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as the ECB unveiled surprise pean Central Bank unveiled sur- ously signaled. It also will issue terest rates, a shift from her po- –1.0 –1.5%
plans to stimulate the euro- a fresh batch of cheap long-term sition last year.
zone’s flagging economy and By Nick Timiraos, loans for banks starting in Sep- Investors quickly reacted to a
–1.5
Fed officials signaled their Tom Fairless tember. ECB response to slowing global
growing reluctance to and Brian Blackstone Several top Fed officials, Please turn to page A9
raise U.S. rates at all. A1, A9 meanwhile, have stopped talking –2.0
Stocks fell after the ECB’s prise plans Thursday to about the need to lift interest ECB measures underscore
3 a.m. ET noon 4 p.m. noon
moves, with the Dow and S&P stimulate the Continent’s flag- rates, a stark change from three Draghi’s activism...................... A9
March 6 March 7
500 losing 0.8%. Government ging economy and Federal Re- months ago. The stance sug- Heard on the Street: New
bonds on both sides of the serve officials signaled their gests more officials won’t pencil stimulus to aid banks......... B12 Source: SIX
Atlantic strengthened. B11
China’s exports dropped
sharply last month, possibly
reflecting weakening de- House Votes to Condemn Hate Following Comments on Israel New Push
mand and the impact of the
Lunar New Year holiday. A9
The administration pro-
posed a rule that would raise
Calls for
the salary threshold for over-
time eligibility to $35,308 from
the current $23,660 a year. A2
The productivity of U.S.
Disclosing
workers is showing glim-
mers of recovery after years
of subdued increases. A2
Medical
The total net worth of U.S.
households dropped during
last year’s fourth quarter. A2
Prices
Hedge fund Hildene has BY STEPHANIE ARMOUR
tossed investment entities AND ANNA WILDE MATHEWS
of Purdue’s Sacklers due to
the family’s ties to opioids. B1 WASHINGTON—The Trump
administration is sounding out
MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
Plots Comeback
allies to commit by Friday high costs.
to a U.S. proposal to stabi- The administration’s vi-
lize northeastern Syria. A8 mark ronson & jordan peele sion—which would possibly in-
clude fines for noncompli-
The U.S. will ask North ance—is to arm patients with
Korea to admit American information needed to make
inspectors to a missile- health-care decisions much like
launch site that Pyongyang
Using contraband cellphone, disgraced shopping for other consumer
has begun to restore. A8 ‘Pharma Bro’ steers his old company services. Rates potentially
Cohen sued the Trump could be posted on public web-
Organization for not pay- BY ROB COPELAND neurs like Elon Musk and sites, where consumers would
AND BRADLEY HOPE regularly criticizes the justice check the negotiated price of a
ing legal fees that he al-
system with offbeat humor, service before they pick a pro-
leges he was owed for his
From a top bunk in a 12- such as a Jan. 25 “Memo to vider. That, in turn, could lead
work for the company. A4
person prison cell in Fort Roger Stone Jr.,” the former to lower copays or deductibles.
A Philadelphia law that Dix, N.J., Martin Shkreli is at Trump campaign adviser, in “It’s an effort by the presi-
will require most retail stores work on a big second act. which he hoped “a supra-ju- dent to help put Americans
to accept cash puts the city Wielding little more than a diciary entity will intervene back in control of price data,”
at the forefront of a debate contraband smartphone, the in your case.” He added: “P.S. said Dr. Don Rucker, national
over the cashless trend. A3
WSJ. MAGAZINE
disgraced pharmaceutical ex- Never, ever, ever snitch.” coordinator for health informa-
A French cardinal was ecutive remains the shadow Even his uniform of sweat- tion technology at the Depart-
found guilty of failing to re- power at Phoenixus AG, the pants and T-shirts remains ment of Health and Human
port child sex abuse by a drug company that became a essentially unchanged. Services. “Our interest is on
priest of his archdiocese. A10 national lightning rod for Mr. Shkreli reads about re- how can we empower the
jacking up the prices of rare search into fatty acids and Please turn to page A2
A French-Algerian man drugs under its former name, the prevention of cardiovas-
and his accomplice were Turing Pharmaceuticals AG. cular disease in the inmate
found guilty of a terrorist
attack that killed four in
Mr. Shkreli still helps call the
shots. A few weeks ago he
computer lab or on his
phone. He cuts his own hair
Scuffed Those Air Jordans? Call In the Sneaker Cleaners
Brussels in 2014. A10 rang up his handpicked chief with safety scissors and is i i i
executive during a safari va- growing a patchy beard. The
CONTENTS Opinion.............. A15-17
Business News...... B3 Personal Finance.. B5
cation—to fire him, according low-security federal correc- Footwear fans pay to keep shoes looking good; ‘works of art’
Crossword.............. A12 Sports....................... A14 to a person familiar with the tional institution is built on
Heard on Street. B12 Technology........... B4,6 exchange. the grounds of an old army BY RAY A. SMITH the front,” said the London- languish in limbo. “I was on the
Life & Arts...... A12-13 U.S. News............. A2-6 This is the secret life of in- base about 90 minutes from based 28-year-old market re- brink of throwing them away.”
Mansion............. M1-14 Weather................... A12
Markets............. B11-12 World News..... A8-10
mate 87850-053, 16 months Mr. Shkreli’s former multi- Moshood Olafunmishe rarely searcher. “I was so annoyed Pressure to keep limited-
into a seven-year sentence million-dollar Manhattan wore his $660 Kanye West-de- when I looked at it and knew edition, expensive footwear
for securities fraud. penthouse. signed, limited-edition Yeezy there was no way I was going looking good has long been
> He flouted Twitter Inc.’s He has made prison Boost sneakers, preserving to be able to do them justice.” high among luxury sneaker
ban from the social-network- friends, including “Krispy” them for special occasions only. Because the shoes are made of lovers. But a toothbrush and
ing site by posting from a and “D-Block,” some of When he did finally wear the knitted fused yarn, suede and soapy water are no match for
new account, @sriole, that whom affectionately call him shoes to a party recently, the have a fabric loop at the heel, today’s lavish styles which can
s 2019 Dow Jones & Company, Inc.
doesn’t list his name. On a “Asshole,” according to peo- unthinkable happened: Some- he knew they would require a cost more than $1,000 and
All Rights Reserved personal blog, he compares ple familiar with his new life. one spilled a drink on them. clean beyond his expertise. He feature at least three different
himself to famed entrepre- Please turn to page A11 “It was a massive stain on put the Yeezys away in a box to Please turn to page A11
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A2 | Friday, March 8, 2019 * * THE WALL STREET JOURNAL.
U.S. NEWS
U.S. Worker Productivity Picks Up Household
BY SHARON NUNN
Net Worth
WASHINGTON—U.S. worker
productivity, an important
Fell Late
driver of wage and output
growth, is showing glimmers of
recovery after years of sub-
Last Year
dued increases that held back BY HARRIET TORRY
the economy.
Output per hour of nonfarm The total net worth of U.S.
business-sector workers grew households dropped during the
at a 1.9% annual rate in the fourth quarter of 2018, as
fourth quarter and registered stock-market turbulence hit
the strongest nine-month Americans’ wealth and offset a
stretch of growth between slight gain in the value of real-
April and December since 2010, estate holdings.
averaging 2.2% growth during In a potential sign of cau-
that period last year. It beat tion, households and businesses
the 1.3% average growth regis- borrowed at a slower pace in
tered so far in the expansion the fourth quarter, and Ameri-
and was near a 2.1% post- cans saved a greater share of
World War II average. their incomes.
Productivity growth, along Household net worth—the
with growth in the labor force, value of all assets such as
are two key components of stocks and real estate minus li-
REBECCA COOK/REUTERS
Continued from Page One looked because it was tucked Hospitals are likely to push
American public to shop for into a 700-page draft regula- for insurers to be under the
their care and control it.” tion released last month on im- same transparency rules and
Industry officials say the ad- proving patients’ access to be required to release the ne-
ministration faces many hur- their electronic health records. gotiated discounts they pay for
dles before implementing such Many insurers and hospital patient care.
price transparency. The move groups declined to discuss the “They’d need to bring insur-
is likely to be met by fierce op- government’s request for com- ers and payers into the equa-
position, including possible le- ment, saying they were still Hospitals would have to disclose actual prices of procedures under a Trump administration proposal. tion because they have the
gal challenges, from hospitals, studying the idea. data to determine for patients
doctors groups and insurers Some hospital groups and which makes blocking of health you don’t know what the prices and building shopping tools what their costs should be,”
since it could have far-reaching insurers said mandating disclo- information illegal under pen- are,” said HHS’s Mr. Rucker. that show the negotiated costs said Chip Kahn, president of
impact. sure of negotiated rates could alty of up to $1 million, and Once publicly available, pa- for services charged by various the Federation of American
Insurers might demand the violate antitrust or contract from regulations stemming tients may have the benefit of hospitals and providers. Hospitals, which represents in-
same hospital discounts won law and that negotiated rates from federal privacy law. third-party technology compa- Out-of-network doctors vestor-owned community hos-
by competitors, while some are proprietary. The prices charged for nies aggregating the price data could try to compete with in- pitals and health systems.
hospital systems might push Hospital groups also said health care vary widely de-
for payment rates that match the rule is unnecessary be- pending on whether a provider
their crosstown rivals’. If doc-
tors’ negotiated rates become
cause they already publicly re-
lease their list prices. Hospitals
is in or out of the patient’s in-
surance network and on the in-
CORRECTIONS THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
public, other doctors could
lower their prices to try to lure
had to comply with that new
Trump administration require-
surer’s undisclosed price
agreements with hospitals.
AMPLIFICATIONS (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters:
away patients. ment this year. But the steep Employers and patients are 1211 Avenue of the Americas, New York, N.Y. 10036
The American Hospital As- discounts that insurers negoti- often unable to see which hos- Pakistan has 140 to 150 nu- Published daily except Sundays and general legal holidays.
sociation said it opposes the ate from the list prices remain pital systems and doctor’s of- clear warheads, according to Periodicals postage paid at New York, N.Y., and other mailing offices.
move. “Disclosing negotiated kept from public view. fices are driving prices up- the Stockholm International Postmaster: Send address changes to The Wall Street Journal,
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hospitals could undermine the could move to issue a final rule economists argue that the se- some editions Thursday, that All Advertising published in The Wall Street Journal is subject to the applicable
choices available in the private mandating the disclosure of crecy is a factor in why the reference was garbled in a rate card, copies of which are available from the Advertising Services Department,
market,” said Tom Nickels, an negotiated rates after the com- U.S. spends more per resident World News article about North Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The
executive vice president of the ment period closes May 3. on health care than any other Korea’s weapons programs, Journal reserves the right not to accept an advertiser’s order. Only publication of
an advertisement shall constitute final acceptance of the advertiser’s order.
trade group. “While we sup- The move follows a report developed nation. omitting the word “warheads.”
port transparency, this ap- on health-care markets issued Fully forcing the rates into Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
proach misses the mark.” in December by the Trump ad- the open could change the dy- The first name of Markus Need assistance with your subscription?
A group that advocates for ministration, which called for namics of the health market. Manns, a portfolio manager at By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
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will be a huge step towards ity of health costs, among consumers often show limited ticle about litigation over
true pricing transparency and other sources. inclination to shop for health- Roundup weedkiller. WSJ back issues and framed pages: wsjshop.com
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THE WALL STREET JOURNAL. Friday, March 8, 2019 | A3
U.S. NEWS
Philadelphia
Keeps Cash
On the Table
City will make stores mobile payments will speed
up transactions and reduce
accept paper money lines. Ten kiosks around the
to ensure access by arena will convert cash to a
prepaid debit card with no
lower-income patrons transaction fee.
But backers of measures
BY SCOTT CALVERT forcing stores to accept cash
say they worry about people
Philadelphia is the first ma- who don’t have credit or debit
MARK MAKELA/REUTERS
jor U.S. city to ban cashless cards. Supporters also say some
stores, placing it at the fore- consumers prefer to pay with
front of a debate that pits retail currency for privacy reasons.
innovation against lawmakers “I think it’s more the future
trying to protect all citizens’ than a fad, and that’s why
access to the marketplace. there is a need for a legislative
Starting in July, Philadel- response,” said New York City A Starbucks barista gives change to a customer in Philadelphia. Starting in July, the city will require most retail stores to accept cash.
phia’s new law will require Councilman Ritchie Torres, a
most retail stores to accept Democrat, who is sponsoring to be part of it,” she said. Cold, Hard and Here to Stay
cash. A New York City council- legislation to ban cashless A survey by the city found a
As stores across the country go cashless, consumers still reach for cash for 30% of their payments.
man is pushing similar legisla- stores. handful of retailers don’t take
tion there, and New Jersey’s Philadelphia City Council- cash, including the salad chain This number is down from 33% ...but cash is still the preferred method of payment for smaller
legislature recently passed a man William Greenlee, a Dem- Sweetgreen, at least one cloth- in 2015... transactions and by lower-income households.
bill banning cashless stores ocrat, said he was inspired to ing store and some eateries at
Share of payments, 2015-17 Share of payments, by amount
statewide. A spokesman for introduce the bill after notic- a University of Pennsylvania
New Jersey Gov. Phil Murphy, ing some Center City sandwich food court. Sweetgreen and 40 % Cash Debit $- 55% 21 14 10
a Democrat, declined to com- shops had gone cashless. Penn declined to comment on Credit Other* $- 32% 34 25 9
ment on whether he would “Most of the people who the legislation. 33% $- 20% 33 28 19
sign it. Massachusetts has don’t have credit tend to be Before the City Council 30 30%
$- 15% 28 26 31
gone the farthest on the issue lower income, minority, immi- passed the legislation, Ama- $+ 7% 18 18 57
and is the only state that re- grants. It just seemed to me, if zon expressed concern about
quires retailers to accept cash. not intentional, at least a form the impact on its ability to 20 Share of payments, by income
The measures seek to blunt of discrimination,” he said. open cashierless Amazon Go
$-k 47% 27 7 19
a nascent trend that could Now, he said, stores will be re- convenience stores in Phila-
10 $-k 36% 29 13 22
rapidly accelerate thanks to quired “to do what businesses delphia, city officials said.
