&P BSE Sensex 38822.57 2.13 33349.31 • 40267.62 7.6 highs/lows, mutual
Public and Municipal Finance
Japan Nikkei Stock Avg 21878.90 –0.91 19155.74 • 24270.62 9.3 funds and ETFs.
Deals of $ 150 million or more expected this week
Malaysia FTSE Bursa Malaysia KLCI 1593.00 –0.28 1589.58 • 1798.64 –5.8 Plus, get deeper money-flows data and
Singapore Straits Times 3125.63 –1.08 2966.45 • 3407.02 1.9 email delivery of key stock-market
Final Total Rating Bookrunner/

South Korea Kospi 2049.93 –1.99 1909.71 • 2343.07 0.4 data.

Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)

Taiwan TAIEX 10829.68 –0.92 9382.51 • 11096.30 11.3

All are available free at Oct. 1 prelim. Seattle City- 356.6 N.R. N.R. N.R. Preliminary/
Source: FactSet; Dow Jones Market Data WSJMarkets.com Washington Stradling Yocca Carlson
Source:Thomson Reuters/Ipreo
Consumer Rates and Returns to Investor Benchmark Yields and Rates
U.S. consumer rates Selected rates Treasury yield curve Forex Race Currencies
A consumer rate against its Five-year ARM, Rate Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. U.S.-dollar foreign-exchange rates in late New York trading
benchmark over the past year notes and bonds major U.S. trading partners US$vs, US$vs,
Bankrate.com avg†: 4.39% Fri YTDchg Fri YTDchg
5-year adjustable- Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
AmericanAirlinesFederalCreditUnion 3.00%
rate mortgage 4.00% 8%
5.00% Ft Worth, TX 800-533-0035 Americas Europe
Yen
s

t (ARM)
Capitol Federal Svgs Bk 3.00% 3.00 Argentina peso .0174 57.3228 52.3 Czech Rep. koruna .04234 23.618 5.3
4.00 One year ago 4
Shawnee, KS 800-222-7312 t Brazil real .2404 4.1591 7.2 Denmark krone .1465 6.8245 4.8
5-year Treasury Canada dollar .7551 1.3244 –2.9 Euro area euro 1.0942 .9140 4.8
note yield 3.00 People's United Bank 3.00% 2.00 0 s Chile peso .001377 726.30 4.7 Hungary forint .003262 306.57 9.5
t Hartford, CT 800-772-1090 WSJ Dollar index
t Colombiapeso .000289 3462.85 6.6 Iceland krona .008123 123.11 6.0
2.00 1.00 –4
Citadel Federal Credit Union 3.13% s Ecuador US dollar 1 1 unch Norway krone .1102 9.0752 5.0
Friday
Exton, PA 800-666-0191 Euro Mexico peso .0508 19.6928 0.2 Poland zloty .2496 4.0059 7.1
1.00 0.00 –8 Uruguay peso .02711 36.8900 13.9 Russia ruble .01547 64.661 –6.6
O ND J FMA M J J A S Haven Savings Bank 3.13% 1 3 6 1 2 3 5 710 30 2018 2019 Asia-Pacific Sweden krona .1021 9.7941 10.6
2018 2019 Hoboken, NJ 201-659-3600 month(s) years Australian dollar .6766 1.4780 4.2 Switzerland franc 1.0092 .9909 0.9
maturity China yuan .1404 7.1228 3.6 Turkey lira .1763 5.6708 7.2
Sources: Ryan ALM; Tullett Prebon; Dow Jones Market Data Hong Kong dollar .1275 7.8404 0.1 Ukraine hryvnia .0415 24.0960 –13.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) India rupee .01418 70.509 1.3 UK pound 1.2290 .8137 3.8

