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France Rains on Croatia’s Parade to Win the World Cup


President
What’s
Sets Low
News
Business & Finance
Bar for
rade fears have
Putin
T slammed markets
around the world, but U.S.
stocks are rising as strong
profits and spending lead
Meeting
investors to shrug off the Trump seeks to damp
risks of a downturn. A1 expectations as critics
 Boeing and Airbus, urge him to push hard
swamped with new jet or-
ders, are struggling to de- on election interference
liver on time, angering cus-
BY MICHAEL R. GORDON
tomers in some cases. A1
AND REBECCA BALLHAUS

.
 The Pentagon said it

ly
reached a multibillion-dollar HELSINKI—President Don-
SHAUN BOTTERILL/GETTY IMAGES

“handshake deal” with Lock- ald Trump entered his sum-


heed Martin to buy the next mit with President Vladimir
batch of F-35 combat jets. B1 on Putin of Russia with a deter-
mined effort to lower expec-
 Increasing frequency
tations, as his top aides said
of hacks of cryptocurrency
the goal was to open a con-
exchanges is adding to in-
versation rather than accom-
us l,

vestor worry about fraud and


plish a reset of U.S.-Russian
lax industry regulation. B1
WINNERS’ GRASP: French players celebrated Sunday after defeating Croatia 4-2 to win the World Cup at Luzhniki Stadium in relations.
al a
e
 Oil companies and utili- Moscow. It was France’s second World Cup trophy, coming 20 years after Les Bleus first won the soccer championship in 1998. A16 U.S. lawmakers urged Mr.
ties are facing off over Trump on Sunday to press
powering the next generation Mr. Putin about Russia’s al-
ci on

of cars amid the prospect of a leged meddling in the 2016

Jet Makers Under Strain


shift to electric vehicles. B1 elections. Monday’s meeting
will mark a symbolic end to
 The U.S. is moving to
the U.S. effort to isolate Rus-
shield agricultural markets
sia after its 2014 annexation
er rs

from high-frequency traders,


of Crimea, but it remains un-
a move some people say will
BY ROBERT WALL planes than it did by this time “It is on all of our radars ev- more than 900 annually by the clear what the U.S. will get in
make little real difference. B1
AND DOUG CAMERON last year, despite promising 80 ery day,” Boeing Chief Executive end of the decade. return.
 Private-equity firm more this year. Dennis Muilenburg said Sunday For years, booming demand Trump officials declined to
m e

General Atlantic has invested Boeing Co. and Airbus SE, The missed deliveries mean at the Farnborough Air Show in for new aircraft has made it frame the meeting in those
in U.K. lending startup Green- swamped with orders for new delayed payments because most the U.K., the industry’s biggest more challenging for jet makers terms, undertaking a coordi-
sill, continuing a bet on fi- jets, are struggling to deliver cash changes hands only upon trade show of the year. The to deliver planes on time to air- nated effort Sunday to lower
m rp

nancial technology. B2 them all on time—in some cases delivery. That has hit Airbus’s company has made investments line customers. A supply-line expectations, given the sum-
angering customers and delay- closely followed cash flow over to help manage its suppliers, he crunch for items including en- mit’s unpredictability. Mr.
 Shanghai and Shenzhen
ing payments. the year. said, including in technology to Please turn to page A4 Trump said he wouldn’t get
stock exchanges limited ac-
Airbus has missed a number Boeing hasn’t missed any de- help monitor their performance. credit no matter what he
cess to a Hong Kong trading
of delivery deadlines, forcing liveries and said it won’t. But it Those efforts are crucial, he  Lockheed and Pentagon in achieved.
link, dealing a blow to smart-
co Fo

airline customers to find alter- is straining with the same sup- said, with Boeing poised to de- F-35 deal....................................... B1 “Unfortunately, no matter
phone-maker Xiaomi. B6
natives, change routes or cancel plier shortfalls as Airbus, partic- liver more than 800 planes for  Aircraft makers uneasy over how well I do at the Summit,
flights. It has delivered fewer ularly when it comes to engines. the first time this year and trade................................................ B3 if I was given the great city of
World-Wide Moscow as retribution for all
of the sins and evils commit-
Electric Cars ted by Russia over the years, I
 Trump entered his
summit with Putin deter-
mined to lower expecta-
Spur Oil Shift World’s Biggest Companies would return to criticism that
it wasn’t good enough – that I
should have gotten Saint Pe-
tions, as his top aides said
the goal was to open a dia-
logue rather than reset
U.S.-Russian relations. A1
Oil firms are pushing back as
electric vehicles grow. B1

Electric cars* registered to


Hog Gains From Innovation tersburg in addition!” Mr.
Trump tweeted as he left Scot-
land en route to Finland.
The meeting is unfolding
operate on the roads three days after special coun-
n-

 Top U.S. and Russian


sel Robert Mueller obtained
military officers have
strengthened contacts under
3.0 million cars
Benefits aren’t trickling down, a possible choke on productivity growth indictments of a dozen Rus-
Other sian intelligence officers on
the Trump administration. A9 2.5 As far back as the in- each worker—is one of charges of hacking into Demo-
no

 An Israeli raid on an dustrial revolution, ma- By Jason Douglas, Jon Sindreu the most important cratic Party servers, bringing
Iranian warehouse in Jan- 2.0 Japan jor innovations have and Georgi Kantchev long-term drivers of ris- the issue of Russia’s alleged
uary turned up documents traveled swiftly from ing living standards. interference in the 2016 elec-
that included partial designs 1.5 company to company and industry to industry, Lately, economists have discovered an un- tion to the fore.
for a nuclear warhead. A6 China an economy-boosting phenomenon called diffu- settling phenomenon: While top companies are Rep. Trey Gowdy (R., S.C.)
1.0 sion. getting more productive, gains are stalling for urged the Republican presi-
 Israel and Gaza settled
Today, there is mounting evidence this en- everyone else. And the gap between the two is dent Sunday on CBS to press
into an uneasy truce after
0.5 gine of growth seems to be misfiring, a phe- widening, with globalization and new technol- Mr. Putin to extradite the Rus-
their most intense fighting U.S. nomenon some economists say helps explain ogy delivering outsize rewards to the titans of sians charged by the special
since the 2014 war. A6
0 the slowdown in productivity growth bedevil- the global economy. counsel with hacking Demo-
 Some migrant children 2012 ’13 ’14 ’15 ’16 ’17 ing developed economies. “Whatever good stuff is happening at the cratic email servers.
reunited with parents af- Productivity, usually measured as output per high end is not diffusing down to the tail,” says “Your first request of Vladi-
*Includes both plug-in hybrid and battery
ter being separated at the electric vehicles hour or per worker, refers to the efficiency Andrew Haldane, chief economist at the Bank Please turn to page A9
U.S. border have shown signs Source: International Energy Agency with which goods and services are produced in of England.
of deep emotional trauma. A3 an economy. Boosting productivity—raising the Productivity ills can ultimately hurt living  U.S., Russia bolster military
amount of goods and services produced by Please turn to page A12 ties................................................... A9
 Energy companies and
trade groups are looking to
the EPA acting chief for sta-
bility after Pruitt’s tenure. A3 Vacuuming the Grass, Plucking U.S. Investors Defy Trade Fears
 California Democratic
officials rejected Feinstein,
Blades: This Is Extreme Lawn Care BY AKANE OTANI
overwhelmingly endorsing i i i AND BEN EISEN Leading the Pack
her party challenger. A4 U.S. stocks have held onto their gains, even as fears that a global trade
 Hard-liners in May’s
For some fanatics, mowing is a labor of Trade fears have slammed conflict could worsen have weighed on indexes in Europe and Asia.
markets around the world, but
own Conservative Party are
imperiling the British prime
love. And it’s getting competitive. U.S. stocks are rising as strong Performance, year to date
profits and spending lead in- 10 %
minister’s Brexit plan. A8
vestors to overlook the risks
 France won the World BY JAMES R. HAGERTY ally hauls out his shop-vac to of a downturn. 5
S&P 500
Cup in a 4-2 victory over Cro- extract it. The S&P 500 and Dow Jones
atia, taking the trophy for the Keith Trzynka’s neighbors Each morning, he tries to Industrial Average have gone 0
Germany's
second time in its history. A16 on Cottonwood Street in pick up any twigs or leaves up all but one day since the –5 DAX
Grand Forks, N.D., that may have fallen U.S. and China imposed tariffs South Korea's
CONTENTS Markets Digest..... B7 are no longer sur- on his grass over- on $34 billion of each other’s
Business & Finance B3,6 Opinion.............. A17-19
–10 Kospi
Business News...... B3 Sports........................ A16 prised to see him Artist’s night. Sometimes he goods on July 6. The S&P 500
Crossword.............. A14 Technology............... B4 vacuuming his front tool sweeps sticks and is now up 4.8% for the year. –15 Shanghai
Heard on Street... B10 U.S. News............. A2-4 lawn. debris from the However, international mar- Composite
Life & Arts...... A13-15 Weather................... A14 –20
Markets............... B9-10 World News.... A6,8,9
Mr. Trzynka, a street in front of his kets have taken a hit: the
retired farm-equip- house to keep the Shanghai Composite has Jan. Feb. March April May June July
ment dealer, wor- landscape tidy. dropped 14% for the year, Source: FactSet THE WALL STREET JOURNAL.
> ries about sand “The lawn is his South Korea’s Kospi Compos-
blown into the little farm,” said Mr. ite Index has shed 6.3%, Ger- repercussions from more trade With the trade tariffs, the
edges of his yard by Trzynka’s wife, Gin- many’s DAX has lost 2.9% and barriers. Tariffs on steel and U.S. is “shooting itself in the
ice-clearing crews ger. Japan’s Nikkei Stock Average aluminum have already hurt economic foot,” said Richard
s 2018 Dow Jones & Company, Inc.
in the winter. The sand threat- For most people, lawn care has declined 0.7% shares of U.S. manufacturers Bernstein, chief investment offi-
All Rights Reserved ens to blight his lovingly is a tiresome chore or some- Some analysts said U.S. mar- and producers, even as most cer of investment adviser firm
tended grass. So he occasion- Please turn to page A12 kets aren’t reflecting possible stocks have largely been spared. Please turn to page A2
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, July 16, 2018 * *** THE WALL STREET JOURNAL.

U.S. NEWS
THE OUTLOOK | By James Glynn
ECONOMIC

Keeping an Economic Boom Going CALENDAR


TUESDAY: The Federal Re-
serve releases figures on June
Sydney according to International lowered interest rates by 4.25 financial crisis in the 1990s, U.S. industrial production. Econ-
U.S. history suggests eco- Monetary Fund estimates, ef- That’s an Expansion percentage points between helped it to boost exports. omists will monitor Tuesday’s re-
nomic expansions come with fectively socking away re- Economic growth in Australia September 2008 and April The currency might not of- port for signs that the manufac-
expiration dates. sources during good times, has continued for nearly three 2009 to 3%, stimulating bor- fer the U.S. much help if the turing sector is picking up
Since 1854, the U.S. has ex- taking some steam out of an decades. rowing, spending and invest- cycle turns, because the dollar steam. Those surveyed by The
perienced 34 expansions, last- already strong economy and Australia’s GDP, change ment. typically attracts buyers seek- Wall Street Journal expect in-
ing from 10 months to 120. leaving the government with a from a year earlier It had room to cut rates be- ing a haven during times of dustrial production increased
The current one, in its 10th cushion to support the econ- cause the central bank spent global stress. The dollar got 0.5% last month.
year, is already longer than all omy on a rainy day. 7% the prior six years raising in- stronger in the last crisis, not Fed Chairman Jerome Powell
but the one of the 1990s. When the global crisis hit 6 terest rates, beginning the weaker. is scheduled to testify on Capitol
Is it doomed to end soon? in 2008, Australia cut taxes process when the Federal Re- Hill over two days, beginning

M
While U.S. history suggests and increased spending, 5 serve was still cutting. oreover, China and Tuesday in the Senate. Investors
yes, one advanced economy pumping 70 billion Australian 4 “The RBA was almost the Australia have an eco- will be looking for clues about
far away suggests perhaps dollars (US$52 billion) into its only central bank in the devel- nomic relationship how Mr. Powell might change
not. economy, equal to 1.6% of eco- 3 oped world which didn’t make the U.S. can’t mimic. Australia the Fed’s rate plans if the U.S.
nomic output, more than U.S. the mistake of leaving rates runs a trade surplus with faces a more protracted trade

A
2
ustralia is experiencing stimulus equal to 1.25% of too low for too long,” said China, one of a few countries fight or if long-term bond yields
an amazing economic output, according to Austra- 1 Saul Eslake, former Australian to do so, thanks in large part fall below short-term yields, a
run—a 27-year expan- lian Treasury Department es- chief economist at Bank of to its mineral exports, but so-called inversion of the yield
0
sion that survived a regional timates. America-Merrill Lynch. also because it attracts tour- curve that has typically preceded
economic crisis in the 1990s, a -1 That helped to tame a ism and foreign students to a recession.

B
global economic crisis in the en Jarman, economist 1980 ’90 2000 ’10 property price boom. “The its schools. WEDNESDAY: The Commerce
2000s, and a boom-boost cy- at JPMorgan Chase & Source: Australian Bureau of Statistics lesson for both economies is China and Australia have a Department releases data on
cle in its core commodity sec- Co., said the stimulus via JPMorgan to regulate the finance sector free-trade agreement. The June U.S. housing starts. Econo-
tor in the 2010s. helped convinced businesses THE WALL STREET JOURNAL. vigilantly, to lean against bub- U.S., on the other hand, is in- mists surveyed by The Wall
Its experience offers les- that any downturn would be bles, and to make financial creasing trade barriers with Street Journal forecast housing
sons for the U.S. and the rest moderate, putting a brake on ready low unemployment, stability one of the goals of China and others. starts dropped 2.2% in June to a
of the world. Among them, layoffs. heating up the economy when the central bank,” said John The policy differences seem 1.32 million annual rate, while
the laws of economics don’t “Firms did not believe the it’s already on strong footing Edwards, economist and for- to suggest high hurdles to an permits rose 0.7% to a 1.31 mil-
dictate that expansions run on downturn would persist,” he and pushing up national debt. mer RBA board member. equally long U.S. boom. lion annual rate.
preset timetables. Wise pol- said. “This moderated the That could leave fewer re- The Fed is raising short- And indeed, Australia’s own FRIDAY: Japan’s statistics bu-
icy-making, and some luck, shock to unemployment and sources when the next reces- term rates now, but they’re boom now faces its own reau releases the consumer-
carried Australia’s expansion smoothed the income adjust- sion threatens. Mr. Jarman’s still below 2%, leaving it little threats. price index for June (release
into the record books. The ment across households.” New York colleague, Michael room to cut rates to stimulate The absence of recession time is Thursday evening in the
more troubling news is the Despite early forecasts that Feroli, said that “is completely the economy should a new has been accompanied by a U.S.). Despite aggressive mone-
U.S. doesn’t seem to be fol- Australia’s jobless rate would at odds with one of the main downturn threaten. long run higher of Australian tary easing by the Bank of
lowing some of these lessons, head above 10%, in the end it lessons of the Australian long Trade is another big part of house prices and fueled a bor- Japan for more than five years,

.
and others might not apply. peaked at less than 6%. expansion.” Australia’s story. A 40% drop rowing binge that pushed prices have become sluggish

ly
Australia paid down gross U.S. fiscal policy right Australia’s central bank, the in the value of Australia’s cur- household debt to 200% of again in recent months. Econo-
government debt from 32% of now—tax cuts and increased Reserve Bank of Australia, rency after the collapse of household incomes. The RBA mists expect the June figure to
gross domestic product in spending—is adding to also played a role cushioning Lehman Brothers, and a simi- identifies it as the biggest risk come in at 0.9%. The BOJ has a
1994 to less than 10% in 2007, growth at a moment of al- on the business cycle. The RBA lar-sized drop after the Asian to the outlook. 2% inflation target.

U.S. WATCH
us l,

CHICAGO CALIFORNIA
al a
e
Man Shot by Police Growing Fire Closes
Had Gun, Video Shows Route Into Yosemite
ci on

Video released from an offi- A wildfire that killed a fire-


cer’s body-worn camera shows a fighter grew quickly and forced
black man killed by Chicago po- the closure of a key route into
lice had a gun in a holster at his Yosemite National Park as crews
er rs

hip and was running away and contended with sweltering con-
reaching toward his waist when ditions Sunday, authorities said.
he was shot multiple times. The blaze that broke out Fri-
Police released the 30-second day scorched more than 6
m e

clip without sound Sunday, a square miles of dry brush along


day after 37-year-old Harith Au- steep, remote hillsides on the
gustus was killed in a shooting park’s western edge. It was
m rp

that set off violent protests. burning largely out of control,


The video shows four officers and officials shut off electricity
approaching Mr. Augustus out- to many areas, including Yo-
side a store. An officer points to semite Valley, as a safety pre-
Mr. Augustus’s waist and he caution.
co Fo

backs away. Three officers try to Guests were ordered to leave


grab his arms and he tries to Yosemite Cedar Lodge Saturday
get away, backing into a police afternoon as flames crept up
cruiser as his shirt flies up and slopes and the air became thick
shows the gun. with smoke.
The footage pauses and Evacuations were also or-
CHICAGO POLICE DEPARTMENT/ASSOCIATED PRESS

zooms in on the weapon. He dered in rural communities just


then runs away and into the outside the park, and people in
street as a police SUV drives up. nearby lodges and motels were
He spins and darts between the told to be ready to leave if
SUV and the police cruiser as he flames approach. A stretch of
reaches toward his waist. State Route 140 into Yosemite
Mr. Augustus died of multiple was closed, and motorists were
gunshots wounds on the city’s urged to find alternate routes.
n-

South Side, medical examiners Spiking temperatures and in-


said. He wasn’t a known gang accessible terrain was making it
member and had no recent ar- difficult for crews to slow the
rest history, police spokesman flames, U.S. Forest Service fire
no

Anthony Guglielmi said. Capt. Mike Seymour said.


A frame grab from a Chicago police body cam video shows authorities pursuing Harith Augustus shortly before he was shot dead. —Associated Press —Associated Press

CORRECTIONS  AMPLIFICATIONS
U.S. Stocks “There is going to be some
more concrete damage.”
The U.S. is in a better posi-
tariffs won’t substantially
threaten corporate profits. An-
alysts remain optimistic about
“Trade risk is not systemic
across equities,” said Brian
Hayes, a quantitative analyst
In a new research project
involving Facebook Inc. data,
the researchers won’t have the
performed as a warm-up co-
median on “The Colbert Re-
port” but didn’t write for it.
Defy Fears tion to withstand economic
downturns, some analysts
said, making the U.S. market a
future earnings: Bank of Amer-
ica Merrill Lynch raised last
week its 2018 and 2019 earn-
at the bank. “There were idio-
syncratic risks, but it was not
affecting the overall market.”
same access as Facebook em-
ployees, and their view “will be
limited to public information
A Review article Saturday
about the comedian incor-
rectly said he wrote for “The
On Trade relative haven. Even after a
nine-year stock rally, U.S. cor-
porate earnings are strong and
ings-growth estimates for the
S&P 500, citing strong U.S.
economic data and better-
Still, some parts of the
market are reflecting burgeon-
ing unease, investors said.
and de-identified or aggregated Colbert Report.” Continued from Page One consumer confidence is robust. than-expected earnings in the Investors are pouring more
datasets.” A Technology & Me- Richard Bernstein Advisors. Goldman Sachs estimates first half of the year. funds into the S&P 500 utilities
dia article Thursday about the In some editions Saturday, Should global trade slow exports to China make up 1% “It’s pretty difficult to get a sector—considered a safer bet
research project quoted a pro- the last name of reporter broadly or the prices of goods of U.S. gross domestic product. really dire economic scenario because of its relatively big
fessor who misspoke when he Jesse Newman was incor- jump, that could in turn cut into That makes it unlikely tariffs just from the tariffs,” said Ed dividend payouts. The sector
said that researchers would rectly given as Norman in the spending by consumers and will have a material impact on Campbell, a senior portfolio has risen 8.1% over the past
have the same access that em- byline of a Business News ar- businesses. A 10% rise in import the earnings growth of U.S. manager at QMA. He said his four weeks, soaring past the
ployees have. ticle about McDonald’s Corp. costs could hurt foreign sales multinational companies, ac- firm, which is more optimistic broader index’s 0.9% advance
removing salads from many and chip away 3% to 4% from cording to the firm. about growth in the U.S. than across the same period. Shares
Comedian Paul Mecurio restaurants. per-share earnings growth, “If somebody’s going to get in the rest of the world, has of smaller, more domestically
Bank of America Merrill Lynch hurt if we engage in some kind been skewing the equities in focused U.S. firms, which are
Readers can alert The Wall Street Journal to any errors in news articles by analysts found in a report. of trade war, it’s far more its multiasset portfolio toward seen as more insulated from
emailing wsjcontact@wsj.com or by calling 888-410-2667. But the U.S. stock market’s likely to be China than the U.S. stocks. global issues, have also outper-
resilience amid tense trade U.S.,” said Mark Grant, chief Morgan Stanley researchers formed, with the Russell 2000
THE WALL STREET JOURNAL talks suggests investors are global strategist and managing found about a fifth of the vola- more than doubling the S&P
(USPS 664-880) (Eastern Edition ISSN 0099-9660) viewing trade-related market director at B. Riley FBR Inc. tility in the U.S. stock market 500’s gain for the year.
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
ructions as buying opportuni- To some, the market’s calm since the beginning of March Some fear a dire scenario if
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays.
ties instead of warning signs. also reflects the outlook that can be explained by trade risk. the trade strife heightens. The
Periodicals postage paid at New York, N.Y., and other mailing offices. The S&P 500, which fell 0.7% S&P 500 could fall as much as
Postmaster: Send address changes to The Wall Street Journal, on Wednesday after the Trump 21% to around 2200 if the U.S.
200 Burnett Rd., Chicopee, MA 01020. administration unveiled plans and China slap 30% tariffs on
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of to place tariffs on an addi- each other’s goods and global
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
tional $200 billion of Chinese auto tariffs are levied, UBS an-
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. goods, rebounded 1% over the alysts found in a report.
FREDERIC J. BROWN/AFP/GETTY IMAGES

Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com following two days. So far, the markets are “as-
“The markets are kind of cribing a very low probability”
NEED ASSISTANCE WITH YOUR SUBSCRIPTION? treating the trade dispute as of a worst-case scenario pan-
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com cheap talk. That’s a bit of a ning out, said Keith Parker, chief
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat miscalculation from the politi- U.S. equity strategist at UBS.
cal risk point of view,” said “There’s too much at stake
REPRINTS & LICENSING Mark Rosenberg, chief execu- on both sides to let relation-
By email: customreprints@dowjones.com; By phone: 1-800-843-0008 tive of GeoQuant, which uses ships deteriorate to that
artificial intelligence to proj- point,” Mr. Parker said.
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS ect geopolitical developments —Peter Levin
and their impact on markets. Trump unveiled plans for tariffs on $200 billion of Chinese goods. 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, July 16, 2018 | A3

U.S. NEWS

To Recruit, Colleges Taking Flight


Higher education consulting firm EAB uses data from a vast national
consumer database to profile current students and shape advertising
Rollback of
Guidelines
Use Corporate Book
to appeal to people who seem similar. Here’s one real-life example for
Houston Baptist University:

Most are women


under age 27
To Hit K-12
Schools tap retailers’
approach in analyzing
cated an interest in travel.
Consumer-driven market-
more than 200 million U.S.
adults.
Avid readers
77%
Interested in travel
Integration
ing, as EAB calls it, is the lat- With the help of consul- BY MICHELLE HACKMAN
75%
consumer databases est step in universities’ efforts tancy Capture Higher Ed in Married
to enroll adult students and Lexington, Ky., tiny Kentucky 43% WASHINGTON—The Trump
for targeted ads build up a new revenue stream Wesleyan College has posted administration’s recent deci-
as the number of new high- ads akin to the “Were you still 1 EAB crossed information about 2 A Facebook ad was produced sion to roll back affirmative
BY MELISSA KORN school graduates stagnates. interested in that blouse?” current graduate business students showing a young woman checking action guidelines sent a ripple
While traditional college messages that online retailers with information in the database. an airport departures board and through the nation’s colleges
Houston Baptist University prospects are easy to find—in use after a shopper leaves a the tagline ‘Open a Whole New and universities, but it also af-
World of Opportunity.’
found a new way to appeal to high schools, with plenty of site. Once web users toggled fects desegregation efforts at
prospective graduate students: data on their family income over to another page after vis- K-12 schools.
boats. and academic interests avail- iting the school’s admissions Public school districts
The university hired higher- able for purchase through the website, they would see a ban- across the country have long
education consulting firm EAB companies that administer ner ad reminding them it isn’t wrestled with how to desegre-
to analyze a vast consumer da- standardized tests—adults too late to finish applying. gate their schools in ways sup-
tabase aiming to identify po- who may want to complete The school ended its con- 3 The school received roughly 100 new inquiries and enrolled between 10 ported by the law, which for-
tential applicants the same their degrees or pursue gradu- tract with Capture Higher Ed and 15 more people for the coming fall, tied to the targeted ad campaigns. bids districts from using the
way retailers find shoppers. ate studies are trickier. in March, after a year, said Sources: EAB; Houston Baptist University THE WALL STREET JOURNAL. race of individual students to
MICHAEL TIMS/HOUSTON BAPTIST UNIVERSITY
EAB created a demographic A tight labor market means spokesman Eddie Kenny, citing determine their placement.
and psychographic profile of adults can find decent-paying budget constraints. “We cer- During the Obama adminis-
Houston Baptist’s enrolled stu- jobs without advanced de- tainly wish we had the re- tration, their efforts were di-
dents and found a high per- grees. That makes pricey pro- sources to utilize more of what rected by a set of federal
centage had interests in recre- grams a tough sell, even if they have to offer,” he said. guidelines detailing ways
ational boating and fishing. there is payoff down the line. Prospective students might schools could take race into
They also liked to travel, and Undergraduate and graduate be turned off by the idea of account, such as drawing zon-
many had children, so their enrollment by students over schools following their online ing lines to include racially di-
schedules were packed tight. age 24 fell by 6.8% between moves, though the institutions verse neighborhoods.
Houston Baptist’s next Face- fall 2015 and fall 2017. only use that tack for individ- Trump administration offi-
book advertisement used a pic- Big data aren’t new in ad- uals who opted in to sharing cials rescinded that document,
ture of a woman fishing with missions, with colleges target- their information via browser along with six others relating
her children, suggesting adults ing prospects in certain ZIP cookies, according to Thomas Houston Baptist University hired a firm to study its student data. to the use of race in college
could go to school and still Codes or with particular test Golden, senior vice president and university admissions, and
have time for family fun. An- scores, for decades. But the for data science at Capture isn’t necessarily cheaper. sion. The company began us- replaced it with a Bush-era set
other featured a woman check- schools have come a long way Higher Ed. And while the con- “You’re meeting the pros- ing machine learning in identi- of guidelines directing schools
ing flight times at an airport, in embracing consumer mar- sumer-marketing methods are pect where they are,” said fying and marketing to to adopt non-race-based mea-
referencing the global oppor- keting techniques. EAB taps more efficient than mailing Brittany Murchison, managing potential students in late 2016, sures to create diversity.

.
tunities available to business into a database run by V12 the same postcard to thou- director of program marketing and now works with about 70 Despite the rollback,

ly
students—75% of whom indi- Data, with 115 data points on sands of people, schools say, it for EAB’s adult learner divi- schools on that initiative. schools are still permitted un-
der federal law to use race
broadly as one factor when

Pain Persists for Some Reunited Children


on drawing up voluntary integra-
tion plans. In a recent state-
ment, Education Secretary
Betsy DeVos, whose agency
BY ARIAN CAMPO-FLORES joined the Justice Department
us l,

AND MELANIE GRAYCE WEST in removing the Obama guide-


lines, said Supreme Court
al a
e
In the days after Ever Reyes precedent, not direction from
Mejía was reunited with his 3- the executive branch, should
year-old son last Tuesday, the dictate schools’ actions.
ci on

young father tried to make “The court’s written deci-


their lives seem normal again. sions are the best guide for
The two kicked around a navigating this complex area,”
soccer ball and played with Mrs. DeVos said. “Schools
toy cars while staying at a vol- should continue to offer equal
er rs

unteer’s home in Detroit. Mr. opportunities for all students


Reyes Mejía wrapped his son while abiding by the law.”
in tight embraces, promising But the administration’s de-
he would never be alone again. cision to rescind the guide-
m e

Father and son were sepa- lines signals its legal philoso-
rated three months ago at a phy, and may indicate that it
Texas migrant-detention cen- will investigate complaints or
m rp

ter; the boy was sent to an join lawsuits against schools


ERIN AILWORTH/THE WALL STREET JOURNAL

agency in Michigan while Mr. that do use race in their de-


Reyes Mejía was sent to an- segregation plans.
other Texas facility. “It might be an indication
Mr. Reyes Mejía said his of what direction the adminis-
co Fo

son isn’t the same. He doesn’t tration chooses to go in, which


speak much. He wants to be is looking at efforts aimed at
constantly close to his father increasing diversity and look-
and worries every time Mr. ing at perhaps challenging
Reyes Mejía steps away. “His them,” said Dennis Parker, di-
personality has changed,” Mr. rector of the racial justice pro-
Reyes Mejía said. “Inside, he gram at the American Civil
carries like a sadness.” Ever Reyes Mejía and his 3-year-old son, right, were reunited after three months, and on Saturday they joined the rest of their family. Liberties Union.
The Trump administration In 2007, the Supreme Court
began separating families as cil, Jennifer Havens, director psychiatric emergency room. said it has reunited all eligible jía and his son rejoined his ruled districts could continue
part of its crackdown on ille- and chief of service for child Most of the children are re- children under age 5 with wife and their 5-month-old to use race in determining the
gal immigration. President and adolescent psychiatry at silient, Dr. Havens said, but their families—58 in all—out daughter in Houston, after fly- makeup of their school popu-
Donald Trump ordered a halt Manhattan’s Bellevue Hospital there is a subset who have a of more than 2,000 children ing down from Detroit. Mother lations as long as they didn’t
to the practice after wide- Center, said the separated significant disorder associated separated from their families. and daughter had crossed the select individual students
n-

spread outrage and a court or- children have experienced with the trauma of separation. Officials said 46 other young border in May and were de- solely on the basis of race.
dered the administration to trauma, whether at home or in Some show signs of major de- children weren’t immediately tained and released, but not Retiring Justice Anthony
reunite more than 2,000 chil- crossing the border and being pression. reunited because they were separated. They are now all Kennedy was the architect of
dren with their families by the separated from a parent. Some very young children deemed ineligible—in some staying with a relative in the 2007 ruling.
no

end of the month. In New York City, the appear confused or don’t rec- cases because the adults seek- Houston as their asylum Most school districts avoid
Families’ joy of reunifica- roughly 300 separated chil- ognize a parent upon reunify- ing to rejoin them posed claims are processed. the risk altogether by using
tion has come in some cases dren in the care of various so- ing, Dr. Havens said. safety concerns, including “He was alone and dam- factors other than race, such
with the realization that the cial-services organizations “For parents to have to go charges or convictions for aged,” Mr. Reyes Mejía said of as students’ socioeconomic
psychological effects of sepa- have regular access to mental- through sort of reacclimating child cruelty and domestic vio- his son. “I ask him to forgive status, to integrate their
ration will take time to repair. health staff and city services themselves to their children is lence, according to U.S. offi- me.” schools.
In testimony Thursday be- that include bilingual child just horrific,” she said. cials. —Erin Ailworth contributed —Leslie Brody
fore the New York City Coun- psychiatrists and a pediatric The Trump administration On Saturday, Mr. Reyes Me- to this article. contributed to this article.

EPA Head Vows to Be ‘Stabilizing Force’ After Turmoil


BY TIMOTHY PUKO just talking to my friends,” Mr.
Regulatory Methods limits—one of his biggest pro- Mr. Pruitt invited allies to fill Wheeler said.
Energy companies and posed rollbacks—became one of the meeting room, many hold- While many Democrats and
trade groups hope the new Fed Pruitt’s Critics the starkest examples. ing signs and cheering his pro- environmentalists are skeptical
leader of the Environmental The filing was all of 38 posal. about Mr. Wheeler because of
Protection Agency will bring a pages long, including graphics It was a common tactic for his connections to coal and the
steady hand to the post. One of the main criticisms provided by industry trade Mr. Pruitt’s team, which limited energy industry, some have ex-
Gone is Scott Pruitt, an out- directed at former Environmen- groups. some reporters’ access to ma- pressed cautious optimism.
sider who became famous for tal Protection Agency Adminis- Lobbyists criticized it for jor news announcements while “We have no illusions that
multiple scandals, political am- trator Scott Pruitt was that failing to include enough of the inviting supporters from groups major policies are going to
MARK WILSON/GETTY IMAGES

bition and antagonizing the some of his regulatory changes EPA’s own research and techni- like conservative think tanks. change. We’re going to dis-
agency he led. His acting suc- had already lost in court, while cal data. “When the new rules come agree,” said Collin O’Mara,
cessor as EPA administrator, others appeared vulnerable be- By comparison, the Obama- out, you’ll see a lot more t’s president and chief executive
Andrew Wheeler, has been a cause his team hadn’t laid out era proposal it was designed to crossed and i’s dotted,” said of the National Wildlife Feder-
Washington insider for almost enough of a legal rationale or replace was 268 pages long, Stephen Brown, chief lobbyist ation, one of the environmen-
30 years. Before becoming Mr. evidence for their new rules. with a 719-page technical sup- at Texas-based oil refiner An- tal groups Mr. Wheeler met
Pruitt’s deputy in the spring, Mr. Pruitt’s proposal for port document. deavor Corp. with in recent weeks. “But he
Mr. Wheeler was a behind-the- loosening tailpipe-emissions In announcing that policy, —Timothy Puko tends to be more collabora-
scenes adviser, lobbyist and EPA leader Andrew Wheeler tive. He gets experts involved
policy wonk, known for being in decision making…There are
friendly even to junior staffers “It is sort of an ideal transi- Mr. Wheeler’s ascension puts donor to Mr. Trump’s campaign. past few weeks doing inter- going to be some areas where
and strident political foes. tion. You’re bringing in the him atop the agency where he For his second full week in views with reporters, meeting we can make progress.”
Mr. Wheeler, 53, said he mechanic who’s been under started his career in Washing- the agency’s top job, Mr. with environmental groups At an all-staff meeting last
wants to avoid the distractions the hood and understood how ton nearly fresh out of law Wheeler is planning to issue a and calling members of Con- week, Mr. Wheeler called the
that have plagued the EPA in things have worked for years,” school in 1991. Since then he memo announcing the return gress. The first three legisla- agency’s career staff the “most
recent months. “I do want to said Rich Gold, head of the has spent 14 years in the Sen- of internal reviews for all reg- tors he reached were Demo- dedicated” in government and
be a stabilizing force,” he said public-policy group at Holland ate, most of it leading Republi- ulatory proposals, as was the crats, and he pledged to go to praised their passion for pro-
during an interview. & Knight LLP, a law and lobby- can staffs on environmental norm in the George W. Bush more meetings and hearings tecting the environment. That
Mr. Wheeler takes over an ing firm. “Andy is a serious committees with EPA oversight. and Barack Obama years. on Capitol Hill to repair the stood in contrast to Mr. Pruitt,
agency beleaguered by conflict, person and is much more for- He spent the last nine years as Though slower, the process is EPA’s ties with Congress, whose mistrust of career staff
at a time when it seeks to shift midable to environmentalists a lobbyist, often for energy designed to ensure that what which deteriorated under Mr. kept him from effectively mo-
from announcing rollbacks to and Democrats in terms of fi- companies, including the coal the agency churns out is on Pruitt. bilizing them to advance his
more detailed policy work to nalizing agency actions that miner Murray Energy Corp., firmer legal footing. “I’m not going to get last- agenda, some of his support-
make those rollbacks stick. can survive challenges.” whose owner has been a major Mr. Wheeler has spent the ing changes in programs by ers 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.