Amazon.com Inc.’s power to have been doing since Ben The company says on its web- $-k 27% 31 19 23
shape nationwide retail Franklin was walking the site that it has Go stores in $-k 31% 29 21 19
0 33% 31% 30% $-k 24% 23 30 23
trends. They represent an at- streets of Philadelphia.” San Francisco, Chicago and
tempt to strike a balance be- Philadelphia Mayor Jim Seattle. Customers, who must 2015 ’17 $k+ 24% 21 33 22
tween equity for lower-income Kenney, a Democrat, signed have Amazon accounts, swipe *Other includes electronic payments and checks.
consumers and merchants’ ea- the bill into law last week. His their smartphones as they en- Source: Federal Reserve Bank of San Francisco
gerness to embrace technolog- spokesman noted that 26% of ter the store and are automat-
ical advances. city residents live below the ically charged for any items The law also has a provi- mobile app, a Prime member- Goldie, a falafel shop, said he
Businesses that have gone poverty line and many don’t they take. sion meant to accommodate ship isn’t required to shop understands the impetus be-
cashless point to greater effi- have a bank account. Cash can An Amazon spokesperson the Amazon Go model, an aide there, said a Commerce De- hind the new law but thinks
ciency for employees, who be loaded onto prepaid debit declined to comment. to Mr. Greenlee said. It ex- partment spokeswoman. the world is moving toward a
don’t have to make change or cards, but those come with The Philadelphia law has empts “transactions at retail The company has taken cashless society.
count cash at closing time, various fees. several carve-outs. The cash stores selling consumer goods steps to broaden its customer The Goldie shop at Penn
and improved safety because Sylvie Gallier Howard, a top requirement won’t apply to exclusively through a member- base to include lower-income will start taking cash due to
workers don’t have to carry official in the city’s Commerce parking garages or lots; ship model that requires pay- consumers, such as by offering the legislation, and two other
large bank deposits. Department, told City Council wholesale clubs like Costco ment by means of an affiliated a discounted version of its Goldie locations already ac-
Mercedes-Benz Stadium in members last month she that sell to consumers through mobile device application.” Prime membership service to cept cash, said Mr. Cook. “I
Atlanta, which on Sunday will hoped the ban proves to be a membership model; or But Amazon told the city Americans who qualify for don’t think it’s great policy,”
be the first NFL stadium to go temporary. “Modernization is rental-car companies or hotels that provision won’t apply to Medicaid and other govern- he said, “but it’s not going to
fully cashless, said requiring going to happen with or with- where a credit-card deposit is Amazon Go because, while ment-assistance programs. be make-or-break for whether
fans to use plastic or make out Philadelphia, and we want often required for incidentals. payment would be made via Steven Cook, co-owner of our business is successful.”
about how best to tackle this The Trump administration which was issued in the final
issue. On Tuesday, an Ohio attempted to delay the rule’s weeks of the Obama adminis-
teenager testified before Con- implementation last year, tration, view it as a check on
gress that his mother believes which would require school schools that knowingly or un-
the false claim that vaccines districts not to place dispro- knowingly move minority stu-
cause autism because of what portionate numbers of minor- dents down paths that can
she read on Facebook. Ethan ity students—either too many lead to lower educational at-
Lindenberger, 18 years old, or too few—into special-edu- tainment.
said he got vaccinated against cation tracks or isolated set- Black students are more
his mother’s wishes. tings at school. The rule was than twice as likely to be iden-
In its crackdown, Facebook originally set to take effect in tified as having an intellectual
will ban ads that include misin- July 2018, before the Trump disability or emotional distur-
formation about vaccines and administration delayed it. bance as their peers, accord-
will tweak its algorithms so The federal judge, Tanya S. ing to Education Department
pages that spread this type of Ethan Lindenberger, center, testified before Congress this week about being vaccinated against his Chutkan, an Obama appointee data compiled before the rule
content are no longer recom- mother’s wishes. She thinks vaccines cause autism because of what she saw on Facebook, he said. on the District of Columbia was delayed. Hispanic stu-
mended. It will also downgrade district court, argued in her dents are 40% more likely to
those pages in the platform’s from the World Health Organi- On Wednesday, Facebook months due to measles out- opinion that the delay violated be identified as having a
news feed and in search results zation and the U.S. Centers for pledged to provide end-to-end breaks in areas or communi- administrative law, and that learning disability, while Na-
so they don’t spread as easily. Disease Control and Prevention encryption technology to all ties across the U.S. with low there was little evidence states tive American students are
The effort began Thursday, to determine the validity of its instant-messaging clients. vaccination rates. Lawmakers were unprepared to comply in 90% more likely.
but it will take several weeks vaccine information. The com- The company said that it was in several states have recently time. “Some racial disproportion-
to take full effect. It will also pany is also exploring new too early to speculate on how introduced legislation to bar “For 18 months between the ality is justified, and some of
extend to Instagram, where the ways of presenting users with it might police vaccine misin- personal and religious exemp- effective date of the [Obama it’s unjustified,” said Seth Gal-
company will stop displaying scientifically backed informa- formation on these messaging tions to vaccinations. regulations] and the compli- anter, who worked in the
antivaccine messages on its In- tion whenever it encounters platforms, whose content A study published in the ance date, states were prepar- Obama Education Depart-
stagram Explore and hashtag vaccine misinformation on its isn’t visible to Facebook, but Annals of Internal Medicine ing to utilize the standard ment’s office for civil rights.
pages. platforms. added that it was committed on Tuesday found no link be- methodology” set forth by the “What we want states and
Vaccine misinformation has to safety. Facebook has al- tween the measles, mumps, rule, she wrote. school districts to do is figure
become a new battleground as ready limited users’ ability to rubella vaccine and autism, The Education Department, out whether it’s the good kind
technology companies grapple forward messages on its en- confirming previous scientific which delayed the rule last or the bad kind, and if so
with how and when to police
The company’s move crypted WhatsApp platform, research. This study followed year, argued at the time it spend other federal money on
content on their platforms. comes as lawmakers in a bid to prevent misinfor- more than 600,000 Danish would have required schools early interventions” to prevent
Last month, Pinterest Inc. said mation from going viral. children born between 1999 to set arbitrary quotas for the more students from being di-
it had temporarily blocked
consider how to Concerns about vaccina- and 2010 from one year of number of children requiring rected toward special educa-
searches for vaccine-related tackle the problem. tion date back decades, but age until August 2013. special education. The depart- tion later on.
content on its visual discovery antivaccine messages have Measles was officially de- ment in one analysis esti- The Trump administration’s
platform. YouTube, owned by mushroomed in the internet clared eliminated in the U.S. mated that nearly half of all opposition to the rule also
Alphabet Inc., has also prom- era, said Jonathan Jarry, a in 2000, but incidences have school districts would be iden- falls in line with its broader
ised to crack down on this type As part of the changes, science communicator with increased in recent years with tified for having dispropor- disapproval of a legal philoso-
of content. Facebook has already removed the Office for Science and So- a rise in state-sanctioned tionate numbers of minority phy known as “disparate im-
Tech companies have also a controversial advertising op- ciety at McGill University, exemptions in some areas, students in special-education pact,” which prohibits racial
battled terrorism-recruitment tion that let advertisers target which tracks scientific misin- allowing parents to have their programs under the Obama discrimination on the basis of
campaigns, hate speech and users who were interested in formation. Social-media mes- children opt out of vaccina- standard. a policy’s impact, rather than
sexual harassment—moves that “vaccine controversies.” sages are particularly adept tions for personal and reli- A spokeswoman for the de- acts of deliberate racism. Late
have opened them up to com- “We are fully committed to at tapping into messages of gious reasons. There have partment, Liz Hill, said it was last year, the administration
plaints of censorship and polit- the safety of our community fear. “The misinformation been 206 confirmed cases of now reviewing its legal op- withdrew another Obama pol-
ical bias. Critics say the con- and will continue to expand on works in part because it can measles in the U.S. across 11 tions. icy directing schools not to
tent-moderation process on this work,” Monika Bickert, be very easy to find,” Mr. states since Jan. 1, according Educators and policy ex- discipline minority students at
these platforms is often opaque Facebook’s vice president of Jarry said. to the CDC. perts have been at odds over disproportionately high rates,
and arbitrary. global policy management, said Public backlash against the the need for the rule. Some ar- and it has undone similar poli-
Like Pinterest, Facebook in a post on the company’s antivaccine movement has re- China’s WeChat sets example gue that too few minority stu- cies in housing and consumer
says it will rely on information website. surfaced in the past several on messaging............................. B1 dents, rather than too many, protection.
A4 | Friday, March 8, 2019 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL.
U.S. NEWS
JIM LO SCALZO/EPA/SHUTTERSTOCK
BY NATALIE ANDREWS springs from a debate between be an asterisk next to anti-Sem- House Speaker Nancy Pelosi
leadership and members that itism—and I will continue to (D., Calif.), asked during her
WASHINGTON—The House flared after Ms. Omar’s com- fight it and any form of preju- weekly briefing if Ms. Omar
on Thursday overwhelmingly ments on Jews and Israel. dice, no matter who says it.” should apologize or if she
approved a resolution con- The resolution had initially “We’ve got a lot of new thought Ms. Omar’s words
demning hate in all forms, a been drafted to condemn anti- members that haven’t been in were offensive, defended the
response to a freshman Demo- Semitism, but following a this position before,” said Rep. freshman congresswoman.
crat’s remarks that were seen tense closed-door meeting of Dan Kildee (D., Mich.), the chief “I don’t think that the con-
as anti-Semitic, but the move Democrats on Wednesday, lan- deputy whip, acknowledging gresswoman perhaps appreci-
also exposes the rift that is guage condemning anti-Mus- Rep. Ilhan Omar is one of three Muslim members of Congress. there is a reason to be con- ates the full weight of how it
roiling Democratic leadership lim bias was added at the re- cerned, but not panicked about was heard by other people, al-
as it struggles to find common quest of lawmakers in the against anti-Muslim bigotry. money in politics, most re- how the first two months of the though I don’t believe it was in-
ground with its newly embold- party’s progressive wing who A Somali refugee, Ms. Omar cently in a public forum last Democratic majority are going. tended in any anti-Semitic
ened progressive wing. said Ms. Omar had been un- immigrated to the U.S. when week, that some people de- Republicans have been way,” Mrs. Pelosi told reporters.
At issue were comments fairly singled out, underscor- she was 12. In Congress, she has scribe as anti-Semitic and quick to call out Democrats Jeremy Slevin, a spokesman
from Rep. Ilhan Omar (D., ing the debate taking place joined her party’s left flank as a have drawn sharp criticism over their own infighting over for Ms. Omar, said the con-
Minn.), who last week spoke of within the Democratic caucus. vocal advocate for single-payer from Democrats and Republi- how to condemn anti-Semitism gresswomen was trying to say
people who “push for alle- Ms. Omar, who voted for health care, gun control and ex- cans alike. The reverberations and have called on Democratic there is a distinction between
giance to a foreign country,” the resolution, called it “great panding U.S. immigration. in particular have revealed di- leadership to remove Ms. criticism of a particular faith
which many listeners viewed progress” in a statement with In her first months in Con- visions in the Democratic cau- Omar from her House Foreign and fair critiques of lobbying
as referring to Israel. the other two Muslim mem- gress, she has faced a backlash cus still navigating its new Affairs Committee post. groups, and that “to suggest
The resolution—which bers of Congress, as it was the for repeated comments about majority position in the House. “A watered-down condem- otherwise is an inaccurate
passed 407-23, with Rep. Steve first time the House had voted U.S. policy toward Israel and “It was also clear from the nation of hate does little to al- reading of her remarks.”
Window for
Bipartisan Deals
Narrows Fast
BY KRISTINA PETERSON president legislative wins,” he
said, adding that “the presi-
WASHINGTON—Intensify- dent is not likely to react well
ing partisan conflict in Con- to wide-ranging attacks on his
gress is further clouding pros- family and businesses.”
pects for any major legislative Mr. Trump indicated Tues-
compromises with the White day that House Judiciary Com-
House in the few months be- mittee Chairman Jerrold Na-
OCTAVIO JONES/TAMPA BAY TIMES/ZUMA PRESS
fore the 2020 election cycle dler’s request for records from
consumes Capitol Hill. more than 80 people and or-
President Trump, Senate ganizations related to Mr.
Republicans and Democrats Trump’s business dealings
now in control of the House didn’t leave him inclined to-
began the year with a short ward bipartisan compromise.
list of shared policy goals, in- “It’s too bad, because I’d
cluding investing in infrastruc- rather see them do legisla-
ture and lowering the cost of tion,” Mr. Trump said of House
prescription drugs. Democrats. “We have so many
But House Democrats’ things—actually things that we
ratcheting up of investigations agreed on, like infrastructure.”
into the Trump administration, House Democrats say they Infrastructure spending is an area that both congressional Democrats and President Trump have identified as a legislative priority.
along with a possible rules can conduct oversight probes
change by Senate Republicans of Mr. Trump and his adminis- ment on Wednesday. they could run and get in front activity. But comity in the Sen- could be accomplished in the
to speed up the confirmation tration without sacrificing The House Ways and Means of,” said Rep. Earl Blumenauer ate may also take a hit if Re- time between the five-week
of nominees, is fueling a more their ability to work with him Committee held a hearing (D., Ore.), referring to the publicans go forward with a government shutdown that
partisan climate that is ex- on legislation, but they ac- Wednesday to examine poten- Trump administration. rule change allowing them to ended last month and the
pected to make legislating knowledge the difficulty. tial methods of paying for a Many House Democrats be- confirm some lower-level nom- 2020 election cycle, which tra-
more challenging. “This is our challenge,” said major infrastructure package, lieve passing bipartisan legisla- inees more quickly. The pro- ditionally leaves congressional
Already, “the antagonism Rep. Jamie Raskin (D., Md.), a long the biggest obstacle on an tion will help protect their vul- posal would cut the amount of leaders reluctant to force law-
level has reached a fever pitch. member of the Judiciary Com- issue that has bipartisan sup- nerable colleagues up for re- time the chamber has to con- makers to take tough votes.
In theory, it’s hard to imagine mittee, saying Democrats must port. While many lawmakers election in the most competitive sider many nominees after a Democratic presidential pri-
a lot of complicated things get- press their policy agenda on are skeptical an infrastructure districts. “If we don’t do some- key procedural vote to two mary debates are set to begin
ting done,” said Stewart Verd- issues including gun control deal will come together, some thing about prescription drugs, hours from 30 hours. this summer.
ery, a former GOP Senate aide and health care while “at the are hopeful that Mr. Trump the American people are going “If we don’t do that, we’re The biggest hurdle may be
and now chief executive of same time we are defending might embrace a way to de- to be very upset,” said Rep. Deb- going to be so wrapped up on what Mr. Trump is willing to ac-
Monument Advocacy, a biparti- the Constitution and the Bill of liver on an unfulfilled promise bie Dingell (D., Mich.). confirmations that there cept in negotiations. His shift-
san lobbying group. Increasing Rights against corruption and from his 2016 campaign—to Across the Capitol, a crop of wouldn’t be any opportunity to ing stance during the shutdown
partisan conflict is only going lawlessness in the executive inject $1 trillion or more into Senate Republicans up for re- do anything else anyways,” said left Republicans guessing over
to heighten the animosity, he branch of government.” the nation’s roads, dams, air- election next year in swing Sen. Kevin Cramer (R., N.D.). what would end the standoff.
said. “Democrats are not going The White House didn’t re- ports and bridges. states also are seeking oppor- Many lawmakers already —Ted Mann
to be very excited to give the spond to a request for com- “It could be a parade that tunities to promote bipartisan were pessimistic about what contributed to this article.
Organization of having last March to invalidate an Oc- ruling Thursday that Ms. Clif- request for comment.
“breached the covenant of tober 2016 nondisclosure ford isn’t in line for attorney’s Judge Otero said in his
good faith and fair dealing,” agreement she signed to keep fees and that the assurances Thursday order that he didn’t
alleging that the company quiet about an alleged sexual that the president and Mr. Co- have the authority to rule on
failed to reimburse his legal encounter with Mr. Trump. hen won’t sue her for any vio- the issue of whether the
expenses “only after it became The lawsuit lost steam when lations of the nondisclosure $130,000 needs to be returned.
clear that Mr. Cohen would co- Mr. Cohen and the president in agreement “eliminate the case —Sara Randazzo
operate in ongoing investiga- Michael Cohen on Wednesday after testifying before a House panel.
tions into his work for the
Trump Organization” and into gested that Mr. Cohen had the Trump Organization ini- House. Ryan, his lawyer at the time, Mr. Cohen said that
executives at the company. started cooperating with in- tially upheld the agreement, In April 2018, federal stopped representing him due through June 2018, when the
As of January 2019, Mr. Co- vestigators because the com- paying the law firm represent- agents raided Mr. Cohen’s to the company’s refusal to payments stopped, the Trump
hen said his unreimbursed le- pany stopped paying his legal ing him $137,460 in October home, office and hotel room pay his legal fees and is still Organization directed more
gal fees amount to more than fees—rather than the reverse, 2017, while the Trump cam- as part of an investigation owed more than $1 million in than $1.7 million for his attor-
$1.9 million. He said he asked which Mr. Cohen alleged. paign footed the bill for an into hush-money payments he fees. ney’s fees, either by paying
the Trump Organization on “Cohen is now laying out additional $230,000 between arranged during the 2016 cam- In the months leading up to through the company or
Jan. 25 to reimburse him for another reason he turned and that month and January 2018, paign to two women who al- June, Mr. Cohen frequently through the Trump campaign,
those fees, but that the com- started lying because he according to Federal Election leged sexual encounters with told associates he was frus- according to the lawsuit.
pany hasn’t responded. wanted continued payment of Commission records. Mr. Trump. Mr. Trump has de- trated that the president In August, Mr. Cohen
Marc Mukasey, a lawyer for his legal fees,” Mr. Giuliani In December 2017, he said nied the affairs. hadn’t offered to pay his legal pleaded guilty to eight
the Trump Organization, said said. the company said it would In June, when Mr. Cohen fees, which he said were charges, including two cam-
late Thursday: “The Trump Or- In the suit, Mr. Cohen said continue to pay Mr. Cohen’s said he began telling friends “bankrupting” him, the Jour- paign-finance violations for
ganization doesn’t owe Mi- that in July 2017, he entered legal fees—an assurance that and family that he was willing nal reported at the time. He arranging hush-money pay-
chael Cohen one penny of legal into an agreement with the Mr. Cohen said came after he to cooperate with investiga- said he felt Mr. Trump owed ments during the 2016 elec-
fees. This is a desperate Trump Organization in which made a “direct appeal” to tors, Mr. Cohen said in the him after his years of loyalty tion to two women who al-
money grab by a desperate the company would pay for his Donald Trump Jr. and Eric lawsuit that the Trump Organ- to the former real-estate de- leged sexual encounters with
convicted felon.” legal fees related to investiga- Trump, the president’s sons, ization stopped paying his veloper, whom he served for Mr. Trump. Mr. Cohen pleaded
Rudy Giuliani, a lawyer for tions that stemmed from his who are running the company lawyers, “without notice or nearly a decade at the Trump guilty to a ninth charge, lying
Mr. Trump, on Thursday sug- work for the company. He said while he is in the White justification.” He said Stephen Organization. to Congress, in November.