Federal-funds rate target 1.75-2.00 1.75-2.00 1.75 l 2.25 1.50

Corporate Borrowing Rates and Yields Indonesia rupiah .0000706 14165
Japan yen .009266 107.93
–1.5
–1.5 Middle East/Africa
Prime rate* 5.00 5.00 5.00 l 5.50 1.50 Spread +/- Treasurys, Kazakhstan tenge .002577 388.01 0.9 Bahrain dinar 2.6529 .3769 ...
Yield (%) in basis pts, 52-wk Range Total Return Macau pataca .1238 8.0758 0.1
Libor, 3-month 2.10 2.13 2.10 l 2.82 1.24 Bond total return index Last Wk ago Last Low High 52-wk 3-yr Egypt pound .0613 16.3120 –8.9
Malaysia ringgit .2385 4.1930 1.5
Money market, annual yield 0.75 0.71 0.41 l 0.75 0.47 Israel shekel .2872 3.4822 –6.9
10-yr Treasury, Ryan ALM 1.678 1.754 15.684 1.96 New Zealand dollar .6295 1.5886 6.8
Five-year CD, annual yield 1.57 1.58 1.54 l 2.07 0.38 Kuwait dinar 3.2857 .3043 0.4
Pakistan rupee .00638 156.850 12.2
DJ Corporate n.a. 2.949 n.a. n.a. .0193 51.941 –1.1 Oman sul rial 2.5970 .3851 0.01
30-year mortgage, fixed† 3.89 3.92 3.60 l 4.99 0.42 Philippines peso
Aggregate, Barclays Capital 2.280 2.330 n.a. 39 55 10.27 2.84 Singapore dollar .7240 1.3813 1.4 Qatar rial .2744 3.644 0.2
15-year mortgage, fixed† 3.38 3.39 3.14 l 4.34 0.66 Saudi Arabia riyal .2666 3.7510 –0.02
High Yield 100, Merrill Lynch 5.389 5.160 358 283 509 5.951 5.640 South Korea won .0008313 1202.99 8.0
Jumbo mortgages, $484,350-plus† 4.30 4.36 4.16 l 5.12 0.01 Sri Lanka rupee .0054975 181.90 –0.5 South Africa rand .0660 15.1526 5.5
Five-year adj mortgage (ARM)† 4.39 4.65 3.94 l 4.89 1.17
Fixed-Rate MBS, Barclays 2.490 2.490 n.a. 27 57 7.76 2.26
Taiwan dollar .03221 31.047 1.5
New-car loan, 48-month 4.64 4.63 3.93 l 4.81 1.63
Muni Master, Merrill 1.699 1.747 7 5 21 8.021 2.837 Thailand baht .03266 30.620 –5.3 Close Net Chg % Chg YTD%Chg
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by at least 70% of the nation's largest EMBI Global, J.P. Morgan 5.345 5.278 355 333 441 10.763 3.937 Vietnam dong .00004309 23205 0.04 WSJ Dollar Index 91.80 –0.03–0.04 2.38
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Sources: Tullett Prebon, Dow Jones Market Data
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