A4 | Monday, July 16, 2018 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

Democratic Board
1 2 3 4
Rejects Feinstein
BY DOUGLAS BELKIN 44% of the votes in last

FROM TOP: J. SCOTT APPLEWHITE/ASSOCIATED PRESS; CLIFF OWEN/ASSOCIATED PRESS


month’s primary to Mr. de
California Democratic offi- León’s 12% and has signifi-
cials rejected Sen. Dianne cantly more money in her
Feinstein on Saturday night campaign war chest.
with an overwhelming en- The two Democrats will face
dorsement of her party chal- each other again in November
lenger, liberal state Sen. Kevin because California has an open
de León, just six weeks after primary system, in which the
Ms. Feinstein handily beat Mr. top two finishers face each
de León in a primary. other regardless of party.
The endorsement of the “While 217 delegates ex-
party’s executive board, with pressed their view on Saturday,
65% of the vote, came despite Senator Feinstein won by 2.1
Ms. Feinstein’s entreaties for million votes and earned 70% of
members not to back any par- the Democratic vote in the Cali-
ticular candidate. She received fornia primary election, carrying
5 6 7 8 7% of the ballots. every county by double digits
The disparity between state over her opponent,” Feinstein
primary voters and party lead- campaign manager Jeff Millman
ers reflected a tack to the left said in a statement.”
among younger activists who But even if Ms. Feinstein’s
are rising through party ranks political future isn’t imperiled,
Judge Brett Kavanaugh, below, has been nominated to succeed retiring Justice Anthony Kennedy, front row, second from the left. and are frustrated by Presi- the development reflects the
dent Donald Trump’s policies growing strength of progres-
Court Connections 4. Justice Neil Gorsuch: Clerked with Judge on such issues as immigration, sive activists within the Demo-
Kavanaugh at the Supreme Court. Both attended health care and environmental cratic Party. In late July, Alex-
If Judge Brett Kavanaugh joins the Supreme Georgetown Preparatory School in Washington. protections. Ms. Feinstein, 85 andria Ocasio-Cortez, a 28-
Court this fall, he will have links with justices 5. Justice Ruth Bader Ginsburg: Joined Judge years old, who has a record of year-old former Bernie
from all parts of the political spectrum. Kavanaugh for mock trials staged by centrist pragmatism, is seek- Sanders organizer, pulled off a
Washington’s Shakespeare Theatre Company. ing a fifth full term. major upset by defeating long-
1. Justice Elena Kagan: Hired Judge Kavanaugh 6. Chief Justice John Roberts: A longtime friend “We have presented Califor- time Rep. Joe Crowley of New
at Harvard Law School. of Judge Kavanaugh’s, who (when Judge nians with the first real alter- York in a Democratic primary.
2. Justice Samuel Alito: Selected by President Kavanaugh was at the White House Counsel’s native to the worn-out Wash-
George W. Bush when Judge Kavanaugh was a Office) helped shepherd him through the ington playbook in a quarter-
top staffer at the Bush White House. Has hired confirmation process. century,” Mr. de León said.
Kavanaugh clerks. 7. Justice Clarence Thomas: He and Judge Mr. de León, 51 years old,
3. Justice Sonia Sotomayor: Shares Judge Kavanaugh are both longtime members of the represents Los Angeles in the
Kavanaugh’s passion for baseball (she’s a Federalist Society, a conservative legal group. state Senate, where he has

.
Yankees devotee and he’s a Nationals booster). 8. Justice Stephen Breyer: Hired a Kavanaugh served as president. He is the

ly
She has also hired Kavanaugh clerks. clerk for the coming term. author of California’s sanctu-
ary-state legislation, backs a
single-payer health-care sys-

ALEX BRANDON/ASSOCIATED PRESS


Tenor at Court Could Shift tem and has written a number
on of bills aimed at increasing re-
newable energy and reducing
carbon emissions in the state.
The vote means Mr. de León
us l,

Kavanaugh’s collegial nature has won plaudits from those who disagree with him will receive several million
dollars in exposure through
al a
e
the Democratic Party, but he
BY JESS BRAVIN ideological lines,” Mr. Epps been times when Judge Ka- into the Bush administra- remains a long shot to unseat
AND BRENT KENDALL said, and the clerks he has vanaugh has found himself in tion. He had served as a top Ms. Feinstein. She received Sen. Dianne Feinstein (D., Calif.)
ci on

sent to the Supreme Court the majority when fellow con- prosecutor in the Whitewater
WASHINGTON—There is lit- have been hired by justices of servatives dissented. investigation that led to Mr.
tle doubt the Supreme Court
will extend its turn to the
right if Judge Brett Kavanaugh
every ideological bent.
In recent years, Judge Ka-
vanaugh has joined with Justice
In 2013, he was in the ma-
jority of a 2-1 ruling that sided
with environmentalists in a
Clinton’s impeachment. He
helped the legal team that put
Mr. Bush in the White House
Close Vote Expected
er rs

joins the bench this fall. But


Judge Kavanaugh’s connection
with nearly every justice, and
Ruth Bader Ginsburg and other
Democratic appointees for mock
trials staged by Washington’s
greenhouse-gas case over regu-
lation of “biogenic” emissions.
In 2014, he was part of the ma-
after a Florida election re-
count was halted. Under then-
White House Counsel Alberto
On GOP Convention
his reputation as a straight- Shakespeare Theatre Company. jority when the full court up- Gonzales, he helped drive the BY VALERIE BAUERLEIN civic trust after a series of vio-
m e

shooter even among those He took pains to praise an- held government regulations Bush administration’s push to lent protests in 2016 over po-
who disagree with him, sug- other liberal judge, Robert that required country-of-origin put young conservatives on The scheduled vote Monday lice shootings, and the conven-
gest he would make the ride Katzmann of the Second Cir- labeling on meat products, the federal bench, including by the Charlotte, N.C., city tion will likely bring more
m rp

as smooth as possible. cuit in New York, when re- over a dissent by other conser- Chief Justice John Roberts, council on final approval for protests.
The court’s last term saw it viewing his book, “Judging vatives who believed the First whom he counts as a friend. its bid to host the 2020 GOP “Does Charlotte want to
swerve between far-reaching Statutes,” which advanced le- Amendment prohibited the “Brett Kavanaugh’s nomina- convention is turning into an take that responsibility for the
5-4 decisions that overruled gal methods at odds with his compelled disclosures. tion to the D.C. Circuit is not unexpected cliffhanger, with nation?” he said.
precedent and cases that fiz- own. “Chief Judge Katzmann is just a drop of salt in the parti- liberal council members facing Monday’s vote could either
co Fo

zled out with procedural rul- one of America’s finest judges san wounds,” Sen. Chuck mounting pressure not to host help repair or further damage
ings. The next justice’s de-
meanor could calm an
and a true role model for me
and many others, both in how
‘They say every time Schumer (D., N.Y.), now the
Senate minority leader, said in
President Donald Trump’s ex-
pected nomination for a sec-
the relationship between the
state’s biggest city and its Re-
institution no longer entirely he approaches his job and in you get a new justice, 2004. “It’s the whole shaker.” ond term. publican legislative leaders,
immune to the discord that
now defines Washington.
how he seeks to improve the
system of justice,” Judge Ka-
the whole chemistry When Mr. Trump announced
his nomination this month,
Democratic Mayor Vi Lyles
pledged the city’s support last
said Tariq Bokhari, a Republi-
can council member.
“They say every time you vanaugh wrote two years ago of the court changes.’ Judge Kavanaugh tried to show spring when Charlotte entered The state GOP declined to
get a new justice, the whole in the Harvard Law Review. that times had changed. He what would prove to be the comment.
chemistry of the court “Even where I disagree, I have thanked Justice Elena Kagan, a winning bid with national Re- Republican Sen. Thom Tillis
changes,” said Daniel Epps, a learned a great deal.” 2010 Barack Obama appointee, publicans. She said Charlotte said that Charlotte hosting the
law professor at Washington Should he join the Supreme Judge Kavanaugh “doesn’t for hiring him to teach a course should be a place of inclusion, 2020 Republican convention
University in St. Louis. Court, Judge Kavanaugh “al- have any sharp elbows,” said when she was dean of Harvard not exclusion. no more endorses Mr. Trump
This time, there won’t sim- ready has built-in relation- Carter Phillips of Sidley Austin Law School. The Kavanaugh- “The best opportunity to than Charlotte’s hosting the
ply be a change in personality, ships. He is a voice the justices LLP, who has argued numerous Kagan relationship may be one change minds and influence 2012 Democratic National Con-
n-

but in the court’s ideological are going to be primed to lis- cases at the D.C. Circuit and to watch in particular, should decisions is through engage- vention endorsed former Pres-
cast if Judge Kavanaugh, a ten to,” said Luke McCloud, a the Supreme Court. “He’s nice they serve together. As her of- ment,” she said in a July 10 ident Barack Obama.
down-the-line conservative, lawyer at Williams & Connolly to everybody in every setting fer—and his acceptance—to op-ed in the Charlotte Ob- “The conventions are an en-
succeeds Justice Anthony Ken- LLP who clerked for Judge Ka- I’ve seen him.” teach at Harvard suggests, both server. dorsement of Charlotte,” Mr.
no

nedy, who found accommoda- vanaugh before clerking for It was by no means evident have seen advantage in detente. But some council members Tillis said.
tion with liberals in decisions Justice Sonia Sotomayor. Judge Kavanaugh would win That could create a contrast said they gave the OK to sub- The vote is expected to be
expanding gay rights, main- Mr. McCloud said that on plaudits for collegiality when with Justice Neil Gorsuch, mit a bid, not for a final deal. close, though Mr. Bokhari, one
taining access to abortion, and the D.C. Circuit, Judge Ka- President George W. Bush whose first term suggests lit- Braxton Winston, a Demo- of two Republicans on the 11-
limiting capital punishment. vanaugh “always tried to take nominated him to the D.C. Cir- tle collaboration with liberal crat and community activist member council, said he is
Over 12 years on the U.S. his colleagues’ views into ac- cuit in 2003. At that point, he colleagues. “It will be interest- elected last November, said he confident the council will nar-
Court of Appeals for the Dis- count even when he disagreed was best known as a combat- ing to see if [Kagan] and Ka- is concerned about the city rowly approve the deal.
trict of Columbia Circuit, with them.” ant in the partisan wars that vanaugh forge some kind of seeming to endorse Mr. Republicans are expected to
Judge Kavanaugh has built “a It is hard to know how col- raged from Bill Clinton’s presi- relationship that seems to be Trump, who he sees as divi- meet next week in Austin,
very good reputation for legiality translates into judi- dency through the disputed absent with Justice Gorsuch,” sive. Mr. Winston said Char- Texas, to finalize convention
working with people across cial decisions, but there have 2000 presidential election and Mr. Epps said. lotte is also still rebuilding plans.

Jet Makers Airlines Group SA, said he is


“very disappointed with the
performance of Airbus.” He has
Suppliers to Boeing and Air-
bus have struggled to keep up.
Engine-production delays have
Pratt & Whitney said it held
back deliveries while it fixed de-
sign problems that were causing

Struggle on had to rent planes and operate


older, less efficient ones from
his fleet as he waits for his new
been among the most painful.
At one point this year, Airbus
had more than 100 nearly fin-
components to fail early. Pratt &
Whitney is now delivering as
planned, according to Airbus.

Deliveries jets to arrive.


CFM, which had fallen be-
ished planes waiting on the tar-
mac for their engines. In the
Airbus considered slowing
production while the engine
DANIEL BOCKWOLDT/DPA/ZUMA PRESS

hind on deliveries by as many first six months, the company makers recovered, but it feared
Continued from Page One as seven weeks, will be back on delivered 303 jetliners against a that could disrupt other parts
gines and wing components is schedule before the end of the full-year target of 800 deliver- makers, causing further delays,
now magnifying the strain. year, said Sébastien Imbourg, ies, mostly because of late en- said Airbus commercial plane
The result: Some airlines executive vice president for the gines. boss Guillaume Faury. Instead,
have been left waiting for engine maker. Airbus Chief Executive Tom it continued building planes, Mr.
months for new planes. That Boeing, too, has suffered de- Enders said this month that Faury said, gambling engine
has angered executives and, in lays on engines for its 737 Max meeting the full-year goal was makers would catch up.
some cases, stranded passen- planes, though it hasn’t yet held “doable” but “hard.” Boeing took a more conser-
gers. up deliveries of planes to cus- Boeing had delivered 378 vative view on the number of
Airbus is late delivering tomers. Both jet makers also Planes waited for engines at an Airbus site in Germany in June. planes at the midyear point engines its suppliers could de-
new, A321neo single-aisle jets have been hit by delays for against a full-year target of be- liver, according to company rep-
to Primera Air, a Scandinavian components used to make new 787 Dreamliner and Airbus Air Show. tween 810 and 815 planes. resentatives.
airline, because of a lack of wings and fuselages made by with the A380 superjumbos. But The record production pace Airbus has two engine sup- Spirit AeroSystems, the air-
engines made by CFM Inter- Spirit AeroSystems Holdings this time it is the scale of pro- is due in part to surging de- pliers for its A320neo family of craft fuselage and wing-parts
national, a joint venture of Inc., which fell behind because duction, rather than issues with mand for flights. This year is new single-aisle planes and both maker, started sending wing
General Electric Co. and Sa- of its own supply-chain prob- assembling new plane designs poised to be the ninth in a row have struggled. parts for Airbus’s long-range
fran SA. Primera has had to lems. that is hobbling the companies. of growth in passenger demand. CFM remains behind sched- A350 jets to its factory in Scot-
suspend plans for some of its “The suppliers are saying, Boeing, the No. 1 plane The International Air Transport ule, Airbus said. Safran Chief land via expensive airfreight, to
routes, including flights from ‘Houston, we have a problem, maker by deliveries, and No. 2 Association, a lobby group, fore- Executive Philippe Petitcolin has get them there in time, said
New York and Toronto to Bir- we need to slow down,’ ” said Airbus are on track this year to casts planes will carry 4.4 bil- blamed the delays on the joint Scott McLarty, Spirit’s vice
mingham, England. Eric Bernardini, the head of deliver more than 1,600 airlin- lion passengers this year, com- venture’s own supplier issues. president for the U.K. and Ma-
British Airways is waiting for aerospace at consultant Alix- ers in total, more than double pared with 2.7 billion in 2010. The company said it plans to laysia. After catching up, the
A320neo planes for the same Partners. the figure produced in 2000, Amid higher oil prices, airlines catch up this summer. parts now are again going by
reason: no engines. Willie Airlines have been left wait- and both are expected to add are also eager to update their Airbus also buys engines sea.
Walsh, chief executive of parent ing for planes before. Boeing hundreds more to their backlogs fleets to planes that burn less from Pratt & Whitney, a unit of —Andrew Tangel
International Consolidated was late with its then brand this week at the Farnborough gas. United Technologies Corp. 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, July 16, 2018 | A5

Beef and Dairy


Exports Boom!
Congratulations to America’s farmers and
food processors — beef and dairy exports
are up 16% !
As USDA Secretary Sonny Perdue says:
“Every $1 billion in exports
supports 8,000 American jobs.”

.
ly
EXPORT FOOD, NOT JOBS! on
us l,
al a
e
ci on

Sincerely,
er rs

DO RIGHT AND
m e

Anthony Pratt FEED EVERYONE


m rp

Executive Chairman, Pratt Industries


— Sonny Perdue
co Fo
n-
no

Pratt Industries is one of the largest corrugated box manufacturers in the United States.
Our boxes save money and save the environment.

www.prattindustries.com
* U.S. Census Bureau Harmonized System — District-level Export Data (May 2018)
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.

A6 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

WORLD NEWS
Israel Unveils Details of Iran Raid After Gaza
Flare-Up,
Agents broke into
warehouse to extract
documents related to
Clashes
Tehran nuclear program Die Down
BY GERALD F. SEIB BY FELICIA SCHWARTZ

TEL AVIV—Israeli agents co- TEL AVIV—Israel and Gaza


vertly extracted documents de- settled into an uneasy truce
tailing Iran’s nuclear program after their most intense fight-

ISRAELI GOVERNMENT
in a dramatic 6½-hour opera- ing since the 2014 war, re-
tion in Tehran in January, re- flecting pressure on Israeli
moving a trove of materials Prime Minister Benjamin Ne-
that included partial designs tanyahu’s government to find
for a nuclear warhead, senior a way to end Hamas’s cam-
Israeli intelligence officials said. Israeli Prime Minister Benjamin paign of attacks across the
The Israeli team secretly Netanyahu in April said the border.
reached the warehouse holding documents, one of which is Israel’s military struck doz-
the materials and broke in purportedly shown above, ens of Hamas targets in Gaza
when it knew the building proved Iran had lied for years during an air campaign on
would be unguarded, the offi- in claiming it didn’t have a Saturday that Mr. Netanyahu
JIM HOLLANDER/EPA/SHUTTERSTOCK

cials said. To avoid drawing at- nuclear-weapons program. said was “the hardest blow”
tention to the nondescript fa- dealt to Hamas since Israel’s
cility, Iran hadn’t posted full- forts on specific safes. ground war four years ago,
time guards, they said, but The officials said the stash which was in response to an
rather relied on alarm systems is enormous, running to some escalation of mortar and
that the Israeli agents disabled. 50,000 pages of printed mate- rocket fire from Gaza.
The Israeli operation was rial, plus 183 computer disks The Israeli military said the
revealed by Prime Minister with additional files. targets included a Hamas bat-
Benjamin Netanyahu at an Israeli officials acknowledge talion headquarters in the
April press conference in that the documents are dated; northern Gaza Strip, a series
which he declared that the graphs and PowerPoint presen- sponse to the new allegations: been shared with the IAEA. much of the activity they al- of military tunnels and an
stolen documents proved Iran tations that the Israeli officials “Iran has always been clear The Israeli officials said the legedly chronicle occurred be- abandoned Gaza City building
had lied for years in claiming said were taken directly from that creating indiscriminate seeds for the operation were fore 2003. That is when Iran it said was used as a training
it didn’t have a nuclear-weap- the Iranian files. The docu- weapons of mass destruction is planted when they received in- disclosed and appeared to halt facility for urban warfare.
ons program. ments track, and in some cases against what we stand for as a telligence in 2016 that Iran had much of its known nuclear re- The airstrikes came after an
In a lengthy briefing at a repeat, revelations and as- country and the notion that decided to consolidate and then search in the wake of the U.S. Israeli soldier was wounded by
security facility here last week, sumptions made previously by Iran would abandon any kind hide away documents detailing invasion of Iraq and President a grenade during border pro-

.
senior Israeli intelligence offi- the International Atomic Energy of sensitive information in its past nuclear activities, in George W. Bush’s designation tests on Friday and Gaza mili-

ly
cials disclosed additional de- Agency, but also provide specif- some random warehouse in the wake of its agreement with of Iran as part of an “axis of tants launched more than 200
tails about the operation. ics—including, for example, the the U.S. and five other world evil,” which led to speculation rockets and mortars into Is-
Those include specifics on how existence of an underground powers that stopped its ura- Iran might be next on the rael.
the documents were removed metallurgical testing facility— on nium-enrichment activities. Is- American hit list. Two Palestinians were killed
from Iran; the existence within
the documents of the warhead
designs, for which Israel said
Iran got unspecified foreign
about which international in-
spectors were unaware.
It is impossible to verify Is-
rael’s claims about the docu-
50,000
Pages of printed material the
rael tracked the movement of
the documents until January
2017, when they were moved
into the warehouse on the
Moreover, much of the ac-
tivity the documents chronicle
already was disclosed or sug-
gested in IAEA reports in 2011
by an Israeli airstrike and
three Israelis were wounded
by shelling from Gaza.
The back-and-forth ap-
us l,

assistance; the operation of a ments, which Iranian officials Israelis took, along with 183 disks southern outskirts of Tehran, and 2015. peared to calm down after
secret explosives-testing facil- dismissed in April as an “or- the officials said. But Israeli officials contend Hamas announced an Egypt-
al a
e
ity that international inspec- chestrated play” designed to Israel then began planning that the documents are signifi- mediated cease-fire. Although
tors had long searched for in turn the Trump administration to steal the trove. The officials cant in two respects: They Israeli officials wouldn’t admit
vain; and a scramble by Ira- against the agreement President Tehran is laughably absurd. It’s worried along the way that show that Iran’s weapons-re- to being party to such an
ci on

nian officials to keep their nu- Barack Obama and other world almost as if they are trying to Iran might again move them lated activities advanced fur- agreement, they said strikes in
clear program alive after inter- leaders negotiated to curb Iran’s see what outlandish claims to avoid discovery. ther than previously realized, Gaza would continue only if
national inspectors concluded nuclear activities. President they can get a Western audi- Upon entering the ware- the officials asserted, and that more provocations arose.
it had been suspended. Donald Trump pulled the U.S. ence to believe.” house, the Israeli agents found they substantiate previous sus- On Sunday afternoon, Israel
All those assertions go be- out of the accord in May. The Israelis said Mr. Trump two large containers housing picions that Iran shifted some said its aircraft targeted a
er rs

yond what Mr. Netanyahu dis- Alireza Miryousefi, a minis- was briefed on the materials in 32 safes, the officials said. Is- of those activities into new, Hamas squad in Gaza prepar-
closed in April, and in most ter-counselor at Iran’s United Washington early this year, and rael had intelligence steering disguised channels so they ing to launch arson attacks at
cases were buttressed by photo- Nations mission, said in re- that the documents now have the agents to focus their ef- could continue well after 2003. Israel.
m e
m rp
co Fo

RONEN ZVULUN/REUTERS

Redefining Global Connectivity


Airborne Wireless Network is in the development stage of
Israeli soldiers this month on the Israeli-occupied Golan Heights looking over the Syrian border.
building the worlds first airborne fully meshed communications
network by attempting to use commercial aircraft as mini
Tehran’s Proxy in Syria
n-

satellites with the goal of delivering a continuous data signal


around the globe. The company’s primary target customer-base
Comes Under Broad Attack
no

will be existing worldwide data and communications service


providers. Once developed, this technology could be able to Israel is ramping up attacks hundreds of miles from its has emerged as a main arbiter
against Iranian supply lines in borders was to signal that it of the Syrian conflict through
connect areas previously not able to receive broadband signals, Syria to block the flow of won’t tolerate Iranian at- its support, alongside Iran, of
potentially creating the possibility of connecting the entire globe. weapons to Hezbollah and tempts to establish a so-called Mr. Assad’s regime.
other Tehran-backed militias, land bridge running from Iran The Trump administration,
as it seeks to drive its foe through Iraq and Syria to Leb- meanwhile, has pledged to
anon, the official said. Israel withdraw U.S. troops from
By Sune Engel has said it is specifically con- Syria, possibly as early as this
Rasmussen in Beirut cerned with the spread of year. Yet Trump administration
and Felicia Schwartz long-range missiles and anti- officials also say one goal of
in Tel Aviv aircraft defense systems. the approximately 2,000 U.S.
Iran’s military and militias troops still stationed in Syria
away from its borders. it backs have established bases is to counter Iranian influence.
In June Israel targeted a across Iraq and Syria to help Israel considers it para-
far-flung compound near the fight Islamic State and groups mount to roll back Iran’s terri-
Cruise Ships Syria-Iraq border, according to opposing Mr. Assad, and its torial expansion before the
a security official, after carry- U.S. draws down its forces. Is-
ing out multiple strikes closer rael’s June strike so far to the
to home against suspected Ira- east indicated that urgency. In
nian military assets in Syria,
Last month’s airstrike previous bombings of pur-
where Iran is a key backer of showed Israel won’t ported Iranian assets over the
Disaster Areas Oil Platforms President Bashar al-Assad. past few years, Israel has al-
Israel, in accordance with its
tolerate a ‘land bridge’ most exclusively struck south-
usual practice, didn’t confirm or from Iran to Hezbollah. ern and central Syria.
deny it carried out the June air- Sheikh Abu Talib al-Saeedi,
strike. The U.S. denied responsi- a member of Kata’ib Hezbol-
bility, and a U.S. official con- lah’s political office, said the
firmed that Israel was behind it. ally Hezbollah is well-en- fighters were on Iraqi terri-
The strike—carried out in trenched in Lebanon. Israel tory when they were targeted
the dead of night on June 17— fears Tehran’s increasing terri- in the June strike. Iraqi Shiite
targeted a villa in the town of torial control will allow the Is- militia operating inside Syria
al-Hari south of Abu Kamal, lamic Republic to transfer mil- often deny these movements.
Rural Areas Island Nations the security official told The itary hardware and personnel Iraq said the forces hit
Wall Street Journal. Iraqi Shi- by road from Iran all the way weren’t operating under its
Airborne Wireless Network is working with the following ite militia were working there to Israel’s doorstep. command. The Kata’ib Hezbol-

   
     with Iran’s elite Islamic Revo- Israel’s strikes in Syria play lah militia officially answers to
GE Aviation, Air Lease Corporation, lutionary Guard Corps to traf- into a broader conflict unfold- the Iraqi government but is in
fic Iranian weapons into Syria, ing in the Middle East, where fact loyal to Iran.
Mynaric, Jet Midwest, Inflight Canada the official said. Islamic State’s collapse has ush- Syria and Iran didn’t imme-
The strike killed more than ered in a power struggle among diately respond to requests for
airbornewirelessnetwork.com 20 fighters from Kata’ib Hez- regional and foreign actors. comment on the June strike.
bollah, an Iraqi Shiite militia The war in Syria is ex- A land corridor through Iraq
Ticker: ABWN believed to transport weapons
for Iran through Iraq into Syria,
pected to be at the center of
talks between Presidents Don-
and Syria is a key goal for Iran
to bolster its defense against
according to security analysts. ald Trump and Vladimir Putin regional enemies, an IRGC offi-
The aim of Israel’s attack in Helsinki on Monday. Russia cial has told the Journal.
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, July 16, 2018 | A7

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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.

A8 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

WORLD NEWS

Hard-Liners Challenge Brexit Plan U.K.’s May: Trump


BY WILL HORNER

LONDON—The future of
Advised Suing EU
Prime Minister Theresa May’s
Brexit plan hangs on a small
group of hard-liners in her Con-
servative Party devoted to end-
To Gain Leverage
ing the influence of the Euro- BY JASON DOUGLAS Conservatives over just how
pean Union in the U.K. close those links should be.
The group represents one LONDON—U.K. Prime Min- Mrs. May has sought to
side of a Conservative Party ister Theresa May revealed the unite warring factions of her
split over Europe that has en- secret advice she received government behind a compro-
dured since Margaret from President Donald Trump mise plan for a U.K.-EU free-
Thatcher’s days and deepened on how to handle Brexit talks: trade area with uniform regu-
since the June 2016 referendum He suggested the U.K. sue the lations for goods, including
vote to leave the EU. European Union. food, effectively set by the EU.
The lawmakers say Mrs. At a joint news conference This would speed movement
CHRIS RATCLIFFE/BLOOMBERG NEWS

May’s plan to keep the U.K. with the U.K. leader on Friday, of goods between Britain and
aligned closely with the EU af- Mr. Trump referred to a the bloc while preserving Brit-
ter Brexit—a “soft” Brexit sup- “tough” and “brutal” negotiat- ish autonomy over regulation
ported by pro-EU Conservative ing ploy he had suggested Mrs. for many services, including
lawmakers and aimed at keep- May try in her discussions with financial services—a key goal.
ing European trade flowing— Brussels over the terms of Brit- The proposals led to the
would give Brussels too much ain’s planned exit from the EU. resignations of two senior
say over British law and pre- He didn’t say exactly what members of her cabinet, Boris
vent the U.K. from striking he offered but said Mrs. May Johnson and David Davis, hard-
trade deals elsewhere. From left, former Foreign Secretary Boris Johnson, EU secretary David Davis and Defense Secretary didn’t follow it. line Brexit backers.
They are setting plans to dis- Gavin Williamson. Messrs. Johnson and Davis resigned last week over Mrs. May’s Brexit policies. In a Sunday interview with Mrs. May has argued that
rupt Mrs. May’s proposals, the British Broadcasting Corp., her new proposals would give
posting amendments to bills arithmetic, however, also makes Mrs. May was asked what Mr. the U.K. a free hand to negoti-
crucial to Mrs. May’s vision that Prime Target it risky for euroskeptics. Trump’s suggestion was. ate free-trade accords with
could be voted on as soon as How Conservative members of parliament could replace Theresa May Under one scenario, Parlia- “He told me I should sue other countries. Mr. Trump
this week. The amendments— ment’s rejection of Mrs. May’s the EU,” she said. appeared to pour cold water
which would scuttle the govern- Trigger a no- Hold a leadership contest deal could leave Britain crash- Talks between London and on that idea during in an in-
confidence vote = 1 Tory seat
ment’s idea for post-Brexit cus- ing out of the EU without any Brussels are stuck in the slow terview with a British newspa-
Candidates must be
toms arrangements with the 48 Conservative proposed and seconded accord in March 2019, some- lane more than two years after per on Thursday, though he
EU, among other things—are MPs must write in writing thing U.K. businesses say would the U.K. voted to leave the bloc later expressed support.
unlikely to pass. But they are an letters to the head be catastrophic. in a referendum. Mrs. May’s Brexit strategy
of their group If there are more than three
effort to gauge support for their declaring they have candidates, Conservative
Another possibility is that The U.K.’s exit is penciled in will this week face fresh tests in
position, including from the op- no confidence in MPs vote in multiple the prospect of crashing out for March 2019, yet the outline Parliament, where pro- and anti-
position Labour Party, said Bill their leader to rounds, with the one forces the government to re- of the U.K.’s future economic Brexit lawmakers are poised to
Cash, a pro-Brexit Conservative trigger a vote. gathering the least quest from the EU an extension ties to the EU have yet to be try to alter aspects of the gov-
lawmaker said. Labour lawmak- 50% votes dropping out, until of the two-year Brexit negotiat- agreed, in large part a conse- ernment’s plan. Mrs. May on

.
there are two candidates left
ers are also split over Brexit. Win the ing period beyond Britain’s quence of internal disagree- Sunday appealed to fellow Con-

ly
If the prime minister doesn’t no-confidence vote All party members get to planned March 2019 departure ment within Mrs. May’s ruling servatives to get behind her.
change her plan before October, A no-confidence vote on the remaining from the bloc. That request,
when key legislation is expected, vote needs a two candidates which would need the agree-
some lawmakers say they will simple majority of on ment of the other 27 EU coun-
all Conservative The new leader would
unite with opposition parties to become the new Prime tries, could raise the chances
MPs (159 votes)
vote it down, setting up an un- to pass Minister and would that Brexit never happens.
predictable chain of events. not be obliged to call Mrs. May’s weakness in Par-
Mrs. May’s position is pre- Total seats 316 an early election liament thus makes some rebels
us l,

carious. Her party doesn’t have nervous.


a majority in the House of Com- Source: House of Commons THE WALL STREET JOURNAL. “Whilst I am dissatisfied with
al a
e
mons and depends on a small what the prime minister has
Northern Irish party to govern. tics at Queen Mary University can’t be any alternative inter- agreed in terms of a negotiating
If even a few of her lawmakers of London, said the amend- pretation.” position we do need somebody
ci on

JEFF OVERS/BBC/REUTERS
defect, she can’t guarantee that ments were aimed at disrupting One big complication for negotiating,” said Henry Smith,
legislation will pass. The resig- Mrs. May’s plans. Mrs. May is that the EU may re- a euroskeptic Conservative law-
nation of two cabinet ministers “Either they are trying to ject her proposals. If she makes maker. “I think that if we are
and a handful of junior minis- force her to harden things up or more concessions to get a deal distracted by an internal leader-
ters last week over the details they are wrecking. They are de- with Brussels, the number of ship election that is probably
er rs

of her Brexit plan raises the signed almost to blow the Conservatives who will vote doing the country a disservice.”
chance of more defections. whole thing up and force her against her plans will swell. —Jenny Gross
Tim Bale, professor of poli- resignation,” he said. “There The difficult parliamentary contributed to this article. Mrs. May has sought to unite warring factions of her government.
m e
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Government Melts Over


270 Million Silver Dollars
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But collectors get an unexpected second chance

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aid to the British
during WWI, the U.S.
government melted down
nearly half of the entire
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mintage—over 270 million


silver dollars.
Morgan Silver Dollars were the
engine of the American dream for
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decades. Created by famed American Actual size


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THE WALL STREET JOURNAL. * * * * * * Monday, July 16, 2018 | A9

WORLD NEWS

U.S., Russia Bolster Their Military Ties


Strengthened links than his predecessor Barack ian air base last year following
Obama, and military-to-mili- a chemical-weapons attack by
show Kremlin’s success tary communication has the Assad regime, U.S. military
in re-establishing gained greater importance, es- officials said they notified the
pecially as Washington and Russians around 30 minutes
Washington dialogue Moscow navigate the crowded before the strikes to ensure
skies above Syria. U.S. military Russian personnel moved out
BY THOMAS GROVE officials view these contacts as of harm’s way.

DOMINIQUE A. PINEIRO/U.S. DEPARTMENT OF DEFENSE/LEHTIKUVA/REUTERS


AND GORDON LUBOLD necessary “connective tissue” The military dialogue be-
for crisis situations. tween Moscow and Washing-
Top U.S. and Russian mili- Anton Lavrov, who has ton could narrow considerably
tary officers have strength- written about deconfliction for if the U.S. pulls its troops out
ened contacts under the Washington-based security of Syria, as Mr. Trump has
Trump administration, under- think tank CSIS, said Moscow’s suggested it do. The possibil-
scoring Moscow’s success in first diplomatic victory in ity of expanding the deconflic-
using military links to re-es- Syria was forcing communica- tion line outside of Syria
tablish dialogue with Washing- tion lines to reopen with seems unlikely, experts said.
ton despite deteriorating po- Washington, and under the The Russian and U.S. mili-
litical ties. Trump administration those taries find themselves in close
The contacts, which have links have flourished. proximity in the Baltic and
existed outside political cur- “Instead of Obama’s push Black seas, where the U.S. mil-
rents that define U.S.-Russian for the political isolation of itary operates in international
ties, have provided an increas- Russia, now Syria is a topic of waters and airspace.
ingly important mainstay of priority for discussions be- The U.S. might want to ex-
communication between the tween our countries at the top pand the deconfliction line to
countries following mutual level, including the presidents’ include such areas, but Eugene
diplomatic expulsions. upcoming meeting,” he said. Rumer, director of the Russia-
A summit this week be- Personal relationships have Gen. Joe Dunford, chairman of the Joint Chiefs of Staff, and Russian Gen. Valery Gerasimov in June Eurasia program at the Carne-
tween U.S. President Donald formed around the contacts. gie Endowment for Interna-
Trump and his Russian coun- The chairman of the Joint around a deconfliction line nel-to-colonel” level in which cussion is kicked up to a higher tional Peace, said he didn’t
terpart, Vladimir Putin, is ex- Chiefs of Staff, Gen. Joe Dun- started between Moscow and an American colonel speaks to level in which an American think Moscow would have an
pected to further discuss tac- ford, and his Russian counter- Washington in 2015, shortly his or her Russian counterpart three-star general, typically at interest in doing so.
tics in Syria that have been part, Valery Gerasimov, in June after Russia’s intervention in as many as a dozen times a the Pentagon, speaks with his “I think the United States
largely dominated by the Rus- met for the third time in Hel- the country, for U.S. and Rus- day in tactical-level discussions Russian counterpart over oper- would be interested in it, but
sian and U.S. militaries. sinki, the location of Monday’s sian operations that supported to ensure both countries’ mili- ational issues, to avoid conflict I’m skeptical that the Russians
Mr. Trump has leaned more Trump-Putin summit. opposing sides in Syria. taries steer clear of each other. and mitigate the risk of miscal- would agree to it, because they
heavily on his generals for for- The bulk of military-to-mili- The line operates at a num- At other times and with culation, officials said. consider those areas to be close
mulation of foreign policy tary contacts currently revolve ber of points including a “colo- much less frequency, the dis- When the U.S. struck a Syr- to their critical assets,” he said.

Trump Sets to ask questions about the


other’s nuclear doctrine and

.
military programs with the

Low Bar

ly
aim of reducing the risk of
miscalculation that could lead
to war.

For Summit Mr. Trump’s team tried on


on Sunday to tamp down any
sense that Mr. Trump would
Continued from Page One emerge with tangible conces-
mir Putin needs to be: tell us sions. “We’re not looking for
us l,

which airport we can pick up concrete deliverables here,”


the 25 Russians that tried to national security adviser John
al a
e
interfere with the fundamen- Bolton said on ABC.
tals of our democracy,” Mr. Administrations have tradi-
Gowdy said. tionally sought to lower expec-
ci on

Sen. Chuck Schumer of New tations before high-level diplo-


York, the Democratic leader, matic meetings to magnify any
said he had told Secretary of achievements and lessen the
State Mike Pompeo that Mr. criticism if there are none.
Trump should press Mr. Putin For Mr. Putin, the summit
er rs

MARTIN MEISSNER/ASSOCIATED PRESS

“hard” on the issue of election itself is an accomplishment.


interference and shouldn’t The Russian leader has long
agree to weaken any sanctions sought to be treated as an
against Russia. equal partner, especially after
m e

Mr. Trump said in an inter- the invasion of Ukraine, and


view on CBS, parts of which to demonstrate his nation’s
aired Sunday, that he might importance on the interna-
m rp

ask Mr. Putin to extradite the tional stage.


