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What’s Protests Keep Pressure on Beijing

News Hong Kong rallies
continue after
unpopular extradition
Business & Finance bill is suspended
he FAA is looking at BY NATASHA KHAN
T starting flight trials
possibly as early as this week HONG KONG—An attempt
for Boeing’s proposed 737 by Hong Kong’s leader to push
MAX safety enhancement. A1 a Beijing-backed extradition
bill galvanized unprecedented
Calpers and other pen-
resistance to tighter mainland
sion systems are rethink-
control, presenting Chinese
ing the tying of invest-
President Xi Jinping with the
ments to social activism. A1
most high-profile challenge
Goldman will merge four yet to his authority.
of its private-investing groups On Sunday, a huge crowd of
and is planning a fundrais- protesters flooded central
.
ing blitz, according to people Hong Kong, capping a week of
ly
familiar with the matter. B1 demonstrations and at times
violent confrontations be-
Markets are sending
tween protesters and police.
conflicting signals about on Organizers estimated the
how big a threat the global
crowd at nearly two million
trade rift presents. B1
people and said it was the big-
Genius says Google has gest rally Hong Kong has seen
been publishing lyrics on since China reclaimed sover-
us l,
its own platform, with eignty of the city from Britain

ANTHONY KWAN/GETTY IMAGES
some of them lifted directly in 1997, though police put the

al a
e
from the music site. B1 figures substantially lower.
The day before, Hong Kong
Puerto Rico’s financial
Chief Executive Carrie Lam
ci on
supervisors struck a deal

had indefinitely suspended the
with creditors that sets out
Please turn to page A10
a path for restructuring
some debt obligations. B2
Marchers demand Hong Kong
Two prominent figures Protesters filled the streets of Hong Kong on Sunday after a week of demonstrations against a proposed extradition bill. leader quit................................. A10
er rs
in the 1MDB scandal were

convicted of financial
Firms Struggle to Find U.S.-Made Goods

crimes and sentenced to
prison in Abu Dhabi. B7
m e
Target had an outage

that prevented shoppers
BY KATY STECH FEREK lion in Chinese imports. ers compete. But with public goods—such as consumer fire- 20 summit in Japan later this
m rp
from making purchases. B3

AND JOSH ZUMBRUN “It would be great if I could hearings on the new tariffs set works, fishing reels and elec- month. Mr. Ross, in an inter-
just say, ‘I’m going to get my to begin Monday, the Office of tric blankets—for which China view, said the most likely out-
Stephen Pelkey said he has [fireworks] containers from the U.S. Trade Representative accounts for more than 90% of come from such a meeting
World-Wide scoured the globe to find fire- U.S. companies,’ ” said Mr. has been flooded with letters imports. Last year, $66.3 bil- would be an agreement to re-
works that match the quality Pelkey, chief executive of Atlas from companies in some sec- lion worth of these items were sume negotiations, rather than
co Fo
of what he buys from China, PyroVision Entertainment in tors of the economy—like Atlas imported from China. a cessation of the next round
An attempt by Hong without success. Jaffrey, N.H. “They don’t ex- PyroVision—saying they have On Sunday, U.S. Commerce of tariffs.
Kong’s leader to push a Bei- So Mr. Pelkey has joined ist.” few options besides China. Secretary Wilbur Ross tem- Please turn to page A6
jing-backed extradition bill hundreds of other business President Trump has said a A Wall Street Journal anal- pered expectations of a last-
proved a disastrous miscal- owners and executives in beg- new round of tariffs are ysis of federal import data minute trade deal, despite a Gears in motion for possible
culation that galvanized ging officials in the Trump ad- needed to force a recalcitrant gives weight to the claims. likely meeting between Mr. new tariffs.................................. A6
unprecedented resistance ministration to drop plans to China to end unfair trade prac- Items to be hit by new tariffs Trump and President Xi Jin- Markets diverge in their
to tighter mainland rule. A1 slap 25% tariffs on $300 bil- tices and help U.S. manufactur- include 273 categories of ping of China at the Group of responses on trade................. B1
Business owners and
executives are imploring
Trump administration offi-
cials to drop plans to slap
25% tariffs on $300 billion
in Chinese imports. A1, A6
Pensions Reconsider Linking Gary Woodland Wins U.S. Open
n-
Support is growing
among Democrats to begin
an impeachment inquiry
Investing to Social Concerns
no
into Trump, a new Wall BY HEATHER GILLERS cause of the potential for lost fault is to not divest.”
Street Journal/NBC News revenue and skepticism about Calpers isn’t the only sys-
poll finds. A4 The California Public Em- whether divestment forces tem wrestling with these new
MICHAEL MADRID/REUTERS
The president’s 2020 re- ployees’ Retirement System social change. One of these doubts. Rising funding deficits
election bid starts officially was one of the first public-pen- directors is now urging the are prompting public officials
on Tuesday with a rally in sion systems to tie its invest- system, also known as Calp- and unions across the U.S. to
Orlando, Fla. A4 ments to social activism. Now ers, to end its ban on stocks reconsider the financial impli-
it is having second thoughts. tied to tobacco, a policy in cations of investment deci-
Argentine and Uruguayan In the last two years, its place since 2000. sions that reflect certain social
utilities said they had restored directors have opposed pro- “I do see a change,” said concerns. The total shortfall
service to most customers posals to sell stocks in private that director, California po- for public-pension funds across The American captured his first career golf major after holding off
after a regionwide electri- prisons, gun retailers and lice sergeant Jason Perez, in the U.S. is $4.2 trillion, accord- a charge by two-time defending champion Brooks Koepka. A14
cal failure on Sunday. A7 companies tied to Turkey be- an interview. “I think our de- Please turn to page A4
Iran’s top paramilitary
force is finding new funding
sources, defying U.S. efforts to
curb its activities abroad. A9
Tiny Flies Are Coming for Your IPO Appetite Flight Trials Are Near
Israel unveiled a new Blood—and Your Dignity Remains Strong
Jewish settlement in the
disputed Golan Heights
i i i Overall demand for new stock
offerings continues to climb
For Boeing’s MAX Fix
named Trump Heights af- Swarms of biting bugs drive the despite some stumbles. B1 PARIS—The Federal Aviation had no opinion. Of 774 people
ter the U.S. president. A9 Administration has signaled it polled between June 8 and
Midwest mad; ‘you look ridiculous’ $60 billion Other is preparing to start flight trials June 11, 37% said they would
Tech IPOs of Boeing Co.’s proposed 737 travel on the plane as readily as
JOURNAL BY KRIS MAHER gnats or buffalo gnats, are MAX safety enhancement as any other once regulators allow
REPORT swarming in record numbers 50 early as this week, according to the aircraft to return to service.
Wealth JORDAN, Minn.—Clouds of in Minnesota, part of the fall- “We’re going to bring a MAX
tiny flies—smaller than a out from this year’s Midwest By Andrew back up in the air that will be
Management: housefly but packing a vicious flooding. Tangel, Andy Pasztor one of the safest airplanes ever
The best financial bite—were attacking Mandy Many people consider the 40 and Alison Sider to fly,” Mr. Muilenburg said
advice R1-12 Harrison’s eyes and mouth as gnats to be more maddening Sunday on the eve of the Paris
she worked in her backyard re- than mosquitoes because their people familiar with the details, Air Show, the aerospace indus-
cently. bites can be more 30 while the plane maker’s chief try’s flagship gathering this
CONTENTS Opinion.............. A15-17 When the mother painful. Rather than executive vowed to restore pub- year. “But we also know it will
Business & Finance.... B2 Outlook....................... A2
Business News... B3,6,7 Sports....................... A14 of two couldn’t stand puncture the skin of lic confidence in the jet. take time rebuilding the confi-
Crossword.............. A14 Technology............... B4 it anymore, she tore victims, the fly slices Boeing CEO Dennis Muilen- dence of our customers and the
Heard on Street.......... B12 U.S. News......... A2-4,6 the mosquito net off open a wound with 20 burg said he was disappointed flying public, and this will be a
Life & Arts....... A11-13 Weather................... A14
Markets............. B11-12 World News.... A7,9,18
an empty stroller and its mouth and laps up in the company’s communica- long-term effort.”
draped it over her the blood. An itchy tion lapses surrounding the Boeing’s effort to repair its
head and shoulders. Hello, St. Paul! welt can last for days. 10 MAX and promised greater reputational damage is taking
> “My husband was “They’re a much transparency to rebuild public on a greater sense of urgency
like, ‘You look ridiculous,’ ” nastier biter than mosqui- trust in the plane and company. with the FAA preparing to take
Ms. Harrison, 35 years old, re- toes,” said John Walz, black A Wall Street Journal/NBC an important step to return the
0
called. “I said, ‘I don’t care.’ fly control coordinator with News poll shows that 25% of MAX to service by late summer.
s 2019 Dow Jones & Company, Inc.
They were getting in your eye- the Metropolitan Mosquito 2000 ’05 ’10 ’15 ’19 U.S. fliers said they would try Barring last-minute snags, the
All Rights Reserved balls.” Control District in St. Paul. Note: All data are as of June 14 of each year. to avoid flying on a MAX, while agency may start flight testing
Black flies, known locally as Please turn to page A9 Source: Dealogic 38% said they weren’t sure or Please turn to page A2
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Monday, June 17, 2019 * * THE WALL STREET JOURNAL.
U.S. NEWS
THE OUTLOOK | By Nick Timiraos
ECONOMIC
Some Cite 1990s in Case for Rate Cut CALENDAR

Tuesday: The U.S. Commerce
Department releases housing-
The Federal Then and Now sures. But the tepid May gains starts data for May. The gauge
Reserve usu- raise the question of whether of home building across the U.S.
ally cuts inter- In 1995, the Fed cut rates and avoided a recession. In 2001 and 2007, rate cuts preceded a the pace will weaken further. increased in April, driven by an
est rates be- recession by a few months. Most economists surveyed by The Wall Street Journal The Fed’s challenge is com- uptick in single-family construc-
cause bad expect the Fed to cut rates by September. plicated today because offi- tion. Permits for single-family
things are Periods leading up to first rate cut cials face two very different homes declined, though, sug-
happening. Sometimes, scenarios. In the first, trade gesting that the gain in starts
though, it cuts rates because July 1995 rate cut January 2001 September 2007 Scenario with September 2019 rate cut tensions with China and other might have been temporary.
the risk of bad things has countries ease, leaving less Economists surveyed by The
Monthly job growth Change in S&P 500 index Inflation
gone up—like taking out an urgency to reduce rates. In Wall Street Journal expect hous-
insurance policy. thousand First rate cut % 3% the other, these frictions ing starts increased by 0.4% in
That’s how some analysts worsen and the economic out- May to a seasonally adjusted
characterize the current case 4 4 look deteriorates, calling for annual rate of 1.24 million.
for cutting rates, and they cite lower rates. Wednesday: Fed officials sig-

1995 as the parallel. Back While the Fed can try to naled earlier this month that
then, the Fed lowered rates in cushion a modest weakening they were ready to discuss rate
time to prevent an economic in demand, it isn’t all-power- cuts but were unlikely to pull
slowdown from turning into a ful. It can’t undo “the real the trigger at their June 18-19
recession. – – economic harm caused by meeting. Chairman Jerome Pow-
Fed officials are set to con- trade protection and extreme ell has said that the Fed will
sider at their meeting Tues- –4 –4 uncertainty that is shaking “act as appropriate” to extend
day and Wednesday whether globally integrated production the expansion amid greater un-
-18 -12 -6 0 6 12 -18 -12 -6 0 6 12 -18 -12 -6 0 6 12
a worsening of trade tensions months months months chains,” said Krishna Guha, certainty from unsettled trade
since their April 30-May 1 vice chairman of Evercore ISI. negotiations.
Note: Job growth is seasonally adjusted and a three-month moving average; inflation is annual change in the core personal consumption expenditures
meeting and the recent slow- price index excluding food and energy. If it looks like the worri- Thursday: Faced with contin-
down in hiring and industrial Source: Labor Department (jobs), S&P Global (stocks), Commerce Department (inflation) some scenario is unfolding, ued uncertainty about when and
activity might warrant similar the Fed will have greater in- in what way the U.K. will leave
insurance, if not this week, 1995 and January 1996. pressures meant their bench- a reason for it, and most of centives to cut rates sooner the European Union, the Bank of
then later this summer. The July 1995 example mark federal-funds rate—then the time there is something rather than later because they England is expected to leave its
stands out because the Fed at 6%— was high enough to really nasty happening.” are already very low, leaving key interest rate unchanged at
O
ver the 12 months that lowered rates even though deliberately slow growth. To- less room to cut them to stim- 0.75%. However, policy makers
T
ended in February 1995, stock markets were rallying. day, with the rate in a range o justify a rate cut in ulate growth in a downturn. are expected to remind skeptical
the Fed doubled its pol- Stocks have climbed in recent between 2.25% and 2.5%, the current environ- The Fed took out insurance investors that they intend to
icy rate in hopes of achieving weeks on the hopes of easier most officials don’t share that ment, Mr. Blinder said again in 1998 to prevent a po- raise the rate over the coming
a so-called soft landing, when Fed policy. view. in a recent interview, officials tential market meltdown years. Later in the day, Mark
growth ebbs just enough to While concerns around a Rate cuts in 1995 “started should need to see either stemming from the Russian Carney, the governor of the BOE,
contain price pressures while sharper-than-anticipated from a level in which the more evidence of a substantial debt default. They reversed will have an opportunity to rein-
.
allowing the economy to keep slowdown were broadly funds rate was clearly restric- growth slowdown or conclude the cuts in 1999 after averting force the central bank’s message
ly
expanding. The Fed lifted shared at that 1995 meeting, tive,” said Donald Kohn, a se- that the so-called neutral in- catastrophe. in his annual Mansion House
rates four times last year with “no one thought the probabil- nior Fed economist in 1995, in terest rate—the level that nei- The examples from the speech.
the same aim. ity of a recession was better a recent interview. “That’s an ther spurs nor slows growth— 1990s are both reassuring and Friday: The National Associa-
By the summer of 1995, than 50/50,” said then-Fed on important difference between is lower than they thought. distressing. They show the tion of Realtors releases May
Fed officials worried the Chairman Alan Greenspan, ac- now and where we were in That would imply rates could Fed can make a pre-emptive existing-home sales data for the
economy might be slowing cording to the transcript. He 1995.” be curbing growth more than strike to sustain an economic U.S. Sales of previously owned
too much. “We ought to be justified the rate cut in part Economic weakness also they anticipated. expansion, but it hasn’t since U.S. homes declined for the sec-
taking out some insurance by pointing to inflation that was more evident in the data Some observers think repeated the trick. ond month in a row in April,
us l,
against recession,” said then- “is being held down by events then than it is today, when the recent hiring slow- Fed officials this week will suggesting continued weakness
Fed Vice Chairman Alan in the rest of the the picture is more mixed. down might offer such evi- have to balance the appeal of in the housing market. Econo-
al a
e
Blinder at the central bank’s world,” something that could The mid-1990s episode is dence. The Fed’s rate in- such insurance with the risk it mists surveyed by the Journal
July 1995 policy meeting, ac- also be happening now. proof that “the Fed never cuts creases last year were aimed scares investors into thinking forecast that existing-home
cording to the transcript. The The analogy isn’t perfect. for free,” said Roberto Perli, at slowing job growth to a the central bank sees some- sales rose 0.6% in May to a sea-
ci on
Fed cut rates at that meet- Most Fed officials back then an analyst at research firm more sustainable rate that thing more ominous in the sonally adjusted annual rate of
ing, and again in December had concluded softer inflation Cornerstone Macro. “You need would avoid hotter price pres- economy. 5.22 million.
U.S. WATCH
Trials Near
er rs
LOS ANGELES
Officer Shooting For Boeing

m e
Prompts Investigation
737 MAX
m rp
The Los Angeles Police De-

partment is gathering evidence
in an administrative investigation Continued from page A1
into an off-duty officer who shot the MAX as early as this week
and killed a man inside a Costco to assess whether an upgrade
co Fo
Wholesale warehouse store. Two developed by the U.S. plane

others were critically injured in maker fixes a flight-control sys-
the shooting in Corona, about 40 tem implicated in two fatal
miles east of Los Angeles. crashes, according to people fa-
Authorities didn’t respond to miliar with the planning. An-
requests for comment about other person briefed on the
what provoked the Friday night matter said that timeline could
confrontation and whether any- slip.
one but the officer was armed. Flight trials are a crucial step
The officer’s identity hasn’t toward returning the MAX to
been released. Corona police said the sky after it was idled world-
TED S. WARREN/ASSOCIATED PRESS
Saturday that the officer opened wide more than three months
fire after Kenneth French, 32, of ago over safety concerns. Regu-
Riverside, assaulted him “with- lators grounded the plane in
n-
out provocation” as the officer March after it was involved in

held his young child. Bullets two fatal accidents overseas
struck Mr. French and two of his within five months, killing 346
family members, according to people. It isn’t clear when the
no
police. The officer was the only plane will return to service.
person who fired shots, police Mr. Muilenburg said the
said. The officer was treated and company was making progress Flight trials are a key step toward returning the 737 MAX to the sky after the plane was idled world-wide over safety concerns.
released at a nearby hospital. with getting the MAX cleared
The officer’s child wasn’t injured, again to fly passengers, but tests of its own and submitted dustry. Engine supplier CFM In- Inc. and Southwest have said giant for not being forthcoming
the department said. that the schedule to do so re- the results to the FAA. ternational, a joint venture of they would let passengers on with key information about the
A relative of Mr. French’s mains uncertain. “We haven’t At an international safety General Electric Co. and Safran MAX flights switch to other MAX.
reached on Facebook declined to given the airlines a specific conference in Germany last SA, will have about 250 techni- itineraries for free once the American’s Chief Executive
comment on Sunday and asked timetable,” he said, adding “this week, senior FAA officials told cians working closely with air- plane returns to service. Doug Parker said last week that
for privacy. will all be governed by safety.” foreign regulators, including lines to get each plane ready to Jamie Hawley, who owns a there likely will be a period af-
—Associated Press Mr. Muilenburg said the com- leaders of the European Union fly again, a process that can business in the fishing industry, ter regulators certify the plane
munications lapses involving the Aviation Safety Agency, that take several days, said Allen said he wished Southwest, his but before it returns to com-
IOWA MAX wouldn’t be repeated. The certification tests were immi- Paxson, executive vice president preferred airline, had grounded mercial service, when the airline
company has been reviewing nent, according to a person for the engine maker. That in- the plane more quickly before will put executives and crew
Family of Four Found the design of the MAX and how volves such steps as removing the FAA ordered it in March. “I members on MAX flights to
Dead at Their Home the company handled the after- protective covers, changing oil can’t say it’s going to be an air- demonstrate its safety. United
math of the two crashes. Mr. and other fluids and running plane I will readily want to CEO Oscar Munoz has said he
Relatives discovered the bod- Muilenburg said no personnel
CEO Muilenburg engines on the ground. board, and given the option, I would be on United’s first MAX
ies of four family members, inaction has been taken as a result said it will take time While the fleet is idled, CFM would definitely switch off of flight after the plane returns.
cluding two children, with gun- of the accidents. is pulling forward some sched- it,” he said. Southwest CEO Gary Kelly has
shot wounds at their home in Getting the FAA’s endorse-
to rebuild the public’s uled maintenance to get equip- Mr. Muilenburg promised said he would “love” to be on
central Iowa, police said. ment is only one of the hurdles confidence. ment in pristine condition. Boeing would be more trans- one of the first MAX flights.
The bodies were discovered Boeing and airlines face in re- “Our teams are going to be on parent after regulators, airlines —Robert Wall
Saturday morning at the West turning the plane to regular site with those airplanes to and pilots faulted the aerospace contributed to this article.
Des Moines home. Authorities service. Foreign regulators also make sure that everything goes
identified the victims as 44- have to sign off on the fix. who attended the briefings. smoothly,” Mr. Paxson said.
year-old Lavanya Sunkara, 41- The long-anticipated certifi- On Saturday, an FAA spokes- But airlines may have the THE WALL STREET JOURNAL
year-old Chandrasekhar Sunkara, cation tests, the people said, man said “we have no updates hardest task: selling the plane’s (USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
and two boys aged 15 and 10 have been planned with the to provide at this time.” He said safety to customers. It is a di-
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
years. Autopsies were being per- support of European and Cana- that “we continue to work with lemma for carriers that typi-
dian regulators. They could Boeing to gather the necessary Published daily except Sundays and general legal holidays.
formed to determine the cause cally focus marketing on prices, Periodicals postage paid at New York, N.Y., and other mailing offices.
of death. take a week or more to com- data we need to ensure the air- reliable service, or the allure of
Postmaster: Send address changes to The Wall Street Journal,
Real estate records indicate plete, according to one person craft is safe to return to ser- a vacation rather than safety. 200 Burnett Rd., Chicopee, MA 01020.
the family had owned the home briefed on the anticipated time- vice.” American Airlines Group Inc. All Advertising published in The Wall Street Journal is subject to the applicable rate card,
since March. West Des Moines line, and would be followed by EASA is performing an inde- and Southwest Airlines Co. copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc.,
police Sgt. Dan Wade said there additional weeks of FAA ex- pendent safety review of the have struck the plane from 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to
accept an advertiser’s order. Only publication of an advertisement shall constitute final
was no threat to the community perts analyzing and formally MAX flight-control system that schedules through Labor Day. acceptance of the advertiser’s order.
and that investigators were try- documenting the test results. is expected to stretch at least United Continental Holdings Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
ing to determine exactly what Engineering or handling prob- into July, and depending on the Need assistance with your subscription?
happened. Police said the rela- lems uncovered during the early conclusions, could take By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
tives who discovered the bod-
ies—also two adults and two
tests, these people emphasized,
could extend that timeline.
until September to complete,
according to two European gov-
CORRECTIONS By phone: 1-800-JOURNAL (1-800-568-7625)
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children—had been staying with
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The start of FAA-run air-
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ernment officials familiar with
the details.
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Readers can alert The Wall Street WSJ back issues and framed pages: wsjshop.com
West Des Moines police and the MAX to potentially return Returning the several hun- Journal to any errors in news Our newspapers are 100% sourced from sustainably certified mills.
the Iowa Division of Criminal In- to U.S. airspace around late dred MAX planes grounded articles by emailing
vestigation were investigating. summer. Boeing previously said globally to the sky is a challenge wsjcontact@wsj.com or by calling
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—Associated Press it completed extensive flight that cuts across the aviation in-
THE WALL STREET JOURNAL. * * Monday, June 17, 2019 | A3
U.S. NEWS
More People Get Help on Down Payments

Aid enables those with Share of home buyers using Number of
Federal Housing Administration down payment
jobs but little savings mortgages that get government assistance programs
to purchase a home; down payment assistance
15% 2,500
delinquencies a concern
2,400
BY BEN EISEN
10
AND LAURA KUSISTO
2,300
Maiya Jones didn’t have
money saved up for a down 5
payment when she started 2,200
looking for a house in the St.
Louis area last summer. 2,100
NICK SCHNELLE FOR THE WALL STREET JOURNAL

0
Her real-estate agent told 2014 ’15 ’16 ’17 ’18
2014 ’15 ’16 ’17 ’18 ’19
her about a program that
would cover the 3.5% required
on a Federal Housing Adminis- Share of mortgages eligible for Fannie Mae and Freddie Mac
tration-insured mortgage for backing with down payments of less than 5%.
those who meet certain income 25%
qualifications. She took an on-
Fannie Mae allows
line course about the basics of 20
3% down-payments
home buying and visited an
RECESSION Freddie Mac
adviser. At the end of April, 15
follows suit
she closed on a $67,000 three-
bedroom house and moved in 10
with her two children. ‘I thought this was unattainable, honestly,’ said new homeowner Maiya Jones, with her children.
5
“I thought this was unat-
tainable, honestly,” said Ms. 0 about assistance. “It has defi- gram called the Chenoa Fund, president of the mortgage
Jones, 26 years old, who nitely increased,” she said. which is run through a mort- corporation, said more than
2001 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17 ’19
works as a cashier. “People are now more aware.” gage corporation owned by 50% of the borrowers it
In today’s solid job market, Sources: Federal Housing Administration (payment assistance); Down Payment Resource (down payment Down-payment assistance the Paiute Tribe of Utah and works with are minorities
many home buyers can afford assistance programs); CoreLogic (mortgages eligible for backing) funded by sellers became fer- operates across the country. and first-generation home-
monthly mortgage payments tile ground for abuse before The fund sued to stop the new owners whose families lack
but lack savings for a down tough. In recent years, those U.S. Department of Housing the housing market collapsed. rules from going into effect, the resources to help them
payment. That has boosted who used government down- and Urban Development. Sellers routed money to buy- and HUD delayed their imple- with a down payment. “We’re
the popularity of govern- payment assistance for FHA “It’s meant to be supporters through nonprofits and mentation until July. being tarred with the wrong
ment-funded assistance pro- loans were delinquent at a ive of folks who can afford then tacked the cost onto the Michael Whipple, vice brush,” Mr. Whipple said.
grams. More than 13% of bor- higher rate than those who the monthly payment but purchase price. The federal
rowers who used the FHA didn’t, government data show. might not be able to raise the government has since prohib-
mortgage in the first three “Someone who can’t come upfront capital and can’t get ited the practice.
.
months of this year got gov- up with a down payment is a check from Mom or Dad,” Still, FHA Commissioner
ly
ernment help with the down far more likely to be living said Chris Krehmeyer, presi- Brian Montgomery, who had
payment, up from 8.6% five paycheck to paycheck,” said dent and chief executive of the same job during the fi-
years earlier, according to John Burns, founder of John Beyond Housing. nancial crisis, has been
FHA data published this Burns Real Estate Consulting on Many federal, state and lo- closely watching risks associ-
month. in Irvine, Calif. cal programs operate through ated with FHA loans. In a re-
The share of buyers who Ms. Jones had nearly housing finance agencies and port last year, the FHA said it
used one of the more than $1,000 saved up, but not nonprofits. They vary by re- was concerned about govern-
2,500 down-payment- assis- enough for the approximately gion, but typically offer some ment programs that operate
us l,
tance programs across the $2,300 down payment. She re- amount of cash to buyers who on a national level “in ways
country doubled to 10% be- ceived the money structured qualify and structure it as a that generate benefits for the
al a
e
tween 2013 and 2016, accord- as a second loan that is for- second loan. Some forgive it provider,” and “increase
ing to a Freddie Mac analysis given after five years. If she after a period of time while costs, but not benefits, to the
of the National Survey of moves out before then, she others require repayment. borrower.”
ci on
Mortgage Originations. has to pay back a prorated Sometimes, the program pro- Mr. Montgomery declined
Those who use down-pay- portion of the money. She said vider charges an above-mar- to comment through a spokes-
ment assistance start out with she plans to stay put. ket interest rate on the mort- man.
little or no skin in the game. Beyond Housing, a local gage to recoup the money put Earlier this year, the FHA
As a result, some economists nonprofit, fronted the money toward the down payment. tightened standards for cer-
er rs
and analysts worry that buy- and was reimbursed by the St. Kason Wallace, a real-estate tain programs.
ers have less incentive to keep Louis County government, agent in the Chicago area, said That move threatens to
making payments if times get which receives funds from the about 90% of her clients ask close a down-payment pro-
m e
Measles Strains Local Resources

m rp
BY BRIANNA ABBOTT Resurgence outbreaks. When a health-care

provider reports a case of sus-
tected people who are exposed.
Health officials try to notify
Measles first appeared in Measles cases have returned pected measles to the local everyone who may have been
since the disease was declared
co Fo
Clark County, Wash., on New health department, officials in contact with an infected
Year’s Eve, when a child who eliminated in the U.S. in 2000. have to determine when and person. They will often post
had traveled from Ukraine ar- 30,000 cases where the person may have notices listing exposure sites
rived at an urgent-care clinic. spread the disease. and times, view security foot-
By January 15, the outbreak 25,000
Clark County health offi- age and get hospital records to
Measles declared
had taken over the local health eliminated cials logged over 19,000 work- identify other patients who
department, with two addi- ing hours and spent more than may have been exposed.
tional confirmed cases and 11 20,000 $800,000 to contain the out- In Tennessee, an infected
more under investigation. By break, said Alan Melnick, di- person drove through the
mid-March, the number of 15,000 rector of Clark County Public state while contagious, and
confirmed cases jumped to 71. Health. The county hasn’t had health officials had to figure
Clark County Public 10,000 a new confirmed case of mea- out who might have been ex-
Health took over the building sles since March 18. posed during the patient’s rest
it had been sharing with sev- Officials contacted over stops. “How do you even track
n-
5,000
eral other departments and 4,000 people for initial inter- down someone who visited a
nonprofits to make room for views, kept more than 800 gas station at certain hours?”
more than 200 employees, vol- 0 people under quarantine and asked Michelle Fiscus, medical
unteers and state and federal 1990 2000 ’10 daily monitoring, and excluded director of the immunization
no
health officials, who worked in Source: Centers for Disease Control and
nearly 850 students from program at the Tennessee De-
shifts. Nurses who normally Prevention school, he said. partment of Health.
would visit with low-income “It was kind of a nightmare, Tennessee officials deter-
pregnant women instead measles outbreak, pretty much in terms of the workload,” Dr. mined the person had stayed
tracked down measles cases. everyone in your department is Melnick said. “Public health is in a hotel, resulting in roughly
Things like food inspections going to be working on that,” underfunded at all levels, and 90 contacts from 15 states and
and dealing with other infec- said Karen Smith, the state this is $800,000 spent on three countries. Overall, health
tious diseases sometimes public-health officer and direc- something completely pre- officials reached out to 537
didn’t get done. tor of the California Depart- ventable.” people for that one case,
As measles continues to ment of Public Health, which Measles patients are conta- which led to four more con-
spread in the U.S., with over has seen 51 confirmed measles gious for roughly four days be- firmed cases, all close contacts
1,000 confirmed cases this cases as of June 5. “It really im- fore and four days after the of the original patient.
year across 28 states, the out- pacts the entire system.” telltale rash appears, and in- Measles outbreaks are a
breaks are exacting a hefty toll Although some federal help fected people often venture out burden on government fund-
on local and state health de- is available, local and state in public during that period. ing. California’s 44 cases from
partments, draining resources public-health officials, working The virus can remain viable in January 1 to May 10 cost more
and siphoning health-care with local health-care provid- the air for up to two hours af- than $400,000, according to a
workers from other needs. ers, are primarily responsible ter a cough or a sneeze, and it May 10 report by state Sen.
“If you have something like a for tracking and stopping the can infect up to 90% of unpro- Richard Pan.
Massachusetts to Weigh Abortion Bill

BY JACOB GERSHMAN as a parental consent require- could weaken abortion rights essary, to save the mother’s HOW SOON IS NOW?
ment for pregnant girls under has also galvanized antiabor- life or to avoid “grave impair-
Abortion will take center 18. tion efforts in more conserva- ment” of her physical or men-
stage at the Massachusetts A joint judiciary committee tive areas. tal health.
State House on Monday, with is holding a hearing on the bill This year, Georgia, Ken- Performing a post-24-week
lawmakers in both houses Monday ahead of a possible tucky, Ohio, Mississippi, Mis- abortion outside those circum-
scheduled to hear a proposal floor vote. souri, Alabama and Louisiana stances would be a crime pun-
to decriminalize the procedure Republican Gov. Charlie have enacted laws that either ishable by up to five years.
throughout pregnancy and Baker has said he supports the severely limit or effectively The new bill would remove
strip away other limits on the state’s current abortion laws ban abortion procedures. The any criminal prosecution.
procedure. and opposes late-term proce- antiabortion laws have It would also repeal a pro-
Dozens of Democratic Mas- dures. sparked court challenges; fed- vision requiring physicians to
sachusetts legislators have The Massachusetts bill is eral courts have mostly struck takes measures to try preserve
signed on to legislation known part of a wider push by abor- them down. the life of a potentially viable
as the “Roe Act” in reference tion-rights advocates to loosen Dueling contingents of ac- fetus after an abortion. And it
to the Supreme Court’s land- restrictions on late-term pro- tivists are planning to descend would expand state-sponsored
mark ruling establishing a cedures and enshrine abortion at the State House, in Boston, insurance coverage of abor-
woman’s constitutional right rights into state codes. New on Monday. tion.
to an abortion. York and Vermont have en- Massachusetts currently The legislation would also
The state bill would elimi- acted similar abortion protec- has some of the least restric- redefine abortion and preg-
nate all criminal penalties for tions. tive abortion laws in the na- nancy in state law, deleting
abortions, including those per- The possibility that a more tion. It allows abortion after language that refers to a fetus
formed after 24 weeks, as well conservative Supreme Court 24 weeks of pregnancy, if nec- as an “unborn child.”
A4 | Monday, June 17, 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
Backing for Impeachment Inquiry Hits 27%

BY JOSHUA JAMERSON Trump’s impeachment follow- The Wall Street Journal/NBC News
About half of Americans oppose impeachment, but more now think there is enough evidence to
ing the release of special poll was based on nationwide tele-
begin hearings. Since March, more Democrats have grown comfortable with Elizabeth Warren as a phone interviews of 1,000 adults, in-
WASHINGTON—Support is counsel Robert Mueller’s re-
presidential candidate, while two leading rivals have slipped. cluding 550 who use only a cellphone.
growing among Democrats to port, which outlined efforts by It was conducted from June 8 to June
begin an impeachment inquiry Mr. Trump to curtail or shut Feelings toward Congress holding impeachment hearings Democrats enthusiastic or
11, 2019, by the polling organizations
of Bill McInturff of Public Opinion
into President Trump, a new down the investigation into comfortable with top Strategies and Jeff Horwitt of Hart
Wall Street Journal/NBC News Russian interference in the There is enough evidence to begin impeachment hearings candidates Research Associates.
poll finds, presenting a chal- 2016 election and related Congress should continue to investigate The sample was drawn in the fol-
lowing manner: Individuals were ran-
lenge to House Speaker Nancy matters. to see if there is enough evidence 75% domly selected from national lists of
Pelosi, who has so far opposed Mr. Mueller said he didn’t Congress should not hold impeachment hearings households, who were chosen by a
hearings as politically costly pursue charges of obstruction 70 systematic procedure to provide a bal-
Joe ance of respondents by sex.
and divisive. of justice in part due to Jus- Respondents reached on their cell-
March 16% 33% 47% 65 Biden
The share of Americans in tice Department guidance that phone were randomly selected from
national lists of cellphone numbers.
the survey of all parties call- a sitting president can’t be in- Elizabeth
60 Warren Of the 1,000 adults in the survey, 550
ing for immediate impeach- dicted, and his report didn’t respondents were reached on a cell-
April / May 17% 32% 48% phone and screened to ensure that
ment hearings jumped 10 establish that members of the 55 Bernie their cellphone was the only phone
points, to 27%, since last Trump campaign conspired Sanders they had. In addition, 31 respondents
month. The share of those with the Russian government June 27% 24% 48% 50 were reached on a cellphone but re-
who believe Congress should to win the election. ported also having a landline. Overall,
March June the data’s margin of error is plus or
avoid hearings and allow Mr. The GOP-controlled Senate minus 3.1 percentage points.
Trump to finish his term stood would likely acquit Mr. Trump Source: WSJ/NBC News telephone polls, most recent of 1,000 adults, including 311 Democratic primary voters, conducted June 8-11;
at 48%, unchanged since May. if the House passed articles of full sample margin of error: +/-3.1 pct. pts.
The change is being driven impeachment. The June WSJ/NBC News
by Democrats. Some 48% of The new poll suggests there sight measures. said, “shifts the national num- from 73% in March. poll found that a record num-
Democrats said there is may be political upsides for While many of the Demo- ber, but it’s not changing at all “Biden’s numbers don’t look ber of Americans support
enough evidence to begin im- Democratic presidential candi- crats’ most ardent supporters the core coalitions that you’d like a prohibitive front-runner. abortion rights: 56% said
peachment hearings now, up dates who back impeachment back hearings, an impeach- require to do impeachment.” They look like very solid num- abortion should be legal al-
from 30% last month. hearings, such as Ms. Warren, ment inquiry could be a haz- Mr. Trump earned positive bers, but solid numbers that ways or most of the time,
The Journal/NBC News sur- who was the first major candi- ard for Mrs. Pelosi’s efforts to job-approval ratings from 44% are part of the pack,” Mr. compared with 41% of those
vey also found Democratic date to call for the House to hold the House majority. Inde- of Americans in the survey, in McInturff said. who said it should be illegal
voters adjusting their views of begin proceedings. Among pendents and some other line with his 46% support last Mr. Biden in recent weeks all or most of the time.
some of the party’s leading Democrats, the biggest advo- groups that Democrats need month. faced fierce opposition from The poll illustrated how
presidential candidates. Com- cates of impeachment hear- aren’t eager to back an in- The poll suggested that the Democrats and abortion-rights views of abortion have
pared with March, more said ings are women, African- quiry, the poll found. Democratic electorate may be groups over his longstanding changed within the Demo-
they were enthusiastic or Americans and young people— Bill McInturff, a Republican shifting its views of presiden- opposition to the use of fed- cratic Party, in particular: 81%
comfortable with Sen. Eliza- groups that power the party’s pollster who conducted the tial candidates as voters ad- eral funding for most abor- of Democrats thought abortion
beth Warren of Massachusetts, base. Journal/NBC News survey just to the crowded 23-person tions. Earlier this month, he should be legal always or most
while slightly fewer said so of Some candidates, such as with Democrat Jeff Horwitt, field. Enthusiasm for Mr. Bi- reversed that position, but the of the time, compared with
Sen. Bernie Sanders of Ver- Mr. Biden, widely considered said Democrats’ growing pas- den slipped. Among voters right to an abortion has re- 68% in September 2008, just
mont or former Vice President the current front-runner, have sion for impeachment was who said they would partici- mained a top-of-mind topic for before Barack Obama was
Joe Biden. stopped short of calling for skewing the overall figure and pate in a Democratic primary, Democrats after a dozen states elected president. Among Re-
Dozens of House Democrats impeachment hearings, saying noted that most Americans 66% said they were enthusias- enacted limitations or effec- publicans, support for abor-
.
and a handful of presidential they would be a last resort af- weren’t for it. tic about or comfortable with tive bans on abortion this tion rights has increased since
ly
candidates have called for Mr. ter conducting regular over- Democratic sentiment, he his candidacy in June, down year. 2008 by 4 points, to 29%.
Budget Talks Shrink Partisan Gulf Trump’s 2020 Bid Set

on
BY KRISTINA PETERSON limit increase. For an Official Launch
us l,
AND NATALIE ANDREWS While some administration

officials have been skeptical of BY CATHERINE LUCEY The Orlando event is ex-
al a
e
WASHINGTON—Capitol Hill anything longer than a one- pected to include first lady
is a hotbed of partisan fighting, year spending agreement, con- President Trump’s 2020 re- Melania Trump, Vice President
but a handful of congressional gressional leaders have been election bid starts Tuesday Mike Pence and his wife, Karen
ci on
leaders are quietly working pushing a two-year accord. with a rally in Orlando, Fla., Pence, as well as the presi-
across the aisle to stabilize the Lawmakers said a longer-term more than two years after mak- dent’s adult children, said peo-
STEFANI REYNOLDS/CNP/ZUMA PRESS
government’s finances. agreement would make it eas- ing clear he would seek a sec- ple familiar with the planning.
ANDREW HARNIK/ASSOCIATED PRESS
Away from the headline- ier for them to write spending ond term. On the day of his inaugura-
grabbing recriminations over bills and diminish the pros- Holding a launch rally after tion, Mr. Trump filed a re-elec-
er rs
whether to impeach President pects of another partial gov- the campaign effectively gets tion letter with the Federal
Trump, senior lawmakers in ernment shutdown, after the under way is hardly a new po- Election Commission, though
both parties are focused on five-week closure that ended litical play; President Obama that letter did say that it didn’t
smoothing the path for Con- earlier this year. announced his 2012 re-election “constitute a formal announce-
m e
gress to keep the government “A two-year deal would be bid more than a year before his ment of my candidacy.”
open for two years after its in everybody’s best interests,” first official rally, and early Many Democrats have an-
current funding expires on said Senate Appropriations Democratic 2020 front-runner nounced a campaign or an ex-
m rp
Oct. 1. Along the way, they are Democratic Rep. Gerry Connolly, left, said he won't oppose a Committee Chairman Richard Joe Biden held his “kickoff
trying to avoid a bill-derailing spending bill over an abortion restriction. GOP Rep. Tom Cole, Shelby (R., Ala.). rally” about a month after he
debate over abortion, prevent a right, called House appropriators an ‘island of bipartisanship.’ Since Congress and former entered the race.
debt default and give lawmak- President Obama agreed to Still, Mr. Trump has ushered
Mr. Trump’s
ers a modest pay raise. date Joe Biden this month House officials last week to lower federal spending as a in a new style of presidential predecessors avoided
co Fo
“The forces of partisanship faced such stinging criticism continue talks aimed at reach- way to resolve a 2011 debt-ceil- politicking with his perpetual
and polarization are very, very from the party’s left wing for ing a two-year budget deal and ing fight, lawmakers have regu- campaign mode. His predeces-
overt campaigning so
strong and still eating away at supporting the Hyde amend- raising the government bor- larly struck two-year deals to sors waited well into their first early in the process.
the institution. Appropriators ment that a day later he re- rowing limit, known as the raise both military and nonmil- terms before making their in-
are probably one of the last versed his stance. debt ceiling. Those negotia- itary spending levels, the most tentions known and avoided
places you’ll see that happen,” “I never have liked the Hyde tions are expected to resume recent of which expires at the overt campaigning so early in
said Rep. Tom Cole (R., Okla.), amendment, and I’ve never un- among the top congressional end of September. Absent an the primary process. ploratory committee first and
referring to his fellow members derstood why we just don’t just leaders and senior White House agreement by early next year, Mr. Trump and his team be- held a rally or formal launch
on the House Appropriations go after it and outright repeal officials this week, although a domestic spending for fiscal lieve this is the right moment later. Sen. Elizabeth Warren of
Committee, which writes it,” said Rep. Gerry Connolly date hasn’t been locked in yet, 2020 would be cut by $55 bil- to reassert his campaign prow- Massachusetts announced an
spending bills. “It’s an island of (D., Va.). But, he said, that aides said Sunday. lion and military spending by ess, as their operation has ex- exploratory committee before
bipartisanship.” alone won’t lead him or many Treasury Secretary Steven $71 billion, compared with fis- panded and the Democratic pri- holding an official rally a little
House Democratic leaders in the caucus to vote against Mnuchin and Majority Leader cal 2019 levels. mary field appears set. They over a month later at the site
have opted to maintain a de- the spending bill that includes Mitch McConnell (R., Ky.) have House Speaker Nancy Pelosi selected the battleground state of a historic labor strike. Sen.
n-
tente over abortion funding in it. “In voting for or against any said they hope to raise the (D., Calif.) said that congressio- of Florida to stake their claim Bernie Sanders of Vermont de-
their efforts to pass a spending bill, it’s a calculus: you weigh limit as part of any budget nal leaders, “left to their own with one of the large-venue clared his plans on public radio
bill. Despite pressure from pro- the good versus the bad,” he deal. devices,” could strike another gatherings that defined the and later held a rally in his na-
gressives to remove it, Demo- said. Spending bills without the The Treasury Department deal to avoid the deep cuts. president’s 2016 operation. tive Brooklyn. Pete Buttigieg
no
cratic leaders included in the abortion-funding restriction has been using extraordinary White House officials have “The campaign wants to flex announced an exploratory com-
bill expected to pass this week would be unlikely to pass the measures since March to con- said they are concerned about its muscles to show how much mittee a few months before for-
an amendment that bans fed- GOP-controlled Senate. serve cash, but the government the impact a two-year deal better they are than any of the mally launching his campaign
eral funds for most abortions. Meanwhile, Senate GOP could begin to miss payments raising spending would have on Democratic campaigns,” said in the Indiana city where he is
Democratic presidential candi- leaders met with top White by early fall without a debt- the federal deficit. GOP consultant Alex Conant. mayor.
rectors dissented from that de- tion to divestment is Mr. Perez,

Pensions cision.
Calpers had $366 billion in
a Corona, Calif., police sergeant
who decided to run in the 2018
assets as of Thursday. The fund Calpers board election because
Reconsider was $139 billion short of what
it needs to fulfill its liability as
of frustrations with the pres-
sures pension costs were put-
Divestment of June 30, 2017, the latest fig-

ure available.
Anti-divestment sentiment
ting on his department. He
handily unseated the board
president after promising to
gained more momentum in keep politics out of pensions.
MICHELLE GUSTAFSON FOR THE WALL STREET JOURNAL
Continued from Page One 2017 as new Calpers Chief Exec- “It’s not that I’m pro-tobacco
ing to the Federal Reserve. utive Marcie Frost cautioned or pro-firearms or pro-private
New York state’s Democratic against new divestments during prisons or pro-fossil fuels,” Mr.
comptroller and unions repre- a tour of newspaper editorial Perez said. “I’m anti limiting
senting civil service workers boards in California. In 2018 the our pool.”
oppose a bill in the Legislature Calpers board resisted calls to This year, the Calpers board
to ban fossil fuel investments sell more gun-company shares opposed two more divestment
by the state pension fund. In following a deadly high-school bills in the California Legisla-
New Jersey, Gov. Phil Murphy, a shooting in Parkland, Fla. ture—one involving private
Democrat, vetoed legislation “Divestment limits our in- prison companies and a second
last year that would have forced vestment options,” Ms. Frost for companies tied to Turkey in
divestment of state pension said. “With a targeted return of protest of that country’s lack of
dollars from companies that 7%, we need access to all po- recognition for the Armenian
avoid cleaning up Superfund tential investments across all genocide.
sites by declaring bankruptcy. Calpers board member Jason Perez is urging the system to end its ban on stocks tied to tobacco. asset classes. Divesting does Many California lawmakers
There is some evidence that the exact opposite—it shrinks are now wary of pushing Calp-
divesting from certain holdings retirement income for public- could compel their pension tion worsened after the 2008 the investment universe.” ers to sell investments based
can be costly for systems that sector workers,” said Anqi Chen, funds to divest from Sudan, financial crisis. A key sign came The board now plans a com- on principle, said Democratic
oversee retirement savings for one of the study’s authors. Iran or other governments con- in December 2016 as retire- prehensive review, scheduled state Assemblyman Freddie
millions of public workers. A Public-pension funds once sidered by the U.S. to be spon- ment-system officials recom- for 2021, of all of Calpers’ exist- Rodriguez, head of the Public
November 2016 study by the gave little thought to the sors of terrorist activity. mended the board drop its to- ing divestment policies, which Employment and Retirement
Boston College Center for Re- money they might lose from so- Calpers was an early adopter bacco ban, citing the potential include bans on investments in Committee.
tirement Research found aver- cial activism. Many sold invest- of divestment, selling invest- money lost. Staying out of the companies that mine thermal California Assemblyman Rob
age annual returns in states ments in South Africa in the ments tied to South Africa in investments for 16 years had coal, manufacturers that make Bonta, a Democrat and sponsor
with divestment requirements 1980s to protest apartheid. 1986 and tobacco in 2000. At cost the fund more than $3.5 guns illegal in California and of the private prisons bill,
were 0.40 percentage point Others banned investments in the time, Calpers had more billion, a fund consultant calcu- businesses operating in Sudan hopes to find enough allies to
lower than plans in states with- tobacco products in the 1990s than enough assets on hand to lated. and Iran. Directors have stated get the divestment measure ap-
out such requirements. and early 2000s. pay for future obligations, ac- After a debate, the board not a preference for “engagement,” proved by January. “I believe
Divestment mandates “de- In the aftermath of the Sept. cording to the fund. only kept the ban but expanded meaning direct communication we should be investing in
tract from what a retirement 11, 2001, terrorist attacks, more Doubts about the strategy it to cover investments made with portfolio companies. things that represent our val-
fund is for, which is to provide than 20 states passed laws that rose as Calpers’ funding situa- by external managers. Three di- Leading the internal opposi- ues,” he said.
THE WALL STREET JOURNAL. Monday, June 17, 2019 | A5
PA I D A D V ER TI S EM EN T
COMBATING
UNDERAGE
VAPING
Youth vaping is a serious problem.
To help address it, JUUL Labs has:
.
ly
Advocated for raising the legal age to
on
purchase our products to 21+ nationwide.
us l,
al a
Stopped the sale of non-tobacco and

e
ci on
non-menthol based flavored JUULpods to our

traditional retail store partners—these products
er rs
are now only available on our website.

m e
m rp
Enhanced our online age verification process.

co Fo
Strengthened our retail compliance program

with over 2,000 secret shopper visits per month.
Shut down our Facebook and Instagram

accounts and are working to remove
n-
inappropriate social media content

no
generated by others on those platforms.
And we continue to invest in new technologies

to further restrict youth access.
FOR ADULT
SMOKERS ONLY
JUUL.com/youth-prevention
© 2019 and TM JUUL Labs, Inc. All rights reserved.
Paid for by JUUL Labs, Inc.
A6 | Monday, June 17, 2019 * * THE WALL STREET JOURNAL.
U.S. NEWS
Gears in Motion for

Possible New Tariffs
BY ANTHONY DEBARROS The new round of tariffs not to return to talks rather than
AND JOSH ZUMBRUN would also hit $27.7 billion of carry through its threat. The ad-
apparel and clothing accessories, ministration has said the tariffs
WASHINGTON—The U.S.- $14.1 billion of footwear, a total are warranted because China
China trade conflict is moving of $26.7 billion of toys, games has moved too slowly in making
closer to home. and sports equipment and $2.3 a deal.
Consumer items, largely billion of books. At a recent briefing with re-
spared by existing tariffs on Chi- The tariffs would be assessed porters, Cummins Inc. chief ex-
nese imports, would face 25% to U.S. importers, who must pay ecutive Tom Lineberger—who
levies under the Trump adminis- 25% of the value of their imports chairs the Business Roundtable’s
tration’s plan targeting $300 bil- to Customs and Border Protec- trade committee—said the bur-
lion of Chinese goods that ha- tion. For example, the $43 bil- den of new tariffs will largely
ven’t yet been taxed. lion in mobile-phone imports fall on U.S. companies.
On Monday, the Office of the would be assessed $10.8 billion “What you have now is a sit-
U.S. Trade Representative is due tariffs. Economists have found uation where U.S. companies are
to open seven days of hearings paying significant tax burden
on the new tariffs to solicit pub- now from tariffs,” said Mr. Line-
$300B
lic comment, ending June 25. barger, whose company imports
That is to be followed by a one- small diesel engines from its
week period for submission of manufacturing plants in China.
written comments, after which “We’re the one paying the Chi-
President Trump could direct The amount of Chinese goods nese import tariffs now.”
PATRICK T. FALLON/BLOOMBERG NEWS

the office to impose the tariffs. that haven’t yet been taxed The tariffs are assessed via a
The biggest targets would be complex system of tens of thou-
mobile phones and laptops, ac- sands of eight-digit and 10-digit
cording to a Wall Street Journal codes that specify categories of
analysis of 2018 Census Bureau that in the previous rounds of commodities and finished prod-
data on the more than 3,800 cat- tariffs, the costs have been ucts. The value of these catego-
egories of goods on which the passed on almost entirely to ries has been estimated for this
U.S. has proposed new tariffs. consumers. article using 2018 trade values,
The U.S. imported $43 billion in Chinese businesses would and the names of the categories
mobile phones last year from also suffer as the tariffs effec- are simplified to those familiar
China, and $37 billion in laptops, tively make their goods more ex- to consumers. Trucks at a shipping terminal at the Port of Los Angeles. Economists have found that in the
data shows. pensive, prompting American Only a few relatively narrow previous rounds of tariffs, the costs have been passed on almost entirely to consumers.
Other major categories facing importers to cut their volume of categories of items avoided the
the looming possibility of tariffs: imports or look elsewhere, when threat of all four rounds of tar- tion to pharmaceuticals, the ment period, it removed 297 of The two leaders may meet in
$11.9 billion of children’s vehi- they can, for the goods. iffs. The eight- and 10-digit goods exempted consist almost those items before completing Osaka as part of a high-profile
.
cles like tricycles and scooters, In the hearings, companies codes can be aggregated into 96 entirely of chemicals, rare met- the list. effort to revive trade talks that
ly
$5.4 billion of videogame con- will have a chance to make the two-digit classification codes als and medical supplies. The final steps in the tariff reached an impasse in May. The
soles and $4.6 billion of com- case that the U.S. Trade Repre- used for imports. Of these two- The U.S. Trade Representa- process will coincide with a last time the two leaders
puter monitors. sentative shouldn’t move for- digit codes, pharmaceutical tive can remove items from the gathering of the heads of state reached a trade truce, at the
To a large extent, these major ward. Much of American indus- on products are the only category list after receiving testimony of the Group of 20 economies in 2018 summit of the Group of 20
items are almost entirely im- try is united in opposition to to entirely avoid tariffs. and written public comments. Osaka, Japan, at the end of June. major economies in Buenos Ai-
ported from China—the source tariffs of this extent, led by ma- In total, about $16.8 billion a The agency has done so spar- The summit includes the leaders res, they refrained from hitting
of 82% of mobile phone imports, jor business groups like the year of goods are being spared ingly—in the second round of of the world’s largest economies each other with any tariffs for
94% of laptops, 85% of tricycles Business Roundtable and Cham- from any tariffs, as well as $7 tariffs last year it initially and Mr. Trump and China’s Pres- over six months, until last
us l,
and scooters and 98% of video- ber of Commerce, which are urg- billion of items that use special proposed tariffs on 6,031 differ- ident Xi Jinping would typically month’s breakdown led to the
game consoles. ing the Trump administration classification provisions. In addi- ent items, but after the com- attend. return of tariff escalation.
al a
e
Upping the Ante

ci on
The U.S. has steadily placed or proposed tariffs on most goods imported from China, excepting only a few items, including pharmaceuticals and some chemicals.
The percent of imports from China covered by each tranche of tariffs, based on 2018 data
er rs
July - Aug. 2018 Sept. 2018 - May 2019 Proposed