INSIDER-TRADING SPOTLIGHT BORROWING BENCHMARKS

Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Money Rates September 27, 2019
new information about the prospects of a company. Insiders are required to report large trades to the SEC
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
Thomson Financial on September 27, and year-to-date stock performance of the company guide to general levels but don’t always represent actual transactions.
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer Week —52-WEEK— Week —52-WEEK—
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner Inflation Latest ago High Low Latest ago High Low
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: Aug. index Chg From (%)
level July '19 Aug. '18 High 1.9300 1.9500 3.0000 1.9000 Three month 2.09863 2.13463 2.82375 2.09863
unknown VP: vice president Excludes pure options transactions
Low 1.6500 1.7000 2.4400 1.6500 Six month 2.06300 2.07038 2.90788 1.98725
U.S. consumer price index Bid 1.7500 1.7500 2.4400 1.7200 One year 2.04325 2.06500 3.14413 1.89100
Biggest weekly individual trades All items 256.558 –0.01 1.7 Offer 1.9000 1.9500 2.5000 1.7800
Based on reports filed with regulators this past week Core 264.169 0.23 2.4 Euro Libor
Treasury bill auction One month -0.508 -0.501 -0.400 -0.522
No. of shrs in Price range ($) $ Value International rates 4 weeks 1.880 1.950 2.470 1.880 Three month -0.437 -0.423 -0.324 -0.482
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%)
13 weeks 1.905 1.945 2.465 1.900 Six month -0.416 -0.408 -0.288 -0.474
Week 52-Week
Latest High Low 26 weeks 1.860 1.870 2.505 1.825 One year -0.357 -0.333 -0.159 -0.428
Buyers ago
Value 52-Week
Sept. 18 Kraft Heinz KHC A. Van Damme DI 250 28.45 7,113 27.84 -35.3 Prime rates Secondary market Latest Traded High Low
Sept. 19 VBI Vaccines VBIV S. Gillis DI 10,000 .50 5,000 0.49 -69.1 U.S. 5.00 5.00 5.50 5.00
Fannie Mae DTCC GCF Repo Index
Canada 3.95 3.95 3.95 3.70
Sept. 20 Scientific Games SGMS R. Perelman DOI 100 22.98 2,298 20.81 16.4 Japan 1.475 1.475 1.475 1.475 30-year mortgage yields Treasury 1.874 53.520 6.007 1.869
Sept. 23 MaxLinear MXL S. Litchfield CFO 11 22.19 250 22.28 26.6 30 days 3.274 3.322 4.607 2.871 MBS 1.909 82.400 6.699 1.909
Policy Rates 60 days 3.294 3.341 4.632 2.890
Sept. 19 Stage Stores SSI T. Weber O 230 .99 227 2.08 181.1 Euro zone 0.00 0.00 0.00 0.00 Notes on data:
Sept. 23 GameStop GME G. Szczepanski D 40 5.04 202 5.34 -57.7 Switzerland 0.50 0.50 0.50 0.50 Other short-term rates U.S. prime rate is the base rate on corporate
Sept. 24 K. Vrabeck D 20 5.29 106 Britain 0.75 0.75 0.75 0.75 loans posted by at least 70% of the 10 largest
Sept. 20 C. Teffner D 21 4.73 100 Australia 1.00 1.00 1.50 1.00 Week 52-Week U.S. banks, and is effective September 19, 2019.
Latest ago high low
Sept. 19 Summit Financial Group SMMF G. Hinkle D 8 25.00 200 26.26 36.0 Other prime rates aren’t directly comparable;
Overnight repurchase lending practices vary widely by location;
Sept. 24 Keurig Dr Pepper KDP M. Denooyer O 6 27.01 162 27.00 5.3 U.S. 2.00 2.00 3.40 1.92 Call money Discount rate is effective September 19, 2019.
12 9.20 8.91 -62.0 3.75 3.75 4.25 3.75 DTCC GCF Repo Index is Depository Trust &
Sept. 25 KLX Energy Services Holdings KLXE H. Floyd OI 115 U.S. government rates Clearing Corp.'s weighted average for overnight
Sept. 18-20 DPW Holdings DPW D. Gu B 40 2.70-2.81 111 2.22 -97.3 Commercial paper (AA financial) trades in applicable CUSIPs. Value traded is in
Discount billions of U.S. dollars. Federal-funds rates are
Sept. 20 Cannae Holdings CNNE R. Cox CFO 4 27.04-27.14 100 27.83 62.6 90 days 2.01 1.99 2.80 1.99
2.50 2.50 3.00 2.50 Tullett Prebon rates as of 5:30 p.m. ET.
Sept. 20 Chewy CHWY S. Mccollam D 4 27.50 96 26.01 ... Sources: Federal Reserve; Bureau of Labor
Federal funds Libor Statistics; DTCC; FactSet;
Sept. 5-24 Century Bancorp CNBKA J. Filler B 1 82.45-87.00 90 87.93 29.8
Effective rate 1.8400 1.8700 2.4800 1.8400 One month 2.03150 2.03650 2.52238 2.01838 Tullett Prebon Information, Ltd.
Sept. 5 LS Starrett SCX F. O Brien CFO 14 6.34 86 5.68 8.6
Sept. 5 D. Starrett P 11 6.34 67
14 5.91 84 5.74 -30.8
Sept. 18 Aldeyra Therapeutics Inc ALDX T. Brady CEO
Cash Prices WSJ.com/commodities Friday, September 27, 2019
Sellers These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Sept. 19 Funko FNKO K. Brotman DI 3,600 25.42 91,512 20.07 52.6
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
Sept. 19 G. Dellomo DI 3,600 25.42 91,512 months.
Sept. 19 A. Kriger DI 3,600 25.42 91,512 Friday Friday Friday
Sept. 16-18 Overstock.com OSTK P. Byrne B 4703* 16.32-21.84 90,075 11.23 -17.3 Palladium,Engelhard industrial 1676.0 Wheat,No.2 soft red,St.Louis-bp,u 4.7200
Energy
Sept. 24 Foundation Building Materials FBM J. Grayken BI 4,750 16.28 77,318 15.33 84.5 Palladium,Engelhard fabricated 1776.0 Wheat - Hard - KC (USDA) $ per bu-u 4.0650
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 62.800 Aluminum, LME, $ per metric ton *1724.0 Wheat,No.1soft white,Portld,OR-u 5.8900
Sept. 19-20 Intuit INTU S. Cook ODI 133 268.23-272.70 36,032 263.19 33.7
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.200 Copper,Comex spot 2.5830
Sept. 19 Integra LifeSciences Holdings IART R. Caruso BI 520 60.97 31,704 59.33 31.6 Food
Metals Iron Ore, 62% Fe CFR China-s 91.5
Sept. 20 Facebook FB M. Zuckerberg CEOI 126 189.07-192.75 23,942 177.10 35.1 Shredded Scrap, US Midwest-s,m 245 Beef,carcass equiv. index
Sept. 19 M. Zuckerberg CEOI 126 188.82-190.70 23,845 Gold, per troy oz choice 1-3,600-900 lbs.-u 179.23
Steel, HRC USA, FOB Midwest Mill-s 535
Sept. 23 M. Zuckerberg CEOI 126 185.28-189.43 23,490 Engelhard industrial 1489.00 select 1-3,600-900 lbs.-u 155.75
Sept. 25 M. Zuckerberg CEOI 119 178.57-183.12 21,440 Fibers and Textiles
Engelhard fabricated 1600.68 Broilers, National comp wtd. avg.-u,w 0.7848
Sept. 24 M. Zuckerberg CEOI 112 181.00-188.00 20,677
Handy & Harman base 1489.90 Butter,AA Chicago 2.1475
Sept. 24 Sysco SYY R. Charlton O 301 78.81-78.82 23,717 78.87 25.9 Burlap,10-oz,40-inch NY yd-n,w 0.5000