Russian officials charged by “The fact that President
Mr. Mueller. Trump is willing to sit down
“I hadn’t thought of that,” President Putin, center left, joined other leaders to congratulate French players on their World Cup win over Croatia in Moscow Sunday. with Putin and is likely to say
Mr. Trump said. “But I cer- positive things about him, is
co Fo

tainly, I’ll be asking about it.” a great achievement for


Russia has denied interfer- Talks Could Touch Syrian President Bashar al-Assad’s that are deployed. The treaty can year’s presidential election in Vladimir Putin,” said Michael
ing in the election. continued rule isn’t a “strategic is- be extended for up to five years Ukraine. Some NATO members McFaul, who served as am-
The summit will be Presi- On Range of Issues sue” for the U.S. Observers say without Senate approval if the worry that Mr. Trump may yield bassador to Russia under for-
dent Trump’s first extensive that points to a potential trade-off two presidents agree. to some Russian demands. mer President Barack Obama.
one-on-one meeting with a Negotiations on Syria, arms in which Iran’s military presence Supporters say that would be Election meddling “It means that the process of
leader he described last week control, Ukraine may advance would be scaled back while Wash- a sound move as no new negotia- Mr. Trump said he would normalization is happening
as a “competitor” and poten- ington would accept a Russian tions to make further cuts are un- raise the issue of Russia’s elec- and [Putin] has had to do ab-
tial friend. North Atlantic role in Syria and tacitly agree that der way and keeping the New tion hacking with Mr. Putin. But solutely nothing to achieve
Treaty Organization members President Donald Trump Mr. Assad could remain in power. START treaty would allow inspec- Mr. Trump said previously that that.”
generally see Mr. Putin as a plans to talk about a number of But some experts say Mr. tions and other forms of verifica- he believed the Russian leader Russia also has more specific
foe who can undermine the topics when he meets on Mon- Assad is too dependent on Iranian tion to continue. was sincere when he said he goals. For one, Mr. Putin wants
alliance. day with Russian President forces for such a deal to work. Ukraine wasn’t responsible. Last week, NATO to halt military exercises
Helsinki provides another Vladimir Putin. Arms control Diplomatic efforts to reverse he suggested to reporters that near its border. Mr. Trump said
n-

opportunity to test Mr. Syria A pressing question is Russia’s intervention in eastern he wouldn’t press too hard. Thursday that he might be
Trump’s highly personal and National-security adviser whether to extend the New Ukraine and implement the “He may deny it,” Mr. Trump open to that discussion. Russia
freewheeling style of diplo- John Bolton has said Mr. Trump START treaty, which took effect in Minsk-2 agreement to resolve the said. “I mean, it’s one of those also wants the withdrawal of
macy, following his meeting wants to discuss how Russia 2011 and is due to expire in 2021. conflict there have made little things. All I can do is say, ‘Did U.S. troops and antimissile de-
no

with North Korean leader Kim can help “get Iranian forces out The pact sets a limit of 1,550 headway. Many observers believe you?’ and ‘Don’t do it again.’ ” fenses from Europe.
Jong Un in Singapore last of Syria” and has stressed that strategic warheads and bombs Mr. Putin is waiting until next —Alan Cullison Part of Mr. Trump’s meet-
month. ing with Mr. Putin will be pri-
Mr. Trump believes his vate. Mr. Trump has been re-
ability to build a personal re- gagement?” said Thomas Gra- will include Syria, where the Trump said Friday that nu- START treaty, which expires in luctant to include a note taker
lationship could yield bene- ham, a former U.S. diplomat White House has signaled it clear weapons are the “biggest 2021, and U.S. allegations that because he is wary of leaks,
fits on arms control, Syria who served in Russia and is will seek Russia’s help in scal- problem in the world.” But Russia violated the 1987 treaty said a foreign official briefed
and other issues, but critics now a managing director at ing back Iran’s role, and this summit hasn’t been pre- on intermediate-range nuclear on the plans. The two leaders
worry that Mr. Putin may get Kissinger Associates Inc. “I Ukraine, where efforts to per- ceded by the months of lower- forces, Mr. Trump indicated. will then be joined by senior
the upper hand in the one-on- think it is going to continue to suade Moscow to reverse its level negotiating sessions that The two sides could also re- officials on both sides, fol-
one talks. be a very troubled relation- occupation of Crimea and in- have preceded breakthroughs vive the “strategic stability” lowed by a news conference.
“It is clear that the U.S. is ship.” tervention in eastern Ukraine on nuclear issues before. talks that Russia broke off ear- —Ann M. Simmons
now engaging Russia, but The agenda includes an ar- have failed. Arms control is The two leaders will discuss lier this year. These discus- and Vivian Salama
what is the quality of that en- ray of vexing issues. The talks also up for discussion. Mr. whether to extend the New sions give each side a chance contributed to this article.

WORLD WATCH
CHINA ernment services grew violent.
Nicaragua Paramilitaries Attack Protesters
The protests were fueled by BY ROBBIE WHELAN been in power since 2007, hav-
Debt Cleanup Comes dissatisfaction with corruption, AND DAVID LUHNOW ing previously been in power
With Economic Cost which helped populist cleric Mo- during the 1980s.
qtada al-Sadr record an upset vic- MEXICO CITY—Nicaragua’s At least 25 have died since
China’s economic expansion tory in May’s national elections. embattled President Daniel Or- Tuesday, as police, working in
slowed a notch in the second —Isabel Coles tega moved to tighten his grip coordination with armed
quarter, as a government debt and Ghassan Adnan on power, as paramilitary gangs, attacked barricades set
cleanup took its toll even before forces loyal to his government up by students on the sprawl-
growth takes an expected hit PAKISTAN attacked antigovernment pro- ing campus of the National
RODRIGO SURA/EFE/ZUMA PRESS

from the trade fight with the U.S. testers at several key points Autonomous University in Ma-
The economy grew 6.7% in the Charges Filed Against over the weekend, killing an nagua, according to local news
second quarter from a year earlier, Ex-Premier’s Party estimated 11 people. reports, human-rights groups
down from 6.8% in the quarter be- As many as eight people and Catholic church leaders.
fore that, the government’s statis- Pakistani authorities have died on Sunday as masked On Friday, two students
tics bureau reported Monday. For opened a criminal investigation gunmen attacked opposition were killed and 15 badly in-
the first half of 2018, the econ- into leaders of jailed former barricades in two provinces, jured in a coordinated attack
omy grew 6.8% from a year earlier. Prime Minister Nawaz Sharif’s according to the Nicaragua on the university, sending stu-
—Chao Deng political party under an antiter- Human Rights Association, a Protestors rallying with a sign ‘Do not kill’ in Managua on Saturday. dents fleeing to a nearby
rorism law, 10 days before a local human- rights group that church, where another student
IRAQ hotly contested general election, has been tracking violence the government descended on killed roughly 300 people, died.
according to police documents. during three months of oppo- several towns. Many of the mostly unarmed protesters, The armed attackers pre-
Army Seeks to Curb The case relates to a march sition protests. men wore black ski masks and and shaken Mr. Ortega’s hold vented ambulances from
Protests in the South by the Pakistan Muslim League- Among the dead was a 10- some wore military-style fa- on power. reaching the church to treat
Nawaz on July 13, when Mr. year-old girl, the group said. tigues. Mr. Ortega’s government the wounded until Saturday
Iraqi authorities deployed Sharif returned to Pakistan, which “It was butchery,” said Al- The actions appear aimed has described the protests as morning. Two journalists were
troops across the country’s south defied a ban on holding public ral- varo Leiva, the group’s spokes- at clearing out opposition an undemocratic effort to dis- also trapped at the church, in-
and blocked access to the inter- lies on a Friday. man, describing how armed strongholds after nearly three lodge him from power before cluding a reporter from The
net as protests over poor gov- —Reuters groups believed to be linked to months of protests that have his term ends in 2022. He has Washington Post.
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, July 16, 2018 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Monday, July 16, 2018 | A11

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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.

A12 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

IN DEPTH

Lawn-Care self the Lawn Care Nut. Mr.


Hane, whose video “How to
Dominate Your Neighbor’s
It’s already fine.”
“I sit 8 to 10 hours a day at
a computer and think back

Fanatics Lawn” has had more than two


million views on YouTube, ex-
horts his followers to “mow
what did I accomplish today
and sometimes it’s hard to
think of anything,” said Mr.

Go Extreme taller” than their neighbors,


leaving their grass about an
inch above the competition.
Ford. “When I get home it’s
nice to use a different part of
my brain and see measurable,
Continued from Page One “It’s the same reason why tall tangible results.”
thing they pay somebody else people stand out in a crowd,” Lawn care is “kind of like a
to do. For others, it’s a chal- he says in the video. stress-reduction thing,” said
lenge. They tend to want their Geoffrey Lokuta, a biologist David Tirpak, a psychologist
lawns to be a dark, emerald who lives in Lakeland, Fla., and career counselor who lives
green and preferably striped values Mr. Hane’s mowing in Sykesville, Md. For lawn
like a baseball field, an effect tips but said he isn’t on a geeks like him, the attractions
achieved by attaching a roller quest for neighborhood domi- also include spending time
behind the mower. Edges must nation. In any case, there isn’t outdoors and meeting their
be perfectly squared. The job much competition. “People (often envious) neighbors.
isn’t finished until the last around me have what you Growing up in a Brooklyn
weed is plucked and the final would call salad bars,” 50% apartment, Oktay Mustafayev

FERGUSON FAMILY
blade of grass blasted off the grass and 50% weeds, he said. had little early exposure to
sidewalk. “I just let them do their thing.” lawn care. Then he moved to
“Yes, I am a fanatic,” said Not so for Danny Freemyer, Fair Lawn, N.J. Mr. Musta-
Brad Ferguson, a postdoctoral who in June won the Yard of fayev, a nurse whose family
fellow at the University of the Month award in Forney, Brad Ferguson with his wife, Heather, and 10-month-old son, Grant, on his lawn in Columbia, Mo. immigrated from Azerbaijan,
Missouri’s medical school in Texas. “I was super-excited soon decided that having
Columbia, Mo. He admits to about it,” said Mr. Freemyer, handiwork and “a little neu- lingering a bit longer than sensitive topic. “My wife merely a fair lawn wasn’t
having slipped outside with a an electrician who moved to rotic,” his wife said. necessary on his lawn for a would probably tell you 100,” enough. He began taking You-
flashlight at 2 or 3 a.m. to the Dallas suburb five years For instance, the couple’s group picture. Afterward, he he said. “Realistically, it’s no Tube tutorials and raising his
check whether recently ago. “That was my plan when children are allowed to play in used a leaf blower to fluff the more than 10 to 12.” game.
planted grass seeds were I first moved in, to get Yard of the yard but “they have to grass back up. Taylor Ford, a financial When he mows, Mr. Musta-
starting to sprout. the Month, and I don’t think move around” rather than Eric Cozart of Coldwater, planner in Mesa, Ariz., consid- fayev passes over the entire
Dr. Ferguson’s routine in- they were even doing Yard of standing in one place, Ms. Se- Mich., who sells industrial ers himself only moder- surface twice to ensure an
cludes sharpening blades, the Month at that time.” gro said. Blowup pools are for- plastics, opposes any tram- ately obsessive about his lawn. even cut. If one or two blades
pressure washing and tuning Dominick Segro, a police bidden because they would pling of his manicured front Even so, while at work or on of grass exceed the desired
up his John Deere lawn trac- officer who lives in Spring- mat the grass. The dog is al- lawn but is willing to compro- the road, he sometimes uses a height, he yanks them out like
tor. “I do all the maintenance field, N.J., often mows two or lowed to relieve itself only in a mise: He lets his toddler son cellphone app that connects rogue eyebrow hairs. “I like
myself,” he said. “I don’t let three times a week. “I think designated spot at one side of romp in the back. “I’ve with his home security cam- uniformity,” Mr. Mustafayev
anyone else touch it.” it’s great,” said his wife, the house. ceded ground to my child in eras so he can make sure his said. He dreads autumn, the
Many of these yard masters Tara. “We definitely have the When the Segros had a Fa- the backyard,” Mr. Cozart said. lawn-irrigation system is end of his growing season:
are disciples of Allyn Hane, an best lawn in town.” Officer ther’s Day party, some of the How many hours he devotes working. His wife sometimes “That last mow, that’s pretty
internet guru who dubs him- Segro is protective of his guests taunted Mr. Segro by to the lawn per week can be a asks, “Why are you mowing? heartbreaking.”

Innovation many, respectively.


At the U.K.’s Manufacturing

.
Technology Centre in Coventry,

Seen at Big

ly
England, Dean Baker leads a
group of experienced former en-
gineers who offer tips to small

Companies and midsize firms on how to


on improve their manufacturing
processes. They also try to de-
Continued from Page One mystify the latest technology,
standards, and any gap between such as 3-D printing, robotics
us l,

top companies and the rest can and machine learning, which
exacerbate income and wealth can appear daunting. They ar-
al a
e
disparities. gue that the cost of using such
So what is going wrong with innovations is falling.
the spread of innovation? “It’s to show that these
ci on

In the tiny town of Gullrin- things can be used by everyday


gen, Sweden, one of the world’s companies,” says Mr. Baker.
largest construction firms, A big chunk of productivity
ANDERS ANDERSSON FOR THE WALL STREET JOURNAL

Skanska AB, has a partnership growth comes from automation,


with furniture behemoth IKEA but some economists warn it is
er rs

that has brought innovative a double-edged sword. While


ideas to the construction of af- some companies become more
fordable houses. The venture, productive by substituting ma-
called BoKlok, relies heavily on chines for laborers, there is no
m e

robots to build ready-made guarantee that the displaced


rooms inside a factory. Later, on workers will find a job that is
construction sites throughout equally productive.
m rp

Northern Europe, the rooms are “In the standard economy


put together like Lego houses. model, when one industry de-
Skanska says the process cut clines, all the workers and ma-
in half, to nine months, the time chines can be redeployed to
it takes to erect and furnish a more productive activities,” says
co Fo

four-story apartment building— A worker builds housing modules at Sweden’s BoKlok, formed by Skanska AB, the world’s largest construction firm, and furniture giant IKEA. University of Cambridge profes-
right down to the clothes hang- sor Ha-Joon Chang. “But in real-
ers in the wardrobes—and re- ity’s innovative prowess. Most ity, it doesn’t work like that.”
duced costs by 35%. The
Gullringen facility churns out
theories don’t seem to explain
the whole puzzle. Innovation Problem
1,200 affordable houses a year Researchers now are zeroing A breakdown in the spread of new technology and
Employment shift
and is poised to increase capac- in on diffusion. According to Globalization made it easier
ity by 50%. data on advanced economies ideas helps explain a slowdown in productivity growth. to automate sectors that pro-
The project shows how big from the Organization for Eco- duce goods and services that
The gap between the world's most productive ...a phenomenon that is contributing to a slowdown
firms can exploit economies of nomic Cooperation and Devel- can be traded around the world,
companies and their rivals is widening... in productivity growth across the developed world...
scale offered by new technology opment, the most productive 5% but this means those sectors
and global markets. Companies of manufacturers increased Productivity growth since 2001* Year-over-year growth in labor productivity† now employ far fewer people
with more orders can better their productivity by 33% be- 50% 5%
than they did 40 years ago. Re-
shoulder upfront investments tween 2001 and 2013, while pro- 5% most cent research finds that the re-
n-

because each new unit produced ductivity leaders in services productive sult may be a shift in employ-
40 service firms 4
will be less expensive. boosted theirs by 44%. ment toward lower-productivity
“Now we are aiming at in- Over that period, all other 30 5% most jobs such as delivering fast food
creasing our level of automation manufacturers managed to im- productive 3 by bike or cleaning offices—
no

20 manufacturers
significantly, when we really prove productivity by only 7%, much harder tasks to automate.
know the demand from the while other service providers All other 2 Paul Pritchard is a manager
market and have the volumes to recorded only a 5% increase. 10 manufacturers of Abacus Consultancy, an ac-
pay for it,” says Jerker Lessing, “The laggards are increas- All other 1 counting firm that employs six
0
BoKlok’s director of research ingly falling behind,” says Dan service firms Europe people in London. He is passion-
and development. “We benefit Andrews, the economist who –10 0 U.S. ate about the latest technology
from Skanska being a global led the OECD’s research. and has set up a platform that
company.” The bifurcation of the global 2001 ’03 ’05 ’07 ’09 ’11 ’13 1880 1900 ’20 ’40 ’60 ’80 2000 allows his clients to manage
economy has pocketbook conse- ...with big disparities in productivity between major economies. their finances remotely.
quences for workers. The Na- His competition is auditing
Factory shutdown tional Bureau of Economic Re- Gross domestic product per hour worked, 2016** giant PricewaterhouseCoopers
Three hours away, in the search found that nearly all of U.S. 63.3% LLP, which recently developed a
town of Hallstahammar, a the increase in wage inequality software tool that can scour
France 59.9%
smaller Swedish construction in the U.S. since 1978 stems thousands of pages of legal con-
firm focused on the domestic from pay disparity between Germany 59.9% tracts in minutes. It allows one
market also tried to industrial- workers at different companies. Canada 49.0% client media company to review
ize production a few years ago. Pay gaps within companies re- U.K. 47.9% contracts related to media
The company, NCC AB, couldn’t mained mostly unchanged. Italy 47.6% rights 30 times faster than do-
make it work, and the factory The productivity disparity Japan 41.6% ing it manually, and at one-
was shut down. dates back to before the finan- eighth of the cost, says PwC’s
* Services sector excludes finance; data for 24 OECD countries
“It is difficult to have hous- cial crisis. The McKinsey Global † Adjusted to smooth the effects of economic cycles
forensic technology partner
ing factories or other solutions Institute, the research arm of a **In 2010 U.S. dollars, adjusting for effect of exchange rates on purchasing power Craig McKeown.
with high fixed ongoing costs U.S. consulting company, found Sources: OECD (firm productivity, GDP); Bergeaud, A., By developing the technology
when the market fluctuates as it that one-quarter of U.S. produc- Cette, G. and Lecat, R. (U.S. and European productivity) THE WALL STREET JOURNAL. itself, PwC reaps all the produc-
does in Sweden,” says Made- tivity growth between 1995 and tivity gains. Abacus Consulting
leine Nobs, business-develop- 2000 was driven by retailers, biggest. Globalization allowed Patents Office between 2011 and nationals—and the laggards has access to a similar tool, but
ment manager. NCC says it now with almost one-sixth of that by them to grow bigger, while giv- 2016, official data show. need to catch up. According to it has to pay another software
focuses on standardized design a single company, Walmart Inc. ing some specialized niche firms Scale makes it possible to ex- the World Management Survey, company to use it, reducing its
processes that optimize costs Smaller rivals were left in its a big enough market to succeed. periment with advanced tech- smaller firms are consistently productivity gain.
without the need for a factory. wake, if they survived at all. For digital titans such as Am- nology that is out of reach for worse run and are responsible Building the software
Since the 2008 financial cri- azon, Google parent Alphabet many companies. A separate for most differences in manage- “wouldn’t be viable for a small
sis, U.S. productivity has grown Inc. and Facebook Inc., the ben- McKinsey Global Institute re- ment across countries. business like mine, as the costs
by about 1.2% a year. That is Online competition efits of scale are substantial. port, published in April, found There is a “lack of self- would be too high for develop-
half the rate it clocked in the These days, retailers are un- Not only are their customers early adopters of artificial intel- awareness among lots of firms,” ment and we wouldn’t be able
1970s and around one-third of der threat from online competi- not limited by geography, but ligence may already have gained says John Van Reenen, profes- to offer the same security as
what it was in the decades after tors such as Amazon.com Inc., whenever more sellers sign up “an insurmountable advantage” sor of economics at the Massa- larger providers can,” says Mr.
World War II, once adjusted to spurring a new productivity in Amazon’s platform or more in earnings over competitors chusetts Institute of Technol- Pritchard.
strip out the temporary effects race at the top. In May, Kroger users join Facebook’s social net- who have yet to take the plunge. ogy. “Some think they are Jürgen Maier, chief executive
of economic booms and busts. Co., the largest U.S. grocery work, the service they offer gets Gains at the top have been awesome. But they are actually of the U.K. arm of Siemens AG,
Japan and Europe—especially chain, increased its stake in more valuable for everyone else. the key driver of productivity doing pretty badly.” says reviving diffusion is in the
the U.K. and Italy—have fared tech-heavy British grocer Ocado Another advantage: Re- since the days of the industrial Some public and private ef- interests of the biggest, most
even worse. Group PLC. Within three years, searchers have found that big- revolution, and the whole econ- forts to reverse this are taking productive companies, because
Researchers have blamed the Kroger will be able to use Oc- ger firms are better at protect- omy benefited. What is different place in Britain, where produc- many laggards are their suppli-
productivity slowdown on a ado’s robots to run 20 auto- ing their technological now? tivity has become a political hot ers. “If we get our supply chains
range of factors including ul- mated warehouses, the com- advantages by patenting them. Some economists say it could potato after a decade of poor more productive, more agile,
tralow interest rates, mismea- pany said. Only 25 companies accounted be that good managers have growth. Output per hour delivering in time, that’s good
surement of output in a digital Data show the most produc- for half of all tech-related pat- flocked to top firms—enticed by worked there is 23% and 26% for everybody in the ecosys-
world and a decline in human- tive companies are usually the ents filed with the European the larger pay offered by multi- lower than in the U.S. and Ger- tem,” Mr. Maier says.
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, July 16, 2018 | A12A

GREATER NEW YORK


Suit Raises Thorny Real-Estate Issue
BY JOSH BARBANEL cuses her agent’s firm, Houli- “Houlihan Lawrence is confi- issue in real-estate transac- in-house transactions. Accord- seller’s agent—who Mr. Cezim-
han Lawrence, a large real- dent in its business practices,” tions known as “dual agency,” ing to the suit, the company bra was supposed to be nego-
Pamela Goldstein was under estate brokerage firm north of the spokeswoman said. when the same brokerage firm, provides less information than tiating against—“was not only
pressure. A four-bedroom New York City, of systemati- Houlihan Lawrence has more and sometimes the same agent, other brokerages on the risks his boss, but also his brother-
white colonial house in White cally maneuvering to repre- than 1,300 agents in 30 offices represents both buyer and of dual agency, delays discuss- in-law.” She said Mr. Cezimbra
Plains had just gone on the sent both the buyer and seller in Westchester and northern seller. These arrangements cre- ing the issue with clients, and contacted her after she had
market and she wanted it. in the same transaction, creat- ate a conflict of interest that relies on preprinted versions called the listing agent at
The agent who showed her ing conflicts of interest. can compromise the commit- of the state disclosure forms, Houlihan Lawrence.
the house with a red front door The lawsuit said this “pred- ments that agents usually offer with boxes checked rather than Mr. Cezimbra’s brother-in-
and a two-car garage in an at- atory behavior” violated both
In ‘dual agency,’ the to clients, a duty of “undivided letting clients fill them out. law wasn’t available for com-
tached wing advised her that the spirit and the letter of New same brokerage loyalty, confidentiality, and full The lawsuit claims that last ment.
there were other offers on the York state law. The suit, filed disclosure,” under New York year Houlihan represented But Mr. Cezimbra said he
home. She had better act fast over the weekend in state Su-
represents both buyer law. But these conflicts are per- both the buyer and seller in worked “solely” on Ms. Gold-
and bid over the asking price, preme Court in Westchester and seller. mitted—if agents discuss the nine out of 10 of Houlihan Law- stein’s behalf in a difficult,
he told her, she recalled later. County by law firm Boies limitations of the arrangement rence’s biggest home sales in high-pressure situation and
Later she learned that her Schiller Flexner LLP, de- with clients, who are asked to Westchester County, a sales to- worked to protect her inter-
agent, Daniel Cezimbra, was manded Houlihan return hun- sign a state form acknowledg- tal of more than $47 million. In ests in the bidding war, in
part of a team headed up by dreds of commissions paid New York suburbs as well as ing that they were aware of the Bronxville in Westchester, 48 which at least three other of-
his brother-in-law, who had when it represented both the Fairfield County, Conn. Last dual representation. out of 75 Houlihan sales were fers were made.
listed the house on behalf of buyer and the seller since 2011. year Berkshire Hathaway Inc.’s The suit alleges that Houli- dual-agency deals, including “She was well represented,”
the seller. A spokeswoman for Houli- HomeServices of America Inc. han Lawrence makes dual 80% of all deals for $2 million Mr. Cezimbra said. “I feel ev-
Now Ms. Goldstein is the han Lawrence said the com- acquired Houlihan Lawrence agency part of its basic busi- or more, the complaint alleges. erything we did was up to par.
lead plaintiff in a lawsuit seek- pany had just learned of the for an undisclosed amount. ness plan, offering incentives Ms. Goldstein said she was She had every disclosure laid
ing class-action status that ac- lawsuit and was reviewing it. The suit takes on a thorny to brokers to steer clients to shocked to realize that the out to her.”

Amenities Drive
Office Space Deals
In New Jersey

.
ly
BY KEIKO MORRIS from Lyndhurst to the former
on Hoffmann-La Roche campus in
Large office-lease deals in Nutley and Clifton, where
the New Jersey market made a Prism Capital Partners is plan-
comeback in the second quar- ning a massive redevelopment.
ter, as companies across sec- Integra LifeSciences Holdings
us l,

tors from food Corp., a Plainsboro medical-


PROPERTY to pharmaceu- device company, will move its
al a
e
ticals sought headquarters to a 167,000-
KEVIN HAGEN FOR THE WALL STREET JOURNAL (2)

space in often square-foot facility at 1100


revamped, amenity-laden office Campus Rd. in the same town-
ci on

complexes, according to several ship, keeping its existing man-


reports and brokers. ufacturing operations in the
Yet, despite the flurry of same location.
signings for offices of 100,000 Candy maker Mars Wrigley
square feet or more, older and Confectionery U.S. signed a
er rs

obsolete buildings as well as 148,000-square-foot lease at


the shift toward putting more Ironside Newark, an $80 mil-
workers in less space contin- lion warehouse-to-office con-
ued to weigh down the state’s version by real-estate firm
m e

office-vacancy rate. Edison Properties. Ironside is


“You had companies leasing part of a 22-acre public-pri-
Hempstead Town Supervisor Laura Gillen helped conservation workers throw bags of discarded seashells into the water last week. large blocks of space, but vate commercial and residen-
m rp

A Whole New Shell Game


some companies weren’t com- tial redevelopment centered
ing from out of state,” said Ja- on a large park near the train
son Price, director of New Jer- station.
sey research for real-estate- The buildings where large
services firm Cushman & leases have been signed are lo-
co Fo

Wakefield. “And they were cated in both urban and subur-


Leftover shucks from into the bay on Thursday. Col- giving up space and consoli- ban environments, but most
lecting the shells took two dating their footprint as well.” are modern, amenity-filled
Long Island seafood years. The town plans to con- Leasing of large office spaces and are properties
restaurants will create tinue to collect shucked shells spaces was sparse from the where owners have invested in
from local restaurants to toss end of 2016 through the first or are planning significant ren-
a storm surge barrier more mesh bags into the wa- quarter of this year, with only ovations, brokers said. Tenants
ter at a future date. three deals signed, according are looking for these types of
BY LARA KORTE Earlier this year, the New to Cushman. That changed in spaces as part of their recruit-
York Department of Environ- the second quarter, when six ing and retention tools, brokers
A Long Island town has de- mental Conservation awarded big-block leases were signed, and real-estate executives said.
vised the latest defense a $400,000 grant to the Town pushing new leasing to its The options for large ten-
against tropical storms: sea- of Hempstead hatchery to bol- highest quarterly level in al- ants seeking higher-end
food scraps. ster the oyster population. Ac- most two years, Cushman said. spaces with attractive hotel-
n-

Officials and environmen- cording to officials, the grant The vacancy rate for the state like features such as outdoor
talists from the town of will expand the hatchery and rose slightly to 18.3%, an in- workspaces, comfortable
Hempstead tossed mesh bags more than double the output crease of 0.3 percentage point. lounge areas and multiple food
full of thousands of discarded of oysters into the bay. In ad- Among some of the biggest options are limited to a hand-
no

clam and oyster shells into dition to creating a storm bar- deals was Ralph Lauren Corp.’s ful, many brokers said.
Hempstead Bay off Lido Beach Live oysters will be placed on the reef and attach onto the shells. rier, the oysters will also filter 255,000 square-foot lease to “Companies are looking for
on Thursday. The shells, col- out harmful pollutants. move its New Jersey offices Please turn to page A12B
lected from a dozen local res- oysters on the reef, which will tion biologist, said the living The Department of Conser-
taurants, will form a “living then attach onto the dis- reef project won’t only pro- vation and Waterways plans
reef” to reinforce the area’s carded shells and provide a tect the island from tropical to submerge hundreds of bags
natural barrier islands, which defense against coastal storms, but provide a healthy of shells into the water, form-
have degraded over the past storms. The hope is that, over habitat for the bay’s waning ing a structure that is a half-
century. time, the shells and oysters oyster population. mile long. Local leaders said
“It is our hope that with will build up enough sediment “Oysters cement them- it is the next step in preserv-
this living reef project, we to become seamlessly inte- selves as part of their life cy- ing the health and the econ-
will be able to vastly restore grated with the existing is- cles, so they need to attach omy of the South Shore.
the ability of our barrier is- lands. themselves to a hard sub- “What really is more im-
lands and other barrier is- “There’s clam diggers and stance such as a rock or a portant for us than to pre-
lands to mitigate the flooding fishers coming in every day, shell,” Mr. Naham said. “Most serve our beautiful environ-
associated with storm surges we’re right on the water,” said of that habitat has been re- ment here on Long Island?”
like those we saw during su- Michael Mihale, owner of moved from our bay by years said Sylvia Cabana, Hemp-
PERKINS EASTMAN

perstorm Sandy,” said Hemp- Fisherman’s Catch and Point and years of dredging and de- stead town clerk. “This is
stead Town Supervisor Laura Lookout Clam Bar, who pro- velopment projects.” what defines us, this is why
Gillen. vided some of the shucked Ms. Gillen and other offi- so many people come to Long
Experts from the town’s shells. “Anything I can do to cials took a fishing boat out Island, to see our beautiful
Department of Conservation help, we’ll do.” to a small grassy island off channel, our beautiful bays,
and Waterways will place live Steve Naham, a conserva- Lido Beach to dump the shells our beautiful oceans.” Mars Wrigley Confectionery U.S. is moving to Ironside Newark.

New Commissioner Named to Lead Delay-Plagued City Agency


BY KATIE HONAN “Lorraine Grillo is univer- looning costs and blown ery” and preventing cost over- borough’s animal shelter.
sally admired as someone who schedules on city-run con- runs, she said. “We’ve worked Mr. Oddo said he hoped Ms.
New York City Mayor Bill de gets it done,” Mayor de Blasio, struction projects. Ms. Barrio very hard here at the SCA on Grillo would “change the cul-
Blasio has appointed School a Democrat, said in a statement. will join the Department of En- continuous improvement, and ture” of the agency.
Construction Authority Presi- “She’s proven it with 75,000 vironmental Protection as the we’ve succeeded,” she said, re- “If there is no true leader-
dent Lorraine Grillo as the new new school seats, and now she deputy commissioner of the ferring to project costs and ship, things go sideways,” he
commissioner of the Depart- is going to prove it on our agency’s Bureau of Engineer- speediness of construction. “I said. “DDC has been sideways
ment of Design and Construc- streets and public buildings.” ing Design and Construction. want the same thing for the for a very long time, and Lor-
tion, the city agency that over- Ms. Grillo, 68 years old, A 2017 study found that folks at the DDC.” raine is a great leader.”
sees large capital projects but joined the School Construction DDC-led projects—from librar- The agency’s delays in- In addition to Ms. Grillo,
MAYORAL PHOTOGRAPHY OFFICE

has been marred in recent years Authority in 1994 and was ap- ies to cultural institutions— spired Staten Island Borough Mr. de Blasio has appointed
by delays and cost overruns. pointed its president in No- were often plagued by delays President Jimmy Oddo to cre- Jamie Torres-Springer, who is
Ms. Grillo will also keep her vember 2010. that caused their costs to ate an online game where resi- currently a partner in consul-
position at the SCA, which Ana Barrio has been the spike dramatically. The aver- dents could guess how long a tancy group HR&A Advisors,
oversees construction and reno- acting commissioner of the De- age time for a DDC project to DDC project would take. He as the DDC’s inaugural first
vation of the city’s Department partment of Design and Con- be completed was seven years, has criticized the DDC over in- deputy commissioner.
of Education buildings. She will struction since Feniosky Peña- the report found. frastructure improvements on Mr. Torres-Springer said he
begin her role in charge of both Mora left the position in June At the DDC, Ms. Grillo’s fo- roadways and projects like the was excited to work with Ms.
Lorraine Grillo agencies on Monday. 2017 amid criticism over bal- cus will be on “project deliv- long-delayed extension of the Grillo and the team at DDC.
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.

A12B | Monday, July 16, 2018 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK GREATER NEW YORK WATCH


True Bleu: France Fans Dance in the Street in Manhattan BRONX BROOKLYN
Two Plead Guilty Man Is Arrested
In House Explosion In Triple Stabbing
Two men have pleaded guilty A Brooklyn man has been ar-
to manslaughter in an explosion rested on murder and gang as-
at a marijuana grow house that sault charges in a triple stabbing
killed a New York City fire bat- that killed a 15-year-old.
talion chief, prosecutors said. Police said Sunday that 25-
Bronx District Attorney Darcel year-old Jayson Smith has been
Clark said that Garivaldi Castillo arrested in the case. It wasn’t
and Julio Salcedo had admitted immediately clear whether he
to manslaughter and marijuana had a lawyer who could speak
possession. for him.
Mr. Castillo, 33 years old, has Police said the stabbings
been promised a two- to six- around 6 a.m. Saturday followed
year prison term, Ms. Clark said an argument among several peo-
Friday. Mr. Salcedo, 36, is to be ple on the corner of Belmont
sentenced to one to three years. Avenue and Mother Gaston Bou-
The September 2016 blast levard, in the Brownsville neigh-
EDUARDO MUNOZ ALVAREZ/GETTY IMAGES

killed Michael Fahy, a 17-year fire borhood. Officers arrived to find


department veteran. He had re- 15-year-old Parlay Oller had been
sponded to a report of a gas stabbed in the abdomen. He was
leak at the house. A section of later pronounced dead.
the exploding home’s roof hit Police said an 18-year-old man
and killed him. Ms. Clark said the was stabbed in the chest and a
leaking gas couldn’t escape 25-year-old in the shoulder. They
through foil-covered windows. were in stable condition.
—Associated Press —Associated Press

VICTORY: Fans celebrated Sunday at the French Institute Alliance Française’s Bastille Day on 60th Street festival after France beat
Croatia, 4-2, to claim the World Cup title. FIAF showed the game on a giant outdoor screen at East 60th Street and Lexington Avenue. Businesses incentive program.
Democratic Gov. Phil Mur-
phy, who started his term in

Seek Offices January, has criticized the


state’s practice of giving big

Library Cards Open New Chapter


subsidies to large companies.