A6 | Friday, March 8, 2019 * ***** THE WALL STREET JOURNAL.
U.S. NEWS
U.S. WATCH
thousands of data points
about prospective students,
ranging from biographic infor-
mation to test scores and
notes on interviews with ad-
missions counselors.
Technolutions CEO Alexan-
der Clark said the company
was aware of three colleges
where an unauthorized party
reset college staff members’
passwords and then used them
to gain access to the database.
“We have advised all of our
colleges and universities to re-
view the security practices of
their single sign-on and pass-
word reset systems,” he said.
A copy of the note circulat-
ing on Reddit and confirmed
by one of the schools said stu-
dents could “purchase your
entire admission file,” includ-
ing “comments by admissions
officers, assigned ratings, in-
terview report (if present),
teacher recommendations,
tentative decision (if applying
for regular)” admission. It
sought a ransom of 1 bitcoin,
or more than $3,800.
A subsequent email lowered
HUGH CAREY/SUMMIT DAILY NEWS/ASSOCIATED PRESS
To Prison vestigation. against him related to bank- Ford, Ronald Reagan, George
DANA VERKOUTEREN VIA ASSOCIATED PRESS
WORLD NEWS
U.S. Urges Allies to Commit to Syria Plan
Trump administration
sets Friday target for
accepting proposal on
post-ISIS strategy
BY NANCY A. YOUSSEF
AND DION NISSENBAUM
WORLD NEWS
ARMANDO BABANI/EPA/SHUTTERSTOCK
the global economic slow- omy in early 2015, months af- for its exports from China and
down. ter the Federal Reserve ended elsewhere, the eurozone’s
The ECB said Thursday it its own program. economy grew at the fastest
would hold interest rates at “We never thought we were rate in a decade during 2017,
subzero levels at least behind the curve,” Mr. Draghi outpacing the U.S. But it
through December, months said at a news conference slowed sharply last year as
longer than previously sig- Thursday, and “in any event those sources of support
naled. It also announced plans today we are not behind the waned, growing at its weakest
for a series of cheap long- curve, for sure.” pace since 2014.
term loans for banks, a stimu- ECB officials are treading a On Wednesday, the Organi-
lus tool it hasn’t rolled out for careful path between provid- zation for Economic Coopera-
three years. ing sufficient support for the tion and Development slashed
The measures underscore region’s softening economy its forecast for eurozone ‘The persistence of uncertainties related to
the activism of the ECB under while avoiding any appearance growth this year to 1%, from a
President Mario Draghi since of panic, which could ricochet 1.8% projection in November. geopolitical factors, the threat of protectionism and
he became president in No- through financial markets. In contrast, it only shaved
vember 2011. Under his watch But some analysts ques- slightly its projections for the vulnerabilities in emerging markets appears to be
the ECB has installed negative tioned whether the ECB would U.S. and China, by 0.1 percent-
interest rates, launched cheap, have enough ammunition left age point each to 2.6% and leaving marks on economic sentiment.’
long-term loans to banks and to deal with any fresh eco- 6.2%, respectively.
bought swaths of government nomic shock, such as a British The ECB’s early response
and corporate bonds. exit from the European Union should allow it to “get the big- ECB President Mario Draghi at a news conference on Thursday
He hasn’t raised short-term with no agreement or a deci- gest bang for its buck,” said
interest rates, and Thursday’s sion by the U.S. to place tar- Ms. Ward. “They’ve done the most of the blame for the eu- sentiment,” Mr. Draghi said. ECB’s target of just below 2%.
move effectively ensured he iffs on European autos. right thing in terms of using rozone’s weakness on external Still, Italy’s economy, the Mr. Draghi argued that the
will end his eight-year tenure “In terms of regional appe- their ammunition early,” she factors. eurozone’s third largest, slid likelihood of a recession is
with a negative policy rate. tite for assets, Europe is still said. “The persistence of uncer- into recession at the end of “very low.” Thursday’s deci-
Though Mr. Draghi has the lowest in the pile because Although the global econ- tainties related to geopolitical last year, while Germany nar- sion was unanimous, he said
been credited with holding the the capacity for stimulus is omy has weakened in recent factors, the threat of protec- rowly avoided a second quar- at a press conference Thurs-
euro together through the less than elsewhere,” said months, Europe seems to be tionism and vulnerabilities in ter of negative growth. The re- day. “Given the complexity of
ECB’s policies and his famous Karen Ward, chief market feeling the brunt of it. emerging markets appears to gion’s inflation rate has fallen the package, I think this is a
2012 pledge to do “whatever strategist for EMEA at J.P. Mr. Draghi continued to pin be leaving marks on economic to 1.5%, some way from the very positive sign,” he said.
WORLD WATCH
CANADA ment. amid what appeared to be one But as night wore on in Cara-
Ms. Wilson-Raybould said in of the biggest blackouts yet in a cas, patience was running thin.
Trudeau Laments testimony last week she had re- country where power failures Residents threw open their win-
‘Erosion of Trust’ viewed the case in September, have become common. dows and banged pots and pans
after a meeting with the prime The power outage began just in the darkness. Some shouted
Prime Minister Justin minister, and stood by prosecu- as commuters were leaving work. out expletives and Mr. Maduro’s
Trudeau acknowledged missteps tors’ decision to not proceed Hundreds crammed the streets name in a sign of mounting
in his office’s dealings with the with an out-of-court settlement. of Caracas, forced to walk be- frustration.
former attorney general, in an “Even though I heard she cause subway service was The outage comes as Vene-
effort to move beyond a political made a decision, I asked her if stopped. A snarl of cars jammed zuela is in the throes of a politi-
firestorm consuming his govern- she could revisit that decision. the streets amid confusion gen- cal struggle between Mr. Maduro
ment and threatening his re- She said that she would,” Mr. erated by blackened stoplights. and opposition leader Juan
FEISAL OMAR/REUTERS
election prospects. Trudeau said, recounting a Sept. President Nicolás Maduro Guaidó, the head of congress
The former attorney general, 17 encounter he had with Ms. blasted the outage as an “elec- who declared himself the na-
Jody Wilson-Raybould, in parlia- Wilson-Raybould. He added he trical war” directed by the U.S. in tion’s rightful president in Janu-
mentary testimony last week ac- wasn’t aware she had made up a statement on Twitter. His in- ary and is recognized by the U.S.
cused aides in Mr. Trudeau’s of- her mind. formation minister, Jorge and about 50 nations.
fice and other officials of “There was an erosion of Rodríguez, said right-wing ex- Mr. Guaidó took to Twitter to
pressing her repeatedly and in- trust, a lack of communications SOMALIA BLAST: A car bomb near a checkpoint at the presidential tremists intent on creating pan- blast Maduro for the outage.
appropriately to drop the crimi- to me and to my office about palace in Mogadishu killed at least two people, police said. demonium by leaving the South “How do you tell a mom who
nal prosecution of SNC-Lavalin her state of mind on this, and American nation without power needs to cook, an ill person who
Group Inc., an engineering and that is certainly something I am time friend and confidant, Gerald VENEZUELA for several days were behind the depends on a machine, a worker
construction company based in going to have to reflect on as a Butts, who until a few weeks blackout, but he offered no who should be laboring that we
the politically important province leader going forward,” he said. ago was one of Canada’s most Power Outages Hit proof. are in a powerful country with-
of Quebec. Mr. Trudeau’s news confer- powerful officials. He also denied Much of the Nation “A little bit of patience,” Mr. out electricity?” he wrote, using
Mr. Trudeau said Thursday ence was an effort to counter wrongdoing and said discussions Rodríguez urged on state televi- the hashtag #SinLuz, meaning
they contacted Ms. Wilson-Ray- the events relayed by the for- with Ms. Wilson-Raybould were Much of Venezuela plunged sion. “If you’re in your home, without light. “Venezuela is clear
bould believing she would review mer attorney general. This the usual thrust-and-parry of into darkness Thursday evening, stay in your home. If you’re in a that the light will return with
whether the company was eligi- builds on Wednesday’s testi- crafting policy. creating chaos as people strug- protected space or at work, it’s the end of usurpation.”
ble for an out-of-court settle- mony from Mr. Trudeau’s long- —Paul Vieira gled to navigate their way home better for you to stay there.” —Associated Press
A10 | Friday, March 8, 2019 THE WALL STREET JOURNAL.
WORLD NEWS
YVES CAPELLE/REUTERS
from 1971 to 2015, occurred a Holy Father to hand in my res- about possible measures for by The Wall Street Journal.
decade before Cardinal Bar- ignation, he will meet me in a disciplining bishops who en- Father Preynat was removed
barin became archbishop but few days,” Cardinal Barbarin gage in or cover up abuse. from parish work in August
came to the cardinal’s attention told reporters. A spokes- Pope Francis called on society 2015 and admitted wrongdoing
in the late 2000s. woman for the archdiocese to wage an “all-out battle” to police. He is under investi-
Cardinal Barbarin failed to said the cardinal was resign- against all abuse of minors, gation and faces preliminary
report a crime in March 2010 ing only from his duties in but disappointed critics with a charges of child sexual abuse. A courtroom sketch of convicted Frenchman Mehdi Nemmouche
OR
E
D F
G
E
A
I R
T
S W
N
W
A
NE
AD V
TRAMAINE OXLEY
discovered a sneaker-cleaning launched Other Peoples Kicks in you didn’t just buy a new Guardiola, in London last year.
business on Instagram with be- January. The 41-year-old used pair?’,” said Sindu Carty, a 27- The 30-year-old travel agent
fore-and-after pictures of to clean and restore sneakers year-old college student from cleans and restores expensive
cleaned-up kicks. After mailing from his own extensive collec- Brooklyn, after seeing what Mr. sneakers out of the garage of
in his Yeezys and paying about tion, currently at around 400 Tramaine Oxley with some of the shoes he has worked on. Oxley had done on her scuff- his home. Now he counts Mr.
$35, he says he got them back a pairs, as a hobby, learning from marked and dirty $500 Yeezys. Olafunmishe among his clients.
few weeks later looking practi- YouTube. elaborate step-by-step direc- works out of the kitchen of his “I didn’t believe it.” A beat-up pair of Balenciaga
cally brand new. Now, he can Confident he had mastered tions. Methods vary, but can in- Brooklyn apartment, in the wee “A sneakerhead can’t walk sneakers from another cus-
take out any of his 20 high-end the skills after two years, the clude disinfectant wipes, non- hours before and after work. around in dirty sneakers; that’s tomer took him about two
sneakers whenever he wants. retired Marine set up “a catchy gel toothpaste, a leather The 37-year-old, who drives for like a huge faux pas,” said Rich- hours to get in decent shape. “I
The desire to keep these name,” business cards, a web- moisturizer and a suede and Uber by day, says he is self- ard Dudley, a security consul- wasn’t able to get it ‘factory
harder-to-clean shoes looking site and UPS Drop Box. “I love leather protector spray. taught, having cleaned his and tant who in 2015 founded Be- fresh’ but he was happy with
“fresh out the box,” has created helping people,” he said. Tramaine Oxley, whose his friends’ sneakers for years. spoq, a Washington, D.C.-based them,” he said. “Luckily enough
an emerging industry of self- How-to-clean videos abound seven-month-old business goes His tools include a microfiber service that specializes in shoe the person I was cleaning it for
proclaimed sneaker-cleaning on YouTube with sometimes by the name Sneaker_staykrisp, cloth, a soft brush, a hard-bris- shines and sneaker cleaning. was a friend of a friend.”
securities-fraud conviction.
Shkreli’s That left Mr. Mulleady in
charge of day-to-day opera-
tions, right as the company’s
Comeback business degenerated. He
sometimes exchanged mes-
Insurance
Option Is
Proposed
BY JOSEPH DE AVILA
Democratic lawmakers in
Connecticut introduced legisla-
tion Thursday that would create
a public option for health-care
coverage, allowing individuals
and small businesses to buy in-
surance through the state.
Under the proposal, Con-
necticut would create multiple
plans that small businesses
and their employees could buy
starting in July, leveraging the
state’s existing purchasing
power to lower costs. And in
2021 Connecticut would begin
offering a new health-insur-
ance option that any state res-
ident would be able to join.
The public insurance would
offer more inexpensive cover-
age options for small busi-
nesses and for individuals who
don’t qualify for subsidies
through the Affordable Care
Act, officials said.
SPENCER PLATT/GETTY IMAGES
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Paula Beer and Franz Rogowski, left; Mr. Rogowski and Lilien Batman,
above; Mr. Rogowski (center left) with other members of the cast of
Christian Petzold’s ‘Transit,’ below
MUSIC BOX FILMS (3)
I
nstead of summoning up from work and watches. She to some distant, beckoning free- the dead man’s wife, an anguished bidden.
the haunting strangeness doesn’t listen, since she’s pro- dom. The film is also set in France, beauty played by Paula Beer.) The refugee’s plight, as “Tran-
of Christian Petzold’s foundly deaf, but soon, signing and Georg, the German hero, has This audacious blurring of time sit” sees it, is neither temporal nor
“Transit” by summarizing briskly, she tells her son to tell similarly escaped from Germany, and place surely sounds problem- transitory, but an infection of the
the action, which is spo- Georg that she’d like to watch him with hopes of ending up elsewhere, atic, and some have decried the soul that feeds on the isolation
radic, or specifying the sing the song again. Which he but that’s where the parallels end. erasure of historical fact—no men- that precipitated it. Surrounded by
time and place, which are ambigu- does, with redoubled feeling that’s Georg’s travails play out in lay- tion of the Nazis or the Jews they others in perpetual transit, Georg
ous, let me recount a sequence that reflected on her face. ered slices of time. He is visibly a persecuted. But the result is pro- loses hope. Having taken someone
begins with a little blob of some- It’s an exquisite moment in an citizen of the present; contempo- vocative, even startling, and more else’s identity, he loses his own. It’s
thing being heated in a teaspoon extraordinary film that uses the oc- rary cars fill the streets of Paris edifying than you might expect. remarkable that he’s so affecting—
over a candle. Is it heroin? No, it’s casion of Georg’s fraught journey and Marseilles. Yet his story throbs “Transit,” in French and German, the man is not a bubbly spirit—but
solder. The hero, Georg (Franz to depict his state of being, the with movie-mythic feelings of a doesn’t turn on facts, or period ac- Mr. Petzold’s film is full of sur-
Rogowski), a German refugee in anxious limbo in which he finds World War II past—the Paris mon- curacy. Mr. Petzold has already prises, including the identity of the
France, is trying to repair a loose himself trapped. The screenplay is tage in “Casablanca” comes to made two superb period films, seemingly omniscient narrator.
connection on a radio while a based on the 1944 Anna Seghers mind and heart—except that it’s an “Phoenix” and “Barbara.” His new Hans Fromm did the fine cinema-
young boy looks on, transfixed. novel of the same name, an exis- alternative past in which the Nazis one, which opens nationally this tography, and the Talking Heads
When the radio comes to life, it tential thriller set during World have been replaced by unnamed week, is closer to Camus, and the provide a coda that sounds oddly
plays a song that moves Georg War II. The novel’s unnamed narra- fascists enforcing a brutal rule, as timelessness of “The Stranger,” antic at first, then becomes, in the
deeply—his mother sang it to him tor is an anti-Nazi German who, fascists have done throughout his- than to some ripped-from-the- context, frightening, even crazed.
when he was a child. As Georg having escaped from a concentra- tory. (After assuming the identity headlines drama about Europe’s “We’re on a road to nowhere,” the
sings along, the boy’s mother, Me- tion camp, flees to Occupied France of a writer who has committed sui- refugee problem—although echoes lyrics go. It’s the perfect refugee
lissa (Maryam Zaree), comes home in the hope of escaping yet again cide, Georg falls in love with Marie, of the current situation come un- anthem.