.
Handy & Harman fabricated 1653.79 Cheddar cheese,bbl,Chicago 165.50
Cotton,1 1/16 std lw-mdMphs-u 0.6090
Sept. 19 FactSet Research Systems FDS P. Hadley D 75 282.86 21,215 242.12 21.0 LBMA Gold Price AM *1507.05

ly
Cotlook 'A' Index-t *71.40 Cheddar cheese,blk,Chicago 195.50
Sept. 19-20 Anaplan PLAN R. Ward DI 396 51.00-54.53 20,624 46.91 76.8 LBMA Gold Price PM *1506.40 Milk,Nonfat dry,Chicago lb. 111.00
Hides,hvy native steers piece fob-u n.a.
Sept. 3 L3Harris Technologies LHX D. Mehnert O 73 209.42 15,319 208.92 55.2
Krugerrand,wholesale-e 1559.64 Coffee,Brazilian,Comp 1.0079
Wool,64s,staple,Terr del-u,w n.a.
Maple Leaf-e 1574.63 Coffee,Colombian, NY 1.3447
Sept. 23-24 Broadridge Financial Solutions BR R. Daly OD 113 125.41-126.67 14,203 123.88 28.7
American Eagle-e 1574.63 Grains and Feeds
Sept. 19 Smartsheet SMAR
* Half the transactions were indirect **Two day transaction
B. Frei DI
on 325 40.95-41.02 13,322 36.19 45.6 Mexican peso-e
Austria crown-e
1816.13
1472.96
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
n.a.
83
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
0.5850
13.80
0.61
p - Pink Sheets Austria phil-e 1574.63 Hogs,Iowa-So. Minnesota-u 68.49
Corn,No. 2 yellow,Cent IL-bp,u 3.6050
Silver, troy oz. Pork bellies,12-14 lb MidUS-u 0.9275
us l,

Corn gluten feed,Midwest-u,w 96.1

Buying and selling by sector Engelhard industrial 17.4500 Pork loins,13-19 lb MidUS-u 0.8259
Engelhard fabricated 20.9400 Corn gluten meal,Midwest-u,w 372.1
Steers,Tex.-Okla. Choice-u 103.00
Based on actual transaction dates in reports received this past week 17.4650 Cottonseed meal-u,w 213
al a

Handy & Harman base Steers,feeder,Okla. City-u,w 147.25

e
Handy & Harman fabricated 21.8310 Hominy feed,Cent IL-u,w 105
Sector Buying Selling Sector Buying Selling
LBMA spot price *£14.5600 Meat-bonemeal,50% pro Mnpls-u,w 213 Fats and Oils
ci on

Basic Industries 0 9,925,150 Finance 469,533 51,184,321 (U.S.$ equivalent) *17.9700 Oats,No.2 milling,Mnpls-u 3.0250 Corn oil,crude wet/dry mill wtd. avg.-u,w 27.8300
Business services 0 4,301,336 Health care 0 52,522,087 Coins,wholesale $1,000 face-a 12992 Rice, Long Grain Milled, No. 2 AR-u,w 25.25 Grease,choice white,Chicago-h 0.2575
Capital goods 0 0 Industrial 358,143 23,650,612 Other metals Sorghum,(Milo) No.2 Gulf-u 6.8575 Lard,Chicago-u n.a.
Consumer durables 0 7,747,609 Media 43,273 21,285,969 LBMA Platinum Price PM *932.0 SoybeanMeal,Cent IL,rail,ton48%-u 292.40 Soybean oil,crude;Centl IL-u 0.2837
Platinum,Engelhard industrial 928.0 Soybeans,No.1 yllw IL-bp,u 8.4350 Tallow,bleach;Chicago-h 0.2800
Consumer nondurables 164,989 6,594,310 Technology 8,194 90,294,998
Platinum,Engelhard fabricated 1028.0 Wheat,Spring14%-pro Mnpls-u n.a. Tallow,edible,Chicago-u n.a.
Consumer services 775,718 46,894,379 Transportation 0 0
er rs