With Extras He has ordered an audit of in-


centives expected to be com-
pleted by the end of the year.
BY CHARLES PASSY lows them to bring one to three part of a piece, said Brooklyn Continued from page A12A But real-estate executives
additional people, depending Public Library President and Cultural Perks newer and better product, and expect incentives to remain a
A new program being on the organization. Given that CEO Linda E. Johnson. when it gets built, it’s going to necessary fixture for large of-
launched Monday by New York the standard adult admission to “We have been focusing on lease,” said Tim Greiner, exec- fice leasing and highlight the
City’s three major library sys- some of the participating insti- how to expand the definition The Culture Pass program utive managing director at benefits of the ripple effect of
tems will give library cardhold- tutions can easily top $20, the of literacy,” she said. “Being includes free admission to real-estate-services firm JLL. big company relocations and

.
ers free admission to 33 muse- program can equate to a value able to read and write is just several institutions. Here are “When we talk to companies, expansions secured with state

ly
ums and other institutions in the hundreds of dollars for the tip of the iceberg.” some of them, along with the they seem to be willing to incentives.
throughout the five boroughs. cardholders. In any case, libraries in New standard adult admission make the investment in a bet- “Many of the large office
Dubbed Culture Pass, the The institutions aren’t York City have been challenged price, according to the institu- ter building and are not so deals you read about would be
program is a joint initiative by charging the library systems on to redefine their mission in an tion’s website: much focused on rent.” unlikely to occur if not for the
the Brooklyn Public Library, for the program. Funding for increasingly digital era where Brooklyn Botanic Garden Another key factor behind Grow New Jersey program,”
New York Public Library and operating and marketing Cul- there is simply less demand ($15) the signing of large leases has said Michael Sommer, execu-
Queens Library. Under the ture Pass, which runs at least for printed books. At the Children’s Museum of Man- been tax incentives offered by tive vice president of develop-
terms, cardholders will be able $1 million in the program’s ini- Brooklyn Public Library, annual hattan ($14) the New Jersey Economic De- ment at Edison Properties.
us l,

to visit some of the city’s most tial stage, is provided through circulation has declined over The Frick Collection ($22) velopment Authority. In the While New Jersey’s bigger
high-profile institutions, includ- private foundations. the past five years to roughly Historic Richmond Town ($8) past 24 months, 66% or 10 of lease deals have attracted at-
al a
e
ing the Whitney Museum of Officials with the library 14 million items from 17 mil- International Center of 15 new leases for space larger tention, demand for office
American Art, the Brooklyn Bo- systems say one of the main lion, according to Ms. Johnson. Photography ($14) than 100,000 square feet have space, usually dominated by
tanic Garden and the Frick Col- goals of the program is to As a result, libraries are of- Intrepid Sea, Air & Space received grants from the smaller leases, remains slug-
ci on

lection, at no cost. Before visit- boost access to the arts for fering an ever-widening range Museum ($33) state’s Grow NJ program, said gish throughout many of New
ing the institutions, cardholders New Yorkers, especially those of programs. Noguchi Museum ($10) Jeff Hipschman, senior manag- Jersey’s submarkets, brokers
must reserve their passes on- who might not otherwise eas- At the Queens Library’s cen- Solomon R. Guggenheim ing director at real-estate-ser- have said. The change in occu-
line through the Culture Pass ily afford a visit to some of tral branch in Jamaica, World Museum ($25) vices firm CBRE Group Inc. pied space was positive for
website (culturepass.nyc). these institutions. Cup soccer games recently Wave Hill ($8) “As states compete for cor- only five of New Jersey’s 20
er rs

The program does limit While providing such access have been screened. Later this Whitney Museum of porate occupiers, it has to be submarkets, according to CBRE.
cardholders to one visit per in- might not be seen as a tradi- month, the branch will offer American Art ($25) competitive,” Mr. Hipschman —Kate King
stitution each year, but it al- tional role for libraries, it is all car-seat safety checks. said, referring to New Jersey’s contributed to this article.
m e
m rp
co Fo

I believe that
n-

good stories
no

have the power


to change people.
ZOE, AGE 11, CHICAGO

STUDENTS WRITE THE FUTURE.

826NATIONAL.ORG VOLUNTEER. SUPPORT. BE INSPIRED.


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, July 16, 2018 | A13

LIFE&ARTS
SCIENCE

Genetic Testing’s
Push for Diversity
Legacy of unethical
studies complicates call
for greater participation
by African-Americans

BY AMY DOCKSER MARCUS

LATE LAST YEAR, Justina Craw-


ford decided to swab the inside of
her mouth for a saliva sample to
do a DNA test.
Ms. Crawford, a 30-year-old
working in Boston who is African-
American, had never done a DNA
test before because she worried
about who would have access to
her genetic information. But her
growing curiosity about her family
history led her to set her reserva-
tions aside. “I want to know my
roots,” she said, and purchased a
kit from African Ancestry Inc., a
DNA testing company.

.
Scientists and private genetic

ly
testing companies are making a
push to enroll more African-Amer- ‘The mistrust never goes
icans in genetic research and data- away,’ says professor
bases. As the popularity and wider on Alondra Nelson, citing
availability of genetic testing ‘scientific racism,’ such as
grows, so have calls from the sci- by the U.S. government that ran of Us. “The more data we the Tuskegee experiments.
entific community about the need until 1972. Individuals in the study gather, the more we’ll
for genetic diversity in future re- were not told they were infected know about what makes
us l,

search. In the past, genomic re- with the disease or treated with people unique, which American mother. But his
search was predominantly skewed penicillin. Exposure of these lapses may, in turn, pave the organization focuses on
al a
e
to people of European ancestry. As led to changes in ethical rules. way for more customized DNA testing as a way to
a result, African-Americans—as “The mistrust never goes away,” health care approaches build cultural identity.
well as people of different demo- says Professor Nelson. for African-Americans “For many people, there
ci on

graphic backgrounds—weren’t well In May, the National Institutes and many other under- is stigma and trepidation
represented in some important of Health launched the ambitious served communities.” about DNA tests,” he
health research. All of Us research program, with Earlier this year, says. “But the desire for
But before they sign up, many the goal of enrolling one million or 23andMe, a direct-to-con- roots and identity is so
African-Americans have to over- more people of races, ethnicities sumer personal genomics strong that they are will-
er rs

come concern about potential mis- and other groups that have been company based in Moun- ing to take the chance.”
use of DNA results and mistrust of underrepresented in biomedical re- tain View, Calif., launched Ms. Crawford grew up
health research, which has not al- search. So far, following commu- a Global Genetics Project in Pennsylvania. Her par-
ways benefited them and was nity outreach, 17% of the 36,539 seeking to enroll people with four with particular genes, researchers ents divorced when she was young
m e

sometimes conducted without participants in All of Us that have grandparents all born in western say. and her mother raised her. She
their consent. provided blood, urine, and other and central Africa and other un- At a Boston event focused on said she knew from her mother
Alondra Nelson, professor of so- information identify as African- derrepresented places. The proj- DNA testing as a link to African and grandparents that “we come
m rp

ciology at Columbia University, American, which is “significantly ects can help fill in gaps in under- cultural identity, Fabienne Monde- from a lineage of slaves,” but not
who has written extensively about more representation than in most standing about population sir, director of community engage- any detailed family history. She
the topic, cited a long history of studies and greater than the over- genetics, but also can spark per- ment at Harvard Medical School’s used African Ancestry’s test.
“scientific racism,” such as the all percentage of African-Ameri- sonal interest in health questions. Personal Genetics Education Proj- When she got the results, it
Tuskegee syphilis experiment con- cans in the general population,” Rick Kittles, a professor at City ect, gave a presentation explaining showed a 99.7% maternal connec-
co Fo

ducted on African-American men says Eric Dishman, director of All of Hope Comprehensive Cancer how the technology works as well tion to the Bamileke people in
Center and co-founder of African as its current limits. Cameroon. “I didn’t even know
Ancestry Inc., which helps people While the focus of the evening where Cameroon is. I googled it,”
of African descent trace their was ancestry and not health test- says Ms. Crawford.
roots, said ancestry can play a role ing, Ms. Mondesir said it’s hard to Ms. Crawford has since done
in assessing disease risk. But when talk about one without the other. research on Cameroon. A friend
he and Gina Paige co-founded the She wanted the audience members gave Ms. Crawford a book about
company, he says they purposely to understand both how research- Cameroon art. She shared the im-
stayed away from testing for ers might use information from ages with her mother. Mr. Solomon
health conditions and agreed to ancestry tests to better under- connected Ms. Crawford with a
destroy the DNA sample once the stand health links as well as po- group in Boston that runs commu-
test is completed. “We share the tential misuses of genetic informa- nity projects in Cameroon. Eventu-
same sensitivity the community tion, including privacy concerns. ally, she says, she wants to visit.
shares,” says Dr. Kittles, who is Af- One June morning, Ms. Craw- Ms. Crawford knows there is
n-

rican-American. Broader health ford sat in a sunny courtyard, dis- still more to learn about her DNA.
testing “is important but it has to cussing her test results with Mar- But despite the positive benefits,
come from the community de- lon Solomon, president of the Ms. Crawford says she does not
manding it.” Afrimerican Culture Initiative, a want health information and is not
no

Doctors rely on population-wide Hyde Park, Mass.-based foundation yet ready to contribute her DNA
studies to better assess an individ- that organized the Boston event. for research—and may never be.
ual’s risk of getting a disease. Ge- “I think there is a benefit to Whatever comes next, she says,
netic testing from more diverse DNA testing to learn health infor- tears suddenly welling up in her
groups will lead to better under- mation,” says Mr. Solomon, who eyes, “I want to have ownership of
African Ancestry, co-founded by Rick Kittles, avoids health condition testing. standing of the risks associated has a Nigerian father and African- the experience.”
ILLUSTRATION: ROBERT NEUBECKER; PHOTOS FROM TOP: EILEEN BAROSSO; CITY OF HOPE

ARTS & ENTERTAINMENT

CHINA SHOOTS FOR A BASKETBALL REVOLUTION


nating government control of the
BY WAYNE MA
league to potential changes in the
way players are groomed for bas-
Beijing ketball through a state-sponsored
BASKETBALL IS BIG in China: system, according to people famil-
kids playing street hoops, fans iar with the plans.
wearing the jerseys of their favor- NBA merchandise is sold at
ite stars and huge audiences for nearly 200 branded stores and
streamed and televised games. more than 5,000 licensed retail
It’s just that much of the fans’ outlets on the mainland, according
cheering—and spending—goes to to NBA China, which said this
the U.S. National Basketball Associ- year’s NBA Finals drew an average
ation rather than China’s home- of 25 million unique viewers per
grown professional league. Basket- game in China. The CBA declined
ball star Yao Ming is out to change to provide comparable viewership
that. numbers for its final playoff series.
Since becoming head of the Chi- China’s rising middle class has
nese Basketball Association in many experts optimistic about the
early 2017, Mr. Yao has worked to prospects for professional athletics.
MARK SCHIEFELBEIN/ASSOCIATED PRESS

transform the league into some- Government ministries previously


thing closer to what he saw in the were in charge of sports leagues,
U.S. as a center playing for the which have historically focused
NBA’s Houston Rockets from 2002 their attention on fielding Olympic
to 2011, starting in eight All-Star champions—not nurturing profes-
games. He’s aiming to raise the sional franchises to make profits.
level of talent, and also working to “We’re at an inflection point for
make the game more profitable for sports consumption in China,
owners so they can put more where sports is becoming a con-
money into the sport. sumer product,” said Matt Beyer,
Those efforts range from elimi- Please turn to page A15 Ex-NBA player Yao Ming, now head of the Chinese Basketball Association, is seeking to transform the nation’s pro league.
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, July 16, 2018 THE WALL STREET JOURNAL.

LIFE & ARTS


WHAT’S YOUR WORKOUT? | By Jen Murphy

The Only Guy in the Barre Class


A tough ballet-inspired regimen keeps this 67-year-old in shape; even after years of practice, ‘I still feel sore’
IN A STUDIO of spandex-clad
women, Steve Seigal and his tie-
dyed shirt stick out. Even after five
years of classes at Pure Barre in
Boulder, Colo., as an instructor calls
out “Tuck hold. Tuck freeze,” Mr.
Seigal’s leg muscles shake while he
squats at the barre.
Barre classes are total body
workouts made up of small, iso-
metric movements that take their
cues from ballet warm-ups. They
are often favored by women drawn
to the promise of long, lean mus-
cles. Mr. Seigal, now 67 years old, Stepping Up
usually is the only man in the To the Barre
class. But he isn’t intimidated.
“I was married to an athlete German-born dancer Lotte
who was stronger and faster than Berk is credited with developing
me,” he says. “I always had to what today is known as the
work out in her shadow. It was barre method, a stretching and
hard at first to swallow my pride strengthening workout taught at
but now I have no problem seeing studios including Physique 57,
women who can lift their leg the Bar Method and Pure Barre.
higher or hold their leg The workout claims that it
straighter.” will sculpt your body into balle-
Mr. Seigal’s wife, Alice Cornelia rina-like shape, but it’s more
Seigal, was a member of the USA likely to help you achieve a
Track and Field team. They have dancer’s muscle endurance and
four children, and exercise had al- balance, says Angela Smith, a
ways been a big part of their life. spokeswoman for the American
In the summer of 2013, his College of Sports Medicine.
daughter Ashley asked him to try The slow, small movements
the barre workout, and they began of barre workouts look decep-
going together three times a week. Marathon with him from Snow- Steve Seigal, in shorts and tie-dyed tively easy. But keeping the
That fall, his wife died. mass Village to Aspen, Colo., in shirt, says Pure Barre classes helped range of motion limited allows

.
“It affected the kids tremen- September. get him in shape to complete the you to isolate small muscle

ly
dously,” Mr. Seigal says. “They “Staying in shape means more Grand Canyon Rim-to-Rim hike, right. groups and work them to fa-
would constantly say, ‘Dad, please opportunities to spend time with tigue, says Katie-jane Denton, an
stay strong and healthy.’ Being family,” he says. “I’m always ready instructor at Pure Barre in Boul-
physically fit took on a whole new at the drop of a dime if my kids in-
on der, Colo. “We engage our bigger
importance.” vite me to join them on a hike, grouped muscles every day so
Mr. Seigal, a former IBM engi- run, bike ride or anything fitness- we want to be sure they are
neer who now works part-time related.” supported to work efficiently,”
from home in credit-card-process- Ms. Denton says. “The small
us l,

ing sales, turned his workouts into The Workout movements are key in training
family bonding time. Ashley, now Mr. Seigal attends Pure Barre five the muscles to wrap and support
al a
e
20, joins him twice a week at class. days a week, usually at 8:30 a.m. the body’s skeletal structure.”
His 16-year-old daughter, Mikayla, Hour-long classes begin with a Alignment and proper tech-
uses Sunday classes with her fa- warm-up that will include light nique are a focus of barre
ci on

ther as cross-training for her weights to work the arms. Thigh classes. The tuck, a key barre po-

MATT NAGER FOR THE WALL STREET JOURNAL (3); CHRISTINE DENNIS (HIKE)
swimming career. Vanessa, 31, and seat work is performed at the sition, occurs from the low abs
joins once a month, and his son barre, followed by a series of ab and transverse abdominal mus-
Max, 30, a globe-trotting photog- exercises and a cool-down. cle. “By pulling the abs inward,
rapher, joins when he is in town. “Something as simple as stand- the hips pull forward creating
er rs

“We’re all at different fitness ing at the barre and holding one deeper abdominal engagement,”
levels, but we can get a great leg out and back at 45 degrees and The Diet He has tried nearly every brand Ms. Denton says.
workout,” Mr. Seigal says. “I repeatedly lifting it one inch is su- Mr. Seigal eats a healthy diet with- of running shoe and says Hoka The pulse, usually a one-inch
thought it would get easier, but per hard,” he says. Moves might out being too strict. He avoids fast One One work best for his feet. He range of motion, targets slow-
m e

then I reached the 100 club and re- include planks, squat variations, food and fried foods but allows has both the Stinson ATR 4 ($160) twitch muscles, that when fa-
alized it never gets easier. I still abdominal curls and pulsing one- himself a good burger with sweet- and the Challenger ATR 4 ($130) tigued, result in the workout’s
feel sore.” legged bridges. potato fries every now and then. models. signature “shake,” she says.
m rp

Mr. Seigal has completed more In addition to support from his He has coffee, yogurt and a banana Before his Grand Canyon Rim- Dr. Smith says both men and
than 1,400 classes. As one of few children, he has a “Pure Barre for breakfast. Lunch is often hue- to-Rim hike he tested six different women can benefit from the
students to hit that milestone, he’s buddy.” “We are always encourag- vos rancheros—eggs and beans on sock-shoe combinations to find the low-impact workout. “It’s a good
become a celebrity among Pure ing each other to make it to class,” a tortilla—from Dot’s Diner. Go-to perfect pairing. “Some were too way to build hip strength and
Barre fans. “I attended a class in he says. “It’s easier to get there dinners include vegetable stir fry thin, some too tight,” he says. stability and improve balance,”
co Fo

Missouri and someone asked if I knowing my buddy is expecting and pasta with tomato sauce. Smartwool PhD Run Light Elite she says.
was Pure Barre Steve,” he jokes. me. She helps keep me consistent.” Mini socks ($18) were the winners. —Jen Murphy
The classes work small stabiliz- Mr. Seigal says as he’s gotten The Gear & Cost He spent around $2,400 on his
ing muscles, which Mr. Seigal older, his body feels better if he Mr. Seigal is known for his tie- custom Javelin bike with Shimano
credits with helping him get back avoids doing the same sport two dyed T-shirts. “As a family, we gears. An unlimited 12-month The Playlist
to running pain-free after years of days in a row. He now alternates used to go to Jamaica for Spring membership at Pure Barre costs “I like that each of the Pure Barre
overuse injuries. In May he com- biking and running. To train for Break, and one of the resort activi- $1,920. Pure Barre is performed in teachers brings in their own play-
pleted the 24.2-mile Grand Canyon the Grand Canyon hike, he did ties was making tie-dyed shirts,” socks ($15) with adhesives on the list,” Mr. Seigal says. “The music
Rim-to-Rim Hike. His son con- three to four repeats of Mount he says. “Wearing the shirts is a bottom that are meant to retain never gets boring. One class might
vinced him to train to run the Ute Sanitas in Boulder, a 3.1-mile hike way for me to celebrate our family the body’s heat as well as prevent be hip hop, another pop or country
Mountaineer Golden Leaf Half with 1,343 feet of elevation gain. time together.” feet from sliding. western.”

Weather The WSJ Daily Crossword | Edited by Mike Shenk


n-

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
60s d
Edmonton 50s 60s <0 1 2 3 4 5 6 7 8 9 10 11 12 Down 29 Textile factory
70s supply
V
Vancouver 70s 60s 0s 13 14 15
1 Did one’s civic
no

70s C gary
ary
Calgary 10s
duty 30 Greek cheese
90s ip
Winnipeg 16 17 18 2 Impressive
Seattle 20s 31 God of war
90s 80s display
Portland
P d 100s 60s Montreal 30s 19 20 21 22 32 •They pass over
l
Helena 90s
Bismarckk 40s 3 Look down one’s shoulders
ttaw
Ottawa A g t
Augusta 23 24 25
Eugene Billings 70s nose at 33 Aids illegally
80s 80s Mpls./St. Paul
Mpls./St. Pa T
Toronto A bany
b
Albany 50s
100s Boise
i 90s t
Boston 26 27 28 29 4 Keg attachment
70s oux FFalls
Sioux ll k
Milwaukee Buffalo rtford
Hartford 60s 37 Urban prowler
Pierre Detroit
t
100s Cleve d
Cleveland New Yorkk
ew Y 70s 30 31 32 33 34 5 “Okay, sure!” 38 Players’
90s Salt Lake
L ke C
City es Moines
Des
Ch g
Chicago 90s
Reno y
Cheyenne h
Omaha Pittsburgh
Pi b h
Phhil d lph
hi
Philadelphia 80s 35 36 37 38 39 6 Epsom entrance in a
Sacramento 80s di p
Indianapolis
70s Denver Springfield
h
hi
ington
Washingtongton D C
D.C. 90s activities stadium
San
an Francisco
i k
Topeka Kansas Charles
h
Charleston 40 41 42 43 44
70s L
Las
Coloradd
C
Colorado City 70s Richmond
h d 100+ 7 Some nest eggs, 41 Superdome
p
Springs h
Wichita St.. Louis
Lou LLouisville
Lo
Ve
Vegas igh
Raleigh h 45 46 47 for short team
70s 90s
Angeles 100s
Los A
Ange 70s Nashville
h Charlotte
C h l
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Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 96 72 t 94 74 t Edinburgh 70 51 pc 68 49 t Zurich 83 58 t 76 56 t the five woods spell the contest answer.
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, July 16, 2018 | A15

LIFE & ARTS


hues. Forest tones anchor two
companion pieces, “Primroses”
and “Dandelions” (both 1867-68),
which Millet seems to have com-
posed while lying on his stomach
in the shade.
His experimentation with the
medium began in the 1860s,
around the same time pastels were
embraced by the much younger
Monet. Helping to drive resurgent
interest was the development of
synthetic dyes, which expanded
the array of available colors.
To the dismay of Degas, who de-
tested amateurs, droves of pastel-
toting novices set out to capture
the French countryside alongside
serious artists. A popular how-to
book, “Le pastel simplifé et perfec-
tionné” (“Pastel, simplified and
perfected”), by Frederic Goupil-Fes-
quet, appeared in 1881 and sold
briskly into the 20th century.
Museum-goers will find a copy
positioned near a box of brightly
colored crayons once owned by
Mary Cassatt. “Study for the
Banjo” (c. 1894), one of two Cassatt
works in the show, employs vivid
strokes of orange and teal, chal-
lenging the customary association
of pastels with nursery-room hues.
Four works by Degas show him
trying out different approaches to
landscape. “Cliffs on the Edge of
the Sea,” part of a breakthrough se-
ries completed in Normandy in
MUSEUM OF FINE ARTS, BOSTON (2)

1869, echoes Millet’s quest for sim-


ple composition. More sky than
land, its stark horizon is broken,
barely, by a single rickety structure.
But the astonishing range of De-
gas’s technical experimentation
comes through most clearly in a
sampling of his trademark balleri-
nas. In “Dancers Resting”

.
(1881-85), he renders a dazzling

ly
ART REVIEW ‘Little Goose Girl’ white skirt with naturalistic preci-
(1868), by Jean- sion. “Dancers in Rose,” completed
François Millet, around 1900, exhibits a much freer

‘French Pastels’: on above; ‘Dancers in


Rose’ (c. 1900), by
Edgar Degas, left
hand. Here the ballerinas’ skirts
are conjured with orange and blue
streaks, in a drawing that almost
appears to have been left out in

Delicate and Millet was Vincent the rain.


us l,

van Gogh. In 1875, Other standout works are by


he visited a large Edouard Manet, Odilon Redon, and
al a
e
auction show of Norwegian artist Johan Frederick

Delightful the artist’s late


pastels. Van Gogh,
(Frits) Thaulow, whose refreshing
snow-scapes take full advantage of
ci on

who had not yet their powdery medium. A portrait


fully embraced his completed by Camille Pissarro
own artistic voca- around 1874 suggests that nothing
intended less to instruct than to tion, was smitten. can capture a fleeting moment so
BY M.J. ANDERSEN
delight, and does. Because pastels When he entered well as pastels. The mustached sit-
er rs

can shed powdered color so easily, the room, he later ter for “Portrait of Père Papeille,
Boston they are seldom shown, and then wrote his brother Pontoise” is currently unknown to
AS A YOUNG ARTIST with as yet only briefly—typically for just a Theo, “I felt some- art historians. Yet viewers may
little to show for himself, Claude few months per decade, according thing akin to: Put feel they know him well. With his
m e

Monet decided to try working out- to the show’s curators. Affixed to off thy shoes from amused smile, Papeille could easily
doors. Before long, his attempts to easily discolored paper, they must off thy feet, for be saying, “So, tell me about your-
capture the French landscape us- be displayed in low light. the place whereon self”—without the least interest in
m rp

ing pastels, a material that had The MFA show’s roughly 40 thou standest is the answer, nor in your assump-
fallen into disuse, would help works are spread across two spa- holy ground.” tion, now slightly shaken, that
launch the Impressionist revolu- cious galleries and project a warm Van Gogh was when it comes to pastels, Degas
tion. Monet contributed a group of serenity against the Pilgrim-gray not alone in his unreservedly reigns.
the colored crayon drawings to the wall color. Most are from the mu- reaction. Millet’s
co Fo

movement’s first important ex- seum’s rich holdings in 19th-cen- pursuit of humble French Pastels: Treasures
hibit, in 1874. Yet for all he did to tury French art. Although more and Millet emerging as unfairly subject matter and his skill as a From the Vault
revive the medium, he would re- than half a dozen artists are repre- discounted. Contemporary viewers draftsman would influence artists Museum of Fine Arts, Boston,
main a princeling of pastels. sented, the show is largely a duet. who dismiss Millet as sentimental for decades. Pastels facilitated his through Jan. 6, 2019
Shortly, Edgar Degas would be- Degas trades melody lines with will feel vindicated by some of the innovations with perspective. Re-
come their undisputed king. Jean-François Millet, an artist who images on display. (Millet could not quiring no drying time, they were Ms. Andersen is the author of the
Works by both artists are on was a generation older but whom get enough of fair farm girls, win- easy to rework, encouraging spon- memoir “Portable Prairie:
rare public view at Boston’s Mu- Degas greatly admired. some sheep, or noble sons of the taneous expression. They also Confessions of an Unsettled
seum of Fine Arts. “French Pastels: The two are positioned in oppo- soil.) But what you see can depend made him a virtuoso of green. Midwesterner” (Thomas Dunne/St.
Treasures From the Vault” is a site rooms, with Degas confirming on where, historically, you stand. “Path Through the Wheat” (c. Martin’s) and writes frequently on
quietly seductive exhibit that feels his mastery of a medium he loved, One viewer who did not dismiss 1867) abounds in sunlit grassy the arts.
n-

China’s Pro views with more than a dozen CBA


team officials, agents, sports exec-
utives and academics.
no

Basketball
Still, local governments own al-
most all sports venues and the bu-
reaucrats running them don’t have
the same incentives to maximize
profits as in the U.S., industry in-
Continued from page A13 siders say.
an American who works as an agent Mr. Yao also believes changes
for CBA players. “Consumers are are needed to improve the talent
moving from viewing sports as ex- pool, according to a person famil-
ercise to admiring athletes and ap- iar with his thinking.
preciating sports culture,” he said. In China, athletes for national
Importantly, China’s government teams are selected at a young age
is looking to develop professional for state-sponsored training, cut-
sports as part of its effort to ex- ting out the potential for late-
pand its service-sector economy. In bloomers. Mr. Yao came to believe
2014, President Xi Jinping set a that the U.S. system, where ath-
goal of turning China’s sports in- letes can enter sports at the high
dustry into a 5 trillion yuan ($781 school and even college levels, was
billion) business by 2025—more another way to develop talent, ac-
than double the 1.9 trillion yuan it cording to a person familiar with
generated in 2016, according to the his thinking.
most recent government figures As owner of the Shanghai Sharks,
available. Most of that came from this person said, Mr. Yao also saw
manufacturing sports equipment how league rules kept players bound
GETTY IMAGES

and sportswear for export. to their local teams (Mr. Yao sold his
Now, the 20 teams in the CBA stake in the Sharks after becoming
usually operate in the red, accord- league president).
ing to people familiar with the “Yao began to understand that
league. In sharp contrast to the NBA teams and merchandise are popular in China. Mr. Yao is working to make China’s homegrown league a bigger draw. to maximize talent, you need to al-
slickly marketed and richly funded locate player resources in an effi-
NBA, teams play in arenas owned bureau to make him president,” Yao, who at the time owned the jointly establish a private company cient way,” the person said. “You
by local governments that look one team executive said. Shanghai Sharks—gathered in the to run the league, with the teams don’t want some player to be an
more like school gymnasiums than Despite hurdles, Mr. Yao can city of Dongguan during the CBA’s getting a 70% stake and the Man- all-star and stuck on the bench be-
modern sports venues, and food, draw from a potentially huge base all-star game weekend to discuss agement Center retaining veto cause he can’t move teams.”
beverage and merchandise conces- of fans who have one choice if efforts to break away from govern- power over league decisions. Mr. Yao’s ties to the government
sions are paltry at best. they want to go to a professional ment control, according to people About a year later, Mr. Yao was were underlined in March when he
The sorry state of Chinese bas- basketball game in China: the CBA. with knowledge of the meeting. chosen by the national sports minis- attended the annual Chinese Peo-
ketball contributed to Mr. Yao’s “I played basketball during my The owners, mostly property ty- try to run the CBA. He returned the ple’s Political Consultative Confer-
appointment, according to people school years,” said Huang Meiwan, coons, had a long list of grievances remaining stake to the teams, and ence, the official advisory body to
familiar with the situation. He was 26, who was sitting in the stands centered on money, according to eliminated Beijing’s veto power. China’s legislature, as a delegate.
the first person chosen to run a for a playoff game between the those present. Owners complained “Chinese basketball wasn’t in Stretching in a hallway between
sports league who didn’t come Shenzhen Leopards and the home- the Chinese sports ministry took a very good shape, and they realized meetings, Mr. Yao declined to talk
from the government bureau- town Zhejiang Lions this spring. cut of CBA media rights and spon- something had to be done in a dra- about his latest efforts but said he
cracy— a decision subsequently re- “This game makes me passionate sorship revenue but provided little matic way,” said one person famil- had no plans to return to the U.S.
peated in golf, ice hockey and and excited.” in return. iar with the situation. in the near future. “All my work is
equestrian sports leagues. Mr. Yao’s campaign to remake The meeting led team owners Since taking charge, Mr. Yao has in China now,” he said.
“Someone up there supported Chinese basketball began in 2016, and the government-run Chinese worked to route more revenue to —Xiao Xiao contributed
Yao Ming and ordered the sports when team owners—including Mr. Basketball Management Center to the owners, according to inter- 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.

A16 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

SPORTS
FRANCE 4, CROATIA 2

France Takes the World Cup


With a 4-2 victory, Les
Bleus lifted the trophy
for the second time in
their history
BY JOSHUA ROBINSON

MOSCOW—No team came into


this World Cup with more sim-
mering brilliance in its squad
than France. With goalscoring tal-
ent up and down the lineup, it
was an arsenal just waiting to be
trained onto the rest of the soc-
cer-playing planet. Les Bleus
brought so much talent, in fact,
that even when they reached the
final of this tournament, they
were still criticized for not living
up to their potential.
Because all along their road to
Moscow, they dispensed their ge-
nius so sparingly that it was only
ever the minimum amount re-
quired to beat their opponents.

MATTHIAS HANGST/GETTY IMAGES


They rode their luck. They de-
fended deep. And they did just
enough.
On Sunday, just enough won
them the World Cup.
With a nail-biting 4-2 victory
over Croatia, after a final that
combined moments of individual

.
shine with cool focus and jaw-

ly
dropping fortune, Les Bleus lifted France’s 19-year-old Kylian Mbappé was named the tournament’s Best Young Player. He became the first teen to score in a World Cup final since Pelé in 1958.
the trophy for the second time in
their history, 20 years after the Back home, the result touched That approach earned him They had allowed one shot in But Croatia tied the game with
first. off a nationwide party centered
on plenty of criticism in the wake of the first half, from an Antoine a belting volley by Ivan Perisic 10
“You may wonder, is France a on Paris, where tens of thousands Les Bleus’ defeat in the final of Griezmann penalty kick, yet were minutes after going 1-0 down.
beautiful champion?” France man- flooded the Champs-Elysées and the 2016 European Championship, somehow trailing 2-1 due to an Even when France snatched the
ager Didier Deschamps said. the Champ de Mars, just as they and in fact, throughout the team’s own goal. And in the second, they lead back via the first-ever pen-
“Well, we are world champions did in 1998. But if Les Bleus’ first stay in Russia. had succumbed to a pair of coun- alty kick awarded in a final with
us l,

and we will be on top of the World Cup victory marked a coro- But during that time, he could ter-attacks despite having 60% of the aid of video replay, the Croa-
world for the next four years. nation for a few all-time greats tell something was clicking in his the ball. tians’ spirit didn’t break.
al a
e
This is the most important thing.” such as Zinédine Zidane, this one squad. Fourteen of his 23 players With thunder booming in the Only their stamina did. As the
On the field, France’s celebra- was a triumph of the collective. had never been to a World Cup sky over the Russian capital, strain of three extra-time dog-
tions turned into an incongruous, In the same World Cup that before and they had bought into they’d have been forgiven for fights caught up to Croatia,
ci on

rain-drenched scene. While Les saw the likes of Lionel Messi, his approach. They left no doubt thinking the soccer gods were France seized the opportunity to
Bleus’ danced in a biblical sum- Neymar and Cristiano Ronaldo about that when they burst into plotting against them. sprinkle some flair back onto its
mer storm, world leaders waited flame out before the semifinals, his post-match news conference “Whatever luck we had over World Cup. Midfielder Paul Pogba
in soaking suits to congratulate Deschamps forged a team that of- and drenched him in water while the course of the tournament,” started a break with a 40-yard
this team of 20- and 30-some- ten seemed to hold its best indi- chanting his name. Croatia manager Zlatko Dalic said, pass and finished it at the other
er rs

thing millionaires, plus one 19- viduals back. As the captain of “Maybe if we’d won the Euro- “we lacked that today.” end with a shot from outside the
year-old superstar—Kylian that 1998 side, he had been a pean Championship, we wouldn’t Every bit of Les Bleus’ opening box. Les Bleus’ 19-year-old speed
Mbappé—in the making. First, the grinding defensive midfielder and be world champions today,” said goal in the 18th minute was a demon Kylian Mbappé, not even
French players shook the hand of branded a “water carrier”—but he Deschamps, only the third man to piece of desperately bad luck. born for France’s last World Cup
m e

Russian president Vladimir Putin, wore the putdown with pride. win the World Cup as a player Griezmann won a free kick for win, added another to make it 4-1.
the only person there under an So it was no surprise when he and a manager. France from the softest of fouls, It was enough that Hugo
umbrella. Then French president took a counterintuitive approach For the exhausted Croatians, and his cross found not one of his Lloris’s mistake, which gifted Cro-
m rp

Emmanuel Macron and Croatian to setting up the wealth of skill at who had battled as fiercely as any own teammates, but Croatia’s Ma- atia a late consolation goal, could
president Kolinda Grabar-Ki- his disposal. Deschamps was go- team in the tournament, making rio Mandzukic. As he faced away be forgotten. France had already
tarović embraced their teams like ing to take his attackers and sense of the match was almost from the Croatian net, Mandzukic done precisely what it needed—
they were on the coaching staff. teach them how to defend as a harder than playing it. They left let the ball glance off the top of and this time, just a little more.
Macron even broke protocol to team, even if it meant sacrificing the field wondering how exactly his head and turn him into the “France is a world champion,”
co Fo

kiss the gold trophy before any- the panache and aesthetics the evening had broken against first scorer of an own goal in a Deschamps said. “We did things
one in a France jersey. French supporters love best. them so harshly. World Cup final. better than everyone else.”