25% tariffs imposed on $50 billion of imports 10% tariffs imposed Sept. 2018 on $200 billion of imports. They Proposed tariffs on additional $300 billion of imports
Targets: Machinery, electrical equipment, plastics were increased to 25% on May 2019 Targets: Most remaining items, including cellphones and laptops
Targets: Machinery, electrical equipment, plastics
m e
Electrical equipment: Apparel Furniture Other* 42% 10% 89% 59% 97% 100% 97%
Furniture 89%
Other*
cellphones, TVs, lamps, and and 15% and
m rp
vacuums, etc. textiles bedding bedding

11% 0% 0%
Metals Plastics, Vehicles, Metals

68% 57% Autos,
92% Metals
99% 100% 98%
Autos,
3% rubbers boats etc. etc.
co Fo
Machines and tools: 10% 18% 52% 100%

appliances, computers, Footwear 49%
** *50% 7% 66%
** 100% 100%
etc. Toys and 0% 0% 0% 0% 100%
15% games
0% Wood products 64% 99%
*Includes food, minerals, optical products, musical instruments, etc. †Stone and glass ‡Chemicals, pharmaceuticals Note: Categories may include finished products, components and raw materials.
Source: U.S. Census Bureau Yolanda Martinez/THE WALL STREET JOURNAL
the four tiers of the company’s trade officials that the threat searching for alternate suppli- from the Census Bureau, the on tariffs, including car-seat
Finding spinning musical Christmas
tree, or to put together the
of tariffs 18 months ago
prompted them to look for
ers in the Dominican Republic,
Cambodia and Bangladesh
U.S. now imports 86% of dis-
play fireworks used in shows
maker Dorel Juvenile Group
Inc. of Columbus, Ind.
mechanics inside its “Night- new manufacturing partners soon after Mr. Trump won the from China. The company’s 700 workers
U.S. Goods
n-
mare Before Christmas”- in Mexico and other foreign election in 2016, said the com- Mr. Pelkey said he has now produce three million
themed wall clock, which dan- countries that may have pock- pany’s president, Bradley Han- looked for suppliers in coun- seats a year, and it stands
gles characters and a swinging
Is Struggle pendulum, Mr. Tinberg said.
ets of cheaper labor.
But the search turned up
delman.
But suppliers in those coun-
tries including Vietnam, Cam-
bodia, India and Mexico, and
ready to boost production,
Timothy Gallogly, the com-
no
Both products, made under li- short. Vietnam can handle or- tries wanted larger orders has yet to find one that can pany’s director of legal affairs,
censing deals with Walt Dis- ders for wood products and than he required, he said, so make fireworks of the quality told U.S. trade officials in a
Continued from Page One ney Co., sell for about $200 textiles but “has very weak in- his company continues to he typically sees in China. June 6 letter.
“Even real shooting wars apiece. frastructure in metal fabrica- source its goods from China. Mr. Pelkey said reviving the “Dorel is confident that its
end with negotiation, and this “There are very few people tion,” officials at the Minne- In New Hampshire, Atlas dormant U.S. fireworks manu- workers can handle additional
will ultimately end in negotia- over here who want to do the sota company said in a letter. PyroVision used to make its facturing industry is unlikely, capacity,” Mr. Gallogly said.
tions,” Mr. Ross said. type of detailed handwork on In general, factories couldn’t own fireworks. But rising given the high costs of insur- Even so, companies with
“Whether that will be in 10 products that are sold to the match China’s prices or keep costs forced it to close its fac- ance and the tight regulation the ability to increase produc-
minutes, 10 weeks, 10 months middle class,” said Mr. Tin- up with production demands. tory in 1995, Mr. Pelkey said, that comes with the manufac- tion in response to Chinese
or longer, it’s not possible to berg, whose company records “It was NOT even close,” and it now relies almost solely ture of explosive devices. It tariffs are minorities in the in-
judge.” more than $400 million in an- they wrote. on Chinese imports to stage would also take years to hire dustry, said Kelly Mariotti, ex-
But the uncertainty of nual revenue. Strikeforce Bowling LLC, municipal fireworks shows and train a workforce, he said. ecutive director of the Juve-
when—or even if—Beijing and Company officials at baby- which imports hundreds of and to sell sparklers and other Some manufacturers, how- nile Products Manufacturers
Washington will strike a deal gate and bedrail maker Regalo thousands of bowling shoes pyrotechnics to consumers. ever, have filed comments ei- Association. Most baby prod-
has already taken a toll on International LLC told U.S. and bags from China, began According to trade data ther supportive of or neutral ucts sold by U.S. companies,
businesses. including car seats, cribs,
Window curtain importer S. highchairs, play yards and
Lichtenberg & Co., which sup- strollers, are made in Asia, she
plies Walmart Inc., Kohl’s said.
Corp. and Amazon.com Inc., Ms. Mariotti’s organization
stopped sewing hems and rod is pushing trade officials to re-
pockets at its U.S. facilities in move baby products from the
2007. President Scott Gold- next round of tariffs in an ef-
stein said restarting that work fort to keep them affordable.
isn’t on the table. “Higher costs for these
“I don’t even know if we products will place an unfair
can get sewers or what we burden on families that will
would have to pay them,” said undoubtedly result in fewer
Mr. Goldstein, adding that babies and toddlers having ac-
none of the U.S. textile mills cess to products critical to
or dye houses that the 300- their safety,” she said in a
worker company, founded in statement.
1933 and based in New York, The tariffs have also drawn
used to buy fabric from are opposition from broad coali-
ELIZABETH FRANTZ FOR THE WALL STREET JOURNAL
still in business. tions of business groups, in-

Illinois collectibles maker cluding the U.S. Chamber of
Bradford Exchange began us- Commerce and the National
ing Chinese workers in 1985 to Retail Federation. In a letter to
paint intricate scenery on por- Mr. Trump on June 13, tariff
celain figurines and assemble opponents, including Walmart,
devices that light up and play Target Corp. and Costco
music. Now, more than half of Wholesale Corp., said current
its products are hand-painted and proposed tariffs would
or involve handwork, said raise costs to a family of four
Chief Executive Richard Tin- by an average of $2,000 a
berg. year.
It takes a skilled artisan to —Anthony DeBarros
paint the figurines that adorn Stephen Pelkey, CEO of Atlas PyroVision, objects to a Trump administration plan to put 25% tariffs on $300 billion in Chinese imports. contributed to this article.
THE WALL STREET JOURNAL. * * * * Monday, June 17, 2019 | A7
WORLD NEWS
Power Outage Hits Argentina, Uruguay
Tens of millions affected
by blackout; cause could
take two weeks to
determine, officials say
BY PAULO TREVISANI
AND JEFFREY T. LEWIS
BUENOS AIRES—Power
companies in Argentina and
Uruguay said Sunday after-
noon that they had restored
service to most customers af-
ter a regionwide electrical fail-
ure earlier in the day plunged
the two countries into dark-
ness, bringing subway trains
to a stop, interrupting water
service and forcing businesses
to close.
The blackout left greater
Buenos Aires, South America’s
second-largest metropolis,
with about 15 million people,
without electricity as families
prepared for Father’s Day.
The streets were largely de-
serted, traffic signals weren’t
working, and many of the
stores that opened had to be
RICARDO CEPPI/GETTY IMAGES

powered by generators. The
city’s two airports opened, and
hospitals here and in other
provinces were running on
generators. But metro and
commuter trains were down
for much of the day.
“This morning was a disas-
.
ter. We couldn’t open because Darkened bars and stores were forced to close in the Argentine capital Buenos Aires. Close to 50 million people in Argentina and Uruguay had to cope without electricity.
ly
there was no electricity,” said
Carlos Juarez, owner of the El via his Twitter account. He had lost power. She said the political analyst, Analía del that more than 80% of their cellphones. Voting was delayed
Buen Comer restaurant in Bue- said that the blackout origi- power companies don’t invest Franco, who is based in Argen- customers who had lost power by at least an hour in some
nos Aires’s Chacarita neigh- nated in “a failure in the onin their infrastructure, and she tina. “This increases the bad were back on line. places, according to the Todo
borhood. The restaurant lost coastal transport system, the hoped that Mr. Macri’s politi- mood in the country.” In Uruguay, meanwhile, Noticias website.
half of the ice cream supplies causes of which we cannot yet cal foes would win power to Argentine energy officials power had been restored to Earlier media reports that
he had stocked up for Father’s determine.” “give the people happiness said Sunday afternoon that the nearly 90% of the country of Brazil had been affected
Day patrons, Mr. Juarez said. Mr. Macri, a conservative again.” cause of the blackout could 3.4 million people, Uruguayan turned out to be incorrect. Rio
us l,
Argentine President Mauri- former entrepreneur who faces In a recent poll by Manage- take two weeks to determine. energy authorities reported. Grande Energia SA, a power
cio Macri said in the afternoon a tough re-election campaign ment & Fit, 36% of prospective “We’re not ruling anything Paraguayan newspaper ABC company that supplies 65% of
al a
e
that more than half of Argen- in October, has seen his ap- voters said they would support out,” Argentine Energy Secre- Color reported that two cities the power consumed in the
tina’s 44 million people had proval ratings tumble since Mr. Macri, a sliver above the tary Gustavo Lopetegui said at in Paraguay near the border Brazilian state of Rio Grande
power again in their homes the start of an economic crisis 35% for the candidate of the a press conference, noting that with Argentina, Ayolas and do Sul, which has borders with
ci on
and that the rest would as last year in which the peso Peronist movement, Alberto authorities would even exam- Santiago, had also been hit by Argentina and Uruguay, said
soon as possible. He also said lost about half its value Fernandez, whose running ine if a cyberattack was to the blackout. none of its more than 2.8 mil-
authorities would investigate against the dollar in about five mate is former President Cris- blame. In the Argentine provinces lion clients had suffered any
what had plunged a vast swath months. tina Fernandez de Kirchner. It By 3 p.m., power companies of Sante Fe, San Luis and For- outages related to the blackout
of South America into dark- “No one gives us a credible is too early to determine if the Edesur and Edenor, which sup- mosa, people voting in rein those countries.
er rs
ness. “This is an unprece- explanation of what hap- blackout will affect an unpopu- ply most of Buenos Aires, the gional elections in some areas —Silvina Frydlewsky and
dented case, which will be in- pened,” said Malena Tesouro, lar president’s bid for reelec- province it is in and other re- were forced to cast their bal- Beto Messer in Buenos Aires
vestigated thoroughly,” he said who was among those who tion but “it won’t help,” said a gions of Argentina, reported lots using the lights on their contributed to this article.
m e
m rp
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co Fo
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no
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and your family are going through, we can help
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A8 | Monday, June 17, 2019 THE WALL STREET JOURNAL.
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WORLD NEWS
Elite Iran Guard

Gains Standing
Amid U.S. Curbs
IRANIAN SUPREME LEADER OFFICE/EPA/SHUTTERSTOCK

Force backs armed expanded to include construc-
tion, banking and smuggling,
groups in region as appears to be growing in Iran
Washington blames as it helps to prop up the econ-
omy and keeps more powerful
Tehran for attacks adversaries off balance.
“Everything you see today
BY BENOIT FAUCON contributing to the Islamic Re-
AND SUNE ENGEL RASMUSSEN public of Iran’s defense power
has been achieved under sanc-
TEHRAN, Iran—The coun- tions,” the group’s commander,
try’s top paramilitary force is Maj. Gen. Hossein Salami, then a
maintaining support for armed brigadier general, said in De-
groups in the Middle East and cember, the semiofficial Mehr
finding new sources of funding, News Agency reported. Iran’s supreme leader, Ayotollah Ali Khamenei, and Maj. Gen. Hossein Salami, on the left, attended a ceremony in Tehran in April.
defying U.S. efforts to curb its The risk of a bigger conflict
activities abroad as tensions has come into sharp relief, as tacks on tankers in the Persian Quds Force—which directs The bank declined to com- It also earns funds there
between Washington and Teh- the Trump administration Gulf last month. Iranian offi- Tehran’s Middle East opera- ment on U.S. sanctions. In a from smuggling fuel out of
ran soar following fresh at- blames the Guard for explosions cials have accused the U.S. and tions—and of its Pakistani and statement posted on its web- Iran, and taking consumer ap-
tacks in the Gulf of Oman. that crippled Japanese and Nor- its allies in the region of try- Afghan mercenaries in Syria. site, the bank says the “arro- pliances and cigarettes back
Iran’s government has strug- wegian oil tankers on Thursday. ing to create a pretext to drag In addition, Ansar Bank ex- gant sanctions…will be no into the Islamic Republic, a
gled to support an economy un- Secretary of State Mike Iran into war. tended the equivalent of mil- threat” to its activities. former Guard official and the
der pressure from U.S. sanc- Pompeo over the weekend The U.S. has rolled out an lions of dollars as a loan to a The paramilitary group gen- adviser to the force said.
tions, but its elite defense force sought to build international unprecedented array of sanc- front company controlled by erates funds from construction The group has gained influ-
has found new sources of reve- support for Washington’s claim, tions, designating the Guard a Quds Force, it said. works through its engineering ence in western Iraq with a
nue, including recently-signed saying “it’s unmistakable what terrorist organization to pre- But corporate records show arm, Khatam al-Anbia. In powerful Sunni clan and a local
infrastructure contracts in happened” and that more evi- vent foreign companies from Ansar Bank’s cash deposits in- Syria, Khatam has in the past Shia group, a person familiar
Syria and Iraq as well as ex- dence would be forthcoming. doing business with it, and creased by 4% over the past year signed contracts for con- with U.S. intelligence in the re-
panded smuggling networks, “The intelligence committee making it illegal for Iran’s oil two months as it maintained struction and power equip- gion said. In the past two
according to advisers to the has lots of data, lots of evi- buyers to import its crude. higher returns on savings ac- ment, a Guard adviser said. months, the force has assisted
Guard and the U.S. government. dence. The world will come to In March, the U.S. Treasury counts. The bank carries ex- Khatam has built oil and the purchases of abandoned
The clout of the Islamic see much of it,” Mr. Pompeo banned dealings with the tensive disclosures on its fi- gas pipelines in Iraq between houses to benefit the groups,
Revolutionary Guard Corps, a told “Fox News Sunday.” Guard-owned Ansar Bank, say- nancial health as required by Baghdad and the oil port of that person said. In return, the
group founded to protect the Tehran has denied involve- ing it was the key vehicle to Iran’s central bank and the Basra, as well as a water- groups have allied politically
nation’s security but which has ment in these and previous at- pay salaries of the group’s Tehran stock exchange. treatment plant in the country. and militarily with the Guard.
.
ly
WORLD WATCH
GUATEMALA SOMALIA
on Israel to Expand in Golan Heights
BY DOV LIEBER
Elections Are Held Bombs Rock Capital,
For New President Kill 11, Hurt Dozens GOLAN HEIGHTS—Shrug-
us l,
ging off opposition from the in-

Guatemalans voted for their A pair of explosions rocked ternational community, Israel’s
al a
e
next president, following an elec- Somalia’s capital and left 11 government on Sunday unveiled
toral process that generated people dead, the police chief a new Jewish settlement in a
widespread disillusion and mis- said, in an attack claimed by the secluded and breezy area of the
ci on
trust. al-Qaeda-linked al-Shabaab disputed Golan Heights named

Voters are choosing among 19 group. after President Trump.
candidates for a four-year term Another 25 people were Called Trump Heights, or Ra-
that begins in January 2020. The wounded, Gen. Bashir Abdi Mo- mat Trump in Hebrew, the
winner needs an absolute major- hamed said in Mogadishu on planned settlement reflects Is-
er rs
ity, making an August runoff be- Saturday. He said a car bomb rael’s will to cement Mr.
tween the two top vote-getters exploded near a security check- Trump’s support for Israeli con-
likely. More than 8.1 million citi- point for the presidential palace, trol of the contested territory,
zens of the Central American na- killing nine people. A second car which it captured from Syria in
AMMAR AWAD/REUTERS
m e
tion will also be eligible to vote bomb killed the driver and his the 1967 Six Day War.
for the vice president, congressio- accomplice near a checkpoint on The United Nations and most
nal representatives and mayors. the road to the heavily fortified world powers consider the Go-
m rp
The top five candidates for airport, he said. lan Heights occupied Syrian
president are: former first lady Al-Shabaab, which often tar- land whose status should be re-
Sandra Torres of the National gets the capital, said the blasts solved through negotiations.
Unity and Hope party, who is ex- were meant to strike the first Mr. Trump in March broke with Israeli Prime Minister Netanyahu, right, at the proposed settlement of Trump Heights. Israel’s
pected to finish first but without line of security checkpoints for decades of international con- control of the Golan Heights has been condemned by the United Nations and most world powers.
co Fo
enough votes to win in the first the airport and palace. The air- sensus by recognizing Israel’s
round; former prison director and port is home to a number of sovereignty over the territory. and will always be ours.” from Iranian proxies in Syria. tion of the Golan Heights is
four-time presidential candidate diplomatic offices. The palace is The new settlement is slated The U.S. ambassador to Is- Iranian-backed forces have home to around 50,000 people,
Alejandro Eduardo Giammattei a frequent al-Shabaab target. to take over Bruchim, an Israeli rael, David Friedman, who at- been operating in Syria for half of whom are Jewish and
Falla; businessman Roberto Arzú; Al-Shabaab was responsible community in the town of Kela tended the ceremony, said the much of that nation’s eight-year half Arabic-speaking Druze.
lawyer and journalist Edmond for the truck bombing in Moga- Alon built decades ago that has Golan Heights was essential to civil war, but Mr. Trump’s state- Many of the Druze see them-
Auguste Mulet Lesieur; and dishu in October 2017 that killed a handful of homes. For now, a Israel’s security. ment provided a political boost selves as Syrian, and refuse to
Thelma Cabrera, the only indige- more than 500 people, in one of Trump Heights sign is all that Later Sunday, Mr. Trump on to Mr. Netanyahu in a close accept Israeli citizenship.
nous candidate. the world’s deadliest extremist has been added to the site. Twitter thanked Mr. Netanyahu election contest. He went on to On Sunday, Mr. Netanyahu
A recent poll from CID Gallup attacks since Sept. 11, 2001. Mr. Trump “has done things for naming the settlement after win the election in April, but argued that Israel’s control is
Latinoamerica found that nearly The U.S. military has dramat- that should have been done by him, calling it a “great honor.” failed to form a government, legitimate because it conquered
a third of adults surveyed be- ically increased the number of virtue of truth and justice,” Mr. Trump’s statement rec- sending Israel for the first time the territory in a defensive war.
lieve the election will be plagued airstrikes against al-Shabaab in Prime Minister Benjamin Netan- ognizing Israeli control over the into fresh elections that are Some legal experts dispute this,
by fraud. the past couple of years. yahu said at a ceremony for the region emphasized the security scheduled for mid-September. saying no territory can be ac-
n-
—Associated Press —Associated Press new settlement. “The Golan was threats Israel faces, notably The Israeli-controlled por- quired by war.
FROM PAGE ONE

no
and orange safety vests and

Fly Swarm other gear for workers. Its va-
JENN ACKERMAN FOR THE WALL STREET JOURNAL
nilla and lemongrass scents

are meant to repel the flies—
Bugs the one person said it smelled like
cake.
Midwest The store had been selling

100 bottles of the bug spray a SAVE
day, but supplies are now
tight. On Wednesday, Lisa Ol-
$170
Continued from Page One son, 50, of Eden Prairie, de-
The bugs are an annoyance cided to buy one of the last 18
every summer, but this year
the bloodthirsty hordes have
driven people to find creative
bottles for herself.
Ms. Olson has been mixing
her own concoction of citro-
TOP
12
ways to fight back. Some have Larvicide is pumped into the Minnesota River to control flies. nella with a variety oils that
taken to stuffing laundry dryer she puts in a small spray bot-
sheets in their clothing, saying ment—a naturally occurring the bad news: “I don’t know tle to mist herself and her
the scent fends off the bugs. soil bacteria—ineffective by how to tell you this, but all clothes.
Kevin Kvistad, 60, of Burns- diluting it and carrying it be- your chickens are dead.” Freda Sojka, who owns the
ville, pours vanilla extract into yond rivers into woods and The swarming insects had company that makes Bug
his palms and then rubs his fields. suffocated them by blocking Soother in Columbus Junction,
hands around his head and Traps on the Minnesota their airways, said Ms. Berg, Iowa, said her business is up
neck before venturing outside. River outside Minneapolis-St. 42. She said she bought five 10 times over last year. “It
On a recent day, Mr. Kvistad, Paul that are used to count new chickens and is keeping a just blew up on us,” she said.
who uses a wheelchair, and study the flies normally fan running in the coop to At a playground in Shako- Wines You
wheeled himself down a street
toward a car-repair shop
collect up to a couple hundred
black flies overnight. These
keep the black flies at bay.
Katie McMahon, 37, said her
pee next to the river, groups
of children and their parents
Need to Try
where a 1928 Model A Ford he days they have been bulging mother braided dryer sheets played while sunlight glinted
owns was getting a tune up. with fly carcasses. Gnats are and tree-shaped vanilla- off the water. Plus
“They’re horrible,” he said of attracted to the carbon dioxide scented car air fresheners into Most ignored the clouds of
the flies, which he believes given off by a chunk of dry ice the mane of her horse Panda. gnats. But Lindsey Brown 3 BONUS Bottles
hate the smell of vanilla. “You and get trapped in a bag. At River Valley Ranch in lasted for just 15 minutes be-
do this a lot as soon as you A single trap caught nearby Carver, the horse Scout fore she ran to her father’s car
step outside,” he added, swat- 127,000 black flies one night wore a black veil-like mask. As to wait inside while her
ting at the air around his recently in Jordan, where the the lead horse on hourlong friends played.
head. Harrisons and about 6,000 rides through the woods, Her father Todd Brown,
Floods kept officials from other humans are vastly out- Scout was attracting the most who works as a pit boss at the
treating rivers with larvicide numbered by gnats. gnats and had started rubbing Mystic Lake Casino, in Prior
in May, allowing the black fly Molly Berg and her husband herself and her rider up Lake, where the family lives,
population to explode, said Mr. went on vacation last week against trees, said trail guide said the gnats bother him too.
Walz of the mosquito control and avoided the gnats. But the Lizzie Bendel. “I’m from Brooklyn, and we
district, which covers nine four chickens in their back- A bug repellent called Bug don’t have this kind of prob-
counties with half the state’s
population. The high water
yard weren’t so fortunate. She
said a neighbor called her
Soother has been flying off the
shelves at a store in Belle
lem,” said Mr. Brown. “Gnats
flying up your nose. This is Go to wsjwine.com/now 2WSJW1907
would have made the treat- while she was gone to deliver Plaine that sells bright yellow just gross.”
A10 | Monday, June 17, 2019 * ***** THE WALL STREET JOURNAL.
WORLD NEWS
Marchers Demand Hong Kong Leader Quit

As turnout broadens, “students aren’t violent” and
“don’t kill us.” At least 80 inju-
protests could spill ries were reported from
over into other Wednesday’s clash, with a few
people requiring hospitalization.
problems for Beijing Resistance to the bill reig-
nited the opposition move-
HONG KONG—Protesters ment after a series of moves
poured into this city’s streets over the past two years to si-
for a second Sunday despite lence opposition and erode
the suspension of a controver- Hong Kong’s liberties. The pro-
sial bill to expand the govern- democracy camp was fractured
ment’s extradition powers, as and, many thought, broken.
HECTOR RETAMAL/AGENCE FRANCE-PRESSE/GETTY IMAGES

a week of demonstrations ap- “A generation that had been
peared to be spiraling into a written off has spoken,” said
broader political movement. Jason Y. Ng, convener of the
Progressive Lawyers Group and
By Natasha Khan, author of several books on the
Joyu Wang political development of Hong
and Wenxin Fan Kong. “People won’t take things
lying down anymore when their
The turnout, which organiz- freedoms are being threatened.”
ers estimated at nearly two While Wednesday’s demon-
million, was the third mass strations degenerated into bat-
demonstration in eight days. It tles between police and pro-
was a rejection of a partial testers—an unusual scene in
walkback by Hong Kong Chief Hong Kong—Sunday’s march
Executive Carrie Lam, who a was peaceful and orderly, even
day earlier indefinitely sus- Thousands of black-clad protesters in Hong Kong on Sunday allowed an ambulance to pass during a rally against the extradition bill. though it was far larger.
pended work on the bill, which The bill they were protest-
would allow suspects to be have grown into a mass defense a series of smaller-scale events peaceful rally against the bill by mile. Protesters wore black T- ing would allow suspected
sent to mainland China for of Hong Kong’s identity and the planned for Monday, including as many as a million people on shirts to express outrage at criminals to be taken across
trial, but stopped short of legal autonomy that preserves strikes and a boycott of classes. June 9. On Saturday, a man fell the police response on the border to mainland China,
scrapping the proposal. Police its culture and freedoms from “The scale of the turnout is to his death after attaching a Wednesday, as well as at Mrs. to stand trial in its more
estimated that 338,000 people those of mainland China. stunning. This is historic,” banner protesting the extradi- Lam, organizers said. opaque judicial system, which
had followed the official pro- Seven hours into the march, said Antony Dapiran, a lawyer tion bill to a scaffold at Pacific They also called for an apol- many see as an encroachment
cession path. Mrs. Lam apologized to the and author of a book on dis- Place mall, near the legislature. ogy from the police, who they on the legal and political au-
Protesters chanted for the Hong Kong people for mishan- sent in the city. “This is Hong Sunday’s protests were say used a disproportionate tonomy granted Hong Kong
bill to be withdrawn and Mrs. dling the bill. She promised to Kong coming out peacefully broad, with students joined by amount of force to control under an arrangement known
Lam to step down. accept criticism with sincerity and en masse to give their re- families pushing children in crowds on Wednesday, and for as “one country, two systems.”
The turmoil has thrown and humility, and reiterated sponse to what Lam had to say strollers and elderly in wheel- those arrested in connection Mrs. Lam’s announcements
Hong Kong governance into cri- that there was no timeline for yesterday. They’re saying: No.” chairs. Shouts of “Withdraw!” with Wednesday’s protests not represent a rare concession.
.
sis and threatens to spill over discussion of the controversial The march followed a week and “Step down!” rang on for to be prosecuted. Despite having previously ex-
ly
into problems for China’s cen- bill to restart. But she didn’t of sporadic protests, including hours as protesters marched Others chanted, “No riot. pressed support for the bill,
tral government in Beijing, say she would withdraw the a day of clashes on Wednesday, and could be heard in nearby Only tyranny,” objecting to the Chinese officials said the city’s
which endorsed the proposal bill or step down. That didn’t when police fired tear gas and skyscrapers and residential city’s classification of Wednes- government had proposed the
but had largely tried to distance placate march organizers, who onrubber bullets at demonstra- buildings. Participants clogged day’s demonstration as a riot. law independently, a view Mrs.
itself from it. Fears over the law encouraged supporters to join tors, and a massive but largely major streets for more than a People held placards saying Lam repeated on Saturday.
Rally Keeps businessmen who she usually pects are presumed innocent
us l,
counted on as allies. While and entitled to trials that

Hong Kong has periodically meet international standards
Pressure
al a
e
tussled with Beijing over the of fairness.
boundaries of its political and Mr. Lee, the lawyer, trav-
legal autonomy over the years, eled to Washington, D.C. to
ci on
On Beijing this time was different.

Facing the most widespread
public backlash in 22 years of
raise the alarm. Mr. Lee met
Mr. Pompeo.
Soon, U.S. congressmen and
Chinese rule, Mrs. Lam trav- British politicians issued more
Continued from Page One eled across the border to warnings that the bill was a
er rs
bill, and on Sunday she apolo- Shenzhen on Friday to meet threat to Hong Kong’s status.
gized for mishandling it. The with mainland Chinese offi- In a June 5 meeting with the
bill would have allowed extra- cials. She returned with a plan heads of international busi-
ditions to mainland China for to try to restore order, while ness groups who aired griev-
m e
trial in its more opaque justice saving face. ances over the bill, Mrs. Lam
system. The abrupt about-face Suspending the bill, rather told them that they didn’t un-
wasn’t enough to satisfy the than withdrawing it, allows derstand the law and what it
m rp
black-clad protesters, who China’s government to charac- meant, according to a person

shut down major city streets, terize the protests in Hong present.
demanding Mrs. Lam perma- Kong as a result of miscommu- By the end of April, a march
nently shelve the plan and re- nication and foreign incite- against the bill attracted
sign. ment, rather than misguided 130,000 people, organizers
co Fo
Beijing is seeking to project policy-making. China’s Foreign said, the most in recent years
an image of strength and sta- Ministry and state media have Demonstrators poured into the streets of Hong Kong over a proposed bill they feared would give and signaling a tipping point
bility as it grapples with an repeatedly accused the U.S. Beijing too much power; below, Hong Kong’s leader, Carrie Lam, left, with China’s President Xi. in public sentiment. Mrs. Lam
economic slowdown and a bit- and other Western govern- interpreted the modest turn-
ter trade conflict with the U.S. ments of meddling in Hong detaining booksellers and a out as a sign she could press
FROM TOP: LAUREL CHOR FOR THE WALL STREET JOURNAL; ALEKSANDAR PLAVEVSKI/EPA/SHUTTERSTOCK
U.S. Secretary of State Mike Kong affairs. businessman from the terri- ahead, a person familiar with
Pompeo said Sunday that The bill rejuvenated dissent tory—moves indicating that her thinking said.
President Donald Trump might in a society that was divided mainland officials felt they An umbrella opposition
raise the Hong Kong issue and demoralized after a failed could act in Beijing’s interests group called a mass march for
with President Xi at the G-20 mass street occupation de- without serious impediment, June 9; thousands used social
meeting later this month. manding greater democracy the people say. media and more secure chan-
China has drawn interna- from Beijing in 2014. In February, after the nels such as Telegram to mo-
tional outcry over its Muslim “This case shows that Hong amendments to the bill were bilize. Protesters waved plac-
crackdown in Xinjiang and Kong society has developed introduced, the public was ards: “It’ll be Game Over for
n-
criticism of its “One Belt, One strong defenses against direct given 20 days to respond, Hong Kong!” and “We’ve Been
Road” development program attacks on its existing free- much less than is typical. Betrayed.”
as a “debt trap.” It is also un- doms by Beijing, and Beijing By early March, the gov- Mrs. Lam was undaunted.
der attack from U.S. officials has not found a way to take ernment had received 4,500 The mostly pro-Beijing legisla-
no
who accuse China’s telecom- existing rights away without responses, including objec- ture had set the bill on a fast
munications giant Huawei of risking large scale turmoil and tions from normally loyal track to start debate on
being a tool of the govern- bloodshed,” said Ho-fung business groups. Some local Wednesday, June 12, aiming to
ment. Hung, a professor of political businessmen were privately wrap up a vote by June 20.
Mrs. Lam’s “willingness to economy at Johns Hopkins concerned that their past With protesters swarming
step backwards suggests that University. mainland activities, such as government offices Wednes-
Beijing never wanted this George Magnus, author of gift-giving, tax evasion or day, legislators postponed the
problem, that it hurts their the book “Red Flags: Why Xi’s outright bribery when such debate and police later moved
bigger issues” such as U.S. China Is in Jeopardy” and a activities were common, may in, raining down tear gas and
trade negotiations and rela- research associate at Oxford land them in trouble. The firing rubber bullets.
tions with Taiwan, said David University’s China Centre, said government cut a number of Mrs. Lam issued a state-
Zweig, Director of Transna- that perhaps Beijing didn’t economic crimes from the list ment by video calling for calm.
tional China Consulting Lim- want to go to the G-20 summit to pacify them. Privately, she was up late, in
ited. later this month with a major Still, pro-democracy legisla- touch with her advisers
Upheaval in Hong Kong— social and political eruption in she’s been accustomed to fol- friend’s credit card, and it was tors seized on the law, which through the night, associates
long a key to China’s trade and Hong Kong. lowing her own instincts. important to push the bill they saw as China breaking its say.
business with the West—could “They have handed tempo- The extradition issue be- through before his release, of- promise to give Hong Kong le- Mrs. Lam canceled public
seriously set back its long- rary propaganda and political came a priority after a crime ficials have said. gal autonomy until 2047. appearances, including a long-
term goal of fully incorporat- kudos to the dissenters,” he that occurred more than a Citing that, Mrs. Lam’s ad- On May 9, when Mrs. Lam scheduled interview at a Wall
ing the city without setting off said. Still, “you’d have to be year ago, when a Hong Kong ministration made a series of gave a speech explaining the Street Journal tech conference
civil unrest, and potentially naively optimistic to think this man traveled to Taiwan with decisions that further in- bill to lawmakers, opposition in Hong Kong. By Friday, al-
risk inspiring similar actions is the endgame.” his pregnant girlfriend and al- flamed people: she skipped the members interrupted her. A most all pro-government
in mainland China. President Beijing had anointed Mrs. legedly strangled her there. usual public consultation, fast- pro-democracy leader, Claudia voices all had the same mes-
Xi’s goal of reintegrating Tai- Lam, 62, to build bridges with Dumping her body in a pink tracked the legislation bypass- Mo, slammed her hands on the sage: there was a need to calm
wan into the mainland has the public, after her unpopular suitcase in bushes, he fled ing a lawmaker scrutiny com- table and proclaimed, “Liar! things down. By Saturday af-
also suffered a setback. predecessor was tarnished by back to Hong Kong, where au- mittee and repeatedly brushed You’re a liar!” before being ternoon, Mrs. Lam said she’d
Mrs. Lam, a 39-year civil his role in quashing the 2014 thorities were at a loss on kicked out of the meeting. suspend the bill indefinitely.
servant, has said she initiated protests. Mrs. Lam, who was what to do. They couldn’t send An extradition clause was Still, she didn’t back down
the bill herself after receiving deputy back then, had previ- him back to Taiwan to face deliberately left out of a con- completely, insisting the extra-
emotional letters from a ously run social welfare in the trial because there is no extra-
“Beijing never stitutional agreement govern- dition bill was needed to stop
woman whose daughter was city and was seen to be a more dition agreement between the wanted this ing Hong Kong because the le- the city becoming a safe haven
murdered in Taiwan. The sus- sympathetic character to the two jurisdictions. gal systems were deemed too for fugitives. She blamed pub-
pect fled to Hong Kong, which public. When taking office, she After receiving five letters
problem...it hurts far apart, according to Martin lic outrage on the government
doesn’t have an extradition pledged to heal social divi- from the victim’s mother, Mrs. their bigger issues.” Lee, a lawyer involved in nego- failing to explain it.
treaty with Taiwan. sions. Lam has said felt she had to tiations of the handover treaty Mrs. Lam ended the week
Mrs. Lam was also trying to People who work closely take action. Early in the year, between China and the U.K. with none of her goals
fulfill a long-held wish from with her describe her as force- she sat down at a weekly China has a secretive, con- achieved, her relations with
her political bosses in Beijing, ful and stubborn, a workaholic meeting at her harborfront of- aside criticism of the bill. viction-loaded justice system Hong Kong’s people shattered
who had for years wanted an who sleeps only a few hours a fices, and told her advisers she People in Beijing briefed on that differs in almost every and an anxious Beijing looking
extradition arrangement with night, determined to push wanted to change the law to the matter say that while Chi- way from Hong Kong’s com- over her shoulder. Colleagues
Hong Kong. The city’s West- through her agenda. Traveling enable the man’s extradition nese officials embraced the mon law system, developed say the bill won’t return until
ern-style justice system is fire- around the city in a black seas soon as July. idea of closer extradition co- on the British model. Chinese at least later next year, possi-
walled from China’s. dan with only the region’s As Mrs. Lam tells it, time operation, judicial and law-en- officials also have a history of bly never.
In combining the two is- bauhinia flower emblem as the was of the essence. The ac- forcement authorities hadn’t using its courts as a tool The alleged murderer could
sues, Mrs. Lam underesti- license plate, she is known as cused murderer was held by regarded it as a priority. Chi- against political dissidents, as walk free as soon as this fall.
mated how deep-rooted dis- a dedicated civil servant with Hong Kong authorities on nese authorities have in the well as for mistreating sus- —Wenxin Fan and
trust was of Beijing among a stern and can-do manner, money laundering charges for past circumvented Hong pects and denying access to Chun Han Wong
ordinary people, and even while some have said that allegedly using his slain girl- Kong’s judicial processes in lawyers. In Hong Kong, sus- contributed to this story.
THE WALL STREET JOURNAL. * * NY Monday, June 17, 2019 | A10A
GREATER NEW YORK

Subways to Get a Retail Revamp
STATE STREET
By Jimmy Vielkind
MTA wants local and Rockefeller Center covering

5,000 square feet of retail
Leaders
national brands to offer
shopping, food and
space in the third quarter of
this year. About 61,000 riders
swipe in at that station each
Seal Deal
drink at transit hubs
BY PAUL BERGER
weekday.
In the first quarter of 2020,
the MTA will seek a master
Without
Subway riders may soon be
able to grab a third-wave cof-
lease at Times Square-42nd
Street for three units on a re-
tail concourse totaling about
Governor
fee or a craft beer at some of 2,400 square feet, as well as The “Won-
AGATON STROM FOR THE WALL STREET JOURNAL
New York City’s busiest sta- nine newsstands on platforms, der Twins”
tions as part of a plan to re- mezzanines, and passageways. have finally
vamp dozens of subterranean MTA real estate generates struck.
retail spaces. $110 million in gross revenue After five
The Metropolitan Transpor- annually, excluding advertising months of
tation Authority is seeking re- and development fees, accord- tension, Senate Majority
quests for firms to take over ing to MTA officials. Leader Andrea Stewart-
master leases at three transit About $30 million of that Cousins and Assembly
hubs in Manhattan covering figure is generated by non-re- Speaker Carl Heastie did an
dozens of retail units spanning tail revenue, such as parking end-run around Gov. Andrew
more than 16,000 square feet. at suburban commuter rail Cuomo to craft a sweeping
The MTA, in its May request stations. Retail accounts for rent-regulation bill that was
for master-lease proposals at Officials hope to emulate the success of the Turnstyle Underground Market near Columbus Circle. the remaining $80 million, approved last week.
the first hub, the station at MTA officials say, with about The two Democratic legis-
42nd Street Port Authority Bus late the successes of Grand complex of passageways and ing options. $40 million generated at lative leaders (and, yes, they
Terminal, seeks a mix of local Central Terminal, which has a staircases. Workers at several subway Grand Central Terminal. do call themselves the Won-
and national brands, providing range of stores, bars and res- In preparation for the over- newsstands declined to com- The revenue supports a sliver der Twins) said on June 5
retail, food and drink. Over the taurants, and the Turnstyle haul of the mezzanine below ment. Max Bookman, a lawyer of the transit authority’s $17 bil- they were ready to work with
coming nine months, the MTA Underground Market, a retail- the Port Authority Bus Termi- who represents the New York lion budget. Mr. Lieber said that Mr. Cuomo on the bill, but he
will request proposals for mas- and-food space that developers nal, the MTA began shifting City Newsstand Operators As- although the MTA expects to in- declined to engage. Instead,
ter leases at 47th-50th Streets created in an unused corridor leaseholders to month-to- sociation, an association of crease revenue through the new he questioned whether Ms.
Rockefeller Center and Times leading to the 59th Street-Co- month contracts two years sidewalk newsstands that leases, the onus will be just as Stewart-Cousins could get
Square-42nd Street stations. lumbus Circle subway station. ago. The station has 18 retail doesn’t include subway retail- much on improving the cus- the votes for any rent mea-
Janno Lieber, the author- The three master leases units covering 8,800 square ers, acknowledged that news- tomer experience. sure that would satisfy a vo-
ity’s chief development officer, present a greater challenge feet, ranging in size from 150 stands are struggling. “With Nikki Draak, an office ad- cal cadre of tenant activists.
said in a recent interview that than Turnstyle, which is on square feet to 1,700 square that said, the ability to grab a ministrator who regularly She said there was support
he would like to see more in- the periphery of Columbus feet. Over the past couple of bottle of water, a quick snack or shops at Backwoods, a discount for a list of bills blessed by
dependent, local stores and Circle. years, a barber shop, florist a pack of tissues in less than a fashion store at the 42nd Street the tenant groups, even
.
upmarket options, rather than Each weekday, about and clothing store have moved New York minute will never go Port Authority Bus Terminal though moderate members of
ly
the businesses that dominate a 100,000 riders swipe in at the out. A few stores, including a out of style in this city,” he said. mezzanine, said she would hate her conference weren’t ready
“run-of-the-mill, midrange, station below Port Authority newsstand, are holding on. Proposals for the master to see the store go. “The prices to embrace the legislation.
suburban shopping center.“ Bus Terminal, crowding the David Florio, the MTA’s di- lease below the bus terminal are amazing, it’s got great Mr. Cuomo couldn’t let this
“Not just Starbucks,” said mezzanine corridor during on rector of real-estate transac- are due by early September. Mr. pieces of jewelry and it’s been point go. On Tuesday, the
Mr. Lieber, standing on the low- peak hours. Another 100,000 tions and operations, said Florio said riders should expect there forever,” she said. Democratic governor’s top
ceilinged mezzanine at the 42nd riders swipe in daily at the newsstands have been in de- the new stores to be open by But she wouldn’t mind if aide, Melissa DeRosa, said
Street Port Authority Bus Ter- Times Square-42nd Street sta- cline for years. Spaces at some spring 2021 at the latest. the other retail spaces offered “somebody has to call their
minal station, but also “maybe a tion. Commuters from both of the larger newsstands could The MTA will seek propos- better amenities. “I would def- bluff,” referring to the Senate.
us l,
more New York coffee place.” stations stream toward each be better used, he said, by of- als for the master lease for initely take a coffee shop,“ she It turns out Ms. Stewart-
MTA officials hope to emu- other through a warren-like fering more dining and drink- nine units at 47-50 Streets said. Cousins wasn’t bluffing.
al a
e
When that became clear on
Wednesday, the governor of-
For This School, New Math Curriculum Counts

fered only the barest of
ci on
praise for the rent bill while

saying he would sign it.
He then initiated a confer-
BY LESLIE BRODY ence call with major devel-
opers, including Bill Rudin,
er rs
Teachers at a small elemen- Richard LeFrak and other ex-

tary school in Queens say their ecutive board members of
success with a nonprofit’s the Real Estate Board of New
highly rated math program York. Real-estate executives
m e
shows just how much picking had been hoping Mr. Cuomo
the right curriculum counts. would be a moderating force
At P.S. 38 Rosedale, teachers on the rent bill.
m rp
say students’ enthusiasm and A person on the call said

skills have grown since starting developers expressed their
Eureka Math in the fall of 2016.
About 73% of its third-graders
passed state tests last spring,
Democrats, in control
co Fo
up from 30% three years ago.

Many still struggle academi- of both houses, are able
cally, but the improvement is
noteworthy, as most city stu-
to flesh out the details
dents lag behind expectations in of their own bills.
math. Nearly all children at the
school, which sits near John F.
SARAH BLESENER FOR THE WALL STREET JOURNAL
Kennedy International Airport,

are black or Hispanic. About half frustration about how things
face economic hardship. had played out, and Mr.
While a range of factors af- Cuomo tried to deflect blame
fect achievement, especially to the Legislature.
teacher quality, P.S. 38’s faculty During his news conference,
gives generous credit to their Mr. Cuomo said getting boxed
n-
new math program. “The cur- out on the rent regulations

riculum is very rigorous and was no big deal because legis-
thorough, and develops stu- lators often work together on
dents’ number sense,” said bills without his input.
no
principal Julia Soussis. “They But never on something

didn’t learn by rote.” this big. For the first eight
Great Minds, a nonprofit Teachers at P.S. 38 say students’ enthusiasm and skills have grown since the Queens school started using Eureka Math in fall 2016. years of his tenure, when
publisher, created Eureka Math there was a partisan split
in a contract with the New spokesman for the nonprofit One morning last month at tary grades, enVisionmath 2.0, logical sequence, and nudged between the Democratic-
York State Education Depart- said more than 1,800 districts P.S. 38, third-graders used rulers saying it doesn’t focus enough children to figure out how to dominated Assembly and Re-
ment in 2013, when teachers and schools nationwide have they made to measure straws, on conveying concepts underly- tackle problems, rather than publican-controlled Senate,
nationwide needed curricula to bought Eureka. Revenue for the practice fractions and create ing math. Its publisher and de- rely on teachers to tell them Mr. Cuomo played the part
match new academic standards math program topped $78 mil- charts. partment officials call it a what to do. Its teacher guides of a Solomonic deal maker.
adopted by most states. lion last year, up from $9 mil- In a fourth-grade classroom, strong option with translations were also helpful, they said, es- Disparate issues were cob-
Its lessons are available free lion six years ago. students were converting frac- in many languages. pecially for staff without math bled together into omnibus
for teachers anywhere from the Eureka gets high marks from tions on a ruler marked with Eureka’s good reviews from backgrounds. bills or stuffed into state
department’s EdReports.org, an independent meters into decimals. Ten-year- EdReports.org influenced teach- Jill Diniz, chief academic of- budget legislation. Mr.
EngageNY website. The site nonprofit that reviews curri- old Aubree Davis said this lesson ers at P.S. 38, who tried it with ficer for math at Great Minds, Cuomo was a key to the pro-
had five million users and 17 cula. The organization says was her favorite. “I wanted to one third-grade class in the fall said Eureka’s success lies in us- cess for all major legislation,
million downloads of math cur- teaching materials available na- know how money works,” she of 2016 before spreading it to all ing a good balance of written and he wielded his bully pul-
ricula last year, by state data. tionwide have improved in re- said. “Meters aren’t in money third- and fourth-graders in the symbols and pictures, blocks or pit to push forward the is-
Many teachers tap its materials cent years, but only 23% of but decimals are.” fall of 2017. Last spring 50% of other objects. sues of his choice.
to supplement other programs. those used regularly by U.S. In New York City, principals its fourth-graders passed state She said children learn sev- But with Democrats in
Some schools found it costly math teachers are aligned with are free to choose curricula, tests in math, up from 30% the eral strategies for attacking control of both houses,
and cumbersome to print out what children should learn at but get discounts for using the year before. Now its fifth-grad- each problem so they can pick they’re able to flesh out the
free lessons, so they started each grade. “We can and must department’s favorite. Some ers use it, too. the most efficient tool. “You’re details of their own bills, on
buying workbooks and other do better,” the group said in a teachers object to the district’s Teachers said Eureka’s les- not going to butter your toast policies Mr. Cuomo says he
resources from Great Minds. A May report. new core offering for elemen- sons built on each other in a with a chain saw,” she said. supports, and dare the gover-
nor to sign them or not.
Some advocates of legalizing
Bill Would Grant Driver’s Licenses to Illegal Immigrants recreational marijuana were
speaking openly of working
around the governor. Lobby-
ists pushing other issues are
BY ACACIA CORONADO driving illegally will get insur- that are ill and can’t get them to according to estimates from Nick Langworthy, urged upstate also pondering the same
ance and training. One of the medical appointments,” Mr. the city comptroller’s office. It and suburban Democratic sena- strategy.
New York’s Democratic-con- bill’s co-sponsors, Sen. Luis Sepúlveda said. “That is a terri- would bring an estimated $34 tors to vote against it. Ms. Stewart-Cousins said
trolled Senate will vote this Sepúlveda, a Bronx Democrat, ble way to live for people who million in recurring annual rev- Legislation allowing undoc- Friday that Mr. Cuomo
week on a bill that would give said it has built-in precautions contribute a lot to this country.” enue and $15 million in one- umented immigrants to obtain hadn’t spoken with her since
illegal immigrants in the state because the licenses would be Before 9/11, all New York res- time revenue, the office said. driver’s licenses already exists the rent bill was unveiled.
the ability to apply for a clearly marked as drive-only. idents could apply for a driver’s “Our state and city will gain in 12 other states, including She said she would engage
driver’s license. The names of license hold- license. A 2002 executive order millions of dollars in revenue— Connecticut. with him on some issues, but
The so-called Green Light ers and applicants’ personal by then Gov. George Pataki re- including for the [Metropolitan Jose, who asked that his last might not on others.
bill passed the Democratic-led information wouldn’t be acces- quired applicants to provide a Transportation Authority]— name not be used because of his “The Legislature is a sepa-
Assembly on Wednesday in a sible to authorities, such as Social Security number. and it will lower insurance pre- immigration status, drove unli- rate branch, it’s an equal
87-61 vote, largely along party U.S. Immigration and Customs The liberal think tank Fiscal miums for every driver across censed for years before Con- branch, and so it really is
lines. Gov. Andrew Cuomo, a Enforcement agents, unless Policy Institute estimates the state,” said New York City necticut’s program. As the sole our responsibility to come to
Democrat, has said he would subpoenaed as part of a crimi- about 265,000 undocumented Comptroller Scott Stringer. provider for his family, he said, agreements—especially when
sign it if passes. nal investigation into the user. immigrants would be eligible The state’s Republican Party not driving wasn’t an option. we want bills to get done,”
The bill’s supporters say it “I have visited throughout for a license across the state. In opposes the bill, saying it would “It was indispensable to Ms. Stewart-Cousins said.
is a matter of fairness and the state families that are un- New York City, about 150,000 create security concerns. The have a car,” Jose said. “It was
safety, because people already documented that have children would have access to a license, state GOP’s incoming chairman, a necessity, not a luxury.” jimmy.vielkind@wsj.com
A10B | Monday, June 17, 2019 NY * * THE WALL STREET JOURNAL.
GREATER NEW YORK
GREATER NEW
YORK WATCH
MEASLES OUTBREAK
Vaccines Mandated
For Summer Campers
Summer camp is the newest
front in the battle to contain the
worst U.S. measles outbreak in
nearly three decades
Vaccinations are being man-
dated this summer for campers
and staff in several counties north
of New York City that annually fill
up with kids from the Orthodox
Jewish communities that have
been hit hardest by measles.
The state eliminated the reli-
gious exemption Thursday to
vaccine requirements for school-
children. Even before that, individ-
ual counties mandated the mea-
sles vaccine or proof of immunity
at all day camps and overnight
MATT RENKAS
camps. Ulster County recently an-

nounced a mandate following
similar actions by Rockland, Sulli-
One of the winners of the design competition for the new park area, Buffalo firefighter Matt Renkas, submitted this rendering of a path incorporating steel-mill ladles. van and Orange counties.
Buffalo Revitalization Takes Wing

There have been more than
1,000 measles cases this year in
the U.S. Many are in ultra-Ortho-
dox Jewish neighborhoods in
Brooklyn and Rockland County.
—Associated Press
BY ALEXA ST. JOHN Western New York. tunities, according to the Buf- started working on changing sign aimed to incorporate both
Ms. Smith said the competi- falo Urban Development Corp., the direction of where we’re the city’s Native American QUEENS
A 1.5-mile stretch of the for- tion was inspired by several the city’s development agency. going,” Mr. Kucharski said. roots and industrial history.
mer Delaware, Lackawanna & projects of the High Line Net- Thomas Kucharski, presi- The conservancy’s DL&W “I saw that as a metaphor for Intruder Found Near
Western Railroad is the latest work, an organization pushing dent and CEO of Invest Buffalo Corridor International Design the people who stuck around in Lawmaker’s Office
stop in the city of Buffalo’s cities to repurpose underuti- Niagara, an economic develop- Ideas Competition drew more the community,” said Mr. Ren-
continuing revitalization effort. lized infrastructure as public ment group representing the than 100 submissions. The kas, whose design included as- Authorities have arrested a
The Western New York Land spaces. The High Line, a former eight counties of Western New next phase of the project will pects such as streetlights, water man who they say set off a fire
.
Conservancy on Friday an- elevated freight line on Man- York, said the conservancy’s begin later this summer, with fountains and symbolic animal extinguisher while at a building
ly
nounced five winners of a de- hattan’s West Side that was rail-line project and similar bidders proposing schematic sculptures. “They planted the where Rep. Alexandria Ocasio-Cor-
sign competition to turn the turned into a popular green- designs for the park that in- seeds for this revitalization and tez has one of her district offices.
tract of land along the Buffalo way, is one of the most success- corporate the ideas of the renaissance we’re seeing in Buf- The New York Police Depart-
River into a cohesive park and ful examples of the movement.
The competition is competition submissions. falo right now.” ment said officers responded to a
year-round nature trail. The
winning designs will guide the
The conservancy’s design
competition is just one of sev-
onjust one of several
Kishore Varanasi, an adviser
for the competition and direc-
Winning the second place
jury-selected award was a New
call of a trespasser shortly before
5 p.m. Saturday at the building on
conservancy’s plans to link Ca-
nalside, a waterfront park that
eral continuing community ef-
forts to boost economic growth
continuing efforts to tor of urban planning at CBT, a
design firm based in Boston,
York City-based team com-
prised of architecture firms
37th Avenue in Queens.
They found the man with a
us l,
helped spark the rejuvenation and revitalization in Buffalo, boost economic growth. said it is important for incom- that have worked on several fire extinguisher that he dis-
of Buffalo’s downtown, and the which has worked in the past ing developments to consider statewide revitalization efforts. charged on the same floor where
al a
e
solar-panel factory of Tesla sub- two decades to draw new busi- the needs of surrounding areas. “We didn’t want to create a Ms. Ocasio-Cortez’s office is lo-
sidiary SolarCity, the endpoints nesses, develop affordable “The trail itself is quite traditional linear park,” said cated. The 31-year-old man had a
of this particular project. The housing and provide more em- ones have played a role in his unique in its character, its con- Yadiel Rivera, a landscape ar- broken bottle, and went inside a
ci on
stretch of land also connects ployment opportunities to the work drawing new companies text, its demographics, its chitect at Marvel Architects, utility closet before being taken
three Buffalo neighborhoods. city’s working-class people. and employment opportunities neighborhoods,” he said. “This which was part of the New into custody, police said. He faces
“We want to show that peo- The city saw more than $5.5 to Buffalo, all while remaining is a Rust Belt city that has York City team. “We wanted to charges of menacing, criminal
ple will invest in this neigh- billion in new economic devel- respectful of the communities seen economic challenges.” have something that is more mischief and criminal trespass.
borhood,” said Nancy Smith, opment activity in 2016, largely that already exist. Matt Renkas, a City of Buf- responsive to the neighbor- Police say he didn’t make it
er rs
executive director of the con- due to investment in natural “It really speaks to the way falo firefighter who won the hood and basically respects into Ms. Ocasio-Cortez’s office.
servancy, a nonprofit working areas that inspired new busi- our community came together design competition’s commu- the fact that there’s an exist- She wasn’t there at the time.
to sustain natural areas in nesses and employment oppor- about 20 years ago and nity-choice award, said his de- ing fabric there.” —Associated Press
m e
m rp
co Fo
All the Power

n-
Without the Pinch

no
Healthcare Starts with Healthy Food.
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LIFE&ARTS ART AND AUCTIONS
Meet the Art World’s Rising Stars