Energy 156 67,603 Utilities 13,879 6,497,167 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=American Commodities Brokerage Co;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 9/26
Sources: Thomson Financial; WSJ Market Data Group Source: WSJ Market Data Group
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Nickel Supply Falls Short of Demand
BY RHIANNON HOYLE
SYDNEY—Global producers
of electric cars have big ambi-
tions and a bigger problem:
Supplies of a key material are
running short.
Nickel sulfate is a brilliantly
colored crystalline substance
used in electric-vehicle batter-
ies. The ore most commonly
used to produce it is mined in
only a handful of places—and
they include some of the most
politically or operationally
challenging, such as Russia or
Canada’s frozen Northeast.
Nickel sulfate accounts for
just a fraction of global nickel
sales; about 70% of nickel is
used in stainless steel. But
auto makers will launch over
200 new plug-in electric vehi-
cles through 2023, consulting
firm AlixPartners estimates—
and that isn’t counting hy-
brids. UBS expects batteries in
electric vehicles to account for
12% of global nickel demand
by then, up from 3% in 2018.
And after years of low
prices that stalled investment
by global miners, nickel supply
is falling short of demand.
“There’s no new nickel in the
pipeline,” said Angela Durrant,
principal metals analyst at
Wood Mackenzie, a U.K.-based
consulting firm.
Batteries with a high nickel
content are becoming more
popular because of the metal’s
stability under high tempera-
tures and its resistance to
overcharging, UBS said. Tesla
Inc. has increased the nickel in
its battery packs and reduced
the cobalt—achieving the
highest energy density of any
electric-vehicle battery, it
says, meaning a longer driving
range. It plans to eliminate co-
balt entirely. At a conference
Fewer
Stocks
Rallying
Continued from page B1
Those stocks have lost
2.6%, 14% and 7.5%, respec-
tively, since the S&P 500
peaked in July.
Meanwhile, safety stocks in
sectors including consumer
staples, utilities and real es-
tate have led this month’s
rally. Walmart Inc., Procter &
Gamble Co., utility holding
company American Electric
Power Co. and cellular-tower
firm American Tower Co.
each hit new highs in Septem-
ber. All four stocks climbed at
least 4.8% since late July.
The latest rally has been
largely driven by easing mone-
tary policy from the Federal
Reserve and signs of a firming
U.S. housing market.
But those factors haven’t
dispelled worries about the
U.S.-China trade spat and a
slowdown in corporate earn-
ings that threaten to upend
no
the bull market.
The S&P 500 has struggled
to stay above 3000, a resis-
tance level. Investors will be
awaiting the outcome of the
next round of trade negotia-
tions in October and monitor-
ing third-quarter earnings re-
ports—which are expected to
show another quarter of lower
profits—in the coming weeks.
THE TICKER | Market events coming this week
Monday Purch., prev. down 3%
Refinan., prev.
Chicago PMI
Aug., previous 50.4
Sept., expected 50.5 EIA status report
Previous change in stocks in
Earnings expected* millions of barrels
Estimate/Year Ago($) Crude oil
Thor Industries Gasoline
1.43/1.67
Distillates
Tuesday Earnings expected*
ISM mfg. index
Estimate/Year Ago($)
Acuity Brands
Aug., previous 49.1
Sept., expected 50.2
Lennar
Paychex
Construction RPM Intl. 0.91/0.76
spending
July, previous up 0.1%
Aug., expected up 0.4% Thursday
Initial jobless claims
Earnings expected* Previous
Estimate/Year Ago($) Expected
McCormick & Co.
1.29/1.28 EIA report: natural
gas
Wednesday Previous change in stocks in
billions of cubic feet
Mort. bankers indexes
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY
ITEMS (LOSSES IN PARENTHESES)  ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM
DOW JONES WEEKLY SURVEY OF ECONOMISTS
Electric-vehicle batteries are predicted to become a booming market for nickel miners, from a sliver of demand
today—and that's expected to drive appetite for a high-grade form of the commodity far ahead of supply.
Nickel end markets*
100%
Others
Batteries
Alloy steel
80 Plating
Nonferrous
alloys
60
40
Stainless
steel
20
0 –200
*Doesn't include recycled nickel
Sources: International Nickel Study Group (end markets); CQG (London Metal Exchange); UBS (surplus/deficit); BMO Capital Markets (EVs)
in May that included miners
and lawmakers, a Tesla man-
ager spoke of the importance
of continued investment in
mining for battery metals.
In the Australian Outback,
workers digging nickel out of
the red earth for BHP Group
Ltd. have reason to be thank-
ful for the appetite of Europe-
ans and, increasingly, Ameri-
cans for electric vehicles.
BHP’s Nickel West opera-
tion was on the mining indus-
try’s death row only four years
us l,
ago. With stainless-steel mak-
al a
e
Analysts will also be watching
Friday’s labor-market data for
ci on
further indications on the
health of the economy after
Fed officials this month were
split over the outlook for fur-
ther interest-rate reductions.
er rs
Data have remained mixed.
Recent housing figures have
pointed to a firming U.S. econ-
omy, while consumer spending
m e
has remained robust.
At the same time, manufac-
turing activity has eased, hir-
m rp
ing slowed in August and con-
sumer confidence slid this
month.
Still, some analysts and in-
vestors remain optimistic on
co Fo