WIMBLEDON | By Jason Gay

Hello, Novak Djokovic! Tennis Missed You.


n-

Wimbledon, England Cup, where England reached the


Welcome back, No- semifinals. President Trump ar-
vak Djokovic. rived in London and rattled the
Tennis missed you. town.
no

Like, really missed Meanwhile, there was a lot of


you. talk at the men’s tournament
Don’t get me wrong: the Roger about five-set matches and tie-
Federer and Rafael Nadal revival breaks—and whether or not Wim-
in your absence has been giddy bledon should eliminate the win-
fun—a throwback geezer party by-two games standard and use a
spectacular, as those two legends fifth set tiebreak instead.
traded titles for a year and a half. Meh. I don’t know about you,
But men’s tennis hasn’t been Nole, but I think this is mostly a
the same without you at your stylistic concern. I’d rather give
best, Nole. my cat a bath every day for a
Your best was gone for more month than watch another min-
than a minute. It went into the ute of Anderson-Isner. But I loved
wilderness for what seems like a every minute of Djokovic-Nadal. I
couple of years. Even when you could have sat for another two
were around, you weren’t really hours.
around. I say preserve the system.
Body trouble. Head trouble. Keep tennis weird.
CLIVE BRUNSKILL/GETTY IMAGES

You just weren’t yourself. And a salute to Angelique Ker-


It was startling, really. ber, who won the women’s singles
I can’t believe I need to remind on Saturday, her first Wimbledon
people of this, but it wasn’t so title. And bravo Serena Williams,
long ago that you were the undis- coming back after the birth of her
puted best men’s tennis player on first child and emergency surgery
the planet. immediately afterward. A moti-
You were the boss, the capo, vated Williams said after drop-
the patron. People used to write After a long stretch of injury and self-doubt, it was a comeback Wimbledon triumph for Novak Djokovic. ping the final that she is “just
stories about how Roger Federer getting started.” That’s great
would never win another big one, your troubles. Strangers wanted And yet this title is a bit of But as he elevated, you kept el- news for tennis.
and you were the main reason to pick you apart. Diagnose you. surprise, probably even to you. evating, too. That’s what re- You’re also great news, Novak.
why. You were the roadblock. You Psychoanalyze you. Cut you open. “The past couple years, they minded people of the old days. The Fedheads and Nadal-ites
went 82-6 in 2015, winning three You got your elbow worked on haven’t been so easy,” you said At your best, I think you’re a know a full-strength Djokovic
of four majors. after Australia. But even when when it was over. “I have had vampire. I mean that in the best means a harder road for their
You have a lifetime winning re- you came back, you were an “Oh many moments of doubt.” possible way: if you want to de- idols, but it’s better for the over-
cord against both Federer and yeah.” As in “Oh yeah, Novak’s The final match was pretty feat prime-time Novak Djokovic, all health of the sport. Andy Mur-
Nadal. People forget that. That is also in this tournament.” painless, but getting there wasn’t. you’ve got to plunge a vampire ray lurks, too. And one of these
bananas. Like this Wimbledon. You were You endured a monster of a semi stake to him. Until then, you keep days, one of the kids is finally go-
Then you went away. Sunday’s seeded No. 12 here. A fair seed, with Nadal, one that stretched coming, coming, coming, relent- ing to crack through.
Wimbledon final was the first given your recent play, but you’re over one night and one afternoon, lessly. You use all available weap- When you sealed it on Sunday,
major final you reached in almost a three-time champion. They thanks to Anderson’s marathon ons. You play without fear. That you took a nibble of the Centre
two years. didn’t put you on Centre Court with John Isner. ruthlessness was on display Court grass like you did when you
How did it feel, Novak, to be in until this past Wednesday. That No disrespect to Anderson, against Nadal. Nadal is also aw- won your first one, and took joy
the wilderness? Playing hurt is had to bum you out a tiny bit. who’s playing the best tennis of fully hard to beat. Never takes a that they’d let inside your 3-year-
awful. Missing time is worse. Af- Now, at 31, you’re back. On his life, but that Nadal semi was point off. You had to win it 10-8 old son, Stefan, to see his Daddy
ter losing in this tournament last Sunday you whomped Kevin An- effectively the final, wasn’t it? It in the fifth. lift the trophy.
year, you shut it down for the derson in straight sets 6-2, 6-2, went five sets and more than five This was a weird Wimbledon It’s all worth it now, yeah? All
rest of your 2017 season. 7-6(3) to take your fourth Wim- hours, and Nadal had more than a overall. The host nation was ut- that time in the wilderness?
Everyone was an expert on bledon men’s singles title. few chances. terly distracted by the World Welcome back, Novak.
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, July 16, 2018 | A17

OPINION
Will Bitcoin Save Us From Google? BOOKSHELF | BY Joshua Rubenstein

The hardest
part of invest-
Apple is falling behind in most
other growth segments. The
fascinating, but supermarkets
often squeeze out profits of
is not cash flow. It bypasses
the entrepreneurial learning
Summing Up
A Summit Partner
ing is knowing company’s destructive seed is only 1% of sales. Now Amazon that is conveyed through the
when to sell a its desperate need for a new is bursting into the health- remorseless messaging of
stock. When product category. It won’t be care industry with its pur- price. Without prices, all that
you do buy watches. chase of online pharmacy Pill- is left to confine consumption
one, always You might think Face- Pack—right into the teeth of is the scarcity of time. Be-
INSIDE
have an exit book’s biggest problems are regulators. Eventually Wall yond the scores of hours a
VIEW
strategy—not privacy concerns, which have Street will demand high mar- week for its smartphone cus-
The Code of Putinism
By Andy
for right away, shown up everywhere but the gins after years of investment. tomers, time is closing in on By Brian D. Taylor
Kessler
this quarter, company’s finances. The me- I wouldn’t want to be around Google.” (Oxford, 250 pages, $27.95)

A
this year or dia cares about privacy. Us- when that happens. Google’s centralized archi-
even the next few years. But ers? Not so much. Facebook The bad seeds at Alphabet, tecture also could come under fter Boris Yeltsin’s resignation in December 1999,
constantly question how soon stock is hitting all-time Google’s parent company, are attack from the huge decen- Vladimir Putin became acting president of the
the seeds of destruction will highs. I think Facebook’s bad more elusive. Alphabet has tralized infrastructure scaling Russian Federation ahead of being elected outright
bloom at your company. I seed is population. The site three key strengths: search, up to mine bitcoins. Even if the following spring. Four American presidents—Bill
guarantee they’ve been planted has 2.2 billion monthly active search and search. It offers bitcoin drops below $1,000, Clinton, George W. Bush, Barack Obama and now Donald
already. users, a number that has free services based on a the installed glut of global Trump—have since tried to fathom his intentions and
Let’s probe Apple, Face- roughly doubled in the past global but centrally controlled blockchain servers could, Mr. respond to his domestic and foreign-policy moves. They
book, Amazon and Google, infrastructure of servers situ- Gilder argues, “marshal a vir- would all have benefited—or could benefit today—from
because they make up about ated near waterfalls (for tual planetary parallel com- “The Code of Putinism.”
12% of the S&P 500—while Maybe the seeds of cheap electricity). From this puter that dwarfs the CPU Brian D. Taylor, a political-science professor at Syracuse
representing almost all of the network it sells relevant ads, and GPU arrays in Google University, has written a close, often sorrowful analysis of
stock-market’s gains this year. destruction already often when you are most data centers with their mere Mr. Putin’s evolving beliefs about Russia and its place in
Yes, calls to break them up have been planted ready to buy something. The millions of servers.” the world. Based on Russian
persist. But that actually company will be tough to Mr. Gilder notes: “The and Western sources, along
could increase their enter- at the search giant. knock out. Even the move to cryptocosm can mobilize com- with many interviews, “The
prise value based on the sum mobile went well, as 1.3 bil- puter power in volumes that Code of Putinism” provides a
of the parts. Beyond ram- lion phones based on the An- dwarf even the data centers sober-minded account of how
bunctious regulators, what five years. Yet the growth droid operating system of the leviathans. In this case, Mr. Putin came to lead Russia
could go wrong? rate is necessarily slowing. shipped last year. Ad-blocker the advances in computer sci- and why his almost czar-like
Apple’s problems already User count probably won’t software on phones is a near- ence pioneered at Google role today bodes ill for Russia’s
have become visible. Smart- double again, and most term danger, but I had a serve to emancipate the world future.
phones are now like radial growth comes from the less tough time finding an existen- from Google’s silos.” This may Mr. Taylor rejects the idea
tires. Everyone has one and wealthy developing world. In- tial threat to the company’s be a way off, but investment that Russia is “cursed by nature”
they don’t wear out. Phone vestors won’t like it when high-margin hegemony. implications come sooner and “doomed by history and cul-
franchises are fickle. Ask Mo- growth stalls. My friend the futurist than you think. ture.” He quotes a column in the
torola or Nokia, if you can find Amazon’s biggest benefit, George Gilder outlines a Investing is simple but not Ottawa Citizen making such
them. One near-term sign of and problem, is its hall pass theory in “Life After Google,” easy. You should buy a com- claims when Mr. Putin first
distress: Marketing tech prod- from Wall Street. It’s allowed his forthcoming book. He pany’s stock when everything became president, and it has
ucts with splashy colors, as to show very little in profits suggests that while advertis- is going wrong and you can become a common sentiment in the

.
Steve Jobs did with tangerine while inventing the future. ing prices might be correct, figure out what might go West. But in the 1990s, Mr. Taylor notes,

ly
iMacs almost 20 years ago, That’s great, but the business the free-service model cannot right. Then when everything Russia under Yeltsin “had a political system
means the fun part is almost of selling stuff—that is, the deliver sustainable growth. has gone right, figure out be- with elements of both democracy and authoritarianism, . . .
over. Apple hopes to make it company’s main business—is Mr. Gilder explains that fore others what can go elections were generally competitive, television was not
up in services, but Google notoriously low-margin. Retail onGoogle “achieved unprece- wrong—from the seeds of de- controlled by the Kremlin, regional governors had real,
leads in maps, Netflix in video, stores never had high mar- dented scale by a commit- struction you see germinat- independent power, . . . and nongovernmental organizations
and Uber in transportation. gins. Buying Whole Foods was ment to ‘free.’ But free flow ing—and start the harvest. had plenty of room to organize, including in opposition to
the state.”
The population, though, suffering from dizzying political

Rule of Law Wins Again in Brazil


us l,

and economic dislocation after the Soviet Union imploded,


came to associate democratic reform with corruption, crime
al a
e
and the questionable amassing of untold wealth by a small
Former Bra- That would probably be for- release Mr. da Silva. What’s Minas reminded its readers group of “oligarchs” who had gained control of the country’s
zilian Presi- mer São Paulo Mayor Fer- more, the judge who is the on the afternoon of July 8 of oil, gas and mineral reserves. Yeltsin had democratic
ci on

dent Luiz Iná- nando Haddad, also of the rapporteur in the federal Judge Favreto’s résumé, instincts, but his overtly drunken behavior and the first
cio Lula da Workers’ Party, whose odds court handling the da Silva which includes nearly 20 war in Chechnya, which he initiated and which Russian
Silva, who is of winning are far worse than case contested Judge Favreto’s years of affiliation with the forces pursued in a brutal manner, undermined public
serving a 12- the former president’s. order. The rapporteur said Workers’ Party, from 1991 confidence in the government. All this helped to make Mr.
AMERICAS year prison The attempt to get Mr. da Judge Favreto didn’t have the and 2010. He served in four Putin, with his promise of a more competent Kremlin, a
er rs

sentence on a Silva released was a classic authority to accept the habeas different ministries during welcome successor to Yeltsin. The unexpected rise in oil
By Mary
bribery con- banana-republic maneuver. corpus request. The head of Mr. da Silva’s eight years in prices in the early 2000s reinforced his popularity. Mr.
Anastasia
viction, was His trial was transparent and the regional federal appeals office. In 2011 then-President Taylor reminds us that between 2004 and 2014 Russia
O’Grady
nearly sprung the accusations against him court ruled in favor of the Dilma Rousseff appointed benefited from “4 trillion dollars in export revenues.”
m e

from jail by a corroborated with testimony rapporteur. Mr. Favreto to the federal Once in power, Mr. Putin quickly turned on oligarchs like
rogue judge on July 8. and a paper trail. His convic- These decisions aren’t iso- appeals court where he now Vladimir Gusinsky. Mr. Gusinsky controlled NTV, the
That the effort failed is a tion went through the ap- lated events. A superior court serves. country’s first private television channel, which had
m rp

tribute to the evolving rule of peals process and he lost. has denied 143 habeas corpus The newspaper further honestly and graphically covered the war in Chechnya in
law in the country. But the Nevertheless on a Sunday requests from Mr. da Silva’s noted that “in 2016, he was the mid-1990s, providing reporting that helped turn the
near miss, which would have morning federal judge Ro- lawyers. His conviction bars the only member” of the court population against the conflict. As Mr. Putin moved to
sparked a constitutional cri- gério Favreto suddenly ac- on which he serves “to vote renew the war, he was not about to allow an independent
sis three months ahead of a cepted a habeas corpus re- for the opening of disciplinary media source to challenge what he wanted Russian citizens
co Fo

presidential election, demon- quest from Mr. da Silva’s Lula’s backers try proceedings against” Mr. to know. Mr. Gusinsky lost control of NTV, then was
strates the fragility of Brazil’s lawyers and called police to Moro, whose role in Operation arrested before fleeing the country.
recent achievements in insti- have him released. Judge (and fail) to spring Car Wash greatly harmed the
tution-building. Favreto justified the action him from jail so he Workers’ Party.
Brazilians vote Oct. 7. The based on Mr. da Silva’s claim On Thursday Brazilian Upon taking control, Vladimir Putin began to
current front-runner is Jair that he intends to run for can run for president. prosecutor general Raquel
Bolsonaro, a conservative, cen- president. As required by law, Dodge requested that a supe-
rein in Russia’s independent civil society and
ter-right politician who heads the court then issued an or- rior court investigate Mr. discourage free expression and pluralism.
the small Social Liberal Party der for federal judge Sérgio him from running for presi- Favreto for his decision to
in the lower house of the Na- Moro, who had overseen the dent, and a judge in the city accept the habeas corpus re-
tional Congress. But if polls prosecution of Mr. da Silva, of Curitiba, who is responsi- quest and order the release To secure unquestioned political control, Mr. Putin
are correct he is not even to release him. ble for the execution of his of Mr. da Silva. She sug- reined in the civil society that had begun to emerge, first
close to a majority. An Oct. 28 Judge Moro is somewhat sentence, has denied journal- gested that Mr. da Silva’s under Mikhail Gorbachev in the 1980s and more broadly
runoff is likely. of a national hero in Brazil ists’ requests to interview Mr. lawyers may have planned to under Yeltsin in the 1990s. The assault on pluralism and free
n-

Mr. da Silva, a left-wing because of his role in the in- da Silva as a potential presi- have their request land on expression included targeted killings—on whose orders is an
populist of the Workers’ vestigation dubbed Operation dential candidate. Mr. Favreto’s desk and that open question—of outspoken journalists and political figures.
Party, was president from Car Wash. Public prosecu- This string of decisions he may have been in on the Mr. Putin did step down as president in 2008, because the
2003-11, and his supporters tors, initially investigating a upholding due process is in- plan. Russian constitution limited him to two consecutive terms.
no

badly want him to compete money-laundering operation structive. “We are moving Brazilian politics are frag- His close associate and designated successor, Dmitry
in this election. If he can slip at a gasoline station, unrav- away from relying on deci- mented and whoever wins Medvedev, signed a law extending the presidential term to
out of jail, that could still eled a complex web of padded sions by individuals to rely- the presidency in October is six years from four; Mr. Putin was elected to a third term in
happen, because he remains government contracts and ing more on institutions,” Di- likely to govern with a messy 2012, then a fourth this March. In short, he has dominated
popular. If he doesn’t get out kickbacks to politicians and ogo Costa, a São Paulo-based coalition. But these develop- Russian politics for nearly 20 years.
by Aug. 15, the deadline for high-ranking executives at political consultant, told me ments suggest a generational Nonetheless, tens of thousands of people have taken to
political parties to register Petrobras, the state-owned oil by telephone last week. change in an increasingly in- the streets to protest rigged elections, while outspoken
their candidates—or even if company. Judge Moro allowed “But Brazil is still Brazil,” dependent judiciary, and activists like Alexei Navalny—who dubbed Mr. Putin and his
he does and electoral au- prosecutors to follow where Mr. Costa says, and it has to they offer new hope for in- team “the party of crooks and thieves”—continue to
thorities rule him ineligi- their investigation led. contend with jurists like stitutional stability in the challenge Mr. Putin as best they can. Under the guise of
ble—most analysts expect When Judge Moro got the Judge Favreto. young democracy. creating a “sovereign democracy,” as a member of his
him to back someone else. call on July 8, he refused to The newspaper Estado de Write to O’Grady@wsj.com. government termed it, Mr. Putin has imposed an
increasingly authoritarian regime. Today he controls the
country’s political institutions and leads a loose alliance of

How Does My Phone Know My Thoughts? clans that manage Russia’s natural resources and its
outwardly private major companies.
Much of Mr. Putin’s appeal in Russia is based on the
By Angela Rocco DeCarlo Puccini’s opera “Tosca,” in who make washing machines Maybe I’d have liked to see a stabilizing force he seemed to offer following the collapse of

T
which Mr. Grigolo starred. And that lock, so an errant sock can- piece on the Italian honeybees the Soviet Union. It also derives from Mr. Putin’s opposition
he news recently has every credit line in my pub- not be added. proliferating in my neighbor- to the West for its seeming antagonism toward Russia—e.g.,
completely creeped me lished work mentions my writ- But back to news. The hood. Yes, perhaps I could have the decision to expand NATO to Russia’s borders—and its
out. One morning, in- ing for the Chicago Tribune. world’s richest men figured found that, too, if I had scrolled aggression elsewhere: e.g., the invasion of Iraq and the
stead of plunging downstairs Perhaps, then, it was no out how to monetize people’s around. Instead I became so projection of military force to overthrow Muammar Gaddafi
to retrieve my newspapers, I great accomplishment for the intellectual property, without creeped out that I turned off in Libya. Mr. Putin’s recent moves to intervene in Ukraine,
did what millions of Americans algorithms to make the connec- the people’s realizing what the cellphone. All the fun had annex Crimea and meddle in the U.S. presidential election
do: I surfed the internet on my tions. Still, I didn’t like it. It was happening. It seems fairly gone out of my morning news have given him an image of triumphal power.
cellphone. As I pulled up ran- was as if someone had been clear that few actually read the ritual. I was no longer in But Mr. Taylor rightly wonders where this leaves Russia.
dom news websites, I realized reading my personal diary—if I charge. Silicon Valley was. Mr. Putin failed to wisely invest trillions of dollars of oil
the first two stories displayed kept one. I felt as though far- A confession: I love newspa- revenue. What did the money “buy,” Mr. Taylor asks, “in
were aimed at me personally. away programmers had been News stories pop up, pers. I weep at their pathetic terms of improvements in government services and state
Creepy. Someone in Silicon mucking around in my brain. selected especially for position in today’s byte-sized administration?” While Mr. Putin impresses the international
Valley had usurped my fun. Instead of joyously tramping world. Chicago once had five media—Forbes magazine has rated him “the most powerful
The first article was in through my newspaper, decid- me. It creeps me out. dailies, beloved by their readers. man in the world”—Mr. Taylor describes a spreading belief in
praise of the opera great Vitto- ing what to spend a few min- I remember my father perusing Russia that a new “era of stagnation” has set in. Faced with
rio Grigolo, appearing in the utes of my life on, someone had his Herald-American every eve- continuing sanctions by the West, crippling economic
Met’s “Lucia di Lammermoor.” made the choice for me. terms of service posted on ning when I was a girl. corruption and a stifling political culture, Mr. Putin’s Russia
It is embarrassing to realize “What planet is she on?” a “free” websites. People “agree” Wait, I just went to check has begun to recall the woeful regime of Leonid Brezhnev.
that some electronic robo- few readers must be saying. to give up their written work my cellphone, and what’s No extravagant show pieces, like the Winter Olympics in
zombies know of my admira- “Doesn’t she know our betters or photographs, and in return there? A story on the opera so- Sochi or the World Cup today, can camouflage a Russia that
tion for this handsome young decide what we’ll read?” Yet the internet company uses prano Renée Fleming. And I would rather mistrust its people than invest in them. “A
tenor. Is nothing private? The who are these faceless people? their intellectual property, for wasn’t even thinking about successful country . . . is one in which institutions are
next story was on a group of The same ones who decided in which they are not paid, to her. Very creepy. stronger than rulers,” Mr. Taylor writes. Mr. Putin may have
Chicago Tribune reporters or- California that I would no lon- make billions on advertising. Is set out to revive Russia’s place in the world, but as things
ganizing a union. ger be given a plastic bag to that OK with everyone? Ms. DeCarlo formerly cov- are going now, he seems ready to leave it—sooner or later—
How could these items have transport my groceries? Or per- What if that morning I ered culture, travel and enter- as politically backward and as economically behind as it was
found their way to my phone haps those taking away people’s didn’t want to read about the tainment for the Chicago Trib- when he assumed power.
specifically? I recently wrote a beverage straws? And don’t get great Mr. Grigolo or labor rela- une and the Las Vegas Review-
piece on sexual harassment in me started on the engineers tions at the Chicago Tribune? Journal. Mr. Rubenstein is the author of “The Last Days of Stalin.”
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, July 16, 2018 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Kavanaugh and King Trump Sweden Is the World’s Finest Home for Families

D
emocrats are trying out several themes inferior official under current law. The point is With respect to Erica Komisar’s Ms. Komisar also doesn’t explain
against Supreme Court nominee Brett that none of these issues would make it to the Su- July 12 op-ed “The Human Cost of why it’s the government’s responsibil-
Sweden’s Welfare State,” I believe ity to pay you beyond the additional 16
Kavanaugh, so far with a notable lack of preme Court, though Congress could decide to im-
the author has missed the greater months you’ve already received, espe-
success. One frequent attack is peach Mr. Trump if he did fire point of Sweden’s comprehensive cially when a subsidized day care sys-
that President Trump ap- Have you heard the Mr. Mueller or pardon himself. family-leave and child-care policies. tem exists—again, if you choose to use
pointed Judge Kavanaugh to nominee wants an No President can pardon him- In Sweden, the health of the child, it.
save him in a constitutional self out of impeachment. mother and family are held in such If you would like to transition back
showdown with special coun- American monarchy? One issue that could become high regard that parents are given 16 to the workforce more slowly, you
sel Robert Mueller. a Court case would be if Mr. months off from work—paid—to re- have the right to decrease your work-
Adam Schiff, the Democratic Mueller subpoenas the Presi- cuperate from childbirth and bond ing hours by 25% until your child is
answer to Republican Louie Gohmert, said on dent to testify and Mr. Trump refuses. Judge Ka- with their children. There are count- eight. As an individual, you can always
CNN: “Can the President pardon himself? Can the vanaugh has written in his private capacity that less benefits to this arrangement for negotiate with your employer for other
President pardon his own family? Can the Presi- he believes a sitting President should be spared both mother and child: allowing arrangements as well, such as working
breast-feeding to continue uninter- on a part-time basis for a few years
dent be held liable for obstruction of justice or is from distracting legal inquiries that undermine
rupted for a year if the mother before returning to 100% employment.
he essentially, as [Rudy] Giuliani and others ar- his ability to do his job. But Mr. Kavanaugh chooses, allowing the mother and fa- This family-first approach continues
gue, above the law because he is the law and he reaches no legal conclusions on the issue and sug- ther to take time to be with their throughout the child’s life. You have
can’t be held to be obstructing the law? If these gests that Congress pass a law deferring such new child, and to transition psycho- the right to leave work to take care of
cases go to the Court and Kavanaugh is sitting on matters until a President has left office. logically into this new phase of life. a sick child for up to 120 days per
the Court and rules in the President’s favor, that Even if such a case did reach the High Court, This applies to families who adopt, child, a year for children up to 12
opinion will have no respect in the public because Judge Kavanaugh would merely be one vote of as well. years old. All full-time employees also
it will be tainted by the suspicion that he was cho- nine. There’s no direct Supreme Court precedent have the right to five weeks of paid
sen expressly for that purpose.” on a President testifying about matters directly vacation, allowing parents to spend
Chuck Schumer, the Senate Minority Leader, related to his duties in office. The Court ruled more time in relaxation with their chil-
made a similar point, albeit without the conspir- in 1997 that Bill Clinton wasn’t immune from tes- dren.
Ms. Komisar also claims that child
acy theorizing, by claiming that Judge Ka- tifying in the Paula Jones case, but that was a care is somehow connected to the eco-
vanaugh “seems to have almost a monarchical civil case unrelated to the Presidency. Chief Jus- nomic disenfranchisement of women—
view of presidential power.” tice John Roberts would likely want the Supreme

GETTY IMAGES
an odd argument given that she seems
None of this stands up to legal or political Court to speak with one voice on a matter of to be advocating for fewer working
scrutiny. Mr. Trump wouldn’t need to pardon such constitutional moment. mothers rather than more. But she
himself unless he’s indicted, and an opinion of As for any conflict of interest, Justices fails to mention that Sweden’s nearly
the Justice Department’s Office of Legal Counsel throughout U.S. history have ruled on matters 80% workforce participation among
issued in 2000 says a sitting President can’t be involving the Presidents who nominated them. These features may be why in 2018 women is the highest ever recorded in
indicted. Mr. Mueller and Deputy Attorney Gen- Otherwise Justices Sonia Sotomayor and Elena the World Economic Forum named the EU—an indicator of a growing mo-
eral Rod Rosenstein, who supervises the special Kagan would have had to recuse themselves in Sweden “the best country for par- mentum toward gender parity.
ents,” and US News & World Report Is there room for greater gender
counsel, would have to ignore that opinion to in- the ObamaCare cases. The typical conflict stan-
ranked Sweden #2 for “best country equality in Sweden? Of course. The
dict Mr. Trump. dard is for a Justice to recuse himself if he was for raising kids.” It seems that Swedes movement for pay equity between men
They aren’t likely to do that, but let’s assume directly involved in the case or policy at issue agree, as Sweden consistently ranks at and women continues to gather

.
Mr. Trump pardoned himself pre-emptively. while working in the executive branch. the top for highest fertility rates in strength in Sweden, and we continue

ly
Who would then have the standing to sue for a Far from imposing a monarchy, Judge Ka- Europe: #2 in 2018. to work toward promoting women in
case to go through the courts? Congress couldn’t vanaugh’s legal record suggests he will be more Sweden’s generous parental-leave leadership. We have more work to do,
sue because none of its Article I constitutional skeptical of executive regulatory power than policies make this possible. If you at home in Sweden and globally.
powers would be implicated. No average citizen most liberal judges are today. His appellate opin-
on choose not to go back to work after As the first female ambassador of
could claim a concrete injury either. ions are highly skeptical of the doctrine of Chev- your maternity or paternity leave is Sweden to the U.S., I know we con-
Mr. Mueller would have to indict first to claim ron deference that has given regulators wide lat- up, you have that option too. But Ms. tinue to break glass ceilings every day.
injury, but he’s an inferior officer ultimately sub- itude to rewrite the meaning of congressional Komisar is wrong when she suggests And as a mother myself, I appreciate
that punitive taxation is forcing that I—and my husband—had the abil-
us l,

ject to a President’s executive supervision. Mr. statutes. Democrats who want to defeat Judge
mothers back to work. She refers to ity to stay home with my children for
Trump could fire him, and there’s zero chance this Kavanaugh will have to do better than suggest- the country’s top tax bracket but as long as I wanted, and then get back
or any Supreme Court would say he can’t fire an ing he favors a Trump monarchy.
al a
e
doesn’t mention that the average mu- to work on my own terms.
nicipal tax rate in Sweden, which the KARIN OLOFSDOTTER
majority of Swedes pay, is a much Swedish ambassador to the U.S.
California’s Mortgage Fraud
ci on

lower 32%. Washington

A
mericans can be forgiven for forgetting ment Deposit Fund for budget triage. California’s
what happened last week, let alone six Department of Finance, with the Legislature’s
years ago given today’s media blitz on tacit consent, diverted nearly $300 million to- Numbers Back Up Trump’s Tough Talk on NATO
er rs

all things Donald Trump. But it is worth re- ward servicing debt for housing bonds. This
Your July 12 article about Presi- I appreciate President Trump stand-
membering Obama-era abuses of power that, overtly political use was in violation of the set- dent Trump’s comments at the NATO ing up for the American taxpayer at
far from this week’s headlines, are having their tlement that required the funds be used to help summit include correcting his mis- the NATO summit by demanding that
day in court. homeowners. The victims of this raid were low-
m e

statement that the U.S. spends 4.2% members pay the proper share of their
At issue is an April 2012 settlement that 49 income and minority communities. of gross domestic product on de- GDP on defense. The U.S. has provided
states and the federal government reached with As Judge Hoch explained, the state’s actions fense, when according to NATO the a disproportionate share since NATO’s
m rp

the country’s five largest mortgage servicers: raise serious doubts “not only as to whether the spending is “only” 3.75% of GDP inception.
Wells Fargo, Ally, Bank of America, Citigroup, Legislature may override a federal judgment, (“Trump Presses NATO on Defense,” In other words, for the last 70 years
and JPMorgan Chase. The idea was to hold but also whether the Legislature constitution- page one). Yet later you report with- American taxpayers have been subsi-
banks accountable for their role in the 2008 ally may delegate to an agency the authority to out question Chancellor Angela dizing the cost of defense for other
mortgage crash, and the five doled out more decide how millions of dollars of state funds Merkel’s claim that “Germany is the countries that could afford to pay, and
co Fo

second largest provider of NATO the U.S. defense budget has accrued to
than $20 billion to homeowners and $2.5 bil- shall be spent with virtually no guidance or di-
troops.” trillions of dollars while our national
lion directly to states in the name of principal rection from the Legislature.” In fact, Germany has only the debt simultaneously has ballooned to
reductions, refinancing programs, and other Judge Hoch ordered the state to return $350 fifth-largest military by active per- $20 trillion.
crisis recovery. million and rightly dismissed complaints of ju- sonnel, after the U.S., Turkey, France In 1987 Donald Trump made what I
Republicans controlled the House, so the dicial overreach. Because the settlement origi- and the United Kingdom, and the considered to be the genesis of his
Obama Administration used enforcement power nated in the courts, judges are responsible for seventh-largest when you include re- presidential campaign by publishing
to extort money from the lenders to provide imposing accountability. serves, with Poland and Greece mov- an open letter entitled, “There’s noth-
what amounted to political stimulus spending. The mortgage heist was dubious on the mer- ing ahead of it. Germany’s active mil- ing wrong with America’s Foreign De-
We wrote at the time that this was an election- its, whacking private banks for the blunders of itary manpower is less than 13% the fense Policy that a little backbone
year raid ripe for abuse in state capitals. Fannie Mae and Freddie Mac. Another mistake size of America’s. And this from a can’t cure.” The letter described the
Well, what do you know. Last week California was pretending that a court-approved bank country with the second-largest GDP many ways by which the U.S. govern-
and population in NATO, and the pri- ment allows other nations to take ad-
Third District Court of Appeal Judge Andrea handout would escape California’s political
mary beneficiary of 40 years of for- vantage of us financially.
n-

Hoch rebuked state lawmakers for misappropri- spending maw. The only surprise is that this ward deployments by U.S. troops and For three decades Mr. Trump has
ating funds from the National Mortgage Settle- time the politicians didn’t get away with it. those of other smaller and poorer been waiting for his opportunity to
NATO members. stand up for America and end this
If Ms. Merkel and NATO don’t abuse. The practice of overpaying for
Morouned Over the Detroit River
no

soon take the Russian threat more defense has become so entrenched

M
seriously, they may have Russian among foreign-policy experts that they
exico isn’t paying for that border wall, erty acquisitions. Gordie Howe will connect di- troops back on the German border now make President Trump out to be
but Canada has volunteered to single- rectly to U.S. Interstate 75 and Canadian High- sooner than they’d think. the bad guy for wanting to end it.
handedly finance a bridge to facilitate way 401, relieving the traffic misery. Michigan CARY FULBRIGHT EUGENE R. DUNN
San Francisco Medford, N.Y.
trade with the United States. gets joint ownership of the
Supporting this deal should be A special interest wants finished bridge.
easy for the Trump Adminis- But the Moroun family
tration, but a family special in-
Trump to kill a new wants to maintain its choke- It Took More Than Green Fury to Doom Pruitt
terest has launched a last-ditch U.S.-Canada crossing. hold on cross-border traffic Even taking all of George Mel- spective countries, and neither Mr.
lobbying effort to persuade and an estimated $60 million loan’s assertions as true, he fails to Obama nor Mr. Gore is currently in
President Trump to block this in annual tolls. They’ve sug- prove his central thesis that Scott political office or is even very visible
shovel-ready, multibillion-dollar project. gested building their own new bridge, and Pruitt was forced to resign from the and vocal today. On the contrary, the
Canada is the largest export market for Ameri- they’ve fought tooth and nail against Gordie Environmental Protection Agency be- fact that Mr. Obama’s policies were
can goods, and more than one-fourth of all goods Howe. But their 2012 ballot measure failed to cause he was “derailing the environ- highly unpopular makes it unlikely
exchanged traverse the Detroit River connecting persuade Michigan voters, and some two dozen mental left’s radical effort to tighten that Mr. Pruitt could have been
its grip on the U.S. economy.” chased from his post as EPA adminis-
Detroit and Windsor, Canada. There are only a lawsuits have failed.
(“Pruitt Leaves a Proud Legacy at the trator merely for charting a different
few ways across: the Detroit-Windsor Tunnel, Gordie Howe is scheduled to break ceremo- EPA,” op-ed, July 12). If we grant policy direction.
which is too low for almost all commercial trucks; nial ground in Detroit this week, with construc- that implementing the Paris Agree- CARL LEVITT
the rail and barge system, which is devoted to tion beginning in the fall. But the Morouns ha- ment would cost $2 trillion, that Newark, N.J.
oversized or hazardous goods; and the privately ven’t given up. In an ad on “Fox & Friends” on other countries have faced bad con-
owned Ambassador Bridge that holds a virtual Fox News last month, they appealed directly to sequences from environmentalist
monopoly on cross-border truck traffic. Mr. Trump to revoke a key permit approved by policies and that global warming is Pepper ...
Built in 1929, the bridge is two years younger the State Department in 2013. One ad claimed in fact not happening, it is still nec-
than its longtime owner, Detroit billionaire the Obama Administration granted a waiver “so essary to show that there is a group
And Salt
Matty Moroun. In 2015 large chunks of concrete the new bridge wouldn’t have to use American with the political power to oust Mr. THE WALL STREET JOURNAL

began falling from the bridge onto Windsor steel.” It also suggests that the bridge favors Ca- Pruitt.
Mr. Melloan suggests many possi-
streets. The bridge has four operational lanes nadian workers over Americans.
ble culprits: the green parties of Ger-
on a good day, not nearly enough for the 2.5 Mr. Trump should see through this obvious many and Australia, President
million trucks that traversed it last year. con. Ottawa is picking up the whole tab, so it’s Obama and Vice President Gore.
There’s no direct connection from the bridge reasonable to reject a prohibition on Canadian However, these groups and individu-
to Canadian freeways, and multiple stoplights steel and iron. But all metals used on the bridge als lack the power to force a cabinet
gum up the bridge’s entrances in Windsor. Traf- will be North American, including some from secretary, appointed by the president
fic is often snarled on both sides of the border. the 48 states. The crossing agreement for with the advice and consent of the
Time is money, and delays in border crossings Gordie Howe explicitly states that there “shall Senate, to resign. The foreign green
are expected to cost Americans $15 billion an- be no discrimination . . . in favour of Canada parties wield power only in their re-
nually by 2020, the nonprofit Canada West over the US with respect to any products, mate-
Foundation concluded in 2017. rials, supplies, labour or services.” Letters intended for publication should
Enter the long-planned Gordie Howe Inter- Several hundred Americans are doing prepa- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
national Bridge, slated for construction two ratory work in Detroit, and Canada has brought or emailed to wsj.ltrs@wsj.com. Please
miles west of the Ambassador Bridge. Though some Michiganders to help in Windsor. Canada include your city and state. All letters
American exporters and trucks will use the new is offering the United States the deal of the cen- are subject to editing, and unpublished
bridge, Canada has agreed to finance the entire tury. Apparently the Morouns think Mr. Trump letters can be neither acknowledged nor “At what point did my Beef
returned.
project, including labor, construction and prop- can be suckered out of it. Bourguignon become beef stew?”
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, July 16, 2018 | A19

OPINION

Putin’s Aggression Is the Issue in Helsinki


By David Satter for three years, during which it has This May, however, the Nether-

P
completely changed the course of lands and Australia announced that
resident Trump arrived battle in favor of Bashar Assad. Re- the joint task force investigating the
Sunday in Helsinki in the ports on a possible deal, quoting Is- incident had concluded that MH17
manner of most of his pre- raeli, European and American ex- was shot down by a BUK-M1 belong-
decessors: with little aware- perts, suggest the U.S. could accede ing not to separatists but to the Rus-
ness of recent Russian his- to Mr. Assad’s remaining in power in sian 53rd Air Defense Brigade, based
tory and in apparent confusion about exchange for Russian promises to in Kursk. Jerry Skinner, the aviation
what a meeting with Vladimir Putin limit Iranian influence. lawyer representing 274 relatives of
can achieve. Reacting to concerns Such an outcome would not end the victims, determined with the con-
about Mr. Putin’s career in Russian the Sunni-Shiite split in the Middle fidential help of a former BUK-M1
intelligence, Mr. Trump said at a re- East, and Syrian opposition leaders field commander that the camera in
cent rally: “Putin’s fine. He’s fine. have warned that a U.S. “betrayal” the launcher from which the missile
We’re all fine. We’re people.” Accord- would create the conditions for a ji- was fired was capable of obtaining a
ing to a news report, White House hadist uprising. It would also signal thermal image of the target. The two
advisers describe the Trump-Putin acceptance of Russia’s tactic of at- engines of a large commercial airliner
meeting “as a chance to reset a tense tacking civilian targets, including like the MH17 Boeing 777 could not
relationship.” hospitals, to put pressure on rebel have been mistaken for the smaller,