Young creators are blending traditional techniques with digital savvy in works that are in demand at museums and auctions
BY KELLY CROW
R
ecent auctions and
a slate of summer
museum shows are
heralding a fresh
generation of art-
ists who are using
traditional materials to build on
the past rather than merely trying
to shock with the new. Gone are
the days when collectors paid pre-
miums at auction for young cre-
ators who rubbed dirt on their
canvases or churned them through
oversize photocopiers. Today’s ris-
ing stars have pivoted back to fig-
urative painting, creating complex
narratives and intricate portraits
that blend painterly technique
with digital savvy.
“This generation is about blur-
ring boundaries, sampling a lot of
ideas and inventing their own lan-
guage,” said Jean-Paul Engelen,
deputy chairman of Phillips auction
house. The artists’ saturated, video-
game palettes also reflect the fact
that most were born in the 1980s or
.
later, so they represent the first
ly
group of contemporary artists to
grow up with computers, Mr. Enge-
len added. “For collectors, they can
conjure more curiosity than looking Nicolas Party on
at another Warhol.” Notable works by young stars of the art world include, clockwise from above,
Some, like Harold Ancart, have Nicolas Party’s ‘Trees’ mural at the Marciano Art Foundation; Avery Singer’s
signaled their ascent by heading to ‘Self-portrait (summer 2018),’ on view at the Venice Biennale; Christina
top-tier galleries that can expand Quarles’s painting ‘Moon (Lez Go Out N’ Feel Tha Nite),’ Jordan Casteel’s
us l,
their potential collector base. Oth- portrait, ‘Patrick and Omari’ and Harold Ancart’s ‘Subliminal Standard,’ a
ers, like Nicolas Party, have honed handball court he built and painted in Cadman Plaza Park in Brooklyn.
al a
e
a style that nods knowingly to an
older, established icon like René
Magritte—an influence that can
ci on
boost a newcomer’s profile by as-

sociation, said David Galperin,
head of Sotheby’s contemporary
evening sales in New York.
Here are five recent additions to
er rs
the auction roster—and where to

see their work this summer:
NICOLAS PARTY
m e
Harold Ancart
Brussels and New York
m rp
The 38-year-old former graffiti

artist still likes to cover the walls
of his shows in playfully naïve
geometric shapes or designs.
Among them, he salts in vivid pas-
co Fo
tels of still lifes and blank-stare

portraits. The artist fell for the
technique after learning some im-
pressionists eschewed it as overtly
feminine, said Barthélémy Schöller,
his dealer at Xavier Hufkens gal-
lery in Brussels, adding, “He’s tak-
ing history and reinventing it.”
Collected by: Nanjing’s Sifang
Art Museum, Zurich’s Migros Mu-
seum of Contemporary Art, Brus-
sels’s Magritte Museum
Auction high: “Landscape,” a
cheery pastel from 2015, sold for
n-
$608,000, quadrupling its high es-

timate, at Phillips last month.
On view: Since May 31, his mu-
ral of Day-Glo “Trees” has been
no
climbing the stairs of the Marciano

Art Foundation in Los Angeles; his
latest gallery show, “Polychrome,” Avery Singer
is also up through Aug. 24 at Glas-
CLOCKWISE FROM TOP: JOSHUA WHITE/MARCIANO ART FOUNDATION; LA BIENNALE DI VENEZIA; PILAR CORRIAS, LONDON/REGEN PROJECTS, LA; CHRISTIE’S; NICHOLAS KNIGHT
gow’s Modern Institute. of the 58th Venice Biennale, “May

You Live in Interesting Times,” up
through Nov. 24. In October, she
CHRISTINA QUARLES will also unveil a new commission
at the Museum Ludwig in Cologne.
Los Angeles
This 34-year-old artist in Los An-
geles is a queer, multiracial woman HAROLD ANCART
often mistaken for white, and her
nuanced identity informs her art.
Brooklyn, N.Y.
She paints androgynous clusters of Jordan Casteel This Brussels native, who is 39,
bodies that appear to stretch to the paints landscapes like a ragged Dr.
edges of their boxy frames, their ex- lery. Her first European solo mu- high estimate, at Christie’s Lon- Seuss with his focus turned to
pressions typically obscured yet seum show opens Oct. 19 at the don three months ago. zoom. He captures corners of
their forms intimate, with fingers Hepworth Wakefield museum in On view: The Denver Art Mu- mountaintops, spear-like flames
often interlaced. Franklin Sirmans, West Yorkshire, England, followed seum is exhibiting her first solo and everyday items like match-
director of the Pérez Art Museum by a major exhibit opening next museum show, “Jordan Casteel: sticks in hues that don’t regularly
Miami, said the tender, cryptic way April at the Museum of Contempo- Returning the Gaze,” featuring 29 occur in nature—but seem totemic
the painter explores identity led his rary Art Chicago. paintings created in the recent as a result. Major New York dealer
museum to give her its Pérez Prize whirlwind years since Ms. Casteel Christina Quarles David Zwirner began co-represent-
in March. “She’s having a conversa- received her master’s in fine arts ing him last fall, a signal the art-
tion about difference and bodies JORDAN CASTEEL in painting and printmaking from tin-man limbs and crinkle-cut curls ist’s star is rising.
and the erotic in the context of the kingmaking Yale School of for hair. Then she surrounds her Collected by: Washington’s Hir-
painting but also in the world right
New York Art. Look for her pair of portraits figures in a floating grid or in a shhorn Museum and Sculpture
now,” Mr. Sirmans said. Born in Denver, this 30-year- of restaurateurs and a food-truck riot of shadows and silhouettes us- Garden, Los Angeles’s Museum of
Collected by: Los Angeles old artist is more closely associ- vendor bought by the Denver mu- ing an airbrush, often in shades of Contemporary Art, New York’s Sol-
County Museum of Art, Tate Mod- ated with Harlem, the New York seum, according to curator Re- gray. omon R. Guggenheim Museum
ern, Minneapolis’s Walker Art Cen- neighborhood where she often becca Hart, who hailed the artist Collected by: Museum of Mod- Auction high: His untitled trip-
ter walks among street vendors and for “thinking about issues of visi- ern Art, Whitney Museum of tych from 2014 sold for $751,500,
Auction high: Phillips broke Ms. laundromats, camera in hand, bility in new ways.” American Art over six times its high estimate, at
Quarles’s record last month by looking for everyday people to The show is up through Aug. Auction high: Sotheby’s esti- Christie’s three years ago.
selling her 2017 work, “Moon (Lez photograph, then paint. Her ex- 18, then it travels to the Iris & B. mated her 2013 work, “Fellow On View: When graffiti artists
Go Out N’ Feel Tha Nite),” for pressive brushwork is reminiscent Gerald Cantor Center for Visual Travelers, Flaming Creatures,” tag handball courts in New York,
$275,000, over its $70,000 high es- of Alice Neel’s. The world she’s Arts at Stanford University, open- would sell between $80,000 and the city sends painters to patch
timate. chronicling is under-represented ing Sept. 29 $120,000 in mid-2018, but the them over, and Mr. Ancart noticed
On view: Her London gallery, in museums, so collectors and cu- house said 11 bidders chased it that the splotchy results often
Pilar Corrias, took her new wall- rators are playing catch up. higher and the winner paid evoke abstracts.
covering installation, “Never Be- Collected by: Crystal Bridges AVERY SINGER $735,000. This urban pas de deux inspired
lieve It’s Not So (Never Believe/ Museum of American Art, Studio On view: Look for her “Self-por- his new commission for Public Art
It’s Not So),” to Art Basel, the Museum in Harlem, Ford Founda-
New York trait (summer 2018)”—painted as Fund, a handball court he built
Swiss art fair that opened June 13. tion Ms. Singer, 31, uses 3-D model- though she is standing behind a and painted in Brooklyn’s Cadman
She also is part of a group show, Auction high: Her 2015 double ing software to compose surreal fogged glass window and pointing Plaza Park. People can play on the
“Kiss My Genders,” that opened portrait, “Patrick and Omari,” interiors seemingly populated by hauntingly at the viewer—and piece, “Subliminal Standard,” until
June 12 at London’s Hayward Gal- sold for $394,000, five times its cardboard puppets or robots with other paintings in the main show next March.
A12 | Monday, June 17, 2019 * **** THE WALL STREET JOURNAL.
LIFE & ARTS

CLOCKWISE FROM TOP LEFT: ESCAPE CAMP; CHRISTOPHER BEAUCHAMP FOR THE WALL STREET JOURNAL (2)
WHAT’S YOUR WORKOUT? | JEN MURPHY
She Finds Fitness Nirvana

At Sleep-Away Camp Hiking is one of Jan Klein’s favorite activities offered at ESCAPE Camp, an
.
adult sports camp at Amherst College in Amherst, Mass. She also enjoys
A week at an adult sports camp sharpens a retiree’s fitness goals
ly
bicycling and archery.
FOR ONE WEEK each summer, The Workout different core exercises. She
Jan Klein channels her inner Camp offers around a dozen ac-
on might be on her back and pass a
child at sleep-away camp. The tivities each day. Ms. Klein tries to stability ball between her hands
big difference: She can pair her do between two and four a day. and feet, then transition to varia-
s’mores with whiskey or wine. She might do a morning stretch- tions of plank pose and crunches.
The 68-year-old retiree has at- and-roll class followed by aqua A power segment could involve
us l,
tended ESCAPE Camp, an adult aerobics and kayak and bike in the tossing a 12-pound medicine ball
sports camp, since 2007. The afternoon. “I like to socialize and against a wall.
al a
e
camp has been held at Amherst relax, too,” she says. Massages She then does three reps of six
College in Amherst, Mass., since aren’t included, but she splurges upper- and lower-body exercises,
2013. and some nights she skips post- like assisted pull-ups or walking
ci on
Like traditional summer camp, dinner activities in favor of drinks lunges with 10-pound dumbbells.
her days are packed with activities with friends. She finishes workouts with a full-
like archery, rock climbing and ca- Over the years, the feedback on body cardio drill. “My trainer
noeing. She can also try fitness-fo- Ms. Klein’s fitness assessment at loves to have me push a 50-pound
cused programs like running clin- sled the length of the gym and
er rs
ics, as well as an optional fitness sprint back,” she says.

assessment, which Ms. Klein al- She’s already noticed more tone
ways signs up for. “At camp, age
She gets to play games in her abs and upper arms and
doesn’t matter, nor does your fit- from childhood and says her legs feel stronger. Her
m e
ness level,” she says. stamina has also improved. “My

Through camp, Ms. Klein dis-
discover new workouts husband and I do a 20-mile bike
covered she loves kayaking and to use year-round. ride on a tandem in Florida and it
m rp
aqua aerobics, but has had a hard was a lot easier this year,” she next. Lunch is a sandwich, or she’ll The Gear and Cost
time finding programs near her says. In the summer, she bikes 12 transform dinner leftovers into a A week at ESCAPE Camp costs
home in Hartford, Conn. After try- to 15 miles, two to three mornings salad, like greens with avocado $1,400, including dorm accommo-
ing yoga for the first time at camp the camp suggested she start a week. About four times a year and salmon. Fruit and cheese dations and meals. Her gym mem-
she now has a regular home prac- weight training. She asked her she and her husband plan longer sticks are her go-to snacks. Ms. bership is covered by the Medi-
co Fo
tice, and started hiking. She daughter, Jordan Klein, who rides, of around 30 miles. Klein and her husband love to care senior-fitness program
doesn’t love it all: Fencing defi- trains in Olympic weightlifting, to She practices meditation for 10 cook and prepare dinner, always a SilverSneakers. A 12-pack of
nitely isn’t her thing. give her a program. “She just to 15 minutes most mornings and protein, vegetable and salad, most semiprivate personal training ses-
Camp also inspired her to dust rolled her eyes and said, ‘Mom, does yoga one to two times a week. nights. Potato chips are her treat. sions works out to $27 per ses-
off her old bike and start riding you need a professional trainer Meals are included at camp. The sion. She spent $1,100 on her two
again. She jokes she can now keep who can monitor you,’ ” she says. The Diet dining hall at Amherst College Trek road bikes. She keeps one at
up with her husband, David Klein, Last September she hired a Ms. Klein lost 10 pounds six sources from its own farm. At her summer home in Narragan-
who takes a weeklong cycling trip trainer through her gym. She sees years ago with the help of Jenny lunch, Ms. Klein piles up her plate sett, R.I.
while she’s at camp. him once a week and works out Craig. “The most important thing I at the salad bar but admits she oc- “I bike enough now that I
“He knows this is something I on her own once a week. learned from the program was to casionally also grabs a slice of bought shorts with a padded
like to do by myself,” she says. She alternates between an A eat something small every three to pepperoni pizza. She says dinner seat and gloves,” she says. She
“It’s nice to have one week for me and B workout every six weeks. four hours so you’re never starv- includes options like beef rendang never rides without a helmet.
to try new things and meet new After a warm-up, her trainer leads ing,” she says. Breakfast might be or chicken tikka masala. She often She pays $79 a year for her med-
friends.” her through three reps of three eggs one day and a grapefruit the indulges with a cup of soft-serve. itation app.
n-
In ‘Euphoria,’ a Dark Take on Teen Drama

no
averaging eight million viewers

BY JOE FLINT
per episode. And the drama “Big
Little Lies” returned to solid rat-
TOWARD THE END of yet an- ings in its season two premiere.
other stint in rehab, a then-19- “Euphoria” portrays a slice of a
year-old Sam Levinson realized generation addicted to cellphones
that if he were to die from drugs and learning about intimacy from
he’d be remembered only as a pill- hardcore pornography, through the
stealing addict who destroyed his eyes of 17-year-old Rue, who is
family. portrayed by former Disney star
It was not the gravestone he Zendaya. The show also throws in
wanted. opioids, ecstasy and copious
“I felt like I’m a better person amounts of weed. In the show, Rue
inside than my actions reflected,” has just returned from rehab with
Mr. Levinson recalled in an inter- no real desire to change despite
view. Then, he said, the moment of the damage her behavior has
FROM LEFT: AXELLE/BAUER-GRIFFIN/GETTY IMAGES; HBO
clarity hit him: “Well, maybe you caused her mother and younger
should stop doing drugs.” sister. She quickly falls back into
Mr. Levinson cleaned up and 15 her old habits until they threaten
years later has used his experience her developing relationship with
as a teen addict to create “Eupho- Jules, a trans girl played by
ria” for HBO, a dark and Hunter Schafer, who engages in
often graphic drama her own risky behavior by meeting
about a group of over- up with strangers online for sex.
sexed and self-medicat- The role pornography plays in
ing suburban high kids’ lives is also a component of
schoolers that pre- “Euphoria.” Mr. Levinson wanted
miered Sunday. to show how the prevalence of
“Euphoria” doesn’t such content shapes perceptions
look like the typical and intimacy for teens.
teen drama. Although Sam Levinson, left, created the new HBO show featuring Zendaya (above, left) and Hunter Schafer. Mr. Bloys said the drama is tar-
there is no shortage of geting adults 18 to 34 and “we’ll
attractive people doing Casey Bloys viewers, it’s an audience some an- Later this year, HBO will debut make that very obvious in the ad-
unattractive things, said other teen alysts say HBO has overlooked. “Watchmen,” based on the graphic visories surrounding the show.”
there is also an under- shows haven’t “One of the things I have tried to novel series. In 2020, shows in the Mr. Levinson is aware that he
tone of lost innocence and numb- done a “bad job” exploring these do since starting over three years works include a drama about a may face criticism that “Euphoria”
ness that recalls the Bret Easton subjects, “it’s just that there are ago was to diversify the slate,” in- family, “The Undoing,” starring Ni- glamorizes dangerous behavior.
Ellis 1985 novel “Less Than Zero” obvious constraints on other plat- cluding reaching more young cole Kidman and Hugh Grant, and “I’m sensitive to portraying addic-
and the Larry Clark film “Kids.” forms that affect how honest you adults, said Mr. Bloys. “The Outsider,” based on the Ste- tion on screen because as someone
Most teen shows today reside in can be.” “Euphoria” is one of several phen King novel. A “Game of who grew up loving film and televi-
hyper-stylized worlds, Mr. “Euphoria” is a departure for new shows HBO is launching as it Thrones” prequel is also in devel- sion, I understand the power that
Levinson said. “Euphoria,” which HBO. While no stranger to contro- enters the post-“Game of Thrones” opment. an image can hold,” said Mr.
also draws from an Israeli series versial and risqué fare, HBO has era. Creating more content is a Although “Thrones” may be im- Levinson, whose father is acclaimed
of the same name, is grittier than primarily steered clear of young priority for HBO parent AT&T, possible to replace, HBO has director Barry Levinson. “Eupho-
what’s seen in a majority of films adult-themed content. But with which is launching a direct-to-con- notched successes since last ria,” he added, “is not about the
and TV shows about high school, programs such as Netflix’s “13 sumer streaming service next year month’s finale. The miniseries glamorizing of something, it’s about
he added. Reasons Why” and the CW Net- and using the premium channel’s “Chernobyl” about the 1986 Soviet how addiction wrecks your sense of
HBO Programming President work’s “Riverdale” resonating with programming as the centerpiece. nuclear disaster was a surprise hit, life and self-worth.”
LIFE & ARTS
ART REVIEW
Wondrous Records of Animal Lore

Bestiaries—brilliantly illustrated compendiums of real and fantastic creatures—take center stage at the Getty’s new exhibition
So that is where the J. Ashmole Bestiary (c. 1210-20) hippopotamus. tors play with the pictures, beautiful, finely detailed
BY JUDITH H.
Paul Getty Museum has cho- opened to a unicorn page. In one French bestiary drawing animals that make painting “A Hare in the For-
DOBRZYNSKI
sen to begin its exhibition But the unicorn gambit (c. 1270), a calm, blue eye contact with one an- est” (c. 1585); Picasso’s
“Book of Beasts: The Besti- was hardly necessary. whale—which, like the one other or slither through a aquatint “Eagle” (1936) in a
Los Angeles ary in the Medieval World.” Plenty of other fascinating that swallowed Jonah, page of text. In the Salva- French natural history
IN THE PAST several years, The first gallery is filled wild beasts—both real (ti- sometimes symbolizes the torberg Bestiary (c. 1375- book; and Walton Ford’s
unicorns have become ubiq- with such items as a German gers, antelopes, pelicans) devil—contrasts with the 1400), a lynx seems to stick forbidding “Grifo de Cali-
uitous. Evoking radiant rain- parade saddle made of bone and imaginary (griffins, crazed seamen on its back: out its tongue at the griffin fornia” (2017), a large
bows and beguiling dreams, and carved with a unicorn dragons, bonnacons)—run The painter captures the and elephant on the oppo- gouache/watercolor that re-
these elusive and magical (c. 1450); a fine linen em- rampant through the galler- site page, the label sug- places the traditional griffin
beings have been used to broidery of a unicorn hunt ies. Curated by Elizabeth gests. With such enchanting hybrid of lion and eagle
sell cuddly toys, movies, (c. 1370-1400), also from Morrison with Larisa Groll- images, there’s little won- with a locally appropriate
The artists probably
.
makeup, pajamas, video- Germany; and a Swiss tapes- emond and said to be the der that these books have mix of California condor
ly
games and high-tech compa- try (c. 1480) with a unicorn first major museum exhibi- never saw most of worn and soiled edges: and cougar.
nies with aspirations of as a central character—as tion on bestiaries, “Book of Among the wealthy, literate “Book of Beasts” demon-
grandeur. well as the richly decorated Beasts” presents, along
the animals they classes, they were prized strates well how an esoteric
with more than 30 medieval
on were drawing so used for both religious and en- subject can appeal to the
bestiaries, about 100 other tertainment value. general public without
manuscripts and objects in-
their imagination Bestiaries, popular stooping to conquer, with-
spired by them, including mostly in Northern Europe, out losing its scholarly ap-
several contemporary art- started fading out after proach. It shows the besti-
us l,
works in the final gallery. It about 1300, subsumed into ary to be a wondrous thing.
offers some surprises for very moment those sailors broader natural history
al a
e
pop culture devotees of the realized they had landed texts and encyclopedias.
unicorn (and the rest of us, their ship on the whale, not But their fantastic imagery Book of Beasts: The Besti-
too) and explains how these an island. But if the Ash- lived on. Their wide and ary in the Medieval World
ci on
engaging books have af- mole bestiary were open to lasting impact is here mani- The J. Paul Getty Museum,
fected common conceptions its whale page—the Getty fest in an Islamic water ves- through Aug. 18
even today. has provided a copy of the sel in the form of a cheetah
Bestiaries were like ani- image—visitors would see a (c. 1000-1300); a Scottish Ms. Dobrzynski writes about
mal encyclopedias, but with bold, far more stylized gray book about heraldic images the arts for The Wall Street
er rs
a higher purpose: Created whale swallowing a man. called “Deeds of Armory” Journal and other
by inventive artists and Sometimes the illustra- (c. 1494); Hans Hoffmann’s publications.
scribes, they were intended
to enkindle in readers awe
m e
for the natural world and to

impart religious stories and
moral allegories. Those uni-
m rp
corns, for example, actually

symbolize Christ. They are
frequently seen leaping into
the lap of a maiden, the Vir-
gin Mary, and their subse-
co Fo
quent capture and killing

represents the redemption
of mankind.
36"
The exhibit’s heart beats
in the second gallery, where
the Getty has showcased H
AV I S
about two dozen of these OF L H !
T
seminal texts, including the LENG
famed Aberdeen Bestiary
(c. 1200), Rochester Bestiary
Our pearl necklace
Unicorn Aquamanile (Water Vessel) by an unknown German (c. 1230-50) and its own goes to great lengths
artist (c. 1425-50), above; lions from a bestiary (c. 1250), by Northumberland Bestiary
an unknown English artist, below; whale from a bestiary (c. 1250-60). The Aberdeen
(c. 1270), by an unknown Franco-Flemish artist, top left; and a Bestiary, a highly colored, Layer on the luxe!
n-
casket panel with chivalric scenes (c. 1330-50), by an heavily gilded manuscript, is
unknown French artist, top right open to a spread showing This alluring 36" necklace features
CLOCKWISE FROM TOP LEFT: THE J. PAUL GETTY MUSEUM, LOS ANGELES; THE CLEVELAND MUSEUM OF ART; THE BODLEIAN LIBRARIES, UNIVERSITY OF OXFORD; THE METROPOLITAN MUSEUM OF ART
Christ on the left while, on lustrous 10-11mm cultured

the right, Adam names the
no
animals, as related in Gene- freshwater pearls and a 14kt gold

sis.
Nearby, an English besti- filigree clasp. Wear it alone, stylishly
ary (c. 1250) is open to a
page depicting a lion,
doubled or layered with your other
which always comes first in favorite necklaces. A luxurious look
bestiaries and is called
“rex.” That is why we call at an unbelievable price.
the lion the king of beasts.
Bestiaries also dissemi-
nated the notions that
foxes are wily, that ele-
phants remember well, and
that dogs are loyal, among
other animal lore.
This English manuscript
portrays the lion in three
guises: covering its tracks
with its tail, sleeping with
open eyes, and breathing
life into its young. That
last image relates to the
Resurrection. People then
believed that cubs were
born dead, but given life by
their fathers after three
days. That same image re-
curs again at the bottom of
a page from a German mis-
sal (before 1381) whose
main image portrays the
Resurrection.
This particular English
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295
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lion looks more like a wea-

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seems more accurate. But
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bly never saw most of the Additional lengths available.
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and weren’t striving for ac- Necklace shown smaller than actual size.
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A14 | Monday, June 17, 2019 * **** THE WALL STREET JOURNAL.
SPORTS
Woodland Wins U.S. Open
SRDJAN SUKI/EPA/SHUTTERSTOCK
The 35-year-old American takes his first career major after holding off a charge by Brooks Koepka
BY BRIAN COSTA
Pebble Beach, Calif.

When Gary Woodland walks
Carli Lloyd scored two first-half goals around a golf course, fans are of-
during a 3-0 victory over Chile. ten highly excited to see him. This
is an odd thing for a little-known
LLOYD PGA Tour veteran. As Woodland

has learned, there is a reason:
They think he is Brooks Koepka.
NETS TWO
“I get it all the time,” he said
last year.
Their bodies and games are
FOR U.S.
similarly built—both are identifi-
able by their burly physiques and
booming drives. But only on Sun-
day did Woodland truly merit the
comparison.
BY RACHEL BACHMAN Challenged by Koepka at Pebble
Beach, Woodland held on to win
the U.S. Open at 13 under par.
Paris Koepka, the world No. 1 and win-
Carli Lloyd created the jaw- ner of four majors in the past two
dropping image of the 2015 World years, finished three shots back.
Cup: a soaring, half-field shot that It was the first career major ti-
bounced past an off-balance goal- tle for Woodland, a 35-year-old
keeper in the final against Japan. from Kansas who had previously
It was Lloyd’s third goal in 16 min- won three PGA Tour events. He be-
utes, and it all but clinched the gan the week ranked 25th in the
U.S. women’s team’s first World world. He ended it by dethroning
Cup title since 1999. the two-time defending U.S. Open
Three and a half years later, champion. No player has won the
Lloyd found herself 36 years old tournament a third consecutive
and parked on the U.S. bench be- year since Willie Anderson in 1905.
hind younger, faster players in a “You realize, wow, I was just
.
fusillade of an offense. Lloyd was that close to accomplishing some-
ly
still scoring, but not starting--and thing that hasn’t been done in
she frequently told the world she over 110 years,” Koepka said.
didn’t like it. “That’s special. But I don’t think
“There’s no adjusting to being a anyone in the world played as wellon
super-sub,” she said. as Gary did this week.”
ANDREW REDINGTON/GETTY IMAGES

On Sunday in front of 45,594 at Woodland punctuated his win
Parc des Princes Stadium, Lloyd by draining a 30-foot birdie putt
started. She scored two first-half on the 18th green. It was a fitting
us l,
goals, sandwiched around one by end for a former basketball player

teammate Julie Ertz, in the U.S.’s whose long-range shooting touch
al a
e
3-0 victory over Chile in its second initially led him to Division II
game of this World Cup. And Lloyd Washburn University on a hoops
showed that her oft-repeated scholarship. After his freshman
ci on
words—about being ready, about year, he transferred to the Univer-

feeling sharper than ever—were sity of Kansas to play golf. Gary Woodland, a 35-year-old from Kansas, won the U.S. Open at Pebble Beach by three strokes over Brooks Koepka.
true. “This is the best version of Four shots behind at the start
me that I’ve ever been, playing in of the day, Koepka cut Woodland’s nament was over,” Woodland said. ever seen. And it’s identifying the the rest of his round in six under
my career,” she said. lead to one with a birdie on the “Once that putt went in, it all best players. It’s making the play- par to card a 69. It was his lowest
er rs
Lloyd’s goals on Sunday showed 11th hole. But Woodland stretched came out of me.” ers the story.” final-round score at the U.S. Open
her increased focus on fine-tuning it to two shots with a birdie on This year’s U.S. Open came in Mickelson, who turned 49 years since 2009.
her finishing skills. On the first, No. 14. the wake of player criticism of the old on Sunday, was not one of Afterward, Woods indicated he
she raced in on an attempted Woodland’s biggest scare came U.S. Golf Association for a series them. On the same course where will not play competitively again
m e
clearance by Chile, jumped in front on the par-3 17th hole, where he of issues related to its administra- before the British Open next
of Ertz and booted the ball home. hit his tee shot to the back fringe tion of the tournament in recent month. “I’ll play at home,” he said.
Lloyd’s second goal, in the 35th on the far-right side of the hour- years. A year ago, the governing Woodland began the day at 11
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minute, resembled the one nine glass-shaped green. All he did in body came under fire for the un-
Woodland holed a 30- under par, one shot ahead of Jus-
minutes earlier by Ertz: Both play- response was chip to 2 feet for an fairness of the setup at Shin- foot birdie putt on the tin Rose. It was his first 54-hole
ers took perfect corner kicks by easy par. necock. But the week at Pebble lead at a major. His closest compa-
Tierna Davidson and headed them Moments later, Koepka missed a Beach played out differently.
18th hole and threw up rable experience to Sunday, as far
into the net. birdie putt on the 18th hole to fin- The conditions were soft, his arms in celebration. as the atmosphere he played in,
co Fo
After the match, U.S. coach Jill ish the round with a 3-under-par though they grew tougher as the came in the final round of last
Ellis called Lloyd “awesome, fantas- 68. He is the first player ever to tournament went on. The course year’s PGA Championship, when he
tic, ready, energized.” shoot four rounds in the 60s and was no pushover, but it was fair in played alongside Woods. It wasn’t
The U.S. clinched a spot in the not win the U.S. Open. the eyes of the players, who he won the AT&T Pro-Am in Feb- his best day—he shot a 69 and fin-
round of 16 with the win. It faces It would have taken a spectacu- widely praised the USGA. The peo- ruary, Mickelson finished well out ished tied for sixth—but it was in-
Sweden on Thursday in Le Havre lar collapse by Woodland on No. 18 ple who run the event did not take of contention at 4 over par. structive.
in its final group-stage match car- for him to lose. There was no such center stage, which is generally Likewise, Tiger Woods—looking “I think I kind of got caught up
rying a grudge: The Swedes drama. After reaching the green in how it’s supposed to work. achy and stiff in the chilly in it a little bit,” Woodland said
knocked out the U.S. in the quar- three shots, Woodland holed the “I’ve got to hand it to the USGA weather—finished at 2 under par, Saturday. The lesson: “I can’t con-
terfinals of the 2016 Rio Olympics, putt and threw up his arms in cel- for doing a great setup,” said Phil though his final round ended on trol everybody else. I can control
the Americans’ earliest departure ebration. He shot a 69. Mickelson, a frequent USGA critic, an upbeat note. After four bogeys my attitude, and I can control my
ever from a major tournament. “I never really thought the tour- on Saturday. “It’s the best I’ve in his first six holes, Woods played game.”
n-
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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d t 70s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 4 Player in the 38 Guns, as an
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V Calgary
0s 14 15 16
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t l
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Ice
COLORFUL CHARACTERS | By Joe Hansen 57 Greek salad
25 Venetian blinds ingredient
U.S. Forecasts City
Today Tomorrow
Hi Lo W Hi Lo W City
Today Tomorrow
Hi Lo W Hi Lo W
Across 29 The Bruins’ sch. 56 Demands piece 61 Appreciate,
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 “The Dance 30 Novice funny from 26 Word with room informally
Omaha 80 65 pc 75 64 t Frankfurt 80 58 pc 85 61 pc
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 85 73 t 83 74 t Geneva 77 57 t 82 59 t Class” painter folks? 58 Japanese soup or center 62 NYC-based skit
Today Tomorrow Philadelphia 85 69 t 85 68 c Havana 88 72 t 90 75 pc 6 Iron option 32 Glass piece noodle 27 Balkans native show
City Hi Lo W Hi Lo W Phoenix 105 79 s 103 76 s Hong Kong 90 82 t 90 83 sh 59 Sister channel
11 Mets infielder 34 Daniel of 31 Apprehend 63 Freud topic
Anchorage 67 54 sh 62 50 c Pittsburgh 76 63 t 75 65 t Istanbul 87 73 pc 84 73 pc of QVC
Atlanta 89 73 t 87 73 t Portland, Maine 76 54 pc 68 54 c Jakarta 90 76 pc 91 75 pc Lowrie “Skyfall” 33 Thing that’s 64 Letter before
Austin 93 78 pc 97 78 t Portland, Ore. 80 59 pc 76 54 pc Jerusalem 80 63 s 81 62 s 14 Kingdom 35 Filming spot 60 Maoist pointless to sigma
Baltimore 89 69 t 86 68 t Sacramento 93 61 s 94 58 s Johannesburg 66 39 pc 66 38 s 15 Words before 36 Body part with photographers? beat 65 Nascar
Boise 89 59 pc 88 57 s St. Louis 79 68 t 82 70 c London 68 52 pc 69 57 r a canal 66 Cow call
Boston 75 62 pc 68 60 sh Salt Lake City 82 63 pc 84 63 s Madrid 89 64 pc 88 60 s
a date on a 37 Pint in a pub sponsor
Burlington 77 57 pc 80 60 c San Francisco 74 58 pc 74 58 s Manila 94 81 pc 94 81 pc medicine bottle 39 Ammo for Daisy 67 Cop operation
Charlotte 92 72 pc 89 71 t Santa Fe 80 51 pc 85 53 pc Melbourne 61 49 c 54 42 sh 16 Supporter’s vote rifles 68 Number on a Previous Puzzle’s Solution
Chicago 68 55 c 78 62 pc Seattle 75 58 pc 71 53 c Mexico City 81 58 t 80 60 t 17 Cowardly errand 40 Rock concert black ball M A
N N Y E T I S C O B
Cleveland 74 63 t 73 61 t Sioux Falls 77 59 pc 76 56 pc Milan 87 66 s 87 65 pc O R
E O S E E S T O O H O
runners? blaster 69 Jet last flown D E
E R S T A L K E R W I N
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74 61 c
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Today Tomorrow 20 Pass over a van I L L S R U L E S M I R E
Houston 88 77 t 92 77 t Riyadh 113 86 s 113 83 s
Indianapolis 75 65 t 78 63 t City Hi Lo W Hi Lo W Rome 80 66 s 82 66 s 21 Crewmate of 47 Melancholy 71 Small porch E L F T A K E N T I E I N
S MA R T E R S A S S E S
Kansas City 79 63 c 80 65 pc Amsterdam 74 55 pc 76 61 pc San Juan 90 80 s 89 79 s Capt. Kirk and rapscallions? Down U S A I D A P B S
Las Vegas 100 77 pc 101 78 s Athens 89 73 pc 88 70 t Seoul 77 62 pc 79 66 pc Dr. McCoy 52 Carry a torch 1 Needing MA S S I F T R I O WA S
Little Rock 81 68 t 88 72 t Baghdad 112 80 s 109 79 s Shanghai 87 70 c 77 72 t A B C P I G I G N O R A N T
Los Angeles 73 60 pc 73 60 pc Bangkok 91 79 t 88 78 t Singapore 87 80 c 87 79 c 23 Staples, paper 53 Salad dressing irrigation G E L S E A MU S I K E A
I L E E D G E S D EWY
Miami 83 79 t 87 77 t Beijing 86 66 pc 95 70 pc Sydney 62 51 sh 66 47 pc clips, and the like choice 2 Wide shoe
Milwaukee 65 54 pc 73 58 pc Berlin 79 62 pc 85 65 pc Taipei City 93 78 pc 90 80 t letters The contest answer is SEAR. Each of the theme
28 Place where 54 Grabbed before answers starts with an animal whose meat can be
Minneapolis 78 60 sh 77 59 pc Brussels 76 55 pc 78 61 pc Tokyo 79 65 pc 77 68 pc bombs were anyone else 3 ___ pal (female
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New Orleans 89 78 pc 86 78 t Dubai 108 90 pc 104 90 s Vancouver 73 56 pc 71 54 s bursting could friend) answer (DEER/VENISON; COW/BEEF; CALF/VEAL;
New York City 80 68 pc 76 65 c Dublin 65 49 sh 63 49 pc Warsaw 75 58 pc 80 63 pc PIG/PORK). The letters of those crossings, from top
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 83 65 c 85 64 t Edinburgh 64 50 sh 65 48 pc Zurich 78 54 pc 81 57 t to bottom, spell the contest answer.

OPINION
About Trump’s Migrant Problem BOOKSHELF | By Peter Duffy
Under
agreement
with
its
the
ology and left-wing populism.
In the short run, Mr.
Trump’s negotiated solution
than 850 jobs and thousands
more indirect jobs until it was
idled by a Guatemalan court
and threatened with violence.
The mine remains closed.
The broader Guatemalan
The Irish
Trump
Mexico
ad-
ministration,
re-
portedly has
may help reduce U.S. border
chaos. Mr. López Obrador has
dispatched his new National
Guard to Mexico’s frontier
in July 2017. As I wrote in Oc-
tober, owner Tahoe Resources
had invested $1.7 billion in the
mine’s development and oper-
investment climate is much
the same. Property rights are
mere suggestions for judges,
who rarely call on the state to
Are Coming!
AMERICAS
45 days from with Guatemala. He also ation. A Tahoe spokesman enforce the law against
By Mary
June 7 to re- agreed to expand the “remain told me that this included violent activists. Legal
When the Irish Invaded Canada
Anastasia
duce the in Mexico” program. More “more than $136 million paid uncertainty inhibits capital By Christopher Klein
O’Grady
numbers of U.S. asylum seekers who have to the Guatemalan govern- formation. (Doubleday, 365 pages, $28.95)
L
non-Mexican made it to the U.S. border will ment in taxes, royalties and The arbitrary exercise of
migrants arriving at the U.S. have to wait in Mexico until voluntary payments” as well power by the U.S.-funded U.N. ate in the evening on May 31, 1866, a private army of
border to claim asylum. If their hearings. as “$66 million in salaries” International Commission several hundred Irish rebels marched through Buffalo,
Mexican President Andrés Ma- These changes may slow and “$600 million spent on Against Impunity in Guate- N.Y., and crossed a narrow section of the Niagara River
nuel López Obrador cannot the flow of people through local suppliers.” mala—known by its Spanish into the British colony of Canada. An unlikely invasion had
show results, the White House Mexico. But Central Ameri- initials as CICIG—increased begun.
says that it will make new de- cans with dreams of climbing juridical insecurity during its The commander of the force, John Charles O’Neill, was a
mands to alter Mexico’s immi- the economic ladder won’t be Central America 11-year stint. The U.S. Em- native of County Monaghan who had immigrated to the U.S. as
gration policies and that Mex- easily deterred. There is a bassy cheered CICIG, but the a child and served in the Union Army during the Civil War,
ican exports to the U.S. will widespread belief among the needs intellectual government expelled it in Jan- suffering severe injuries at the Siege of Knoxville in 1863.
again face the threat of a 5% region’s working class that honesty, not a uary. The U.N. has never an- O’Neill was a member of the Fenian Brotherhood, the American
tariff. going to el norte is the way to swered for CICIG’s many hu- branch of the Irish Republican Brotherhood, an oath-bound
Note from Washington to make it, and historically low Marshall Plan. man-rights violations. secret society dedicated to the violent overthrow of British rule
investors: Don’t put capital in unemployment in the U.S. is a The U.S. government’s Mil- in Ireland. A largely forgotten figure in the annals of Irish
North America if you rely on further attraction. lennium Challenge Corp. was history, O’Neill emerges as the
the rule of law. We shred With nearly 600 untamed The company also put more an attempt to tie aid to good quixotic hero of Christopher
treaties when it suits us. miles of river and jungle bor- than $10 million in “social in- governance. In practice it Klein’s “When the Irish Invaded
Still, there’s always a der between Mexico and Gua- vestment and economic devel- never happened. El Salvador Canada,” which details a madcap
dumber idea—and the latest temala, and a network of en- opment programs,” including was allowed to ruin a $77 series of cross-border Fenian raids
comes from Democratic presi- terprising coyotes who “community education, health million investment by Van- between 1866 and 1871.
dential candidate Julián Cas- navigate them, the young and and nutrition, infrastructure, couver-based Pacific Rim The Irish revolutionists were a
tro. The former Obama Hous- the restless will keep coming. capacity development, entre- Mining Corp. In 2015 the gov- quarrelsome lot, riven by faction-
ing and Urban Development Many a back road in Guate- preneurship and local gover- ernment of the former Marx- alism, financial mismanagement,
secretary wants a “Marshall mala’s northwestern depart- nance initiatives,” the spokes- ist guerrilla group FMLN tried British informers and a major
Plan” for Central America, ment of Huehuetenango, for man said. More than $1 to jail two American citizens strategic dispute. O’Neill was
which is code for payola to example, leads into Mexico— million went into a vocational for bringing private invest- among those who believed that an
Beltway bandits in the name as I learned when I once got training center. ment to the energy sector. invasion of Canada, led by Irish-
of development. Plenty of lost there. Tahoe was operating a kind Even after the political nature American veterans of the Civil War,
other political geniuses, on In the long run, only devel- of mini-Marshall Plan in Gua- of the persecution was obvi- would be the first step in winning
both sides of the aisle, are opment will keep migrants temala without billing taxpay- ous, the corporation shoveled Ireland’s freedom, an idea vociferously
.
recommending similar things. home. But that happens when ers. But an antimining group millions more into the pock- opposed by James Stephens, the leader of the
ly
Reducing Central American capital is welcome and well- went to court to complain ets of that notoriously cor- Irish Republican Brotherhood, who thought a Canadian
out-migration requires eco- treated, a fact that U.S. policy that the government hadn’t rupt government. incursion would be “suicidal.”
nomic growth. But one has to too often ignores. consulted with the local indi- Central America doesn’t “The objective point is Ireland,” Stephens insisted, “not
be either cynical or naive to Consider the Escobal silver genas, who numbered two,
on need a Marshall Plan. It needs Canada, Japan, or any of those distant regions that do not
prescribe a huge wealth trans- mine in the Guatemalan mu- and operations were sus- intellectual honesty from bu- concern Irishmen.”
fer into a black hole of cor- nicipality of San Rafael Las pended. The mining company reaucrats and politicians. By the time O’Neill’s ragtag army reached Canadian soil, we
ruption, antidevelopment ide- Flores. It supported more says it was asked for bribes Write to O’Grady@wsj.com. are told, 200 of the soldiers had abandoned the cause, “some
dissuaded by second thoughts, others lured into passing
us l,
saloons by the gratification awaiting at the bottom of a whiskey
The Future Isn’t What It Used to Be bottle.” Yet on June 2, a few miles from the border in the
al a
e
village of Ridgeway, the Fenians succeeded in defeating several
hundred Canadian militiamen. The victory marked, according
Founded in Of course, the 1973 oil em- knew about house or deriva- Will any of it last? to Mr. Klein’s accounting, the first time Irish soldiers defeated
ci on
1867, the bargo changed everything. But tive flipping—that’s what the For a while, Tesla was val- forces of the British Empire since the Battle of Fontenoy in
Keuffel & Es- by the end of the ’70s, expen- aughts were about, until the ued as if every new car would 1745. It was the high moment of the Fenian raids, a symbolic
ser Co. com- sive oil was considered perma- Great Recession. The 2010s soon be electric. The 2020s are victory over British hegemony that, according to the Nation
missioned a nent and the future was about were about holding cash, still blurry, but apparently that newspaper in Dublin, “fills our people with tumultuous
study of the scarcity and energy saving and maybe in your mattress, vs. doesn’t cloud the pundit class’s emotions impossible to describe, impossible to conceal.”
er rs
future for its we’d all be driving small cars owning stocks. Oops—Apple, clear vision on climate change, But the territory could not be held. With no reinforcements
INSIDE
100th anniver- with CB radios and living in R. Amazon and Microsoft would drones, autonomous vehicles on the way and thousands of British troops in the vicinity, the
VIEW
sary. If you’re Buckminster Fuller-inspired soon flirt with trillion-dollar and the effect of artificial in- Fenians soon scurried back across the border into America,
By Andy
of a certain geodesic domes. General Elec- valuations. Teramistake? telligence. We’ll all share cars, where O’Neill and his fellow officers were arrested and charged
Kessler
m e
vintage, you tric even ramped up produc- bikes, scooters and even pogo with violating American neutrality laws.
might have tion of small refrigerators. sticks. WeWork is valued as if Mr. Klein is keen to celebrate the idealistic Fenians with
used a K&E slide rule. Their Mistakes! There’s one trend we’ll all share offices. What’s their audacious dreams of national liberation, but he doesn’t
m rp
“visionary” study was a huge Then the ’80s came along. A next, communes? fail to catalog the foolhardiness of their endeavors. His book
dud, missing completely the bull market and cheap oil lifted you can count on: My experience is that peo- should be pressed into the hands of any would-be insurrec-
electronic-calculator boom that the ’70s fog, but everyone be- Most predictions ple tend to overestimate the tionist looking for tips on how not to overthrow a tyrant.
came a few years later. They lieved the Japanese would absurd, like Elon Musk’s
shut down their slide-rule en- soon rule the world since they turn out to be wrong. dreams of building a hyperloop
The 1866 invasion of Ridgeway, Canada, marked
co Fo
gravers in 1976. As Mark Twain were kicking our butts in man- and colonizing Mars, and un-
said, “It’s difficult to make pre- ufacturing and the Imperial derestimate the mundane, like the first time in a century that Irish soldiers
dictions, especially about the Palace in Tokyo was worth Mr. Schnaars advised dis- improvements in messaging
future.” Or was it Niels Bohr? more than all the real estate in counting extrapolations, play- and shopping. I’m usually bull- defeated the forces of the British Empire.
Maybe Yogi Berra? California. Personal computers ing down historical precedent, ish until dreams become hallu-
My father was a proud were mere toys. Oh, and the challenging assumptions, and cinations. Technology develops
member of the Book of the Soviet Union was a world su- distinguishing fads from growth in S curves: Things start slow, The author describes the “attempt” in 1866 to seize
Month Club. Bored on a visit perpower. Megamistakes! markets. Easier said than done. go into hyperbolic growth, and Campobello Island, located in Canadian waters off the coast of
home in 1989, I devoured that After the ’87 crash and first The future happens, just not the then roll over. That’s why “the northeastern Maine, a plan that was foiled before it began
month’s selection, “Mega- Iraq war, the prospects for way most people think. How singularity”—self-improving, when British and American warships arrived. The only
mistakes” by Baruch College economic growth in the ’90s you pick your investments, your unrestrained artificial intelli- “successful armed invasion” of that raid, Mr. Klein notes,
professor Steven Schnaars, were dim. Then Netscape and job and even where you live can gence—probably won’t hap- occurred when a group of fleeing Fenians “drew their revolvers
where I read about K&E’s its browser went public in 1995 end up a dead end or the most pen. Don’t extend the trend. and annexed the most comfortable accommodations” on a
study. The book’s message was and we were off to the races vibrant upside imaginable. The tempests of change steamship bound for home.
n-
simple: Don’t be fooled by pre- again. By 1999 techno-utopia Choose carefully, but as Mr. blow hard. Reading the pre- We are told how later that same year several hundred
vailing opinion, and don’t ex- was in full swing, and all you Schnaars suggested, think for vailing winds, we’re all about Fenians crossed from St. Albans, Vt., into southern Quebec,
tend trend lines into the fu- needed was a good name like yourself. to become robot-replaced, where they distinguished themselves by stealing horses,
ture. Mr. Schnaars chronicles burnmoney.com to raise mil- Today low interest rates drone-delivered-synthetic- burglarizing farmsteads and running back across the border at
no
how 1950s jet-age thinking lions and be worth kazillions. mean risk is on and caution is meat-eating, augmented-real- the first sight of the enemy. The commanding officer during
morphed into ’60s dreams of a Gigamistake! old-fashioned. Companies sell ity-helmet-wearing, bitcoin- the raid, Samuel Spear, broke down in tears, declaring that he
space-age utopia. A 1966 study The Nasdaq’s dot-bomb im- at 20 times revenues instead of spending, fruit-flavored- “would rather have been shot than have left Canada in the
by conglomerate TRW forecast plosion and 9/11 changed the earnings (Note: Beyond Meat is vaping, neutered democratic manner he was obliged to.”
manned lunar bases by 1977, mood quickly. In 2003 I tried at 43 times its 2019 sales fore- socialists chirping “Comrade” Four years later, O’Neill, the hero of Ridgeway, led a Fenian
autonomous vehicles by 1979 to pitch a book about Silicon cast, and Tableau Software re- and streaming “The Hand- force in Spear’s footsteps into Quebec, but one of O’Neill’s
and intelligent robot soldiers Valley and Wall Street and was cently sold for 16 times its maid’s Tale” Season 10, “Dys- confidants turned out to be an informant for the British. When
by the ’90s. AT&T’s Picture- told nobody would care about 2018 revenue.) Politically, pop- topia’s Discontents,” on our the Irishmen arrived at Eccles Hill, a few miles over the border,
phone service, ultrasonically them ever again and asked if I ulism and nationalism have watches while collecting uni- Canadian militiamen and armed citizens were waiting, guns at
cleaned dishes, cheap energy knew anything about bio- won the day. Internationally, versal basic income. You don’t the ready. The Fenians were routed.
forever, future shock every- terrorism or Islamic funda- China is the new U.S.S.R. Eco- need a slide rule to calculate A few days later, a Fenian force of a few hundred men
where—all wrong. mentalism. Uh, no. But I wish I nomically, the future is now. the megamistakes. repeated the farce 80 miles to the west, marching upon a large
gathering of Canadian militia and British troops at Trout River.
The retreat was closer to a stampede. “Had the Fenians
How I Became an Asparagus Farmer remained upon the ground ten minutes longer,” wrote a New
York newspaper, “not one of them would have been left to tell
the tale.”
By Jonathan Kolatch about $9. Four decades later, rier, who leaves packages on to Bruce: “Would you be able Upon returning to the U.S., O’Neill, who had escaped convic-
M
they still produce four pounds a our porch, out of the rain. Lisa to stop by Friday afternoon? tion in the Ridgeway invasion, was found guilty of violating U.S.
y mother skipped week for nine weeks, an annual has been spoiled to learn that We have some extra aspara- neutrality laws for his role in the Eccles Hill disaster. In true
three semesters at value of $144 at the retail price the most succulent, best-tast- gus AND I also need to ask Irish nationalist tradition, he gave a stirring speech from the
James Madison High of $4 a pound. A total return on ing asparagus shoots are the your opinion on a pool pipe dock on July 29, 1870: “No matter what may be my fate here—I
School, in Brooklyn, N.Y., grad- investment of 4,365%, by my fat ones. Pencil-thin, pealed problem.” am still an Irishman, and while I have tried to be a faithful
uating at 15½, so she was no unverifiable calculations. spears are for snobs. “That would be great, I’ll be citizen of America, I am still an Irishman, with all the instincts
dummy. Still, with the tenta- Bob, the UPS driver, says by,” Bruce shot back. He ap- of an Irishman.” President Ulysses S. Grant, who sputtered his
cles of the Great Depression the bunch we give him is like peared as promised with the contempt for the Fenian troublemakers, eventually issued an
still squeezing and Grandpa Five plants cost $9 bringing back his late father, cutter. unconditional pardon. “The lure of the Irish vote,” Mr. Klein
Samuel in hard straits, she de- who grew asparagus. Bob tried I eyed the enormous bag of writes, “ultimately proved too powerful for Grant.”
cided to pass on college and in 1977. The yield growing them but short- asparagus my brother, David, In 1871, O’Neill made one last attempt to “invade” Canada,
contribute at home. is more than enough shrifted on mandatory chemi- had left in the refrigerator for briefly occupying a Hudson’s Bay Co. outpost in what he
She took a job as an office cal weed control. Manual culti- Bruce and put it on the scale. thought was Manitoba. It turned out the post was located
girl at Famous, a millinery to pay the plumber. vation is nearly impossible. It weighed more than 2.4 nearly a mile south of the border.
concern, where one of her cul- Our barter arrangement with pounds. “That’s way too His military career over, O’Neill turned to real estate, urging
tivated joys was eating fresh Bruce, our plumber—bushels of much,” I said to myself, aware Irish families from the East to relocate to settlements he
asparagus. “When I get rich, I We could set up a roadside homegrown apples and pears in that baselines, once estab- established on the Great Plains. “We could build up a young
will have asparagus for lunch stand to sell what we can’t eat, return for boiler servicing— lished, cannot be lowered. So I Ireland on the virgin prairies of Nebraska,” he wrote, “and
and dinner every day,” she but trading brings richer re- guarantees that he shows up. opened the bag and repos- there rear a monument more lasting than granite or marble to
vowed. Decades later, canned wards. A bag goes to Lynn, my But what really sets Bruce’s sessed a dozen spears. the Irish race in America.” The town of O’Neill, Neb., is named
asparagus, limp as a sleeping wife Duan’s radiologist col- tongue hanging out is fresh as- I had prepped Bruce more for him. Yet many Irish families came to regard him as a
dog’s tail, appeared on our league, who assists her with paragus. On a recent weekend, than once on grow-your-own swindler who promised an Eden but delivered a hardscrabble
plates from time to time. A cancer procedures. Inspired by the electric breaker box for our asparagus essentials—planting existence. In 1878, at the age of 43, O’Neill died in Omaha,
meager substitute. the taste, Lynn planted a row swimming-pool pump burned trench, fertilizers, adequate where he was buried. A decade later, a proposal to rebury him
So, when our family came at her San Francisco home. Un- out. Replacing the box required water, asparagus knife. He de- in his namesake town was rejected. “Leave him in Omaha,” was
into a parcel of upstate land in fortunately, she spends three cutting a three-quarter-inch cided to let me do the farming. the response of a spokesman from O’Neill. “He led the Irish
1977, the first imperative was to weeks a month in New York. galvanized pipe. I am the family astray, and was the cause of their suffering tragic hardships.”
plant 45 feet of asparagus. We Asparagus has no patience. electrician, but not good at cut- Mr. Kolatch is author of
bought 25 one-year Martha We put a bag in our rural ting pipes. “China Mosaic” and “At the Mr. Duffy’s latest book is “The Agitator: William Bailey and the
Washington variety plants for mailbox for Lisa, the letter car- I shot a coy text message Corner of Fact & Fancy.” First American Uprising Against Nazism.”
A16 | Monday, June 17, 2019 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
California’s Backseat Drivers Fed Must Consider the Long-Term Economy
A
merica’s auto makers have complained cluding Elizabeth Warren, Kamala Harris and Ber- Regarding George Melloan’s “The Let’s dial back our obsession with the
for years about onerous fuel-economy nie Sanders have pledged to do. Fed Can’t Bail Trump Out” (op-ed, June Fed and direct more attention to Con-
6): Inflation is an inverse measure of gress and the president, and hold them
mandates, but now they seem to be suf- This overlooks crucial details. The Obama 2012
the purchasing power of money. An in- accountable for their inaction and pol-
fering Stockholm Syndrome. rule-making required the EPA flation target of 2% means that the icy missteps.
Witness their opposition to the Auto CEOs who disliked to decide whether to modify the Federal Reserve wants to reduce the STEVE WIERHAKE
Trump Administration’s ef- Obama fuel rules now 2022-2025 standards no later purchasing power of the dollar by 2% Punta Gorda, Fla.
forts to liberate them and the than April 2018. A future Demo- every year, year after year. This delib-
country from the Obama mile- bow to Sacramento. cratic Administration would vi- erately harms savers, retirees, lenders Mr. Melloan is right that monetary
age and California’s electric- olate administrative law and in- and bondholders by systematically cut- stimulation cannot counter reckless
car mandates. vite litigation by revising the ting the intrinsic value of their assets spending and trade wars, but maintain-
The Environmental Protection Agency and Trump rules. A new rule-making would also prob- in half every generation. The Fed ing a tighter policy could be a disaster
Transportation Department are finalizing re- ably take at least two years, so a Democratic Pres- wrongly justifies this pernicious policy for President Trump and the economy.
vised corporate average fuel-economy (Cafe) ident would probably focus on setting new stan- as a means of forestalling deflation. As Monetary ease, similar to entitlement
Paul Volcker explains in his autobiogra- spending, has a “pay me now or pay
standards for 2021 to 2026. During its waning dards for later years.
phy, “Keeping At It”: “The real danger me later” timing dimension that
days, the Obama Administration reaffirmed its i i i comes from encouraging or inadver- prompts most politicians to favor the
2012 mandate that auto makers hit a fleetwide All of which means that auto makers will tently tolerating rising inflation and its “later” option. If they are lucky, a suc-
average of 54 miles per gallon by 2025. face regulatory uncertainty no matter what the close cousin of extreme speculation cessor will have to deal with the
The car companies had rightly complained Trump EPA does. They can plan their invest- and risk-taking, in effect standing by “later.” In the meantime, if sentiment
that these targets were costly and unrealistic. ments accordingly. But companies that are while bubbles and excesses threaten fi- for any reason turns sharply negative,
SUVs and trucks now comprise about two-thirds making more electric cars than consumers nancial markets.” The Fed should stop the economy and political party in
of vehicle sales, up from about half in 2012 when want merely to comply with government man- encouraging speculation and focus in- power will pay the price.
the standards were first set. Low-emission en- dates now want to require their competitors stead, as Mr. Volcker says, on “price The Federal Reserve cannot offset
gine and transmission technologies have sput- to do so the same. stability and prudent oversight of the all of the collateral economic damage
tered, and all but three large car makers failed to Notably, Fiat Chrysler, which has lagged in financial system.” Such financial pru- from borrowing and spending too
dence is especially appropriate with much as well as the disruption of
meet this year’s mileage mandate. electric-car investment and would have to buy the New York Fed determining that un- global trade, but it certainly could
Enter the Trump Administration, which last credits from other auto makers to meet the derlying inflation, calculated by refer- make things marginally worse during
year proposed freezing the 2020 target of 37 Obama standards, did not sign the letter to Pres- ence to a broad set of economic data, Mr. Trump’s time in the White House.
miles per gallon while eliminating credits that ident Trump. Nor did Tesla, which could be hurt now exceeds 2.8%. If the economy softens, it will be good
companies can bank for electric cars, air condi- by auto makers selling electric cars at prices be- KEITH A. JONES for Democrats next year, who plan to
tioning leakage systems and other “advanced” low manufacturing costs to meet government Palm Beach, Fla. spend, tax and borrow a lot more and
technologies. Most auto makers are rolling over mandates. push for perpetually accommodative
credits from prior years to comply with the cur- As for California’s waiver, the Trump Adminis- Banks don’t lend reserves (excess or Fed policies to enable limitless borrow-
rent standards. tration would probably win if a legal fight goes otherwise) except to other banks, ing. In the absence of prudent fiscal
The Obama Administration also granted Cali- to the Supreme Court, which would only occur which is why the vast quantity of ex- policy, the Fed’s first priority should be
cess reserves in the banking system to do no harm.
fornia a waiver under the Clean Air Act to im- if the President wins re-election. The Clean Air
didn’t lead to harmful inflation. The ED WILLIAMS
pose its own emissions standards and electric- Act allows the EPA to reject a waiver if California Fed influences interest rates and the McLean, Va.
car mandate, which nine other states have “does not need such standards to meet compel- cost of credit, but has little direct con-
.
adopted. Trump EPA Administrator Andrew ling and extraordinary conditions.” trol over them. For recent proof of this With GDP growing at a very com-
ly
Wheeler, who wants to apply the same rules Carbon emissions don’t contribute to smog like reality, one only need note that the fortable rate and with full employment,
across all states, has sought a compromise with other tailpipe pollutants, but California’s waiver yields on the 10-year Treasury and new why should the Fed even consider low-
California. But the state’s liberals want it their does raise costs for consumers nationwide since 30-year fixed-rate mortgages are lower ering rates? Investors want to ensure
way or the highway. auto makers have to subsidize their electric cars
on today than a year ago, in spite of the the so-called Fed “put” is alive and well
This has caused car makers to worry that the by raising prices on SUVs and trucks. As the car Fed’s “tightening.” to bail them out if stock prices fall. Pol-
Trump revisions will get waylaid in court if Cali- companies told Congress in 2016, California’s elec- Our banking system, not the Fed, iticians always call for lower rates to
fornia sues. So they’re urging the Trump Admin- tric-car mandate “provides no net GHG [green- creates most of the money in our sys- stimulate the economy from whatever
tem. It should be obvious by now that level to ensure their re-election.
us l,
istration to negotiate a middle road that pro- house gas] benefit but adds significant compli-
the Fed can do little to stimulate de- George Melloan is spot on to worry
vides “regulatory certainty” and “facilitates the ance costs for consumers nationally.” mand for loans by businesses and indi- about trillion-dollar deficits in a period
adoption” of electric cars and “flexibilities that California Gov. Gavin Newsom told auto mak-
al a
e
viduals. As to the Fed’s well-known of strong growth with more jobs avail-
promote advanced technology,” as the Alliance ers recently that he isn’t interested in a “mid- dual mandates to maintain price stabil- able than workers to fill them.
of Automobile Manufacturers noted in a letter way” deal. Meantime, liberal groups are warning ity and promote maximum employ- What’s going to happen when the in-
ci on
earlier to President Trump. auto makers that they must support California’s ment, I would add an even more im- evitable recession hits? It’s only a mat-
Translation: Auto makers are trying to hedge electric-car mandate to avoid regulatory uncer- portant mandate: to maintain an ter of time until federal debt balloons to
their political investment in case President Trump tainty. Uncertainty and higher costs are guaran- orderly and stable banking system. The unsustainable levels causing the dollar
loses re-election in 2020. Preserving credits for teed as long as government is steering auto in- Fed has rarely met its two official man- to fall and fixed-income investors to de-
electric cars could guard against the possibility vestment. Team Trump should ignore the dates simultaneously. I mention this mand a higher return of U.S. Treasuries.
er rs
not to highlight any failure of the Fed, When this happens we will be at the
that a future Democratic President ratchets up the ungrateful car companies and move ahead with
but to suggest that too many of us ex- point where events control us, not the
standards, as several Democratic candidates in- the new rules. pect too much from the Fed and mone- other way around, and even the Fed
tary policy. Mr. Melloan is right that won’t be able to come to the rescue.
Why Unions Keep Losing

m e
politicians have been passing the buck ROBERT M. SUSSMAN

for their own fiscal-policy mistakes. Paradise Valley, Ariz.
T
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he United Auto Workers lost another above the median in Chattanooga.