the latest run for stocks and
argue a long period of side-
ways trading often presages a
sharp move higher.
“Historically, markets that
have gone nowhere like the
S&P 500 has the last 18
months have typically resolved
with a big upside move,” said
Thomas Lee, managing part-
ner and head of research at
Fundstrat Global Advisors.
Technical indicators have
turned bullish after flashing
n-
red this summer. About 68% of
the companies in the S&P 500
are trading above their 50-day
moving averages, up from less
than 25% when the broad in-
dex came under pressure in
early August.
Indicators tied to the U.S.
economy have also rebounded.
The gap between short- and
long-term Treasury yields,
known as the yield curve, has
stabilized after inverting this
summer, easing concerns about
the direction of the economy.
Factory orders
July, previous up 1.4%
down 15% Aug., expected up 0.1%
ISM non-mfg index
Aug., previous 56.4
Sept., expected 55.2
up 2.4
up 0.5
Earnings expected*
down 3.0 Estimate/Year Ago($)
Constellation Brands
2.63/2.87
2.54/2.36
Costco
PepsiCo 1.50/1.59
2.81/2.68
1.32/1.37
Friday
0.69/0.67
Nonfarm payrolls
Aug., prev. 130,000
Sept., exp. 140,000
Unemployment rate
213,000 Aug., previous 3.7%
215,000 Sept., expected 3.7%
Trade deficit
July, previous
$54.0 billion
Aug., expected
up 102 $54.6 billion
MARKETS
London Metal Exchange 3-month nickel
2006 2010
Nickel surplus/deficit
200 thousand metric tons
100
0 200
ESTIMATES –100
2014 ’15 ’16 ’17 ’18 ’19 2020
ers turning to cheaper nickel
sources elsewhere, such as
Southeast Asia, executives de-
bated its closure—which could
cause the direct loss of 2,000
jobs. As recently as May, it
was up for sale.
Now, Nickel West ranks
among BHP’s priorities for
new investment. Battery cus-
on tomers, a nonfactor as re-
cently as 2015, now buy most
of the operation’s production.
BHP plans to start up one of
the world’s largest nickel-sul-
fate plants next year, and has
Payment
Plans
Proliferate
Continued from page B1
including Walmart Inc., Urban
Outfitters Inc. and, soon, H&M.
Some Amazon.com Inc. credit-
card users can also sign up for
these plans.
Merchants and lenders are
tapping into the financial chal-
lenges many U.S. families are
facing. Despite signs of a strong
economy, like low unemploy-
ment, consumers are increas-
ingly relying on borrowing to
fund their daily lives. U.S. con-
sumer debt is higher than ever,
as cars, college, housing and
medical care grow more expen-
sive but incomes stay largely
stagnant.
The payment plans often
resonate with young adults
who are wary of carrying
credit-card balances after
watching their parents struggle
with debt during the last reces-
sion. Financial technology com-
panies such as Affirm, Afterpay
Touch Group Ltd. and PayPal
Holdings Inc. dove into these
payment plans after that pe-
riod, when banks pulled back
on consumer lending.
Growth is booming. Affirm’s
point-of-sale loans doubled to
about $2 billion last year and
are expected to at least double
again this year, Chief Executive
Max Levchin said.
Reliable, industrywide statis-
tics about the size of this mar-
ket are hard to come by, and it
is tiny compared with the
roughly $450 billion of spend-
ing limits on new U.S. credit
cards that Experian PLC says
were issued last year.
But more than half of mer-
chants surveyed this year by
advisory firm 451 Research said
they already offered install-
ment options or planned to
adopt them in the next year.
Nearly 40% of consumers sur-
veyed said the ability to finance
a purchase at checkout made it
more likely they would com-
plete a transaction.
Big financial companies, ea-
ger to expand their consumer
lending, are jumping in. JP-
Morgan Chase & Co., Citi-
group Inc. and American Ex-
press Co. have introduced or
are working on payment pro-
grams for cardholders that re-
semble installment loans.
Some consumers, like Mr.
Gauthier, have credit cards but
prefer the structure of point-of-
sale loans. Interest rates are of-
ten lower. The loans last for
only a set, relatively short time.
And borrowers also generally
know up front how much they
are going to pay in total.
$50 thousand per metric ton
’15
Nickel demand in battery EVs
and plug-in hybrid EVs
400 thousand metric tons
ESTIMATES
2014 ’16 ’18 ’20
lined up buyers in Japan,
South Korea and China.
“We have been on an ex-
traordinary journey since Jan-
uary 2015,” said Eduard Hae-
gel, BHP’s asset president
overseeing Nickel West.
Betting on a demand boom
is a tough business, especially
for a niche commodity that
isn’t easily priced or hedged.
Today, trading on the London
Metal Exchange is for nickel
cathodes, pellets and bri-
quettes only. Buyers typically
pay a premium for battery-
JEREMY M. LANGE FOR THE WALL STREET JOURNAL
Erica Padilla has signed up for 10 Afterpay payment plans since last year.
Say a borrower buys a $100
outfit. With a credit card, he
will need to pay that off by the
next due date or carry a card
balance, which can last months
if he makes only the minimum
payments and racks up interest
charges. With an installment
loan, he pays a fixed amount
with each payment—say, $25
each month over the following
four months, or more depend-
ing on interest or other
charges—and knows ahead of
time what the total will be.
In some ways the offerings
echo layaway plans that were
popular in years past, though
those buyers didn’t usually get
their item until after they had