Marys Seacole
New York we should be interested in new to me, tells the improb- tionalized, magically realistic senile old woman, in what Lincoln Center Theater, Claire
IT SHOULDN’T BE all that seeing so central a part of able yet true story of a play, Mary (played by Quincy appears to be a modern-day Tow Theater, 150 W. 65th St.
surprising, demographics be- our lives played out onstage. saintly, no-nonsense 19th- Tyler Bernstine) becomes a American nursing home. ($30), 212-239-6200, ex-
ing what they are, that the The latest example of this century nurse who, born in symbol of the spirit of care- If all this sounds too ear- tended through April 7
subject of caregiving is be- heightened interest is Jamaica in 1805, made her giving who is reincarnated nest for words, fear not: Ms.
coming increasingly promi- “Marys Seacole,” in which circuitous way to what is time and again. The plural- Drury dramatizes the succes- Mr. Teachout, the Journal’s
nent in American theater. Jackie Sibblies Drury, an up- now Ukraine, where she ized title is indicative of her sive phases of Mary Sea- drama critic, is the author,
Since more and more of us and-coming but no longer worked with Florence Night- varied versions: We last see cole’s life with pith and most recently, of “Billy and
are either getting or giving young writer (she is 37) ingale in the Crimean War. In her tenderly looking after vigor, aided by the equally Me.” Write to him at
care, it stands to reason that whose work is nonetheless Ms. Drury’s extensively fic- Merry (Marceline Hugot), a resourceful staging of Lile- tteachout@wsj.com.
Adnan has spent nearly 20 years in prison for Hae Min’s murder subject of HBO films—hap- Begins Sunday, 9 p.m., HBO
A14 | Friday, March 8, 2019 THE WALL STREET JOURNAL.
SPORTS
PREMIER LEAGUE
million in him over the years, Arse- last weekend’s crucial game against tate Emery even more. Asked about
nal is grappling with a much more Tottenham. dropping him from the squad for a
perplexing question than whether “Sometimes he’s helping us, an- recent defeat at West Ham after a
or not Özil is supremely gifted. (For other moment not helping us, be- return from injury, Emery snapped
the record, he is.) The more press- cause of his injury or maybe the back, “The players who were here
ing question is whether the most match isn’t for him,” said Emery. are the players who deserved to be
talented player in their squad is “But he’s a good player.” in this match.”
even worth starting. Özil is better than good. No one Özil doesn’t do himself many fa-
The answer isn’t as clear-cut as in Premier League history racked vors by keeping so quiet. He was
it seems. Özil has become an endur- up 50 assists faster than he did. As unavailable for comment for this
ing enigma. At his best, there are of last October, he was one of only article. His main form of communi-
few passers like him. He is able to two players in a top European cation is a purposefully inoffensive
trace paths through defenses that league to have created at least social media presence.
will make you believe he sees the 1,000 scoring chances since Opta He has, however, diverted from Mesut Özil has started barely a third of Arsenal’s games in 2018-19.
universe’s hidden dimensions. His began tracking them in 2006. At a that twice in the past year: once to
touch is so deft that he can literally time when soccer is more athletic explain why he and another German Wenger, for instance, seemed to ex- ing room at halftime, Özil was so
spit out a piece of gum, juggle it than ever before, Özil built a career player of Turkish heritage, Ilkay ceed anyone else’s in the squad. He heated that he kicked a locker.
with his feet and knock it back into on mastering the most subtle tech- Gundogan, appeared in a photo op was one of the few players ever to Where that passion had been on the
his mouth. nical details of his craft. with Turkish president Recep give the Arsenal manager a Christ- field, no one could say.
But at his worst, Özil is practi- Except there is a fine line be- Tayyip Erdogan in London last mas gift, one of his jerseys from All of which could easily have led
cally invisible. He fades quietly into tween doing things subtly and do- spring; and again in the summer to Germany’s winning run at the 2014 Arsenal to see the 30-year-old both
the background, while the match ing nothing at all. Özil has only quit the German national team cit- World Cup. as a genius and a busted flush. In-
unfolds around him. three assists since August. His five ing “racism and disrespect” from Yet his attitude on the field stead, Arsenal extended his contract
Former Arsenal manager Arsène goals have come against mediocre the federation. Both incidents were didn’t seem to line up with his ap- until the summer of 2021. The plan,
Wenger tortured himself for five sides such as Newcastle, Bourne- reminders of how little is really parent commitment. Wenger re- ideally, is to figure out how best to
years wondering why Özil couldn’t mouth and Vorskla Poltava. The less known about him. membered a match at Manchester use him at some point before then.
take over games. He never came up tangible aspects—from his use of But even those who know Özil City when Özil did one of his disap- “The key is in his hands,” Emery
with an answer. These days, space to his passing rhythm—no don’t always understand him. His pearing acts for the opening 45 said. “We can see the best Mesut
Wenger’s successor Unai Emery longer seem critical. Özil has been desire to please and his respect for minutes. Tramping into the dress- with us.”
THE WALL STREET JOURNAL. Friday, March 8, 2019 | A15
OPINION
The Democratic Crackup BOOKSHELF | By James Kakalios
Americans
love a good
political
Instead, Mrs. Pelosi this
week accomplished the re-
markable feat of sidelining Mr.
dria Ocasio-Cortez’s threat last
week to put those Democrats
on a “list” for a primary chal-
longer matters; wants to abol-
ish Immigration and Customs
Enforcement; and believes
Going
brawl,
news
and
that’s terrible
for
S p e a k e r
Trump and owning most of
the unpleasant headlines her-
self. House Judiciary Chair-
man Jerry Nadler explained
lenge if they don’t get with her
program. And of course radi-
cal-left House members for
weeks have overshadowed the
markets are immoral. These
aren’t degrees of separation.
They’re completely separate
philosophies.
With the Flow
POTOMAC
Nancy Pelosi. that his sprawling Trump in- Pelosi agenda with their own That the party is going in
WATCH
Her Demo- vestigation was primarily de- proposals for a Green New opposite directions was beau-
Liquid Rules
By Kimberley
cratic Party signed to convince voters that Deal, Medicare for All, giant tifully illustrated this week by By Mark Miodownik
A. Strassel
has com- Democrats were “not just try- tax hikes and more. the heated public fight be- (Houghton Mifflin Harcourt, 232 pages, $26)
O
menced a full ing to steal the last—to re- It’s tempting to write these tween Wisconsin Democrats
throw-down—with itself. verse the results of the last moments off as growing pains who want the 2020 convention f the three phases of matter—gas, liquid and solid—
Few things have benefited election.” This required his or the type of backbencher in Milwaukee and Florida scientists pay the least amount of attention to liquids.
Democrats more in the past colleagues to deny furiously grandstanding that debilitated Democrats who want it in Mi- This is not because they are unimportant but because
few years than the Donald that the party has already de- John Boehner’s speakership. ami. The Wisconsin contingent they are the hardest to understand. Gases are in a state of
Trump show. The president cided on impeachment. But that ignores how huge and says the party needs to stop near constant motion, which enables one to determine their
likes to be the center of atten- fundamental the fissures are snubbing labor unions and the average properties, such as temperature or pressure. The
tion, and the media likes noth- becoming in the Democratic white working class Mr. Trump atoms in solids, such as silicon or diamond, are relatively
ing more than to oblige him. Pelosi and her chaotic Party. This isn’t a tea-party won over in the 2016 election. stationary, but their crystalline order dramatically simplifies
This dynamic helped make the moment, which was fueled by The Florida crowd says the the equations necessary to understand their properties.
2018 election a referendum on caucus manage to conservatives who felt their party needs to embrace more Liquids, however, are the worst of both worlds—they lack
the man himself rather than overshadow Trump—a Republican members weren’t passionately the multicultural, the order of crystals, while the methods that reveal the
his policies, and that made living up to principles that minority, progressive micro- properties of gases become hard to apply when the atoms
Mrs. Pelosi speaker of the dubious achievement. most in the party share. The cosms of coastal America. condense into a liquid.
House. Democratic Party is moving in What nobody is admitting is Regardless of how diffi-
Democrats envisioned the two different directions. that no Democratic politician cult they are to understand,
same dynamic helping them Then there was the crackup Ideologically, how do you has yet to articulate a strategy liquids play a central role in
win the White House in 2020. between House party elders mesh a party whose members for catering to both. Because it our lives. There are planets
Mrs. Pelosi has been to that who wanted Democrats to con- variously embrace and reject is impossible. that are solid rocks and
rodeo before, after the 2006 demn the anti-Semitism of capitalism? Hillary Clinton, in The reigning political wis- planets that are gas giants,
election, when she was first Rep. Ilhan Omar, and woke a remarkable moment last dom is that none of this will but the only one we know
elected speaker. She mobilized freshmen who wanted to turn year, said she believes her de- matter in the end. Democrats with life has three-quarters of
her committee chairmen to smears against Jews into a cision in 2016 to call herself a will brawl, but their anti- its surface covered with water.
launch focused investigations fuzzy discussion of hurt feel- “capitalist” hurt her in places Trump fervor will ultimately Which makes the dearth of
to keep the spotlight on ings. Members battled for like Iowa, where “41% of Dem- unite them around a standard- popular science books devoted
George W. Bush’s Iraq war, en- days, only for Mrs. Pelosi on ocrats are socialists or self-de- bearer. Then again, these are to this phase of matter
ergy policy, detainee treat- Thursday to roll over to the scribed socialists.” In other not usual political times. And unfortunate.
ment, etc. She corralled a di- progressive left’s demand that words, well over a third of it seems equally possible that Happily, this situation is
verse caucus to pass a modest any resolution condemn “hate” Iowa caucus-goers reject the the same anti-Trump con- remedied by Mark Miodownik’s
agenda, “Six in ’06,” that in general and not anti-Semi- economic and political basis tempt will push them to over- “Liquid Rules: The Delightful and
showed Democrats could get tism specifically. Even CNN de- upon which the Democratic reach in their investigations Dangerous Substances That Flow
things done but didn’t put scribed all this as “chaos.” Party was founded. and indulge in policy prescrip- Through Our Lives.” Mr. Miodownik, a profes-
them in the limelight, much These are not the only inci- The moderates who won tions that prove too extreme sor of materials and society at University College London,
less make them look crazy. dents. They follow a high-pro- Mrs. Pelosi the gavel ran on for a center-right country. wrote the 2014 best seller “Stuff Matters,” an engaging
This paved the way to the elec- file moment in which moder- deficit reduction, border secu- It’s too soon to know. For popular account of the science underlying the materials we
tion of Barack Obama in 2008, ate Democrats bucked their rity and market reforms. To- now, all we can do is sit back take for granted. In that book, each chapter began with the
and Democrats figured Mr. party to vote with Republicans day’s progressive movement and enjoy the Democratic same photo of the author having a cup of tea at a small
Trump would make a repeat on gun control, as well as furi- subscribes to “modern mone- show. table on his building’s roof, then examined one material
even easier. ous backlash to Rep. Alexan- tary theory,” in which debt no Write to kim@wsj.com. found in the photo, including steel, glass, paper and plastic.
In his second book, Mr. Miodownik turns his attention to
liquids, using the framing device of a trans-Atlantic flight.
The African Future of ‘America’s Church’ You may think that, aside from the drinks cart, there are
not too many types of liquids in the close confines of a jet
airplane, but Mr. Miodownik is able to keep this conceit up
HOUSES OF The United membership, United Method- teaching and allows liberal re- can be cajoled through pro- in the air as long as his flight.
WORSHIP M e t h o d i s t ism is the only growing main- gions and churches to leave gressive protest. He begins with the safety instructions delivered by the
By Mark Church voted line church—and the face of with their property if unwill- Others are more realistic. flight attendant, with Mr. Miodownik noting that no
Tooley last week to the church is changing ing to abide. But it isn’t that Adam Hamilton, pastor of the mention is made of the vast quantities of jet fuel nestled in
uphold its quickly. simple: The United Methodist denomination’s largest U.S. the fuselage and wings of the aircraft. This fuel turns out to
rule that The surge in African growth denomination owns its congre- church, says he might bail out. be kerosene, and Mr. Miodownik provides a fascinating
clergy remain celibate if single has flummoxed America’s lib- gations’ buildings. Parts of the He wrote in a March 1 blog history of the discovery and development of oils, first for
or monogamous if married. It eral Methodist elites. Ascen- new plan, including the exit post that “I’ve never seriously use in lamps and now for transportation. Here we
also reaffirmed its ban on dant for 100 years, they long provision, may have to be re- thought about leaving the encounter, not for the last time, polymers—long chain
same-sex marriage. United assumed their denomination fined next year at a conference UMC, until now.” He added, “It molecules composed of many (poly) repeating units (mers).
Methodism is nearly the only naturally would follow Episco- in Minneapolis. is hard for many of us to see The properties of polymers vary greatly, depending on
major historically liberal main- palians, Presbyterians, Luther- Some conservative Method- any future in a scenario in the chemical composition of their molecular units. A carbon
line Protestant denomination to ans, Congregationalists and ists had threatened schism if which [conservatives] control atom, for example, prefers to form four chemical bonds,
retain such stances on sex. others in liberalizing on sexu- the liberalizing plan passed. the church.” The pastor pre- and two of the ways it can do so are to bond with four
How did this happen? As ality. But every quadrennial Now left-leaning Methodists dicted protest, disobedience hydrogen atoms or four fluorine atoms. The first makes
America’s third-largest reli- conference since 1972 has af- are pondering their exit op- and departures. He plans to methane, and the second carbon tetrafluoride. These
gious denomination, United firmed sex as permissible only meet with “bishops and other appear chemically very similar at the level of individual
Methodism has 6.8 million between husband and wife. key leaders” at his church in molecules. Link these mers up, however, and the methane
members in the U.S.—but Liberals sometimes defy United Methodism Kansas City, Mo., after Easter
nearly six million more over- church law when making local to discuss the denomination’s
seas. Its foreign members par- personnel decisions. In 2016 stands alone among future. On a trans-Atlantic flight, a professor holds
ticipate fully in the church’s United Methodism’s U.S. mainline Protestants No one knows how many forth on the many liquids in the plane—from jet
governing convention. Forty- Western Jurisdiction elected Methodists would join a new
two percent of the 864 dele- a lesbian bishop married to a in defense of tradition. liberal denomination. Only fuel to the glues holding the aircraft together.
gates at the Feb. 23-26 general woman. The church’s top about 800 of the church’s more
conference in St. Louis came court ruled her election ille- than 30,000 U.S. congregations
from abroad. Africa, where gal but claimed to lack the tions, especially as the church have affiliated with the chain results in petroleum, and the carbon tetrafluoride
Methodism is strongly tradi- power to remove her. In re- is leaving them behind. Africa church’s unofficial LGBTQ cau- chain yields Teflon. Changing the molecular units at the
tional, was the most-repre- sponse to events like this, will gain about 20 delegates at cus. Self-identified “centrist” ends of the chain can produce polymers with one end that
sented foreign region. bishops called last month’s the next general conference clergy like Mr. Hamilton have is attracted to water and the rest of the chain attracted to
The U.S. church has lost special conference to adjudi- while the U.S. loses a similar avoided joining the caucus. oil—the basis of the liquid soap that Mr. Miodownik
more than four million mem- cate a final church settlement number. They instead push for gradual encounters in the airplane lavatory. Modifications along the
bers over 50 years, at a cur- on sexuality. More telling: Manila will change, knowing their congre- chain can cause interactions between neighboring units so
rent rate of nearly 100,000 an- Most U.S. bishops touted host the 2024 general confer- gations include diverse views. that, when subjected to an electric current, they line up
nually. Yet Methodism gains the “One Church Plan,” which ence, the first ever outside the A recent church poll found “the same way that fish align when they’re part of a shoal.”
more than 100,000 adherents a would have let local churches U.S. Four years later the 44% of U.S. laity identify as This quasi-ordering of certain long-chain molecules is the
year in Africa. The Democratic choose their own policies on church will meet in Harare, conservative. Twenty percent unique aspect of the liquid crystals that make up the screen
Republic of Congo alone has same-sex marriage. This pro- Zimbabwe—with African dele- say liberal, with most of the on which Mr. Miodownik watches an in-flight movie.
three million members. More posal resembled other liberal- gates in the driver’s seat. rest somewhere in between. A brief bout of turbulence reminds Mr. Miodownik that
Methodists are in church there izing denominations, which When the general conference Eighteenth-century British the plane he is riding in is held together not with rivets
on a typical Sunday than in have suffered schisms and ac- returns to the U.S. in 2032, Methodist founder John Wes- but with glues, which leads to a fascinating chapter on
the U.S. celerated membership losses Americans will be a decided ley boasted that the world was sticky liquids. “Glues start off as liquid,” he writes, “and
United Methodism’s in- after such moves. The Meth- minority in what was once his parish. Two centuries later, then, generally speaking, turn into a solid, creating a per-
creasingly global composition odist delegates defeated this called “America’s church.” his bombast is being fulfilled, manent bond.” Prehistoric cave paintings, Mr. Miodownik
underlines the collapse of measure 55% to 45%. Some unrealistic Methodist with unexpected consequences notes, illustrate that our ancestors were adept at materials
once-dominant mainline Prot- In its place, by a vote of liberals ignore these demo- for America and the world. processing, since “paints are essentially colored glues.” A
estantism in the U.S. In the 53% to 47%, U.S. conservatives graphic and political obstacles consideration of tree resins leads to discussions of veneers,
1960s 1 in 6 Americans be- joined international represen- and pledge to fight indefi- Mr. Tooley, a United Meth- rubber (which got its name, he writes, from the fact that
longed to a mainline church. tatives to pass the “Tradi- nitely. Many imagine that odist member, is president of “it was good for rubbing pencil marks off paper”), Post-it
Today it’s 1 in 20, and still tional Plan.” It enhances en- United Methodism is still a the Institute on Religion and Notes, cellophane tape and a plywood airplane, the World
falling. Thanks to its overseas forcement of current church mainline Protestant body that Democracy. War II Mosquito bomber. The chapter concludes with a
discussion of how the properties of cyanoacrylate glue
(commonly known as “super glue”) enable doctors to
The Unforced Error of Medicare for All quickly close a wound or incision without a single stitch.