vote to organize a southern American The union was also hurt by federal corruption
auto plant late last week, and maybe charges against prominent UAW officials, includ- Too Much Salt Really Is Bad for Your Health
some introspection is in order. ing misuse of union dues for
Workers with good jobs and The UAW isn’t offering lavish personal spending— In “Are You Getting Too Much Salt industry must band together to reduce
co Fo
in Your Diet? Probably Not” (op-ed, sodium intake—especially in the food

wages aren’t buying what the workers a better deal, which isn’t a good look when
June 3), Michael H. Alderman and Da- we buy at restaurants and supermar-
union is selling. you’re trying to convince work- vid A. McCarron attempt to detract kets, which accounts for 70% of the
The UAW lost 833-776 in its and there’s corruption. ers to commit a chunk of their from the large body of scientific evi- sodium in our diets. New York City
second attempt to organize hard-earned wages for union dence—including an extensive, years- was the first city in the country to im-
Volkswagen AG’s plant in Chat- purposes. Former UAW Vice long review by experts from the Na- plement a sodium warning rule to give
tanooga, Tenn., that builds Passat sedans and At- President Norwood Jewell, who represented the tional Academies of Sciences—which diners information when eating at
las SUVs. The defeat is especially notable be- union with Fiat Chrysler, pleaded guilty in April demonstrates that sodium intake chain restaurants. Some companies
cause the union devoted enormous resources to to accepting tens of thousands of dollars in meals above 2,300 milligrams a day should have also accepted the scientific facts
this effort after a narrow defeat in 2014. The and golf trips from Fiat Chrysler. be lowered to prevent chronic disease. about salt and want to do right by
union blamed Tennessee Republicans for the The UAW ignored all this and blamed its de- High sodium intake is associated their customers, for example, the pio-
2014 loss, but this time GOP Governor Bill Lee feat on national labor laws it claims are “broken” with high blood pressure, a key con- neers that participated in the National
tributor to heart disease and stroke. Salt Reduction Initiative, a partner-
preached labor-management cooperation rather because workers had to “endure threats and in-
These two conditions make up more ship convened by the Department of
n-
than opposition to the union. timidation,” according to union spokesman than one in five premature deaths Health. This collective action to re-
The UAW couldn’t overcome Volkswagen’s Brian Rothenberg. Sorry, but this isn’t 1910. among adults in New York City. Cer- duce salt in diets promotes public
pitch that workers are better off without a Union organizing is protected by law, and the tain populations are more heavily af- health and prevents chronic disease.
union dunning their paychecks for dues and UAW had years to make its case to the Chatta- fected, including black and Latino New OXIRIS BARBOT, M.D.
no
perhaps making the plant less competitive. nooga workforce. Companies that lose sales re- Yorkers and those in high-poverty Commissioner, New York City
Wages and benefits for production workers examine what or how they’re selling. Unions that neighborhoods. Department of Health
can add up to $23.50 an hour, which is well keep losing would be wise to do the same. To protect the health of all Ameri- and Mental Hygiene
cans, scientists, the FDA and the food New York
How the U.S. Can Help Hong Kong Self-Evident Truths Not Always So Evident
H
undreds of thousands filled the streets turned over to be tried and punished in China. Regarding Aaron Rhodes’s burden of proof to those who want
of Hong Kong again on Sunday, despite Corrupt mainland officials could also shake “Pompeo Tries to Rescue the Idea of to violate our life, liberty, property
Chief Executive Carrie Lam’s decision down Hong Kong businesses with the mere Human Rights” (op-ed, June 11): The or pursuit of happiness. Instead of
Saturday to suspend a bill to threat of extradition. problem with natural rights is that, requiring me to justify my rights, re-
allow the extradition of local The territory could lose The State Department, contrary to Thomas Jefferson, they quire others to justify oppressing me.
citizens to China. Hong its special privileges if an which has expressed “grave are not self-evident at all. Philoso- We’ll quickly discover that tyrants
Kongers don’t trust Ms. Lam concern” over the extradition phers, theologians, politicians and and busybodies aren’t that interested
or China to shelve the bill per- extradition law passes. law, says there are more than average citizens have wrestled for in deep philosophical discussions.
manently, and demands for 1,300 U.S. firms with opera- centuries over whether rights exist, They will use the language of rights
where they would come from and as a pretext for their activities if
Ms. Lam to resign are growing. tions in Hong Kong, some $80
what they would be. Jefferson him- they can. But if they can’t, they’re
Now is a good moment for the U.S. to under- billion in U.S. investment and 85,000 American self punted on the question when, in- not about to start respecting individ-
score to China and Ms. Lam the cost of robbing citizens. U.S. Consul General Kurt Tong has stead of justifying the existence of ual liberty.
the legal autonomy China promised Hong Kong pushed back against Chinese claims, saying that rights, he essentially said “we believe BOB ALEXANDER
in the 1984 Sino-British Joint Declaration. Pres- “for someone to say that you can invest here but it’s obvious.” Bedford, Mass.
ident Trump has remained silent, but Members you’re voiceless is of course just not a responsi- A better approach is to shift the
of Congress in both parties are speaking up. ble frame of mind.”
House Speaker Nancy Pelosi rightly calls the ex- Last week Sen. Marco Rubio (R., Fla.) and
CORRECTIONS
Pepper ...
tradition bill “horrific” and she has threatened Reps. Jim McGovern (D., Mass.) and Chris Smith And Salt
to re-examine the U.S.-Hong Kong relationship (R., N.J.) re-introduced the Hong Kong Human
if authorities in Beijing insist on jamming the Rights and Democracy Act. The main provision “Artists Choose Artists,” a triennial THE WALL STREET JOURNAL
exhibition at the Parrish Art Museum,
law through. would require the Secretary of State to affirma-
is a juried exhibition aimed at men-
That relationship is guided by the 1992 U.S.- tively certify every year that Hong Kong still en- toring and connecting artists. A June
Hong Kong Policy Act, which considers Hong joys the autonomy that China promised until 10 review of a different exhibition
Kong a customs territory and economic entity 2047. If not, the special advantages Hong Kong mischaracterized the Parrish show.
separate from China. The law requires the State now enjoys over China under U.S. law—such as i i i
Department to issue an annual report on Hong tariffs, visas and law enforcement coopera- The chemical formula for drinkable
Kong. The most recent, on March 21, says that tion—might be taken away. alcohol is C2H5OH. The June 13 Book-
while Hong Kong maintains a “sufficient” degree Some worry that punishing China by taking shelf, “Wired to Care,” misstated the
of autonomy from China to justify preferential away Hong Kong’s advantages would do more formula.
treatment, this has been “diminished.” harm to Hong Kong. But Speaker Pelosi’s logic
In recent years China has kidnapped Hong is correct: If Hong Kong’s autonomy will not be Letters intended for publication should
Kong citizens critical of Beijing from third respected, why should American policy treat it be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
countries and spirited them back to China for differently from China? If Mr. Xi is willing to or emailed to wsj.ltrs@wsj.com. Please
detention. With a new extradition law, Hong needlessly damage a free city that should be the include your city and state. All letters
Kongers know China would have the explicit pride of China, and an example of self-govern- are subject to editing, and unpublished
authority to identify critics, charge them un- ment to reassure Taiwan, the question is letters can be neither acknowledged nor “We made it into a smart home,
returned.
der Chinese law, and then demand they be whether Beijing can be trusted at all. with no hackable technology.”
OPINION
America Can Face Down a Fragile Iran Hong Kong

By Reuel Marc Gerecht to the negotiating table.
Throngs
And Ray Takeyh Despite the criticisms from Dem-
As Beijing
I
ocrats and Europeans, Mr. Trump’s
n the U.S. and Europe, much Iran policy has had considerable
of the mainstream media has
swallowed a narrative about
Donald Trump and Iran.
success. He abrogated a deficient
agreement that was smoothing
Iran’s path to a nuclear weapon. He
Retreats
While Iran is an aggressive restored sanctions, which many
authoritarian state, the story goes, Iran-deal partisans insisted couldn’t By Jillian Kay Melchior
it is nonetheless a victim of Ameri- be done effectively. The economic
N
can belligerence. Tehran was adher- pain Tehran feels today is as great Hong Kong
ing to the Joint Comprehensive Plan as when the Europeans imple- athan Law, 25, was the youn-
of Action, negotiated by the Obama mented their oil embargo in 2012. gest person ever elected to
administration, when the truculent Iran’s oil exports have contracted Hong Kong Legislative Council.
Mr. Trump abruptly abandoned the rapidly, denying the regime billions For his pro-democracy activism, he’s
accord. For more than a year, ac- of dollars in hard currency. The key faced jail, tear gas and rubber bullets.
cording to the narrative, the mul- challenge for the Trump adminis- He’s certainly on Beijing’s enemies
lahs have shown patience by con- tration now is to sustain its strat- list. In an interview he confided his
ISNA/HANDOUT VIA REUTERS

tinuing to abide by the agreement, egy as the Iranians start dangling deepest fear. “To be very honest,” he
even with the resurrection of pun- the possibility of a diplomatic told me Thursday, “I’m most afraid
ishing American sanctions. opening. Hong Kong people will not care any-
Iranian patience has run out, Secretary of State Mike Pompeo’s more.” It’s increasingly clear that
critics complain, because of the most important contribution has Chinese President Xi Jinping wants
Trump administration’s recent an- been to dispense with the once-pop- to subsume the small city-state, and
nouncement that it will try to drive ular notion that the nuclear issue there didn’t seem to be much Hong
the Islamic Republic’s oil exports to An oil tanker burns in the Gulf of Oman, June 13. can be separated from the clerical Kong people could do to stop it. Mr.
zero. Tehran’s “hard-liners” now regime’s regional ambitions. His Law said he was afraid “about Hong
have the upper hand. Washington’s most unrelenting critics. weeks on oil tankers in the Gulf of May 2018 “12 points” speech sensi- Kong people becoming cynical, full of
economic warfare, the narrative Iran’s fragile theocracy can’t ab- Oman are probably the handiwork bly posited that the world’s leading apathy, or they just won’t care.”
goes, may provoke the clerical re- sorb a massive external shock. of the Islamic Revolutionary Guard sponsor of terrorism shouldn’t pos-
gime into a military conflict. And if That’s why Supreme Leader Ali Corps’s naval units, which train reg- sess a nuclear arsenal. The adminis-
war comes, the mullahs are ready to Khamenei has, for the most part, ularly in the use of mines. The most tration has developed a contain- A quarter of the city’s
trap America in another Middle adhered to the JCPOA, and why he recent shipping attacks have had ment strategy that is unconven- population protested
Eastern quagmire. is likely angling for negotiation their intended effect. European offi- tional and restrained—Iran’s
over confrontation with the Great cials, Democratic politicians and expeditionary forces and allied mili- for freedom Sunday.
Satan. much of the American press are tias in the northern Middle East ha-
The regime is dangerous, The ruling clerics, Mr. Khamenei pleading for dialogue. ven’t been targeted—but still pun-
in particular, are competent strate- The key to dealing with the Is- ishing. As long as Mr. Trump is Yet on Sunday, a crowd estimated
but it isn’t nearly strong gists. They appreciate the need to lamic Republic is to appreciate that willing to respond to a direct chal- at nearly two million—roughly a
enough to withstand a enhance their leverage before any it is an exhausted regime, perhaps lenge, conventional or nuclear, and quarter of the city’s population—
talks. Terrorism has always been well on its way to extinction. A Tehran is convinced of the presi- marched from Victoria Park to the
prolonged confrontation. the regime’s preferred method of vulnerable, resentful enemy is a dent’s mettle, time is on Washing- Legislative Council building to take
.
inflicting pain on adversaries. As- dangerous one. The U.S. should ton’s side. a stand for Hong Kong’s autonomy.
ly
sassination attempts orchestrated shore up its military might in the America’s Iran problem will re- They stretched as far I could see in
The narrative misses a key point. by Iranian “diplomats” in Europe region and harden defenses around main until the theocracy cracks. either direction, spilling into parallel
Iran is in no shape for a prolonged are on the rise. These thwarted op- bases and diplomatic compounds. Given the regime’s inability to es- streets. It was the third mass protest
confrontation with the U.S. The re- erations, which could have killed
on But the regime’s essential weak- cape the contradictions of its own in eight days. After the first two, the
gime is in a politically precarious many people, appear to have in- ness means it can’t muster suffi- making, that day is drawing closer. resolve of China and Hong Kong’s
position. The sullen Iranian middle clined the Europeans toward more cient strength for a prolonged con- The U.S. needs stamina—and a clear pro-Beijing officials appeared to wa-
class has given up on the possibility dialogue with Tehran, not less. flict with a determined understanding of how the enemy ver.
of reform or prosperity. The lower The regime also has at its dis- superpower. The mullahs’ clenched sees itself. Hong Kong’s Chief Executive Car-
us l,
classes, once tethered to the regime posal foreign militias such as Hez- fists, slogans of martyrdom, and rie Lam had been pushing legislation
by the expansive welfare state, have bollah, which it uses to target re- staged demonstrations shouldn’t be Mr. Gerecht is a senior fellow at that would authorize the city to ex-
al a
e
also grown disloyal. The intelligent- gional foes without admitting direct confused with real power. The the Foundation for Defense of De- tradite criminal suspects to the main-
sia no longer believes that faith and responsibility. And there are more- Trump administration’s strategy of mocracies. Mr. Takeyh is a senior land—“the legalized kidnapping of
freedom can be harmonized. And direct means to increase negotiat- maximum pressure shouldn’t be di- fellow at the Council on Foreign HK people to China,” as one pro-
ci on
the youth have become the regime’s ing leverage. The attacks in recent luted as the two sides edge closer Relations. tester’s poster described it. Foreign-
ers would also be in peril.
But amid the public backlash, Ms.
The Case for Giving Money Away Now Lam announced Saturday that she
would indefinitely suspend the legis-
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lation. On Sunday she issued a state-

By Ray D. Madoff costs for trustee meetings in exotic ship for writers and scholars at the to charity. As he wrote in his 2004 ment that “the chief executive apolo-
W
locales—to count toward the 5% New York Public Library and a re- memoir: “I really don’t get the tax gizes to the public” for “causing
hen it came to investing, no spending requirement. search center for the molecular and laws that allow the wealthy to de- disappointment and grief among the
m e
one was smarter than Lewis More than 90% of private founda- genomic studies of plants at the duct the money they give to create people.” She said there is “no timeta-
B. Cullman, who died June 7 tions are set up to last in perpetuity, New York Botanical Gardens. Cull- private foundations yet never re- ble” for picking the bill back up.
at 100. In 1964 he engineered the but Lewis Cullman was never one to man’s greatest passion was Chess in quire those foundations to pay out The suspension is significant.
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first leveraged buyout, enabling him follow the crowd. Although he knew the Schools, a program that has the principal that earned the deduc- Hong Kong’s political system is
to acquire Orkin Exterminating Co., he could produce impressive finan- taught the game to more than tion. . . . To me that’s just nuts: bad rigged to ensure pro-Beijing lawmak-
a company worth $62 million, with cial returns by investing in Wall 500,000 economically disadvan- tax policy, bad social policy, and ers hold a legislative majority. In
only $1,000 cash. In 1977 he bought Street, he believed he’d achieve a taged New York City public-school morally indefensible in the bargain. practice the chief executive answers
a small calendar company, expanded students and helped hundreds of . . . Foundations should be required to Beijing, not to voters. Ms. Lam’s
co Fo
and rebranded it as At-A-Glance, and them attend college. to spend down their assets, all of announcement means that Hong
sold it for $550 million. Lewis Cullman believed it Like Julius Rosenwald (1862-1932), them, within 50 years of their Kong protesters forced Beijing and
Cullman then turned his attention Cullman also did everything he could founding.” the chief executive to retreat.
to philanthropy. How does a smart was a more effective form to urge fellow philanthropists to fund Cullman succeeded in giving all of The question is whether the vic-
investor act when his goal is to proof philanthropy than a charity in the present. He talked his money away during his life, but tory will stick. “We don’t like the
mote the long-term betterment of about how fun it is to give, wrote that doesn’t mean his giving has word ‘temporary,’ ” pro-democracy
the world? perpetual foundation. books and articles on the importance stopped yielding benefits. Millions of legislator Claudia Mo said. “It’s just
The usual answer is the perpetual of current giving, and warned that people will continue to be touched delaying the pain.” Ms. Lam “said
private foundation, which allows do- funds in a perpetual private founda- by it: not just the direct beneficia- ‘suspend,’ meaning to put it to a
nors to invest their capital and far better return for the public good tion were unlikely to be spent after a ries, but all those whose lives will be pause,” said Edward Chin, a hedge-
spend the income for charitable by going all-in and investing his en- donor’s death because professional improved by their work and per- fund manager who has rallied sup-
causes in perpetuity. The U.S. tax tire principal in charitable endeav- trustees have a vested interest in sonal growth. Like compound inter- port for pro-democracy activists
code encourages the creation of such ors. So after he acquired his wealth, preserving assets to preserve their est, these secondary beneficiaries among Hong Kong finance workers.
foundations by giving full tax bene- he set off to spend it all—more than jobs. His “spend now” philosophy will pass on the benefits to others, “A pause is not good enough.”
n-
fits to the donors and by requiring $500 million—while he was still was also embraced by Bill Gates and in an ever-expanding ripple. That’s Protesters’ demands have ex-
them to spend only 5% of their as- alive. Warren Buffett. how smart money works—its impact panded along with their numbers. Mr.
sets each year. If their investments Cullman and his then-wife, Doro- Cullman urged lawmakers to keeps growing and growing. It’s a Law said one goal now is to force Ms.
earn a decent rate of return, the thy (who died in 2009), endowed change incentives so that more char- lesson the rest of us—and Con- Lam’s resignation. At several points
no
principal need never be spent on innovative programs at New York’s itable resources would be spent up gress—would be wise to heed. on Sunday protesters shouted in uni-
charity. The law even allows admin- most venerated institutions—among front. It rankled him that the gov- son for her to step down. Sunday’s
istrative expenses—including sala- them education programs at the ernment wasted money giving tax Ms. Madoff is a professor at the marchers also demanded accountabil-
ries paid to family members and Museum of Modern Art, a fellow- benefits for funds that never make it Boston College Law School. ity for police violence Wednesday,
when officers fired more than 150
canisters of tear gas—more than they
A Hawaii Democrat’s Surprising Views used during the 79 days of the pro-
democracy Umbrella Movement in
2014. They also fired beanbags and
By Michael Tracey leagues, and staunchly opposes im- from that of Speaker Nancy Pelosi, Perhaps because of her reliance on rubber bullets into the crowd. More
peachment proceedings against whose reticence about impeachment, alternative media, Ms. Gabbard is un- than 70 were injured.
O
New York President Trump, which she warns Ms. Gabbard says, is rooted in parti- usually sympathetic to conservatives “What happened Wednesday is re-
f all the Democratic presiden- would “tear the country apart.” san calculation: “That’s exactly what who complain of social-media cen- ally what brought so many people to
tial candidates, Rep. Tulsi “The whole reason the Mueller in- people are sick and tired of.” sorship. Asked about YouTube’s pe- the streets—parents and the politically
Gabbard may most defy easy vestigation started was to investi- Ms. Gabbard, who represents Ha- nalization of right-wing personality inactive majority—to stand up for the
categorization. She fuses appeals to gate collusion,” she said in an inter- waii’s Second District, also doesn’t Steven Crowder, Ms. Gabbard says: “I young people,” said Esther Chung, 52,
national honor—drawn from her view between recent campaign stops belabor her sex, her ethnic back- think it points to the dangerous level a secondary-school teacher. Moon
Army service in Iraq—with reso- in Manhattan. The special counsel ground (Samoan) or her religion Kwok, a social worker who says she’s
lutely left-wing policy prescriptions, “was very clear in his report that (Hindu). “I think identity politics, not normally political, agreed: “This
especially on foreign affairs. Yet she there was no evidence found that again, is one of those things that is Tulsi Gabbard opposes time is different. We saw the younger
appears frequently on Fox News, has collusion took place.” But she is at unfortunately being used to divide generation fighting for their lives, for
earned plaudits from Republican col- pains to distinguish her reasoning us. . . . [it’s] a dangerous road to impeachment and dislikes their freedom. We had to do some-
walk down,” Ms. Gabbard told me in identity politics. And she’s thing about it.”
a podcast interview, lamenting fel- Sunday’s protesters went out of
low Democrats and the media for of- running for president. their way to demonstrate their
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY ten treating Americans “as though peaceful intentions. Several signs
Rupert Murdoch Robert Thomson we are the sum of the color of our proclaimed that they were “not riot-
Executive Chairman, News Corp Chief Executive Officer, News Corp
skin.” of power that these platforms have, ers.” They assiduously picked up
Matt Murray William Lewis
Editor in Chief Chief Executive Officer and Publisher
Since she launched her campaign and how they can seemingly arbi- their trash. The densest crowds mi-
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT:
in January, liberal media outlets trarily make their own rules, and raculously parted to let ambulances
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; have scorned her. NBC News pub- make decisions about what kind of pass. On Saturday a man had fallen
Jason Anders, Chief News Editor;
Kamilah Mitchell-Thomas, Chief People Officer; lished an article alleging that she free speech is acceptable.” It and died after hanging up a protest
Edward Roussel, Chief Innovation Officer;
Thorold Barker, Europe; Elena Cherney, Coverage
Christina Van Tassell, Chief Financial Officer
had the backing of “Russia’s propa- amounts to a kind of monopoly, she banner near Pacific Place, a tragedy
Planning; Andrew Dowell, Asia; Alex Martin,
OPERATING EXECUTIVES: ganda machine.” The Daily Beast argues: “If you get cut out from You- invoked frequently throughout the
Writing; Michael W. Miller, Features & Weekend;
Emma Moody, Standards; Shazna Nessa, Visuals;
Kenneth Breen, Commercial; charged that she was being “boosted Tube, there’s nowhere else you’re go- day. Demonstrators carried lilies and
Jason P. Conti, General Counsel; by Putin apologists.” ing to be able to go.” baby’s breath and heaped the flowers
Matthew Rose, Enterprise; Michael Siconolfi,
Tracy Corrigan, Chief Strategy Officer;
Investigations; Louise Story, Strategy and Interim
Frank Filippo, Print Products & Services; But she’s found support from a Mr. Rogan’s support has paid off. at a makeshift memorial.
Product & Technology; Nikki Waller, Live Kristin Heitmann, Chief Commercial Officer; popular alternative-media figure, “There were people there today who By Sunday night the mood felt less
Journalism; Stephen Wisnefski, Professional News Nancy McNeill, Corporate Sales; Joe Rogan, who has hosted Ms. said they were there because they tense, more hopeful, perhaps even
Gerard Baker, Editor at Large Thomas San Filippo, Customer Service;
Josh Stinchcomb, Advertising Sales; Gabbard twice on his video and au- saw me on Joe Rogan,” Ms. Gabbard cautiously celebratory. Hong Kong’s
Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Chief Marketing Officer; dio podcast—consistently a top- says of her New York stops. “There protesters still have plenty to fear.
Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International ranked offering on YouTube and are a lot of folks who are not typical But the past week has seen an ex-
Barron’s Group: Almar Latour, Publisher
iTunes. Like Ms. Gabbard, Mr. Ro- Democratic primary voters who are traordinary “revival of activism,” Mr.
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; gan is politically heterodox. He’s en- now going to be Democratic primary Law observes. “It means what I fear
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head dorsed libertarian Republican Ron voters.” the most is not true.”
EDITORIAL AND CORPORATE HEADQUARTERS: Paul, shuns ideological labels, and
1211 Avenue of the Americas, New York, N.Y., 10036 has a following among right-leaning Mr. Tracey is a journalist in Jer- Ms. Melchior is a Journal editorial
Telephone 1-800-DOWJONES
listeners. sey City, N.J. page writer.
A18 | Monday, June 17, 2019 * *** THE WALL STREET JOURNAL.
WORLD NEWS
Protesters Hanging Up the Yellow Vests

French rallies against essence,” says Jacline Fading Out
Mouraud, a 52-year-old accor-
government peter out dionist from Brittany, who
Turnout at weekly yellow-vest
protests has dwindled to a
amid infighting and sparked the yellow-vest unrest
trickle.
in October by posting online a
economic uptick video that went viral, accusing 300 thousand
Mr. Macron of not “giving a
BY NOEMIE BISSERBE darn” about the economic
FRANCOIS NASCIMBENI/AGENCE FRANCE-PRESSE/GETTY IMAGES

struggles of everyday com-
PARIS—For months, Yves muters.
Garrec dedicated his Saturdays In the end, the yellow-vest 200
to slipping on a yellow road- movement devoured itself.
safety vest and hitting the Prominent protesters publicly
streets in protest. Not any turned on each other, creating
more. a leadership vacuum that
100
“I’ve put my yellow vest made it hard to translate pub-
back in the car glove compart- lic rage into political action.
ment,” the 60-year-old chauf- That failure is apparent,
feur says. former protesters say, in the
Seven months after waves movement’s struggle to field 0
of demonstrations first candidates for the European
Nov. 2018 Jan. ’19 June
washed over France, the yel- Parliament elections, which
low-vest movement has run were held at the end of May. Source: French Interior Ministry
out of steam. Shops that once Yellow-vest candidates gar-
boarded their windows every nered less than 1% of the vote. Protesters in their signature yellow road-safety vests marched past diners in May in Reims, France. sées Avenue.
Saturday, bracing for yellow- The flagging support has Mr. Macron made a burst of
vest riots, are humming again. created an opening for Mr. sumer confidence has signifi- Still, those disturbances are lence at protests. concessions at year’s end, call-
President Emmanuel Macron Macron’s government to re- cantly picked up since the a far cry from the hundreds of The protests began in No- ing off the fuel-tax increase
is rebooting the economic gain its footing. On Wednes- beginning of the year. thousands who once brought vember as an act of defiance and boosting the incomes of
overhauls that once fueled yel- day, Prime Minister Édouard Given the volatile nature of France to a standstill. against the government’s plan minimum-wage earners.
low-vest ire. Philippe detailed plans to the movement, violence could Ingrid Levavasseur, a 32- to raise fuel taxes. It then be- Still, every week a small
On Saturday, only 7,000 overhaul the unemployment erupt again. Some 2,500 pro- year-old single mother, was came a rallying cry against Mr. group of yellow vests contin-
demonstrators took to the benefits and pension system. testers and 1,800 police offi- targeted by violent yellow-vest Macron. Tens of thousands of ues to take to the streets de-
streets across the country, ac- He also pledged to deliver on cers were injured during dem- demonstrators for her attempt people started protesting ev- manding more direct democ-
cording to the French Interior promises to cut taxes for the onstrations, according to the to run for a seat in the Euro- ery Saturday throughout the racy, among other things.
Ministry. That is compared working middle class. Interior Ministry. Some yellow pean Parliament as the move- country demanding higher Ms. Mouraud, who lighted
with a quarter-million people There are also signs that vests are planning to block ment’s standard-bearer. Today, wages, as well as greater so- the yellow-vest fuse with her
on Nov. 17 when the move- Mr. Macron’s earliest over- roads across the country next she no longer considers her- cial and fiscal justice. viral video, takes a philosophi-
ment began as a protest hauls, including a loosening of Saturday in a bid to create dis- self a yellow vest. In December, the protests cal view: “There are only con-
against fuel taxes. labor-market rules, have be- ruption and recapture people’s “For me, it’s over,” says Ms. morphed into riots that ram- fetti left, but confetti can be
“The movement has lost its gun to lift the economy. Con- attention. Levavasseur, who opposes vio- paged down the Champs-Ély- hard to sweep off the streets.”
.
ly
Notre Dame Celebrates First Mass Since Fire
on North Korea Lobs
Insults at U.S.
us l,
But Shields Trump

al a
e
BY TIMOTHY W. MARTIN clear talks, a standstill that

ci on
leaves in place sanctions

SEOUL—A year after North bruising the country’s econ-
Korean leader Kim Jong Un’s omy. Eight of the foreign-min-
historic first meeting with istry missives have occurred
President Trump, his govern- since May 1.
er rs
ment is again hurling insults Pyongyang appears to be

at the U.S.—while keeping Mr. recalibrating its nuclear-nego-
Trump out of the rhetorical tiating strategy, North Korea
line of fire. watchers say.
m e
During the eight months The pause in talks differs

between the leaders’ summits from the scene a year ago. In
in Singapore and Vietnam, the Singapore, Messrs. Trump and
m rp
North Korean foreign ministry, Kim exchanged a handshake

despite diplomatic squabbles, and pledged to improve ties.
published just a few attacks on After the Hanoi summit’s
Washington. abrupt ending, North Korea
But since leaving Hanoi in remained quiet until April 18,
co Fo
early March without a nuclear when it slammed Mr. Pompeo,

deal, North Korea has un- calling for a new negotiating
leashed at least 10 reports counterpart from Washington.
lashing out at senior Trump The string of foreign-minis-
KARINE PERRET/PRESS POOL
administration officials and try statements has since ad-

their maneuvers. dressed a seized North Korean
Mr. Trump is the focal point cargo ship, Pyongyang’s hu-
of the isolated regime’s top- man-rights violations and U.S.
down negotiating strategy military strategy in the India-
and, despite the insults, Mr. Pacific region.
Kim has sought to keep him The wording, though
engaged. On Tuesday, Mr. pointed, has refrained from
Trump said he received a
PARIS—Two months to the tion. Many of the people who bris and yellow construction ve- the structure isn’t expected to “very personal, very warm”
n-
day since fire engulfed Notre attended work in the cathedral. hicles. At times, worshipers took be completed for at least an- letter from Mr. Kim.
Dame Cathedral and destroyed They were touched. It’s their off their hard hats to read from other three months, according The foreign ministry, mean-
While Mr. Trump got
much of its roof and vaulted house,” Archbishop Aupetit said the Bible or receive Communion. to cathedral spokesman André while, has been firing off an- a ‘warm’ letter, John
ceiling, the archbishop of Paris after the Mass. “For believers, Firefighters took several Finot. gry dispatches, keeping the
Bolton was called a
no
offered the first Mass in the it’s a moment of hope. The ca- hours to extinguish the blaze The square in front of the ca- messaging centralized and
charred building that is still in thedral will be back,” he added. that started on April 15 and thedral and other areas around more official than the routine ‘human defect.’
danger of partial collapse. Many of those taking part in raged across the roof of the ca- the building remain closed to diatribes in state-media com-
As work continues to stabi- the Mass in Notre-Dame des thedral, toppling its spire. Since the public. mentaries.
lize the cathedral’s structure, Sept Douleurs—a chapel inside then, workers have been seeking Environmental campaigners U.S. National Security Ad-
Archbishop Michel Aupetit cele- the cathedral that housed the to stabilize the three facades have warned of the pollution viser John Bolton is a “human making direct threats on the
brated a Mass on Saturday for Crown of Thorns, one of Chris- that were attached to the now- caused by the fallout from hun- defect,” the ministry declared U.S. or against Mr. Trump, and
a group of around 30 worship- tendom’s most important rel- absent roof. Between 60 and dreds of tons of lead melting on May 27 after he asserted a many of the attacks haven’t
ers wearing white hard hats. ics—were priests or canons. 150 workers are on site each when the roof burned. recent weapons launch by been shared domestically, an
“It was a moment of emo- They stood close to burned de- weekday, and work to secure —Nick Kostov Pyongyang violated a United indication of the North’s un-
Nations testing ban. willingness to commit to a
When Secretary of State specific course of action, said
Mike Pompeo suggested in Rachel Lee, a former senior
Back in Italy, Amanda Knox Assails Media April that working-level talks
could conclude by year’s end,
North Korea complimented his
talents in “fabricating stories
North Korea analyst for the
U.S. government.
“They are keeping the door
open to dialogue,” said Ms.
BY ERIC SYLVERS got a 25-year sentence. like a fiction writer.” Lee, who now works at NK
Prosecutors argued that And this month, Pyongyang News, a group covering North
Amanda Knox, the Ameri- Ms. Knox and Mr. Sollecito questioned Washington’s com- Korea.
can college student who was took part with another man mitment to the Singapore North Korea has deployed
twice convicted and twice ac- in a sex game that went awry pact, in which the two sides garish state-media attacks be-
quitted of murdering her and resulted in the murder of pledged to bring peace to the fore. In 2005, Pyongyang called
British roommate in the Ital- Meredith Kercher, who was Korean Peninsula with denu- President George W. Bush a
ian city of Perugia in 2007, found with multiple stab clearization and new relations. “philistine whom we can never
made a passionate defense of wounds and her throat “There is a limit to our pa- deal with.” The regime hurled
her innocence during her slashed. tience,” the Kim regime said. racist slurs at President
first visit to Italy in eight An appeals court over- The missives, more one- Obama. In the early 2000s, Mr.
years. turned the ruling against Ms. liner than red alert, reflect Bolton was called an “animal
EMANUELE CREMASCHI/GETTY IMAGES
“My innocence didn’t save Knox and Mr. Sollecito in how North Korea remains running about recklessly.”
me because the prosecutors 2011, after which Ms. Knox, open to further talks but has Those public offensives
and the media created a story who had spent almost four few options—including risky were largely ignored by Wash-
and a version of me…on years in prison, left Italy, weapons tests—to bend nego- ington, though Mr. Trump has
which people could overlay never to return until this tiations in its favor. reacted to North Korean state
their fantasies, fear and week. A judge ordered a sec- For Pyongyang, the state media in the past. In Septem-
moral judgment,” Ms. Knox, ond trial—Italy has no blan- dispatches must convey frus- ber 2017, Mr. Kim described
31, said at a conference in ket provision to prevent tration while tiptoeing around Mr. Trump as “the mentally
Modena, northern Italy, on somebody from being tried wording that would signal deranged U.S. dotard.” Hours
Saturday in a statement in twice for the same crime— rash military action or upset later, Mr. Trump responded
Italian. Amanda Knox speaking in Modena on Saturday about her ordeal. that ended with a conviction Mr. Trump. with a tweet calling Mr. Kim
“People liked that story of in 2014. The following “The thing that North Korea “a madman who doesn’t mind
the dirty, psychopathic man- turn. Paparazzi crowded during a session titled “Trial year, Italy’s highest appeals fears more than pressure is be- starving or killing his people.”
eater Foxy Knoxy,” she said, around her on Thursday when by Media.” court threw out the verdict. ing ignored,” said Gordon Flake, The two leaders exchanged
using a moniker the British she arrived at Milan’s Linate An Italian court convicted A man from Ivory Coast, a Korea specialist at the Perth barbs in early January 2018
press gave her soon after the airport and the press has Ms. Knox in 2009, sentencing Rudy Hermann Guede, was USAsia Centre in Australia. about nuclear buttons on their
crime. been following her every her to 26 years in prison. Her convicted of Ms. Kercher’s The attacks have increased desks. But when relations
Italian media have been move. She spoke on Saturday boyfriend at the time of the murder and sexual assault in as the Kim regime continues warmed, the two countries
captivated by Ms. Knox’s re- at a criminal law conference murder, Raffaele Sollecito, separate proceedings. to fume over gridlocked nu- were quick to affirm closeness.
TECHNOLOGY: INVESTORS URGE AI STARTUPS TO INJECT EARLY DOSE OF ETHICS B4
BUSINESS & FINANCE

© 2019 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Monday, June 17, 2019 | B1
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Goldman Ups Private-Equity Ante Investors

Diverge in
Firm to combine four companies, real estate and The move is the clearest will boost a stock price stuck the 1980s. In its last big push,
other hard-to-access deals, sign yet that David Solomon, in neutral. Goldman shares in the 2000s, it put billions of
arms to create a unit
nearly as big as KKR,
creating a new unit and plan-
ning a fundraising blitz, ac-
cording to people familiar
who took over as chief execu-
tive last fall, intends to put his
mark on the firm. Goldman
trade roughly where they did
four years ago, during which
time JPMorgan Chase & Co.’s
dollars of its own money into
megabuyouts. This time
around, it is seeking to raise
Sizing Up
plans fundraising blitz
BY LIZ HOFFMAN
with the matter. Goldman is
trying to grow the kind of
steady, income-generating
was a private partnership for
most of its history, but it is
starting to look more like a
have gained 60%.
Goldman’s historical
strengths in investment bank-
money from outside investors
and earn fees for managing it,
producing the kind of steady,
Trade
business that investors like. modern corporation under Mr. ing and trading aren’t grow- low-risk revenue that share- BY AKANE OTANI
Goldman Sachs Group Inc. The division’s exact makeup Solomon and the crew of in- ing. Private investing, though, holders favor. AND GUNJAN BANERJI
is building a mini-Blackstone will take shape over the next vestment bankers he has pro- is exploding as investors shift “We’re developing a com-
Group LP, hoping that creating few months, but it is likely to moted to senior posts. away from plain-vanilla stocks prehensive plan to grow” pri- Markets are sending con-
an internal private-equity have around $140 billion in as- Executives hope recent and bonds to seek higher re- vate investing, Goldman Presi- flicting signals about how big
powerhouse will boost its flag- sets, based on the current size changes under Mr. Solomon— turns in buyouts, real estate, dent John Waldron said in a threat the global trade rift
ging stock price. of the units, making it nearly which include multiyear bud- infrastructure projects and be- May. “This will be a multiyear presents, underscoring the dif-
The Wall Street firm is pull- as big as KKR & Co. and about gets and planning efforts, in- spoke lending. effort to evolve this business ficulty investors face in sizing
ing together four separate one-third the size of Black- creased shareholder disclosure Goldman has been in the into more fee revenue and a up the fallout from the U.S.
units that invest in private stone. and hard financial targets— private-equity business since Please turn to page B2 and China’s spat.
As the trade standoff has
intensified and the Federal Re-
IPO Rush Rolls On Despite Recent Flops

serve has suggested its next
move might be a rate cut,
some investors have turned to
safer assets, sending Treasury
BY MAUREEN FARRELL The eagerly anticipated initial public offerings of Zoom Video yields to their lows for the
AND CORRIE DRIEBUSCH Communications year. But stocks have contin-
ride-hailing companies Lyft and Uber haven’t gone +179% overall ued to climb toward fresh
The IPO market faced its well, but other technology IPOs have thrived. highs, with the S&P 500 fin-
first major test since the disap- ishing Friday just 2% off a re-
pointing debuts of Uber Tech- cord.
nologies Inc. and Lyft Inc. and Share-price performance of large tech IPOs Investors also haven’t
.
passed with flying colors. rushed to take out protection
ly
Investors eagerly snapped Among offerings that raised more than $200 million 50% in the options market against
up shares of three companies First-day performance Overall potential declines—a some-
that went public last week—cy- what unusual development,
bersecurity company Crowd- on PagerDuty since stocks tend to fall along-
Strike Holdings Inc. on Nas- Circle size reflects amount raised Revolve Group side bond yields when inves-
daq, online pet-supply retailer tors believe the economy is
Chewy Inc. and freelance-ser- $2 heading toward a soft patch.
$1 billion
vices marketplace Fiverr In- Yields fall as bond prices rise.
us l,
billion
ternational Ltd., both on the One yardstick measuring
New York Stock Exchange—and stock swings, the Cboe Volatil-
al a
e
pushed them all up 50% or ity Index, has fallen 40% in
more. 2019, on pace for its biggest
The stellar performance has, 00% annual decline in a decade.
ci on
for now at least, put to rest Volatility measures tracking

questions that have hung over Revolve Group crude oil and currencies have
the market since the highly an- +89% CrowdStrike Holdings also dwindled this year.
ticipated initial public offerings first day +89% The disconnect between
of ride-hailing companies Uber Jumia Technologies
markets points to lingering
er rs
and Lyft this spring proved to +76% debate among investors about
be duds. Both stocks currently first day just how much the U.S. and
trade below their IPO prices. Jumia Technologies China’s trade fight will hit
With Slack Technologies consumer spending, invest-
m e
Inc. expected to land a valua- Chewy* ment and other drivers of eco-
tion in excess of $18 billion Tradeweb Markets nomic growth.
when it debuts this week on 50% “Who’s right? I want to go
m rp
the Big Board—more than dou- with the bond market at this
Pinterest
ble its private valuation just Lyft stock
point,” said Zhiwei Ren, a
last year—it is becoming ap- closed 8.7% +44% portfolio manager at Penn Mu-
parent that investors are still above its tual Asset Management. “I
hungry for newly public com- offer price don’t see equities making sig-
co Fo
panies as long as they have on its first

Uber raised $8 billion Headhunter Group nificant new highs.”
swift growth and, ideally, prof- day, but has
but its shares have Mr. Ren has bought shorter-
its. The IPO market is expected struggled dated bonds in anticipation of
languished below Fastly
to set a record by dollars since. the Fed cutting interest rates.
the offer price.
raised in 2019. He added that he doesn’t see a
Overall, 2019 technology trade truce between the two
IPOs are up roughly 30% on av- 0% largest global economies com-
erage through Friday’s close, Uber Technologies ing soon.
according to Dealogic. That The Fed will conclude a
surpasses the Nasdaq Compos- GSX Techedu two-day policy meeting
ite’s 18% rise in 2019. Ten out Zoom raised Pinterest raised Lyft Wednesday, where it is ex-
of the year’s 26 tech IPOs are $864 million. $1.6 billion.
pected to hold interest rates
up more than 50% from their SciPlay steady and potentially offer
April May June
IPO prices. –16% clues about the likelihood of
n-
“The last few weeks have Note: First-day and overall performance based on percentage change from IPO price. *Chewy’s first day of trading was Friday. Please turn to page B11
Please turn to page B4 Sources: Dealogic (amount raised); FactSet (performance) Peter Santilli/THE WALL STREET JOURNAL
no
PERSONAL TECHNOLOGY | By David Pierce

Site Accuses Google of Lifting Lyrics
No Travel App Is Perfect BY ROBERT MCMILLAN
But These Will Help Genius Media Group Inc.

depends on Google’s search
engine to send music lovers to
The low typed “coffee” into Google its website stocked with hard-
point, if I had Maps. Sure, I could have to-decipher lyrics to hip-hop
to pick one, sorted through the hundreds songs and other pop hits.
was probably of reviews and the tips from Now Genius says its traffic
Starbucks. It friends and co-workers. But is dropping because, for the
was a Sunday given the amount of avail- past several years, Google has
morning, and I had just able data about me and all been publishing lyrics on its
landed in Hong Kong—a city the places I could visit, own platform, with some of
filled with Michelin-starred travel apps ought to be bet- them lifted directly from the
restaurants and legendary ter guides automatically. music site.
MACKENZIE SWEETNAM/GETTY IMAGES FOR HUFFER
coffee shops. Yet there I My perfect, personalized, Google denies wrongdoing.

stood, ordering a venti cold AI-powered travel app would Still, Genius’s complaints offer
brew and a blueberry muffin start helping me the minute a window into the challenges
in the Chipotle of caffeine. I decided to travel, maybe small tech companies can face
How did I end up here? I Please turn to page B4 when the unit of Alphabet Inc.
starts offering competing ser-
vices on its platform.
INSIDE The complaints come amid

mounting concerns over the
business practices of Google
and other tech giants. The
Wall Street Journal recently
reported that the Justice De-
partment is gearing up for a The business practices of Google and other tech giants face greater scrutiny. The rapper Desiigner.
new antitrust probe into the
search company. able evidence again and again subtle change to some of the search-result squares called
Genius said it notified that they are displaying lyrics songs on its website, alternat- “information panels,” are li-
Google as far back as 2017, and copied from Genius,” said Ben ing the lyrics’ apostrophes be- censed from partners, not cre-
again in an April letter, that Gross, Genius’s chief strategy tween straight and curly sin- ated by Google. “We take data
copied transcriptions appear officer, in an email. The com- gle-quote marks in exactly the quality and creator rights very
on Google’s website. The April pany said it used a water- same sequence for every song. seriously and hold our licens-
letter, a copy of which was marking system in its lyrics When the two types of ing partners accountable to
ENTERTAINMENT BUSINESS NEWS viewed by the Journal, warned that embedded patterns in the apostrophes were converted to the terms of our agreement,”
Disney overshadows Chinese biotechs that reuse of Genius’s tran- formatting of apostrophes. Ge- the dots and dashes used in Google said.
scriptions breaks the Ge- nius said it found more than Morse code, they spelled out After this article was pub-
rivals as reboots looking to go global nius.com terms of service and 100 examples of songs on the words “Red Handed.” lished online Sunday, Google
and sequels poach industry talent violates antitrust law. Google that came from its site. In a written statement, issued a second statement to
sputter at box office B2 in the U.S. B3 “Over the last two years, Starting around 2016, Ge- Google said the lyrics on its say it was investigating the is-
we’ve shown Google irrefut- nius said, the company made a site, which pop up in little Please turn to page B2
B2 | Monday, June 17, 2019 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A Automobiles. .......... B12 Peloton Interactive.....B4

Alphabet......................B1 Fiverr International....B1 Poshmark .................... B4
Analytics Ventures.....B4 G Postmates...................B4
Andreessen Horowitz.B2 General Atlantic..........B4 R
B Genius Media Group...B1 Renault......................B12
Bayer...........................B3 Goldman Sachs Group B1
S
Beyond Meat...............B4 H
Salesforce ................... B4
Blackstone Group ....... B1 Hancock Whitney........B7 Slack Technologies ..... B1
Boeing.........................A1 Hutchison China Subaru.........................B6
C MediTech...................B3
T
Chemical Financial......B7 J
Tableau Software ....... B4
Chewy..........................B1 JPMorgan Chase B1, B11
Target..........................B3
Clark County Public K
Health.......................A3 TCF Financial...............B7
KKR..............................B1 Thornburg Investment
Comcast.......................B2
CrowdStrike Holdings.B1 L Management.............B4
Cummins.....................A6 Lyft..............................B1 Triangle Petroleum...B11
D M U
Daimler........................B6 Match Group...............B4 Uber Technologies ...... B1
Deutsche Bank............B4 MidSouth Bancorp......B7 W
E N Walt Disney................B2
Emergence Capital......B4 NCR..............................B3 WeWork ...................... B4
F Nissan Motor..............B6 Z
Fiat Chrysler P Zai Lab ........................ B3
INDEX TO PEOPLE
COLUMBIA PICTURES/EVERETT COLLECTION (2)

A al Husseiny, Mohammed P--Q
Badawy ..................... B7
Andreev, Andrey.........B4 Pazdur, Richard...........B3
B I al Qubaisi, Khadem .... B7
Iacovoni, Fred............B11 R
Bach, David.................R6
Ballantyne, Darryl ...... B2 J Rhoades, Ron............B11
Berglund, Natalie........R6 Jaresko, Natalie..........B2 Ritter, Gordon.............B4
Bricker, Jonathan........R6 K Roell, Andreas ............ B4
C Kania, Marek...............B3
Roper, Barbara..........B11
Cavanaugh, Karyn.....B12 Keller, Daphne.............B2
Clerkin, Mark .............. B4 Kim, Soo......................R6 S
The Sony film captured the top spot at the weekend box office but it only took in a meager $28.5 million in the U.S. and Canada.
Cummings, Missy.......B6 Kirpalani, Susheel.......B2 Shah Goda, Gopi.......R10
‘Men in Black’ Reboot Fails to Soar

D L Shiller, Robert.............R6
.
Diamond, Ilana............B4 Stango, Victor...........R10
Liersch, Michael........R10
ly
F Lineberger, Tom..........A6 T
Fishkin, Rand..............B2 M Tipp, Robert..............B12
BY R.T. WATSON
G Tobias, Eric..................B4
McKenzie, Craig........R10
Estimated Box-Office Figures, Through Sunday
Goldstein, Dan..........R10
Gross, Ben...................B1
Miller, Jim...................R6
Muilenburg, Dennis....A1
W
on
Waddell, Danika..........R6
So far this summer, studios
not named Walt Disney Co. SALES, IN MILLIONS
Murphy, Tom.............B12 Weber, Ellen................R6 are failing to capture moviego- FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE
H
ers’ attention in a significant
us l,
Hawley, Jamie............A2 O Z way.