REUTERS
groups. If such attacks prove success- single engine of a Ukrainian military
ful and are tacitly accepted by the jet. It was also determined with the
Trump shouldn’t make a West, nothing would prevent Moscow Vladimir Putin and Donald Trump meet in Hamburg, July 7, 2017. help of Ukrainian air-traffic control
from using them in the future. that no Ukrainian aircraft were in the
deal on Syria or Ukraine, On Ukraine, Mr. Trump has hinted groups in Ukraine that have attacked murder of the Russian double agent, sky within 30 miles of the Malaysian
or keep silent on Russia’s that he may consider recognizing Rus- art exhibitions, gay events and anti- Sergei Skripal, and the killing of a plane. The evidence suggests that
sia’s claim to Crimea, which Mr. Putin fascist demonstrations seek to ex- British civilian, Dawn Sturgess, with MH-17 or one of three other passen-
crimes against the West. seized in 2014. This could encourage ploit Ukrainian veterans’ resentment. Novichok, a Russian nerve agent. Stur- ger airliners in the air corridor at that
Russia to reactivate the war in East- Far-right paramilitary groups played gess is believed to have accidentally time was targeted deliberately.
ern Ukraine. But the most important a critical role early in the war, and come into contact with Novichok—a Russia has denied involvement in
The tension in U.S.-Russian rela- consequence would likely be to plunge some fear they could turn against chilling reminder that if Russia is left the downing of MH17, producing
tions, however, is the result of Mr. Ukraine into civil unrest. the government, particularly if the free to carry out killings in the West, more than 60 alternative theories,
Putin’s aggression, not a lack of com- The situation already is very tense, West endorses Russia’s seizure of anyone can be a victim. each of which has been debunked.
munication. If the summit leads to the result of corruption, a lack of re- Crimea. Most of all, Mr. Putin will want Mr. For the sake of international air trav-
formal agreements or informal deals form, and the absence of any serious In the case of Mr. Putin’s crimes Trump to be silent about Malaysia Air- elers everywhere, Mr. Trump needs
that legitimize recent Russian ac- Ukrainian strategy to end the war in against the West, no deal is neces- lines Flight 17, which was shot down to raise the evidence of Russian cul-
tions, the aggression will become the Donbas. More than 10,000 people sary. Mr. Trump’s silence is enough. over Eastern Ukraine on July 17, 2014. pability with Mr. Putin.
worse. have been killed in the war zone, and The handful of Republican senators Last year I was asked to be an expert There are no opportunities for
Three issues are vitally important although the conflict is at a stale- who traveled to Moscow early this witness in the case against Russia, good deals with Russian aggression.
to the U.S.: Russia’s aggression in mate, cease-fires are constantly vio- month to protest U.S. election inter- brought by relatives of the 298 vic- Mr. Trump has a chance to make that
Syria, its occupation of Crimea and lated and the death toll rises. Despite ference undercut their message with tims, in the European Court of Human clear.
support for separatists in Eastern an official ban on trade between their presence. The Russians denied Rights. I was prepared to testify that
Ukraine, and its interference in the Ukraine and the separatist areas, long interference and changed the subject. although MH17 might have been Mr. Satter is affiliated with the
West, including election meddling convoys of cars and trucks loaded If Mr. Trump does not raise the issue downed accidentally by Ukrainian sep- Hudson Institute and Johns Hopkins

.
and the nerve-gas attack in Britain. In with alcohol, cigarettes and coal with Mr. Putin, the Russians will con- aratists, the Putin regime’s action in University. His most recent book is

ly
each case, Mr. Putin seeks American carry on illicit business, angering and sider the matter closed. providing the irregulars with a weapon “The Less You Know, the Better You
acquiescence. bewildering Ukrainian soldiers. Mr. Putin also wants Mr. Trump like the BUK-M1 missile showed a wan- Sleep: Russia’s Road to Terror and
Russia has been fighting in Syria Against this background, far-right to keep silent about the attempted ton disregard for human life. Dictatorship under Yeltsin and Putin.”
on
To Restore U.S. Competitiveness, Pass the JOBS Act 3.0
us l,

By Jeb Hensarling some of these burdens on community cannot sustain strong long-term eco- and net wealth, without taking into Concentrating a small issuer’s trad-

N
and regional banks, helping the U.S. nomic growth, much less compete account an investor’s experience ing into a single exchange would
al a
e
early all the economic news remain globally competitive. with China. Small businesses employ and expertise. aggregate liquidity and help attract
since Donald Trump took of- Yet 80% of U.S. business debt fi- almost half of Americans working in The House has also acted to help post-issuance support, including re-
fice has been strongly posi- nancing comes not from banks but the private economy. They include companies that should be ready to search, sales and capital commit-
ci on

tive, and Mr. Trump added to that from investors in capital markets. the Apples, Googles and Amazons of go public but are deterred by the ments by market makers. This
record in May by signing the most They need regulatory modernization, tomorrow. Yet too many startups cost. The average cost of initial reg- would be a game-changer for many
pro-growth banking bill in a genera- too. The House Financial Services never make it off the launchpad. ulatory compliance for an IPO is small issuers.
tion. The Economic Growth, Regula- Committee, which I lead, has been $2.5 million, according to a 2011 re- These are only a few of the capi-
tory Relief and Consumer Protection busy passing more than 20 bills on port by the IPO Task Force. That’s tal-formation bills that the House
er rs

Act, also known as S. 2155, repre- capital formation, known collectively Excessive regulation has why the House would specifically has designed to breathe new life
sents a critical part of Congress’s as the JOBS and Investor Confidence lengthen the “onramp” exceptions into markets suffocating under ag-
and the administration’s efforts to Act of 2018, or JOBS Act 3.0. As part stalled startups and IPOs. for compliance with Sarbanes-Oxley ing regulations. The trouble is that
recalibrate financial regulation after of the agreement to pass S. 2155, the The Senate should now section 404(b), one of the most given the Senate’s filibuster rules,
m e

the regulatory onslaught of the past Senate has committed to take up complex and expensive provisions none of the JOBS Act 3.0 provisions
10 years. this important package. act to get out of the way. of securities law. The JOBS Act 3.0 can become law without the sup-
Since 2010, more than 500 new The JOBS Act 3.0 is principally also expands confidential filings port of at least 10 Democratic sena-
m rp

“economically significant” regula- designed to spur entrepreneurship and “testing the waters” rules to tors. When President Obama signed
tions have been imposed, according by reinvigorating business startups The House is working to address help companies time their IPOs bet- the first JOBS Act in 2012, he called
to the White House Council of Eco- and initial public offerings. U.S. these problems and restore U.S. ter and communicate with accred- it “one useful and important step”
nomic Advisers. Bank compliance startups approached a 40-year low competitiveness. First, to stimulate ited investors without harming re- on the journey “to remove a num-
costs alone have doubled, as per in 2016, and the number of domestic venture capital, the JOBS Act 3.0 tail investors. ber of barriers that were prevent-
co Fo

Federal Financial Analytics. Regula- IPOs, though making a comeback, is would provide legal certainty to Unfortunately, too many compa- ing aspiring entrepreneurs from
tory restrictions on securities and half what it was 20 years ago, ac- “angel investors” and entrepreneurs nies that go public wither on the getting funding.” For the sake of
investment have increased 54% in 10 cording to Scott Kupor of Andrees- by allowing them to interact with- vine because their stocks are thinly America’s long-term growth and
years—and 80% over 20 years—re- sen Horowitz. Last year China pro- out running afoul of securities laws. traded and subject to high volatil- competitiveness, let’s hope support
ports QuantGov. duced more than one-third of the Another measure would expand the ity. A stock with 10,000 shares of for the Job Act 3.0 will be similarly
JPMorgan Chase claimed in its an- world’s IPOs, vs. America’s 11%. This pool of early-stage capital by broad- daily trading volume should not be bipartisan.
nual report for 2016 that Dodd-Frank gap has probably cost the U.S. mil- ening the definition of “accredited regulated the same as one with 10
cumulatively costs America’s econ- lions of jobs. investors” who can participate in a million shares. The House would Mr. Hensarling, a Texas Republi-
omy at least 0.5 percentage point in Without a steady stream of small nonpublic offering. Today’s defini- address this disparity by allowing can, is chairman of House Financial
annual growth. S. 2155 will ease businesses in the pipeline, the U.S. tion relies on criteria like income the creation of venture exchanges. Services Committee.

When the City Comes for Your Home-Based Business


n-

By C. Jarrett Dieterle illegally operating a home-based every neighbor within 600 feet. Do- blogger whose primary business ac- State lawmakers should provide
And Shoshana Weissmann business. She needed to apply for a ing so would have been expensive, tivity was uploading YouTube vid- clarity on the issue. The Arizona

C
permit within seven days or face ac- but that wasn’t all. The city even eos from his house. A record pro- Legislature recently considered one
no

handler, Ariz.—a city of some tion from the city government. Ms. suggested Ms. O’Neil might have to ducer in Nashville, Tenn., who ran a option for reform, the Home-Based
250,000 southeast of Phoe- O’Neil assumed the permit would be attend monthly meetings with city recording studio out of his garage Business Fairness Act. The bill,
nix—describes itself as “built easy to obtain. Her business was con- officials. Her business bothered no drafted by the Phoenix-based Gold-
on entrepreneurial spirit.” You ducted entirely within her home, had one and was entirely self-contained water Institute, would have ex-
could forgive Kim O’Neil for not no signage or visiting customers, and in her home, but Ms. O’Neil eventu- Overzealous regulators are empted “no impact” home busi-
buying it. didn’t require the storage of commer- ally gave up. She shut down her nesses from onerous licensing
Ms. O’Neil and her family are cial equipment or inventory. business, calling the episode “one of targeting yoga teachers, requirements. Under the bill’s
longtime residents of Chandler. Un- Chandler officials didn’t see it the most stressful experiences of my accountants and even framework, if a home-based busi-
til recently she ran a medical-billing that way. They told Ms. O’Neil that life.” ness didn’t employ more than three
company in the town. For years she her three employees were not al- Ms. O’Neil isn’t alone. In 1992 YouTube video creators. nonresident employees, didn’t cause
worked out of leased office space, lowed to work on-site, though they there were about 16 million home traffic or parking issues in its
but when Ms. O’Neil’s father became parked in her driveway and didn’t businesses in the U.S., according to neighborhood, and wasn’t the pri-
ill in 2013 she moved the business cause traffic concerns. Eventually, in census data. By 2012 that number received a cease-and-desist letter mary purpose of the home, then a
to her home. After her father died an attempt to appease city officials, grew to 27 million. Today about half from the city, though none of his business license wouldn’t be re-
in 2015, she continued to run the Ms. O’Neil instructed her employees of all American businesses are home- neighbors had complained. Phoenix quired, despite local laws to the
business out of her house, because to work from their own residences based, according to the Small Busi- refused to grant a permit to a yoga contrary.
she could fulfill her work obliga- rather than her home. ness Administration. At the same instructor who hoped to teach small The bill’s drafters were careful to
tions while caring for her elderly City officials were still unmoved. time, local governments have become classes at her house. It’s hard to retain other local rules—such as fire
mother. They informed Ms. O’Neil that she more aggressive in cracking down on gauge exactly how many cities re- and building codes, pollution con-
In the summer of 2016, Ms. O’Neil would have to build a parking facil- home-based businesses. quire permits for working from trols and noise ordinances—to allow
received a letter from the city of ity, submit architectural drawings of Officials in Cobb County, Ga., home, but cities in all corners of the cities sufficient authority to ensure
Chandler informing her that she was her home, and obtain approval from temporarily shut down a videogame country have such rules. safety. But this did little to placate
local officials. Numerous cities in
Arizona pushed back and killed the

Notable & Quotable: Yale Law


bill. Political leadership in Arizona
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY should make the bill a key priority
Rupert Murdoch Robert Thomson in the next legislative session and
Executive Chairman, News Corp Chief Executive Officer, News Corp
Andrew Ferguson writing July 13 What the hell, they ask, do profes- ensure that all home-based busi-
Matt Murray William Lewis
Editor in Chief Chief Executive Officer and Publisher
at WeeklyStandard.com: sionalism and pedigree have to do nesses are protected from overzeal-
Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT:
with anything? Especially when “the ous municipalities.
Mark Musgrave, Chief People Officer; It took only an hour after Trump’s true stakes of his nomination” are so Some regulation is necessary, and
Jason Anders, Chief News Editor; Thorold Barker,
Europe; Elena Cherney, Coverage Planning;
Edward Roussel, Chief Innovation Officer; announcement for the [Yale] law high? Kavanaugh’s nomination is an nuisance laws can play an important
Anna Sedgley, Chief Operating Officer
Andrew Dowell, Asia; Neal Lipschutz, Standards; school’s flacks to announce the news “emergency,” they tell us, and the role in ensuring that a home-based
Meg Marco, Digital Content Strategy; OPERATING EXECUTIVES: that Trump had chosen one of their school’s implicit embrace of him business doesn’t unduly burden the
Alex Martin, Writing; Michael W. Miller, Features Ramin Beheshti, Product & Technology;
& Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; own. . . . By the next day a collection raises a “disturbing question: Is neighbors. But many local rules hurt
Rajiv Pant, Product & Technology; Ann Podd, News Jason P. Conti, General Counsel; of . . . Yalies had posted a rebuttal to there nothing more important to small businesses with no discernible
Production; Matthew Rose, Enterprise; Tracy Corrigan, Chief Strategy Officer; the school’s press release, with the Yale Law School than its proximity benefit. Not all businesses may be
Michael Siconolfi, Investigations; Frank Filippo, Print Products & Services;
Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; title “Open Letter from Yale Law to power and prestige?” appropriate to run out of a home,
Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; Students, Alumni, and Educators Re- Disturbing or not, it’s the kind of but operations like Ms. O’Neil’s are
Carla Zanoni, Audience & Analytics Nancy McNeill, Advertising & Corporate Sales; garding Brett Kavanaugh.” They question that answers itself. And the the sort of entrepreneurial endeav-
Christina Van Tassell, Chief Financial Officer;
Gerard Baker, Editor at Large were, they wrote, “ashamed of our answer is no sir, there is not—abso- ors that government should be sup-
Suzi Watford, Chief Marketing Officer;
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International alma mater.” lutely nothing whatsoever. The rea- porting, not thwarting.
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher The letter, which is twice as long son Yale Law School exists is to con-
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; as the press release, is a masterpiece vey its “students, alumni, and Mr. Dieterle is director of com-
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head of pure scold. The signers criticize educators” as close as possible to mercial freedom and a senior fellow
EDITORIAL AND CORPORATE HEADQUARTERS: the “press release’s focus on the power and prestige. You can’t charge at the R Street Institute. Ms. Weiss-
1211 Avenue of the Americas, New York, N.Y., 10036 nominee’s professionalism, pedigree, $255,000 for a law degree unless you mann is a policy analyst and the
Telephone 1-800-DOWJONES
and service to Yale Law School.” throw in a healthy portion of P&P. digital media specialist at R Street.
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.

A20 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

Runs on diesel,
sweat and millions
of data points.
Farmers use Watson to analyze
satellite imagery and weather
patterns from the IBM Cloud to
monitor soil conditions, reduce
water waste and increase yields.
ibm.com/smart

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IBM and its logo, ibm.com, Watson, IBM Cloud and Letís put smart to work are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2018.
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.

TECHNOLOGY: THIRD PARTIES KNOW EVERY STEP YOU TAKE B4

BUSINESS & FINANCE


© 2018 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Monday, July 16, 2018 | B1

Last Week: S&P 2801.31 À 1.50% S&P FIN À 1.14% S&P IT À 2.32% DJ TRANS À 0.69% WSJ $ IDX À 0.89% LIBOR 3M 2.336 NIKKEI 22597.35 À 3.71% See more at WSJMarkets.com

Lockheed, Pentagon in F-35 Deal Big Oil


Reinvents
‘Handshake’ accord $12 billion in the third quarter. est military program and al- Ms. Lord didn’t provide a cuts as annual production
The contract would help ready accounts for about a contract value. Lockheed and its climbs toward 150 jets in the
calls for purchase of
next batch of fighters,
ease investors’ concerns about
defense-sector growth that
have weighed on shares in re-
quarter of Lockheed’s annual
sales, as well as significant
shares at partners including
partners have already cut the
average price of the F-35A
early 2020s, from 66 last year.
Lockheed said the average
cost of the jets had fallen signif-
Engines
ending prolonged talks cent months.
The two sides had hoped to
Northrop Grumman Corp.,
BAE Systems PLC and United
icantly in the latest preliminary
deal from the previous batch To Survive
BY DOUG CAMERON

The Pentagon said Sunday


that it had reached a multibil-
finalize a deal almost a year
ago, but discussions have be-
come prolonged by disagree-
ments over the price of the jets,
Technologies Corp., the last
of which finalized a deal on
the engines for the new jets
earlier this year.
$12B
Value of contract for the
but didn’t provide more details.
The company has proposed
that the Pentagon will have to
help fund further cost-cutting
BY RUSSELL GOLD

NOVI, Mich.—The world’s


lion-dollar “handshake deal” flying costs and repair bills for Pentagon officials have purchase of 141 jets. efforts to reduce costs beyond largest oil company has 30 en-
with Lockheed Martin Corp. already delivered aircraft. grown frustrated with efforts the industry-backed efforts al- gineers working away in this
on buying the next batch of Ellen Lord, the Pentagon’s over the past three years to ready under way. Detroit suburb on a project
F-35 combat jets after months chief weapons buyer, an- cut the cost of buying and fly- The Bethesda, Md., com- that sounds counterintuitive:
of wrangling over price and nounced the preliminary deal ing as many as 2,400 of the model used by the U.S. Air Force pany wants to persuade law- an engine that burns less oil.
other terms. on the eve of the biennial radar-evading jets. The F-35 to around $95 million, from makers and the Pentagon to But there is a common-
A final deal would allow the Farnborough Air Show, though fleet would replace most U.S. $122 million five years ago. buy hundreds of the jets in a sense explanation for why the
world’s largest defense con- last week she canceled plans jet fighters over the next 30 They aim to reduce the single, multiyear contract in Saudi Arabian Oil Co., known
tractor by sales to book the to attend the U.K. event, citing years at a cost of more than price to roughly $80 million the early 2020s to harvest as Saudi Aramco, wants a
bulk of the contract for 141 jets other commitments. $400 billion. U.S. allies plan to by the end of the decade. But economies of scale from in- more efficient internal com-
likely to be worth more than The F-35 is the world’s larg- buy up to 500 more jets. Pentagon leaders want bigger creased production. bustion engine. It is trying to
protect its market share by
slowing a potential exodus to
PERSONAL A number of recent hacking incidents highlight the vulnerabilities electric vehicles.
$20,000 David Cleary, head of Saudi
TECHNOLOGY
By David Pierce
of virtual-currency platforms. $830 Aramco’s Detroit Research
2018 YTD Center, said the company’s
More than Exchange/ Date goal with its research is to

Handwriting $1.6 billion preserve the market for fuel.


platform Origin of hack Value of coin loss, in millions
To that end, he said, any

.
Coincheck Japan Jan. 2018 $535 breakthroughs in engine de-

ly
Finds Ways has been lost from cyberattacks
on cryptocurrencies*
Mt. Gox
BitGrail
Japan
Italy
Jan. 2014
Feb. 2018 170
450
15,000
signs would be widely shared.
“We are trying to get tech-
nology into production, and

To Fit Into
onBitfinex Hong Kong Aug. 2016 77 we want to be very fast,” Mr.
NiceHash Slovenia Dec. 2017 70 Cleary said.
While electric-vehicle adop-

Digital Life
DAO Germany April 2016 55 tion remains small globally,
and is expected to rise gradu-
us l,

Coinrail S. Korea June 2018 40


ally, the prospect of a large-
When I go Youbit S. Korea April 2017 35 scale shift is setting up a
al a

$471
e
to meetings, I Parity U.K. July 2017 32 showdown between oil compa-
normally bring 2014 10,000 nies and utilities over who will
Bithumb S. Korea June 2018 32
my laptop to power tomorrow’s cars.
ci on

take notes. I Losses from cyberattacks on Bancor Israel July 2018 24 For oil companies, gasoline
type pretty cryptocurrency exchanges and diesel are among their
*From exchanges, initial coin offerings and other digital currency platforms
fast, and it’s nice to have my and platforms each year, most valuable products. For
Sources: CoinDesk (bitcoin price); Autonomous Research (attacks); the companies (countries)
email right there in case things in millions of dollars utilities, electric vehicles rep-
get boring. But recently I’ve resent a radical way to jolt de-
er rs

been doing the unthinkable— mand for power, which has


bringing pen and paper, and been largely flat in recent
writing notes by hand. I have 5,000 years in much of the devel-
to tell you, it’s been great. $225 oped world.
m e

Handwriting has lost its 2016 The internal combustion


importance in society. Some $185 engine fires the overwhelming
schools don’t even teach cur- 2017 majority of the world’s vehi-
m rp

sive anymore. Yet studies How many U.S. dollars cles. Only 1.3% of new cars
have repeatedly shown that one bitcoin buys registered last year were elec-
writing by hand can help you tric cars, according to the In-
process and remember infor- $8 ternational Energy Agency.
2015
mation far better than typ- But the number of battery-run
co Fo

ing. A 2014 study found that 2014 ’17 ’18 electric vehicles is growing.
when students typed notes, There were 3.1 million globally

Thefts of Cryptocurrencies Mount


they tended to just tran- in 2017, up from 2,700 a de-
scribe whatever the profes- cade earlier, the group said.
sor said, while those work- In the U.S., electric vehicles
ing with pen and paper were could help double, or nearly
mentally summarizing and BY STEVEN RUSSOLILLO 19, Seoul-based Bithumb said curred at Japanese exchanges have been in the region, with triple, annual growth rates for
paraphrasing, which led to AND EUN-YOUNG JEONG it lost over $30 million in bit- Mt. Gox in 2014 and Coin- over $800 million in crypto- power demand over the next
better test scores. coin and other cryptocurren- check Inc. this past January. currencies stolen—already three decades, according to a
Executives at Bithumb, a cies in a cyberattack. It has The most recent hack took more than any other calendar new study from the National
popular cryptocurrency ex- since recovered some, lower- place on July 9, when hackers year. Cyberthieves could be Renewable Energy Laboratory.
change in South Korea, sensed ing its loss estimate to $17 swiped $23.5 million in crypto- targeting more popular trad- Such projections are cause
Writing by hand can something awry last month. million. currencies from an Israeli plat- ing venues, a potential risk for for concern in the oil industry.
help you remember After a rival was hacked Since 2011, there have been form called Bancor. investors in the U.S. and else- A little more than one-quarter
n-

earlier in June, Bithumb expe- 56 cyberattacks directed at The increasing frequency of where. of all oil is used to make gaso-
information far better rienced a rise in failed user cryptocurrency exchanges, ini- hacks points to the vulnerabili- Unlike stock exchanges, line. If that market starts to
than typing. logins and unauthorized access tial coin offerings and other ties of cryptocurrencies and which facilitate trading but get eroded by electric vehicles,
attempts, according to an ex- digital-currency platforms the platforms people use to don’t actually hold securities Big Oil could be left with idled
no

change official. Bithumb added around the world, according to trade them, adding to broader on behalf of investors, many refining capacity and too
more online security personnel an analysis by Autonomous investor worries about fraud cryptocurrency exchanges much crude, which would
At the same time, pen and to conduct extensive checks Research, a London-based fi- and lax regulation. charge fees for trading and lower prices, says Phil Ver-
paper lack advantages of the and moved more of its digital- nancial-services research firm, Many attacks have centered store currencies for their cus- leger, an oil economist.
digital age. If you leave your currency reserves into offline bringing the total of hacking- on Asia, a hotbed for crypto- tomers. Analysts say that “If they can make engines
notebook at home, you can’t storage. related losses to $1.63 billion. currency trading. Four of the makes cryptocurrency ex- more efficient, they can slow
just grab your notes on your It wasn’t enough. On June Some of the biggest hacks oc- seven hacks so far this year Please turn to page B2 Please turn to page B2
work laptop. It has no search
button or sharing tool. You
don’t have a backup if it gets
lost or destroyed.
I’ve discovered a surpris-
INSIDE USDA Takes Aim at High-Speed Trade
ingly rich middle ground of
handwriting-optimized de- BY ALEXANDER OSIPOVICH
vices that channel the benefits
of the digital revolution. I’ve The U.S. government is tak-
rediscovered the joy of writ- ing steps to protect agricul-
ing things down the old-fash- tural markets from high-fre-
ioned way and found thor- quency traders—a move some
oughly modern things to do say will make little difference
with them once I’m finished. down on the farm.
If you own a pen-friendly Starting on Aug. 1, the Agri-
device, try writing on it.
Have an iPad Pro or the
AMBIEN’S PRICE culture Department
change how it releases crop
will

most recent iPad? Consider JUMPS UP and livestock reports. It is an


plunking down another $100
for an Apple Pencil. You can
WITH A JOLT attempt to placate critics who
say fast traders are reaping
sketch and write in Apple’s profits in wheat, corn and soy-
own Notes app, but I’m espe- PHARMACEUTICALS, B3 bean futures at the expense of
DANIEL ACKER/BLOOMBERG NEWS

cially fond of GoodNotes, an slower investors.


$8 app that offers note takers The agency says computer-
lots of creative features. Like- ized traders currently can get
wise, if you have a Surface or its data about two seconds be-
other Windows Ink-friendly fore everyone else—eons in to-
PC, you can open up OneNote day’s electronic markets.
and write away with Micro- “The new procedures will
soft’s $100 Surface Pen. A level the playing field and
number of Chromebooks offer make the issuance of the re-
pen support, too, though ports fair to everyone in- The Agriculture Department will stop giving news outlets early access to crop and livestock data.
their precision and speed volved,” Agriculture Secretary
don’t match other platforms.
The pen isn’t going to re-
INDEXING Sonny Perdue said in a press
release last week.
released. In “media lockups,”
journalists give up their mo-
when the USDA lifts restric-
tions on distributing the data.
line, a process that takes
roughly two seconds, accord-
place your keyboard or touch SPURS PERSIAN The USDA is ending a de- bile phones and sit in sealed A number of news organiza- ing to the agency.
screen, but when you’re in a
meeting and don’t want to
GULF BONDS cades-old practice in which
news organizations get ad-
rooms to review the reports to
ensure they aren’t leaked pre-
tions transmit the data over
high-speed cables to their cli-
The result is that traders
can get quicker access to po-
hide behind a big screen, or vance access to its reports so maturely. ents, including tech-savvy tentially market-moving infor-
when you’re marking up a con- CREDIT MARKETS, B9 journalists can write articles The problem is what hap- trading firms. Simultaneously, mation from news organiza-
Please turn to page B4 before the data are publicly pens at noon Eastern time, the USDA posts the data on- 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, July 16, 2018 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE


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

A
Abraaj Group...............B6
Adyen .......................... B2
Airbus...............A1,B2,B3
General Mills...............B2
Global Asset
Management.............B2
Greensill Capital.........B2
Platform Specialty
Products....................B6
PricewaterhouseCoopers
...................................A12
Disrupter Startup Gets Injection
BY MIRIAM GOTTFRIED money early in exchange for a finance businesses at Morgan General Atlantic, in an inter-
Alphabet....................A12 H R
Amazon.com.............A12
small fee—usually lower than Stanley and Citibank, in an in- view. “Lex is nothing if not
Hang Seng Indexes.....B6 Rosneft Oil................B10
Ant Financial Services Hong Kong Exchanges Royal Dutch Shell.......B2
Private-equity firm General 1%. It later collects the full terview. “We’re using technol- ambitious. We made this in-
Group.........................B2 and Clearing..............B6 Atlantic has made a minority value of the invoice from the ogy to make it possible for vestment based on their
S
Arconic ........................ B6 I investment in U.K. lending large company. small companies to get funded growth story.”
AT&T............................B4 Safran..........................A4
Ikea............................A12 Saudi Arabian Oil ....... B1
startup Greensill Capital, con- Greensill, which has since at rates that would otherwise General Atlantic takes
Aytu BioScience..........B3 tinuing its strategy of placing expanded into other types of have only have been available stakes in rapidly growing com-
International Securus Technologies.B4
B Consolidated Airlines Sempra Energy ........... B2 bets on companies that use working-capital finance, works to much bigger companies.” panies and partners with their
BAE..............................B1 Group ........................ A4 Siemens .................... A12 technology to try to disrupt the with suppliers to companies Mr. Greensill said he hopes founders to prepare them for
Bancor ......................... B1 iShares emerging- Skanska.....................A12 traditional financial system. such as Vodafone Group PLC, to expand into new markets their next phase, often an ini-
Bank of America.........B6 market bond exchange- Sony Pictures
traded fund...............B9
The New York private-eq- General Mills Inc., Airbus SE where General Atlantic has an tial public offering. The firm
Bithumb.......................B1 Entertainment..........B6
uity firm is investing $250 and Boeing Co. has made a number of invest-
BlackRock....................B9 J Spirit AeroSystems
Boeing .............. A1,B2,B3 Holdings....................A4 million, valuing Greensill at Greensill’s sources of capi- ments in the financial-services
JPMorgan Chase.........B9
C Sprint .......................... B4 $1.64 billion, the two compa- tal include deposits in a bank and technology arenas, includ-
K
nies told The Wall Street Jour- it owns in Germany, the sale of
Greensill may be close ing a recent wager on China’s
Carlyle Group..............B4 Kroger........................A12
T
CFM International......A4 Teralytics.....................B4 nal ahead of a planned an- bonds composed of invoices it to a big hire: Former Ant Financial Services
Coincheck .................... B1
L nouncement Monday. has purchased and bundled to- Group. General Atlantic also
3Cinteractive...............B4 U.K. Prime Minister
Coinrail........................B2 LocationSmart ............ B4 T-Mobile US................B4 Greensill, which provides gether as well as four proprie- was an investor in Dutch pay-
Lockheed Martin.........B1
Comcast.......................B6
Credit Suisse Group ... B2 M
U working-capital financing to tary supply-chain finance David Cameron. ment-technology company
United Technologies companies around the world, funds managed by Credit Adyen NV, whose shares have
D Mastercard..................B4 ............................... A4,B1 has been closely held until Suisse Group AG and Global soared since its June IPO.
Dalian Wanda Group .. B6 Merrill Lynch...............B6
Mt. Gox ....................... B1 V now. General Atlantic is its Asset Management Ltd. The In addition to the invest-
E Murray Energy............A3 Verizon Communications first institutional investor. lender said it posted an annual established presence, includ- ment from General Atlantic,
Edison International...B2 N .....................................B4 Founded in 2011, Greensill profit for the first time in ing Brazil, India and China, Greensill may be on the verge
Exxon Mobil..............B10 Vodafone Group..........B2 began as a supply-chain fi- 2017, logging earnings of $32.9 and to find ways to support of landing a big-name hire:
NCC............................A12
F Netflix.......................B10 W nance provider. Many large million on revenue of $115.9 more customers. Former British Prime Minister
Facebook..............A12,B4 Northrop Grumman....B1 Walmart....................A12 companies pay suppliers 30, million. “We’re trying to lever tech- David Cameron is “considering
G NYSE Euronext...........B6 X-Z 60 or 90 days after purchase, “Today, almost all working nology to transform the finan- a role” with the company, but
General Atlantic..........B2 O-P Xiaomi.........................B6 which can create cash-flow capital is provided by banks,” cial-services space, and in ef- “no final decision has been
General Electric..........A4 Ocado Group.............A12 Zumigo ........................ B4 problems for the suppliers. said Chief Executive Lex fect, fill voids that have been made,” a spokesman for Mr.
Greensill’s financing allows Greensill, who previously built left behind by the large Cameron said in an emailed
those suppliers to get their and led the global supply-chain banks,” said Bill Ford, CEO of statement.
INDEX TO PEOPLE
A I O
Arnopolin, Yacov.........B9 Imbourg, Sébastien....A4 O'Neal, Stanley...........B6
B Irwin, Scott.................B9 P
Bernardini, Eric...........A4 J Petitcolin, Philippe.....A4
C Jafar, Hamid ............... B6 Phillips, Carter............A4
Cameron, David...........B2 John Deere................A12 R
Cleary, David...............B1 K Reid, Blake..................B4

.
Creamer, Rob .............. B9 Kavanaugh, Brett ....... A4 S
E

ly
Kronfol, Mohieddine...B9
Schwarzenegger, Arnold
Enders, Tom................A4 L .....................................B6
Epps, Daniel................A4 Levin, Peter ................ A2 Scott, Stacy................B2
F Lord, Ellen...................B1 Sedunov, John.............B2
on
Faury, Guillaume.........A4 M-N Statica, Robert ........... B2
Ford, Bill......................B2 Maier, Jürgen............A12 T
G-H McCloud, Luke ............ A4 Thompson, Chet..........B2
us l,

Gidari, Al.....................B4 McLarty, Scott............A4 V


Grauer, Kim.................B2 Moy, Laura..................B4
Verleger, Phil .............. B1
Greensill, Lex..............B2 Muilenburg, Dennis....A1
al a

W
e
Gui-im, Lee..................B2 Mulla, Habib al...........B6
Hovanec, Ron..............B9 Naqvi, Arif...................B6 Walsh, Willie..............A4
ci on

Crypto Lee as she was leaving a block-

DAVID PAUL MORRIS/BLOOMBERG NEWS


chain company info session
this past week. “I haven’t lost

Thefts faith in [crypto] coins—just


er rs

exchanges.”
There are 205 cryptocur-

Mount rency exchanges in operation,


many of which are based in
m e

Asia, according to research


Continued from the prior page firm CoinMarketCap.
changes sitting ducks. Thieves Chainalysis, a New York-
m rp

who manage to break in can do based blockchain-analytics A prospective shift to electric vehicles is setting up a showdown between oil companies and utilities over powering tomorrow’s cars.
something akin to robbing a firm, said South Korea has
bank—getting hold of valuable
cryptocurrencies that they can
cash out of.
been a ripe area for hackers
because of the market’s rapid
growth in a short amount of
Big Oil tric vehicle-charging stations
died amid opposition from the
state’s gas-station owners.
cility in Michigan, Saudi
Aramco isn’t waiting for the
next round of the political fight.
way to outfit a Volvo truck
with the technology as well as
onboard carbon capture, an-

Works on
co Fo

Cryptocurrency exchanges time. The South Korean won is “We’re more engaged at the In one bay, a large truck other idea Aramco is working
are “easy to breach, with mini- one of the most commonly state and local level on this is- diesel engine has been retro- on. The system will separate
mum effort and expense from used fiat currencies for trad- sue than we have ever been fitted to run on gasoline, using the carbon dioxide from the
attackers and with maximum
return on investment,” said
Robert Statica, president of
ing cryptocurrencies.
“There simply are many tar-
gets there,” said Kim Grauer,
Engines before,” said Chet Thompson,
president and chief executive
of the American Fuel & Petro-
a technology that increases
engine efficiency by modifying
the fuel and running the en-
truck’s exhaust, which then
can be off-loaded at truck
stops for industrial reuse or
BLAKFX, a cybersecurity firm senior economist at Chainaly- Continued from the prior page chemical Manufacturers, a gine at a higher compression. storage. Aramco also hopes to
in New York. sis, adding that “some ex- the loss of market share,” he trade group including most of A modified Ford F-150 pickup reduce the truck’s fuel con-
Recent cyberattacks have changes have not been able to said of Aramco’s efforts. the nation’s refiners. truck was able to get 37 miles sumption by up to 10%.
hurt market sentiment. After a maintain the proper level of In the U.S., the oil industry Outside of the U.S., some oil a gallon with the Aramco tech- “Why is this the right thing
steep slide this year, bitcoin defense as they have grown.” has long fought incursions companies are approaching nology. The Environmental to do?” asked Mr. Cleary, the
dropped further after the Regulatory gaps in South from the ethanol industry. The the rise of electric vehicles Protection Agency rates the facility’s head. “We are going
Bithumb incident in June. Cur- Korea also make it less com- utility industry, a powerful differently. Royal Dutch Shell truck at 21 mpg for combined to be using internal combus-
rently sitting at around pelling for exchanges to step force in statehouses around PLC has bought a charging highway/city driving. tion engines. Let’s make them
n-

$6,300, bitcoin trades near its up security efforts, said Stacy the country, could be a more company and is installing fast- Elsewhere, work was under better.”
low for the year and well off Scott, managing director at cy- formidable opponent. charging points at its fuel sta-
its record near $20,000 estab- bersecurity and investigations Utilities around the U.S. are tions in Europe. China’s gov-
lished in December. firm Kroll. pushing politicians and regula- ernmental support has made
no

The hacks are “bad for us- A government inspection of tors to let them build car- the country the world’s largest
ers, bad for exchanges and ter- 21 cryptocurrency exchanges charging networks, arguing market for electric vehicles.

GO TO WORK
rible for confidence,” said in South Korea earlier this they would help spur electric- In the U.S., the burgeoning
John Sedunov, an assistant year found that no firm met all vehicle growth that in turn clash between the power and
professor of finance at Vil- 85 inspection standards estab- will help reduce pollution and oil industries flared up in
lanova University. “If I don’t lished by authorities, but there greenhouse-gas emissions. April at a meeting of the

IN BLISSFUL
have confidence in where I’m is no law to penalize ex- And they are seeking approval American Legislative Exchange
storing my crypto assets or changes that fall short. from several states to pass on Council, a group that creates
where I’m investing, how can I Bithumb said in late June it the cost of these networks to model state laws and advo-
really trust any of this?” is working with other ex- electric customers through cates for free markets.