The framing narrative of Mr. Miodownik’s plane journey
personalizes the story, but there were stretches where he
By Vin Gupta Meanwhile, there are imme- blindly; it is obvious that noth-Brown and Debbie Stabenow devotes too much space to it, particularly to personal
P
diate problems that need ad- ing will change in time for us.” would do. anecdotes that are only tangentially related. Rather than
rominent Democrats fall- dressing. A recent study from Which is why as 2020 ap- Fellow Democrats may ac- spend several pages on blind taste tests and his personal
ing over themselves to the Commonwealth Fund proaches, Democrats should cuse me of seeking compro- preferences for different wines, for example, he might have
support Medicare for All found that nearly 45% of work- avoid ideological peer pressure mise when they are craving explained in greater detail exactly why, despite their near-
are making a big mistake. For ing-age adults were underin- and embrace Sen. Sherrod revolution. I am a public health identical chemical composition, even a small dose of
a party seeking to rebrand it- sured or without coverage dur- Brown’s model of advocating physician and Air Force officer methanol is lethal while ethanol (the form of alcohol in
self—especially in places like ing at least part of 2018. what’s possible: strengthening and, like many of my col- beverages) is not.
my native Ohio, where health Department of Health and Hu- leagues, as welcoming to the This reservation aside, “Liquid Rules” is an entertaining
crises abound—this scenario is man Services estimates that idea of Medicare for All as the discussion of the various ways our lives are enriched by
a GOP dream. It’s easy to de- premiums for an entry-level Democrats would be most progressive politicians. fluids. From the physics of ballpoint pens to the origin of
mand universal health care, silver plan on Healthcare.gov wise to seek reform, Unlike them, however, it is left jet-aircraft contrails, the book rewards the reader with
but as efforts dating back to will average $495 a month for to us and our patients to con- fascinating facts and insights. Every day, millions of people
FDR have shown, legislative a 40-year-old. not revolution. tend with the consequences of travel on an airplane. Fortunately, Mark Miodownik was
victories are a slow burn. Back home in Toledo over inaction. Stop the empty rhet- recently one of them.
Megaphones on social media the holidays, I heard countless oric and pursue attainable
won’t change that. variations on these themes. One insurance exchanges through paths in the immediate inter- Mr. Kakalios is the Taylor Distinguished Professor in
Recent polling from the Kai- couple in their early 60s told cost-sharing federal subsidies est of our patients’ lives and Physics at the University of Minnesota and the author,
ser Family Foundation shows me both had to return to work and reinsurance programs for their pocketbooks. most recently, of “The Physics of Everyday Things.”
that although voters like the part-time as teachers to afford high-risk enrollees, pushing for
concept of Medicare for All, net better health insurance. A for- nationwide adoption of Medic- Dr. Gupta is an assistant
favorability falls by almost 50 mer nurse at a federally funded aid expansion (and resisting professor of global health at Coming in BOOKS this weekend
points when they are presented community health center had a GOP rollback efforts in states the Institute for Health Metrics Rome from Augustus to Constantine • Memoirs of loss
with hard truths such as the harsh assessment of Medicare like Ohio that have done so), and Evaluation. He served as a and hope in China • The power and the glory of Louis XIV
higher taxes, less provider for All: “The politicians that fa- and making people over 50 eli- health policy adviser to Rich- • On stage and on screen with Comden & Green • The
choice, and increased wait vor this policy know it won’t gible to buy in to Medicare, as ard Cordray, Ohio’s 2018 Dem- monumental life of Daniel Chester French • & much more
times that will inevitably result. work and yet still pursue it legislation sponsored by Sens. ocratic nominee for governor.
A16 | Friday, March 8, 2019 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Mario Draghi’s Last Try Oregon Will Learn Painful Housing Lessons
J
ust when Mario Draghi thinks he’s on the scorned the tax reform and deregulation that I hope the Journal doesn’t fall Road to Ruin” (Americas, June 11,
path to monetary normalization, the fail- lifted America’s growth. into the preposterous trap of “af- 2018) that I saved a paragraph:
fordable housing” (“Oregon, the “Rent control in Venezuela dates to
ures of European leaders drag him back Which brings us to Mr. Draghi’s TLTRO ex-
Rent Control State,” Review & Out- 1939, but was not enforced by Pérez
to center stage. The eurozone tension. The program, enter- look, March 4), acceding to the idea Jiménez. In August 1960 [Rómulo]
is flirting with recession, a Don’t blame the ing its third iteration, pro- that “brand new” housing, the most Betancourt revived it, passing a new
banking crisis always seems to
beckon in Italy, and with a few
ECB for the recession vides cheap funding to banks
with incentives to lend to
expensive consumer item in society, rent-control law and prohibitions on
should be affordable to low-income eviction. Since then, ‘not one apart-
notable exceptions elected menacing the eurozone. small businesses in particular. people. Half, if not 100%, of all ment building has been built,’ writes
leaders have ignored the Euro- At the peak, European banks housing is affordable depending on Vladimir Chelminski in his 2017
pean Central Bank president’s had gobbled up €740 billion how you spin it. (If it sold or rented book, “Venezuelan Society Check-
pleas for economic reform. So it’s Mario to the from two TLTRO rounds, and some €720 billion it’s affordable). The 1967 University mated.” The legendary slums that
rescue one more time. of that is still outstanding, due to be repaid of Michigan study “New Homes and climb Caracas’s hillsides are a testa-
On Thursday he tweaked the central bank’s starting in June 2020. Poor People” demonstrated when ment to this social stupidity. Oft-
1,000 new homes are built, 3,545 quoted Swedish economist Carl As-
“forward guidance” to push an interest-rate in- The problem is that those earlier TLTROs
moves take place in a chain of sar Lindbeck famously stated: “Next
crease into 2020 at the earliest, after previously risk amplifying rather than ameliorating Eu- moves. People move into the new to bombing, rent control seems in
suggesting one might come this year. He also rope’s reform failures. Italian banks were espe- 1,000 units at a rent of, say, $2,000 many cases to be the most efficient
unveiled more targeted long-term refinancing cially vulnerable to the looming end of TLTROs a month, vacating $1,500-a-month technique so far known for destroy-
operations—TLTROs—to provide cheap funding because they’d taken up an outsize chunk of the units which are then occupied by ing cities.”
to European banks until 2023. And lest there funding—some 33%, according to UBS. Italian people vacating $900-a-month As an apartment owner, I can
was any doubt, the ECB will roll over in full ma- institutions rely on that money to finance lend- dwellings, etc., until no vacant units state that I exercise a completely
turing bonds acquired under its €2.6 trillion ing, with TLTROs accounting for about 17% of were left behind in the chain. There organic system of rent control: I
quantitative-easing program. loans compared to the eurozone average of 7%. were an average of 3.5 moves for only charge what my tenants can
Mr. Draghi would have been hard-pressed to Naturally, this funding counted as “safe” under every new home. Of the 3,545 afford.
do nothing. ECB economists have cut their eco- various European regulatory measures. households that moved, 1,290 were N.J. SMEETS
categorized as low- and moderate- Westlake Village, Calif.
nomic growth forecast for 2019 to 1.1% from the With the first two TLTROs ending, fragile income at the time by the govern-
1.7% they had expected in December. Central bank Italian banks would have struggled to find other ment. The conclusion of the study I have mixed feelings about Ore-
staff now expect inflation of 1.2%, down from the funding sources. They still labor under substan- was that if poor people moved vol- gon’s new rent-control law. As a for-
1.6% they predicted three months ago and well tial bad debts, and the policies of the left-right untarily, they benefited from the mer Oregon landlord, I am relieved
short of the ECB’s near-2% mandate. insurgent coalition now in power in Rome are construction of 1,000 new homes to be out from under the state’s res-
Yet recent years also have demonstrated the driving up Italian borrowing costs. Mr. Draghi even though they didn’t occupy any idential landlord-tenant law, which
limits of Mr. Draghi’s extraordinary exertions. can’t admit Thursday’s action is designed partly of the new homes themselves. was tilted in favor of tenants to be-
Despite QE, a negative deposit rate, and multi- to forestall a new banking crisis in Italy, but FRED SCHNAUBELT gin with. As a retired legal counsel
ple subsidies for banks, the eurozone never that’s an obvious benefit. San Diego to Oregon landlords, I regret I will
managed to boom. Growth peaked at 2.4% in Mr. Draghi must be frustrated that he never Mr. Schnaubelt is a former San miss out on the bonanza in legal
Diego city councilman. fees that is certain to result from
2017, and unemployment rates as high as 15% weaned Europe off its overreliance on his mone-
tenant lawsuits under the new law.
(Spain) and 11% (Italy) linger. tary pyrotechnics, and he may have inadver- I was so taken with Mary Anasta- GREG BYRNE
Mr. Draghi understood the ECB’s limits and tently made parts of the eurozone economy more sia O’Grady’s “Venezuela’s Long Oracle, Ariz.
begged European leaders to reform labor laws vulnerable. As he heads to the end of his ECB
and business regulations under the political term in October, his last monetary try at least
cover of his monetary policy. Only France’s Em- puts the onus of recession on the politicians
manuel Macron has heeded the call, and now where it belongs. This won’t be enough to revive
his agenda is endangered by the popular back- Europe’s sagging fortunes—and, to Mr. Draghi’s
The History of the Jews in Poland Is Complex
lash to his green-tax overreach. Europeans credit, he never claimed otherwise. Regarding Elisabeth Zerofsky’s “Po- brighter, chapter on Polish-Jewish re-
land, Judaism and Historical Mem- lations, that dare not involve heavily
ory” (Houses of Worship, March 1): redacting older, much darker, ones.
Wisconsin’s School Monopolist That the past should not forever re-
main captive to the past doesn’t ex-
RICHARD D. WILKINS
Syracuse, N.Y.
W
cuse deep distortion of the historical
isconsin has been a pioneer in school program requires them to have a college degree. record. Ms. Zerofsky rightly notes Ms. Zerofsky’s assertion that Polish
choice. In Milwaukee about 28,000 This provides important flexibility, especially that those were German, not “Polish attitudes toward Jews during World
students, all from modest means, re- given that such schools may offer specialized death camps.” The Nazis also wreaked War II aren’t easily simplified is com-
ceive state vouchers that let them attend private curricula, such as theology classes. If parents terrible suffering on the Poles. pletely beside the point. The fact that
schools. So do 10,000 kids throughout the rest think the teaching lacks rigor, they can always Jews had been an integral, though thousands of Poles risked, and indeed,
of the state, as well as another 700 special-needs send their kids elsewhere. Under Mr. Evers’s never accepted, part of Poland for lost their lives attempting to protect
students. In a sign of the progressive political budget, however, every private school that takes nearly a millennium. Wartime Polish- Jews from their would-be German
times, Wisconsin’s new Governor wants to dis- vouchers would be required to hire only state-li- Jewish interaction was marked both murderers isn’t in dispute. Yad
mantle this success. censed teachers. by heroism and horror, predominantly Vashem has granted righteous gentile
the latter. The period is neatly brack- status to more Poles than to citizens
Tony Evers has spent his career as a public- Mr. Evers has argued that Wisconsin can’t af- eted by the 1941 Jedwabne and 1946 of any other nation. At the same time,
school administrator, and last week he unveiled ford to fund two parallel school systems, one Kielce massacres of Jews, perpetrated however, denying the anti-Semitism
his first state budget after defeating incumbent public and another private. But charter schools by their Polish neighbors. Though a that wasn’t only ubiquitous in prewar
Republican Scott Walker last year. The proposal are public, albeit free from union control. Vouch- reborn post-World War I Poland, un- Poland, but was government-driven,
caps voucher enrollment in 2020, entirely ers generally cost taxpayers less than they would der duress, had guaranteed minority is tantamount to denying the exis-
phases out the program for special-needs stu- spend otherwise. Wisconsin’s statewide voucher rights, those for Jews were steadily tence of slavery in the antebellum
dents and blocks the creation of new indepen- is $8,400 for a high-school student and $7,754 eroded during the interwar period by American South. Jews were expelled
dent charter schools. Teachers unions have for kindergarten through eighth grade. The aver- harsh legislation and pervasive soci- from Polish medical schools, excluded
hailed this as “a good first step.” age per-pupil funding in public schools, includ- etal discrimination. Virulent anti- from Polish professional guilds and
Not for poor kids trying to get a better educa- ing state and local money, is $10,555. Semitism remained endemic in post- even made to sit separately in univer-
World War II Poland, culminating in sity lecture halls.
tion. The Milwaukee program doesn’t have an A study last year from EdChoice examined 16
mass Jewish emigration. DAVID LEVINE
enrollment cap, so it’s limited only by the num- voucher programs, including in Wisconsin, and Though it’s time to write a new, Teaneck, N.J.
ber of open seats in participating private concluded: “No fiscal analysis of any voucher
schools. To qualify, a family with married par- programs in the United States that accounts for
ents and two kids must have an adjusted gross
income below $80,800. Statewide, that cutoff is
both costs and savings—including this one—has
found that students exercising choice through
California’s Water Woes Are Self-Inflicted
$62,220. The statewide vouchers currently have voucher programs results in a net negative fiscal Regarding your editorial “Califor- and Atmospheric Administration pre-
enrollment caps, but they’re scheduled to disap- impact on taxpayers.” nia’s Weather Cycles” (March 4): Cali- diction was that California would
pear in 2026. Republicans still have majorities in the Wis- fornia’s weather has been cyclical have a mild to moderate El Niño pat-
Mr. Evers’s budget is his first stab at shutting consin Legislature and they’ve declared Mr. since recorded history began. Every- tern. Interesting that a prediction for
all this down. Last year he said that he’d work Evers’s budget dead on arrival. “Republicans in one knows this. As California Con- mere months ahead would be so inac-
gressman Tom McClintock often said, curate, yet we are supposed to spend
to “phase out vouchers.” His budget also would the Legislature have spent years helping build
“Droughts are nature’s fault. Water trillions for the predictions five years,
prevent any new independent charter schools the voucher program,” Senate Majority Leader shortages are our fault.” 10 years and more into the future.
from being authorized through 2023, while pil- Scott Fitzgerald told the AP. “We will not sup- California had a water plan which The media stories about the predic-
ing on regulations. port a budget that includes this proposal.” included the development of about 21 tions which indicated that the mild
Teachers at private schools, for example, do Nearly 40,000 students—and growing—will million acre feet of water storage pattern wouldn’t be sufficient to end
not need a state license, although the voucher have to hope this resolve outlasts Mr. Evers. through the building of mostly Cen- the drought and the actual severe El
tral Valley reservoirs. The last major Niño California experienced were usu-
reservoir, New Melones, was com- ally prefaced with: “Due to the effects
House Democrats Say Shush pleted in 1979, with a capacity of
more than two million acre feet, when
of climate change.” I’m guessing that
if there had been zero precipitation
H
ouse Democrats are voting as early as the groups putting up such messages. our state’s population was around 23 or if we’d have had a 100-year flood
million. Now our population is about cycle, we’d hear the same.