1. Men in Black Sony $28.5 $28.5 --
International
Hedrick, Eric................B3 Olney, Matt.................B7 Zayed, Mansour bin....B7 Attempting to capitalize on
al a
2. The Secret Life Universal $23.8 $92 -49

e
Hounanian, Cody.........R8 Oyler, John..................B3 Zinman, Jonathan.....R10 the weekends in which Disney
isn’t releasing one of its block- of Pets 2
busters, rivals have tried to
ci on
3. Aladdin Disney $16.7 $263.4 -32
Puerto Rico Board stand out with sequels and re-

makes of their own once-suc-
cessful franchises.
The results have been medi-
4. Dark Phoenix
5. Rocketman
Twentieth
Century Fox
Paramount
$9
$8.8
$51.8
$66.1
-73
-36
Sets Creditor Deal ocre at best. *Friday, Saturday and Sunday Source: Comscore
er rs
This weekend was no differ- An alien sidekick

ent as Sony Corp.’s “Men in
BY ANDREW SCURRIA tage of legal arguments that Black International” reboot starred Samuel L. Jackson, nally produced by Twentieth bumper year, according to
bonds sold since 2012 pushed took the top spot with a mea- opened to $21.7 million. Century Fox, which is now Comscore. Whether the indus-
m e
Puerto Rico’s financial su- Puerto Rico’s debt load above ger $28.5 million in the U.S. The first three installments owned by Disney—bombed in try manages to match or sur-
pervisors struck a deal with the ceilings contained in its and Canada, according to pre- in the “Men in Black” series— its opening. “Pets 2” also fell pass last year’s level will de-
creditors owed $3 billion that constitution and therefore liminary studio estimates. all starring Will Smith— short of its predecessor in its pend a great deal on how well
m rp
sets out a path for restructur- shouldn’t be paid back. In a close second place, opened to more than $50 mil- opening. the rest of Disney’s program-
ing $35 billion in debt obliga- Investors holding general- “The Secret Life of Pets 2,” lion their first weekends. This Last month, the Warner ming does.
tions tied to the central gov- obligation bonds that have from Comcast Corp.’s Univer- latest iteration stars Chris Bros. movie “Godzilla: King of The studio still has two
ernment and scaling back debt been challenged could settle sal, made $23.8 million over Hemsworth and Tessa Thomp- the Monsters,” also a sequel, more big summer plays to
payments over the next 30 their claims for between 35 the weekend, bringing its two- son, who looked to recapture opened poorly. make with “Toy Story 4,” out
co Fo
years by half. and 45 cents on the dollar, or week total to $92 million. their chemistry from another Sony will look to regain next weekend, and then “The
The U.S. territory’s over- they can continue litigating In third place, Disney’s live- cinematic sequel: “Thor: Rag- some traction when its highly Lion King” live-action remake
sight board said the agree- for more after Puerto Rico ex- action reboot of “Aladdin” narok,” from Disney’s Marvel anticipated webslinger sequel out July 19. Both films are ex-
ment marks an acknowledg- its from bankruptcy. made $16.7 million domesti- Studios. “Spider-Man: Far From Home” pected to perform well.
ment by bondholders “that General-obligation bond- cally, bringing it to a respect- Potentially softening the headlines over the July 4 Disney kicked off its sum-
Puerto Rico’s difficult financial holders whose claims aren’t in able four-week total of $263.4 blow to Sony, the latest “Men weekend. Universal also still mer domination by releasing
situation requires a meaning- dispute would receive at least million. in Black” cost half as much as has “Fast & Furious Presents: “Avengers: Endgame,” which
ful reduction in its debt bur- 64 cents on the dollar and po- Premiering this weekend it did to produce the previous Hobbs & Shaw” to look for- has risen to become the sec-
den to a sustainable level.” tentially more depending on alongside “Men in Black,” installment, 2012’s “MIB 3.” ward to, which is out in Au- ond-highest grossing film of
The proposed settlement, the outcome of the postbank- AT&T Inc.’s Warner Bros. “Men in Black International” gust. all time in the domestic mar-
announced Sunday, covers $18 ruptcy litigation. “Shaft” sequel struggled, grossed $73.7 million overseas. But box-office totals in ket with $830.5 million. The
billion in bonds that were Susheel Kirpalani, a lawyer amassing a paltry $8.3 million. Last week, the latest X-Men North America are down 7.1% film also ranks second all-time
guaranteed with Puerto Rico’s representing hedge funds that The 2000 version, which also sequel “Dark Phoenix”—origi- when compared with 2018’s internationally.
full faith and credit, including signed on to the agreement,
n-
the largest junk-rated sale of said it provides bondholders

municipal debt ever, a $3.5
billion issuance in 2014.
The board said it would
“the opportunity to realize eq-
uitable recoveries based on
their relative priority and
Lyrics Site Strike a Chord
Genius used a watermarking system that embedded
providing lyrics and facts
about songs that it publishes
and licenses under agreement
no
patterns in the formatting of apostrophes in its lyrics.

submit a debt-adjustment plan
in Puerto Rico’s court-super-
vised bankruptcy for approval
rights.”
Other government claim-
ants, such as suppliers and
Voices Ire Lyrics from Genius
with music publishers.
Genius clients include the
music-streaming website Spo-
within 30 days, foreshadowing
a potential high-stakes battle
over repayment terms.
lower-ranking unsecured cred-
itors, would recover 9 cents on
the dollar.
Over Google Straight
tify Technology SA and Apple
Inc. Genius also earns money
through different initiatives,
Gov. Ricardo Rosselló’s top “These were tough negotia- including advertising and
finance adviser, Christian So- tions and we are confident we Continued from the prior page sponsored videos on YouTube.
brino, said the government reached the best deal possible sue raised by Genius and Genius first became suspi-
doesn’t support the proposal for Puerto Rico to move on would terminate its agree- Curved cious about the source of
because it is premised on a from decades of incurring debt ments with partners who were Google’s lyrics in 2016, when a
fiscal plan that cuts pension we could not afford,” the “not upholding good prac- Genius software engineer
benefits. board’s executive director, tices.” spotted something odd about
The proposal takes advan- Natalie Jaresko, said. In 2016, Google forged a the song “Panda,” a hit by rap-
partnership with LyricFind, a per Desiigner. While many lyr-
Canadian company that se- ics sites had published error-
Goldman ing group, which makes smaller

bets on financial-technology
startups.
cures deals with music pub-
lishers allowing companies
such as Google to publish lyr-
As seen
in Google search
ridden transcriptions
Desiigner’s hard-to-understand
lyrics, Genius had the defini-
of
To Form Both groups currently sit in

Goldman’s trading division and
invest the bank’s own money.
ics online. LyricFind Chief Ex-
ecutive Darryl Ballantyne said
in an email that his company
tive version because Desiigner
himself provided his lyrics to
the site, Genius said.
New Unit Going forward they will look

to raise outside funds, said
people briefed on the plans.
creates lyrics using its own
content team.
“We do not source lyrics
“We noticed that Google’s
lyrics matched our lyrics down
to the character,” Genius’s Mr.
The new division will also in- from Genius,” he said. Gross said.
Continued from the prior page clude some real-estate and pri- Google’s information boxes The Journal randomly
more balanced business mix.” vate-equity groups that cur- are part of the company’s ef- chose three of the more than
The firm’s ambitions could rently live in Goldman’s asset- fort to provide users with di- 100 examples Genius says it
prove thorny for its relation- management division, where rect answers to their queries found of songs on Google con-
ship with big private-equity they invest clients’ money. on results pages. The company taining these watermarks, and
firms, which hire Goldman to Goldman plans to raise new says the boxes provide users verified the pattern of apos-
underwrite securities and funds, particularly in real es- with a better experience. trophes was the same.
raise debt. Mr. Solomon has tate, where it has a narrower It also means Google is di- Source: Genius; Lyrics an excerpt of 'Not Today' Because Genius doesn’t it-
stressed a renewed focus on offering than Blackstone and recting a smaller share of by Alessia Cara ©Sony/ATV Music Publishing LLC self own the copyright on the
client service, but now he is other rivals. The firm could hit those queries to other sites. In lyrics in question, the com-
growing a business that com- the fundraising circuit this March, 62% of mobile searches listing service Yelp Inc., and without a click to another pany might have a weak hand
petes directly with key clients. year for a real-estate equity on Google didn’t result in a Google’s forays into travel and website about 35% of the time. in any legal dispute with
The core of the new division, fund, its first since the finan- user clicking through to an- shopping services have taken That is up about 9% since Google, said Daphne Keller, a
people familiar with the matter cial crisis, as well as a succes- other site, according to the an- traffic from online retailers 2016, according to Jumpshot. former Google lawyer who
said, will be Goldman’s existing sor to the corporate-buyouts alytics firm Jumpshot Inc. and travel sites, said Rand Genius is a privately held now studies the regulation of
merchant-banking arm, which fund it raised in 2017, people Google previously has dis- Fishkin, chief executive of company, and its investors in- technology platforms at Stan-
has about $100 billion invested familiar with the matter said. rupted companies’ business SparkToro LLC, a web-market- clude Andreessen Horowitz ford’s Center for Internet and
in private assets. Joining it will The new division won’t in- models by switching from re- ing software company. and the rapper Nas. The com- Society. “But it’s totally under-
be Goldman’s special-situations clude a roughly $220 billion ferring traffic via search to As a result, clicks to web pany doesn’t disclose revenue standable why they don’t want
group, an opportunistic portfo- portfolio of stakes in outside providing services directly on publishers have been dropping but says its ad business runs this happening, and I imagine
lio of about $30 billion, as well private-equity and hedge-fund Google websites. Google Maps on desktop search, Mr. Fishkin to tens of millions of dollars a Google doesn’t want it hap-
as the bank’s strategic invest- managers, the people said. competes with local-business said. Desktop searches end year. It also earns money by pening either,” she said.
THE WALL STREET JOURNAL. * * * * Monday, June 17, 2019 | B3
BUSINESS NEWS
Technical
Snafus Hit
China Biotechs Poach U.S. Talent
BY PREETIKA RANA
Target on China-based biotechnology

startups looking to go global
Weekend are poaching talent from the

biggest American pharmaceuti-
cal companies, promising man-
BY KHADEEJA SAFDAR agers and medical chiefs lucra-
tive pay packages and a more
Technical problems at Tar- entrepreneurial work environ-
get Corp. stores this weekend ment—all without asking them
frustrated shoppers, who to uproot their lives in the U.S.
were unable to make pur- At least a half-dozen Chinese
chases for two hours on Sat- biotech startups have estab-
urday or use a credit card at lished offices from Greater Bos-
some stores on Sunday. ton to Silicon Valley in recent
Target said the two inci- years, looking to commercialize
dents were unrelated, and their treatments in the world’s
neither was caused by a cy- largest drug market by sales.
berattack. However, both re- Former executives of com-
sulted in customer companies such as Johnson &
plaints. Johnson and Eli Lilly & Co. are
On Saturday, Target’s spearheading these efforts,
checkout systems suffered a overseeing tests of Chinese ex-
GILLES SABRIE/BLOOMBERG NEWS

nationwide outage, which the perimental drugs on American
retailer said was caused by a patients and navigating their
problem during routine main- regulatory approval.
tenance of its computer sys- Eric Hedrick, a former med-
tems. ical director at Genentech Inc.,
Employees identified and had never been to China before
fixed the problem after he became the first U.S. em-
roughly two hours. ployee of a little-known, then-
“After an initial but thor- five-year-old Beijing company,
ough review, we can confirm BeiGene Co., in 2015. BeiGene, which has a Beijing research-and-development center, has raised its U.S. head count as it puts drugs through U.S. trials.
that this was not a data Dr. Hedrick, who had co-led
breach or security-related is- development of the block- cer patients. comment for this article be- more uncertainty, as well as year hired a vice president at
sue, and no guest information buster cancer drug Avastin at An approval from the Food cause of concerns they could fewer administrative staff to Lilly, Marek Kania, to lead its
was compromised at any Genentech, joined BeiGene as a and Drug Administration become targets in Washington, support top functions. “A lot of U.S. trials. Under his supervi-
time,” a Target spokesman consultant and later was would mark the first entry of which has recently been plac- people in big companies aren’t sion, Chi-Med is testing two
said on Saturday. named chief medical officer. an innovative, or nongeneric, ing restrictions on Chinese used to that,” he said. experimental drugs and has re-
On Sunday, Target said Now 54, Dr. Hedrick said he drug from a Chinese company tech firms, citing alleged cor- At a cancer conference ear- ceived FDA clearance to test
customers were unable to wanted to be on the front lines into the U.S. porate espionage and an out- lier this year, Richard Pazdur, two more. Chi-Med plans to
.
process certain card payments of China’s biotech boom but BeiGene’s rapid expansion director of the FDA’s Oncology double the size of its 20-per-
ly
at some stores for about 90 didn’t want to displace his underscores how, from auto- Center of Excellence, which son U.S. team over the next
minutes because NCR Corp., a three children from the U.S. mobiles to technology, Chinese helps expedite development of year, Mr. Hogg said.
vendor it uses to help accept Dr. Hedrick said that he per- companies striving to be global
One company seeks a cancer drugs, encouraged Chi- For years, scores of West-
payments, experienced an is- suaded other Genentech col- onplayers are setting up shop in landmark FDA nese companies to bring their ern-trained Chinese scientists
sue at one of its data centers. leagues to leave, which helped the U.S. to draw on a talent treatments to market, saying went to work in U.S. pharma-
A spokesman for NCR BeiGene expand its U.S. head pool they would otherwise
approval for a drug the increased competition ceuticals, helping design drugs
didn’t respond to a request count to more than 400 today, struggle to lure. for cancer patients. could spur Western rivals to that fetch billions of dollars in
for comment. with offices in Massachusetts, Local talent is crucial for lower prices in the U.S. sales. Now, many of them are
us l,
“We can confirm that this California and New Jersey. Chinese biotechs because they Christian Hogg, chief execu- switching to Chinese startups.
was not a security-related is- Three of its experimental need to test their drugs in the tive of Hong Kong-based The San Francisco-based
al a
e
sue and no payment informa- drugs are in late-stage trials in U.S. to receive approval. flow of talent and technology. Hutchison China MediTech chief operating officer at Zai
tion was compromised,” a the U.S. Big companies acknowledge For the employees, switch- Ltd., or Chi-Med, said it is Lab Ltd., a four-year-old bio-
Target spokeswoman said on Before BeiGene approached the fight to retain top talent ing from a U.S.-based multina- cheaper to discover new drugs tech with headquarters in
ci on
Sunday. him, Dr. Hedrick said he “had has become fierce as Chinese tional to a China-based startup in China, where researcher sala- Shanghai, is a China-born ex-
Many shoppers took to no idea innovation was taking biotechs expand overseas. “As isn’t always smooth. Corporate ries tend to be lower, and then ecutive who previously served
Twitter to complain of long place at such a rapid pace” at with any growth industry, de- managers say they struggle to test them in the U.S., than it is as global head of mergers and
lines and confusion at stores. Chinese companies. As early as mand for experienced leaders retain people who aren’t multi- to run the whole process over- acquisitions at J&J’s drug arm.
They used the hashtag #Tar- this year, BeiGene said it plans is naturally on the rise,” a J&J taskers or risk takers. seas. He has hired 10 researchers in
er rs
getDown and pointed out the to seek regulatory approval for spokesman said in an email. BeiGene Chief Executive Chi-Med, whose drug dis- Silicon Valley to complement
poor timing, on Father’s Day a treatment for certain white Some Chinese companies John Oyler said employees covery efforts like BeiGene’s Zai Lab’s drug-discovery ef-
weekend. blood cell malignancies in can- hiring in the U.S. declined to joining startups often find are concentrated in China, last forts based in Shanghai.
m e
m rp
JEAN-FRANCOIS MONIER/AGENCE FRANCE-PRESSE/GETTY IMAGES
co Fo
Designing
experiences.
n-
Glyphosate, the active ingredient in the weedkiller Roundup, is still used to spray farmers’ fields.
Engineering
no
Bayer Studies Herbicide Shift

As It Looks Beyond Roundup
BY RUTH BENDER choice for growers.” to weeds like palmer amaranth
outcomes.
AND JACOB BUNGE The company said the €5 and waterhemp developing re-
billion earmarked for herbi- sistance to the world’s most
Bayer AG plans to invest €5 cide development over the widely used weedkiller.
billion ($5.64 billion) on devel- next 10 years would largely fit Bayer said on Friday that
oping ways to combat weeds into the annual spending of with glyphosate’s global suc-
over the next decade, as the €2.4 billion that it had previ- cess came “widespread use,
German chemicals and phar- ously estimated for agriculture weed resistance, and in some
maceuticals giant seeks to win R&D in coming years. Herbi- instances unintended misap-
back trust in its business after cide research will represent plication.”
thousands of lawsuits alleging about one-fifth of Bayer’s Monsanto in recent years
its Roundup herbicide causes overall agriculture research in- launched a herbicide based on
cancer. vestment. the chemical dicamba, along
A big legal fight over the The company also said it with soybean and cotton seeds Companies need to compete on software to drive
weedkiller—inherited with its would cut its “environmental genetically engineered to
takeover of Monsanto Co. last impact” by 30% by 2030 withstand the spray. better experiences and stay ahead of the competition.
year—has plunged Bayer into through new technologies and Some farmers have said the
one of the worst crises in its making weedkiller use more more powerful weedkiller That’s why we created a unique engineering approach
155-year history. The company precise, and that it would be drifted onto neighboring fields
has lost the first three jury more transparent about prod- and damaged nonmodified to design and build new digital products. See why
trials to plaintiffs claiming uct safety. These measures, it crops.
Roundup gave them non- said, would address health and Agricultural researchers es- Cognizant Softvision was named to HFS Research
Hodgkin lymphoma, with the environmental concerns Bayer timate that millions of acres of
highest award topping $2 bil- has faced since buying Mon- crops have been damaged by Winner’s Circle in Software Product Engineering.
lion. In response, its share santo. Bayer also took out drifting dicamba. Bayer has at-
price has almost halved over newspaper advertisements to tributed the crop damage
the past year. promote its message. mainly to farmers misapplying
While Bayer is appealing The company’s leadership the spray. In 2018 the Environ- cognizant.com/softvision
the jury verdicts and contin- has faced intense criticism mental Protection Agency said
ues to vigorously defend the over its decision to buy Mon- farmers could continue to use
safety of Roundup and the ac- santo. At a heated shareholder dicamba under tighter restric-
tive ingredient glyphosate, its meeting in late April, some tions.
announcement Friday shows 55% of shareholders refused to The legal battle over
how the company is being endorse management’s actions Roundup could take years as
forced to change tack under in the past year. Bayer has said it would appeal
pressure from its legal woes. Bayer and other agricul- decisions and wait for the out-
Bayer said glyphosate would tural companies are already come of a few more cases be-
retain an important role in its marketing new herbicides, as fore considering a settlement.
portfolio but that it was also glyphosate’s widespread use —Cristina Roca
“committed to offering more on U.S. farms has contributed contributed to this article.
B4 | Monday, June 17, 2019 * *** THE WALL STREET JOURNAL.
ARTIFICIAL INTELLIGENCE
Investors Urge Startups to Heed Ethics

Efforts try to identify Housing and Urban Develop- them from scratch in-house to meetings about software show in ads.
ment in March that Facebook and manages their administra- under development to bring in A tech accelerator run by
and eliminate biases Inc.’s algorithms helped adver- tive tasks. different perspectives, Mr. To- Pittsburgh-based Innovation
in algorithms behind tisers violate fair-housing laws Analytics Ventures’ eight bias said. Works this year introduced a
and San Francisco’s decision startups use a tool called The strategy proved fruitful voluntary ethics component to
a company’s decisions last month to ban the munici- Klear, built internally by a at a 2017 meeting about port- its 27-week program for start-
pal use of facial-recognition team of roughly 20 AI scien- folio company Pattern89, ups, in collaboration with Car-
BY JARED COUNCIL systems. Debate about respon- tists, that forensically explains which uses AI to recommend negie Mellon University. All 12
sible use of AI is growing: This why an AI system made a de- images and copy that market- companies taking part in the
Backers of artificial-intelli- summer, the European Com- cision it did. “If a human can- ers should use in social ads. program chose to participate
gence startups are paying mission plans to assess a sum- not understand the logic be- The company collects informa- in the ethics pilot, which
more attention to ethics and mary of ethical guidelines for hind an [AI system’s] action, tion on past ads and uses an touches on topics including
rooting out potential biases AI technology. it’s much more difficult to Amazon.com Inc. service to bias and data privacy, said
embedded in algorithms that Andreas Roell, managing contain,” Mr. Roell said. “So I tag the images to understand Ilana Diamond, managing di-
HIGH ALPHA
power AI systems, a focus that partner at San Diego-based see explainability as a core what they are showing. rector of hardware at Innova-
is starting to affect the earli- Analytics Ventures, said his component of having an ethi- Pattern89 then assesses the tion Works.
est stages of company devel- two-year-old firm started seri- cal guardrail around AI.” relationship between tags and Sometimes, the bias in an
opment. ously discussing AI ethics Eventually, “What I would High Alpha’s Mark Clerkin an ad’s performance. algorithm isn’t obvious. Gor-
Executives at venture-capi- about a year ago, after being like to see is that every single A High Alpha designer at don Ritter, founder and gen-
tal firms and tech accelerators pitched by a group of horse entity of ours has a designated based Geofeedia, a maker of the meeting asked about the eral partner of San Francisco-
have spurred three main im- breeders that wanted to use AI AI ethics officer,” he said. social-media geo-tagging soft- kinds of tags that fed based venture-capital firm
provements at startups: a code to identify the best thorough- The leaders of High Alpha, ware that law-enforcement Pattern89’s algorithms, said Emergence Capital, gave an
of ethics that guides the AI breds to breed for racing. an enterprise-software venture agencies could use to identify Mark Clerkin, High Alpha’s example from a portfolio com-
startup’s operations, a tool Analytics Ventures didn’t studio based in Indianapolis, people at large gatherings. vice president of data science. pany, Seattle-based Textio
that explains how an algo- make the investment, but Mr. said they have received High Alpha didn’t invest in Her underlying concern, Mr. Inc., whose software generates
rithm makes its decisions and Roell said the incident got him pitches that didn’t pass ethical Geofeedia but all four of its Clerkin said, was whether language for companies to use
a set of best practices that in- thinking about the ethics of muster, including a startup partners did so as individuals. those attributes could be prox- in recruiting emails and job
cludes consistent and open using AI to breed animals. that sought to rank the value The controversy prompted ies for race or religion. “One postings. With feedback from
communication as well as im- That prompted his firm to cre- of retail-store shoppers in part High Alpha leaders to examine attribute that came back was millions of user interactions
mediate feedback about an al- ate a code of ethics and to by using facial recognition. the ethical implications of its afro hairstyles...so we decided across its platform, Textio has
gorithm’s output. start embedding ethical prac- Partner Eric Tobias said the portfolio companies’ software not to utilize that one,” Mr. been able to identify words
The changes come amid in- tices in its AI companies. Ana- firm began considering the during the company-creation Clerkin said—meaning the al- such as “synergy” and “stake-
creased regulatory scrutiny of lytics Ventures is a venture ethical implications of AI process. They began inviting gorithm wouldn’t take afros holders” that have been shown
AI software, including allega- studio, meaning it not only in- about two years ago, after the nontechnologists such as mar- into account when building its to deter minority candidates
tions by the Department of vests in companies but builds backlash against Chicago- keting specialists or designers recommendations for what to from applying for jobs.
TECHNOLOGY WSJ.com/Tech
Bumble Presses Dating-App Rivals Find Travel tion, stops and the flight’s
typical reliability, showing
.
you the likely best flights up
ly
BY PARMY OLSON encourage developers to bring
new ideas his way.
the Mormon
(LDSPlanet.com.)
Church Months later, Match filed a
lawsuit against Mr. Andreev’s
Services top.
Getting There
LONDON—The owner of “We’re looking for the big, The rivals have circled each holding company, alleging that
For You Consider even the simple
dating app Bumble said it
plans to spend $100 million
big monsters who can partner
with me,” he said.
on other for years. In 2014, Mr.
Andreev reached out to Whit-
Bumble had copied features
from Tinder. Mr. Andreev de-
question “When do I need to
leave for the airport?” The
creating an array of new dat- The promised investment ney Wolfe Herd, a co-founder clined to comment on the suit. answer depends on real-time
ing apps, part of an expansion represents a challenge to rival of Tinder, who had just left Both companies earn Continued from page B1 traffic to the airport, how
us l,
and revamp of the privately Match Group Inc., the New amid a sexual-harassment suit. money from recurring sub- even before I knew where I long the security lines will
held holding company that York-listed owner of online The two sides settled the same scriptions. Match revenue to- was going. It might pull from be when you arrive and
al a
e
also owns Lumen, a dating app dating giant Match.com and year. taled $1.7 billion in 2018. Mr. Google’s knowledge of the much more. If your flight is
for people over 50, and gay- fast-growing dating apps Tin- Mr. Andreev and Ms. Wolfe Andreev said his company places I’ve been, Facebook’s likely to be delayed, that
dating app Chappy. der and OkCupid. Match Herd, with other colleagues, booked revenue of over $500 log of where my friends go changes things too.
ci on
Andrey Andreev, the Rus- shares are up strongly this sequestered themselves in a million in the past 12 months. and Amazon’s list of things I The best options so far:
sian billionaire behind Bum- year, despite some investor villa in Greece and came up Magic Lab houses four tend to buy, to compile a For $49 a year, TripIt offers
ble—a dating app that puts worry after Facebook Inc. said with the idea of Bumble, now brands: Bumble, Lumen, personalized itinerary. a Pro service that can tell
the onus on women to initiate it, too, would be moving into based in Austin, Texas. Chappy and Badoo. Before the It would find me the per- you when to leave home, and
a conversation that could ulti- online dating. Last year, Match offered to rebranding, the holding com- fect seat on the perfect it has handy maps and alerts
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mately lead to a date—said he Mr. Andreev’s businesses acquire Mr. Andreev’s group of pany was called Worldwide Vi- flight (not too early, but get for getting to your gate and
is renaming the London-based and Match have both branched companies, but Mr. Andreev sion Ltd. Mr. Andreev said he me there in time for dinner). to the right baggage claim.
holding company that over- out to appeal to niche groups declined, according to people and his management team It would help me through ev- Fun fact: Both TripIt and
sees it as Magic Lab. In an in- of daters. Match, for instance, familiar with the matter. The own 80% of the holding com- ery traffic jam, security Hipmunk are subsidiaries of
m e
terview in London, he said he has rolled out apps for people deal talks valued the umbrella pany. Russian private-equity checkpoint and train system. SAP Concur, a company that
would invest heavily to recruit with pets (PetPeople- group at roughly $1 billion, ac- firm Finam Global holds a 20% Of course, this ideal travel handles all my expense re-
talent to his organization and Meet.com) and members of cording to one of these people. stake in Magic Lab. app would have to tread a ports. App in the Air offers a
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delicate privacy balance, be- similar service for $30 a

tween helping me travel and year that includes crowd-
creeping me out. sourced tips from frequent
Many developers and travelers.
companies are working on
Exploring a Destination
co Fo
making travel easier and

more personalized and they Travel apps are least help-
are starting to offer ways to ful once you get where
make your travels a little you’re going. Few apps offer
smarter. None are even close personalized recommenda-
to getting it right. But for tions and even if you are
each of the three phases of willing to comb through
travel—planning the trip,
getting there and exploring
your destination—there are
apps that are beginning to
TripIt’s Pro service
figure it out. has maps and alerts
That doesn’t mean your
apps won’t sometimes point
for getting to your gate
n-
you to Starbucks. and baggage claim.

Booking the Trip
People are complicated.
no
You might prefer an aisle countless reviews, every city

seat, except on a red-eye, has its own best source of
and you’d take a middle seat information.
MICHAEL NAGLE/BLOOMBERG NEWS
if it meant getting there TripAdvisor has more

sooner. Price matters, but so data and reviews on more
do loyalty points. And all places than any other service
that goes out the window I’ve tried. But how do I de-
when you have a meeting cide which of the countless
you can’t miss. places rated “Excellent” is
Finding the right hotel is the right one for me? “Over
just as complicated, with time we’ll enable TripAdvi-
ocean views pitted against sor members to tell us
Investors eagerly snapped up shares last week of online pet-supply retailer Chewy, as well as those of CrowdStrike and Fiverr. better room service and whether they’re traveling
proximity to shopping. It with family or friends, look-
IPOs Boom sign of a bubble.

This year’s IPO boom has
done little to offset the historic
vestor appetite for these high-
growth companies,” said Bill
Ford, chief executive of pri-
tiating between profitable
growth and unprofitable
growth,” said Bimal Shah,
would be hard for an app
ever to book travel without
any user input. But maybe it
ing for hidden gems or top
attractions, or hungry for lo-
cal hangouts or tasting
Amid Uber, decline in the number of U.S.

public companies. As investors
rush to buy shares of fast-
vate-equity firm General At-
lantic.
Beyond Meat is emblematic
portfolio manager at Thorn-
burg Investment Manage-
ment.
can help narrow the options.
For years, services like Ex-
pedia and Kayak brought all
menus recommended by
well-known foodies,” said
TripAdvisor’s president of
Lyft Flops growing tech businesses, so do

larger companies. In the past
month, Salesforce.com Inc.
of an IPO frenzy in which in-
vestors see big potential in na-
scent industries. The money-
But investors remain wary
of money-losing companies
whose growth has stalled. Uber
your options to one place. A
new breed of services now is
working on whittling those
core experience, Lindsay Nel-
son. The company is working
on ways to personalize the
agreed to buy data-analytics losing company’s stock is up and Lyft, for example, have ex- options down to just the few experience, but right now it’s
Continued from page B1 platform Tableau Software more than sixfold since it made perienced a slowdown and lack you might use. still like finding needles in
provided proof points that Inc. for more than $15 billion, its debut in May. clear paths to profitability. App in the Air, a travel-as- 4.5-star haystacks.
there is no overhang from the and Alphabet said it is acquir- CrowdStrike’s shares There are increasing con- sistant service, is launching The best option so far:
deals that have struggled,” said ing Looker, a business-intelli- jumped more than 70% in their cerns about how WeWork an AI-based booking service The Your Match feature in
Justin Smolkin, head of tech- gence and big-data analytics first day of trading last week Cos., the real-estate rental that will consider your seat, Google Maps. Google can use
nology, media and telecommu- platform, for $2.6 billion. The after pricing far above raised company that has filed confi- time and airline preferences your history and preferences
nications equity capital mar- limited supply of public com- expectations. The company’s dentially for an IPO, will be re- (including your status prog- to assess whether you are
kets at Deutsche Bank AG. panies has helped boost de- roughly $13 billion valuation is ceived by public investors and ress) and offer you the best likely to enjoy a given place.
The scramble for new issues mand for new issues. up more than fourfold from whether its previous valuation few choices. The system It isn’t perfect—and requires
extends beyond the hottest Moreover, tech companies where it was valued privately of nearly $50 billion is realis- learns over time, too: If you you to turn on Google’s Loca-
tech names to consumer com- have sold just 16% of them- in 2018. It has been losing tic. While WeWork’s revenue filter your results to only tion History feature—but it is
panies like meat-substitute selves on average this year, money each year and expects more than doubled last year, show early-morning flights, the closest thing I have found
startup Beyond Meat Inc. and compared with 26% on average to continue to incur net losses its losses are growing nearly as it might show you those first to a virtual travel guide that
Chewy. since 1995, according to Dea- for the foreseeable future. In- quickly, though the company next time. really knows what I like.
There is no guarantee the logic. Slack, one of the larger vestors say they are willing to has said it is focused on a huge The best option so far: You know what Google
hot streak will continue or that companies set to debut this overlook that because the com- market opportunity. App in the Air’s booking ser- Maps thinks I like? Star-
2019 will end up being a record year, isn’t selling any new pany has forgone profits to go Whether or not WeWork de- vice will be available to ev- bucks. 86% match. It isn’t to-
year for new issues as any shares in its so-called direct after a huge market. Crowd- buts later this year as planned, eryone in July. Meanwhile, tally wrong. I did like the
number of factors, including a listing. Strike’s total revenue more the IPO pipeline is robust, with go with Hipmunk, an app cold brew. What I really
market swoon, could halt the “We came into 2019 think- than doubled year over year, to Peloton Interactive Inc., Posh- that shows all your flights want, though, is a travel app
momentum. When investors ing we’d have an IPO renais- nearly $250 million in the 12 mark Inc. and Postmates Inc. on a straightforward time- that broadens my horizons,
embrace companies that lose a sance, and we’ve been encour- months that ended Jan. 31. among the companies slated line. It lets you sort options that knows me enough to
lot of money, as they do in aged by constructive equity “Investors value growth, for listings in the second half by “agony,” a handy short- take me to places I’ve never
some cases today, it can be a markets and strong public-in- and they’re being less differen- of the year. hand combining price, dura- been but will surely love.
THE WALL STREET JOURNAL. Monday, June 17, 2019 | B5
Smart technology
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From helping people manage
diabetes to training guide dogs
for the visually impaired to bringing
more transparency to the diamond
industry, IBM is working behind
the scenes to change the way
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B6 | Monday, June 17, 2019 THE WALL STREET JOURNAL.
BUSINESS NEWS
Auto Makers Take On Distracted Driving

Volvo and Subaru are
among those rolling
out technology from
cameras to software
BY ADRIENNE ROBERTS
Car companies are stepping

up efforts to tackle the longtime
problem of distracted driving by
installing cameras and other
monitoring technology in
vehicles to detect when a
driver’s attention wanders from
the road.
Volvo Cars said it would start
rolling out new eye-tracking de-
vices across its lineup over the
next few years, featuring cam-
BRIAN CAHN/ZUMA PRESS
eras in cockpits to monitor mo-

torists’ gazes. The system would
send an alert or even limit a
car’s speed whenever its driver’s
eyes are averted for too long.
Subaru Corp. installed a
driver-monitoring system on its
Forester crossover last year that Police struggle to enforce laws on texting and driving because they can’t always see phones being used inside moving vehicles or require drivers to hand them over at traffic stops.
beeps if drivers’ eyelids droop
or their focus drifts from the
road for extended periods. The
lenge for car companies, regula-
tors and law enforcement.
Attention Deficit software and difficult-to-use
displays that can be distracting
technology is also heading
stateside.
In response to privacy con-
cerns, Subaru says its cameras
Traffic fatalities caused by
Japanese car company plans to While texting and driving is in their own right, say analysts “There’s a growing recogni- only record images in infrared
distracted driving remains a
add the feature on two more banned in every U.S. state but and safety advocates. Even tion in the auto industry that and can’t take video or photos.
challenge for car companies,
new models next year, the Leg- Montana, police say they strug- when these solutions work well, we want drivers to be paying at- Volvo says it doesn’t record
regulators and law enforce-
acy sedan and Outback sport- gle to enforce laws because they many motorists still have trou- tention, and we have the tech- video or gather data without
ment.
utility. BMW AG also has intro- can’t always see cellphones be- ble breaking the habit of reach- nology to ensure they are,” said customers’ consent.
duced similar eye trackers in a ing used inside moving vehicles Number of traffic fatalities ing for their phones. Roger Lanctot, director of auto- Some car companies are also
limited number of models. or require drivers to hand over “The phone is the container motive connected mobility for are installing inward-facing
Other car makers, including their phones at traffic stops. Distraction-affected crashes of all things interesting,” said Strategy Analytics, a market re- cameras to keep drivers’ atten-
Daimler AG’s Mercedes-Benz Distracted driving claimed 40,000 Missy Cummings, a Duke Uni- searcher. tion from shifting when using
and Nissan Motor Co., are tak- about 3,166 lives on U.S. road- versity professor who studies Still, driver-monitoring tech- partially automated driving fea-
.
ing a slightly different approach. ways in 2017, accounting for how humans interact with vehi- nologies are largely unproven tures, which some auto makers
ly
Rather than inward-facing cam- about 9% of all traffic fatalities, 30,000 cles. “All of us are hard-wired to because they are so new, with have found can create a false
eras, they are adding detection according to the most recent seek stimulation,” she said. “For little industry data on their ef- sense of security, leading motor-
software that uses sensors de- data available from the National most people in the car, they go fectiveness. Meanwhile, many ists to look away for extended
signed to determine fatigue or Highway Traffic Safety Adminis- on 20,000 for the phone. It’s a major prob- such systems aren’t standard on periods.
inattention by monitoring a tration. lem.” most models, and car buyers For instance, Cadillac vehi-
driver’s steering patterns and While that percentage hasn’t Tougher regulations in the typically have to pay more to cles equipped with General Mo-
how frequently a car drifts out changed much since 2012, safety 10,000 European Union around dis- add those options. tors Co.’s SuperCruise technol-
of its lane. and insurance groups say distracted driving are helping to Many consumers also aren’t ogy have inward-facing cameras
us l,
Auto executives say they re- traction-related deaths are likely push more car makers to add comfortable with eye-tracking placed behind the steering
0
alize trying to persuade drivers much higher because many monitoring systems. The EU cameras in the cockpit because wheel that monitor a driver’s fo-
al a
2012 ’13 ’14 ’15 ’16 ’17

e
to tuck away their mobile de- drivers are reluctant to admit to proposed legislation earlier this of privacy concerns, Mr. Lanctot cus and eye movement when
vices can often be a losing mobile use after an accident, Source: National Highway Traffic Safety year requiring auto companies said. Particularly unnerving for the hands-free driving feature is
battle. preventing police reports from to install a range of advanced some drivers is that many de- activated.
ci on
Administration
“We can’t prevent [drivers] reflecting the full tally of those safety features in vehicles start- tection systems can recognize Because the technology
from using their phones,” said incidents. tertainment system, and use the ing in 2022, including distrac- faces and adjust features in the doesn’t provide fully automated
Ken Lin, head of product devel- In the past, auto makers have display or voice-recognition tion-detection systems. In the car—such as climate controls driving, the driver must remain
opment for Subaru’s U.S. opera- tried to dissuade drivers from software to make calls and lis- U.S., only automatic braking is and seat positions—to a particu- engaged in case of a complica-
tions. “What we’ve tried to do is pulling out their phones in the ten to music. expected to be more widely lar individual’s preference, he tion or hazard in the road that
er rs
manage it as much as possible.” car by offering pairing systems But in many cases, those available in that time frame, but added. While marketed as a the car can’t handle on its own.
Combating distracted driving that allow them to connect de- built-in systems contribute to most car makers build models benefit, some motorists find it —Scott Calvert
has long been a frustrating chal- vices directly to a vehicle’s en- the problem because of glitchy for a global market, so the new too intrusive. contributed to this article.
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BUSINESS NEWS
This announcement is not an offer to purchase or a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely by
the Offer to Purchase, dated June 17, 2019, and the related Letter of Transmittal and any amendments or supplements thereto and is being made
to all holders of Shares. The Offer is not being made to, nor will tenders be accepted from or on behalf of, holders of Shares in any jurisdiction in
Banks With Urge

which the making of the Offer or acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions
where the applicable laws require that the Offer be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf
of the Purchaser (as defined below) by one or more registered brokers or dealers licensed under the laws of such jurisdiction.
To Merge Pay Price Notice of Offer to Purchase for Cash

All Outstanding Shares of Common Stock
As Shares Decline CIRCOR International, Inc.

of
BY ALLISON PRANG search firm Stephens Inc. at

The average performance
Shares of banks buying for acquirers in the same time $45.00 Net Per Share
other banks are underper- frame going back to 2011 was
forming peers, reflecting con- an excess return of 0.74 per- by
cern among investors that po- centage point.
tential economic weakness
could depress future bank
The underperformance re-
flects jitters about the U.S.
CR Acquisition Company
earnings and portend bigger- economy, interest rates and a wholly owned subsidiary of
than-expected loan losses at credit quality. The yield
target firms.
Shares of TCF Financial
curve—as measured by the
difference between three-
Crane Co.
Corp. and Chemical Financial month Treasury bills and 10-
CR Acquisition Company, a Delaware corporation (the “Purchaser”) and a wholly owned subsidiary of Crane Co., a Delaware
Corp., for example, have year Treasury notes—has in-
corporation (“Crane”), is offering to purchase all outstanding shares of common stock, par value $0.01 per share (the “Shares”), of CIRCOR
lagged behind the sector after verted four times this year, International, Inc., a Delaware corporation (“CIRCOR”), at a price of $45.00 per Share, net to the seller in cash, without interest and less
the two announced plans for according to Dow Jones Mar- any required withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated June 17, 2019 (the
a $3.6 billion merger earlier ket Data. “Offer to Purchase”), and in the related Letter of Transmittal that accompanies the Offer to Purchase (the “Letter of Transmittal”) (which,
this year. This means short-term together with any amendments or supplements thereto, collectively constitute the “Offer”).
Their shares have fallen rates have surpassed long-
8% and 7.2%, respectively, term ones, which can pressure THE OFFER AND WITHDRAWAL RIGHTS EXPIRE AT 5:00 P.M., NEW YORK
since the deal was announced bank profits. Such inversions CITY TIME, ON JULY 16, 2019, UNLESS THE OFFER IS EXTENDED.
in late January, compared are often viewed by investors
with a 3.6% decline for the as a precursor to a recession. The purpose of the Offer is to acquire control of, and ultimately the entire equity interest in, CIRCOR. If the Offer is consummated,
KBW Nasdaq Regional Bank- Even if economic growth Crane intends to complete a second-step merger with CIRCOR in which CIRCOR will become a wholly owned subsidiary of Crane
ing index. only slowed, as opposed to and all outstanding Shares that are not purchased in the Offer (other than Shares held by Crane and its subsidiaries or Shares held by
stockholders who perfect their appraisal rights) will be exchanged for an amount in cash per Share equal to the highest price paid per
Similarly, shares in Han- entering a downturn, banks’
Share pursuant to the Offer.
cock Whitney Corp. have loan portfolios could come
The Offer is being made without the prior approval of CIRCOR’s board of directors. Crane and the Purchaser are seeking to negotiate
fallen farther than the re- under pressure as losses a definitive agreement for the acquisition of CIRCOR by Crane and are prepared to begin such negotiations immediately.
gional banking index after the mount. That is especially a Subject to applicable law, Crane and the Purchaser reserve the right to amend the Offer in any respect (including amending the number of
bank holding company said in worry for banks making an Shares to be purchased, the offer price and the consideration to be offered in a merger, including the Proposed Merger (as defined in the Offer
late April it would acquire acquisition. They may dis- to Purchase)). In addition, in the event that Crane enters into a merger agreement with CIRCOR and such merger agreement does not provide
MidSouth Bancorp Inc. cover unpleasant surprises in for a tender offer, Crane and the Purchaser reserve the right to terminate the Offer, in which case the Shares would, upon consummation of
More broadly, banks an- a target’s loan book. such merger, be converted into the consideration negotiated by Crane, the Purchaser and CIRCOR and specified in such merger agreement.
nouncing acquisitions this “I think there’s more con- Consummation of the Offer is conditioned upon, among other things, (i) there being validly tendered and not withdrawn before the
year have generated a one- cern that the economy could expiration of the Offer a number of Shares which, together with the Shares then owned by Crane and its subsidiaries, represents at least
.
month return following a deal slow and credit could become a majority of the total number of Shares outstanding on a fully diluted basis, (ii) Crane, the Purchaser and CIRCOR having entered into a
ly
announcement that is 1.2 per- a bigger concern the next few definitive merger agreement with respect to the acquisition of CIRCOR by Crane providing for a second step merger pursuant to Section 251(h)
centage points less than that years” considering where the of the General Corporation Law of the State of Delaware (the “DGCL”), with CIRCOR surviving as a wholly owned subsidiary of Crane,
of comparable banks, as of economy is in the cycle, Ste- without the requirement for approval of any stockholder of CIRCOR, to be effected as soon as practicable following the consummation of
May 8, according to a report phens analyst Matt Olney on the Offer, (iii) the board of directors of CIRCOR having approved the Offer under Section 203 of the DGCL or the Purchaser being satisfied,
from investment bank and re- said. in its sole discretion, that Section 203 of the DGCL is inapplicable to the Offer and the Proposed Merger, (iv) the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any necessary approvals or waiting periods under the laws of any
foreign jurisdictions applicable to the purchase of Shares pursuant to the Offer having expired or been terminated or obtained, as described
Cold Shoulder in the Offer to Purchase and (v) CIRCOR not being a party to any agreement or transaction having the effect of impairing, in the reasonable
us l,
Shares of TCF and Chemical have underperformed judgment of the Purchaser, the Purchaser’s or Crane’s ability to acquire the Shares or CIRCOR or otherwise diminishing the expected value to
the banking sector since they announced a merger. Crane of the acquisition of CIRCOR. The Offer is also subject to the other conditions described in the Offer to Purchase.
If any such condition is not satisfied, the Purchaser may (i) terminate the Offer and return all tendered Shares to tendering stockholders,
al a
e
15% (ii) extend the Offer and, subject to withdrawal rights as set forth in the Offer to Purchase, retain all such Shares until the expiration of
the Offer as so extended, (iii) waive such condition and, subject to any requirement to extend the period of time during which the Offer is
ci on
open, purchase all Shares validly tendered prior to the Expiration Date (as defined below) and not withdrawn or (iv) delay acceptance for
10 payment or payment for Shares, subject to applicable law, until satisfaction or waiver of the conditions to the Offer. Consummation of the
Offer is not conditioned upon any financing arrangements or subject to a financing condition.
5 “Expiration Date” means 5:00 p.m., New York City time, on July 16, 2019, unless extended, in which event “Expiration Date” means
the time and date at which the Offer, as so extended, shall expire. Subject to any applicable rules and regulations of the Securities and
Exchange Commission (the “SEC”), the Purchaser expressly reserves the right, but not the obligation, in its sole discretion, at any time
er rs
0 and from time to time, to extend the period during which the Offer is open for any reason by giving oral or written notice of the extension
to Computershare Trust Company, N.A. (the “Depositary”) and by making a public announcement of the extension. In the case of an
KBW Regional extension of the Offer, Crane will make a public announcement of such extension no later than 9:00 a.m., New York City time, on the next
–5 Banking Index business day after the previously scheduled Expiration Date. During any extension, all Shares previously tendered and not withdrawn will
m e
Chemical Financial remain subject to the Offer and subject to the right of a tendering stockholder to withdraw Shares.
–10 After the expiration of the Offer, the Purchaser may, in its sole discretion, but is not obligated to, include a Subsequent Offering Period (as
TCF Financial
defined in the Offer to Purchase) of at least three business days to permit additional tenders of Shares. A Subsequent Offering Period would
m rp
be an additional period of time, following the expiration of the Offer and the purchase of Shares in the Offer, during which stockholders
–15 may tender Shares not tendered in the Offer. If the Purchaser elects to include or extend a Subsequent Offering Period, the Purchaser
Feb. March April May June will make a public announcement of such inclusion or extension no later than 9:00 a.m., New York City time, on the next business day
after the Expiration Date or date of termination of any prior Subsequent Offering Period. No withdrawal rights apply to Shares tendered
Source: FactSet in a Subsequent Offering Period, and no withdrawal rights apply during a Subsequent Offering Period with respect to Shares previously
tendered in the Offer and accepted for payment. The same price paid in the Offer will be paid to stockholders tendering Shares in a
co Fo
Subsequent Offering Period, if one is provided. The Purchaser does not currently intend to include a Subsequent Offering Period, although
Court Convicts Two the Purchaser reserves the right to do so.