made all their payments.
Some borrowers say the in-
stallment plans force them to
be more disciplined about pay-
ing back the money, and that
they feel like they have more
control since they are borrow-
ing for a specific item.
“When you put something
on a credit card, it vanishes
into a big black ball of debt,”
said Guy Stephens, of Lusby,
Md., who has paid for a vaca-
tion and mattress using Affirm.
“There are balances I’ve had
over time where I don’t even
know what I bought.”
Larger purchases can require
relatively big monthly pay-
ments. For example, a borrower
who makes a $400 purchase
might have to pay it back in
four $100 installments. With a
credit card, the minimum re-
quired payment each month
Monday, September 30, 2019 | B9
Global supply, by type of ore
Laterites
62%
40
30
20
10
0 commodities consulting firm.
Sulphides
300 38%
Commonly
used to
produce
100
nickel
0 sulphate
’25
Less than 10% of
nickel supply is in
sulphate form
grade nickel sulfate, which
makes pricing opaque.
The benchmark nickel price
is historically volatile. It has
surged roughly 70% in 2019, to
about $18,000 a metric ton,
.
because of a ban on nickel-ore
ly
exports from Indonesia that
will take effect earlier than
traders had expected.
Some analysts are cautious
after the last big nickel boom.
Triggered by China’s industri-
alization, it sent the price to
$50,000 a ton in 2007 from
roughly $10,000 just a few
would likely be much smaller.
These plans are generally of-
fered to customers while they
are browsing products or about
to purchase an item, often on-
line but sometimes in stores as
well. Retailers hope such ser-
vices will draw in new custom-
ers and prompt them to spend
more. The fintech companies
typically collect money from
merchants for each sale.
As with credit cards, the
loans are unsecured, which
means lenders generally can’t
repossess particular items if
borrowers fall behind on pay-
ments. Borrowers can be re-
ferred to debt collectors.
New fintech firms
offer installment
plans to buy lower-
priced items.
Some borrowers use the in-
stallment loans because they
don’t qualify for a credit card.
Some of the companies provid-
ing the loans review nontradi-
tional data about borrowers.
For example, Affirm at times
reviews applicants’ bank ac-
count balances.
Heidi Peyser said she was
rejected for several credit cards
after she fell behind on bills.
While shopping for a mattress
on Purple.com, she saw Affirm’s
option that allowed stretching
years earlier. But a crash soon
followed, after China’s steel
producers figured out how to
substitute a lower-grade prod-
uct known as nickel pig iron.
There is a risk a long-term
surge fueled by electric vehi-
cles could again drive innova-
tion and bring nickel down.
Still, many miners and ana-
lysts are skeptical on the op-
tions for swapping out nickel.
Meanwhile, costly new proj-
ects—requiring nickel prices
in the mid-$20,000s to be
profitable—are likely to be
needed to bridge the market
gap, according to Roskill, a
Already some mining com-
panies are experimenting with
new technologies to get ahead
of the game. Independence
Group NL has high hopes for
the Nova nickel deposit, origi-
nally stumbled upon in 1979
by a prospector searching the
Outback for wreckage of the
U.S. space station Skylab.
Independence is looking to
produce nickel sulfate and
other commodities, including
cobalt, by a method that in-
volves injecting oxygen into a
reaction chamber to convert a
nickel concentrate.
BHP, Independence and
Australian rivals have scram-
bled, meanwhile, to secure
rights to explore land they
think could hold more high-
grade nickel resources.
Roskill predicts some stain-
less-steel makers that today
use premium material will
switch to lower-grade nickel,
which would free up some
supplies. Still, it forecasts bat-
teries accounting for roughly
one-fifth of all nickel demand
by 2030, with rapid demand
growth through the first half
of the next decade.
the payment over six months.
“I thought ‘Well, let’s see how
this goes,’ ” she said.
Ms. Peyser, a 39-year-old
web designer in Santa Rosa,
Calif., has signed up for five Af-
firm financing plans since 2017
to buy woodworking tools, a gel
for joint aches and other items.
She recently paid off the loans.
Some installment options
don’t charge interest. Afterpay
allows shoppers to divide pur-
chases into four payments that
are typically deducted from the
customer’s debit card. Though
it doesn’t charge interest, it
does assess late fees for missed
payments. The Australia-based
company has partnered with
more than 6,500 U.S. mer-
chants since entering the U.S.
last year.
Card companies have also
been expanding their presence
in the sector. Mastercard Inc.
this year purchased Vyze, a
technology company that en-
ables point-of-sale lending. Citi-
group and AmEx let customers
convert some of their card pur-
chases into installment loans,
and JPMorgan will soon intro-
duce that. Visa Inc. in June an-
nounced that U.S. banks that is-
sue Visa cards will be able to
offer installment options.
Catherine Tabor, 24, has
used the AmEx plan nine times
since late last year, including
for Fleetwood Mac concert
tickets. Ms. Tabor has paid off
those balances. “I’m not mak-
ing a whole lot of money,” she
said, “so this is really helpful.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B10 | Monday, September 30, 2019 THE WALL STREET JOURNAL.