Friday on H.R. 1, a campaign-finance The Institute for Free Speech offers an exam- 40 million and no new major reser- STEPHEN PEELER
reform bill that they allege is an at- ple of these ever-longer disclosures. Imagine, voir has been built in 40 years. Laguna Niguel, Calif.
tempt to rinse politics of “dark for instance, that an “environ- Without getting into the weeds
money.” But even their pals on H.R. 1 would chill the mental group sponsors a 30- about intelligent forest management, This editorial isn’t the first to
the left aren’t buying it. speech of groups second radio ad calling on it becomes obvious why there are wa- point out the cyclical nature of Cali-
One of the more searing in- President Trump to reduce air ter problems in California. When the fornia’s political class when it comes
dictments of the bill is a on the left and right. pollution.” Here’s how the re- Auburn Dam was proposed with three to water: “During the dry years, the
March 1 letter from the Ameri- quired disclaimer likely would million acre feet of storage, it got people forgot about the rich years,
can Civil Liberties Union, nor- unfold: blown up. Look at the fight to raise and when the wet years returned,
mally found these days supporting the left. In “Paid for by Americans for the Environment, the height (and capacity) of Shasta they lost all memory of the dry years.
Dam. The politics du jour hasn’t built It was always that way.” (John Stein-
a 13-page letter, the ACLU said that some of H.R. cleanenvironment.org. Not authorized by any
the water storage (and flood protec- beck, “East of Eden,” 1952.) Indeed,
1’s provisions “unconstitutionally impinge on candidate or candidate’s committee.” Then the tion) to keep up with our population Mr. Steinbeck, indeed.
the free speech rights of American citizens and head of the organization must say: “I am Jane growth. GAVIN ROBERTS
public interest organizations.” Such measures, Doe, the President of Americans for the Envi- LARRY WEITZMAN North Ogden, Utah
the group said, would silence “necessary voices ronment, and Americans for the Environment Placerville, Calif.
that would otherwise speak out about the pub- approves this message.”
lic issues of the day.” Indeed. And then the ad would have to list the first In October the National Oceanic Pepper ...
Provisions in the bill would require groups and last names of the group’s top two finan- And Salt
that, say, run ads to disclose the names of do- ciers, even if their donations weren’t given di-
nors above $10,000. That would force political rectly for the advertisement. The group would On Irresponsible Twitter Use THE WALL STREET JOURNAL
groups, the ACLU notes, “to make a choice: their need to list five donors if the ad appears on
Regarding Holman Jenkins’s “Crazy
speech or their donors. Whichever they choose, television.
Elon vs. the SEC, Round Two” (Busi-
the First Amendment loses.” The ACLU broadly supports regulating online ness World, March 2): An irresponsi-
The bill covers groups that run ads about, ads, but it notes that H.R. 1 is written to “regu- ble Twitter user whose mental state
say, climate change that refer to candidates but late online ads that appear outside of candi- is the most material factor of all for
don’t endorse them. What this means, the ACLU dates’ districts, to persons with no power to the share price of his company? Elon
says, is “advocacy groups speaking about the vote for or against the candidate.” The purpose, Musk for president! Someone post
issues that matter most to them, like abortion in other words, is to chill speech. this on their Twitter account. Please!
or gun rights, may see no alternative but to Congressional Democrats have been deter- ANDREW LARSON
steer far clear of the regulated zone to avoid mined for years to find means to silence their New Brighton, Minn.
penalties” or “mandatory disclosure of their political opponents on the right. But the ACLU
private associations.” is right that H.R. 1 would also smother the Letters intended for publication should
H.R. 1’s provisions on disclosure veer into the speech of groups such as Planned Parenthood be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
absurd. It sounds as if the model for the bill’s or other progressive causes. or emailed to wsj.ltrs@wsj.com. Please
authors was the horrifying list of side effects House Democrats will gloat to the press that include your city and state. All letters “Care to sign up for our customer
that now accompany pharmaceutical advertis- they’re merely champions of good government. are subject to editing, and unpublished rewards card that gives you
ing. The bill’s premise appears to be that voters Just don’t make the mistake of trying to buy letters can be neither acknowledged nor the illusion that you’re getting
returned.
are too stupid to sort out the motives behind time to disagree with them. some kind of deal?”
THE WALL STREET JOURNAL. Friday, March 8, 2019 | A17
OPINION
T
magic trick that will be revealed, in neering in favor of capital expendi-
he bull market started the end, to be ephemeral. tures, the mother’s milk of produc-
March 9, 2009, 10 years The good news for the contrarian tivity and wealth creation. Perhaps
ago Saturday. The S&P investor is that this level of skepti- the biggest potential policy hurdle
500 had dropped to a cism might mean that the bull mar- has been the uncertainty surround-
close of 676 in the midst ket will last longer than anyone ing trade. But here, too, it seems the
of the financial crisis, 2,072 points thinks possible. As legendary inves- worst has been avoided.
or 75% lower than its current 2,748 tor John Templeton said, “Bull mar- The Trump administration
level. Given that the Federal Reserve kets are born on pessimism, grow seemed willing to fight simultane-
has quintupled the size of its bal- on skepticism, mature on optimism, ous trade wars with every nation on
ance sheet in the intervening years, and die on euphoria.” Earth last summer. But it has since
and that the heavy regulatory hand Aside from a few brief flirtations negotiated deals with Mexico, Can-
of the Obama administration gave with cryptocurrencies and cannabis ada and South Korea. An agreement
way to a more salubrious attitude stocks, it would be very difficult to with China seems imminent, though
toward commerce under President describe today’s investing public as what it will contain is anyone’s
Trump, perhaps the duration and especially open to risk-taking. Re- guess. It seems clear that at the
the magnitude of the current bull markably, fund-flow data suggest very least, both sides want a deal
market shouldn’t surprise us. that individual investors have actu- that calms the fears of businessmen
What is surprising, for those of ally been net sellers of the market on both sides of the Pacific.
over the last decade. Since 2009, With the S&P 500 off to its best
GETTY IMAGES
the roughly $1 trillion in inflows to start since 1991, it is reasonable to
Euphoria kills economic domestic equity exchange-traded expect a pause in the upward trajec-
funds has been more than offset by tory of stocks. But with the market
expansions. The mood on the $1.3 trillion in outflows from trading at 16.5 times 2019 earnings
the street now is best higher-cost domestic equity mutual expectations and 10-year Treasury
funds. plies, “Well, she’s a guy, so . . .” In- been the Fed’s reassurances this notes yielding 2.6%, the actual risk-
described as skepticism. A few years ago we at Strategas vestors are expressing similar levels year that monetary policy won’t be reward profile of the market is fa-
started calling the current bull of skepticism today with regard to left on “autopilot” as the central vorable.
move the “Jake from State Farm” the current bull market and eco- bank exits quantitative easing and The biggest risk to the long-term
us who lived through the decades market. It was an oblique reference nomic expansion. Despite enormous excessively low interest rates. With health of the economy and the mar-
before the financial crisis, is how to an amusing commercial that de- evidence to the contrary, no one the real federal-funds rate at a mere ket today is the desire of policy
joyless the market’s current ascent picts a wife confronting a husband quite believes that it’s real or that it 0.5%, it is difficult to describe mon- makers from both parties to allocate
has been. Long gone are the march- who’s on the phone at 3 a.m. She can last. etary policy as especially tight. (Of capital. This process is always best
ing bands and giddiness that accom- thinks he’s talking to a paramour There is no shortage of things to the eight recessions since 1960, left to the collective wisdom of mar-
panied successive highs during the when in fact he’s speaking with worry about. But the biggest threats none has started with a real fed- kets. Mercifully, such excessive med-
dot-com era. Instead, what remains Jake, a State Farm insurance agent. to the American economy are start- funds rate of less than roughly 2%.) dling seems unlikely until at least
is a cynicism, likely the result of Even after she speaks with Jake, the ing to fade, little by little. The cur- Regulatory policy, especially to- 2020, or perhaps 2024.
two 50% declines in the broader suspicious wife can’t accept that rent policy mix appears broadly ward finance and energy, has eased
market from 2000-02 and 2008-09. he’s simply an insurance salesman supportive of further economic dramatically during the Trump ad- Mr. Trennert is chairman of
Institutional and individual inves- in khaki pants: “She sounds hid- prosperity and market gains. The ministration. The 2017 Tax Cuts and Strategas, an investment-strategy,
tors believe the bull market has eous!” To which her husband re- most important development has Jobs Act created real incentives for economic and policy research firm.
T
leading backers of school reform. Al- Walton grantees was somewhat less Does the education-reform sector gressive stances on hot-button issues
he K-12 education-reform most all major education-reform pronounced. Our sample of 194 or- lean so far left simply because every- like immigration, tax policy and gun
movement was once led pri- groups receive funding from one or ganizations receiving support from one in education is progressive? No. control. The education-reform sector
marily by conservatives and both foundations (as have we). We the Walton Foundation included An Education Week poll shows that risks appearing as one more progres-
libertarians with centrist Democrats then searched OpenSecrets.org for all Teach For America, KIPP, Education 41% of educators identify as Demo- sive lobby. This appearance under-
as junior partners. But over the past political campaign contributions Reform Now, 50CAN, the 74 Media, crats while 27% identify as Republi- mines its authority when it pushes
decade, education reform has taken a made by the staff of these groups to Chalkbeat, and the Education Trust. cans and 30% as independents. for crucial changes like school choice,
hard left turn. Republicans are now gauge their political leanings. In total, we found 3,887 political cam- transparency and experimental new
almost entirely invisible within the We tracked staff contributions to paign contributions from employees learning methods.
ranks of its activists. This progressive political campaigns in a sample of 73 of these organizations, of which A once-heterodox K-12 education, more than most
capture of education reform—like the education-reform organizations 3,377, or 87%, went to Democrats. policy issues, is shaped at the state
capture of much of the media and ac- funded by the Gates Foundation, in- The deep-blue hue of education movement is now and local level. Given that two-thirds
ademia—will undermine the quality cluding Achieve, Teach For America, reformers rivals that of famously monochromatically blue. or more of U.S. states are red or pur-
and effectiveness of the movement’s the New Schools Venture Fund, Alli- Democratic precincts like Hollywood ple—including such reform bellweth-
work. ance for Excellent Education, Jobs for and public-employee unions. The That’s bad for the cause. ers as Colorado, Louisiana, Indiana
We’ve seen this trend firsthand the Future, Turnaround for Children, Center for Responsive Politics re- and Tennessee—reformers hurt their
over two decades of work in educa- and Bellwether Education Partners. ports that 78% of campaign dollars cause when they fail to anticipate Re-
tion reform, so we decided to quan- In total, we found 2,625 political from the “TV, movies, and music in- The virtual nonrepresentation of publican concerns or speak credibly
tify it. In a new study, the first of its campaign contributions from the dustry” have gone to Democrats conservatives has made school re- to Republican audiences. And be-
kind, we examined the political pref- staff of Gates grantees. Of those con- since 2000. Even the National Edu- formers more open about their politi- cause of the left’s attachment to
erences of people working in educa- tributions, more than 99% supported cation Association, the nation’s larg- cal convictions, even on unrelated is- teachers unions and discomfort with
tion-reform groups. To identify these Democratic candidates or the Demo- est teacher union, gives a larger sues. Many school-reform groups, market-based education reform, a
groups we focused on those receiving cratic Party. Only eight (that’s eight, slice of its campaign money to Re- including KIPP, Teach for America Democrat-only strategy has difficulty
support from the Bill and Melinda not 8%) of the 2,625 campaign contri- publicans (7%) than do the employ- and Education Trust, have energeti- assembling a majority even in blue
states.
Political homogeneity helps ex-
plain many of the setbacks the re-
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
Robert Thomson
Chief Executive Officer, News Corp
Notable & Quotable: Warming form movement has suffered in re-
cent years, including the collapse of
From a June 29, 1989, Associated three feet, enough to cover the Mal- Common Core, the abandonment of
Matt Murray William Lewis
Editor in Chief Chief Executive Officer and Publisher
Press dispatch: dives and other flat island nations, new teacher evaluation methods, and
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT:
Brown told The Associated Press in a national stall in the expansion of
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; UNITED NATIONS (AP)—A senior an interview on Wednesday. charter schools. It is losing its ability
Jason Anders, Chief News Editor;
Mark Musgrave, Chief People Officer; U.N. environmental official says en- Coastal regions will be inundated; to forge new coalitions and find new
Edward Roussel, Chief Innovation Officer;
Thorold Barker, Europe; Elena Cherney, Coverage
Christina Van Tassell, Chief Financial Officer
tire nations could be wiped off the one-sixth of Bangladesh could be converts. Those who care about the
Planning; Andrew Dowell, Asia; Alex Martin, face of the Earth by rising sea levels flooded, displacing a fourth of its 90 effectiveness of K-12 education
OPERATING EXECUTIVES:
Writing; Michael W. Miller, Features & Weekend;
Shazna Nessa, Visuals; Rajiv Pant, Product &
Kenneth Breen, Commercial; if the global warming trend is not re- million people. A fifth of Egypt’s ara- should think about ways to inject
Jason P. Conti, General Counsel; versed by the year 2000. ble land in the Nile Delta would be some red—or at least purple—into a
Technology; Ann Podd, News Production; Matthew
Tracy Corrigan, Chief Strategy Officer;
Rose, Enterprise; Michael Siconolfi, Investigations; Coastal flooding and crop failures flooded, cutting off its food supply, movement that has become mono-
Frank Filippo, Print Products & Services;
Louise Story, Strategy;
Nikki Waller, Live Journalism; Stephen Wisnefski,
Kristin Heitmann, Chief Commercial Officer; would create an exodus of “eco-refu- according to a joint UNEP and U.S. chromatically blue.
Nancy McNeill, Corporate Sales; gees,” threatening political chaos, Environmental Protection Agency
Professional News; Carla Zanoni, Audience &
Thomas San Filippo, Customer Service;
Analytics
Josh Stinchcomb, Advertising Sales; said Noel Brown, director of the New study. . . . Mr. Greene is Distinguished Profes-
Gerard Baker, Editor at Large Suzi Watford, Chief Marketing Officer; York office of the U.N. Environment Shifting climate patterns would sor of Education Policy at the Univer-
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International Program, or UNEP. bring back 1930s Dust Bowl condi- sity of Arkansas. Mr. Hess is Director
Daniel Henninger, Deputy Editor, Editorial Page Barron’s Group: Almar Latour, Publisher
He said governments have a 10- tions to Canadian and U.S. wheat- of Education Policy Studies at the
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; year window of opportunity to solve lands, while the Soviet Union could American Enterprise Institute. Their
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head the greenhouse effect before it goes reap bumper crops if it adapts its ag- report examining the political prefer-
EDITORIAL AND CORPORATE HEADQUARTERS: beyond human control. riculture in time, according to a study ences of people working in education
1211 Avenue of the Americas, New York, N.Y., 10036 As the warming melts polar ice- by UNEP and the International Insti- reform organizations will be released
Telephone 1-800-DOWJONES
caps, ocean levels will rise by up to tute for Applied Systems Analysis. Monday in Education Next.
A18 | Friday, March 8, 2019 THE WALL STREET JOURNAL.
TECHNOLOGY: HUAWEI STEPS UP CAMPAIGN TO DEFEND GLOBAL BUSINESS B6
S&P 2748.93 g 0.81% S&P FIN g 1.06% S&P IT g 0.92% DJ TRANS g 0.96% WSJ $ IDX À 0.47% LIBOR 3M 2.601 NIKKEI (Midday) 21142.75 g 1.46% See more at WSJMarkets.com
A
Airbnb..........................B2
Aldi ................. B1,B2,B12
Han's Laser Technology
Industry Group ....... B10
Hildene Capital
Management.......B1,B2
Snap...........................B10
SoftBank Group..........B5
SoftBank Innovation
Disney Holders Support Pay Vote
Alight Solutions ......... B5
Fund .......................... B5 BY ERICH SCHWARTZEL this week, Disney said it was the Walt Disney Co. through porting stronger data protec-
Huawei Technologies..B6 SPDR S&P Oil & Gas removing $13.5 million from a this important time and be- tion—failed with 39% and 26%
Allscripts Healthcare
Solutions.................B10 J-K Exploration & Walt Disney Co. sharehold- windfall expected when Disney lieve the changes I, with the of the vote, respectively.