For purposes of the Offer, the Purchaser shall be deemed to have accepted for payment tendered Shares when, as and if the Purchaser
gives oral or written notice of its acceptance to the Depositary. Payment for Shares purchased pursuant to the Offer will in all cases be
made only after timely receipt by the Depositary at one of its addresses set forth on the back cover of the Offer to Purchase of (i) certificates
Of 1MDB-Tied Charges representing the Shares tendered or timely confirmation of the book-entry transfer of such Shares into the account maintained by the
Depositary at the Book-Entry Transfer Facility (as defined in the Offer to Purchase), pursuant to the procedures set forth in Section 3 of
the Offer to Purchase, (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with
BY BRADLEY HOPE Further details of that
any required signature guarantees or an Agent’s Message (as defined in the Offer to Purchase), in connection with a book-entry delivery,
transaction weren’t provided,
and (iii) any other documents required by the Letter of Transmittal. Accordingly, payment may not be made to all tendering stockholders
Two prominent figures in a but people familiar with the at the same time depending upon when certificates for or confirmations of book-entry transfer of such Shares into the Depositary’s
global Malaysian sovereign- conviction said it wasn’t re- account at the Book-Entry Transfer Facility are actually received by the Depositary.
wealth fund scandal were con- lated to the Malaysian fund Tenders of Shares made pursuant to the Offer may be withdrawn at any time before the Expiration Date and, thereafter, may be
victed of financial crimes and scandal. The statement said withdrawn at any time until such Shares have been accepted for payment as provided in the Offer to Purchase. If the Purchaser extends
sentenced to prison in Abu the investigations were part of the Offer, delays acceptance for payment or payment for Shares or is unable to accept for payment or pay for Shares pursuant to the
n-
Dhabi, according to a state- a broader investigation by the Offer for any reason, then, without prejudice to Purchaser’s rights under the Offer to Purchase, the Depositary may, on Purchaser’s
ment from the emirate’s crimi- Abu Dhabi Public Funds Prose- behalf, retain all Shares tendered and such Shares may not be withdrawn except as provided in Section 4 of the Offer to Purchase. To
nal court and people familiar cution into allegations of cor- withdraw tendered Shares, a written notice of withdrawal with respect to the Shares must be timely received by the Depositary at one of
with the matter. ruption. its addresses set forth on the back cover of the Offer to Purchase, and the notice of withdrawal must specify the name of the person who
no
Khadem al Qubaisi, a United Mr. Husseiny, the “second tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder of Shares, if different
Arab Emirates citizen who once defendant,” was convicted of from that of the person who tendered such Shares. If the certificates evidencing Shares to be withdrawn have been delivered to the
headed Abu Dhabi’s Interna- “exploiting his position and fa- Depositary, a signed notice of withdrawal with (except in the case of Shares tendered by an Eligible Institution) signatures guaranteed
tional Petroleum Investment cilitating the seizure of the by an Eligible Institution must be submitted before the release of such Shares. In addition, such notice must specify, in the case of Shares
tendered by delivery of certificates, the name of the registered holder (if different from that of the tendering stockholder) and the serial
Co., was sentenced to 15 years company’s money by” Mr.
numbers shown on the particular certificates evidencing the Shares to be withdrawn or, in the case of Shares tendered by book-entry
in prison and Mohammed Qubaisi, according to the state-
transfer, the name and number of the account at the Book-Entry Transfer Facility to be credited with the withdrawn Shares.
ment and people familiar with The receipt of cash by U.S. Holders in exchange for Shares pursuant to the Offer will be a taxable transaction for U.S. federal income
the matter. tax purposes. Holders are urged to consult their tax advisors to determine the tax consequences of participating in the Offer
Khadem al- In an interview in January, in light of their particular circumstances (including the application and effect of any state, local or foreign income and other
Qubaisi has Mr. Qubaisi told The Wall tax laws).
said he was Street Journal from Al Wathba The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of the General Rules and Regulations under the Securities
unfairly prison in Abu Dhabi that he Exchange Act of 1934 is contained in the Offer to Purchase and the related Letter of Transmittal and is incorporated herein by reference.
blamed for the was being unfairly blamed as On June 6, 2019, pursuant to Section 220(b) of the DGCL, Crane demanded the right to inspect, among other items, CIRCOR’s stock
U.A.E.’s role in the “scapegoat” for the U.A.E.’s ledger and most recent list of stockholders and to make and/or receive copies and extracts therefrom, along with any modifications,
the scandal. role in the 1Malaysia Develop- additions or deletions thereto that become available or known to CIRCOR or its agents or representatives. The purpose of this demand
ment Bhd. scandal, where the was to obtain names and addresses of CIRCOR stockholders to enable Crane to communicate with its fellow CIRCOR stockholders on
Justice Department says $4.5 matters relating to their mutual interests as stockholders, including matters relating to the proposal by Crane to acquire CIRCOR through
Badawy al Husseiny, an Ameri- billion was stolen and distrib- a negotiated transaction. Crane will separately make a request to CIRCOR for its latest stockholder list and security position listings
can citizen who ran a subsid- uted among a group of alleged which will be used, if needed, for the purpose of disseminating the Offer to holders of Shares. Crane will send the Offer to Purchase, the
iary of IPIC, was sentenced to co-conspirators, including related Letter of Transmittal and other related documents to record holders of Shares and to brokers, dealers, banks, trust companies and
other nominees whose names appear on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security
10 years. They jointly must pay Messrs. Qubaisi and Husseiny.
position listing for subsequent transmittal to beneficial owners of Shares.
about €300 million, or around “I did this deal but I did it
This transaction has not been approved or disapproved by the SEC or any state securities commission, nor has the SEC or
$340 million, half to IPIC, re- on behalf of the government of any state securities commission passed upon the fairness or merits of this transaction or upon the accuracy or adequacy of
ferred to as the “victim com- Abu Dhabi,” he said, adding the information contained in this document. Any representation to the contrary is a criminal offense.
pany,” and half as a penalty, ac- that he was being forced to The Offer to Purchase and the related Letter of Transmittal contain important information, and stockholders should
cording to the criminal court. turn over assets to Sheikh carefully read both in their entirety before making a decision with respect to the Offer.
The press release didn’t identify Mansour bin Zayed, former Questions or requests for assistance may be directed to the Information Agent at the telephone numbers or address set forth below.
the men by name, but people chairman of IPIC and senior Requests for copies of the Offer to Purchase, the related Letter of Transmittal, the Notice of Guaranteed Delivery and all other related
familiar with the judicial ac- member of the emirate’s royal materials may be directed to the Information Agent or brokers, dealers, commercial banks and trust companies, and copies will be
tions confirmed the unnamed family. Now “they are putting furnished promptly at the Purchaser’s expense. Stockholders may also contact their broker, dealer, commercial bank, trust company or
defendants were Messrs. everything on my back,” he other nominee for assistance concerning the Offer.
Qubaisi and Husseiny. said at the time.
Lawyers for both men and a Sheikh Mansour didn’t re- The Information Agent for the Offer is:
representative of the Abu spond to a request for com-
Dhabi Criminal Court declined ment at the time.
to comment on the charges. Mr. Qubaisi also said he had
The Abu Dhabi court state- been handcuffed to a window
ment didn’t mention specific in a corridor and left for 24
details of the charges, other hours, saying his plan was to Innisfree M&A Incorporated
than to say Mr. Qubaisi, re- “die here in this place or get
ferred to as the “first defen- out.” 501 Madison Avenue, 20th Floor
dant,” was convicted of “ex- An Abu Dhabi lawyer in- New York, NY 10022
ploiting his job and unlawfully volved with the case denied Stockholders may call toll free: (888) 750-5834
appropriating 149 million euros Mr. Qubaisi’s account of his Banks and Brokers may call collect: (212) 750-5833
after selling shares he owns for prison conditions.
the company he heads, without The Journal hasn’t been June 17, 2019
disclosing his ownership of the able to communicate with Mr.
shares, for 210 million euros.” Qubaisi again since January.
ADVERTISEMENT
The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
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MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
26089.61 s 105.67, or 0.41% last week Trailing P/E ratio 17.92 24.67 2886.98 s 13.64, or 0.47% last week Trailing P/E ratio * 22.30 24.69 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 15.93 16.48 High, low, open and close for each of P/E estimate * 17.26 17.35 IPOs in the U.S. Market
the past 52 weeks Dividend yield 2.27 2.17 the past 52 weeks Dividend yield * 1.96 1.89
All-time high 26828.39, 10/03/18 All-time high 2945.83, 04/30/19
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Rule 144a market; deal amounts are for the U.S. market only
Current divisor 0.14744568353097 65-day moving average Symbol/ Pricing
27000 3000
Expected primary Shares Range($)
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)
65-day moving average
26000 2900 6/18 5/23 Stoke Therapeutics STOK 6.7 14.00/ JPM, Cowen & Co,
Clinical stage Nq 16.00 Credit Suisse
biopharmaceutical
company developing novel
25000 2800 antisense therapies.
6/19 5/24 Akero Therapeutics AKRO 5.0 14.00/ JPM, Jefferies,
Manufacturer and Nq 16.00 Evercore, Roth
developer of medicines for Cptl Ptnrs
24000 2700 non-alcoholic
steatohepatitis.
6/19 5/24 Atreca Inc BCEL 7.4 16.00/ Cowen & Co,
Week's high 23000 2600 Biotechnology company Nq 18.00 Evercore, Stifel
developing therapeutics
DOWN UP based on an understanding
200-day moving average 200-day moving average of the human immune
t
Monday's open Friday's close

22000 2500 response.
Friday's close Monday's open 6/19 5/24 Dermavant Sciences DRMT 7.7 12.00/ Jefferies,
t
Biopharmaceutical Nq 14.00 SVB Leerink

company developing and
21000 2400 commercializing
Week's low therapeutics in medical
Bars measure the point change from Monday's open dermatology.
20000 2300 6/19 5/13 Grocery Outlet Holding GO 17.2 15.00/ BofA ML, MS, DB,
Operator of grocery stores. Nq 17.00 Jefferies, GS, UBS,
J J A S O N D J F M A M J J J A S O N D J F M A M J Barclays,
Guggenheim
Primary Prtnrs,
NYSE weekly volume, in billions of shares market Composite
t
t
Financial Flashback 6/19 5/23 Personalis PSNL 6.7 14.00/ BofA ML, MS,
24 Provider of clinical Nq 16.00 Cowen & Co
16 The Wall Street Journal, June 17, 1999 diagnostic and research
services for cancer and
genetic disease.
8 Fidelity has an estimated market value of $30
0 billion, based upon a confidential debt-offering 6/19 5/24 Prevail Therapeutics PRVL 7.4 16.00/ MS, BofA ML,
Develops therapeutics for Nq 18.00 Cowen & Co
J J A S O N D J F M A M J document prepared by the closely held company. neurodegenerative
diseases.
Major U.S. Stock-Market Indexes Nasdaq Composite Lockup Expirations

Latest Week 52-Week % chg s 54.56, or 0.70% None expected this week
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann.
Dow Jones
last week
Industrial Average 26248.67 25958.66 26089.61 105.67 0.41 21792.20 l 26828.39 4.0 11.8 13.9 IPO Scorecard
Transportation Avg 10365.71 10150.78 10305.30 164.66 1.62 8637.15 l 11570.84 -6.9 12.4 10.9 Performance of IPOs, most-recent listed first
7875
Utility Average 817.55 792.01 815.55 8.95 1.11 678.31 l 815.55 20.2 14.4 6.0 % Chg From % Chg From
Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
Total Stock Market 29908.15 29532.34 29655.76 133.21 0.45 24126.04 l 30390.61 2.4 15.3 11.5 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Barron's 400 673.71 667.31 668.56 2.02 0.30 571.68 l 786.73 -11.5 9.7 9.0 7775
Chewy 34.99 59.0 ... Revolve Grp 42.01 133.4 23.6
CHWY June 14/$22.00 RVLV June 7/$18.00
Nasdaq Stock Market
7675 Fiverr Intl 31.49 50.0 –21.1 GigCapital2 10.02 0.2 ...
Nasdaq Composite 7909.99 7773.97 7796.66 54.56 0.70 6192.92 l 8164 0.6 17.5 17.2 FVRR June 13/$21.00 GIX.U June 6/$10.00
.
Nasdaq 100 7595.57 7454.87 7479.11 61.82 0.83 5899.35 l 7845.73 3.1 18.2 19.1 Mohawk Grp Hldgs 8.50 –15.0 –15.0 GSX Techedu 9.50 –9.5 –9.4
7575
ly
MWK June 12/$10.00 GSX June 6/$10.50
S&P 7 10 11 12 13 14 CrowdStrike Hldgs 64.16 88.7 10.6 Proficient Alpha Acquisition 10.06 0.6 0.2
500 Index 2910.61 2874.68 2886.98 13.64 0.47 2351.10 l 2945.83 3.9 15.2 11.6 June CRWD June 12/$34.00 PAACU May 30/$10.00
MidCap 400 1921.80 1894.45 1899.92 7.92 0.42 1567.40 l 2050.23 -4.6 14.2 8.7 DJ US TSM Haymaker Acquisition II 10.10 1.0 ... Bicycle Thera 13.10 –6.4 9.2
HYACU June 7/$10.00 BCYC May 23/$14.00
SmallCap 600
Other Indexes
935.04 918.44 923.57 3.68 0.40
on 793.86 l 1098.36 -11.2 9.3 9.5 s 133.21, or 0.45%
last week Sources: Dow Jones Market Data; FactSet
Russell 2000 1536.16 1512.40 1522.50 8.11 0.54 1266.93 l 1740.75 -9.6 12.9 9.9
NYSE Composite 12900.77 12767.85 12787.24 21.39 0.17 10769.83 l 13236.44 0.4 12.4 7.5
Other Stock Offerings
us l,
Value Line 525.55 517.38 519.14 1.17 0.23 446.06 l 593.57 -10.7 9.9 4.4 29875 Secondaries and follow-ons expected this week in the U.S. market
NYSE Arca Biotech 4567.43 4480.24 4492.81 -41.75 -0.92 3890.37 l 5400.34 -8.9 6.4 13.5 None expected this week
al a
e
NYSE Arca Pharma 596.89 587.10 590.37 0.70 0.12 521.32 l 609.15 10.0 3.8 4.9 29675
KBW Bank 97.70 95.01 96.29 1.08 1.13 80.78 l 111.44 -10.6 12.2 13.5 Off the Shelf
ci on
PHLX§ Gold/Silver 77.20 72.57 75.81 1.48 1.99 61.84 l 83.75 -8.2 7.3 -5.0 “Shelf registrations” allow a company to prepare a stock or bond for
29475
PHLX§ Oil Service 76.88 71.77 71.99 -3.15 -4.19 71.99 l 159.77 -52.1 -10.7 -24.8 sale, without selling the whole issue at once. Corporations sell as
PHLX§ Semiconductor 1440.80 1347.99 1356.55 -22.26 -1.61 1069.39 l 1589.02 -4.6 17.4 24.9 conditions become favorable. Here are the shelf sales, or takedowns,
CBOE Volatility 16.70 15.21 15.28 -1.02 -6.26 10.85 l 36.07 27.5 -39.9 -9.3 29275 over the last week:
7 10 11 12 13 14 Takedown date/ Deal value
Nasdaq PHLX Sources: FactSet; Dow Jones Market Data June Issuer/Industry Registration date ($ mil.) Bookrunner(s)
er rs
Iteris Inc June 14 $25.0 B Riley FBR

Telecommunications Sept. 1,317
International Stock Indexes Commodities and Kornit Digital June 13 $119.4 Citi, GS, Barclays
Latest Week 52-Week Range YTD
Currencies Machinery June 11,319
Last Week YTD
m e
Region/Country Index Close % chg Low Close High % chg

Close Net chg %Chg % chg Seres Therapeutics June 13 $60.0 GS, Cowen & Co
World The Global Dow 2998.79 0.22 2631.29 • 3155.23 9.7
DJ Commodity 604.24 8.88 1.49 5.47
Healthcare March 16,317
DJ Global Index 392.66 0.17 335.69 • 407.45 11.9 SharpSpring June 13 $26.7 Canaccord Genuity,
m rp
TR/CC CRB Index 174.81 0.39 0.23 2.95 Professional Services May 24,319 Roth Cptl Ptnrs
DJ Global ex U.S. 240.83 –0.16 217.71 • 259.92 8.2
52.51 -1.48 -2.74 15.64
Crude oil, $ per barrel Navidea Biopharmaceuticals June 13 $6.0 HC Wainwright & Co
Americas DJ Americas 684.04 0.39 558.25 • 698.40 15.2
Natural gas, $/MMBtu 2.387 0.05 2.14 -18.81
Healthcare Dec. 15,317
Brazil Sao Paulo Bovespa 98040.06 0.22 69814.74 • 99993.92 11.6
1340.10 -1.10 -0.08
Dominion Energy June 12 $1,400.0 GS, Barclays, BNP Paribas, WFS,
Canada S&P/TSX Comp 16301.91 0.44 13780.19 • 16669.40 13.8 Gold, $ per troy oz. 4.83
Utility & Energy June 30,317 Citi, Mizuho, MS, SunTrust
Mexico S&P/BMV IPC 43130.65 –0.37 39427.28 • 50416.27 3.58 U.S. Dollar Index 97.45 0.91 0.94 1.33 CPFL Energia June 12 $833.3 Santander, Itau BBA, MS,
co Fo
Chile Santiago IPSA 3631.52 2.18 3446.22 • 4049.66 –3.5 WSJ Dollar Index 90.78 0.76 0.84 1.24 Utility & Energy April 24,319 Bradesco BBI, BTG Pactual,
EMEA Stoxx Europe 600 378.81 0.35 329.58 • 392.08 12.2 Euro, per dollar 0.8920 0.0098 1.11 2.31 Smartsheet June 12 $645.3 MS, JPM, Jefferies, W. Blair,
Stoxx Europe 50 3129.82 0.332696.36 • 3199.51 13.4 Yen, per dollar 108.55 0.36 0.33 -0.95
Computers & Electronics June 10,319 SunTrust, Canaccord Genuity
Eurozone Euro Stoxx 367.54 0.21 321.36 • 390.67 11.9 U.K. pound, in dollars 1.26 -0.0148 -1.16 -1.33
Chart Industries
Metal & Steel
June 12
June 10,319
$295.8 JPM, Credit Suisse, MS,
Evercore, WFS
Euro Stoxx 50 3379.19 0.022937.36 • 3527.18 12.6
52-Week $155.0
Austria ATX 2940.35 0.192681.25 • 3452.00 7.1 Low Close(l) High % Chg
Laureate Education
Professional Services
June 12
April 23,318
BMO Cptl Mkts
Belgium Bel-20 3463.71 0.183164.98 • 3925.63 6.8
iCAD Inc June 12 $9.0 Craig-Hallum Group
642.46 -5.51
France CAC 40 5367.62 0.074598.61 • 5591.69 13.5 DJ Commodity 572.87 l
Healthcare Nov. 21,318
Germany DAX 12096.40 10381.51
0.42 • 13010.55 14.6 TR/CC CRB Index 168.36 l 201.23 -10.92
American Assets Trust June 11 $488.9 MS, WFS, BofA ML
Greece Athex Composite 847.36 3.85 593.05 • 850.37 38.2 Crude oil, $ per barrel 42.53 l 76.41 -19.29 Real Estate/Property Feb. 5,318
Israel Tel Aviv 1557.95 1.08 1419.50 • 1676.03 6.4 Natural gas, $/MMBtu 2.324 l 4.837 -21.01
Italy FTSE MIB 20612.45 1.24 18065 • 22216 12.5
Gold, $ per troy oz. 1176.20 l1343.30 5.14
Netherlands AEX 553.24 0.55 476.03 • 576.24 13.4 Public and Private Borrowing
Portugal PSI 20 5130.35 –0.23 4587.45 • 5661.81 8.4 U.S. Dollar Index 93.91 l 98.20 2.81
n-
Russia RTS Index 1341.05 1.14 1043.46 • 1346.98 25.8 WSJ Dollar Index 87.62 l 91.30 3.10
Treasurys
South Africa FTSE/JSE All-Share 58193.78 0.16 50434.39 • 60165.51 10.3
Euro, per dollar 0.8490 l 0.8984 3.55 Monday, June 17 Tuesday, June 18
Spain IBEX 35 9194.20 –0.45 8363.9 • 9927.0 7.7
Auction of 13 and 26 week bills; Auction of 52 week bill;
114.53 -1.90
Sweden OMX Stockholm 605.75 1.64 515.36 • 627.37 15.3 Yen, per dollar 107.67 l
announced on June 13; settles on June 20 announced on June 13; settles on June 20
no
Switzerland Swiss Market 9847.61 1.01 8195.64 • 9861.83 16.8 U.K. pound, in dollars 1.25 l 1.33 -5.20
U.K. FTSE 100 7345.78 0.19 6584.68 • 7776.65 9.2 Thursday, June 20
Asia-Pacific Real-time U.S. stock Auction of 4 and 8 week bills;
WSJ quotes are available on announced on June 18; settles on June 25

Australia S&P/ASX 200 6554.00 1.71 5467.6 • 6554.0 16.1
China Shanghai Composite 2881.97 1.92 2464.36 • 3270.80 15.6 WSJ.com. Track most- Auction of 5 year TIPS;
Hong Kong Hang Seng 27118.35 0.57 24585.53 • 30309.49 4.9 .COM active stocks, new announced on June 13; settles on June 28
India S&P BSE Sensex 39452.07 –0.41 33349.31 • 40267.62 9.4 highs/lows, mutual
Japan Nikkei Stock Avg 21116.89 1.11 19155.74 • 24270.62 5.5 funds and ETFs.
Public and Municipal Finance
Malaysia FTSE Bursa Malaysia KLCI 1638.63 –0.65 1598.32 • 1826.90 –3.1 Plus, get deeper money-flows data and Deals of $ 150 million or more expected this week
Singapore Straits Times 3222.63 1.78 2966.45 • 3407.02 5.0 email delivery of key stock-market Final Total Rating Bookrunner/
South Korea Kospi 2095.41 1.11 1993.70 • 2404.04 2.7 data. Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Taiwan TAIEX 10524.67 1.11 9382.51 • 11099.57 8.2
All are available free at
June 17 prelim. Connecticut 535.9 N.R. N.R. N.R. J P Morgan
Source: FactSet; Dow Jones Market Data WSJMarkets.com Hlth & Ed Facs Auth Securities LLC/—
Source:Thomson Reuters/Ipreo
Consumer Rates and Returns to Investor Benchmark Yields and Rates
U.S. consumer rates Selected rates Treasury yield curve Forex Race Currencies
A consumer rate against its New car loan Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. U.S.-dollar foreign-exchange rates in late New York trading
benchmark over the past year notes and bonds major U.S. trading partners US$vs, US$vs,
Bankrate.com avg†: 4.72% Fri YTDchg Fri YTDchg
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Think Mutual Bank 3.09%
4.00% 8% Americas Europe
5.50% Rochester, MN 800-288-3425
t
Cambridge Savings Bank 3.24% WSJ Dollar index Argentina peso .0227 43.9918 16.9 Czech Rep. koruna .04388 22.791 1.7
Prime rate 5.00 One year ago 3.00 4 s
t Brazil real .2566 3.8967 0.4 Denmark krone .1501 6.6619 2.3
Cambridge, MA 888-418-5626
Canada dollar .7455 1.3414 –1.7 Euro area euro 1.1211 .8920 2.3
4.50 First Savings Bank of Hegewisch 3.50% 2.00 0 .001430 699.50 .003477 287.58 2.7
t
t Chile peso 0.8 Hungary forint
New car loan Chicago, IL 773-646-4200 Ecuador US dollar 1 1 unch Iceland krona .007922 126.23 8.7
4.00 Friday 1.00 –4 s s Mexico peso .0522 19.1583 –2.5 Norway krone .1147 8.7172 0.9
First Command Bank 3.75% Yen Euro Uruguay peso .02830 35.3400 9.1 Poland zloty .2633 3.7978 1.5
Fort Worth, TX 888-763-7600
3.50 0.00 –8 Russia ruble .01552 64.419 –7.0
Asia-Pacific
J A SO N D J FMA M J PNC Bank 3.89% 1 3 6 1 2 3 5 710 30 Sweden krona .1054 9.4904 7.2
Washington, DC 2018 2019 Australian dollar .6872 1.4552 2.6
2018 2019 888-PNC-BANK month(s) years Switzerland franc 1.0013 .9987 1.7
China yuan .1444 6.9254 0.7
maturity Hong Kong dollar .1278 7.8274 –0.1 Turkey lira .1694 5.9015 11.6
Yield/Rate (%) 52-Week Range (%) 3-yr chg
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; Dow Jones Market Data India rupee .01433 69.781 0.3 Ukraine hryvnia .0378 26.4680 –4.5
Indonesia rupiah .0000698 14325 –0.4 UK pound 1.2589 .7943 1.4
Federal-funds rate target 2.25-2.50 2.25-2.50 1.75 l 2.25 2.00
Prime rate* 5.50 5.50 5.00 l 5.50 2.00
Corporate Borrowing Rates and Yields Japan yen .009212 108.55 –0.9
Middle East/Africa
Kazakhstan tenge .002602 384.28 –0.1
Libor, 3-month 2.40 2.45 2.31 l 2.82 1.75 Spread +/- Treasurys, 2.6536 .3769 –0.03
Macau pataca .1239 8.0689 unch Bahrain dinar
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.74 0.72 0.41 l 0.75 0.47 Bond total return index Last Wk ago Last Low High 52-wk 3-yr Malaysia ringgit .2400 4.1675 0.8 Egypt pound .0597 16.7620 –6.4
Five-year CD, annual yield 1.97 1.96 1.73 l 2.07 0.73 New Zealand dollar .6490 1.5408 3.5 Israel shekel .2777 3.6006 –3.7
10-yr Treasury, Ryan ALM 2.093 2.085 10.569 0.83 Pakistan rupee .00641 156.000 11.6 Kuwait dinar 3.2885 .3041 0.3
30-year mortgage, fixed† 3.92 3.95 3.90 l 4.99 0.35
DJ Corporate n.a. 3.454 n.a. n.a. Philippines peso .0192 52.070 –0.8 Oman sul rial 2.5976 .3850 –0.01
15-year mortgage, fixed† 3.32 3.38 3.32 l 4.34 0.50 Singapore dollar .7292 1.3714 0.6
Aggregate, Barclays Capital 2.620 2.620 n.a. 39 55 7.41 2.28 Qatar rial .2747 3.641 0.1
Jumbo mortgages, $484,350-plus† 4.32 4.30 4.25 l 5.16 -0.17 South Korea won .0008425 1186.88 6.5 Saudi Arabia riyal .2666 3.7503 –0.03
High Yield 100, Merrill Lynch 6.057 6.131 394 283 509 5.480 6.708
Five-year adj mortgage (ARM)† 4.08 4.00 3.94 l 4.89 1.05 Sri Lanka rupee .0056590 176.71 –3.4 South Africa rand .0675 14.8172 3.2
Fixed-Rate MBS, Barclays 2.810 2.800 n.a. 25 47 6.23 2.01 .03173 31.512 3.0
New-car loan, 48-month 4.72 4.79 3.70 l 4.81 1.53 Taiwan dollar
Muni Master, Merrill 1.873 1.852 7 7 21 6.343 2.376 Thailand baht .03203 31.220 –3.4 Close Net Chg % Chg YTD%Chg
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
EMBI Global, J.P. Morgan 5.949 5.977 377 349 441 9.887 5.099 Vietnam dong .00004285 23335 0.6 WSJ Dollar Index 90.78 0.39 0.43 1.24
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Sources: Tullett Prebon, Dow Jones Market Data
CLOSED-END FUNDS
wsj.com/funds
Listed are the 300 largest closed-end funds as 52 wk 52 wk 52 wk Prem12 Mo 52 wk
measured by assets. Closed-end funds sell a limited Prem Ttl Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Prem Ttl
number of shares and invest the proceeds in securities. Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
Unlike open-end funds, closed-ends generally do not BR MuniHoldings Qly MFL 14.46 13.24 -8.4 5.1
buy their shares back from investors who wish to cash Gabelli Equity Tr GAB 5.77 6.12 +6.1 4.4 CLEARBRIDGEENGYMDSOPP EMO NA 9.08 NA -7.6 Nuveen Mtge Oppty Term JLS 23.23 23.15 -0.3 7.4 BR MH Qly 2 MUE 13.77 12.38 -10.1 5.0 SharesPost 100;A 29.38 NA NA -0.8
in their holdings. Instead, fund shares trade on a stock GeneralAmer GAM 41.35 34.87 -15.7 6.1 CLEARBRIDGEMLP&MDSTMTR CTR NA 9.28 NA -6.9
exchange. NA signifies that the information is not
Investment Grade Bond Funds BR MuniVest Fd MVF 9.53 9.09 -4.6 5.2 SharesPost 100:I 29.48 NA NA -0.6
available or not applicable. NS signifies fund not in JHancockTaxAdvDiv HTD 26.06 24.80 -4.8 19.9 ClearBridge MLP & Midstm CEM NA 11.92 NA -8.1 BlRck Core Bond BHK 14.74 13.70 -7.1 5.7 BR MuniVest 2 MVT 15.05 14.65 -2.7 5.1 SharesPost 100:L 29.28 NA NA -1.1
existence of entire period. 12 month yield is computed Librty AllStr Eq USA 6.53 6.29 -3.7 5.2 ChnStrInfr UTF 26.48 25.35 -4.3 21.5 BR Credit Alloc Inc BTZ 14.30 12.82 -10.3 6.4 BR MuniYield Fd MYD 14.73 14.35 -2.6 5.0 USQ Core Real Estate:I 25.94 NA NA 5.7
by dividing income dividends paid (during the previous Royce Micro-Cap Tr RMT 8.96 7.96 -11.2 -15.2 COHEN&STEERSMLPINC&E MIE 9.74 9.46 -2.9 3.2 J Han Income JHS 15.11 14.14 -6.4 4.9 BR MuniYield Qlty MQY 15.90 14.50 -8.8 4.7 USQ Core Real Estate:IS 25.94 NA NA 5.7
twelve months for periods ending at month-end or Royce Value Trust RVT 15.21 13.50 -11.2 -9.2
during the previous fifty-two weeks for periods ending Cohen&SteersQualInc RQI 14.38 14.19 -1.3 30.1 MFS Intmdt MIN 4.08 3.82 -6.4 9.2 BR MuniYld Qlty2 MQT 13.95 12.45 -10.8 4.6 Versus Cap MMgr RE Inc:I 28.29 NA NA NE
at any time other than month-end) by the latest Source Capital SOR 41.40 35.81 -13.5 -9.3 CohenStrsREITPref RNP 23.52 21.72 -7.7 22.4 Western Asset Inf-Lk Inc WIA NA 11.31 NA 3.6 BR MuniYld Qly 3 MYI 14.63 13.08 -10.6 4.6 Versus Capital Real Asst 25.29 NA NA 3.5
month-end market price adjusted for capital gains Tri-Continental TY 29.86 26.80 -10.2 5.0 Cohen&Steers TotRet RFI 13.86 14.33 +3.4 24.4 Western Asset Inf-Lk O&I WIW NA 11.01 NA 3.9 BNY Mellon Muni Bd Infra DMB 14.29 13.69 -4.2 4.7 Wildermuth Endwmnt:A 13.54 NA NA 4.9
distributions. Specialized Equity Funds Loan Participation Funds
Source: Lipper
Columbia Sel Prm Tech Gr STK 19.27 19.64 +1.9 -1.3 BNY Mellon Str Muni Bond DSM 8.22 8.01 -2.6 5.2 Wildermuth Endwmnt:C 13.20 NA NA 4.1
Aberdeen Glb Prem Prop AWP 6.78 6.31 -6.9 8.2 DNP Select Income DNP 10.30 11.76 +14.1 16.5 Apollo Senior Floating AFT NA 14.85 NA 8.7 BNY Mellon Strat Muni LEO 8.54 8.19 -4.1 5.1 Wildermuth Endowment:I 13.67 NA NA 5.2
Friday, June 14, 2019 Adams Natural Resources PEO 19.03 15.87 -16.6 -16.1 BR Debt Strategy DSU 12.12 10.67 -12.0 7.8
Duff&Ph Glbl Util Inc Fd DPG 16.84 15.35 -8.8 19.1 DWS Muni Inc KTF 12.44 11.20 -10.0 4.9 Income & Preferred Stock Funds
52 wk GI NFJ DivInt&PremStr NFJ 13.68 12.07 -11.8 0.6 EtnVncEqtyInc EOI 15.04 14.70 -2.3 -1.4 BR F/R Inc Str FRA 14.48 12.81 -11.5 6.6 EVMuniBd EIM 13.75 12.62 -8.2 4.1
Prem Ttl Destra Multi-Altrntv;A 13.51 NA NA -1.6
BR Enh C&I CII 16.64 15.46 -7.1 -0.3 EtnVncEqtyIncoII EOS 16.36 16.55 +1.2 0.1 BlackRock Floatng Rt Inc BGT 14.05 12.37 -12.0 6.3 EVMuniIncm EVN 13.55 12.30 -9.2 4.7 Destra Multi-Altrntv;C 13.07 NA NA -2.3
Fund (SYM) NAV Close /Disc Ret BlackRock Energy & Res BGR 12.62 11.21 -11.2 -17.5 Blackstone / GSO Strat BGB 15.73 14.58 -7.3 10.6
EVRskMnDvsEqInc ETJ 9.41 9.39 -0.2 6.7 EVNatMuniOpp EOT 21.43 23.11 +7.8 4.4 Destra Multi-Altrntv;I 13.74 NA NA -1.3
General Equity Funds BlackRock Eq Enh Div BDJ 9.43 8.58 -9.0 -0.7 ETnVncTxMgdBuyWrtInc ETB 14.76 15.41 +4.4 3.9 Blackstone/GSO Sr Flt Rt BSL 16.88 16.72 -0.9 8.8 InvAdvMuIncTrII VKI 11.91 10.88 -8.6 5.4 Destra Multi-Altrntv;L 13.22 NA NA -2.0
Adams Diversified Equity ADX 17.43 15.20 -12.8 11.2 BlackRock Enh Glbl Div BOE 11.83 10.42 -11.9 0.2 EtnVncTxMgdBuyWrtOpp ETV 14.09 14.41 +2.3 1.8 Eagle Point Credit ECC NA 17.73 NA 14.1 Invesco MuniOp OIA 7.59 7.61 +0.3 5.2
BlackRock Enh Intl Div BGY 6.14 5.41 -11.9 0.3 Flat Rock Opportunity 19.84 NA NA NS
Boulder Growth & Income BIF 13.22 11.00 -16.8 6.8 EvTxMnDvsEqInc ETY 11.89 11.87 -0.2 3.1 EtnVncFltRteInc EFT 15.25 13.51 -11.4 5.7 InvescoMuOppTr VMO 13.30 12.16 -8.6 5.3
BlackRock Hlth Sciences BME 37.31 37.57 +0.7 1.6 Variant Altrntv Inc:Inst 26.06 NA NA NS
Central Secs CET 35.65 29.53 -17.2 8.6 EtnVncTxMgdGlbB ETW 10.19 9.66 -5.2 -11.6 EV SenFlRtTr EFR 14.91 13.17 -11.7 6.0 InvescoMuTr VKQ 13.32 12.24 -8.1 5.2
BlackRock Res & Comm BCX 8.99 7.80 -13.2 -10.0 EVSnrIncm EVF 7.06 6.17 -12.6 6.3 Variant Altrntv Inc:Inv 26.08 NA NA NS
CohenStrsCEOppFd FOF 13.15 12.75 -3.0 6.6 EVTxMnGblDvEqInc EXG 8.57 8.09 -5.6 -6.2 InvescoQual Inc IQI 13.44 12.34 -8.2 5.3 Convertible Sec's. Funds
BlackRock Sci&Tech Trust BST 32.01 32.15 +0.4 -0.1 FT/Sr Fltg Rte Inc 2 FCT 13.70 11.96 -12.7 6.0 InvTrInvGrMu VGM 13.74 12.45 -9.4 5.1
EVTxAdvDivIncm EVT 23.49 23.30 -0.8 6.3 First Trust Energy Inc G FEN 21.87 21.83 -0.2 6.1 Calmos Dyn Conv and Inc CCD 19.59 19.35 -1.2 0.3
BlackRock Utl Inf & Pwr BUI 20.77 21.98 +5.8 20.2 FT/Sr Fltg Rte 2022 TgTr FIV 9.49 8.83 -7.0 5.4 InvescoValMunInc IIM 16.28 15.17 -6.8 4.8
GabelliDiv&IncTr GDV 22.96 21.23 -7.5 -2.9 First Tr Enhanced Eq FFA 15.93 15.47 -2.9 3.3 World Equity Funds
CBRE ClrnGlbRlEst IGR 8.75 7.55 -13.7 8.4 Highland Income HFRO 14.49 13.53 -6.6 6.9 MAINSTAY:MKDEFTRMUNOP MMD NA 20.93 NA 4.9
FirstTrEnergyInfra FIF 17.77 15.81 -11.0 8.1 ACAP Strategic:A 17.81 NA NA 5.5
InvDYCrOpp VTA 12.56 10.97 -12.7 8.4 Nuveen AMT-Fr Mu Val NUW 16.64 16.89 +1.5 4.0
FirstTrMLPEner&Inc FEI 12.48 11.66 -6.6 1.9 ACAP Strategic:W 13.32 NA NA 6.3
InvSnrIncTr VVR 4.76 4.16 -12.6 6.4 Nuveen AMT-Fr Qlty Mun I NEA 15.26 13.65 -10.6 4.7
Gabelli Healthcare GRX 11.84 10.27 -13.3 5.8 BMO LGM Front ME;I 8.81 NA NA -18.2
Nuveen Credit Strat Inc JQC 8.51 7.83 -8.0 10.1 Nuveen AMT-Fr Mu CI NVG 16.72 15.81 -5.4 5.0
Gab Utility GUT 4.98 6.95 +39.6 34.5
A Week in the Life of the DJIA GAMCOGlGold&NatRes GGN 4.29 4.42 +3.0 -1.6
NuvFloatRateIncFd JFR 11.01 9.82 -10.8 7.4
NuvFloatRteIncOppty JRO 10.94 9.71 -11.2 7.5
Nuv Enh Muni Cr Inc NZF 16.38 15.84 -3.3 5.0
CalamosGlbTotRet CGO 11.72 12.86 +9.7 -1.8
Prem12 Mo
J Han Finl Opptys BTO 32.38 31.40 -3.0 -13.4 Nuveen Enh Muni Val NEV 15.08 14.15 -6.2 4.9
A look at how the Dow Jones Industrial Average component stocks Nuveen Senior Income NSL 6.58 5.88 -10.6 7.4 Nuveen Int Dur Mun Term NID 14.26 13.36 -6.3 3.8 Fund (SYM) NAV Close /Disc Yld
Neuberger Brmn MLP & EI NML 8.36 7.46 -10.8 -8.8 PionrFltRate Tr PHD NA 10.65 NA 6.9
did in the past week and how much each moved the index. The DJIA NubrgrRlEstSec NRO 5.56 5.14 -7.6 12.9 NuvMuniHiIncOpp NMZ 13.85 13.99 +1.0 5.0 U.S. Mortgage Bond Funds
High Yield Bond Funds Nuveen Muni Val NUV 10.42 10.18 -2.3 3.6 Vertical Capital Income NA NA NA 3.2
gained 105.67 points, or 0.41%, on the week. A $1 change in the price NuvDow30DynOverwrite DIAX 17.76 17.21 -3.1 -3.2 AllianceBernGlHiIncm AWF NA 11.60 NA 7.2
NuvCorEqAlpha JCE 14.32 13.75 -4.0 -1.7 Nuveen Quality Muni Inc NAD 15.59 13.81 -11.4 4.7 Loan Participation Funds
of any DJIA stock = 6.78-point change in the average. To date, a Barings Glb SD HY Bd BGH 18.67 18.14 -2.8 10.1 NA NA NA NS
NuveenDiversDiv&Inc JDD 11.39 10.51 -7.7 -1.7 Nuveen Sel TF 2 NXQ 15.08 14.34 -4.9 3.5 1WS Credit Income
BR Corporate HY HYT 11.62 10.50 -9.6 8.4 Angel Oak Str Crdt:Inst 24.70 NA NA 8.3
$1,000 investment on Dec. 31 in each current DJIA stock component Nuveen Engy MLP Tot Rtn JMF 9.57 8.92 -6.8 -7.4 PIMCO MuniInc PMF 13.12 15.09 +15.0 4.8
BlackRock Ltd Dur Inc BLW 16.76 14.92 -11.0 6.4 Blackstone/GSO FR EI D 24.35 NA NA NS
would have returned $34,007, or a gain of 13.36%, on the $30,000 NuveenNasdaq100DynOv QQQX 22.06 21.77 -1.3 -15.6 PIMCOMuniIncII PML 12.31 15.34 +24.6 5.1
BNY Mellon Hi Yield Str DHF 3.31 3.03 -8.5 9.3
Nuv Real Est JRS 11.14 10.46 -6.1 16.1 Pimco Muni III PMX 11.13 12.43 +11.7 5.3 Blackstone/GSO FR EI I 24.36 NA NA 6.7
investment, including reinvested dividends. Brookfield Real Asst Inc RA 23.46 21.85 -6.9 11.2
Nuveen Rl Asst Inc & Gro JRI 18.65 16.47 -11.7 10.4 PioneerHilncAdv MAV 11.83 10.73 -9.3 5.4 Blackstone/GSO FR EI T 24.30 NA NA 6.2
CrSuisHighYld DHY 2.56 2.52 -1.6 9.5
NuvS&P500DynOvFd SPXX NA 15.58 NA -7.5 PioneerMunHiIcmT MHI 12.85 12.35 -3.9 5.1 Blackstone/GSO FR EI T-I 24.83 NA NA NS
The Week’s Action DoubleLine Inc Sol DSL NA 20.08 NA 9.0
NuvSP500BuyIncFd BXMX 13.11 12.98 -1.0 -2.0 First Tr Hi Inc Lng/Shrt FSD 16.79 14.64 -12.8 8.8 Putnam Mgd Inc PMM 8.07 7.72 -4.3 4.8 Blstn Commnty Dev 9.86 NA NA 3.5
Pct Stock price Point chg $1,000 Invested(year-end '18) ReavesUtilityIncome UTG 34.94 35.56 +1.8 33.6 IVY HIGH INCOME OPP IVH 15.24 13.53 -11.2 8.9 Putnam Muni Opp PMO 13.51 12.69 -6.1 4.6 CLIFFWATER CL FD;I 10.00 NA NA NS
chg (%) change in average* Company Symbol Close $1,000 Tortoise Enrgy Infra Crp TYG NA 22.24 NA -10.9 NeubHgYldStrt NHS 12.60 11.76 -6.7 7.1 Western Asset Mgd Muni MMU 13.74 13.80 +0.4 5.0 CNR Strategic Credit 10.46 NA NA NS
Tortoise Midstream Enrgy NTG NA 13.44 NA -15.5 Westn Asst Mu Def Opp Tr MTT NA 21.82 NA 4.0 FedProj&TrFinanceTendr 10.08 NA NA 4.4
4.29 8.47 57.44 Home Depot HD $205.77 $1,215 NexPointStratOppty NHF 21.77 19.17 -11.9 12.9
Income & Preferred Stock Funds Nuveen Crdt Opps 2022 TT JCO 9.69 9.89 +2.1 5.8 Single State Muni Bond FS Global Crdt Opptys D NA NA NA 6.7
2.84 3.01 20.41 WalMart WMT 109.07 1,183 CalamosStratTot CSQ 12.66 12.43 -1.8 4.3 Nuveen Global High Inc JGH 17.34 15.21 -12.3 8.4 BlackRock CA Mun BFZ 15.05 13.17 -12.5 4.2 Invesco Sr Loan A 6.57 NA NA 4.5
CohenStrsLtdDurPref&Inc LDP 25.03 24.90 -0.5 6.2 Nuveen HI Dec 2019 Tgt JHD 9.98 9.90 -0.8 4.0 BR MH CA Qly Fd Inc MUC 15.42 13.57 -12.0 4.2 Invesco Sr Loan C 6.59 NA NA 3.8
2.62 3.61 24.48 Walt Disney DIS 141.65 1,292 BR MH NJ Qly MUJ 15.77 13.92 -11.7 4.5 Invesco Sr Loan IB 6.58 NA NA 4.8
CohenStrsSelPref&Income PSF 25.90 28.80 +11.2 14.2 Nuveen HI Nov 2021 Tgt JHB 9.92 9.82 -1.0 5.5
2.23 2.77 18.79 Caterpillar CAT 127.23 1,014 FirstTrIntDurPref&Inc FPF 23.24 22.31 -4.0 11.3 PGIM Global High Yield GHY NA 14.09 NA 7.6 BR MH NY Qly MHN 14.85 13.13 -11.6 4.0 Invesco Sr Loan IC 6.57 NA NA 4.6
JHanPrefInc HPI 21.05 23.32 +10.8 17.9 PGIM High Yield Bond ISD 16.41 14.31 -12.8 7.6 BR MuniYld CA MYC 15.37 13.98 -9.0 4.4 Invesco Sr Loan Y 6.57 NA NA 4.8
2.23 2.43 16.48 Procter & Gamble PG 111.20 1,228 BR MuniYld CA Qly MCA 15.63 14.21 -9.1 4.4 Sierra Total Return:T 25.14 NA NA 5.2
JHPrefIncII HPF 20.74 22.52 +8.6 16.4 PioneerHilncmTr PHT 9.96 9.20 -7.6 8.1
HnckJPfdInco III HPS 18.44 19.05 +3.3 13.2 Wells Fargo Income Oppty EAD NA 7.97 NA 8.8 BR MuniYld MI Qly MIY 15.55 13.70 -11.9 4.6 Thrivent Church Ln&Inc:S NA NA NA NS
1.82 1.04 7.05 Verizon VZ 58.28 1,058 BR MuniYld NY Qly MYN 14.23 12.66 -11.0 4.0 High Yield Bond Funds
J Han Prm PDT 15.31 16.83 +9.9 16.3 WstAstHIF II HIX 7.35 6.78 -7.8 8.4
1.38 1.84 12.48 IBM IBM 135.15 1,217 LMP CapInco SCD NA 13.59 NA 12.6 Western Asset Hi Inc Opp HIO NA 5.00 NA 6.6 EVCAMuniBd EVM 12.41 10.96 -11.7 4.3 Griffin Inst Access Cd:A NA NA NA 6.5
Nuveen Pref & Inc Opp JPC 9.91 9.67 -2.4 7.0 Western Asset Hi Yld D O HYI NA 14.86 NA 7.3 InvCaValMuIncTr VCV 13.23 12.60 -4.8 4.8 Griffin Inst Access Cd:C NA NA NA 6.6
1.36 2.59 17.57 Apple AAPL 192.74 1,232 Other Domestic Taxable Bond Funds InvPAValMuIncTr VPV 13.84 12.65 -8.6 5.4 Griffin Inst Access Cd:F NA NA NA 6.5
Nuveen Fd JPS 9.59 9.29 -3.1 7.0
1.15 0.60 4.07 Walgreens WBA 52.57 781 Nuveen Pref & Inc Term JPI 24.05 23.32 -3.0 6.3 Ares Dynamic Crdt Alloc ARDC NA 15.25 NA 8.5 InvTrInvGrNYMu VTN 14.36 13.25 -7.7 4.9 Griffin Inst Access Cd:I NA NA NA 6.6
Nuveen TxAdvDivGr JTD 16.54 16.06 -2.9 3.5 Barings Corporate Inv MCI NA 15.66 NA 7.8 Nuveen CA AMT-F Qual MI NKX 16.02 14.40 -10.1 4.4 Griffin Inst Access Cd:L NA NA NA 6.6
1.11 1.54 10.44 Johnson & Johnson JNJ 140.09 1,100 BlackRock Mlt-Sctr Inc BIT 18.48 17.11 -7.4 8.4 Nuveen CA Val NCA 10.52 10.05 -4.5 3.4 PIMCO Flexible Cr I;A 10.06 NA NA NS
TCW Strat Income TSI NA 5.70 NA 10.1
Virtus Glb Div & Inc ZTR 10.31 11.29 +9.5 12.3 BlackRock Tax Muni Bd BBN 24.04 23.22 -3.4 6.1 NuveenCAQtyMuInc NAC 15.72 14.26 -9.3 4.6 PIMCO Flexible Cr I;Inst 10.06 NA NA 10.2
0.97 1.85 12.55 Goldman Sachs GS 191.66 1,157 DoubleLine:Oppor Crdt Fd DBL 20.63 20.69 +0.3 8.0 Nuveen MD Qual Muni Inc NMY 14.80 12.84 -13.2 4.1 PionrILSBridge NA NA NA NS
Convertible Sec's. Funds
0.80 1.05 7.12 Microsoft MSFT 132.45 1,314 Duff&Ph Util Cor DUC 9.43 8.67 -8.1 4.8 Nuveen MI Qual Muni Inc NUM 15.56 13.55 -12.9 3.9 WA Middle Mkt Dbt 718.99 NA NA 9.4
GI Conv & Inc NCV 5.50 5.61 +2.0 -8.6
EVLmtDurIncm EVV 14.47 12.65 -12.6 6.4 NuvNJ Qual Muni Inc NXJ 16.15 14.02 -13.2 4.6 WA Middle Mkt Inc 749.90 NA NA 9.3
AGI Conv & Inc II NCZ 4.93 5.01 +1.6 -6.2
.
0.73 0.89 6.04 American Express AXP 122.00 1,290 Franklin Ltd Dur Income FTF 10.35 9.62 -7.1 11.5 Nuveen NY AMT/Fr Qual MI NRK 14.62 13.10 -10.4 4.1 Other Domestic Taxable Bond Funds
AGI Eqty & Conv Inc NIE 22.99 20.98 -8.7 1.4
KKR Income Opportunities KIO NA 15.74 NA 9.8 Nuveen NY Qual Muni Inc NAN 15.22 13.82 -9.2 4.2 Am Beacon Apollo TR:Y 10.17 NA NA NS
ly
0.60 0.66 4.48 JPMorgan Chase JPM 109.82 1,143 CalamosConvHi CHY 11.07 10.71 -3.3 -7.3
Nuveen OH Qual Muni Inc NUO 16.85 14.95 -11.3 3.6
CalmosConvOp CHI 10.52 10.22 -2.9 -4.5 MFS Charter MCR 8.90 8.14 -8.5 8.7 Am Beacon SP Enh Inc:Y 10.31 NA NA NS
0.39 0.32 2.17 Merck MRK 82.78 1,098 World Equity Funds Nuveen Taxable Muni Inc NBB 21.74 20.95 -3.6 5.5 Nuveen PA Qual Muni Inc NQP 15.59 13.67 -12.3 4.3 BR Credit Strat;Inst 10.11 NA NA NS
PIMCO Corp & Inc Oppty PTY 14.46 18.68 +29.2 8.9 Nuveen VA Qlty Mun Inc NPV 14.64 12.91 -11.8 4.1 BlackRock Mlt-Sctr Oppty 96.08 NA NA 7.7
Aberdeen Tot Dyn Div AOD 9.22 8.09 -12.3 -3.7
0.39 0.58 3.93 Travelers TRV 150.11 1,268 PIMCO Corp & Inc Strat PCN 14.65 17.92 +22.3 8.5 PIMCO CA PCQ 13.96 19.10 +36.8 4.9 BlackRock Mlt-Sec Opp II 100.89 NA NA NS
Calamos GloDynInc CHW 7.98 8.00 +0.3 -3.4
on PIMCOHilnco PHK 6.22 8.01 +28.8 11.9 PIMCOCAMuniII PCK 8.87 9.47 +6.8 4.4 Capstone Church Capital 12.47 NA NA 1.9
0.35 0.16 1.09 Intel INTC 46.19 997 Cdn Genl Inv CGI 36.02 24.64 -31.6 0.0
PIMCO IncmStrFd PFL 10.84 11.84 +9.2 9.2
China CHN NA 18.84 NA -11.2 CION Ares Dvsfd Crdt;A NA NA NA 5.3
0.05 0.08 0.54 3M MMM 166.69 889 EV TxAdvGlbDivInc ETG 17.00 15.58 -8.4 -3.6
PIMCO IncmStrFd II PFN 9.76 10.47 +7.3 10.0 52 wk CION Ares Dvsfd Crdt;C NA NA NA 5.3
Putnam Mas Int PIM 4.84 4.57 -5.6 6.9 Prem Ttl CION Ares Dvsfd Crdt;I NA NA NA 5.3
0.04 0.03 0.20 Nike NKE 83.44 1,132 EtnVncTxAdvOpp ETO 23.08 23.64 +2.4 3.0
Putnam Prem Inc PPT 5.40 5.15 -4.6 7.2 Fund (SYM) NAV Close /Disc Ret CION Ares Dvsfd Crdt;L NA NA NA 5.3
FirstTr Dyn Euro Eq Inc FDEU 15.08 13.68 -9.3 -9.5 Wells Fargo Multi-Sector ERC NA 12.46 NA 10.2
–0.09 –0.19 –1.29 McDonald’s MCD 205.29 1,170 Gabelli Multimedia GGT 7.78 8.01 +3.0 -9.1 Specialized Equity Funds CION Ares Dvsfd Crdt;W NA NA NA NS
us l,
World Income Funds CNR Select Strategies 10.24 NA NA 0.0

GDL Fund GDL 11.07 9.11 -17.7 1.6 Abrdn AP IncFd FAX 4.83 4.09 -15.3 5.6 Broadstone Rl Asst Acc:I 10.83 NA NA NS
–0.23 –0.39 –2.65 Visa V 169.66 1,290 India Fund IFN 23.97 21.60 -9.9 -2.5 Broadstone Rl Asst Acc:W 10.83 NA NA NS GL Beyond Income 1.62 NA NA NE
BrndywnGLB Glb Inc Oppts BWG NA 11.49 NA 7.4 Lord Abbett Cred Opps Fd 10.07 NA NA NS
–0.29 –0.15 –1.02 Dow DOW 51.15 1,041 Japan Smaller Cap JOF NA 8.37 NA -16.5 EtnVncStDivInc EVG 14.82 13.28 -10.4 6.0 Griffin Inst Access RE:A 27.58 NA NA 7.6
al a
OFI Carlyle Pvt Cred:A NA NA NA NS

e
Korea KF 31.26 27.60 -11.7 -16.9 MS EmMktDomDebt EDD 7.66 6.78 -11.6 9.2 Griffin Inst Access RE:C 26.81 NA NA 6.7
–0.31 –0.23 –1.56 Exxon Mobil XOM 74.35 1,115 Mexico MXF NA 13.74 NA -0.2 Griffin Inst Access RE:I 27.85 NA NA 7.8 OFI Carlyle Pvt Cred:I NA NA NA NS
PIMCO Dyn Crd & Mrt Inc PCI 23.24 24.34 +4.7 9.7 OFI Carlyle Pvt Cred:L NA NA NA NS
–0.35 –0.18 –1.22 Coca-Cola KO 51.31 1,102 MS ChinaShrFd CAF 23.05 20.21 -12.3 -13.3 PIMCO Dynamic Income PDI 27.93 32.93 +17.9 9.7 NexPointHCOpp;A 16.09 NA NA -19.6
OFI Carlyle Pvt Cred:N NA NA NA NS
ci on
MS India IIF 23.32 20.95 -10.2 -7.7 PIMCO Income Opportunity PKO 24.52 26.70 +8.9 10.0 NexPointHCOpp;C 15.96 NA NA -20.2
–0.37 –0.16 –1.09 Pfizer PFE 42.76 997 New Germany GF 15.67 13.75 -12.3 -8.7 PIMCO Stratg Inc RCS 7.06 9.66 +36.8 8.9 NexPointRlEstStrat;A 20.72 NA NA 6.7
OFI Carlyle Pvt Cred:Y NA NA NA NS
Swiss Helvetia SWZ 8.95 7.67 -14.3 -0.6 Palmer Square Opp Inc 18.86 NA NA 5.3
Templeton Em Inc TEI 10.90 10.20 -6.4 9.9 NexPointRlEstStrat;C 20.83 NA NA 6.0
–0.55 –0.67 –4.54 Chevron CVX 120.81 1,133 Templeton Dragon TDF 20.48 18.47 -9.8 -9.1 Templtn Glbl Inc GIM 7.04 6.35 -9.8 6.6
Resource Credit Inc:A 11.08 NA NA 6.3
NexPointRlEstStrat;Z 20.82 NA NA 6.9 Resource Credit Inc:C 11.19 NA NA 5.6
–0.57 –1.40 –9.50 UnitedHealth Group UNH 245.37 993 Templeton Em Mkt EMF 16.25 14.48 -10.9 1.5 WstAstEmergDebt EMD NA 13.92 NA 8.8 PREDEX;I 26.08 NA NA 4.4
VirtusTotalRetFd ZF 11.19 10.45 -6.6 11.5 Western Asset Gl Cr D Op GDO 18.11 16.88 -6.8 7.3 Resource Credit Inc:I 11.11 NA NA 6.6
–1.85 –6.54 –44.36 Boeing BA 347.16 1,088 PREDEX;T 26.11 NA NA 4.3 Resource Credit Inc:L 11.07 NA NA 6.1
Wells Fargo Gl Div Oppty EOD NA 5.40 NA 7.2 National Muni Bond Funds PREDEX;W 26.11 NA NA 4.3
AllBerNatlMunInc AFB 15.03 13.39 -10.9 4.1 Resource Credit Inc:W 11.08 NA NA 6.3
er rs
–2.11 –1.18 –8.00 Cisco Systems CSCO 54.75 1,282 Prem12 Mo Resource RE Div Inc:A 10.61 NA NA 7.7 World Income Funds
Fund (SYM) NAV Close /Disc Yld BlckRk Inv Q Mun BKN 16.04 14.83 -7.5 4.6 Resource RE Div Inc:C 10.59 NA NA 6.9
–5.18 –6.85 –46.46 United Technologies UTX 125.30 1,190 BlackRock Muni 2030 Tgt BTT 25.28 23.01 -9.0 3.3 Destra Int&Evt-Dvn Crd:A 24.66 NA NA NS
U.S. Mortgage Bond Funds Resource RE Div Inc:D 10.76 NA NA 7.1 Destra Int&Evt-Dvn Crd:I 24.67 NA NA 3.8
BlackRock Muni BFK 14.32 13.92 -2.8 4.9
BlckRk Income BKT 6.38 6.04 -5.3 6.6 Resource RE Div Inc:I 11.06 NA NA 7.9 Destra Int&Evt-Dvn Crd:L 24.65 NA NA NS
*Based on Composite price. DJIA is calculated on primary-market price. BlackRock Muni II BLE 14.80 14.48 -2.2 4.9
Source: Dow Jones Market Data; FactSet. Invesco HI 2023 Tgt Term IHIT 10.46 10.31 -1.4 5.8 BlckRk Muni Inc Qly BYM 15.21 13.57 -10.8 4.6 Resource RE Div Inc:L 10.61 NA NA 7.4 Destra Int&Evt-Dvn Crd:T 24.63 NA NA NS
Resource RE Div Inc:T 10.58 NA NA 6.9 National Muni Bond Funds
m e
BR MuniAssets Fd MUA 14.22 15.34 +7.9 4.3