HEARD STREET ON
THE
FINANCIAL ANALYSIS & COMMENTARY

Fed’s Preferred Measure

Of Inflation Isn’t Giving
The Complete Picture
How muted is inflation, really?
The answer to that question has
depended a lot lately on what in-
flation measure you are looking at.
The Federal Reserve’s preferred
inflation measure—the price index
for personal-consumption expendi-
tures—has been running cool. Cru-
ODIN JAEGER/BLOOMBERG NEWS
flation also suggest prices are ris-
ing a bit faster than the PCE says.
The Atlanta Fed’s sticky price
CPI—a weighted basket of CPI
items that change price relatively
slowly—showed core prices up
2.6% from a year earlier in August,
for example. A San Francisco Fed

cially, this is the index the Fed’s
2% inflation target is based on.
The Commerce Department re-
ported Friday that the overall PCE
price index was flat in August
from July, putting it up just 1.4%
from a year earlier. Core prices,
which exclude food and energy
Shares surged after Tesla logged record second-quarter vehicle deliveries, but they dove after full results arrived. items to better capture inflation’s
trend (and which the Fed watches
measure of PCE prices that are
more sensitive to overall economic
conditions (as opposed to indus-
try-specific factors) was up 2.4%
as of July. And the Dallas Fed’s
trimmed mean inflation rate,
which tosses out the biggest posi-
tive and negative monthly price
movers in the PCE, was up 2% in
August.

Tesla’s Diminishing Returns

Analysts expect higher vehicle deliveries, but full results may tell different story
A fresh milestone for Tesla isn’t
likely to provide a lasting benefit.
The electric-car company is
slated to report third-quarter vehi-
lion in third-quarter sales, which
would be down from $6.8 billion a
year ago. If that proves correct,
Tesla would face its first year-over-
that consensus was for profit of
$1.03 a share. Furthermore, drains
on Tesla’s $5 billion cash balance
are coming soon: Tesla has a $566
closely), were up 1.8%.
That counts as a stronger read-
ing than May, when core PCE was
running at 1.5%, but it isn’t likely
to make to Fed think its recent
worries about too-low inflation
were for naught.
The other main measure of in-
flation—the Labor Department’s
consumer-price index—has been
showing a bit more heat. The core
CPI was up 2.4% from a year ear-
So it might be the core PCE, and
not the core CPI, that is the real
outlier. If that is right, then core
PCE might pick up in the months
ahead. And next winter, when
some very weak early 2018 read-
ings drop out of the year-over-year
calculation, core PCE prices could
be running north of 2%.
At that point, if the job market
is still doing well, the Fed’s argu-
ments for staying easy could get a

.
cle deliveries sometime this week, year revenue decline since the third million debt maturity due in No- lier in August, marking its biggest lot harder. —Justin Lahart

and Wall Street anticipate a big
number. Analysts on average expect
that 98,000 cars were delivered in
the quarter, according to FactSet.
That would mean 16% growth from
a year earlier and Tesla’s second
consecutive record, after delivering
slightly more than 95,000 cars in
quarter of 2012. Back then, the top
line was just $50 million.
A weaker product mix and serial
price-cutting helps explain the di-
on
vergence. Sales of the pricier,
higher-margin Model S sedan and
Model X sport-utility vehicles are
down sharply, while sales of the
us l,
vember.
That puts the stock in a vulnera-
ble position. Tesla shares trade at
about 150 times forward earnings
estimates, according to FactSet. A
typical auto maker sells for 10 times
or less. That disparity will look even
more glaring if top-line growth
ly
gain since 2008. Core PCE almost
always runs a bit lower than core Consumer prices,* change
CPI, but in recent years the gap from a year earlier
between the two has rarely been
3.0% CPI
so high.
There are important differences PCE index
2.5
between how PCE and CPI infla-
tion are measured. The CPI, for ex-

the second quarter. 2.0

cheaper Model 3 expand. Analysts fades away. ample, places a much greater
Investors will have to wait for expect Model 3 sales to contribute Worse, while the stock regularly weight on housing costs. And
al a

full third-quarter earnings later next
month to see complete business re-
sults, however. And it shouldn’t be
e
more than 80% of this quarter’s to-
tal. A year ago, that share was
about 66%. Tesla also has regularly
ci on
1.5
experiences sharp rallies, the long- lately, health-insurance costs have
run performance looks much less added substantially to CPI infla-
impressive. Over the past five years, tion, largely as a result of techni- 1.0

forgotten that Tesla shares surged
on news of record second-quarter
deliveries in July, only to plunge
later that month when the company
unveiled a $408 million net loss.
cut prices on its cars in the U.S. as Tesla shares have been essentially cal factors many economists be-
federal tax rebates for buyers grad- flat. The stock has underperformed lieve are temporary, while in the 0.5
ually dwindle. the Nasdaq Composite by more than PCE these cost gains have been
The Wall Street consensus expec- 80 percentage points over that muted. 0
tation now is for a second-quarter time. But it isn’t just the CPI that sug- 2005 ’10 ’15 ’19
er rs

There is reason to believe this
history will repeat itself. Consensus
analyst estimates are for $6.4 bil-
net loss of $1.35 a share, according
to generally accepted accounting
principles. At the start of the year,
m e
m rp
It will take much more than gests core PCE inflation might be *Excluding food and energy items
strong deliveries to revive this flag- understated. A variety of measures Sources: Commerce Department (PCE);
ging growth story. —Charley Grant meant to measure the trend in in- Labor Department (CPI)

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