Production...............B11 ers narrowly approved a say- closes its $71.3 billion acquisi- board, have made are in the At the meeting, Mr. Iger
Alphabet..............A3,B10 JPMorgan ChaseB10,B11
SQN Investors .......... B12 on-pay referendum concerning tion of major assets of 21st best interest of the company,” also outlined the company’s
Amazon.com Kimmeridge Energy
Management...........B11 Stripe.........................B10 Chief Executive Robert Iger’s Century Fox. Mr. Iger said. ambitious expansion plans at
........... A3,B1,B2,B10,B12
Kroger.............B1,B2,B12 T compensation, one year after Even after those changes, Mr. Iger met with share- its theme parks, which have
American International
voting against his pay package shareholder advisory firms been its fastest-growing divi-
Group.........................B2 L Target.....................B1,B2
and prompting the company to recommended shareholders sion in recent years.
B Lidl.............................B12 Tencent Holdings...B1,B4 make changes to it in recent vote against the resolution, as Two “Star Wars”-themed
Bayer...........................B1 Livongo Health..........B10 Teva Pharmaceutical months. did California Public Employ-
Robert Iger’s pay lands—one at each U.S. park—
Industries..................B2
Berkshire Hathaway.B10 Lyft............................B10 At the company’s annual ees’ Retirement System, a package last fiscal will open about a month ear-
Thomson Reuters.....B10 meeting Thursday, the non- shareholder that has been out- lier than anticipated. Phase
BlackRock..................B10 M year increased 81%
Tradeweb Markets....B10 binding resolution on Mr. spoken on corporate-gover- one of the Disneyland location
C Midea Group ............. B10
Morgan Stanley.B10,B11
21st Century Fox........B2 Iger’s compensation passed nance matters. to $65.6 million. will open May 31, and the Walt
Chubb.....................B1,B2 with about 57% of shareholder Mr. Iger remains one of the Disney World location will fol-
Motif Investing.........B10 U
Citadel.........................B5 votes. Last year’s say-on-pay highest-paid executives in en- low on Aug. 29, Mr. Iger said.
MSCI..........................B10 Uber Technologies .... B10
Costco Wholesale.......B3 resolution was rejected, with tertainment. His compensation Both attractions are the
E N V 52% of votes opposed. package jumped 81% to $65.6 holders in St. Louis following largest expansions in each
News Corp...................B2 Vail Resorts ................ B2 Following that pushback, million in the year ended in a busy year. The Fox deal is in park’s history, and overwhelm-
Eli Lilly ........................B6
O Vanguard Group........B10 Disney has reduced Mr. Iger’s September, driven by $35.4 the “final stages” of closing, ing interest already has the
Endo International......B2
Village Vanguard ........ B5 pay package twice in the past million in stock grants, some said Mr. Iger, with final regu- company bracing for capacity
F Ocado Group........B2,B12 three months. In December, of which were tied to an ex- latory approval expected soon. crowds.
Volkswagen...............B12
Facebook...........A3,B1,B4 P the company raised the bench- tension of his employment Two shareholder resolu- 21st Century Fox and News
W marks required for him to re- contract through December tions—one encouraging more Corp, parent company of The
Fannie Mae ................. B5 PDC Energy...............B11
Freddie Mac ................ B5 Peugeot.....................B12 Walmart.................B1,B2 ceive a $100 million equity 2021. transparency on Disney’s lob- Wall Street Journal, share
Pinterest.....................A3 Walt Disney................B2 grant in 2021. Then, earlier “I am proud to be leading bying efforts and another sup- common ownership.
G-H
Purdue Pharma......B1,B2 Wellington Management
General Catalyst
R-S ...................................B10
Partners..................B10
Goldman Sachs Group Refinitiv .................... B10 Y
Fund
ALAN DAVIDSON/REX/SHUTTERSTOCK
A
Amador, Art..............B10
Groening, Matt...........B4
I
S
Sackler, Arthur ........... B2
Family
Austin, Rob.................B5 Iger, Robert.................B2 Sackler, Jonathan.......B2
Sackler, Kathe.............B2 Continued from the prior page
B J Sackler, Mortimer D.A. dent, which he said occurred
Baumann, Werner.......B1 Jean, Al.......................B4 .....................................B2 several years ago. The Stam-
Bickert, Monika..........A3 Jefferson, Brett..........B1 Sackler, Raymond.......B2
Brooks, James L.........B4
ford, Conn., hedge fund do-
K Sackler, Richard..........B2 nated at that time to an or-
C Schimel, Richard.........B5 Raymond Sackler, left, and Mortimer Sackler each served as co-chief executives of Purdue Pharma.
Kapadia, Wimal .......... B1 ganization fighting the opioid
Claure, Marcelo...........B5 Slott, Ed......................B5
Kowall, Jon-Michael crisis and since then has re-
Cohen, Michael...........A4
Crinieri, Michael ....... B10
..........................A2,B1,B6 T
Tavares, Carlos ......... B12
peatedly considered ending its Family Holdings
M relationship with the Sackler
D W Some members of the sprawling Sackler family control opioid maker Purdue
McMullen, Rodney......B1 family, he wrote.
Dollarhide, Jake..........B1
O
Wanzhou Meng...........B6 “Last year the weight on Pharma. The company doesn't identify which family members have ownership
Draghi, Mario............B12 Weahkee, Michael......A6 my conscience led me to ter- stakes in the firm, and not all family members have been involved in the
F Oelrich, Stefan............B6 Weber, Stanley...........A6
minate the relationship and company. Family members have a wide range of investments in hedge funds
Felder, Eric..................B5 P Y initiate the redemption proce-
G Perez, Nancy.............B12 Young, Jean.................B5 dure,” Mr. Jefferson wrote. and other businesses.
Goldman, Ken............B12 R Z Hildene joins a list of uni-
Griffin, Ken ................. B5 Rosenbluth, Todd......B10 Zuckerberg, Mark ....... B4 versities, museums and non- Raymond Sackler (died 2017) Mortimer Sackler (died 2010)
profits, including most re- Purdue co-CEO Purdue co-CEO
cently the New York Academy
Richard Sackler* Ilene Sackler Lefcourt*
Water several devices,” he said.
“They don’t always work.”
AIG and some other insur-
of Sciences and Columbia Uni-
versity, that are reviewing
their relationships with the
This branch of the family has
investments in Vail Resorts, Peak
Resorts and Silk Therapeutics.
Director of the Sackler Lefcourt
Center for Child Development
ity, Mr. Fermanian said. Among participants in Some members of the Sack- in Turks and Caicos and Change.Org.
In luxury homes, wet bars, USAA’s pilot project is Mark ler family who have been ac- Madeleine Sackler He was also invested in Shake Shack
water-filtration systems, hot- Fredriksen, who placed sen- tive in Purdue are now named Filmmaker through private-equity firm Alliance
and cold-water taps, extra sors near the water heater and as defendants in at least two Consumer Growth.
bathrooms and other features washing machine and under dozen opioid lawsuits. They Miles Sackler
typically create 40 points of kitchen and bathroom sinks, in have become more of a focus Samantha Sackler Hunt*
Clare Sackler
connection into the plumbing his Smithtown, N.Y., home. in the last several weeks after Married entrepreneur John Hunt,
system, said Stephen Poux, a So far, they have averted the unsealing of a lengthy Filmmaker
THIRD WIFE
Kroger’s Crunch
Kroger's move to keep prices
down has hit margins.
D.A. and Jonathan Sackler, all
members of Purdue’s control-
ling family and former board
2016, the Massachusetts attor-
ney general’s lawsuit says.
named Summer Road LLC for
a street near the Alta ski re-
at hedge fund Perry while in
college. David Sackler later
BUSINESS NEWS
Costco
Raises
Synthetic Clothes Shed Into Oceans
Apparel makers deal In Vogue
Minimum with potential danger
of microfibers released
Production of synthetic textiles has risen
amid growing demand from the clothing industry.
Hear from senior Wall Street Journal editors and inluential executive leaders as they
examine and address the challenges and successes that women in business face today.
© 2019 Dow Jones & Co., Inc. All rights reserved. 6DJ7090
B4 | Friday, March 8, 2019 * *** THE WALL STREET JOURNAL.
TECHNOLOGY WSJ.com/Tech
‘Simpsons’ Removes
Michael Jackson Show
BY JOE FLINT show, referred to Mr. Brooks
for comment. Twentieth Cen-
A classic episode of “The tury Fox parent 21st Century
Simpsons” featuring Michael Fox and Wall Street Journal
Jackson’s voice will be removed parent News Corp share com-
from circulation, the show’s mon ownership.
longtime executive producer, Mr. Jackson, who died in
James L. Brooks, said. 2009, steadfastly denied he had
“It feels clearly the only molested or harmed any chil-
choice to make,” Mr. Brooks dren. The Michael Jackson Es-
said of the 1991 episode in tate last month attempted to
which Mr. Jackson voiced the block HBO from airing the doc-
KATHERINE BINDLEY/THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL. Friday, March 8, 2019 | B5
PERSONAL FINANCE
Freddie-
Fannie
Retirees Pushed to Keep 401(k)s
More employers offer ity to withdraw any portion of Generational Shift balance at any time, up from
GET A CLEAR
trants to the space. ture, the letter said. It isn’t
Some firms, including Pa- stock-focused units, Aptigon known how many staffers are
cific Investment Management Capital, according to people affected by the change. Mr.
Co., or Pimco, have resisted familiar with the matter. Felder joined Citadel in April
the change, people familiar In addition, Eric Felder, 2017 as a senior managing di-
with the matter said.
Pimco has said the switch is
unnecessary and could in-
crease mortgage rates. “The
who ran the unit, is leaving
after less than two years at
the firm.
In a client letter sent
rector from Magnetar Capital.
Citadel is one of the world’s
largest hedge funds with more
than $29 billion in assets. The
PLAN FOR YOUR
mortgage market is one of the
most liquid, well-functioning
markets worldwide, so the
proposal [for a single security]
Thursday, Citadel said Mr.
Felder’s stock-focused portfo-
lio managers and teams with
firm has gained a reputation
for rapid change at its busi-
ness units and within its exec-
utive levels.
RETIREMENT.
is solving for a market prob- Before Mr. Felder took over
lem that, in our view, does not The unit’s Aptigon in early 2018, hedge-
exist,” the asset manager credit portfolio fund veteran Richard Schimel
wrote in a 2017 “viewpoint” managers and ran it for about two years be-
note titled “Higher Mortgage teams will fore he was let go.
Rates Are Likely With Pro- report to Ken For many in the industry,
posal of ‘Single Security.’ Griffin, Citadel’s joining a large firm like Cita-
A Pimco spokeswoman de- founder. del has benefits. Last month,
clined to comment on the vote one of the industry’s few fe-
on a single bond. male founders announced she
Craig Phillips, a counselor the strongest performance and would close shop to take on a
to Treasury Secretary Steven highest potential will transfer portfolio management position
Mnuchin, urged top industry to Citadel’s other stock units. in one of Citadel’s three re-
officials to get behind the Mr. Felder also ran Citadel’s maining stock-picking busi-
project in recent months, amid credit business. nesses.
vocal opposition from Pimco In the letter, Citadel said Citadel’s flagship multi-
and others that threatened to Mr. Felder’s credit portfolio strategy fund is up 4.55% after
derail the project, according to managers and teams will re- fees this year through Febru-
people familiar with the con- port to Ken Griffin on a tem- ary, following a 9.1% gain last
versations. A Treasury spokes- porary basis until the firm fills year, a person familiar with
man declined to comment. Mr. Felder’s role. Mr. Griffin is the numbers said.
Fidelity gives you clarity about where you stand
and can help answer retirement questions like:
SoftBank Turns to Latin America • How much might I need to cover essential
and discretionary expenses?
BY MAYUMI NEGISHI source, making it stand out in a ing its organization to better • Am I on the right track to meet my goals?
market that has grown to dou- manage an increasingly dispa-
TOKYO—SoftBank Group ble what it was five years ago rate portfolio. The operator of • What can I do to strengthen my plan?
Corp. is launching a $5 billion but remains tiny in global the world’s largest pool of tech-
fund to invest in tech startups terms. focused capital oversees an in-
in Latin America, dwarfing Latin America offers fewer vestment empire encompassing
rivals in a region experiencing a competitors and lower valua- well over a thousand compa-
surge in venture-capital inflows. tions, SoftBank officials said. nies, from established market
The Tokyo-based conglomer- “It’s a blue ocean,” Marcelo leaders to early-stage startups.
ate said Thursday it has com- Claure, the conglomerate’s chief Over the years, the disparate
mitted $2 billion to the new operating officer, said in an in- investment approaches have
SoftBank Innovation Fund to terview. caused tensions, partly from a
800.FIDELITY
focus on mid-to-late-stage ven- SoftBank has already in- lack of clarity about who re- Fidelity.com
tures in the region. The com- vested hundreds of millions of ports to whom and which unit
pany didn’t name other inves- dollars in Latin America, in- should invest where, according
tors in the fund, but said it cluding $100 million in each of to people familiar with Soft- IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regarding
would work with the Saudi- two Brazilian companies: deliv- Bank’s operations. the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not
backed $99 billion SoftBank Vi- ery startup Loggi and ride-shar- Mr. Claure was tasked with guarantees of future results. Your results may vary with each use and over time.
sion Fund to make bigger in- ing company 99. It later sold its creating a team to find ways Investing involves risk, including risk of loss.
vestments. 99 stake to China’s Didi Chux- the myriad portfolio companies The trademarks and/or service marks appearing above are the property of FMR LLC and may be registered.
The fund’s size is equivalent ing Technology Co. can collaborate. That group, Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2019 FMR LLC. All rights reserved. 874551.1.0
to venture investment in Latin The launch of the new fund, consisting of executives with
America in 2017 and 2018 com- which Mr. Claure will lead, entrepreneurial experience, will
bined, according to Venture- comes as SoftBank is revamp- now be split in two.
B6 | Friday, March 8, 2019 * *** THE WALL STREET JOURNAL.
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B10 | Friday, March 8, 2019 * * THE WALL STREET JOURNAL.
BRENDAN MCDERMID/REUTERS
Great Depression was on the –5 2-2
way.
–58 27-9
It was, of course, a great
time to buy. Including divi- –7 21
dends, investors who bought –22 211
the S&P have made an annu- –5 21-216
alized return of almost 18%
–2 Feb. 218
since then. Those who *Drops are from intraday peak to trough.
bought Citi made 21% a year. Source: Refinitiv –2 Oct.-Dec. 218 Investors who sold before the slumps in February or October timed one of history’s best market runs.
Score 10 out of 10 for the
contrarian. joint action to save the the dollar slumped. When be on the brink of breakup. likely be “Sell!” than 20% to December’s in-
It is easy to vow that next world economy. Contrarians the S&P was down 17%, U.S. stocks didn’t react so If you were still holding traday low? If you did, con-
time—and there will be a who thought they timed it would you be calm, or selling badly, but the news was un- on to your stocks in 2015, it gratulations! You timed one
next time—you’ll be a buyer, perfectly and bought at the to lock in what was left of relentingly bad. It was was probably because you of history’s best-ever market
not a seller. You will recog- Oct. 27 low in 2008 went on your profit? tempting to get out. had lost your trading ac- runs, almost as good as the
nize the capitulation by in- to lose 20% by the time the In 2011, the U.S. came In 2013 came the Taper count password. A Chinese 10-year stretch from the
vestors, understand that S&P hit 666. close to defaulting on Trea- Tantrum, as markets worried stock bubble inflated and 1990 recession to the dot-
governments won’t allow the Even if you successfully surys and lost its triple-A that the Fed might be about then burst, Beijing devalued com bubble.
financial system to collapse picked the bottom, would credit rating. The eurozone to kill the recovery by rais- its currency and an oil-price Those who sold at last Oc-
and go all-in. you have held for 10 years? crisis turned critical, and in- ing rates, pushing emerging collapse brought fear of a tober’s all-time high for U.S.