BR MuniEnhanced MEN 11.91 10.91 -8.4 5.2 Resource RE Div Inc:U 10.62 NA NA 7.7 PIMCO Flex Mun Inc;Inst 10.42 NA NA NS
Resource RE Div Inc:W 10.77 NA NA 7.6 Tortoise Tax-Adv Soc Inf 10.02 NA NA 3.7
Insider-Trading Spotlight
m rp
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys
new information about the prospects of a company. Insiders are required to report large trades to the SEC Borrowing Benchmarks | WSJ.com/bonds
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by
Thomson Financial on June 14, and year-to-date stock performance of the company Money Rates June 14, 2019
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
co Fo
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: guide to general levels but don’t always represent actual transactions.
unknown VP: vice president Excludes pure options transactions
Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low
Biggest weekly individual trades May index Chg From (%)
level April '19 May '18 High 2.5000 2.6000 2.6500 2.0625 Commercial paper (AA financial)
Based on reports filed with regulators this past week Low 2.2200 2.3000 2.4400 1.8000
Bid 2.3000 2.3000 2.4400 1.8800 90 days 2.31 2.33 2.80 2.10
No. of shrs in Price range ($) $ Value U.S. consumer price index
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Offer 2.3500 2.3900 2.4500 1.9000
All items 256.092 0.21 1.8 Libor
Core 262.590 0.10 2.0 Treasury bill auction One month 2.38175 2.41213 2.52238 2.06000
Buyers 4 weeks 2.215 2.290 2.470 1.770 Three month 2.40200 2.45063 2.82375 2.30963
International rates 13 weeks 2.240 2.300 2.465 1.900
June 5-7 MGM Resorts International MGM K. Meister DI 2,875 25.82-26.45 75,245 27.66 14.0 Six month 2.27738 2.37175 2.90788 2.27738
26 weeks 2.140 2.255 2.505 2.075
June 10-12 K. Meister DI 636 27.58-27.97 17,665 Week 52-Week One year 2.24650 2.34613 3.14413 2.24650
June 5-7 Fox Corp FOXA K. Murdoch CB 600 34.15-34.42 20,560 35.24 ...
Latest ago High Low Secondary market
Euro Libor
June 6 Transatlantic Petroleum TAT N. Mitchell CEO 6,773 .78 5,249 0.79 -24.0 Prime rates Fannie Mae
n-
One month -0.423 -0.421 -0.390 -0.427

U.S. 5.50 5.50 5.50 5.00 30-year mortgage yields
June 6-10 RE/MAX Holdings RMAX D. Liniger DO 141 31.35-32.45 4,470 31.64 2.9 Three month -0.359 -0.367 -0.324 -0.371
Canada 3.95 3.95 3.95 3.45 30 days 3.211 3.335 4.607 3.211
June 6-10 G. Liniger DOI 141 31.35-32.45 4,470 Six month -0.341 -0.325 -0.288 -0.341
Japan 1.475 1.475 1.475 1.475 60 days 3.238 3.365 4.632 3.238
June 11-12 D. Liniger DO 90 31.92-32.36 2,910 One year -0.255 -0.226 -0.159 -0.255
June 11-12 G. Liniger DOI 90 31.92-32.36 2,910 Policy Rates Other short-term rates
no
Euro zone 0.00 0.00 0.00 0.00 Value 52-Week

June 6-7 Intrexon Corp XON R. Kirk CEOI 483 5.23-5.26 2,534 7.03 7.5 Latest Traded High Low
Switzerland 0.50 0.50 0.50 0.50 Week 52-Week
June 6-7 R. Kirk CEOI 322 5.23-5.26 1,689 Latest ago high low
Britain 0.75 0.75 0.75 0.50 DTCC GCF Repo Index
June 6-7 Odonate Therapeutics ODT K. Tang CEOI 76 26.31-27.95 2,087 25.00 77.6 Australia 1.25 1.25 1.50 1.25 Call money Treasury 2.408 64.600 5.149 1.916
June 11 i3 Verticals IIIV G. Daily CEOI 85 23.49 1,992 24.77 2.8 4.25 4.25 3.75 MBS 2.418 65.550 4.434 1.928
Overnight repurchase 4.25
June 10 Occidental Petroleum OXY V. Hollub CEO 37 48.15 1,804 49.31 -19.7 U.S. 2.43 2.35 3.35 1.92 Notes on data:
June 7-11 Entercom Communications ETM J. Field HI 300 5.81-5.94 1,766 5.95 4.2 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
U.S. government rates and is effective December 20, 2018. Other prime rates aren’t directly comparable; lending practices
June 6 Continental Resources CLR H. Hamm CEO 39 38.76 1,496 36.72 -8.6
Discount vary widely by location; Discount rate is effective December 20, 2018. DTCC GCF Repo Index is
June 5-7 Revlon REV R. Perelman DOI 50 23.05-23.51 1,166 23.30 -7.5 Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value
3.00 3.00 3.00 2.50 traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET.
Sellers Federal funds Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet;
Effective rate 2.3800 2.3900 2.4800 1.9200 Tullett Prebon Information, Ltd.
June 7 BJ's Wholesale Club Holdings BJ J. Galashan DOI 8,750 24.53 214,638 24.54 10.7
June 7 J. Seiffer DOI 8,750 24.53 214,638
June 10 Avalara AVLR E. Gilhuly DI 1,810 70.75 128,058 67.50 116.7 Cash Prices | WSJ.com/commodities Friday, June 14, 2019
June 6-7 Walmart WMT S. Walton DOI 1,015 105.28-105.45 106,889 109.07 17.1 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
June 6-7 A. Walton BI 1,015 105.28-105.45 106,889
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
June 6-7 J. Walton BI 1,015 105.28-105.45 106,889
months.
June 10 Antero Resources AR P. Kagan DI 16,094 6.17 99,301 5.70 -39.3
Friday Friday Friday
June 10 J. Levy DI 16,094 6.17 99,301
Palladium,Engelhard industrial 1453.0 Wheat,No.2 soft red,St.Louis-bp,u 5.7450
June 10 Elastic NV ESTC M. Volpi DI 659 81.39-82.81 53,621 74.47 4.2 Energy
Palladium,Engelhard fabricated 1553.0 Wheat - Hard - KC (USDA) $ per bu-u 4.8975
June 10 S. Banon CEO 200 79.39-80.39 15,938 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 59.250 Aluminum, LME, $ per metric ton *1756.0 Wheat,No.1soft white,Portld,OR-u 5.9750
June 5 Workday WDAY D. Duffield DO 253 195.45-200.03 49,958 208.00 30.3 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.300 Copper,Comex spot 2.6345
Food
Metals Iron Ore, 62% Fe CFR China-s 109.4
June 10 Arista Networks ANET A. Bechtolsheim H 140* 250.26-255.22 35,458 236.08 12.0 Shredded Scrap, US Midwest-s,m 266 Beef,carcass equiv. index
June 7-10 Intuit INTU S. Cook ODI 133 254.10-263.59 34,569 254.13 29.1 Gold, per troy oz Steel, HRC USA, FOB Midwest Mill-s 533 choice 1-3,600-900 lbs.-u 193.70
Engelhard industrial 1352.44 select 1-3,600-900 lbs.-u 176.13
June 11 Addus HomeCare ADUS M. First DOI 440 74.08 32,595 72.05 6.1 Fibers and Textiles
Engelhard fabricated 1453.87 Broilers, National comp wtd. avg.-u,w 0.9463
June 7 Steris STE R. Steeves D 221* 137.36-138.02 30,535 140.43 31.4 Handy & Harman base 1351.25 Butter,AA Chicago 2.3650
Burlap,10-oz,40-inch NY yd-n,w 0.5700
Handy & Harman fabricated 1499.89 Cheddar cheese,bbl,Chicago 160.50
June 10 Motorola Solutions MSI J. Molloy O 166 161.58-163.44 26,878 160.35 39.4 Cotton,1 1/16 std lw-mdMphs-u 0.6219
LBMA Gold Price AM *1335.80 Cheddar cheese,blk,Chicago 178.25
June 7-10 EPAM Systems A. Dobkin CEO 125 176.77-177.29 22,135 174.50 50.4 Cotlook 'A' Index-t *77.50
EPAM LBMA Gold Price PM *1335.90 Milk,Nonfat dry,Chicago lb. 105.25
Krugerrand,wholesale-e 1402.23
Hides,hvy native steers piece fob-u 33.000
June 5-6 Zayo Group Holdings ZAYO D. Caruso CEO 656* 32.76 21,477 32.60 42.7 Coffee,Brazilian,Comp 0.9752
Maple Leaf-e 1415.72
Wool,64s,staple,Terr del-u,w n.a.
Coffee,Colombian, NY 1.3064
* Half the transactions were indirect **Two day transaction American Eagle-e 1415.72 Eggs,large white,Chicago-u 0.4850
p - Pink Sheets Mexican peso-e 1633.65
Grains and Feeds
Flour,hard winter KC 15.85
Austria crown-e 1324.60 Barley,top-quality Mnpls-u n.a. Hams,17-20 lbs,Mid-US fob-u 0.81
Austria phil-e 1415.72 Bran,wheat middlings, KC-u 70 Hogs,Iowa-So. Minnesota-u 77.03
Buying and selling by sector Silver, troy oz. Corn,No. 2 yellow,Cent IL-bp,u 4.4000 Pork bellies,12-14 lb MidUS-u 1.0572
Based on actual transaction dates in reports received this past week Engelhard industrial 15.0000 Corn gluten feed,Midwest-u,w 108.2 Pork loins,13-19 lb MidUS-u 1.0702
Engelhard fabricated 18.0000 Corn gluten meal,Midwest-u,w 354.1 Steers,Tex.-Okla. Choice-u 111.95
Sector Buying Selling Sector Buying Selling Handy & Harman base 14.9280 Cottonseed meal-u,w 215 Steers,feeder,Okla. City-u,w 155.88
Handy & Harman fabricated 18.6600 Hominy feed,Cent IL-u,w 95
Basic Industries 978,491 18,311,865 Finance 2,823,013 84,289,192 LBMA spot price *£11.6800 Meat-bonemeal,50% pro Mnpls-u,w 203 Fats and Oils
Business services 13,186 19,191,009 Health care 736,192 61,972,328 (U.S.$ equivalent) *14.7950 Oats,No.2 milling,Mnpls-u 3.2825 Corn oil,crude wet/dry mill wtd. avg.-u,w 27.0000
Coins,wholesale $1,000 face-a 11028 Rice, Long Grain Milled, No. 2 AR-u,w 24.13 Grease,choice white,Chicago-h 0.2750
Capital goods 0 0 Industrial 208,445 43,014,584
Other metals Sorghum,(Milo) No.2 Gulf-u 7.6525 Lard,Chicago-u n.a.
Consumer durables 0 2,620,795 Media 1,766,280 1,252,774 LBMA Platinum Price PM *809.0 SoybeanMeal,Cent IL,rail,ton48%-u 332.50 Soybean oil,crude;Centl IL-u 0.2796
Consumer nondurables 470,268 25,848,814 Technology 1,237,828 125,392,093 Platinum,Engelhard industrial 809.0 Soybeans,No.1 yllw IL-bp,u 8.5800 Tallow,bleach;Chicago-h 0.2963
Platinum,Engelhard fabricated 909.0 Wheat,Spring14%-pro Mnpls-u 6.7575 Tallow,edible,Chicago-u n.a.
Consumer services 1,731,530 93,364,611 Transportation 0 6,266,797
Energy 8,336,078 842,087 Utilities 327,298 36,312,773 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 6/13
Sources: Thomson Financial; WSJ Market Data Group Source: WSJ Market Data Group
THE WALL STREET JOURNAL. * * * * Monday, June 17, 2019 | B11
MARKETS
Financial-Advice Rules Spur Questions

Critics fear SEC lets ents’ wealth, the rules are sup- Dual Duties
professionals muddy
posed to help clarify what kind
Investment advisers are held to a fiduciary standard Check Background, the top of the person’s Bro-
of relationship a client has with kerCheck page. It should also
the standards about their financial adviser and what
while brokers aren’t. Conflicts Before indicate this at the bottom of
serving client’s interest

conflicts the representative has. Number of representatives, by size of firm's assets Hiring an Adviser their IAPD page, under “broker
Instead, the new rules may dealer information.”
make things more blurry, con- Dual registration Standalone registration It is especially important to
BY LISA BEILFUSS sumer advocates say. New rules for financial pro- know if your investment ad-
The brokerage industry More than $50 billion fessionals make it more crucial viser is dually registered as a
The business of financial ad- largely supports the new con- for investors to conduct back- broker, meaning he or she may
vice has for investors always duct rules, which go into effect $1 billion to $50 billion ground checks and read disclo- not be acting as a fiduciary in
been confusing and opaque. next summer, while consumer sures for conflicts of interest. every aspect of your relation-
New rules are unlikely to help advocates and some investment $500 million to $1 billion
Here’s how to find the informa- ship.
clear up the situation. advisers are frustrated. Brokers tion you need.
Financial representatives of telling clients they serve their Disclosure Digging
$100 million to $500 million
different stripes in recent de- best interest is disingenuous, Who’s Who Regulatory disclosures can
cades have adopted generic ti- critics say, because the new First, determine what type be long and dense, but here are
$10 million to $100 million
tles like “financial adviser” and rules make it easy for a broker of adviser you are working some ways to make the task
“wealth manager,” obfuscating to fulfill that duty by disclosing with. This matters because dif- less daunting. It is important to
the differences in their prac- how they aren’t. $1 million to $10 million ferent advisers are regulated look these up to check on any
tices and obligations to clients. Critics also say the rules differently. disclosed conflicts of interest.
Brokerage firms eschew the ti- conflate “best interest” with Less than $1 million To find disclosures for an in-
tle “broker” for their ranks, in “fiduciary,” which now have Brokers vestment adviser’s firm, search
0 100,000 200,000
part because regulatory efforts different meanings even though The place to check on bro- SEC’s Investment Adviser Pub-
in recent years spotlighted the they sound to consumers like Source: SEC kers is BrokerCheck. The data- lic Disclosure site by firm. You
differences between the invest- the same thing. base is maintained by the Fi- will see two buttons. The first
ment advisers who are sup- “Critics of Regulation Best myself?’” America. nancial Industry Regulatory shows the latest Form ADV,
posed to act as fiduciaries and Interest who assert that it is a It is increasingly tough to Ron Rhoades, an assistant Authority, the industry’s self- which requires information
brokers and insurance agents weak standard or a disclosure- tell a broker from an invest- professor of finance at Western regulator. Search for an individ- about the investment adviser’s
who don’t have to. only standard are flatly wrong,” ment adviser because Kentucky University, said the ual’s name and check the top, business, ownership, affiliations
For those looking to hire a said SEC Chairman Jay Clayton. most—60%, according to the SEC’s new rules permit brokers light-blue section for registra- and any disciplinary events of
financial adviser, it can be hard The rule will raise the standard SEC—are registered as both to state that they act in cus- tion information. the adviser or its employees.
to decipher who’s who. Differ- of conduct for brokers, add and regularly switch hats. tomers’ best interest while still It is important to know if
ent types of advisers have vary- clarity and reduce confusion for Bound by a fiduciary duty, in- recommending products that you are working with a broker, Conflicts
ing fees and conflicts of inter- investors, he said. vestment advisers give advice pay the brokers more so long because a broker doesn’t have Firms are supposed to spell
est, and for decades they have “You can tell someone until and are required to put clients’ as they disclose the conflict. to act as a fiduciary. out their conflicts of interest.
been held to different regula- you’re blue in the face that you interests before their own when Supporters of the best-interest One example, from a national
tory standards. But often those work in their best interest,” they recommend investments. rule say it is based on fiduciary Investment Advisers firm registered as both a bro-
differences are buried in the said Fred Iacovoni, an invest- Brokers typically buy and sell principles that are tailored to The Securities and Ex- kerage and an investment-advi-
fine print. ment adviser in Grand Rapids, stocks, bonds and other prod- brokers, who can be cheaper change Commission’s Invest- sory firm that discloses third-
On June 5, the Securities Mich. “But then you have other ucts, earning commissions as for investors who don’t want to ment Adviser Public Disclosure party compensation: “The
and Exchange Commission people saying that without hav- they transact. They aren’t repay for ongoing financial ad- site has detailed reports for receipt of such additional com-
.
passed a set of regulations, to- ing to prove it.” quired to act as fiduciaries. vice. those who are registered as in- pensation presents a conflict of
ly
gether dubbed Regulation Best Mr. Iacovoni is redoing his “The world has moved on, With the onus on investors vestment advisers. interest for us as it creates an
Interest, meant to improve website to try to distinguish his and we have a regulatory struc- to understand the nature of incentive for our Financial Advi-
quality and transparency in the firm’s fee-only fiduciary ser- ture that reflects when brokers their relationship with a finan- Dually Registered as Broker sors to recommend investment
financial-advice business. From vices from brokers and dually on and investment advisers were cial representative, consumer and Investment Adviser products based on the compen-
brokers buying and selling se- registered brokers and advisers distinct and easily distinguish- advocates say it is more impor- If your representative is sation received rather than
curities to insurance sellers who can now say they serve cli- able,” said Barbara Roper, di- tant than ever for clients to both a broker and an invest- solely based on your invest-
pitching annuities and invest- ents’ best interest. “My conun- rector of investor protection at read the disclosures and fine ment adviser, it will say so at ment needs.”
ment advisers managing cli- drum now is, ‘What do I call the Consumer Federation of print.
us l,
JPMorgan
al a
e
Signals Are Investors expect large swings in Treasurys and relative calm in
stocks, reflecting in part the unsettled global economic outlook. 75.74
tariffs will affect inflation and
GDP, but what’s uncertain is
how does that impact compa-
ci on
Unit Gets
s14% YTD
Mixed on 70 Merrill Lynch MOVE Index

nies, consumers and stock vol-
atility…and that’s where we
come into a lot of uncer-
Control
Gauge of expectations for
Trade Rift swings in the bond market tainty,” said Saira Malik, head
of global equities at Nuveen,
er rs
which has been trimming ex-
Continued from page B1

future rate cuts.
60
posure to risky assets since
the U.S. stock market rallied in
the spring.
Of Driller
m e
Although the central bank Commerce Department data BY PATRICK FITZGERALD

had at the end of 2018 sig- in May showed even though
naled it was likely to raise U.S. economic growth was ro- Triangle Petroleum Corp.,
m rp
rates this year, it has since re- bust in the first quarter, con- which has interests in North
trenched. Fed Chairman Je- 50 sumer spending slowed. A Dakota’s energy and commer-
rome Powell in early June said measure of U.S. household cial real-estate markets, won
the central bank could cut sentiment also fell in May approval of a reorganization
rates if the trade fight causes from earlier in the month, plan that hands ownership of
co Fo
a deterioration in the eco- weighed down by expectations the company to bondholder

nomic outlook. Now, investors of increased tariffs pushing J.P. Morgan Securities LLC.
have priced in a roughly 30% 40 prices higher. Judge Mary F. Walrath
chance of two rate cuts and 2018 2019 “There are significant head- signed off on Triangle’s chap-
about a 38% chance of three winds that markets aren’t ter 11 plan Friday at a hearing
rate cuts by the end of the pricing in,” said Alexis Crow, in the U.S. Bankruptcy Court
year, according to CME Group, U.S.-China who leads Pricewater- in Wilmington, Del.
up from 24% and 6% respec- trade talks houseCoopers’s geopolitical in- Denver-based Triangle,
tively in mid-May. end without vesting practice. whose operations are focused
With the Fed hinting it is 30 Cboe Volatility Index a deal Nervousness has showed up on the Williston Basin in
willing to step in and cut in- Gauge of swings in in the bond market, where in- North Dakota and Montana,
terest rates if necessary, some the stock market vestors have been placing bets filed for bankruptcy protection
investors say it is still too on interest rates falling. The last month after the J.P. Mor-
early to slash bets on U.S. yield on the 10-year Treasury gan Chase & Co. unit pulled
n-
stocks. That is especially true note has fallen this year and the plug on a forbearance
because economic data haven’t 20 settled at its third-lowest level agreement with the fracker.
shown a recession on the hori- of 2019 on Friday. J.P. Morgan Securities is ex-
zon: The Labor Department’s Bond funds investing in rel- pected to recover up to 43
no
latest employment report atively safer debt recently re- cents on the dollar of what it
showed that the U.S. jobless corded strong inflows, accord- is owed, court filings said. The
rate hovered at a half-century ing to Deutsche Bank AG. company is paying general un-
low, though the pace of hiring 10 Investors also ramped up bull- secured claims—those of small
slowed. ish bets on eurodollar futures, vendors and professionals—in
Corporate earnings are also a derivative used to bet on full.
expected to grow at a single- 15.28 central-bank moves, increasing A $2 million secured loan
digit percentage pace this year t40% YTD positions that pay out if rates from JPMorgan Chase Bank
overall, according to FactSet— fall, according to the firm. NA will be converted into exit
a slower pace than in 2018, 0 Either way, many feel the financing. J.P. Morgan Securi-
but not the rollover that some 2018 2019 current disconnect between ties will select the new board
had feared heading into the the bond and stock markets is of the reorganized business.
year. Note: Data for the Merrill Lynch MOVE Index are through Thursday. unsustainable. Fresh economic Equity investors will receive
The Fed’s posturing shows Sources: Refinitv (MOVE Index); FactSet (Cboe Volatility Index) data ahead could spur one nothing under the plan.
“they’re not asleep at the market to converge with the Bakken Real Estate Devel-
wheel,” said Jim Tierney, chief shares of companies like Mi- takes the disaster scenario for trade tensions will have a lim- other. opment LLC is currently Tri-
investment officer of concen- crosoft Corp. and Mastercard equities off the table,” Mr. ited impact on consumers or “This divergence cannot angle’s only consistent reve-
trated U.S. growth at Alliance- Inc., has risen 25% this year— Tierney said. to bet that the Fed will slash last,” said Mandy Xu, an eq- nue source.
Bernstein. Mr. Tierney’s fund, outpacing the S&P 500’s 15% Still, others warn it may rates. uity derivatives strategist at —Becky Yerak
which holds large positions in gain. “What that does is it not be wise to assume that “We have an idea of how Credit Suisse Group AG. contributed to this article.
THE TICKER | Market events coming this week
Monday Wednesday Thursday Philadelphia Fed survey

May, previous 16.6
Empire Manufacturing Fed policy meeting ends Initial jobless claims
June, expected 10
May., previous 17.8 Target rate 2.25-2.50 Previous 222,000
Jun., expected 10.5 Expected 220,000 Earnings expected*
Mort. bankers indexes Estimate/Year Ago($)
Purch., previous up 10% Current account
Tuesday Refinan., prev. up 47% 4th quarter, previous Darden Restaurants Inc.
Fed 2-day meeting starts $134.38 billion deficit 1.73/1.39
EIA status report 1st quarter, expected Kroger Co. 0.71/0.73
Building Permits Previous change in stocks in $122.0 billion deficit Red Hat Inc. 0.87/0.72
Apr., previous 1.296 mil. millions of barrels
May, expected 1.30 mil. Crude-oil stocks, up 2.2 EIA report: natural-gas Friday
Gasoline stocks, up 0.8 Previous change in stocks in
LUKE SHARRETT/BLOOMBERG NEWS
Housing Starts Existing home sales

Distillates down 1 billions of cubic feet
Apr., previous 5.19 mil.
Apr., previous 1.235 mil. up 102
May, expected 1.24 mil. May, expected 5.22 mil.
Earnings expected*
Estimate/Year Ago($) Leading indicators Earnings expected*
Earnings expected*
Estimate/Year Ago($) Oracle Corp. 1.07/0.99 Apr., previous up 0.2% Estimate/Year Ago($)
Adobe Inc. 1.78/1.66 May, expected 0.0% CarMax Inc. 1.48/1.33
Jabil Inc. 0.57/0.46
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR
STOCK SPLIT NOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF ECONOMISTS Kroger is expected to report quarterly profit of 71 cents a share Thursday, down from 73 cents a year earlier.
HEARD STREET FINANCIAL ANALYSIS & COMMENTARY

ON
THE
Auto-Maker Passenger-vehicle sales, monthly

25 million vehicles Inflation Predictors
Mergers 20
China
Don’t Make Sense
Need a 15
U.S.
EU
Signals for risks of deflation in Europe and a price
surge in the U.K. are probably misfiring
Crisis 10
BY JON SINDREU Market expectations of
Industry consolidation medium-term inflation
has worked best Inflation expectations implied
4.0%
5
in times of distress Japan
by the price of financial assets are
U.K.
a key guide for central bankers 3.5
and investors alike. Seeing how
BY STEPHEN WILMOT 0 they have behaved of late, their 3.0
2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19
credibility should be questioned.
Most successful auto mergers This past week, market-implied 2.5 U.S.
are born of crisis. Even if Fiat Sources: BEA, CAAM, ACEA, JAMA via FactSet expectations of eurozone inflation
Chrysler does find a deal with Re- over the medium term—often mea- 2.0
nault, investors shouldn’t expect a best expressed by Sergio Marchio- torical standards. That makes ne- sured by looking at derivatives
1.5
broader consolidation wave until nne, the late boss of Fiat Chrysler, gotiators reluctant to compromise. called five-year five-year inflation-
industry profits look a lot shakier. in a 2015 presentation called “Con- China, the world’s largest car linked swaps—hit another all-time 1.0 Eurozone
Hopes of a merger between the fessions of a Capital Junkie.” His market, is in a different place, low amid signs the European econ-
2014 ’15 ’16 ’17 ’18 ’19
two car makers, seemingly dashed observation that financial returns with sales falling fast. It is no co- omy continues to struggle. Mean-
when the Italian-American com- are poor because “product-devel- incidence that it is in China that while, U.S. inflation expectations Note: Measured by five-year five-year inflation-linked swaps
pany withdrew its proposal earlier opment costs are consuming value there are now early signs of indus- are also dropping while, bizarrely, Source: Refinitiv
this month, are reviving. Renault at a much faster rate than in other try consolidation, according to an- setting record highs in the U.K.
Chairman Jean-Dominique Senard industries” is more valid than ever alysts at Bernstein. None of this has much to do inflation-linked securities. Infla-
staunchly defended the failed as auto makers focus on electric In the absence of full mergers, with what actual inflation is doing. tion expectations are often derived
merger project during the com- vehicles and connected cars. car companies are turning to in- Weak consumer-price growth by the difference between the two.
pany’s annual general meeting on There have been a few success- dustrial alliances to share technol- has long challenged the European In Britain, the idea that global
Wednesday. ful deals—most recently Peugeot’s ogy costs. Many tie-ups have been Central Bank. After a drop in global interest rates could go lower has
More important, French Finance acquisition of General Motors’ mis- announced this year, including be- commodity prices in 2014, investors led to a surge in demand for infla-
Minister Bruno Le Maire told the managed European business in tween Ford and Volkswagen, Daim- worried that full-blown deflation tion-linked bonds. Because Lon-
Nikkei Asian Review this past 2017. The French company has re- ler and BMW, and most recently would be the final blow for the eu- don’s massive pool of insurers and
week that Renault, in which his turned the unit to profitability by BMW and Jaguar Land Rover. The rozone economy, pushing inflation pension funds have accounting
ministry owns a 15% stake, would cutting the number of vehicle plat- problem is that such arrangements expectations to a record low. deficits that go up whenever rates
.
be open to reducing its own stake forms. Thanks to Mr. Marchionne, don’t have a great track record. But consumer-price growth re- fall, the way to hedge their expo-
ly
in Nissan. That seemingly would Fiat Chrysler itself is also the Even before it descended into acri- mained broadly stable after strip- sure is with very long-maturity in-
secure Nissan’s approval for a tie- product of a cross-border merger. mony, the Renault-Nissan alliance ping out the effects of energy and flation-protected securities.
up, giving the French government Tellingly, it was made possible by never seemed to boost the compa- food. In fact, this has been the case An alternative is that investors
cover to reopen talks with Fiat the financial crisis, which bank-on nies’ profits by much. for decades in the developed world: expect the U.K. to crash out of the
Chrysler Chairman John Elkann. rupted Chrysler, handing Fiat all There is one potential catalyst Inflation has moved in tandem European Union without a deal,
Still, investors shouldn’t hold the negotiating leverage it needed. for an industry crisis looming on across countries for reasons broadly driving the pound down and mak-
their breath. Mr. Elkann needs to The same goes for Tata Motors’ the horizon: Chinese manufactur- unrelated to economic growth or in- ing imports more expensive. But
get comfortable enough with Paris takeover of Jaguar Land Rover. ers could eventually work out how dividual central-bank policy. temporary effects like this
us l,
as a partner to resubmit his pro- These exceptions suggest that to sell cars overseas, just as their Inflation expectations haven’t shouldn’t be reflected in longer-
posal. Trust is frayed after the re- the economics and politics of auto Japanese and South Korean peers learned the lesson of history. In term measures of inflation. And
al a
e
cent breakdown. M&A are best aligned when com- have. “We face a period in which the eurozone, they are now below yet, research by the Bank of Eng-
Even if the deal does happen, it panies need rescuing. The next the blossoming of the Chinese in- their 2016 lows even though the land has confirmed that these mea-
isn’t likely to herald further merg- major downturn could throw up dustry will probably translate into risk of deflation seems minimal. sures have for years moved in lock-
ci on
ers. Successful auto-industry com- similar deals, but it isn’t yet close a form of tsunami,” Mr. Senard It is possible they are being dis- step with changes in oil prices in
binations are infamously hard to at hand in the U.S. or Europe. Car warned Renault’s shareholders torted by demand for certain secu- the U.S., the U.K. and the eurozone.
find, and the failure of the 1998 sales are stagnant but at an ele- Wednesday. Mergers, such as his rities amid a wave of risk aversion All these moves in inflation ex-
deal between Daimler and Chrysler vated level, and consumer confi- deal with Fiat Chrysler, were the triggered by the U.S.-China trade pectations are likely still the result
still haunts executives. Personali- dence is still strong, particularly in best response, he implied. spat. In the eurozone, investors’ of market pessimism about eco-
er rs
ties and politics tend to get in the the U.S. For all the worries about Auto investors focused on con- first reaction has been to pile into nomic growth and the prospect of
way. technological change, most car solidation need to be careful what the scarce supply of German gov- lower rates. However, investors
The rationale for mergers was makers’ profits remain high by his- they wish for. ernment debt—more so than into shouldn’t read too much into them.
m e
MARKETS
m rp
Corporate Bonds Give Reassuring Signals

co Fo
BY SAM GOLDFARB The extra yield that investors Investment-grade corporate-bond funds have attracted about falling Treasury yields
more net cash than speculative-grade funds this year. and the possibility that the
Solid demand for U.S. cor-
demand to hold corporate Fed will cut rates.
porate bonds is signaling a bonds over Treasurys $20 billion “We think the Fed’s focus
reasonable amount of opti- remains relatively narrow. on a potential ‘insurance cut’
mism from a group of inves- 15 Investment grade is related to the lack of success
tors known for their caution, a Speculative grade on their inflation mandate…as
15 percentage points 10
development that is helping opposed to weakness in the
ease worries about an eco- economy,” he said. Based on
nomic slowdown. 5 its analysis of individual cor-
In recent weeks, the extra porate balance sheets, the in-
yield, or spread, that investors 0 vestment-grade bond group
n-
demand to hold U.S. corporate also doesn’t see major eco-

bonds over Treasurys has gen- –5 nomic problems, he added.
erally increased, a sign of re- 10 Jan. Feb. March April May June* Spreads on lower-rated,
duced risk appetite among in- speculative-grade corporate
no
vestors. Spreads, however, bonds have also been con-

have leveled off in recent days tained. As of Friday, the aver-
and remain well below the lev- age speculative-grade corpo-
els they reached in early Janu- rate-bond spread was 3.95
ary and during previous Speculative grade percentage points, up from
growth scares, such as the one 5 3.53 percentage points on May
that occurred in late 2015 and 1 but down from 5.37 percent-
early 2016. age points on Jan. 3.
The modest moves are no- There have been some signs
table because investors view of caution among investors.
credit spreads as an important Investment grade Net outflows from high-yield
indicator of the health of the bond funds have totaled $5.3
U.S. economy, and the corpo- billion over the past five
rate sector in particular. Given 0 weeks, while investment-grade
the limited upside potential of 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 funds have attracted a net in-
bonds—which in a welcome flow of $1.3 billion, according
scenario are repaid in full at to Lipper.
maturity—debt investors have Falling U.S. Treasury yields have pulled Year-to-date total return† Investment-grade corporate-bond sales Some investors worry that
a reputation for being sensi- down yields on corporate bonds. have picked up after a recent slowdown. current low interest rates im-
tive to risks and changes in pose a limit on the Fed’s abil-
4.5% $50 billion
the economy. S&P 500 ity to use cuts to stimulate the
As of Friday, the average 16.5% economy. Investors are also
4.0 Investment-grade corporates
U.S. investment-grade corpo- 40 aware that recessions have
Russell 2000
rate-bond spread was 1.26 per- 14.6 typically followed rate cuts by
centage points, according to 3.5 30 roughly a year.
Bloomberg Barclays data. That Speculative-grade bonds Federal-funds futures,
was up from a recent low of 3.0
8.9 which investors use to bet on
20
1.09 percentage points from the direction of interest rates,
mid-April but still down from Treasurys Investment-grade bonds suggested Friday that traders
2.5 8.0 10
the 1.57 percentage points at think there is a 23% chance
the start of the year. US government bonds that the Fed will cut rates at
Narrow spreads are one 2.0 4.6 0 its meeting that concludes on
factor giving confidence to Jan. Feb. March April May June May 10 17 24 31 June 7 14 Wednesday, according to CME
stock investors as they push Group data. They indicated a
indexes closer to records, de- *Through Wednesday †Through Thursday nearly 88% chance of a rate
spite a run of mixed economic Sources: Bloomberg Barclays (extra yield demanded, U.S. Treasury yields, bonds); Lipper (net cash); FactSet (stocks); Dealogic (corporate-bond sales) cut by the end of the Fed’s
data and concerning signals July meeting.
being sent by the Treasurys should be comforted,” said for the decline in Treasury At its latest reading, the ritory, creating another drag “We’re in a really good in-
market. Over the past month, Karyn Cavanaugh, senior vice yields, which fall when bond U.S. economy was still growing on long-term Treasury yields. vestment environment, and we
there was a sharp decline of president and portfolio man- prices rise. at a robust 3.1% annual rate. Tom Murphy, a senior port- have been for several years,”
the 10-year Treasury yield be- ager at Voya Investment Man- While Treasury yields tend Yet inflation has remained folio manager and head of said Robert Tipp, head of
low that of the three-month agement. to fall when the growth out- stubbornly below the Federal global investment-grade credit fixed-income strategy at PGIM.
yield, a yield-curve inversion Some investors and ana- look darkens, they are also Reserve’s 2% target, prompt- at Columbia Threadneedle In- But it’s going to be a volatile
that has often occurred before lysts say the strong perfor- sensitive to other factors, such ing increased calls for the Fed vestments, said his team is environment, he added, in part
recessions. mance of corporate bonds— as the outlook for inflation to cut interest rates. Mean- slightly overweight corporate because low rates give the Fed
The direction of Treasury and riskier assets generally— and monetary policy as well as while, yields on many govern- bonds relative to the bench- less room to maneuver.
yields may be concerning, but suggests there could be the level of government-bond ment bonds in Europe have mark index, in part because —Daniel Kruger
“if you look at spreads you relatively benign explanations yields elsewhere in the world. slipped back into negative ter- they aren’t overly concerned contributed to this article.
JOURNAL REPORT
© 2019 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Monday, June 17, 2019 | R1
ALWAYS TAKE A POSITIVE, LONG-TERM VIEW
The Best
Financial
DON’T TRUST PEOPLE WHO ASK FOR MONEY UPFRONT
Advice “It’s easy

to feel informed
I Ever
after listening
to an intelligent
manager make a
convincing argument
Got
in support of a recent
.
investment. But it’s
ly
important to remember
on their objectives are
different than your
objectives.”
us l,
al a
e
“I learned
ci on
from my grandfather
that a handful INVEST
2%
of things—thoughtfully
er rs
selected, and diligently

cared for over the years—
We
m e
creates a sense of
deep satisfaction. of your
m rp
asked
Each time you see,
financial INCOME
in you
touch or use these
experts to
co Fo
items you think,

‘Ahhh, I have made
a good choice and tell us the piece
feel content.’ ” of guidance that
has made the biggest Living on one
income “empowered
difference in their lives. us to resign from
LET THE
n-
Here’s what they had to say. companies with
JOB
cultures contrary
Please turn to the next page to our values
no
and explore
FIND new options
you without
fear of a
HOUSE: ISTOCK; RETIREMENT MAP (BOTTOM): SARAH BLESENER FOR THE WALL STREET JOURNAL
diminished
standard
of living.”
WAIT TO BUY THAT STARTER HOME
INSIDE
ASK ENCORE
Money RETIREMENT MAP YOUNG MONEY
The safety of a
community is an often Wasters Everybody has
advice on how to
Couple Time
The question
overlooked factor for They run the gamut, live a fulfilling life of who pays
people choosing from the smallest
(coffee anyone?) to after leaving work. what on vaca-
where to live in their the largest (the big If only it was tion can be a
retirement. R4 house). R6 that easy. R8 tricky one. R10
R2 | Monday, June 17, 2019 THE WALL STREET JOURNAL.
JOURNAL REPORT | WEALTH MANAGEMENT
Invest
There’s no shortage of financial
advice out there. But what advice has
resonated most with the people in the business
of doling out financial advice or teaching
2%
of your
finance? What advice did they receive that has
changed their lives for the better? When we income
asked that question of a host of experts, their
answers ran the gamut. They involved
in you
strategies for investing and
cautions about spending; tips
on finding a job and ways to
avoid psychological traps.
They all are likely to make
$
you think, and act, in ways
you may not have before.
“Never open one of your 401(k) statements

from the day you start work to the day you retire, 40 or 50 years later.
When you open that last statement, never having looked at it along the
way, you are not going to believe how huge it is. You should have a doc-
tor standing by in case you faint or have a heart attack.” That was the
advice John Bogle gave me in 2014.
Admittedly, I viewed Jack’s guidance through the eyes of someone
incurring confirmation bias, the tendency to give more weight to infor-
mation backing one’s own views. I had started to become a believer in
.
the “out of sight, out of
mind” adage back in 2006
ly
after coming across, of all
Don’t look at things, an International
Journal of Obesity study
your 401(k)
on
about office candy bowls.
The study’s authors found
When we think about investments, we of-
ten direct our attention to categories such
invest in that side hustle you think could
be a business. Take a training course or
statements that secretaries consumed
less candy when the bowls
as stocks, bonds and real estate. What we advanced education that could further
us l,
were opaque and placed often don’t think about is our most valu- your current career. Invest in a personal
away from the desk. By able asset: our ability to earn an income coach who could improve your business
al a
e
merely making the bowl less visible and putting it out of reach, the and to make that income grow faster. Al- performance. It could mean investing in an
temptation to act was reduced. most 20 years ago, I met a successful busi- exercise or nutrition program that could
ci on
I’ve applied the same logic to my retirement account, by only looking ness owner who gave me a simple lesson: give you more stamina every day to accom-
at it twice a year. Doing so effectively keeps it out of sight and out of
mind. Even when I do access the account, I try to look at the balance
Invest 2% of everything you earn annually plish more.
as little as possible and instead focus on the allocation. If all of the back into your ability to grow your income. It’s the best advice I’ve ever received—
funds are relatively close to their targeted allocations, I do nothing and What does this mean exactly? Investing and I do it every single year.
er rs
don’t look at the portfolio again for another six months. in you is like diversifying your portfolio of —Ted Jenkin,
It’s an approach I think Jack would describe as a step in the right investments. You might take a chance and co-CEO and founder of oXYGen Financial
direction, though he’d probably say that I’m still looking at the ac-
count too much.
m e
—Charles Rotblut,
vice president of the American Association of Individual Investors
m rp
NOT A BORROWER BE Be prepared My father taught me the importance of planning for unex-
co Fo
pected emergencies or opportunities. When I was 10 years

“Buy few, but buy the best you can af-
ford.” So said my grandfather over 35
years ago. His advice is more timely
for the old, my aunt passed away. She left behind four children and
didn’t have life insurance. My dad paid for her funeral be-
than ever.
Start with “buy few, but buy the
unexpected cause he knew my uncle and his family were experiencing
emotional and financial trauma.
best.” Six small words; one life-al- He later explained to me that just because you don’t plan for unfortunate events it doesn’t
tering concept. What I learned from mean they won’t happen. As an adult, that lesson led me to focus on the value of building
my grandfather is that a handful of
up an emergency fund and getting life insurance to give me financial peace of mind, which
things—thoughtfully selected, and
diligently cared for over the years— is priceless. I sleep better at night knowing that we have planned for the unexpected.
creates a sense of deep satisfaction. —Marguerita Cheng, CEO of Blue Ocean Global Wealth
Each time you see, touch or use these
n-
items you think, “Ahhh, I have made a good

choice and feel content.” It’s much deeper than simply quality over
quantity. It’s a way to repeatedly appreciate what you have vs. that
which you do not. The same goes for experiences.
no
And then there is, “you can afford.” Three powerful words. A life of
financial freedom. What I learned from my grandfather was that if you
LIVE
can’t pay cash, you can’t afford it. Not only is funding a lifestyle you
can’t truly afford via debt expensive, it robs us of lasting joy.
—Manisha Thakor, vice president of financial well-being

at wealth-management firm Brighton Jones
ON ONE
In 1978, I was in college and needed a summer job. An advertise-
ment said a marketing company was seeking young people to be
INCOME
Years ago, my soon-to-be husband
part of a catalog photo shoot. It was a lucrative offer and I applied.
shared his vision for us as we pre-
I was offered a job; however, first I’d have to do a test shoot be-
pared to merge our lives and finances:
cause I didn’t have a photo résumé. This would cost about $1,000 Live on one income as a married cou-
and I would have to pay in cash. It was a ple and save the second income. Our
big investment for a student back then.
Don’t I asked my father, and his words of wis-
shared financial goal served as a guid-
ing principle and foundation for future
trust dom still stick with me today. “They don’t
want you—they want your money. The
financial health and nimbleness.
Together, we vowed to pay all
people people you meet in life who genuinely
want to help you don’t ask for money up-
debts (minus our mortgage) within
the first four years of our marriage.
who ask front.” He was right. There was no lucra-
tive shoot. The company was a sham, set
We followed our plan religiously. The
release from debt payments and mod-
for up to fleece students out of their savings. est living translated to a comfortable
money I became a Wall Street broker in the

late 1980s. At broker boot-camp, I
lifestyle based on one salary. We ear-
marked the other salary for savings.
upfront learned to connect with clients, push the
firm’s high front-loaded commission
Strong savings paved the way for
career flexibility. Living modestly also
empowered us to resign from compa-
products, and sell the sizzle—not the
nies with cultures contrary to our val-
steak. It was a sleazy technique where we got big upfront commis-
ues and explore new options without
sion checks, and good luck to the clients. My father’s words rang
fear of a diminished standard of living.
in my ears. I left the brokerage industry in 1999 and started my Most important, we value passing on
first adviser firm. Today, I offer unbiased counsel through an the lessons and benefits of financial
hourly-fee for advice model. Investment products that pay brokers freedom to our teenage daughter.
big commissions continue to be sold in the industry. My best fi-
nancial advice to you is to avoid these products and follow John —Lazetta Rainey Braxton,
Bogle’s sage advice, “In investing, you get what you don’t pay for.” founder and CEO of Financial
Fountains
—Rick Ferri, financial analyst,
investment adviser and industry consultant
THE WALL STREET JOURNAL. Monday, June 17, 2019 | R3
Don’t be a copycat
Don’t mimic the investments and trades of others
just because they appear to know something. You
don’t know their own situation—and they don’t
know yours. I received this advice from the chief
investment officer of the employer I had my first
year out of college. Unfortunately, I didn’t heed to
his advice during the financial crisis as several se-
nior employees bought into a few financial com-
panies. Without doing any personal analysis, I
bought in my own accounts because those em-
ployees seemed to have such high conviction that
it was a good idea. Lesson learned.
This advice doesn’t just apply to financial pros.
People often want to make an investment based
on a recommendation from a famous investor or
fund manager. It’s easy to feel informed after lis-
tening to a manager make a convincing argument
in support of a recent investment. But it’s impor-
tant to remember their objectives are not your
objectives. And while it’s common for fund man-
agers to share their most recent ideas, it’s unlikely
you will know when a manager changes his or her
mind about a position.
—Peter Lazaroff,
chief investment officer at Plancorp
.
ly
Read more of the best financial advice received at wsj.com/wealthreport
Be smart ALWAYS Wait to

on
about buy that
probabilities TAKE A
starter
us l,
POSITIVE,
home
al a
e
I read former Treasury Secretary Rob- Let LONG-TERM

ci on
ert Rubin’s book “In an Uncertain

World” in the mid-2000s, and it had
an outsize impact on how I view fi-
the job VIEW One of the best pieces of financial
nance and the economy. In his book,
Mr. Rubin championed the practice of find advice I have received was to rent a
place to live instead of buying a
you
er rs
assigning probabilities to “relevant Maintain a positive and optimistic place to live unless I was certain
events” and then making decisions ac- view of the long-term prospects of that I would not move for at least
cordingly. Put differently, it isn’t a the stock market. This advice was five years. In American society, there
question of what will happen, but given to me by my employer when seems to be the belief that there is
m e
rather the chances that various out- I was an intern in college. His some inherent nobility in owning
comes will occur. (Bob so appreciated opinion was that there will always real estate and something inherently
m rp
uncertainty that he once counseled be something to worry about—in- wrong with renting a home. The
me to never use the word “ensure” in terest rates, market valuations, false belief that often permeates is
my writing, because one could never political unrest, geopolitical is- that buying a place is a great idea
ensure anything.) sues, etc.—as well as perma-bear and renting a place to live is silly be-
This type of thinking changes ev- pundits and naysayers providing cause when you own your own
co Fo
erything. Questions like “Will the reasons to leave the market or not home, you are able to build equity.
stock market rise?” or “Will the Fed invest in the first place. I took the advice to heart when I
raise rates?” are essentially meaning- A good example of this wisdom accepted a job offer in graduate
less. Of course, no one knows the an- is what happened in the wake of school. I knew nothing about the
swers for sure, but you can make the the Brexit vote on June 23, 2016. area and decided to rent until I got
right decisions over time if you get Approval of Brexit caught markets to know the job and the area better.
the relative probabilities correct. by surprise and two days after the While I quickly grew to love the job
When it comes to my personal fi- vote the S&P 500 was down more and the area, I realized that my ulti-
nance, probabilistic thinking doesn’t than 5%. By early July of the same mate goal was to find a teaching job
mean that I’ll bet everything on the year, however, the S&P 500 had in my hometown of Louisville, Ky., so
most likely outcome—it means I try to fully recovered. Market timing is I continued renting an apartment.
account for uncertainty. For instance, In the mid-1980s, during the summer between my junior dangerous and best left to day I ended up staying in that job for
I tend to save a lot, but not because I and senior year of college, I was—like many students now—in a traders and those with crystal more than five years, typically the
n-
think I’ll definitely live to old age. I panic. How would I find the perfect job for me? Sure, I worked sum- balls. The lesson is that those in- break-even point for the buy vs. rent
save because I know there is about a mers to help pay for school. But with just one year left until gradua- vestors who stay optimistic about decision, but I am glad I decided to
one in five chance my wife or I will tion, I was an English major in search of a career track. That was the market and disciplined in rent since the local real-estate mar-
live into our late 90s, and I want us to when my mother, Shirley, gave me the best piece of financial and their investment approach will ket was weak when I left my job.
no
be prepared in case we do. And when career advice: “Let the job find you,” she said. “Put yourself out come out ahead over time. And while it is true that you can
it comes to investing, I am a staunch there, and it will happen.” I was so taken by this advice build equity if you own a home, the
believer in diversification, but not al- To be clear, my mother was a doer; she didn’t mean that I should that I started investing in the moderate buildup of that equity in
ways in a conventional way. Investing lie around on the couch and wait for career karma to strike. Instead, stock market as soon as I got out the early years of a mortgage can be
in both stocks and bonds is important, she wanted me to stop stressing out and trying to pinpoint some of college and I have never quickly erased by the high transac-
but I also want to be protected in abstract career passion, and just keep an open mind. If I rigorously stopped—nor have I ever regret- tion costs associated with selling.
case Congress drastically changes tax pursued all options, that great job would happen, and likely in a field ted it. Committing to this ap-
laws or the value of my house plum- I’d never even thought of. proach allows me to ignore the —Patrick Lach, an assistant
mets. Will these things happen? I Shirley recognized what I still believe is true: Humanities majors emotional impact of the daily professor of finance at Indiana
AUDRA MELTON FOR THE WALL STREET JOURNAL; LEXEY SWALL FOR THE WALL STREET JOURNAL; MICHAEL BUCHER/THE WALL STREET JOURNAL
don’t know. And that’s the point. can do almost anything. She also knew that I was doing the legwork noise of the market. And it is University Southeast and founder of
writing letters to alumni from my college who were working in a probably the best piece of finan- Lach Financial
—Benjamin H. Harris, executive range of fields. (Shout-out to my father, Harold, for the great idea cial advice that I impart to my cli-
director of the Kellogg School of to find leads in the alumni magazine.) Before long, I got a call that ents years later.
Management’s Public-Private led to a career in journalism and financial-literacy advocacy—a path
Interface, former chief economist to I never could have anticipated. Who says mother isn’t always right? —Michelle Perry Higgins, a
Vice President Joe Biden principal and financial planner at
—Beth Kobliner, author and financial-literacy expert
California Financial Advisors
Follow a formula for retirement saving IGNORE THE ADVICE

The best financial advice I ever received
Even though my work has always been focused on longevity and how re- was from me. I told myself to ignore the ad-
tirement is being reinvented, the need to plan for it financially wasn’t al- vice of others.
ways on my own—or my husband’s—radar screen. (We both surely recog- Research has shown that time and time again,
nize the irony of that.) Of course, we saved and invested for a rainy day. the best education that deeply modifies your behavior and actions origi-
But early on in our marriage, we had the attitude that putting all of our nates from personal experience. The apprehension and intensity when you
energy and resources into our startup was the smart move. If we did that push the button or submit a form to make an investment or allocate your
right, all would be good. assets is hard to forget. Consequently, the results of that action, be they
Not only weren’t we saving for retirement but, like many couples, we didn’t good or bad, are forever etched in your mind and behaviors.
have a clue about how much we would need or how to determine it. It took a serious sit-down Without question, over the years people have proffered different sug-
with our accountant to scare us into saving specifically for our retirement. gestions about the financial basics—value of long-term investing, diversi-
He gave us a simple formula to follow: Figure out how much you think you’ll be spending fication and the like—or tactical “winners” regarding specific stocks or
annually and multiply that by 35. And that’s how much your nest egg should be when you retire. asset classes. However, most of these were forgotten quickly. Although we
will never know, I’m pretty confident if I had followed all those sugges-
We immediately made some serious—and somewhat painful—changes in our lifestyle and
tions and “winners” I would not be better off today. There is still no bet-
moved saving for retirement up our priority list. Little by little, we have been able to chip away
ter substitute for that well-trodden phrase from growing-up to “do your
at our goal. You don’t have to have this particular formula, but having a simple one to follow
homework” if you want to give yourself a gift that will serve you well in
was the key that unlocked our ability to plan for a financially secure retirement. your finances and beyond.
—Maddy Dychtwald, author and co-founder of think tank and consultancy Age Wave
—Bruce E. Wolfe, a principal at C.S. Wolfe & Associates and the founder
and former executive director of the BlackRock Retirement Institute

reaching full retirement age, the Social Se-
curity Administration gives you the option
to backdate your application—by as much as
six months—and collect a lump-sum pay-
ment equal to six months of benefits. (Note:
“Retroactivity” is designed primarily to help
people who, through error or neglect, failed
to apply for a Social Security benefit to
which they were entitled. That said, it’s
available to most people who first file for
benefits after reaching full retirement age.)
But there’s a very big catch.
Let’s say a person is eligible, at a full re-
tirement age of 66, for a monthly benefit of
$2,400. And let’s say this person waits until
age 66½ to claim Social Security, when the
monthly benefit would be almost $2,500.
(Remember, the longer you wait to claim
benefits, the larger your payout.) At this
point, the Social Security Administration will
offer the option of backdating this applica-
tion six months and, if the person accepts,
sending this individual a payment for
$14,400, or $2,400 x 6 months. Sounds great.
But here’s the catch: The monthly benefit
going forward—even though this individual
is 66½—will be $2,400, the figure this per-
son would have received at age 66. That
amounts to a permanent reduction of about
4% in this individual’s monthly payout.
The point: When you first apply for Social
Security, you must understand how the pro-
cess works—how picking a particular month
to begin receiving benefits can affect the
size of your payout—and you must tell the
Social Security Administration as clearly as
possible when you want benefits to start.
ASK ENCORE | GLENN RUFFENACH based on my work record, at that time There are (too many) instances of appli-
since it is more money. Do I have to wait cants listening to a Social Security represen-
Safety as a Factor
until my actual birthday to make sure I tative talk about retroactive benefits and
will receive my full benefit? The local So- thinking a check equal to, say, six months of
cial Security office told me I could apply benefits sounds like a good deal—but failing
In Where to Live
in June, but that doesn’t seem right. to understand how that decision will reduce
.
their payouts for, say, the next 20 years.
ly
This question gives me the chance to high- If you apply for benefits online, you
light something called “retroactive benefits,” should have few problems; the application
an important issue for anyone who elects to lays out the available options and you must
on claim Social Security after reaching “full re- select one to complete the process. If you’re
Also: We answer a reader’s a good snapshot for large locales. tirement age,” as defined by the Social Se- speaking with a Social Security representa-
question on Social Security Next, check with the police and sheriff curity Administration. (That figure is rising tive, on the phone or at your local office, he
survivor benefits departments in your target destinations. A gradually to age 67 for those born in 1960 or she normally will give you the same op-
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growing number of departments are pub- or later.) In short, retroactive benefits can tions and should explain how they work.
My husband and I plan to move when we lishing crime statistics, and many of these get you in trouble, if you don’t understand That said, mistakes can happen. So
retire, and we want to include safety as figures are available online. (A simple search how the concept works. please, be clear, be specific. And if you want
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a factor in choosing a home and commu- might include the name of the town and the Your local Social Security office is correct: retroactive benefits—fine. As long as you
nity. Any advice about how to evaluate a words: police department crime statistics.) You don’t have to wait for your birthday; understand the consequences.
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destination in terms of safety? Again, it’s difficult to know just how many you can apply now for your new benefit. In-
incidents are actually reported to—or by deed, the Social Security Administration On the Decline
Good question. This piece of the relocation Change in the number of property crimes in
puzzle is easy to overlook. Most people, not the first six months of 2018 from the same
surprisingly, focus on factors that are, well, period a year earlier
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more fun: climate, lifestyles, housing, shopping, One safety issue to consider is whether you would feel
cultural events. But issues like taxes, health
care—and crime—are equally important.
comfortable leaving your new home for extended vacations. Motor-vehicle theft
Beyond the obvious—feeling comfortable