COMFORT
Not all investors are ruffled changes around the world to higher rates. The refiners’ lobby pushed
by the hacks. Lee Gui-im, a re- track down and recover stolen “We are very interested in model legislation that would
tiree in Seoul, hasn’t been able digital coins that may have reducing greenhouse gas emis- prevent regulated utilities from
to access her cryptocurrency as- been moved to other trading sions in the states and the charging ratepayers to create a
sets for a month after Coinrail, venues. Coinrail planned to re- country,” said John Betkoski III, charging network. The power
the other South Korean ex- sume services on Sunday after president of the National Asso- industry defeated the measure,
change breached last month, a monthlong operating hiatus. ciation of Regulatory Utility but the issue remains a point
temporarily shut all services. The exchange said it has so far Commissioners. “Utility compa- of contention. It is expected to
That hasn’t discouraged the 61- recovered three types of vir- nies see an opportunity, come up again at the group’s
year-old from continuing to at- tual currencies that were sto- frankly, to grow their business.” next meeting in August.
tend meetups to identify her len, but hasn’t disclosed how In May, California regula- At its engine-engineering fa-
next cryptocurrency investment. much it lost. An earlier Wall tors approved a plan by San
“Every exchange is in dan- Street Journal article esti- Diego Gas & Electric, part of
ger of hacks. This isn’t just mated that $40 million in digi- Sempra Energy, to spend All Fueled Up
Coinrail’s problem,” said Ms. tal coins was taken. $136.9 million on a network of
vehicle-charging stations. Last Global oil consumption
month, Edison International’s for gasoline
Southern California Edison
27.5 million barrels a day
submitted a proposal to spend
$760 million. The state also
approved an additional $578 25.0
million to assist the electrifi-
cation of trucks, buses, fork- The Un-Sneaker™ goes to work.
lifts and other heavy equip- 22.5
To your colleagues, it’s a fashion statement.
ment, with many of the
targeted vehicles in use at Cal- To your feet, it’s an all-day festival of
20.0
ifornia ports. lush, leather-lined comfort. But let’s
Utilities have proposed
spending an additional $500
keep that confidential.
17.5
JEAN CHUNG/BLOOMBERG NEWS

million in New York, New Jer-


sey and Maryland to build out
a network of charging stations 15.0
to make it easier for electric
cars to refill their batteries. 12.5
Oil companies are begin- Free shipping and returns. Order online or call 844.482.4800.
ning to push back. A bill in 1980 ’90 2000 ’10
Colorado earlier this year to Source: BP Statistical Review
The frequency of hacks points to cryptocurrencies’ vulnerabilities. allow utilities to install elec- THE WALL STREET JOURNAL.
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, July 16, 2018 | B3

BUSINESS NEWS

Aircraft
Makers
Ambien’s Price Is Rude Awakening
Some drugmakers
Uneasy keep boosting costs
of products, despite
Over Trade mounting pressures
BY ANDREW TANGEL BY JONATHAN D. ROCKOFF
AND ROBERT WALL
A small Colorado drug-
LONDON—Aerospace execu- maker recently raised the

SMILEY N. POOL/THE DALLAS MORNING NEWS/ASSOCIATED PRESS


tives at plane makers Boeing price for a spray form of sleep
Co. and Airbus SE, along with aid Ambien by as much as
their suppliers, said they are 843%, the latest example of
worried new trade barriers how some firms are increasing
could drive up plane manufac- prices despite mounting pres-
turing costs and lead airlines sure.
to put off purchases. So far this year, companies
“Aerospace thrives on global have made 3,653 price in-
trade—free and open trade,” creases on 1,045 different drug
Boeing Chief Executive Den- products, according to Ray-
nis Muilenburg said in London mond James & Associates,
on Sunday ahead of the Farn- even as President Donald
borough International Airshow, Trump and other members of
the industry’s flagship gather- his administration have criti-
ing that kicks off Monday. cized such moves.
“We’re concerned about The median price increase
some of the ongoing talk is 8%, but some specific in-
about tariffs and trade restric- creases have been far greater. Companies have made 3,653 price increases on 1,045 different drug products this year, with a median price increase of 8%.
tions,” the head of the U.S.’s Aytu BioScience Inc. raised
largest exporter told report- the list price of a 7.7 milliliter by Mr. Trump—haven’t re- Martin Shkreli’s Turing Phar-
ers, though he added that bottle of its sleep aid Zolpi- Prescribing Increases versed course. maceuticals AG, has drawn
there had been no material ef- mist to $659 from $69.88, Companies that have raised the list prices of their drugs this year “These types of increases criticism from public officials
fect on the company so far. while increasing the price of a indicate that public criticism, and others because the com-
Earlier this month, Tom 4.5 milliliter bottle by 747% to COMPANY DRUG NAME DISEASE PRICE CHANGE IN 2018 even from President Trump, panies didn’t invest in devel-
Enders, chief executive of Eu- $329.50, according to RELX Acorda Ampyra Multiple sclerosis
are not enough to change the oping the drugs.
19.9%
ropean rival Airbus, said pro- PLC’s Elsevier Gold Standard trajectory of drug costs,” said Mr. Disbrow said Aytu’s in-
tectionist sentiments could Drug Database. The drug is a Depomed Gralise Shingles pain 18.7% Michael Rea, chief executive of creases for Zolpimist were dif-
dampen global growth. spray version of zolpidem, the Rx Savings Solutions, which ferent than other examples be-
Worries over shifting trade key ingredient in Ambien, Otsuka Abilify Schizophrenia 9.9% sells software to help employ- cause the drug is for a lifestyle
policies, new tariffs and other which is widely available as ers and health insurers lower condition rather than a life-
barriers come as plane makers cheap generic pills. Endo Vasostrict Blood pressure 9.9% their drug spending. threatening disease, and ge-

.
including Boeing, Airbus and Chief Executive Josh Dis- White House officials didn’t neric options are available.

ly
Embraer are looking to tout brow said Aytu raised Zolpi- Novartis Afinitor Cancer 9.9% respond to a request for com- He added that Aytu doesn’t
their latest deals to drum up mist’s list price to bring it in ment, but Mr. Trump has peri- depend on the Zolpimist price
buzz and new business. line with the cost of other Intercept Ocaliva Liver 7.5% odically criticized high drug increases to raise sales. Aytu
The Trump administration brand-name sleep drugs. He on prices since his campaign, and reported $2.7 million in reve-
Roche Genentech Herceptin Cancer 6.1%
this year imposed tariffs on a said Zolpimist was for the small promised to take action. In nue for the nine months end-
range of imports from alumi- number of patients willing to Shire Gattex Short bowel 5.7%
May, the president proposed ing March 31.
num to washing machines pay more, often out of their various initiatives to curb high Mr. Disbrow said he ex-
from China, the European own pockets, for the oral spray drug prices. Later that month, pected most sleep-aid patients
us l,

Celgene Revlimid Multiple myeloma 5.0%


Union and others, saying pre- than for lower-priced pills. he predicted “massive” drug- would buy the generics, and
vious trade deals treated the “For those people who want Melinta Orbactiv Skin infection 3.0% price cuts. health plans would require
al a
e
U.S. unfairly. a Cadillac, they can pay for it,” Aytu, of Englewood, Colo., people to try the generics be-
Airlines are in buying mode Mr. Disbrow said in an inter- Source: Rx Savings Solutions THE WALL STREET JOURNAL. raised the price of Zolpimist fore looking at other options.
amid rising passenger demand, view. last Tuesday, about a month Doctors write more than 30
ci on

and airplanes have so far largely Aytu’s increase in the list ported the Zolpimist in- July 1 on more than 40 of its after buying the rights to sell million zolpidem prescriptions
avoided being targeted by tariffs price of Zolpimist was creases. prescription drugs. Pfizer said the drug in the U.S. and Can- a year, though fewer than
from the U.S. and China The among the biggest increases Some price increases its price rollbacks would re- ada from Magna Pharmaceuti- 2,000 of them for Zolpimist,
U.S., though, has taken aim at taken in the middle of this caught politicians’ attention. main in effect through the end cals Inc. The practice of buy- he said.
some airplane parts imported year, according to Elsevier’s Pfizer Inc., under pressure of the year at the latest. ing rights and then raising the Generic versions of the
er rs

from China. China had threat- data on the wholesale-acqui- from Mr. Trump, said Monday Other drugmakers that price, by companies including sleep aid sell for less than $10
ened to target finished jetliners, sition cost of prescription that it was deferring some raised prices recently—but Valeant Pharmaceuticals under for a 30-day supply, according
but so far hasn’t. drugs. Bloomberg earlier re- price increases it had taken weren’t singled out by name then-CEO Michael Pearson and to Mr. Rea.
m e
m rp
co Fo
n-
no

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B4 | Monday, July 16, 2018 * *** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Third Parties Phones Track Step by Step


A look at scenarios in which companies can make use of your whereabouts
Know Exactly BY SARAH KROUSE

Where You Are The smartphones at the


center of consumers’ lives
generate vast streams of
BY DREW FITZGERALD last week on internet privacy. data on where they live,
Blake Reid, an associate work and travel, and how
Cellphone carriers usually clinical professor at the Univer- wireless giants like AT&T
ask for their customers’ bless- sity of Colorado Law School, Inc. and Verizon Communi-
ing before listing their phone said this “chained consent” cations Inc. use that per-
numbers, sharing their ad- process likely violates Section sonal data and share it with
dresses or exposing them to 222 of the Telecommunications other companies has come
promotional emails. Act of 1996, which sets privacy under increased scrutiny.
But seeking permission to standards for carriers. The four major U.S. carri-
share one particularly sensi- Section 222 updated de- ers said in June that they

KURT WILBERDUNG/THE WALL STREET JOURNAL


tive piece of information—a cades-old telecom law by mak- would stop selling access to
cellphone’s current location— ing phone-call records subject the locations of individual
often falls to one of several to privacy protections. Con- customers to two compa-
dozen third-party companies gress hasn’t passed compre- nies—LocationSmart and Zu-
like Securus Technologies hensive privacy legislation migo Inc.—following accusa-
Inc. and 3Cinteractive Corp. since then, though it repealed tions that a LocationSmart
Carriers such as AT&T Inc. Federal Communications Com- customer misused the infor-
and T-Mobile US Inc. rely on mission broadband privacy mation. (The Federal Commu-
those firms to vouch that they regulations enacted during the nications Commission has re-
obtained users’ consent before Obama administration. ferred the LocationSmart
handing over the data. The Mr. Reid said Securus is the issue to its enforcement divi-
companies that pay to access most flagrant example to come sion, a spokesman said.) But
to light because the company those two middlemen aren’t
used its website as an investi- the only companies that have or intersections, an AAA as city or street,” the Syni- public transportation and ur-
gative tool with little oversight. had or continue to rely on ac- spokeswoman said. She said verse spokeswoman said. ban-planning projects.

75
How many firms had access to
Securus didn’t respond to a
request for comment.
Other industry experts doubt
the carriers’ location-sharing
cess to the locations of cell-
phone users to make money.
Location data controlled
by carriers is different from
the company has “other meth-
ods in place to locate mem-
bers” but declined to com-
ment on the options available.
Ted buys sneakers while
he is traveling in Germany.
Syniverse, owned by pri-
Teralytics works with one
of the major U.S. carriers and
receives an “anonymized rep-
resentative sample” of location
Verizon customers’ locations. practices violate any law. the data collected by applica- vate-equity giant Carlyle data, a spokeswoman said.
The FCC in 2007 imposed tions such as Uber or Face- Susan attends a confer- Group, in the past worked Teralytics is only allowed
new broadband rules that left book. Because those apps get ence in London and then with Mastercard Inc. on to use the data to help “city
location data gathered from location data directly from a spends a week in Paris. fraud-prevention services planners and transport ser-
this information use it for ev- internet service outside of Sec- consumer’s phone—and not While she is in those coun- that would match a trav- vices understand how peo-
erything from preventing tion 222 strictures. from wireless carriers—con- tries, her mobile phone relies eler’s location with where he ple’s mobility needs are

.
credit-card fraud to providing “That was a green light for sumers opt into sharing their on local wireless networks. or she was making pur- evolving, resolve transport

ly
roadside assistance. telecommunications carriers to location in exchange for or as Tampa-based Syniverse chases. hot spots and make sure that
That arrangement embar- monetize customer-location part of receiving a service. Technologies LLC helps wire- A spokesman for the transport services meet ev-
rassed the wireless industry data,” said Stanford University Here’s a look at five sce- less carriers around the credit-card company said eryone needs,” she said.
earlier this year after it was law professor Al Gidari, who on narios in which companies world square up on customer work on location-based
discovered that Securus, a helped draft the location-data or carriers have relied on or roaming charges between fraud-prevention products A retailer wants to know
prison phone operator, created guidelines that wireless industry considered using cellphone their networks. As a result, stopped last year. Represen- how many people walk past
a website that let law-enforce- group CTIA used to self-regulate. location data. the company sees which tatives for Syniverse said the each of its locations.
ment agencies find the loca- About 75 companies had ac- country a mobile user is in, Mastercard fraud service Pinsight Media, a subsid-
us l,

tion of noninmates without cess to Verizon Communica- John pulls over to the side which network they receive “was never fully launched so iary of Sprint Corp., uses an-
their permission. tions Inc. customers’ locations, of a highway to call for service from, the quality of we never received any coun- onymized data on how the
al a
e
All four national carriers the company said in a June let- roadside assistance. that service and what types try code information.” wireless carrier’s subscribers
said in June that they would ter to Sen. Ron Wyden (D., Ore.), The American Automobile of communication a traveler shop, use apps and travel in
cut off two companies that who has pressured telecom Association in the past joined has used, a Syniverse A city-planning board is the U.S. to give retailers, fi-
ci on

handled the data Securus had companies to disclose more in- with LocationSmart, accord- spokeswoman said. considering creating a bus nancial-services companies
accessed and promised new formation about their data-pro- ing to a company press re- “This information that route and wants to know and other firms data on their
safeguards, though they didn’t tection measures. Verizon said lease. Members of the auto Syniverse receives as part of how many people live in a tastes and habits. Apps also
detail how it would be done. it would wind down its relation- club had the opportunity to providing its services to the neighborhood and commute. join with Pinsight to serve
“This is just the tip of the ship with the middlemen that opt out of sharing location in- mobile operators does not in- Companies such as Tera- targeted advertisements and
er rs

iceberg,” Georgetown Law ex- serve those companies, though formation when they made a clude any granular GPS, cell lytics AG plot the travel pat- must get consent from their
pert Laura Moy testified in a it was searching for an arrange- service call and instead de- tower or other similar loca- terns of wireless subscribers users to collect and use in-
House subcommittee hearing ment that could replace them. scribe nearby road markings tion-based information, such for use in infrastructure, formation about them.
m e
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co Fo

EMILY PRAPUOLENIS/THE WALL STREET JOURNAL

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B6 | Monday, July 16, 2018 THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Chinese Exchanges
Snub Xiaomi by
Curbing Its Trade
BY KENAN MACHADO mainland investor demand
AND JOANNE CHIU through the Hong Kong-China
trading link known as Stock
China’s two main stock ex- Connect. Virtually all Hang
changes said investors on the Seng Composite Index compo-
mainland won’t be able to use nents can be traded by inves-

SONY PICTURES ANIMATION/ASSOCIATED PRESS


a trading link with Hong Kong tors in China via that link, but
to buy into companies with su- the weekend decision means
pervoting shares, a setback for Xiaomi’s shares will be ex-
recently listed smartphone cluded for now.
maker Xiaomi Corp. Excluding certain members
The decision from the of the index from the trading
Shanghai and Shenzhen ex- link is allowed but hasn’t hap-
changes, which cited a lack of pened before, said Hong Kong
familiarity among investors Exchanges and Clearing Ltd.,
with such instruments, could which operates the stock mar-
also hurt Hong Kong’s efforts ket. It said it had introduced
to lure other large Chinese extra safeguards for investors
technology listings in the com- and was eager to see compa- ‘Hotel Transylvania 3,’ from Sony, was No. 1 at the domestic box office, with a total of $44.1 million for its debut.

‘Skyscraper’ Fails to Soar


ing months. nies with weighted voting
Saturday’s ruling came just shares join the link “as soon as
days after Xiaomi went public possible.” The three exchanges
and Hang Seng Indexes Co. already have agreed to exclude
announced plans to add the shares in companies mostly
stock to a group of indexes, in- operating outside China, and
cluding its composite gauge, stapled securities, which com- Action movie starring very well in China.
later this month. bine a share and a unit in a This past winter, multiple
Beijing-based Xiaomi, which trust. Dwayne Johnson has Estimated Box-Office Figures, Through Sunday Hollywood studios engaged in
SALES, IN MILLIONS
recently completed a $4.7 bil- A spokeswoman for Xiaomi soft weekend opening, a fierce bidding war for one of
lion initial public offering, was said it didn’t comment on the FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE Mr. Johnson’s next movies, a
the first company to list in stock market. putting it at No. 3 thriller called “Red Notice,”
1. Hotel Transylvania 3 Sony $44.1 $45.4 --
Hong Kong under new rules in Xiaomi had considered a for which he was seeking to be
the city allowing listings of dual listing in Shanghai under BY BEN FRITZ 2. Ant-Man and the Wasp Disney $28.8 $132.8 -62 paid at least $21 million. Uni-
companies with two classes of rules that Chinese regulators 3. Skyscraper Universal $25.5 $25.5 -- versal and Legendary ended
voting stock. crafted to encourage home- The man many consider to up with the film, which is
4. Incredibles 2 Disney $16.2 $535.8 -43
Xiaomi’s shares made a grown tech giants to list at be Hollywood’s biggest star scheduled for release in 2020.

.
lukewarm trading debut last home. The eight-year-old com- took a tumble at the box office 5. Jurassic World: Fallen Universal $15.5 $363.3 -46 The debut of “Hotel Transyl-

ly
Monday, but news that it pany had applied to list securi- this weekend. Kingdom vania 3” was similar to the last
would be included in the Hang ties called Chinese Depositary “Skyscraper,” starring *Friday, Saturday and Sunday Source: comScore two movies in Sony Pictures
Seng indexes helped its shares Receipts, but shelved the plan Dwayne Johnson as a former Entertainment’s comedic mon-
rally more than 26% from its last month due to uncertainty FBI agent trying to rescue his
on ster franchise. “Hotel Transyl-
IPO price by the end of the about details of the rules and family from a burning tower, flop “Baywatch,” which made high. “Skyscraper” was produced vania 2” opened to $48.5 mil-
week, for a valuation of about disagreements with Chinese opened to an estimated $25.5 its debut at $18.5 million. and co-financed by Legendary lion in 2015 and the original
$68 billion. The surge came on regulators about the terms of million in the U.S. and Canada. In an era when franchises Pictures, owned by China’s Da- started with $42.5 million.
expectations that this would the offering, the Journal previ- It was No. 3 at the domestic often outshine stars, Mr. John- lian Wanda Group, along with Both those films opened in
us l,

open up a potent source of ously reported. box office behind the animated son is considered one of Holly- Comcast Corp.’s Universal Pic- September, however. With chil-
“Hotel Transylvania 3,” with wood’s few remaining bankable tures, which is handling distri- dren out of school, Sony is hop-
al a
e
$44.1 million, and “Ant-Man actors world-wide. But the in- bution and marketing. ing summer will bring a higher
and the Wasp,” which on its ternational opening of “Sky- Mr. Johnson’s April release ultimate gross for the third in-
second weekend in theaters scraper” wasn’t huge either. It “Rampage” grossed $156.4 stallment than the global totals
ci on
MIGUEL CANDELA/SOPA IMAGES/ZUMA PRESS

grossed $28.8 million. grossed $40.4 million in 57 million in China, more than of $473.2 million for No. 2 and
“Skyscraper” had a soft markets, coming in second any other country including $358.4 million for the first.
opening for an action movie place in several key countries, the U.S. He has had several “Hotel Transylvania 3”
that cost around $125 million including Mexico, South Korea, major hits in recent years in- grossed $46.4 million overseas
to make and posted the second and the United Kingdom. cluding “Jumanji: Welcome to over the weekend, bringing its
er rs

lowest start this decade for an However, it has yet to open in the Jungle,” “San Andreas,” foreign total to $54.8 million
“event” film starring Mr. John- China, where the film takes place and the “Fast and Furious” se- after opening in some coun-
son, behind only last year’s and expectations are particularly ries, all of which performed tries previously.
m e

Ex-CEO of Merrill Keeps Low Profile


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Smartphone maker Xiaomi had its IPO in Hong Kong last week.

BY MICHAEL WURSTHORN ups of top-executive positions

Abraaj’s Naqvi Settles A decade after the financial


weren’t uncommon.
His massive foray into sub-
co Fo

crisis, The Wall Street Journal prime mortgages turned

Bad-Check Allegation has checked in on dozens of


the bankers, government offi-
cials, chief executives, hedge-
toxic, and in 2007, Merrill
was forced to take a multibil-
lion-dollar write-down on
BY NICOLAS PARASIE Jafar extended a short-term fund managers and others who those assets. Mr. O’Neal’s
$300 million loan to Abraaj in left a mark on that period to tenure would last another
MIKE MERGEN/BLOOMBERG NEWS

DUBAI—The founder of em- December 2017 but it wasn’t find out what they are doing week before Merrill’s board
battled private-equity firm repaid in February as agreed, now. Today, we spotlight ex- intervened.
Abraaj Group has reached a Mr. Jafar’s legal representative Merrill Lynch CEO Stanley He was unceremoniously
settlement on a $48 million has said previously. A Sharjah O’Neal. replaced with John Thain,
bounced-check allegation, his court dismissed the charges Stanley O’Neal left Merrill then the head of NYSE Eu-
attorney said, allowing him to Sunday upon learning of the Lynch & Co. in shambles, and ronext. Mr. Thain tried to re-
avoid prosecution as he man- settlement. However, details of his career hasn’t been the pair the firm’s balance sheet,
ages a crisis at his firm. a broader settlement for the same ever since. but mortgage-related losses
n-

Arif Naqvi faced a potential full amount of $300 million The former Merrill chief ex- continued to mount, forcing
prison sentence of three years have yet to be ironed out, an ecutive, known for his abrasive Stanley O’Neal pursued a more performance-driven organization. Merrill’s executives into a
if convicted on charges of issu- adviser to Mr. Jafar said. management style and his ag- last-ditch effort to save the
ing checks with insufficient Mr. Mulla didn’t disclose gressive transformation of the Platform Specialty Products emphasis on riskier bets, such firm’s legacy: a $50 billion
no

funds in Sharjah, one of the terms of the settlement. Mr. storied brokerage firm, hasn’t Corp. as accumulating subprime acquisition by Bank of Amer-
United Arab Emirates’ seven Naqvi wasn’t available for held a corner-office job since Several longtime Merrill mortgage assets, and less on ica Corp. in 2009.
federated states. Sharjah pros- comment. he was forced to resign in veterans continue to lay the selling stocks and bonds. “They allowed short-term
ecutors had issued an arrest Mr. Jafar’s legal representa- 2007. firm’s demise as an indepen- The makeover brought in profitability to blind their
warrant for him, said his attor- tive has said Mr. Naqvi had is- While some of the top Wall dent, stand-alone company at big profits and raised the pro- views of the highly leveraged
ney, Habib al Mulla. sued three checks for a total of Street executives who steered the feet of Mr. O’Neal. Over his file of Mr. O’Neal, who was and risky business Merrill
The court case stemmed $300 million but that he had their firms through the chaos five-year tenure as CEO, Mr. also the first black CEO of a would become, and they al-
from a criminal complaint “no intention of repaying the of the financial crisis have O’Neal pressed the brokerage major Wall Street firm. He lowed a small group of greedy
made by Hamid Jafar, an Emir- debt.” The charge related to been able to embark on second to let go of its long-embraced helped turn Merrill into the individuals to destroy an icon,”
ati businessman and a found- one of several checks issued as acts at the top of new compa- Mother Merrill image, so No. 1 stockbrokerage firm in wrote Winthrop H. Smith Jr., a
ing shareholder of Abraaj. Mr. part of the loan. nies, Mr. O’Neal has kept a called because many at the the U.S. at the time. former Merrill executive
lower profile since his tumul- firm felt it adopted a maternal But Mr. O’Neal’s effort to whose father helped build the
tuous tenure at Merrill. He has nature toward its clients and move away from a decades-old firm, in a self-published his-
ADVERTISEMENT limited his jobs to board-of-di- employees. culture caused an exodus of tory about the company.
rectors roles, including at Instead, Mr. O’Neal pursued talent to rivals such as Gold- Mr. O’Neal declined to com-

The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
aerospace-parts specialist Ar-
conic Inc. and chemicals firm
a more performance-driven or-
ganization that put greater
man Sachs Group Inc. and
Morgan Stanley. Brutal shake-
ment for this article through
an Arconic spokeswoman.

BUSINESS OPPORTUNITIES COMMERCIAL REAL ESTATE


Head of Crisis Inquiry Now Builds Homes
 
      
 
 
 
  
 
 BY ASJYLYN LODER neighborhood in east Sacra- the FCIC, Mr. Angelides was span and Lloyd Blankfein,
 
         mento, Calif. Every house best known for his two terms chief executive of Goldman

         
  
  !
!  

 " 
Investigating the roots of comes prewired for solar pan- as California’s state treasurer, Sachs Group Inc.
   #  

$ $  ## !  !
! ! " the financial crisis in Washing- els and electric-car-charging from 1999 to 2007. He pushed But the final report, pub-
% ! &
$    '  

   ( )     # ton’s political hothouse can stations. Prices range from the California Public Employ- lished in January 2011, was
 
     
   make even an experienced pol- about $500,000 to $1 million. ees’ Retirement System, the greeted with a near-universal
itician nostalgic for a local He has also been involved in a nation’s largest public pension, shrug. Its impact was further
zoning dispute. few sizable solar power plants. to use its heft to advocate for diluted by two dissents from
RESIDENTIAL REAL ESTATE As the former head of the “Unlike a lot of what you changes on corporate boards. Republican commissioners.
www.earn11.com Financial Crisis Inquiry Com- may do in politics, there’s After unsuccessfully chal- Mr. Angelides is still defen-

EARN 11% up to  

mission, Phil Angelides had


the unenviable job of herding
something very gratifying
about and tangible about
lenging Republican Gov. Arnold
Schwarzenegger in 2006, Mr.
sive about the report’s recep-
tion. “Our goal was to create a
  
INVESTING IN 1st MORTGAGES
Short Term, High Yield, Low LTV. the politically divided commis- building big solar projects. Angelides quipped to the press, record and a history for pos-
Secure & Great Monthly Income. sioners through an inquisition There’s something very tangi- “I will by popular demand re- terity that could not easily be
Call 800-359-1111   
 of Wall Street’s banking titans ble about building a new ur- enter the private sector.” rewritten by ideologues or by
   in order to explain to millions ban neighborhood in your He went back into real es- Wall Street and its flunkies,”
of Americans what had just hometown,” Mr. Angelides said tate until he was tapped to he said in February.
BUSINESS FOR SALE          happened to their homes, jobs in a February interview. lead the FCIC. From the begin- His lasting disappointment is
Extraordinary Bioelectric Diagnostic Company.
Breakthrough, realtime, visual display of       and retirement accounts. But Mr. Angelides says he ning, the commission’s inquiry that while several banks faced
These days, he is focused plans to get more involved in was plagued by political in- substantial fines, no one was
earliest existence or absence of the most
vital organ dysfunction in accurate, non-      on real-estate investing and politics. A lifelong Democrat, fighting. The commission held really held accountable. “It’s the
invasive 10-minute test. FDA cleared. Unicorn
potential! Over $25 Million in NOLs. Critical  
  getting Democrats elected to he says he is concerned about 19 days of hearings and inter- immaculate corruption,” he
patents granted. Congress. His latest venture as the deregulatory fervor of the viewed more than 700 people, said. “Banks were engaged in
Email: unicornopportunity@gmail.com
Tel No.: 267-685-9689
 a property developer is Trump administration. including former Federal Re- wrongdoing, but somehow no
McKinley Village, a newly built Before his stint as head of serve Chairman Alan Green- bankers were involved.”
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, July 16, 2018 | B7

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market IPO Scorecard B8
Last Year ago Last Year ago
25019.41 s 562.93, or 2.30% last week Trailing P/E ratio 24.17 21.00 2801.31 s 41.49, or 1.50% last week Trailing P/E ratio * 24.52 24.29 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 16.34 18.41 High, low, open and close for each of P/E estimate * 17.45 18.80
the past 52 weeks Dividend yield 2.17 2.30 the past 52 weeks Dividend yield 1.87 1.99 IPOs in the U.S. Market
All-time high 26616.71, 01/26/18 All-time high 2872.87, 01/26/18
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 0.14748071991788 Rule 144a market; deal amounts are for the U.S. market only
26400 2900
Symbol/ Pricing
65-day moving average 65-day moving average Expected primary Shares Range($)
25200 2800 pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)

7/17 6/1 AFG Holdings AFGL 18.2 15.00/ GS, Credit Suisse,
24000 2700 Oil and gas equipment N 18.00 Piper Jaffray,
manufacturer specializing Barclays,
in pressure pumping and Evercore, UBS,
managed pressure drilling. WFS
22800 2600 7/17 6/19 Coastal Financial CCB 2.7 13.00/ Stifel, Hovde Group
Week's high Holding company for Nq 15.00
Coastal Federal Savings
DOWN UP 21600 2500 Bank.
t

Monday's open Friday's close 7/17 6/22 Crinetics Pharmaceuticals CRNX 5.0 15.00/ JPM, Leerink Prtnrs,
Pharmaceutical company Nq 17.00 Piper Jaffray
Friday's close Monday's open 20400 2400
t

focused on treating
endocrine disorders.
200-day moving average 200-day moving average
Week's low 7/18 6/22 Allakos ALLK 6.0 15.00/ GS, Jefferies,
19200 2300
Clinical-stage Nq 17.00 W. Blair LLC
biopharmaceutical
Bars measure the point change from Monday's open company.
18000 2200
7/18 6/22 Constellation Pharmaceuticals CNST 5.3 14.00/ JPM, Jefferies,
J A S O N D J F M A M J J J A S O N D J F M A M J J Biopharmaceutical Nq 16.00 BMO Cptl Mkts
company.
Primary
NYSE weekly volume, in billions of shares market Composite
t
t

Financial Flashback 7/18 6/21 Establishment Labs Holdings ESTA 3.1 15.00/ Jefferies, Cowen & Co,
24 Medical technology Nq 17.00 BTIG LLC
16 The Wall Street Journal, July 16, 2011 company specializing in
breast implant
manufacturing.
8 Activist investor Carl Icahn launched a bid for Clorox Co.
0 that valued the iconic American company at $10.2 billion 7/18 6/19 First Western Financial MYFW 1.9 19.00/ Stifel, Stephens,
J A S O N D J F M A M J J and invited other buyers to make their own offers. Bank holding company. Nq 21.00 Sandler O'Neill &
Prtnrs
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
7/18 6/22 Replimune Group REPL 6.7 14.00/ JPM, Leerink Prtnrs,
Major U.S. Stock-Market Indexes Nasdaq Composite Biotechnology company
developing oncolytic
Nq 16.00 BMO Cptl Mkts
immunotherapies.
Latest Week 52-Week % chg s 137.59, or 1.79%
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann. 7/18 6/22 Rubius Therapeutics RUBY 9.5 20.00/ JPM, MS, Jefferies,
Dow Jones
last week
Developer of red-cell Nq 22.00 Leerink Prtnrs
2.30 l therapeutics.
Industrial Average 25043.21 24518.43 25019.41 562.93 21513.17 26616.71 15.6 1.2 11.6
Transportation Avg 10721.02 10413.76 10546.41 72.48 0.69 9021.12 l 11373.38 8.2 -0.6 8.4 7/18 6/20 Tilray TLRY 9.0 14.00/ Cowen & Co,
7850
Utility Average 729.25 700.09 721.87 -7.50 -1.03 647.90 l 774.47 2.1 -0.2 8.1 Developer of medical Nq 16.00 Roth Cptl Ptnrs,
marijuana products. Northland Secs,
Total Stock Market 29214.87 28876.00 29163.29 371.20 1.29 25030.26 l 29630.47 14.5 5.4 9.9 BMO Cptl Mkts,
Eight Cptl
Barron's 400 764.15 750.58 755.43 1.67 0.22 629.56 l 761.78 15.4 6.3 9.7 7750

Nasdaq Stock Market Lockup Expirations


7650
Nasdaq Composite 7843.52 7696.58 7825.98 137.59 1.79 6213.13 l 7825.98 24.0 13.4 15.6 Below, companies whose officers and other insiders will become eligible

.
Nasdaq 100 7387.74 7220.23 7375.82 168.48 2.34 5786.54 l 7375.82 26.3 15.3 18.0 to sell shares in their newly public companies for the first time. Such
7550

ly
S&P sales can move the stock’s price.
6 9 10 11 12 13
500 Index 2804.53 2768.51 2801.31 41.49 1.50 2425.55 l 2872.87 13.9 4.8 10.1 July Lockup Offer Offer amt Through Lockup
MidCap 400 2015.58 1986.02 1996.35 6.86 0.34 on 1691.67 l 2009.15 13.1 5.0 9.6 DJ US TSM expiration Issue date Issuer Symbol price($) ($ mil.) Friday (%) provision
SmallCap 600 1059.49 1039.33 1045.81 -4.13 -0.39 817.25 l 1057.32 21.2 11.7 13.0 s 371.20, or 1.29% July 16 Jan. 17, ’18 One Madison OMADU 10.00 345.0 1.8 180 days
Other Indexes last week July 17 Jan. 18, ’18 ADT Inc ADT 14.00 1470.0 –36.0 180 days
Russell 2000 1708.56 1679.26 1687.08 -6.98 -0.41 1356.90 l
1706.99 18.1 9.9 10.1
Jan. 18, ’18 Americold Realty Trust COLD 16.00 833.5 35.8 180 days
NYSE Composite 12820.08 12665.60 12769.50 104.62 0.83 11699.83 l 13637.02 7.3 -0.3 5.3
us l,

Value Line 586.79 578.64 582.10 1.22 0.21 503.24 l 589.69 10.4 3.5 5.1 29200 Jan. 18, ’18 Nine Energy Service NINE 23.00 185.2 37.7 180 days
NYSE Arca Biotech 5133.23 4984.81 5115.93 107.87 2.15 3787.17 l 5115.93 30.9 21.2 6.6 July 22 Jan. 23, ’18 PagSeguro Digital PAGS 21.50 2605.7 27.0 180 days
al a
e
NYSE Arca Pharma 549.15 540.77 548.56 5.94 1.09 514.66 l 593.12 2.4 0.7 -2.8 28950 Sources: Dealogic; WSJ Market Data Group
KBW Bank 107.59 103.55 104.53 0.20 0.19 89.71 l 116.52 8.6 -2.0 10.4
Other Stock Offerings
ci on

PHLX§ Gold/Silver 84.79 80.32 80.43 -3.32 -3.96 76.42 l 93.26 -0.5 -5.7 10.6
28700
PHLX§ Oil Service 161.73 153.21 155.35 1.10 0.71 117.79 l 170.18 15.5 3.9 -6.6 Secondaries and follow-ons expected this week in the U.S. market
PHLX§ Semiconductor 1375.33 1324.97 1340.83 -8.35 -0.62 1060.02 l 1445.9 21.4 7.0 26.4 Symbol/
CBOE Volatility 14.15 11.62 12.18 -1.19 -8.90 9.14 l 37.32 28.1 10.3 -4.3 28450 Primary Amount Friday’s
6 9 10 11 12 13 Expected Issuer/Business exchange ($mil.) price ($) Bookrunner(s)
 Nasdaq PHLX Sources: SIX Financial Information; WSJ Market Data Group July July 9 SELLAS Life Sciences Group SLS 34.6 1.66 RBC Cptl Mkts,
er rs

Healthcare Nq Cantor Fitzgerald & Co

International Stock Indexes Commodities and Currencies Off the Shelf


Latest Week 52-Week Range YTD Last Week YTD “Shelf registrations” allow a company to prepare a stock or bond for
m e

Region/Country Index Close % chg Low Close High % chg Close Net chg %Chg % chg sale, without selling the whole issue at once. Corporations sell as
World The Global Dow 3029.17 0.72 2810.24 • 3323.74 –1.9 DJ Commodity 610.39 -21.21 -3.36 -2.40 conditions become favorable. Here are the shelf sales, or takedowns,
DJ Global Index 398.46 1.00 363.68 • 425.41 0.3 over the last week:
m rp

TR/CC CRB Index 193.73 -4.32 -2.18 -0.07


DJ Global ex U.S. 255.03 0.57 245.92 • 285.34 –4.4
Crude oil, $ per barrel 71.01 -2.79 -3.78 17.53
Takedown date/ Deal value Registration
Americas DJ Americas 669.56 1.38 583.45 • 687.75 4.2
Natural gas, $/MMBtu 2.752 -0.106 -3.71 -6.81
Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)

Brazil Sao Paulo Bovespa 76594.36 2.11 64684.18 • 87652.64 0.3


Gold, $ per troy oz. 1239.60 -14.70 -1.17 -5.11
CytomX Therapeutics July 12 $125.0 $250.0 GS, Citi, Barclays
Canada S&P/TSX Comp 16561.12 1.16 14951.88 • 16567.42 2.2 Healthcare Nov. 3,316
Mexico S&P/BMV IPC 48406.01 –1.17 44647.37 • 51713.38 –1.9 U.S. Dollar Index 94.68 0.64 0.68 2.77
Natera July 12 $90.0 $200.0 JPM, MS, Cowen & Co
co Fo