Except, how would you It’s easy to say that of vestors realized that China’s markets into a panic. Still, if new U.S. recession. From the stocks might be proved right
know? The market had been course you would be a buy- stimulus would have painful you focused only on the U.S. optimism of the summer of if the market rebound ends
diving for months, and con- and-hold investor. But even aftereffects. The bull market you found it easier to hold 2015 the S&P had lost 15% by up being temporary and a
trarians who bought in lost with perfect hindsight there came to an end, at least on on, with the S&P falling less February 2016, as oil com- recession drags down earn-
money too. The stock col- were plenty of great reasons an intraday basis, as the S&P than 10% at its worst point. pany failures threatened a ings and valuations. Or in-
lapse in October 2008 after to sell along the way. sank 22% between May and In 2014, there was an Eb- wave of bond defaults. vestors might once more
Lehman Brothers was scary In 2010, the Greek crisis October and emerging stocks ola epidemic, U.S. bombing If you somehow made it shrug off fears, the economy
enough to bring up break- came and with it the realiza- fell almost a third. It looked of Syria and more Fed con- through, you were fine until lumbers on and stocks
fast, but far from the end. tion that the financial crisis like a global recession might cerns, and the VIX index of last year’s ructions. Did you mount yet another surpris-
After Congress rejected would have long-lasting ef- be on the way. Again, would implied volatility jumped sell in February, before the ing gain. But it’s worth keep-
the TARP bailout the fall was fects. In the U.S. fear of re- you be able to ignore the above 30 as stocks fell just volatility shock knocked 12% ing that brokerage-account
even bigger, and govern- cession grew, the Federal Re- temptation to lock in profit? under 10% in 18 trading off stocks? Or in October, be- password handy, because the
ments and central banks serve reintroduced It was even worse in 2012 days. If you phoned a friend fore the bear market end of this cycle might not
agreed to unprecedented emergency bond-buying and as the eurozone appeared to for advice, it would most knocked stocks down more be too far off.
matter. Livongo has raised become indispensable for em- Goldman’s foray into com- The goal was to define
roughly $240 million privately, ployers and insurance plans puter-driven ETFs is the latest themes that have mass appeal
most recently at an $800 mil- seeking to help patients man- sign of Wall Street’s increased and staying power and avoid
lion valuation. age their health. reliance on sophisticated auto- the downfall of being so nar-
While Livongo’s IPO will be Livongo offers cloud-based glucose-monitoring to diabetes patients, “What they most want is a mation. Computers can read far rowly defined that investors
smaller than those of high- single solution for an array of faster than a legion of analysts, lose interest, said Michael
profile tech companies like money as it pushes to grow its their more than one million conditions their employees sifting company reports, news Crinieri, global head of ETF
Uber Technologies Inc. and user base. collective employees. face,” he said. stories and regulatory filings for strategy at Goldman.
Lyft Inc., Silicon Valley ven- Unlike, for example, the taxi Livongo offers cloud-based Livongo’s underwriters are clues to a company’s future. Data mining and language
ture-capital firms, bankers and or hotel industry, which have glucose-monitoring to patients expected to tout the size of Two years ago, BlackRock Inc., processing help companies like
public investors will be watch- experienced major overhauls with diabetes, selling its ser- the diabetes market—with the world’s largest money man- index provider MSCI Inc. quan-
ing closely. Livongo is set to as a result of technology dis- vices directly to more than more than 32 million Ameri- ager by assets, announced that tify how companies perform on
be one of the first Silicon Val- ruption, health care so far has 600 employer-sponsored cans already diagnosed with it would overhaul its actively environmental, social and gov-
ley companies to debut that proved more resistant to health plans and insurers at the disease—and the com- managed equities business to ernance criteria. Motif uses
deploys technology in an ef- change. between $60 and $70 a month pany’s similarities with fast- rely more on robots than hu- web crawlers to scan patent
fort to change how patients The highly regulated indus- per employee. The company growing software providers mans. databases and academic jour-
receive care and to lower try’s complex web of con- has also moved into treatment with predictable revenue and “With machine learning, you nals as well as company finan-
health-care costs. tracts, data systems, drug-ben- of cardiovascular diseases, little customer turnover. can get the benefits of hun- cial filings.
Dozens of smaller private, efit managers and others make weight loss and mental-health Livongo was founded when dreds of stock pickers in a low- “What AI allows you to do is
venture-backed companies are it hard for new entrants to issues. General Catalyst’s Hemant cost quantitative way,” said to be more dynamic and data
jockeying to provide similar make inroads. Alphabet Inc.’s Dr. Robert Wachter, a pro- Taneja, who was one of the Todd Rosenbluth, senior direc- driven, and remove the human
services, but none has Google ended its attempt to fessor and chairman of the De- earliest investors in financial- tor of ETF and mutual fund re- bias,” said Art Amador, chief
achieved the revenue or user create an electronic health-re- partment of Medicine at the technology firm Stripe Inc. search at CFRA. “You can cre- operations officer and co-
base of Livongo, which is on cords database in 2011, just University of California, San and social-media company ate indexes that evolve based founder of EquBot Inc., in San
track to take in more than three years after it began. Francisco, said that while doc- Snap Inc., teamed up with ex- on shifts in data.” Francisco. “We think it will
$100 million this year from But venture-capital firms as tors are often wary of using Allscripts Healthcare Solu- Recent years have seen the help you perform more consis-
more than 120,000 patients. well as major companies, in- new technology, they have tions Inc. Chief Executive Glen proliferation of a new breed of tently through different mar-
Livongo expects to more than cluding Alphabet, continue to been looking for a long time Tullman. The two drew up the indexes that veer even further kets.”
double its revenue in 2020, try. For example, Amazon.com for a better way to keep tabs business plan for what would from plain-vanilla benchmarks. EquBot has two AI-driven
people familiar with its finan- Inc., Berkshire Hathaway Inc. on a patient’s health between be Livongo inside the venture- ETF issuers have designed stock ETFs with more than
cials said. Like most fast- and JPMorgan have struck a office visits. capital firm’s offices in 2013. funds that try to pick compa- $150 million in assets and runs
growing technology startups, partnership to look at how to “Even physicians who are Livongo began operating in nies that are less volatile, separately managed accounts
the company is still losing redesign health insurance for traditionalists think it would 2014. higher quality or more socially for investors.
FINANCE WATCH
REFINITIV the matter, though IPO pricing lect Stock Fund will be available home-appliance maker, as inter-
can change at the last minute. for investment by mid-2019, the national holdings of both got
Tradeweb to File Refinitiv will still own the firm said in a securities filing. close to breaching national for-
For Initial Offering majority of Tradeweb’s voting The fund will be managed by eign-ownership limits.
power. Refinitiv is the new name Wellington Management Co. The New York-based index
Refinitiv is taking trading- for Thomson Reuters Corp.’s fi- The fund will have expense company said it would oust
platform operator Tradeweb nancial and risk business. ratios between 0.45% and 0.55%, Han’s Laser Technology Indus-
Markets Inc. public. —Allison Prang which Vanguard said is lower try Group Co. from its China in-
Tradeweb said in its Securi- than the average ratio from sim- dexes after Friday’s close. On
ties and Exchange Commission VANGUARD ilar funds, citing Morningstar Tuesday, China barred foreigners
filing that it expects to raise data. from buying more shares in
$100 million in proceeds from Socially Responsible —Kimberly Chin Han’s Laser, as their holdings
the offering, but that figure is Fund to Be Launched neared its 30% ceiling.
often used as a placeholder to MSCI MSCI said it would also halve
calculate filing fees. Vanguard Group is launching the importance of Midea Group
XINHUA/ZUMA PRESS
It didn’t give a range for its its first actively managed envi- Ownership Limits Co. to its indexes, citing con-
initial public offering or say how ronmental, social and gover- Affect China Indexes cerns about “potential investabil-
many shares it expected to sell. nance-focused equity fund, as ity.” Midea makes refrigerators,
The company is expected to be the asset manager looks to Global index compiler MSCI air conditioners, rice cookers and
valued at more than $5.5 billion complement its ESG portfolio of Inc. removed a Shenzhen-listed other appliances. Foreign owner-
at the time of the offering, ac- low-cost, index-based offerings. company from its China indexes ship has neared 28%. MSCI cut appliance maker Midea Group’s weighting in its China
cording to people familiar with The Vanguard Global ESG Se- and cut the weighting of a large —Joanne Chiu indexes as foreign ownership neared 28%. Beijing’s limit is 30%.
THE WALL STREET JOURNAL. * * * * Friday, March 8, 2019 | B11
MARKETS
Bonds
Rise After
New Growth Worries Sink Stocks
BY AKANE OTANI The central bank said that it director and rates strategist at cents, or 1.1%, to $41.17, Gold- banks around the world have
AND DAVID HODARI
Reversal U.S. stocks slid after the Eu-
would leave interest rates un-
changed at least through the
end of the year, months longer
BMO Capital Markets. “If the
accommodation isn’t suffi-
cient, then we’re maybe seeing
man Sachs fell $1.97, or 1%, to
$192.77 and JPMorgan Chase
shed 75 cents, or 0.7%, to
flagged a weakening global
economy as reason to hold off
of normalizing monetary pol-
MARKETS
Tiny Stock Moves Fuel Momentum Jitters
BY AMRITH RAMKUMAR pact. The average gap from
Major indexes recovered from last year’s declines... Average of daily gap between
S&P 500 intraday high and the S&P 500’s intraday high to
Daily stock moves have S&P 500 daily performance low, monthly low fell to 19 points last
fallen sharply following last month, the lowest such spread
quarter’s volatility, stoking since September, when it was
5% 60 points
worries that the market is los- 16 points. The index swung at
ing momentum after a shift by Dec. 26: 4.96% least 30 points on average
the Federal Reserve fueled the Best day since from October through January,
recent rally. 4 March 2009 40 including a 64-point average
The S&P 500’s average daily spread in December.
move in February was 0.4%. Volatility has also been
That is after the benchmark 3 20 zapped from bond, currency
equity gauge logged average and commodities markets in
daily swings of 0.9% or more recent sessions. Market watch-
in the prior four months, ac- 0 ers warn that such close-knit
2 movements could lead to as-
cording to Dow Jones Market 2018 2019
Data. In December, at the sets falling together if volatil-
height of last quarter’s market ity spikes again.
turmoil, the index’s average 1 Number of times S&P 500 has Analysts cite a few develop-
move was 1.4%. moved at least 1%, monthly ments that could jolt markets
Comments from the Fed out of their lull.
this year that it is pausing in- 15 sessions Some say a more definitive
0
terest-rate increases for now trend of strong economic-data
and a fourth-quarter earnings points could force the Fed to
season that was better than 10
rethink its pause in interest
some investors feared have –1 rates, reigniting fears of
quieted trading and boosted Thursday tighter financial conditions.
stocks. The S&P 500 is up 9.7% –0.8% Investors will get the latest
so far this year. –2 5 look at U.S. growth in Friday’s
However, the index fell for jobs report.
the fourth consecutive session Investors are also grappling
Thursday and has moved at –3
with worries about slowing
0 00 0 0
least 0.6% in three of the first economic activity overseas.
five trading days in March. 2018 2019 The S&P 500’s 0.8% slide
The four-session losing streak Thursday—its largest one-day
is the longest for stocks since drop in a month—came after
Dec. 24, the day indexes hit ...still, the S&P 500 has recently struggled to sustain a rally above 2800. Proportion of investors the European Central Bank
their lowest point during the anticipating at least one eased policy in response to the
2800
fourth-quarter rout. rate increase in 2019 global slowdown.
Some investors wonder 50% Although the U.S. and China
whether the Fed’s dovish pivot 2700 have made progress on reach-
has already largely been 40 ing a trade agreement, some
priced into the market. The 2600
analysts fear that more signs
S&P 500 has battled to climb of global economic weakness
30
above the 2800 level, closing could send markets tumbling
at 2748.93 on Thursday, in an 2500 again.
example of the market strug- 20 The Citigroup Economic
gling to get traction around Surprise Index for developed
2400 10
widely watched technical and markets, a measure of whether
psychological levels. economic reports are meeting
The pattern of quiet trading 2300 0 projections, fell to its lowest
is also causing anxiety because November December January February March Jan. 2019 Feb. March level since 2012 earlier this
stock moves were also unusu- month. The gauge is firmly in
Note: March data as of Thursday
ally small before the market’s Sources: Dow Jones Market Data (S&P 500 daily performance, average gap, 1% moves); FactSet (S&P 500); CME Group (interest rates)
negative territory, indicating
swoons last year in February economic data are broadly
and December—rocky venting many assets from themselves out,” said Nancy progress going forward.” It has moved less than 1% starting to come in below ex-
stretches still fresh in the climbing back to last year’s Perez, senior portfolio man- The S&P 500 moved more for 13 consecutive sessions, pectations.
minds of many investors. peaks. ager at Boston Private Wealth. than 1% just twice last month the longest such streak since “We may be going through
Meanwhile, concerns about “The uncertainties that we “The question is where the after posting at least six such early October. these swings of relief and
global growth and the U.S.- were looking at in December— data comes in and will it point outsize moves in the four pre- Even movements during the angst through the year,” Ms.
China trade talks linger, pre- a lot of them have worked to more slowing or steady vious months. day have grown more com- Perez said.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
ECB’s New Stimulus Will Help Banks More Than Economy focusing on the right things.
The company is shifting its
efforts from a spotty local
After months of pretend- Money borrowed by banks ECB pumped about €3 tril- would be no more—and it the TLTROs,” ECB President sales model to one focused on
ing to ignore the subject, the under the European Central lion ($3.393 trillion) into amounted to just €234 bil- Mario Draghi said Thursday. larger national accounts. Yelp
European Central Bank has Bank's Targeted Longer-Term banks’ books, but lending lion. The TLTRO may end up also is solidifying partner-
finally confirmed another Refinancing Operations didn’t jump—nor did it in The program’s main bene- being yet another case of a ships with key industry lead-
bout of long-term lending. €200 billion other countries whose cen- fit is that it allows banks to central bank giving with one ers. The company said it has
This won’t revive the slow- tral banks did the same. circumvent banking regula- hand what it takes with the doubled the number of res-
ing eurozone economy, but it Banks’ lending decisions tions that authorities them- other: Officials also signaled taurants delivering on Yelp
100
will help cushion the blow are mostly made on the ba- selves impose. The loans are that interest rates will re- since its 2017 partnership
for banks. sis of how creditworthy their less long-term than they ap- main at record lows for lon- with online food-delivery gi-
On Thursday, the ECB an- 0 borrowers are, not the avail- pear, because banks are ger than previously thought, ant Grubhub. Earlier this
nounced a third round of its ’15 ’16 ’17 ability of funds. forced to repay them if their which is bad for lenders. Eu- week, Yelp announced it
Targeted Longer-Term Refi- €1 = $1.12 Banks have the ability to collateral turns bad, but they rozone bank stocks dropped would add a “verified li-
nancing Operations—or TL- Note: Excluding the take-up on June 2016 create deposits when they do count as long-term for about 4% Thursday. censes” feature whereby it
designed to roll over previous TLTRO
TRO—program, which will borrowing under more advantageous terms lend, and they can always the purposes of rules However, this could be an will charge service providers
offer cheap two-year loans Source: European Central Bank tap the interbank short-term that penalize short-term overreaction. Investors al- for vetted status, taking a
to eurozone banks, linked to funding market, which the borrowing. ready knew that rates page from Angie’s List.
lending to businesses and shouldn’t expect a fresh central bank is ultimately The round therefore wouldn’t go up this year be- Skepticism lingers, though,
households. This makes the wave of credit to help the backing with a range of amounts to a small but wel- cause the eurozone economy and Yelp doesn’t have a for-
Frankfurt-based central bank eurozone economy. other operations. come subsidy for European is slowing. Thursday’s an- mal settlement agreement
the first in the developed When it comes to liquid- This is why TLTRO opera- banks, which have had a nouncement is still good for with SQN, according to a
world to ease policy again, ity, central banks can bring tions were never in huge de- dreadful run on the stock banks: No matter what hap- source close to the matter. It
following clear signs of a the horse to water but can’t mand. The most successful market. pens, the ECB just threw remains to be seen just how
global economic slowdown. make it drink. After the round was the latest one— “If there were no subsi- them a bone. patient SQN is prepared to be.
However, investors 2008 financial crisis, the because banks thought there dies nobody would take up —Jon Sindreu —Laura Forman