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Larceny/theft
about walking through a prospective neigh-
borhood at any hour of the day or night— —local officials. (Does a stolen bicycle make typically suggests that people file their ap- Burglary
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you should check several sets of informa- the cut?) Not surprisingly, some towns are plication about three months before they
tion, if available: property crime rates, violent reluctant to paint a detailed picture of mis- want their benefits to begin, says Darren All property crime
crime rates and victimization surveys. deeds in their neighborhoods. Lutz, a public-affairs specialist with the
Start with the Federal Bureau of Investi- Several other questions to consider re- agency. When applying, you will be asked to Arson*
gation’s report titled “Crime in the United garding safety: Would you feel comfortable pick your “month of entitlement,” the month
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States.” (Go to fbi.gov/services/cjis/ucr and leaving your new home for extended vaca- you want benefits to start. –5% – –5
scroll down to: Latest Releases.) Here, you’ll tions? Is there a neighborhood watch pro- It is now June, but it is not too late to * Data for arson are not included in property crime totals due to
find information about violent crime, (mur- gram or a homeowner’s association that choose to have your new, work-based bene- fluctuations in reporting.
Note: January to June 2018 figures are latest available.
der, rape, robbery and aggravated assault) makes safety part of its focus? And are fits begin in July, your birthday month. This Source: Federal Bureau of Investigation
and property crime (burglary, larceny, motor- there reasonable response times for emer- will give you the largest payout possible,
vehicle theft and arson) in cities and towns gency services? since Social Security benefits “max out” at Mr. Ruffenach is a former reporter and
with a population of 100,000 or more and age 70. And your first payment will arrive in
i i i editor for The Wall Street Journal. His
some metropolitan areas. Keep in mind that August. (Social Security benefits typically column examines financial issues for those
the statistics include only those crimes that I am currently receiving Social Security are paid the month after they are due.) thinking about, planning and living their
were reported to the FBI by local law-en- survivor benefits and will turn 70 in late All of which brings us to retroactive ben- retirement. Send questions and comments
forcement authorities, but they still provide July. I want to switch to my benefit, efits. If you first claim Social Security after to askencore@wsj.com.
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How Tipping Points Get You to Donate More to Charities

EXPERTS' VOICES
no
DAVID BLANCHETT
BY LALIN ANIK Simply being given the opportunity to Putting it to use
AND MICHAEL NORTON be the tipping point increased the per-
centage of people donating from 49% to
We are now exploring another possible
use of tipping-point psychology—motivat-
Annuities in Your 401(k)
Consider how likely you would be to do- 67%. We told other people that our goal ing donors to encourage more people to What should you do if an annuity option pops
nate to a charity that made this appeal as was 10 donors and that they were or donate. Consider what you would do if you up in your 401(k) plan? Here are some things
part of its fundraising effort: “We are hop- weren’t the tipping point; here, the fre- encountered this appeal: “We are hoping to consider.
ing to get 75% participation in this cam- quency of donation increased from 42% to to get 75% participation in this campaign,
One important aspect of annuitizing inside
paign.” 55%. and we are currently at 73%.”
Now consider your likelihood of donat- We also asked each person a few ques- Our hope is that in these cases, people
a 401(k) is the pricing is gender-neutral. Typi-
ing to this one: “We are hoping to get 75% tions about their motivations. Some ques- will be motivated not only to donate cally, annuity prices are higher for women be-
participation in this campaign, and we are tions focused on how guilty and responsi- themselves, but also to reach out to others cause they live longer on average. So, buying
currently at 74%.” ble toward hungry children they would to make sure that the charity reaches its an annuity within a 401(k) plan gives women
In both cases, the charity is telling you feel if they didn’t donate. But other ques- goal. As a side benefit, this setup offers more attractive pricing than they would find
about their goal. But in the first case, you tions focused on a different group: how people an excellent excuse to brag about in the open market—and vice versa for men.
have no idea how close the charity is to guilty and responsible toward the individ- their charitable behavior: I’m only posting Annuity rates also might be slightly higher
the goal, and therefore no sense of how uals who had donated before them (the the fact that I donated on social media to within a 401(k) than in an IRA, due to econo-
much your donation matters. help the charity hit its goal—not because
mies of scale/institutional pricing. A large de-
In the second case, not only do you I want everyone to see me as a nice per-
know how close the charity is to the goal, son. fined-contribution plan typically could give in-
Tipping points offer a surers access to thousands of possible
but you’re also in a unique position: You The results of our research have impli-
could be the tipping point—the person novel means of inducing cations not only for charitable organiza- annuitants. This effectively reduces their dis-
who makes the whole thing happen. And feelings of responsibility tions, but also for anyone seeking to uti- tribution/marketing costs and result in
that, our research shows, is a powerful lize a crowdfunding model—say, higher effective payouts.
motivator. Which means that tipping
toward other donors. individuals trying to fund their brilliant or —Mr. Blanchett is the head of retirement research
points could be a powerful tool for fund- world-changing app, or employers at- for Morningstar Investment Management
raising of all kinds. tempting to increase employee engage-
first eight or nine people) participants ment (for example, in volunteering). The Experts are industry and thought leaders who
Motivations unveiled would feel if they didn’t make a contribu- Organizations and individuals should write on topics of their expertise. You can read this
We conducted a study with 331 people in tion. Our results showed that not wanting consider breaking down a very large goal full blog post and others at WSJ.com/Experts
which we created a crowdfunding project to let down the donors who came before (feeding children or starting a company)
to raise money to feed hungry children did more to drive donations than not into a series of smaller goals to create a
around the world. We made some people wanting to let down the children. chain of tipping points—we are hoping for
the tipping point by telling them two In other words, our research showed X number of people to engage in action Y
things: We had a goal that hour to reach that tipping points offer a novel means of in the next Z minutes—to motivate greater
nine donors who each donated $1, and we inducing feelings of responsibility and engagement and, ultimately, greater prog-
were currently at eight. Others were told guilt—but toward donors, not recipients. ress toward those large goals.
that they were not tipping points: We told This was despite the fact that this sense
them that our goal that hour was nine do- of obligation was toward a group of peo- Dr. Anik is an assistant professor at the
nors, and that nine people had already do- ple our donors didn’t know, would never University of Virginia’s Darden School
SONIA PULIDO
nated. We then asked both groups if they meet, and had in common only the fact of Business. Dr. Norton is a professor at
wanted to donate $1 to the charity or keep that they were performing a behavior at Harvard Business School. Email them at
it for themselves. roughly the same time. reports@wsj.com.
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THE GAME PLAN

BY CHRIS KORNELIS
A Single Mother
Looks To the Future
After struggling financially for several
years, Natalie Berglund, a personal hair
stylist and single mother of two girls, re-
alized something recently: She is ready to
think longer term.
Ms. Berglund, age 40, worked in salons
for years, eventually clearing as much as
$75,000 a year. But several years ago, af-
ter a fallout with her employer and child-
care-related issues, she struck out on her
own, cutting hair in clients’ homes.
There were some rough years after she
went solo and she occasionally fell behind
on bills and rent. But now that she has
learned to live on a modest income, and
both of her daughters are in school, she is
ready to take on more work and look to
the future. Specifically, she would like to
save for retirement, prepare to buy a home
some day and perhaps even start her own
salon.
“I’ve quite literally, just gotten into a
zone where I’m like: I’m actually going to
be OK,” she says. “And so my brain is now
allowed to think beyond survival mode.”
Ms. Berglund lives in Tacoma, Wash.,
and grosses roughly $30,000 a year. Her
income varies wildly from month to
month, which can make it hard to pay the
The Biggest Ways

bills. Some months she’ll bring in $2,000.
Others it is as much as $4,000.
Ms. Berglund pays $1,100 a month for
a two-bedroom apartment, $100 for utili-
.
People Waste Money
ties, $26 for Netflix, $22 for a gym mem-
ly
bership, $40 for her share of the cost of
subsidized after-school program that she
splits with her daughters’ father, and $10
on for internet. She spends around $450 a
month on groceries.
They run the gamut, from the smallest things (coffee, anyone?) Other monthly expenses include: $265
toward the roughly $10,000 she owes on
to the largest (do you really need that big house?)
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her 2012 Hyundai Sonata; $300 for gas,
F
which includes driving to clients’ homes for
BY CHRIS KORNELIS be doing with our life. ing a tight budget. I think learning appointments; $180 for car insurance; $40
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There also is wasted spending on to do without when you need to is a a month in bridge tolls. She also has $1,500
or David Bach, few purchases are things you deep down are not ready valuable life experience. in collection for medical bills, toward which
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a bigger waste than a new car. to commit to doing something DR. BRICKER: People are avoiding dis- she currently isn’t making payments.
The average American will about. You buy the Peloton bike for comfort and seeking pleasure. Often She has no credit-card debt, but also
have to work about two or three $2,000 because you care about your that conflicts with what they care has no savings or a retirement fund.
months a year just to make the health, but you are not ready to do about in the long term and what’s
payments on a new car with in- the hard physical work, so it sits in important to them, what gives them
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surance, says Mr. Bach, co-founder your basement. purpose, what gives them meaning
of AE Wealth Management and MS. WEBER: I often see parents who in their lives.
author of several books on personal finance. It’s a are reluctant or forgetful about mov- DR. KIM: To show that they are
huge, unnecessary expense, he says, at a time when ing their adult children on to paying something, perhaps something they
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many Americans have little if any savings and aren’t their own car insurance and cellphone currently feel that they are not. In
putting anything away for retirement. bills, things that have a family plan. other words, to compensate for what
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But he is particularly scornful of a much smaller Some parents tend to oversched- they don’t feel that they have.
purchase: coffee. ule their younger children. It would
“I do not start my day without coffee,” Mr. Bach benefit both parents and children to WSJ: How do high- and low-income
says, “but I make it at home every morning for 20 take a look at how much they’re ac- earners waste money differently?
cents instead of spending $5” at a cafe. tually getting out of some of those Similarly?
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Everyone has a different take on the biggest extra activities. DR. KIM: There’s research saying that
ways Americans waste money. We asked a group I also think people waste money higher-income groups are happier
of experts about where they see the biggest finan- buying more house than they need. buying experiences, whereas low-in-
cial waste—and what can be done about it. This whole notion that every single come groups are happier buying
Below are edited excerpts of con- person in the house things and materials that are obvi-
versations The Wall Street Journal needs their own bath- ously more tangible and long-lasting.
had with Mr. Bach; Robert Shiller, a room is somewhat lu- So, in the context of compensatory
Nobel Prize-winning economist and dicrous. More and consumption, perhaps higher-income
Yale University professor; Danika more of our stuff is groups will try to signal success by Hair stylist Natalie Berglund
Waddell, a certified financial planner stored electronically; going on uber-fancy vacations,
at Goddard Financial Planning in Seat- If you didn’t spend we should need less whereas lower-income groups will Advice from a pro: Jim Miller, a certi-
tle; Soo Kim, an assistant professor of $3.50 a day on storage for it. There’s try to signal success by buying fied financial planner at Woodward Fi-
marketing at Cornell University’s coffee, you’d save also a tendency to branded objects. nancial Advisors in Chapel Hill, N.C., says
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Samuel Curtis Johnson Graduate $1,277 a year. buy houses with big DR. SHILLER: At every income level, Ms. Berglund’s debt is manageable and
School of Management; Ellen Weber, yards that most peo- within your group, you want to be she keeps her expenses down. Now, he
a certified financial planner in Seattle, ple do not use but respectable. Sociologist Leon Fest- says, she needs to improve her credit and
and Jonathan Bricker, a psychologist end up spending lots inger said it’s natural to compare take on extra work—in her field or other-
no
at the Fred Hutchinson Cancer Re- of money paying yourself with others, but when peo- wise—to bring in more money and some
search Center in Seattle. someone else to mow ple do, they tend to compare them- added stability. “I feel like the earning
If you invested that and maintain. selves with others close to them in side of the equation is needing a boost,”
WSJ: What are some of the biggest money over 30 the hierarchy. he says. “She seems like she’s cut the
things people waste money on? years, you’d have WSJ: Why are people other side of the equation—the expenses
DR. SHILLER: Big houses are a waste. $85,305 (with a 5% spending money on WSJ: What are some ways consum- are as low as they probably can go.”
We don’t need all this space. For ex- annual return). such purchases? ers can curtail wasteful spending? To boost her credit, he says she should
ample, we don’t need elaborate kitch- DR. SHILLER: Having a MR: BACH: Start by tracking where put small purchases on her credit card, as
ens, because we have all kinds of de- big house is a symbol you spent money for a day. Go long as they’re for things she can pay off
livery services for food. And maybe of success. Who through what you’ve already signed every month. He also says she should pay
you don’t need a workshop in your knows what people up for that you pay for automatically off the debt she has in collection as soon as
basement, either. You used to have a are doing in their day every month. There are a lot of apps possible, and suggests calling the company
filing cabinet for your tax informa- job? But you do see that make this easy. to see if they can negotiate a payment plan
tion, but now it’s all electronic, so you
If you didn’t pay their house. MS. WADDELL: Meal and grocery plan- or even a reduction in her balance.
don’t need that, either. And book- $1.50 a day on MR: BACH: We spend ning. If you plan a week’s menu and Before she starts thinking about saving
shelves, for people who read a lot. We bottled water, you’d money unconsciously. shop once per week, you’re far less for a home, Mr. Miller would like to see her
have electronic books now, so we save $548 a year. It’s a habit. likely to spend on unexpected items. build up an emergency fund of three
don’t need bookshelves anymore. MS. WADDELL: Lack My own personal version of this is months worth of expenses, with the goal
Subscriptions to health clubs are no- of planning ahead getting a subscription to a meal-deliv- of growing it to six months after she has
torious, and capitalize on people’s fail- and lack of time. Peo- ery kit. While not the absolute cheap- taken on more work. He also says she
ure to anticipate their future laziness. ple take shortcuts, est thing, it cuts way back on grocery- should open up a Roth IRA and contribute
MR. BACH: Small-dollar purchases like rely on convenience store stops and saves me a lot of to it monthly, even if it’s just $25. He sug-
coffee and bottled water. When you without price shop- money in the long run. gests she automate the contribution, so
If you invested that
ask people why they don’t save, why ping. Also, a lot of DR. BRICKER: Take 30 seconds just to that money isn’t even seen or felt each
they don’t invest, why they don’t use
money over 30 people justify indul- notice the urge to make a purchase, month. “That will start the clock saving to-
their 401(k) plans, the No. 1 reason is years, you’d have gences as they work and say: “Can I let this pass?” And if ward retirement in a fashion that doesn’t
“I don’t make enough money.” Five $36,608 (assuming hard and feel they you can wait five minutes, you will hurt her current lifestyle,” he says.
dollars a day makes a huge difference. a 5% annual deserve it. There’s very likely discover that urge to buy Mr. Miller says that with two young
If you’re sipping a latte right now and return). definitely nothing that thing will have come and gone. children, “she absolutely needs a will for
you’re not saving, well, that’s dumb. wrong with this, but DR. SHILLER: When it comes to hous- guardianship purposes, as well as powers
MS. WADDELL: The primary thing I see people should find ing, there are books about this—in- of attorney.” He says both should be han-
people waste money on is “convenience” items and one or two things to splurge on, cluding “The New Small House”— dled by an estate-planning attorney,
unplanned grocery-store trips. Lack of planning such as a daily latte, and then focus that talk about designing houses to which might be difficult for her to afford.
leads to people stopping to pick up one or two on trimming the budget in other look impressive as well as function He suggests she try calling a couple to
things and then spending $100 or more. ways. with a smaller scale. Just like we’re see if any might be willing to trade hair-
DR. BRICKER: It’s often in quickly consumable items— MS. WEBER: You don’t want to be developing Uber and Lyft and Airbnb cuts for simple legal services.
SERGE BLOCH; DOUGLAS COCKE
mostly things you can put in your mouth, so conve- seen as the bad parent or the cheap using existing resources more effi- “She has a trade that is in high demand
nience foods, sweet foods, and things you can drink. parent who is not giving their kids ciently, we can also build houses and a skill set that virtually everyone
You can consume them immediately, so there’s an im- all of the life experiences and educa- that are better at serving people’s needs,” he says. “If she can barter her ser-
mediate reward that you get from it. And you are not tion that they could. With older kids, needs without being big. vices for estate documents or things like
seeing the longer-term perspective on how that con- there’s a lot of sympathy for how that, it sounds like a good trade.”
sumption is not only harmful to your wallet but also difficult it can be for new graduates Mr. Kornelis is a writer in Seattle.
harmful to your long-term values—what we want to to get launched in a career and hav- Email him at reports@wsj.com.
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most of their time traveling to most
of their time babysitting grandchil-
dren—and have less in common than
when we were in school or working
full time. But it’s also because the
only way I can chart a course that’s
right for me is to avoid the “sup-
posed to do” mentality I accepted
most of my life. There is no “sup-
posed to do” at this stage. There is
no well-traveled path that I can com-
fortably follow.
What does all this mean in my
daily life?
For one thing, I’m learning not to
say yes when I really mean no. In-
stead of agreeing to do things just
because I’m flattered to still be in-
cluded, or because I want to do
something, I’m trying to select activ-
ities that give me pleasure and
stretch me in new ways. I said no to
a nonprofit board whose goals I sup-
port because my role there would
mostly be fundraising, a task I dis-
like, but yes to another volunteer
opportunity that connects me regu-
larly with a high-school student
whose company I thoroughly enjoy.
I’ve also joined the gig economy
as a freelancer, because I don’t want
to quit journalism entirely and can
use some extra income to supple-
ment my savings. But after a stretch
of back-to-back assignments, I real-
ized I was working as hard as before
I retired, despite my intentions to
savor more leisure.
Time to loaf
And I’ve learned the obvious: Time is
ever more precious. I have more of it
Looking for a Until now, I always knew what I was young. I can read my way to spend as I please on a daily basis,
.
was expected to do. As a child, there through Tolstoy, George Eliot and all but less ahead than behind me—and
ly
was school and playing after school the other unread classics gathering no way of knowing how much healthy,
with neighborhood friends. Then dust on my bookshelves, do volun- productive time remains. I can’t af-
Road Map for on came college and my first chance to

live away from home, followed by
the challenge of finding jobs that
supported me and matched my inter-
teer work for any number of causes,
immerse myself in yoga, or audit
university courses in subjects I
skipped in college. Or I can continue
ford too many false starts or delays.
So I pushed ahead on a home-re-
modeling project, against my hus-
band’s wishes to wait until next year.
Retirement? ests and then, eventually, marriage to work, the latest form of retire- I’m also limiting freelance work to
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and juggling a family and career. ment for growing numbers my age, assignments that most intrigue me,
I didn’t stick rigidly to a tradi- often because financially they have especially about aging, which I’m my-
tional timeline. My biological clock no other choice. self experiencing, but intentionally
Good Luck
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was ticking loudly by the time I be- It’s like trying to select a meal leaving time to meander and loaf. By
came a mother at 37. I lost jobs and from a multipage menu in a diner, accident, because I took a different
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switched employers twice after I which is harder to do than making a route than usual to a favorite bakery,
turned 60. But mostly I stuck to the selection in a small bistro that lists I discovered a Buddhist temple in my
Everybody has lots of advice on how to live a prescribed map, and when I devi- just a few choices on a chalkboard. neighborhood I’d never before no-
fulfilling life after leaving work. ated, I didn’t stay off course for At first I felt relieved that my de- ticed—and spent half an hour sitting
long. The tracks were so clear, so cision to retire, which I’d procrasti- on a bench inside, inhaling the scent
I’ve learned that it isn’t worth much.
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deeply set by cultural norms, that it nated about for months, was finally of incense and the quiet.
was hard to stray very far. behind me. But my initial euphoria Still, if you’re looking for the big
W
BY CAROL HYMOWITZ soon morphed into anxiety. Sud- revelation, if you’re hoping for my
It’s like Free to wander denly, after decades of spending piece of advice that I can pass on to
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hen I retired from a 38-year journal- Now, for the first time, there’s no weekdays in an office surrounded by you as friends and strangers did to
ism career in 2017, I was bombarded trying to map and no compass. The old guide- colleagues whose company I enjoyed, me, I’m afraid I’ll have to disappoint.
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with advice from close friends. not- select a lines about retirement are out- I was home alone and uncertain Because if I’ve learned anything, it’s
so-close friends and even complete moded. No one I know wants to fol- about what if anything I wanted to that there is no one piece of advice.
strangers, some of whom I met while
meal low the path many of our parents pursue. At social gatherings, I didn’t There is no single road map or re-
standing in line at my local Social Se- from a took of moving to a retirement com- know what to say when people tirement plan, only the ones we con-
curity office. multi- munity to socialize exclusively with asked, “What do you do?” The struct for ourselves.
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“Keep playing a role in the world or you’ll feel mar- other seniors and have accessibility truth—that I was mulling next steps My plan, if I’m fortunate enough to
ginalized.” page to nursing care when it’s needed. in my mind but unable to make a live a long life, is to keep adjusting to
“Don’t get overly scheduled or you’ll lose the freedom menu in And we don’t have to. Many of my bold step forward—embarrassed me. new routes, and know that any one
you finally have.” baby-boomer generation can expect route may not last that long, because
“Get dressed and out of your apartment every day.”
a diner. to live until 85 or 90, which gives us No more ‘shoulds’ what’s attractive or possible at 65
“Enjoy spending weeks on your couch, in your paja- 15 to 20 more years between midlife It took a while, but I soon realized isn’t at 75 or 85. And most important,
mas, reading novels.” and frail old age than prior genera- that was my mistake, the idea that I my plan is to understand that the
“Pursue your dreams.” tions. The question is what to do had to take a bold step. The only “What’s next?” question isn’t some-
“Accept that you’ve accomplished enough and don’t with those years. way forward, I’ve found, is to experi- thing to fear, but to look forward to.
need to keep striving.” I have choices coming at me from ment and not worry so much about
I listened politely and tried not to feel whipsawed by every direction. I can learn to play what others think. In part, this is be- Ms. Hymowitz is a writer in
the clashing counsel. No one told me what I most needed Chopin and Mozart on the piano cause people my age are each pursu- New York. She can be reached at
to know: “You’re entering uncharted territory.” again, which brought me joy when I ing different paths—from spending reports@wsj.com.
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A Comparison of Two Ways to Simplify Your Student-Loan Debt

BY CHERYL WINOKUR MUNK wouldn’t be eligible for based on Private-lender refinancing nancially established.
Managing student-loan repayment

can be tricky, especially for those
their loan type. For borrowers with
older variable-rate loans, which the
federal government no longer offers,
5.05%
Rate for federal undergraduate
Student-loan refinancing, which is
only available from private lenders,
allows borrowers to combine several
A major downside to refinancing
federal loans with a private lender is
that borrowers lose the consumer
who have multiple school loans and consolidation offers a fixed interest student loans loans into a new, single loan. Those protection and repayment programs
multiple servicers. rate, which could be beneficial in a who refinance have the potential to that federal loans offer, including in-
Borrowers looking to simplify rising rate environment. lower their monthly interest rate— come-driven repayment and loan
their student-loan debt typically
have two choices: They can consoli-
date their federal loans or refinance
On the downside, consolidation
usually increases the period borrow-
ers have to repay their loans, mean-
14.24%
High end of rates for
especially if they have stellar
credit—and they’ll likely have fewer
bills and payments to keep track of.
forgiveness, among other things, Mr.
Hounanian says. (Certain benefits
may be available from a private
their debt with private lenders. ing they will likely pay more overall private student loans Most lenders don’t charge an appli- lender, but it depends on the lender.)
Here’s what borrowers need to than they would have otherwise. And cation or origination fee to refi- To make an informed decision
know about the two options before when loans are consolidated, any in- nance, and borrowers can apply to about consolidation or refinancing,
making a switch.
Federal-loan consolidation
terest outstanding on the loans be-
comes part of the principal balance
of the consolidation loan, meaning
$4,510
Average undergraduate federal
refinance again if they choose,
though frequent refinancing isn’t ad-
visable since it could impact the bor-
borrowers need to have a clear un-
derstanding of the types of student
loans they have, says Ross Riskin,
This program, offered by the govern- interest may accrue on a higher loan amount borrowed for rower’s credit score. Borrowers also assistant professor of taxation and
ment, is available for most types of principal balance. 2017-18 academic year should be aware that although some CFP Program Director at The Ameri-
federal loans; private loans cannot In some cases, consolidation private lenders refer to privately re- can College of Financial Services.
be consolidated under this program. could cause borrowers to lose cer- financed loans as “consolidation To that end, borrowers should go
The upside of consolidating fed-
eral loans is that borrowers will
have fewer bills and payments to
tain benefits associated with their
current loans—such as interest-rate
discounts, principal rebates or some
$29,800
Average debt for graduates
loans,” they aren’t the same thing as
loans that have been consolidated
under the federal program.
to the National Student Loan Data
System to get a list of their federal
loans. They can then match up those
keep track of each month. They will loan-cancellation benefits. Borrow- of the class of 2018 Each private lender has its own loans with the ones listed on their
pay a fixed interest rate, which is the ers also could lose credit for any policies and eligibility requirements credit report, available from one of
weighted average of the interest qualifying payments made toward Note: Interest rates as of April 2019 for refinancing, so borrowers should the three credit-reporting compa-
rates on the loans being consoli- income-driven repayment plan for- Sources: Institute for College Access and do their due diligence. Some private nies. The loans that aren’t listed on
SARAH BLESENER FOR THE WALL STREET JOURNAL
dated, rounded up to the nearest giveness or Public Service Loan For- Success; College Board’s Trends in Stu- lenders, including Earnest, SoFi and the NSLDS database are most likely
one-eighth of 1%. Borrowers may giveness. dent Aid 2018; Student Loan Hero LendKey, will refinance both private private loans.
also be able to lower their monthly However, borrowers don’t have to and federal student loans, which can Borrowers shouldn’t make assump-
payment since consolidation typi- include all eligible loans when con- be desirable for simplicity purposes. tions about the type of loan they have
cally extends the life of the loan. solidating—and they shouldn’t do so One thing to note, which often A few lenders, including Common- based on the servicer. Navient, for ex-
For borrowers with older types of if they stand to lose benefits tied to trips up families, is that student Bond, will transfer a loan into some- ample, services both federal and pri-
federal loans (those that aren’t con- some of those loans, according to debt and parent debt cannot be com- one else’s name through the refi- vate loans, which may confuse some
sidered Direct Loans), consolidation the Education Department’s Federal bined for the purpose of federal-loan nancing process, which may be borrowers, Mr. Riskin says.
may give them access to additional Student Aid office, which advises consolidation, says Cody Hounanian, attractive to parents who took out a
income-driven-repayment-plan op- borrowers to contact its support program director at Student Debt federal Parent Plus Loan and would Ms. Winokur Munk is a writer in
tions and Public Service Loan For- center for more information about Crisis, a nonprofit advocacy group prefer their children assume respon- West Orange, N.J. Email her at
giveness, which they otherwise their specific circumstances. for student-loan borrowers. sibility for this debt once they are fi- reports@wsj.com.
The Price
auction records for other “relics” or
objects somehow associated with
Washington that had appeared on
the market. These included “objects
Of a Piece
he purportedly handled, clothing he
purportedly owned, strands of his
hair,” she says.
Cowan’s ended up estimating the
Of History
value of the “dessicated” Mount
Vernon lemon at $3,000 to $4,000,
according to a description on its
website. Objects associated with
Washington these days, Ms. Horst-
man says, can sell for anywhere
What’s a lemon from George from $1,000 up to tens of thou-
Washington’s tree worth? sands of dollars. The website de-
scription also includes an account
from a research historian at Mount
A
BY DANIEL GRANT Vernon describing historic details
that support the claims asserted in
fresh lemon can be purchased for less the lemon’s provenance. A Cowan’s
than $1. But in 2008, Cowan’s Auctions representative adds that the prove-
in Cincinnati sold a lemon blackened nance hasn’t been disputed.
with age for $2,350. Often the ultimate selling price
What was so special about this of objects touched by history has to
lemon? It was said to be from a tree do with the moods and passions of
planted by George Washington at Mount Vernon. Accord- the collectors and other prospec-
ing to a handwritten note in ink affixed to a partly sealed tive buyers expected to be present
bottle containing the lemon, the fruit was plucked in on auction day. Frequently such
May 1842 by Washington’s “old gardener” some 43 years people are known to the dealers
after the first president’s death. and auctioneers, which helps in as-
Two thousand dollars is a lot to pay for produce, even sessing the likely enthusiasm a par-
from the estate of a founding father. This sale, however, ticular item will kindle once it’s on
just might be considered a bargain compared with prices the auction block.
paid for other historical collectibles in recent years. But even the experts can stumble
Stephen Hawking’s wheelchair fetched £296,750 sometimes.
(about $374,000) at a sale at Christie’s in London last For instance, a 2016 Christie’s
November. Meanwhile, the dress worn by Marilyn Mon- sale in London included a 1935
roe when she sang “Happy Birthday” to President John Levi’s leather jacket worn by Albert
F. Kennedy, and which sold at Christie’s for nearly $1.3 Einstein, and a pocket watch the
million in 1999, sold again in 2016 for $4.8 million at Ju- physicist had owned in 1900 when
lien’s Auctions in Culver City, Calif. he was 21 years old and still largely
Collecting a piece of history, or an object associated unknown. The jacket sold for
.
with a famous person, is not brand new. Ordinary objects £110,500, well above its estimated
ly
with extraordinary stories have increasingly been coming value of £40,000 to £60,000. The
UNIVERSITY OF NEW HAMPSHIRE/GADO/GETTY IMAGES; COWAN’S AUCTIONS
to auction and achieving high prices, says Thomas Ven- The Levi’s leather Photographs of the famous person with the watch, meanwhile, which had an es-
ning, director of Christie’s department of books and jacket worn by Al- object, as well as documentation (such as timated value of £15,000 to
manuscripts in London. Prices are being driven up, he onbert Einstein sold letters, diaries or recollections by acquain- £20,000, sold for £266,500.
says, by collectors in the U.S. and, increasingly, in Asia. at auction in 2016 tances referring to the object) can also help. Christie’s Mr. Venning has a
The Hawking wheelchair, for example, was purchased by for £110,500 The uniqueness of many of these objects theory as to why the watch sold for
a private museum in China. (about $139,000); further complicates efforts to put a value on so much more than the jacket, and
us l,
Mr. Venning believes that for many private collec- in 2008, a lemon them. To gauge the value of, say, a Picasso likely for more than the experts
tors, iconic objects are “magic.” The objects help them (left) from a tree painting, one can look at recent prices paid would have guessed. There are pho-
imagine themselves with this person, he says. Twenty planted by George for other Picasso paintings of the same pe- tographs of Einstein, the father of
al a
e
years ago, he adds, the market was more dispersed, Washington at riod, similar size or style. Finding another relativity, wearing the jacket, Mr.
with collectors interested in both famous individuals Mount Vernon recent sale of a lemon planted by George Venning says. “But Einstein’s leather
ci on
and others of less historical importance. “Now, we see went for $2,350. Washington is a different matter. jacket didn’t change the world. The
a concentration on just the great people of history, and Katie Horstman, head of Cowan’s Ameri- watch, and the sense of time, is what
for them there is greater competition and higher can History department, says she could find we know him for, which made it
prices,” Mr. Venning says. no comparables for the lemon as she pre- more valuable to collectors.”
Yet determining potential values of such objects isn’t pared the piece for its auction. Ms. Horst-
er rs
easy. For one thing, their provenance, or history of own- man nevertheless eventually arrived at an Mr. Grant is a writer in Amherst,
ership, is both crucial and sometimes difficult to prove. estimated value, she says, by researching Mass. Email: reports@wsj.com
m e
m rp
co Fo
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121600

That means my travel costs will be quite a
bit more than hers. What would that mean
for splitting other parts of the trip?
A friend and her boyfriend from outside
Philadelphia recently had to grapple with a
similar issue while she was traveling for
business in Austin. She suggested extending
her trip so her boyfriend could join. It was a
nice idea that ended up causing tension.
With both of her flights paid for by her
company, was it unfair to let him pay full
price for his ticket? Or was it unfair to
make her pay for a trip that was a free perk
of her job?
Knowing she would agree if he asked her
to split the cost paralyzed him. While he
perceived that as fair, he didn’t want to
pressure her into sharing. When she ended
up offering to pay for half of his flight—
halving the amount they’d each normally
need to pay for the vacation—her reasoning
was based on the fact that she was the one
who initiated the idea that he travel along.
My girlfriend and I came up with a differ-
ent solution. Instead of splitting the cash
value of my plane ticket, she’s contributing
miles to give me the benefits of a discount
without seeing her bank balance drop.
Finally there’s the question of: Whose
trip is this, anyway? If the “inequality” is
created because the itinerary favors one
person’s interests, should that person foot
more of the bill? I know, it isn’t the most ro-
mantic way to share a vacation together,
but you don’t want any resentment about
costs taking away the romance, either.
One mid-20s couple I know narrowly
avoided that resentment while planning a
trip for July. In separate conversations, the
boyfriend described their planned summer
YOUNG MONEY | KEVIN MCALLISTER she has made some big sacrifice. Each has jaunt from their home in Indiana to Las Ve-
the capacity to ruin a weeklong trip, and gas to me as the “trip of the century.” His
We’re Going Away

avoiding both requires a couple to put price girlfriend described it as simply a trip that
.
tags on unique circumstances and deter- was “happening.”
ly
mine to what degree they tip the scales. With the varied interest levels came a
Together! Uh-Oh
Sometimes that situational unevenness disagreement about how they should handle
involves actual dollars and cents. When one the bills. He assumed the cost would be
on person makes significantly more money split down the middle, but she felt that was
than the other, it’s easy to see that the unfair, since this trip was on his wish list,
playing field isn’t level, not hers. After some diffi-
though awareness alone cult discussions, they
When couples take vacations
us l,
learned from talking to other young couples, hardly clears things up. A compromised. Since her
together, the question of who figuring out the finances of a joint vacation colleague of mine and his At times, ‘inequality’ goal was simply to spend
pays what can be a tricky one can often become more about keeping the girlfriend wrestled with time away with him, she
al a
is dictated by the
e
M
relationship from falling apart as opposed to this anytime they went paid for her flight out.
putting the vacation together. away. They didn’t want conditions of a trip, And since his goal was to
ci on
y girlfriend and I re- Among the questions couples are forced to miss things they’d not by the paychecks spend that time together
cently took a big leap, to consider: Is going Dutch still fair if you both like to do because in Las Vegas, he covered
uttering the three words start off the trip in different circumstances? she couldn’t afford it. At that finance it. his flight and their hotel.
that signaled a step for- In our case, since we wouldn’t be in the the same time, she didn’t As for me, we’re lucky
ward in our relationship: same city at the start of the trip—some- want to feel guilty about enough to both be excited.
er rs
Let’s go away. thing increasingly common in two-career re- having him pay for everything. In the end, I am paying slightly more in
We’d heard enough about romantic get- lationships—how would we account for the In the end, he usually paid for a larger terms of actual money spent, in part be-
aways from the songs of the summer to different costs of traveling? And if we’re do- portion of the trip with the understanding cause we are staying a couple of days at
know it was a sweet decision, one that ing something that one of us is more ex- that she would pay for one big thing, which her family’s house, and so I felt it only fair
m e
could vault us to the next level. We just had cited about, should that affect how much would often be a surprise. It allowed both of that I pick up more of the subsequent hotel
no idea that the road to a vacation often we each pay? them to feel they had contributed. bill. I’m also getting a discounted plane
m rp
winds through a financial minefield. These are issues that most people over a Another couple I know in the same boat ticket, thanks to my girlfriend’s frequent-
Sure, we had taken the odd weekend certain age no longer deal with. But for had a different solution. Instead of focusing flier miles. We both feel like we’ve found a
away, but the cost and convenience of those younger couples—especially those who keep on who paid for specific parts of the trip, middle ground that makes us both happy.
trips really only warranted the kind of dis- their finances separate, live in different they each paid an equal percentage of their And even better: We now have a road
cussion we might have in a restaurant when places and are financially savvy—the ques- respective incomes. map for navigating future trips.
co Fo
the bill comes. But in shifting from “week- tions they raise are front and center. Still, at times the “inequality” is much
end” to “trip,” we were graduating to our And getting to the right answer can be a more subtle. Since my girlfriend and I will be Mr. McAllister is a reporter for The Wall
biggest joint financial decision, and in doing tricky balancing act. You don’t want either living in different cities at the start of our Street Journal in New York. Email com-
that, we needed to rethink what it even person feeling indebted to the other. Nor do vacation, the first leg of our trip has me ments and questions to kevin.mcallis-
meant to divide the costs equitably. As I you want either person feeling like he or joining her instead of traveling together. ter@wsj.com.
Don’t Save Enough? Perhaps You Have ‘Exponential-Growth Bias.’

n-
BY SHLOMO BENARTZI The mistakes Such financial confusion has a clear effect The fixes
The first isn’t saving enough, as exponential- on savings. A recent paper by Gopi Shah Goda, Taken together, these two tendencies—saving
Say you have a dollar that doubles in value growth bias leads people to underestimate the deputy director of Stanford University’s Insti- less and borrowing more—can severely under-
every day. How much money will you have af- benefits of long-term investing. Because such tute for Economic Policy Research, and her mine individuals’ financial security. The good
no
ter a month? people think that their savings grow linearly, colleagues finds that those at highest risk for news is that relatively simple interventions can
For most people, the answer is rather and not exponentially, they believe it is rela- exponential-growth bias contribute signifi- reduce the impact of exponential-growth bias.
shocking: You will have more than $1 billion tively easy to make up for lost time. That cantly less to their retirement accounts, even One easy fix is to do the math for people.
after 31 days of doubling. makes it easier to postpone saving. after controlling for cognitive ability, financial Research suggests it doesn’t matter if people
Although the math is just basic arithmetic, This was demonstrated in a study by behav- literacy and many demographic factors. are given old-fashioned calculators—they still
many of us assume the final number will be far ioral scientists Michael Liersch, at New York The second financial mistake influenced by can’t solve questions involving compound
smaller, a blind spot known as exponential- University at the time, and Craig McKenzie, of exponential-growth bias is taking on too growth. This suggests that, instead of just tell-
growth bias. Simply put, exponential-growth the University of California, San Diego, which much debt, as the bias leads people to under- ing people their interest rate, we should tell
bias is the tendency to neglect the effects of them how much they could expect to have or
compound interest, which is what happens when Bad Math $3.0 million owe in the future based on that rate.
earned interest is reinvested. Research shows Investors often miscalculate For instance, Drs. Liersch and McKenzie
that this bias matters: Households with a stron- compounding interest. In the Correctly calculated 2.5 showed that exposing employees at a Fortune
ger bias tend to save less and borrow more. example of someone investing compound interest 100 company to their future retirement-ac-
They have portfolios that include more short- $400 monthly for 40 years, Total: $2,594,211.13 count balance if they continued to contribute
term assets and an overall lower net worth. with a 10% average annual 2.0 (and their savings continued to earn 8% annu-
In recent years, behavioral economists return, the difference is ally) led to a 14-percentage-point increase in
have come up with tests to measure an indi- millions of dollars. those who said they wanted to save more. Sim-
1.5
vidual’s level of exponential-growth bias. ilar effects were found when college students
Here’s a typical question: were given a simple chart showing the growth
Assume that you deposit $400 every month 1.0 of their money over time.
Common
into a retirement savings account that earns a miscalculated Furthermore, research I conducted with Dan
10% yearly rate of interest. How much money compound 0.5 Goldstein of Microsoft Research and Hal Her-
interest
do you think you will have in your account af- Total: $211,200.00
shfield, a professor at the University of Cali-
ter 40 years (including interest earned)? fornia, Los Angeles, has shown that exposing
0
Ready for the answer? It’s about $2.5 mil- people to their projected monthly income in
lion after 40 years. If you didn’t get it right, 0 24 48 72 96 120 144 168 192 216 240 264 288 312 336 360 384 408 432 456 480 retirement (rather than a lump sum) can make
don’t worry; most people don’t. In fact, a clear MONTHS people even more likely to boost their savings
majority make the exact same error. They mul- rate, at least when the lump sum is modest.
tiply 400 x 12 x 40 x 1.1, which is equal to asked subjects to consider two people, Alan and estimate the long-term cost of debt. Accord- This suggests that individuals understand dol-
$211,200. Not a paltry amount, but it’s less Bill, who are saving for retirement in 40 years. ing to research by Victor Stango, a professor lar amounts better than interest rates, and
than 10% of the actual total. Alan deposits $100 every month into his re- at University of California-Davis, and Jona- that everyday dollar amounts are best of all.
(The correct calculation requires adding tirement account. Bill waits 20 years before than Zinman, a professor at Dartmouth Col- The larger lesson is that the best way to
the earned interest for each year to the prin- depositing money into his account. Both ac- lege, exponential-growth bias increases the convince people to save more is to help them
cipal sum, and then calculating the interest counts earn 10% interest every year, com- short-term debt-to-income ratio of house- understand the reality of compounding, which
for the next year based on that amount. pounded annually. How much money would Bill holds from 23% to 54%. Because people with is the magic that happens to their money when
While online calculators can make the pro- need to deposit into his account each month to the bias don’t understand how interest accu- they invest it and leave it alone.
cess far easier, they do require that people have the same amount of money as Alan when mulates, they are more likely to take on ex-
first realize they need help.) they both retire? pensive loans. The interest quickly adds up. Dr. Benartzi (@shlomobenartzi) is a
How did you do? If you were far off in The majority of participants thought the an- On a $5,000 credit-card balance, for instance, professor and co-head of the behavioral
GIACOMO BAGNARA
your estimate, you may have exponential- swer was $200, or twice as much as Alan. The a customer paying the 3% monthly minimum decision-making group at UCLA Anderson
growth bias and should be mindful of making correct answer is $773 a month. The lesson is will spend $5,188 on interest alone. It will School of Management and a frequent
two common mistakes when it comes to sav- that making up for lost time tends to be much also take that customer more than 17 years to contributor to Journal Reports. You can
ing for retirement. more difficult than people think. pay off the debt. reach him at reports@wsj.com.
swer after doing its in, algorithms could lead to less risk-
calculation. taking, creativity and critical think-
This bias seems ing finance and in society overall.
especially strong in Indeed, if people start accepting
the area of con- algorithmic results as fundamental
sumer finance, truths, they may be less willing to
where investors are take long-shot bets on promising
constantly told to startups or go against the odds in
look at data objec- pursuit of innovative solutions to
tively and not let problems. Such risky bets can result
emotions drive in failures. But they also can lead to
their decision-mak- tremendous success.
ing. Algorithms
don’t have emo- Fighting back
tions, so they must Fortunately, there are ways to re-
always be objective duce the risks associated with auto-
and rational—or so mation bias.
the thinking goes. For starters, lawmakers, educa-
That perception, tors and the media should nudge
however, is mis- people to seek second opinions—hu-
guided. People often man or not—on the recommenda-
overlook the fact tions they get from algorithms, espe-
that algorithms are cially those whose inner workings
designed by humans and biases are difficult to assess.
who choose what Regulators also should consider re-
data to use and how quiring robo advisers and other au-
to use it—and those tomated consumer-finance products
humans are just as to disclose that there can be biases
fallible as human in the algorithms they use, similar to
advisers. Coders how drug firms must disclose the
Beware Algorithm Wisdom can consciously or

unconsciously em-
bed biases into al-
gorithms.
medical risks associated with their
products. Simply instilling a minimal
dose of informed skepticism could
help reduce some of the effects of
Investors prefer automated advice over pointing investment-performance re- So although algorithmic advisers automation bias.
human advice. They do so at their peril. sults. Yet when asked again to rate certainly have contributed to the Taking it a step further, regula-
their level of confidence in their ad- field of personal finance, consumers’ tors may want to require the disclo-
M
BY NIZAN GESLEVICH PACKIN visers, and whether they would be increasing deference to algorithmic sure of the assumptions used by hu-
likely to use them again, the survey results also raises several concerns. man coders who develop algorithms,
any of us routinely—and even Investors view takers continued to favor the robo One is that as people outsource as well as the data sets the algo-
blindly—rely on the advice of algo- an algorithm advisers over the human experts. more of their decision making to al- rithms use and don’t use, to make
like a math
rithms in all aspects of our lives, gorithms, their desire to seek second people more aware of any biases. Al-
equation—an
.
from choosing the fastest route to objective
No second opinion opinions weakens. Because they al- ternatively, alerting people to the ex-
ly
the airport to deciding how to invest process that Why is this the case? ready have received an objective al- istence of competing algorithms may
our retirement savings. always spits out In real life, there are several rea- gorithmic opinion, they may think increase awareness that algorithms
But should we trust them as much as we do? Research the correct sons why some investors might pre- that seeking another opinion is differ based on human choices.
suggests maybe we shouldn’t, especially when it comes answer after
on fer robo advisers over human ones. pointless. But just as no two human In the interim, people need to re-
to high-stakes financial decisions. doing its Robos are available 24/7, can be ac- advisers are likely to provide a cus- member that there is no absolutely
I recently conducted an empirical study focused on calculation. cessed from the comfort of a customer with the exact same invest- correct algorithm. Instead, investors
automation bias, or our preference for using algorithmic tomer’s bedroom and don’t require ment results, investment algorithms should treat robo advisers just like
us l,
decisions over those of human experts, and its impact in setting up a meeting or phone call in can vary greatly in performance. So they treat human ones—by seeking
the area of consumer finance. I provided 800 U.S. survey advance. They also are cheaper. getting a second opinion via a differ- out reviews, recommendations and
takers with a series of hypothetical investment situa- But none of that explains the re- ent algorithm is both rational and evaluations. Algorithms are fallible,
al a
e
tions. Some were told the advice being provided came sults of my study, since I hadn’t told important. That’s especially true for and it is good practice to seek a sec-
from a human adviser, while others were told the recom- survey takers that the algorithms high-stakes decisions—say, a risky, ond, different opinion, even if it is
ci on
mendations came from an automated online algorithm. were cheaper or more accessible. In- yet potentially rewarding business the opinion of another algorithm.
The survey takers who thought they were getting ad- stead, the results likely were due to opportunity—or when an investor
vice from an algorithm consistently reported having the fact that many people perceive doesn’t like the first recommenda- Dr. Packin is an assistant
more confidence in the recommendations than those algorithms to be a superior author- tion but is unqualified to evaluate professor of law at Baruch
ALEX NABAUM
who thought they were being advised by a human expert. ity. They view an algorithm like a how sound it really is. College’s Zicklin School of Business
er rs
As a follow-up, all of the study participants were told math equation—an objective process Another concern is that our in- in City University of New York.
that the financial advice they received resulted in disap- that always spits out the correct an- creasing dependence on, and trust Email her at reports@wsj.com.
m e
m rp
Explore the forces shaping the

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OCTOBER 7, 2019 | NEW YORK, NY
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Chairman and CEO Chairman and CEO Co-Founder and CEO
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CEO
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Frank Yiannas Jennifer Houston
Deputy Commissioner for 2019 President James Mulhern
Food Policy and Response National Cattlemen’s President and CEO
U.S. Food and Drug Beef Association National Milk Producers Federation
Administration
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Co-Founder and CEO
David Friedberg Scott Spradley Sweetgreen
Founder and CEO Executive Vice
The Production Board President and CTO Don Niles
Tyson Foods President
Peninsula Pride Farms
Dan Steere
Kiersten Stead. Ph.D. Ponsi Trivisvavet CEO
Managing Partner CEO Abundant Robotics
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Senior Vice President, Intelligent Solutions Group
Deere & Company
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income tax. Check with your state revenue
department to avoid nasty surprises.
How long do I typically have to hold stocks

or bonds to qualify for favorable long-term
capital-gains tax treatment?
More than one year, says Alison Flores, prin-
cipal tax research analyst at The Tax Insti-
tute at H&R Block. Gains on securities held
one year or less typically are considered
short-term and taxed at the same rates as
ordinary income, she says. The rules are
“much more complex” for investors using op-
tions, futures and other sophisticated strate-
gies, says Bob Gordon, president of Twenty-
First Securities in New York City. IRS
Publication 550 has details, but investors
may need to consult a tax pro.
The holding-period rules can be important
for philanthropists who itemize their deduc-
tions. Donating highly appreciated shares of
stock and certain other investments held
more than a year can be smart. Donors typi-
cally can deduct the market value and can
avoid capital-gains taxes on the gain. But
don’t donate stock that has declined in value
since you purchased it. “Instead, sell it, create
a capital loss you can use, and donate the
proceeds” to charity, Mr. Gordon says. You can
use capital losses to soak up capital gains. In-
vestors whose losses exceed gains may de-
duct up to $3,000 of net losses ($1,500 for
married taxpayers filing separately) from
their wages and other ordinary income. Carry
over additional losses into future years.
TAXES | TOM HERMAN That can affect people in both the 15% and If you sell losers, pay attention to the
20% brackets. For those in the 20% bracket, “wash sale” rules, says Roger Young, senior
that effectively raises their top rate to 23.8%. financial planner at T. Rowe Price. A wash
A Need to Know on “That 23.8% rate is the rate we use to plan

around for high net-worth individuals,” says
Steve Wittenberg, director of legacy planning
sale typically occurs when you sell stock or
securities at a loss and buy the same invest-
ment, or something substantially identical,
Capital-Gains Taxes at SEI Private Wealth Management.

There are several other twists, says Mark
within 30 days before or after the sale. If so,
you typically can’t deduct your loss for that
.
Luscombe, principal analyst for Wolters Klu- year. (However, add the disallowed loss to
ly
wer Tax & Accounting. Among them: a maxi- the cost basis of the new stock.) Mr. Young
mum of 28% on gains on art and collect- also says some investors may benefit from
The law is more complicated this year and answers to questions readers ibles. There are also special rates for certain “tax gain harvesting,” or selling securities for
than many people realize. may have on how to avoid turning capital
on depreciable real estate and investors with a long-term gain in a year when they don’t
gains into capital pains. certain types of small-business stock. See face capital-gains taxes.
Here’s an update. IRS Publication 550 for details. There also While taxes are important, make sure in-
Who qualifies for the zero-percent rate? are special rules when you sell your primary vestment decisions are based on solid in-
us l,
By tax-law standards, the rules on capital- For 2019, the zero rate applies to most sin- residence. vestment factors, not just on taxes, says Yo-
gains taxes may appear fairly straightfor- gles with taxable income of up to $39,375, State and local taxes can be important, landa Plaza-Charres, investment-solutions
ward, especially for taxpayers who qualify or married couples filing jointly with taxable too, especially in high-tax areas such as director at SEI Private Wealth Management.
al a
e
for a zero-percent rate. income of up to $78,750, says Eric Smith, an New York City and California. This has be- And don’t wait until December to start fo-
But many other taxpayers, especially up- IRS spokesman. Then comes a 15% rate, come a much bigger issue in many places, cusing on taxes.
ci on
per-income investors, “often find the tax law which applies to most singles up to thanks to the 2017 tax overhaul that in- “We believe in year-round tax manage-
around capital gains is far more complicated $434,550 and joint filers up to $488,850. cluded a limit on state and local tax deduc- ment,” she says.
than they had expected,” says Jordan Barry, Then comes a top rate of 20%. tions. As a result, many more filers are
a law professor and co-director of graduate But don’t overlook a 3.8% surtax on “net claiming the standard deduction and thus Mr. Herman is a writer in New York City. He
MIKEL JASO
tax programs at the University of San Diego investment income” for joint filers with mod- can’t deduct state and local taxes. But some was formerly The Wall Street Journal’s Tax
er rs
Law School. ified adjusted gross income of more than states, including Florida, Texas, Nevada, Report columnist. Send comments and tax
Here is an update on the brackets for $250,000 and most singles above $200,000. Alaska and Washington, don’t have a state questions to taxquestions@wsj.com.
m e
m rp
co Fo
n-
no
Get a clearer picture of the 401k fees

you might be paying.
Your retirement savings should stay in your pocket, which is why TD Ameritrade provides the 401k fee analyzer tool
powered by FeeX. It finds out if you’re paying unnecessary fees on your old 401k and helps you decide if rolling over is
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Fees are only one consideration when making the decision to roll over. And in certain situations, fees may be higher in a rollover IRA. Review your retirement plan rollover choices at
tdameritrade.com/rollover. The 401k fee analyzer tool is for informational and illustrative purposes only, and does not constitute advice. TD Ameritrade, Inc., member FINRA/SIPC.
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