Chile Santiago IPSA 3927.56 0.39 3704.57 • 4442.56 –6.7 WSJ Dollar Index 88.40 0.78 0.89 2.82 Healthcare Nov. 14,316
EMEA Stoxx Europe 600 385.03 0.70 363.18 • 402.81 –1.1 Euro, per dollar 0.8558 0.0043 0.50 2.72
Myovant Sciences July 12 $75.0 $300.0 JPM, GS, Barclays
Stoxx Europe 50 3089.37 0.55 2894.75 • 3274.97 –2.8 Yen, per dollar 112.35 1.89 1.71 -0.31 Healthcare Nov. 13,317
Eurozone Euro Stoxx 383.68 0.53 366.11 • 404.86 –0.5 U.K. pound, in dollars 1.32 -0.0053 -0.40 -2.06
Euro Stoxx 50 3454.54 0.18 3278.72 • 3697.40 –1.4 52-Week
AcelRx Pharmaceuticals July 12 $20.0 $150.0 Cantor Fitzgerald & Co
Austria ATX 3285.14 0.50 3153.31 • 3688.78 –3.9 Low Close(l) High % Chg Healthcare June 5,317
Belgium Bel-20 3804.08 0.89 3697.28 • 4176.88 –4.4
DJ Commodity 558.64 l 667.35 9.20 Assembly Biosciences July 11 $165.6 $150.0 Jefferies, Leerink Prtnrs,
France CAC 40 5429.20 0.99 5031.92 • 5640.10 2.2
9.90
Healthcare Dec. 30,315 W. Blair LLC, Mizuho
Germany DAX 12540.73 0.36 11787.26 • 13559.60 –2.9 TR/CC CRB Index 175.36 l 206.38
Greece Athex Composite 761.91 1.99 701.36 • 886.54 –5.0 Crude oil, $ per barrel 45.77 l 74.15 52.58 ArQule July 11 $69.6 $100.0 Leerink Prtnrs
Israel Tel Aviv 1549.70 1.70 1363.50 • 1554.30 2.6 Natural gas, $/MMBtu 2.55 l 3.63 -7.65
Healthcare Sept. 2,316
Italy FTSE MIB 21892.35 –0.15 21202 • 24544 0.2 Gold, $ per troy oz. 1226.60 l 1362.40 1.06 Sempra Energy July 10 $1,275.4 ... Citi, JPM, Credit Suisse,
Netherlands AEX 560.12 1.17 510.03 • 572.05 2.9 Utility & Energy Aug. 30,317 DB, GS, BofA ML, WFS
Portugal PSI 20 5619.49 0.35 5074.49 • 5791.88 4.3 U.S. Dollar Index 88.59 l 95.39 -0.50
n-

Sempra Energy July 10 $575.0 ... Citi, JPM, WFS,


Russia RTS Index 1189.35 1.35 1007.14 • 1324.62 3.0 WSJ Dollar Index 82.70 l 88.51 1.25 Utility & Energy Aug. 30,317 Credit Suisse, DB, GS,
South Africa FTSE/JSE All-Share 56364.14 –1.66 53261.64 • 61684.77 –5.3 Euro, per dollar 0.7996 l 0.8719 -1.84 BofA ML
Spain IBEX 35 9734.80 –1.72 9381.0 • 10734.7 –3.1
Yen, per dollar 104.73 l 114.17 -0.16
Sweden OMX Stockholm 576.93 2.01 545.83 • 600.20 1.4 National Storage Affiliates TrustJuly 10 $177.0 ... BMO Cptl Mkts
no

l 1.01
Switzerland Swiss Market 8861.05 1.88 8456.95 • 9611.61 –5.6 U.K. pound, in dollars 1.28 1.43 Real Estate/Property March 14,318
U.K. FTSE 100 7661.87 0.58 6888.69 • 7877.45 –0.3 Adesto Technologies July 10 $40.2 $40.0 Cowen & Co,
Asia-Pacific Real-time U.S. stock Technology May 9,318 Needham & Co,

WSJ quotes are available on Canaccord Genuity, Roth


Australia S&P/ASX 200 6268.40 –0.06 5651.8 • 6286.0 3.4
Cptl Ptnrs
China Shanghai Composite 2831.18 3.06 2733.88 • 3559.47 –14.4 WSJ.com. Track most-
Hong Kong Hang Seng 28525.44 0.74 26389.23 • 33154.12 –4.7 .COM active stocks, new
India S&P BSE Sensex 36541.63 2.48 31159.81 • 36548.41 7.3 highs/lows, mutual Public and Private Borrowing
Japan Nikkei Stock Avg 22597.35 3.71 19274.82 • 24124.15 –0.7 funds and ETFs.
Treasurys
Malaysia FTSE Bursa Malaysia KLCI 1721.93 3.49 1663.86 • 1895.18 –4.2 Plus, get deeper money-flows data and
Singapore Straits Times 3260.35 2.15 3191.82 • 3615.28 –4.2 email delivery of key stock-market Monday, July 16 Tuesday, July 17
South Korea Kospi 2310.90 1.67 2257.55 • 2598.19 –6.3 data. Auction of 13 week bill; Auction of 4 week bill;
Taiwan TAIEX 10864.54 2.41 10225.28 • 11253.11 2.1
All are available free at
announced on July 12; settles on July 19 announced on July 16; settles on July 19
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com Auction of 26 week bill; Auction of 52 week bill;
announced on July 12; settles on July 19 announced on July 12; settles on July 19

Consumer Rates and Returns to Investor Benchmark Yields and Rates Thursday, July 19
Auction of 10 year TIPS;
U.S. consumer rates Selected rates Treasury yield curve Forex Race announced on July 12; settles on July 31
A consumer rate against its Five-year ARM, Rate Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs.
benchmark over the past year notes and bonds major U.S. trading partners Public and Municipal Finance
Bankrate.com avg†: 4.33%
Deals of $ 150 million or more expected this week
Langley FCU 3.25% 3.75% 10% Final Total Rating Bookrunner/
5-year adjustable- 5.00% Newport News, VA 800-826-7490 Euro Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
rate mortgage Friday 3.00 5
s
(ARM) United Teletech Financial 3.25% t s
4.00 July 16 prelim. Connecticut 300.0 N.R. N.R. N.R. Barclays/—
t 5-year Treasury Tinton Falls, NJ 732-530-8100 2.25 0 Yen
Hlth & Ed Facs Auth
note yield 3.00 AmericanAirlinesFederalCreditUnion 3.38%
t 1.50 –5
Ft Worth, TX 800-533-0035 s July 16 Nov. 1, 2024 Dallas & Fort 302.4 N.R. N.R. N.R. BoA Merrill/
2.00 Foxboro Federal Savings 3.38% t 0.75 –10 WSJ Dollar index Worth Cities-Texas Bracewell LLP
Foxboro, MA 877-369-3331 One year ago
1.00 0.00 –15 July 16 prelim. So California 175.6 N.R. N.R. N.R. J P Morgan
A S O N D J FMA M J J Audubon Savings Bank 3.50% 1 3 6 1 2 3 5 710 30 Metro Water Dt Securities LLC/—
Audubon, NJ 2017 2018
2017 2018 856-656-2200 month(s) years
maturity July 16 Aug. 15, 2047 Williamson 207.5 N.R. N.R. N.R. FTN Financial
Yield/Rate (%) 52-Week Range (%) 3-yr chg
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group (Leander) ISD Capital Markets/
Norton Rose Fulbright
Federal-funds rate target 1.75-2.00 1.75-2.00 1.00 l 1.75 1.75
Prime rate* 5.00 5.00 4.25 l 5.00 1.75
Corporate Borrowing Rates and Yields July 18 June 1, 2038 North Carolina 400.0 N.R. N.R. N.R. Preliminary/
Libor, 3-month 2.34 2.33 1.30 l 2.37 2.05 Spread +/- Treasurys, Womble Bond Dickinson
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.53 0.53 0.25 l 0.53 0.20 Bond total return index Last Wk ago Last Low High 52-wk 3-yr
Five-year CD, annual yield 1.74 1.74 1.43 l 1.74 0.27 July 20 prelim. District of 517.3 N.R. N.R. N.R. Ramirez & Co
10-yr Treasury, Ryan ALM 2.831 2.831 -2.22 0.80 Columbia Inc/—
30-year mortgage, fixed† 4.53 4.52 3.73 l 4.69 0.35
DJ Corporate 3.871 3.913 -0.45 3.53
15-year mortgage, fixed† 4.01 4.00 2.99 l 4.14 0.67
Aggregate, Barclays Capital 3.280 3.280 n.a. 34 45 -0.17 1.97 July 20 prelim. Fairfax 150.0 N.R. N.R. N.R. M. Stanley/—
Jumbo mortgages, $424,100-plus† 4.72 4.71 4.21 l 4.96 -0.25 Industrial Dev Auth
High Yield 100, Merrill Lynch 6.051 6.193 326 293 376 2.110 4.209
Five-year adj mortgage (ARM)† 4.33 4.28 3.22 l 4.78 1.01
Fixed-Rate MBS, Barclays 3.420 3.410 n.a. 20 33 0.28 1.63
New-car loan, 48-month 3.86 3.72 2.85 l 4.28 0.80 July 20 prelim. Wisconsin 149.5 N.R. N.R. N.R. Piper
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest Muni Master, Merrill 2.402 2.443 14 5 17 1.249 2.558 Hlth & Ed Fac Auth Jaffray/—
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
EMBI Global, J.P. Morgan 6.468 6.557 365 289 394 -0.681 4.955 (WHEFA)
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Source:Thomson Reuters/Ipreo
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, July 16, 2018 THE WALL STREET JOURNAL.

CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as 52 wk 52 wk Prem12 Mo Prem12 Mo Prem12 Mo
measured by assets. Closed-end funds sell a limited Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
number of shares and invest the proceeds in securities. Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
Unlike open-end funds, closed-ends generally do not U.S. Mortgage Bond Funds MS EmMktDomDebt EDD 7.82 6.93 -11.4 8.9 PIMCO California Muni PCQ 13.67 17.08 +24.9 5.4
buy their shares back from investors who wish to cash Clearbridge Engy MLP Opp EMO 11.74 11.10 -5.5 -1.6 Cohen & Strs Sel Prf Inco PSF 26.21 27.13 +3.5 3.4 BlackRock Income Trust BKT 6.35 5.82 -8.3 5.4 PIMCO Dynamic Credit PCI NA 23.60 NA 8.3 PIMCO California Mun II PCK 8.45 8.29 -1.9 5.9
in their holdings. Instead, fund shares trade on a stock Clearbridge Engy MLP TR CTR 11.97 11.32 -5.4 -2.8 FT Interm Duration Pfd FPF 23.39 21.59 -7.7 -5.2 PIMCODynamicIncomeFund PDI NA 32.33 NA 8.3
Nuveen Mtg Opp Term Fd JLS 24.30 23.64 -2.7 8.0
exchange. NA signifies that the information is not
Cohen & Steers Infr Fd UTF 24.31 23.11 -4.9 8.7 52 wk
available or not applicable. NS signifies fund not in John Hancock Pfd Income HPI 21.50 21.58 +0.4 6.5 Investment Grade Bond Funds PIMCO Income Opportunity PKO NA 27.40 NA 8.3 Prem Ttl
existence of entire period. 12 month yield is computed C&S MLP Incm & Engy Opp MIE 10.84 10.24 -5.5 3.0 John Hancock Pfd II HPF 21.22 21.30 +0.4 5.1 Blackrock Core Bond Tr BHK 14.14 12.84 -9.2 6.1 PIMCO Strat Income Fund RCS NA 9.79 NA 8.9 Fund (SYM) NAV Close /Disc Ret
by dividing income dividends paid (during the previous Cohen & Steers Qual Inc RQI 13.21 12.18 -7.8 1.9 John Hancock Pfd Inc III HPS 18.92 18.54 -2.0 5.0 BlkRk Credit Alloc Incm BTZ 14.10 12.12 -14.0 6.7 Templeton Emerging TEI 11.54 10.47 -9.3 8.5
twelve months for periods ending at month-end or General Equity Funds
during the previous fifty-two weeks for periods ending
CohnStrsPfdInco RNP 22.00 19.57 -11.0 0.9 JHancock Pr Div PDT 15.04 15.97 +6.2 6.0 John Hancock Income Secs JHS 14.61 13.43 -8.1 5.6 Templeton Global GIM 7.15 6.17 -13.7 5.1
at any time other than month-end) by the latest Cohen & Steers TR RFI 13.07 12.60 -3.6 7.7 LMP Cap & Inco Fd SCD 14.55 13.18 -9.4 -0.3 MFS Inc Tr MIN 4.16 3.82 -8.2 9.6 Wstrn Asset Emerg Mkts EMD 15.83 13.72 -13.3 8.7 Specialized Equity Funds
month-end market price adjusted for capital gains CLSeligmn Prem Tech Gr Fd STK 21.62 22.00 +1.8 9.8 Nuveen Pfd & Incm Opps Fd JPC 10.12 9.30 -8.1 -3.9 Western Asset Infl Incm WIA 12.93 11.40 -11.8 3.6 Wstrn Asset Gl Def Opp Fd GDO 17.96 16.52 -8.0 7.9 Griffin Inst Access RE:A 27.01 NA NA 6.7
distributions. DNP Select Income Fund DNP 9.33 10.91 +16.9 5.7 Nuveen Pfd & Incm Secs Fd JPS 9.64 8.81 -8.6 -6.4 Western Asset Infl Opps WIW 12.55 11.09 -11.6 3.8 National Muni Bond Funds Griffin Inst Access RE:C 26.44 NA NA 5.9
Source: Lipper Griffin Inst Access RE:I 27.21 NA NA 6.9
Duff&PhelpsGblUtilIncFd DPG 16.48 14.75 -10.5 -3.1 Nuveen Preferred & Incm JPI 24.27 23.26 -4.2 0.4 Loan Participation Funds AllianceBrnstn NtlMun AFB 14.41 12.62 -12.4 4.6
Friday, July 13, 2018 Eaton Vance Eqty Inco Fd EOI 15.37 15.59 +1.4 21.2 Blackrock Invest BKN 15.48 14.03 -9.4 5.1 NexPointHCOpp;A 20.28 NA NA NS
Nuv Tax-Adv Div Gr JTD 17.51 16.98 -3.0 13.5 Apollo Sr Fltg Rate Fd AFT 17.69 16.08 -9.1 6.7
52 wk Eaton Vance Eqty Inco II EOS 17.31 17.53 +1.3 25.8 TCW Strategic Income Fund TSI NA 5.54 NA 3.4 BlkRk Debt Strat Fd DSU 12.55 11.12 -11.4 7.3 BlackRock Mun 2030 Target BTT 23.70 21.46 -9.5 4.0 NexPointHCOpp;C 20.26 NA NA NS
Prem Ttl EtnVncRskMngd ETJ 9.87 9.60 -2.7 11.0 BlackRock Municipal Trust BFK 14.07 12.92 -8.2 5.8 NexPointHCOpp;Z 20.29 NA NA NS
Fund (SYM) NAV Close /Disc Ret Virtus Global Dividend ZTR 11.12 11.37 +2.2 -0.7 BlackRock FR Incm Strat FRA 14.91 13.86 -7.0 5.2
Etn Vnc Tax Mgd Buy-Write ETB 16.05 16.25 +1.2 6.1 Convertible Sec's. Funds Blkrk FltRt InTr BGT 14.38 13.11 -8.8 5.3 BlackRockMuni BLE 14.62 13.75 -6.0 5.6 NexPointRlEstStrat;A 21.04 NA NA 6.9
General Equity Funds Eaton Vance BuyWrite Opp ETV 15.33 15.72 +2.5 10.9 AdvntClymrFd AVK 17.23 15.49 -10.1 3.8 BlackstoneGSO Strat Cred BGB NA 15.86 NA 7.9 BlackRockMuni Tr BYM 14.79 13.12 -11.3 5.3 NexPointRlEstStrat;C 21.11 NA NA 6.8
Adams Divers Equity Fd ADX 18.45 15.77 -14.5 18.0 Eaton Vance Tax-Mng Div ETY 12.44 12.44 0.0 16.1 AllianzGI Conv & Incm NCV 6.31 7.04 +11.6 11.8 Blackstone GSO Sr Float BSL NA 17.83 NA 6.4 BlkRk MuniAssets Fd MUA 14.09 13.18 -6.5 5.0 NexPointRlEstStrat;Z 21.13 NA NA 7.8
Boulder Growth & Income BIF 12.51 10.35 -17.3 8.7 EatonVanceTax-MngdOpp ETW 11.27 11.88 +5.4 11.0 Eagle Point Credit ECC NA 18.52 NA 12.1 BlkRk Munienhanced MEN 11.60 10.50 -9.5 5.9 NorthStar RE Cap Inc:Adv 9.07 NA NA NS
AllianzGI Conv & Incm II NCZ 5.66 6.03 +6.4 6.9
Central Securities CET 34.17 28.35 -17.0 14.4 EtnVncTxMngGlDvEqInc EXG 9.25 9.45 +2.2 11.8 AllianzGI Equity & Conv NIE 24.28 22.98 -5.4 23.3 Eaton Vance FR Incm Tr EFT 15.66 14.53 -7.2 5.7 BlkRk MuniHldgs Inv MFL 14.19 12.84 -9.5 6.1 PREDEX;T 26.14 NA NA NS
CohSteer Opprtnty Fd FOF 13.61 13.00 -4.5 5.5 FT Energy Inc & Growth Fd FEN 23.05 22.85 -0.9 -4.2 Calamos Conv Hi Inco Fd CHY 11.83 13.02 +10.1 21.8 EatonVnc SrFltRate EFR 15.33 14.15 -7.7 5.9 BlkRk MuniHldgs Qlty II MUE 13.59 12.18 -10.4 5.9 PREDEX;W 26.13 NA NA NS
Cornerstone Strategic CLM 12.57 14.02 +11.5 9.8 FstTrEnhEqtIncFd FFA 16.28 15.99 -1.8 14.8 Eaton Vance Sr Incm Tr EVF 7.20 6.32 -12.2 5.7 BlkRk MuniVest MVF 9.41 8.81 -6.4 6.0 Resource RE Div Inc:A 10.39 NA NA 6.9
Calamos CHI 11.20 11.90 +6.3 16.4
Cornerstone TR Fd CRF 12.23 14.00 +14.5 12.2 First Tr Engy Infr Fd FIF 17.25 16.41 -4.9 -5.0 First Trust Sr FR Fd II FCT 14.00 12.72 -9.1 5.8 BlkRk MuniVest II MVT 14.83 14.03 -5.4 6.0 Resource RE Div Inc:C 10.38 NA NA 6.1
World Equity Funds
EtnVnc TaxAdvDiv EVT 23.45 23.22 -1.0 12.2 First Tr MLP & Engy Incm FEI 13.06 13.05 -0.1 -7.5 FT Sr Floating Rate 2022 FIV 9.62 9.27 -3.6 5.3 BlkRk MuniYield MYD 14.46 13.49 -6.7 5.9 Resource RE Div Inc:D 10.55 NA NA 6.4
Aberdeen Total Dyn Div AOD 10.00 8.85 -11.5 8.3
Gabelli Dividend & Incm GDV 24.61 23.36 -5.1 11.3 Gabelli Hlthcr & Well GRX 12.23 10.41 -14.9 2.2 Highland FR Opps Fd HFRO 15.20 NA NA NA BlkRk MuniYld Quality MQY 15.41 13.76 -10.7 5.7 Resource RE Div Inc:I 10.82 NA NA 7.1
Gabelli Equity Trust GAB 6.44 6.31 -2.0 12.7 Calamos Glbl Dyn Inc CHW 8.85 8.95 +1.1 13.1
Gabelli Utility Tr GUT 5.10 5.97 +17.1 -4.4 Invesco Credit Opps Fund VTA 13.14 11.50 -12.5 6.8 BlkRk MuniYld Qlty II MQT 13.52 12.01 -11.2 5.5 Resource RE Div Inc:L 10.39 NA NA 6.6
Genl American Investors GAM 42.22 35.25 -16.5 11.8 GAMCOGlblGoldNatRscs&Inc GGN 5.07 5.10 +0.6 2.5
Cdn Genl Inv CGI 36.59 25.40 -30.6 27.3 Resource RE Div Inc:T 10.37 NA NA 6.2
Invesco Senior Income Tr VVR 4.91 4.30 -12.4 5.6 BlRkMunyldQltyIII MYI 14.02 12.56 -10.4 5.9
HnckJohn TxAdv HTD 25.10 23.06 -8.1 -1.1 GoldmanSachsMLPIncOpp GMZ 9.45 9.11 -3.6 1.3
China Fund CHN 22.63 20.63 -8.8 10.8 Resource RE Div Inc:U 10.40 NA NA 6.9
Nuveen Credit Strt Inc Fd JQC 9.08 7.94 -12.6 6.9 Dreyfus Mun Bd Infr Fd DMB 14.14 12.63 -10.7 5.1
Liberty All-Star Equity USA 7.00 6.67 -4.7 27.2 John Hancock Finl Opps Fd BTO 38.13 37.24 -2.3 9.0 Clough Global Opp Fd GLO 12.20 11.17 -8.4 12.1 Resource RE Div Inc:W 10.55 NA NA 7.0
NuvFloatRteInco Fd JFR 11.50 10.30 -10.4 7.5 Dreyfus Strat Muni Bond DSM 8.21 7.57 -7.8 6.1
Royce Micro-Cap RMT 11.08 10.30 -7.0 26.0 Macquarie Glbl Infrstrctr MGU 26.33 22.84 -13.3 -0.9 EtnVncTxAdvGblDiv ETG 18.29 17.42 -4.8 8.2 28.70 NA NA 11.9
Nuv Float Rte Opp Fd JRO 11.43 10.18 -10.9 7.7 Dreyfus Strategic Munis LEO 8.43 7.67 -9.0 6.2 SharesPost 100;A
Royce Value Trust RVT 17.54 15.73 -10.3 13.7 NeubergerBermanMLPIncm NML 9.57 8.97 -6.3 -1.5 EatonVance TxAdv Opport ETO 24.41 24.94 +2.2 6.6 28.74 NA NA NS
Nuveen Senior Income Fund NSL 6.88 6.12 -11.0 7.3 DWS Muni Income Trust KTF 12.14 11.01 -9.3 5.9 SharesPost 100:I
Source Capital SOR 45.28 40.40 -10.8 5.0 Neubrgr Brm Rl Est Sec Fd NRO 5.42 5.16 -4.8 6.5 First Trust Dynamic Eur FDEU 17.68 16.10 -8.9 -7.4 28.69 NA NA NS
Pioneer Floating Rate Tr PHD 12.35 11.08 -10.3 6.4 Eaton Vance Mun Bd Fd EIM 13.28 11.82 -11.0 5.1 SharesPost 100:L
Tri-Continental TY 30.56 27.01 -11.6 15.0 Nuveen Dow 30 Dynamic DIAX 18.51 18.44 -0.4 18.0 Gabelli Glbl Multimedia GGT 9.26 9.09 -1.8 9.6 Eaton Vance Mun Income EVN 13.11 12.05 -8.1 5.4 Tot Inc+ RE:A 29.93 NA NA 7.9
GDL Fund GDL 11.30 9.26 -18.1 -5.4 Voya Prime Rate Trust PPR 5.64 5.00 -11.3 5.5
Specialized Equity Funds Nuveen Core Eq Alpha JCE 14.98 14.63 -2.3 14.0 EV National Municipal Opp EOT 21.33 20.51 -3.8 5.0 Tot Inc+ RE:C 29.00 NA NA 7.1
India Fund IFN 28.26 24.65 -12.8 3.2 High Yield Bond Funds
Aberdeen Glbl Prem Prop AWP 6.89 6.36 -7.7 8.8 Nuveen Diversified Div JDD 12.06 11.42 -5.3 -1.4 Invesco Adv Mun Incm II VKI 11.82 10.74 -9.1 6.0 Tot Inc+ RE:I 30.31 NA NA 8.2
Adams Natural Rscs Fd PEO 23.86 20.08 -15.8 13.9 Japan Sml Cap JOF 12.74 11.29 -11.4 12.4 AllianceBernstein Glbl AWF 13.30 11.51 -13.5 7.2
Nuveen Engy MLP Fd JMF 11.17 10.57 -5.4 -11.1 Invesco Mun Incm Opps Tr OIA 7.51 7.66 +2.0 5.4 Tot Inc+ RE:L 29.84 NA NA 7.7
AllnzGI NFJ Div Interest NFJ 14.51 12.70 -12.5 2.8 Korea Fund KF 41.58 37.07 -10.8 -2.2 Barings Glbl Short Dur HY BGH 20.62 18.75 -9.1 9.6
NuvNASDAQ100DynOver QQQX 23.97 24.80 +3.5 18.8 Invesco Mun Opportunity VMO 13.20 11.82 -10.5 5.7 USQ Core Real Estate:I USQIX 25.49 NA NA NS
BlkRk Enh Cap Inco CII 17.42 16.64 -4.5 17.1 Mexico Fund MXF NA 16.05 NA -8.9 BlackRock Corp Hi Yd Fd HYT 11.89 10.51 -11.6 8.0
Nuveen Real Est Incm Fd JRS 11.03 10.05 -8.9 -2.3 Invesco Municipal Trust VKQ 13.18 11.89 -9.8 5.9 USQ Core Real Estate:IS USQSX 25.49 NA NA NS
BlkRk Engy Res Tr BGR 16.02 15.46 -3.5 27.9 Nuveen Real Asset Income JRI 18.63 16.15 -13.3 -2.0 Morgan-Stanley Asia-Pac APF 19.90 17.08 -14.2 1.5 BlackRockDurInco Tr BLW 16.70 14.88 -10.9 6.4
Brookfield Real Assets RA 24.37 23.08 -5.3 10.5 Invesco Qlty Mun Inco IQI 13.28 12.00 -9.6 5.6 Versus Cap MMgr RE Inc:I 28.09 NA NA NE
BlackRock Enh Eq Div Tr BDJ 9.79 9.14 -6.6 9.3 NuvS&P500DynOverwrite SPXX NA 16.67 NA 15.5 MS China a Shr Fd CAF 27.08 22.73 -16.1 6.2 Invesco Inv Grade Muni VGM 13.62 12.47 -8.4 6.0 Versus Capital Real Asst VCRRX 25.44 NA NA NS
BlackRock Enh Gl Div Tr BOE 12.05 11.05 -8.3 -2.0 NuveenS&P500Buy-Write BXMX 14.07 14.21 +1.0 8.0 MS Emerging Fund MSF 18.81 16.41 -12.8 -2.4 Credit Suisse High Yld DHY 2.68 2.63 -1.9 9.6
Invesco Value Mun Incm Tr IIM 15.88 14.18 -10.7 5.2 Wildermuth Endwmnt Str 13.22 NA NA 9.8
BlkRk Intl Grwth&Inco BGY 6.43 5.76 -10.4 -3.0 Reaves Utility Fund UTG 32.32 29.42 -9.0 -12.8 MS India Invest IIF 29.84 26.74 -10.4 -3.3 DoubleLine Incm Solutions DSL NA 20.22 NA 9.0
MainStayMacDefinedMuni MMD 20.22 19.50 -3.6 5.5 Wildermuth Endwmnt S:C 12.98 NA NA 9.0
BlkRk Health Sci BME 37.83 41.17 +8.8 18.5 Tekla Hlthcr Investors HQH 25.10 22.59 -10.0 NE New Germany Fund GF 20.95 18.39 -12.2 14.8 Dreyfus Hi Yd Strat Fd DHF 3.37 3.10 -8.0 9.0
NuveenAMT-FreeMunValue NUW 16.38 15.40 -6.0 4.5 Wildermuth Endwmnt S:I 13.31 NA NA 10.6
BlackRck Rscs Comm Str Tr BCX 10.15 9.11 -10.2 16.9 Tortoise Energy TYG 26.11 26.75 +2.5 -3.5 Swiss Helvetia Fund SWZ 13.26 12.61 -4.9 2.5 Fst Tr Hi Inc Lg/Shrt Fd FSD 16.88 14.52 -14.0 9.7
Nuveen AMT-Free Quality NEA 14.77 12.98 -12.1 5.3 Income & Preferred Stock Funds
BlackRock Science & Tech BST 32.04 34.89 +8.9 55.5 Tortoise MLP Fund NTG 16.26 15.75 -3.1 -10.0 Templeton Dragon TDF 24.74 21.15 -14.5 8.8 Ivy High Income Opps Fund IVH 15.99 14.35 -10.3 9.3
Nuveen AMT-Free Mun NVG 16.18 14.63 -9.6 5.9 Flat Rock Opportunity 20.04 NA NA NS
BlackRock Utilities Infr BUI 20.36 20.37 0.0 6.5 Voya Gl Equity Div IGD 7.60 7.35 -3.3 6.3 Templeton Emerging EMF 16.92 14.72 -13.0 0.6 Neuberger Berman HYS NHS NA NA NA 7.8
Nuveen Mun Credit Incm Fd NZF 15.69 14.34 -8.6 5.9 MultiStrat Gro & Inc:A 14.53 NA NA 0.6
CBREClarionGlblRlEstIncm IGR 8.59 7.57 -11.9 6.0 Virtus Total Return Fund ZF 11.23 10.72 -4.5 0.7 NexPoint Strat Opps Fund NHF 24.75 22.41 -9.5 10.9
Income & Preferred Stock Funds Nuveen Enhncd Mun Val Fd NEV 14.67 13.65 -7.0 5.8 MultiStrat Gro & Inc:C 14.14 NA NA -0.1
ClearBridge Amer Engy CBA 8.25 7.69 -6.8 -5.8 Calamos Strat Fd CSQ 13.05 12.96 -0.7 18.5 Voya Infr Indls & Matls IDE 15.21 14.38 -5.5 -1.0 Nuveen Credit Opps 2022 JCO 9.80 9.46 -3.5 5.9 Nuveen Intermed Dur Mun NID 13.63 12.39 -9.1 4.8 MultiStrat Gro & Inc:I 14.73 NA NA 0.8
ClearBridge Engy MLP Fd CEM 14.90 14.08 -5.5 -1.3 Cohen & Steers Dur Pfd LDP 25.72 25.15 -2.2 1.0 Wells Fargo Gl Div Opp EOD 6.01 5.64 -6.2 2.0 Nuveen Gl Hi Incm Fd JGH 17.74 15.37 -13.4 9.2 NuveenMuniIncoOpp Fd NMZ 13.32 12.84 -3.6 6.0 MultiStrat Gro & Inc:L 14.27 NA NA 0.1
Nuveen High Incm Dec18 JHA 9.95 9.80 -1.5 4.0 Nuveen Muni Value Fund NUV 10.10 9.50 -5.9 3.9 Convertible Sec's. Funds
Nuveen High Incm Dec19 JHD 10.02 9.83 -1.9 5.1 Nuveen Qual Mun Incm Fd NAD 15.05 13.25 -12.0 5.3 Calamos Dyn Conv & Incm CCD 21.25 21.92 +3.2 12.6
Nuveen Hi Incm Nov 2021 JHB 9.92 9.59 -3.3 6.1 Nuveen Sel TF NXQ 14.58 13.53 -7.2 3.6 World Equity Funds
Insider-Trading Spotlight PGIM Global Short Dur HY GHY 16.08 13.64 -15.2 7.6
PGIM Short Duration HY Fd ISD 16.25 13.94 -14.2 7.7
PIMCO MuniFd PMF 12.61 13.27 +5.2 5.4 BMO LGM Front ME 10.59 NA NA 4.5
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Pimco Muni Inc II PML 11.86 13.10 +10.5 5.9 Calamos Global Tot Ret Fd CGO 12.99 14.28 +9.9 10.4
Pioneer High Income Trust PHT 10.43 9.31 -10.7 8.4 PIMCO Muni Inc III PMX 10.80 11.47 +6.2 5.7
new information about the prospects of a company. Insiders are required to report large trades to the SEC Wells Fargo Incm Opps Fd EAD 8.94 7.90 -11.6 8.3 Prem12 Mo
Pioneer Mun Hi Inc Adv Tr MAV 11.64 10.92 -6.2 5.6 Fund (SYM) NAV Close /Disc Yld
Wstrn Asset Glbl Hi Inco EHI 10.63 9.20 -13.5 8.4 Pioneer Mun Hi Incm Tr MHI 12.63 11.52 -8.8 5.4
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Wstrn Asset High Inco II HIX 7.31 6.46 -11.6 8.8 U.S. Mortgage Bond Funds
Putnam Tr PMM 7.88 7.10 -9.9 5.4
Thomson Financial on July 13, and year-to-date stock performance of the company Wstrn Asset Opp Fd HIO 5.43 4.79 -11.8 6.9 PutnamMuniOpportunities PMO 13.10 11.63 -11.2 5.2 Vertical Capital Inc:A 12.29 NA NA 3.2
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer West Asst HY Def Opp Fd HYI 16.27 14.46 -11.1 7.6 Wstrn Asset Mngd Muni MMU 13.53 12.81 -5.3 5.9 Vertical Capital Inc:C 12.38 NA NA NS
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner Other Domestic Taxable Bond Funds WesternAssetMunTrFund MTT 20.82 21.03 +1.0 4.7 Loan Participation Funds
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: Ares Dynamic Credit Alloc ARDC NA 16.07 NA 7.2 Single State Muni Bond 504 Fund 9.63 NA NA 3.9
Barings Corp Investors MCI NA 15.22 NA 7.9 BlackRock CA Municipal Tr BFZ 14.88 12.91 -13.2 5.2 Angel Oak Str Crdt:Inst ASCIX 25.36 NA NA NS
unknown VP: vice president Excludes pure options transactions Blackstone/GSO FR EI I 24.89 NA NA NS
BlackRock Multi-Sector IT BIT 18.85 17.01 -9.8 8.9 BlkRk MuniHldgs CA Qlty MUC 15.09 13.18 -12.7 5.1
BlackRock Taxable Mun Bd BBN 23.29 21.94 -5.8 7.1 BlkRk MunHl NJ Qlty MUJ 15.29 12.96 -15.2 5.7 Blackstone/GSO FR EI T 24.84 NA NA NS
Biggest weekly individual trades Doubleline Oppor Credit DBL 20.22 20.99 +3.8 9.6 FedProj&TrFinanceTendr 10.01 NA NA 3.7

.
BlRk MuHldg NY Qlty MHN 14.37 12.41 -13.6 5.1
Duff & Phelps Utl & Cp Bd DUC 9.20 8.54 -7.2 5.8 BlkRk MuniYld CA Fd MYC 15.19 13.42 -11.7 5.2 FS Global Crdt Opptys D NA NA NA 5.9

ly
Based on reports filed with regulators this past week EtnVncLtdFd EVV 14.55 12.52 -14.0 7.4 Invesco Sr Loan A 6.75 NA NA 3.9
BlkRk MuniYld CA Quality MCA 15.33 13.35 -12.9 5.2
No. of shrs in Price range ($) $ Value Franklin Ltd Duration IT FTF 11.68 11.07 -5.2 12.3 BlkRk MuniYld MI Qlty MIY 15.08 12.93 -14.3 5.5 Invesco Sr Loan C 6.76 NA NA 3.2
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Invesco High Incm 2023 IHIT 10.13 9.94 -1.9 6.0 BlRk Muyld NY Qlty MYN 13.79 11.90 -13.7 5.0 Invesco Sr Loan IB 6.75 NA NA 4.1
KKR Income Opps Fund KIO NA 16.44 NA 9.3 Eaton Vance CA Mun Bd EVM 12.08 10.29 -14.8 5.2 Invesco Sr Loan IC 6.75 NA NA 4.0
MFS Charter MCR 8.79 7.90 -10.1 9.2 Invesco CA Value Mun Incm VCV 13.09 11.87 -9.3 5.3 Invesco Sr Loan Y 6.75 NA NA 4.1
Buyers
July 3
July 5-9
Intrexon
Energen
XON
EGN
R. Kirk
C. Icahn
CEOI
BI
on 7,479
171
13.37
73.64-75.58
100,000
12,736
15.38
74.46
33.5
29.3
Nuveen Build Am Bd Fd NBB 21.71 20.51 -5.5 6.0
PIMCO Corporate & Incm PTY NA 17.40 NA 8.9
PIMCO Corporate & Incm PCN NA 17.56 NA 7.6
PIMCO HiInco PHK NA 8.58 NA 11.6
Invesco PA Value Mun Incm VPV 13.69 11.92 -12.9 5.4
Invesco Inv Grade NY Muni VTN 14.21 12.81 -9.9 5.4
Nuveen CA AMT-Free Qual NKX 15.39 13.56 -11.9 5.4
Nuveen CA Muni Value NCA 10.25 9.56 -6.7 4.0
RiverNorth MP Lending RMPLX 23.26 NA NA 10.8