Professional Documents
Culture Documents
WST 2019
WST 2019
T wo Giuliani associates
in late February urged
Ukraine Probes
Ukraine’s prior president to
announce probes similar to Months before President Ukrainian general prosecutor
those Trump later pressed Trump pressed Ukraine’s Yuriy Lutsenko, the people said.
on Zelensky in exchange for a newly installed leader to in- It came soon after Messrs. Par-
state visit to Washington. A1 vestigate Joe Biden’s son and nas and Fruman met with Mr.
National-security officials allegations of interference in Giuliani, the president’s per-
testified in the impeach- sonal lawyer, and Mr. Lutsenko
ment inquiry that they were By Rebecca Ballhaus in New York in late January
taken aback by the efforts of and Alan Cullison in and again in Warsaw in mid-
Sondland to push Ukraine to Washington and February, Mr. Giuliani has said.
launch investigations. A4 Brett Forrest in Kyiv Mr. Lutsenko also attended
the late February meeting, the
Trump disputed China’s
the 2016 U.S. election, two as- people said. Mr. Poroshenko
assertion that Washington
sociates of Rudy Giuliani urged didn’t ultimately announce that
and Beijing had agreed to
the prior Ukrainian president he was opening those investi-
roll back tariffs as part of
to announce similar probes in gations. Mr. Lutsenko, the pros-
an interim trade accord. A3
exchange for a state visit to ecutor, gave an interview to the
Vitamin E oil was detected Washington, according to peo- Hill in March in which he said
in all 29 samples taken from ple familiar with the matter. he was opening an investiga-
vaping patients tested by A late February meeting in tion into alleged interference
the CDC, the agency said. A1 Kyiv between Lev Parnas, Igor Please turn to page A4
Fruman and then-Ukrainian
Bloomberg is drawing up
President Petro Poroshenko Ambassador’s efforts alarmed
a strategy to build campaign
took place at the offices of officials.......................................... A4
staff in states that hold March
2020 primary contests, as he
mulls a presidential bid. A5
The administration is
proposing to raise the cost
of applying for U.S. citizen-
Banks Harbored
ship, as well as creating new
fees for some asylum seekers
and the DACA program. A3
Doubts on WeWork
PHILIP FONG/AGENCE FRANCE-PRESSE/GETTY IMAGES
job as chief executive. B3 the investigation into the cause loss of negotiating power and likely
of mysterious lung injuries. means a fraction of the compensation
A Milan court convicted 13 Researchers found the oil in they might receive in a jury trial.
former and current executives
fluid taken from the lungs of pa- California investigators have con-
of Monte dei Paschi, Deutsche
tients with illnesses related to nected PG&E equipment to fires that
Bank and Nomura of a num-
vaping from 10 different states, killed more than 100 people, destroyed
ber of financial crimes. B12
the CDC said. No other suspi- 26,000 buildings and burned at least
Blackstone is taking a cious substances were detected 330,000 acres in 2017 and 2018. Law-
majority stake in the owner aside from vitamin E oil, also yers for fire victims estimate that the
of dating app Bumble as it known as vitamin E acetate. utility, which filed for chapter 11 bank-
pushes to invest more in A CDC official described the ruptcy protection in January, is liable
fast-growing companies. B3 finding as a breakthrough, for as much as $54 billion in wildfire
since it links a concerning Please turn to page A9
Amtrak inched closer to
substance found in the vaping Todd Vincze, 66, visits the land where his house burned down in the Camp Fire a year
breaking even last year as
products to biological samples Crises test Californians’ resolve............... A9 ago Friday in Paradise, Calif., and awaits news about his PG&E and insurance claims.
rising ridership and cost cuts
from the patients.
continued to improve its
“For the first time, we have
EXCHANGE
financial performance. A3
detected a potential toxin of
concern” in patient samples,
She Climbed Kilimanjaro—and Kept Her Phone Alive
OPINION Anne Schuchat, the principal i i i
deputy director at the CDC,
Higher Education’s
Enemy Within A13
said on a call with reporters. Extreme conditions require unusual tactics; spooning with gadgets
“These findings provide direct
evidence of vitamin E acetate
CONTENTS Sports....................... A10
at the primary site of the in- BY ANUPREETA DAS do. I would have to spoon my over my gadgets, rather like a
Books..................... C7-12 Style & Fashion D2-3 jury within the lung.” phone. Then, feeling bad for all hen with mechanical eggs. “It
Food......................... D6-9 Travel...................... D4-5 Yet, the results aren’t MOUNT KILIMANJARO—At the other gadgets I had brought was too uncomfortable,” she
Heard on Street...B14 U.S. News............ A2-5 enough to be labeled a cause, 13,800 feet on Africa’s highest along on my weeklong quest to added, having tried it one night
Markets.................... B13 Weather.................. A10
Obituaries................. A8 Wknd Investor....... B4 according to Dr. Schuchat, who mountain, as the nighttime summit Kilimanjaro, I snuggled and woken up with a 1.3-pound
Opinion............... A11-13 World News....... A6-8 said more studies will need to temperature dipped and I my smartwatch, my AirPods, portable battery charger on her.
be conducted to determine drew my hot-water bottle two digital cameras, a head- After that, she stuffed her tech
whether vitamin E oil was be- closer, the following thoughts lamp, charging cables, three inside hats and pockets instead.
> hind the vaping injuries. STREAM WARS occurred in quick succession: power banks and several dozen Gadgets, especially smart-
Health officials also say The great I was toasty in my sleeping spare batteries inside my bag. phones and devices powered by
there might be more than one bag. My iPhone, sitting on the It was a little crowded. lithium-ion batteries, respond
cause of the illnesses and they
entertainment tent floor, was not. How would “I definitely could not have poorly to extreme cold. They
will continue to work to better battle is here. I survive if my phone died on nested with my tech,” said Lilla can freeze or develop glitches.
s 2019 Dow Jones & Company, Inc.
All Rights Reserved understand the outbreak. No one is safe. B1 the mountain? Zuill, my tentmate, after sev- Batteries drain alarmingly fast.
Please turn to page A2 There was only one thing to eral nights of watching me fuss Please turn to page A8
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A2 | Saturday/Sunday, November 9 - 10, 2019 * *** ** THE WALL STREET JOURNAL.
U.S. NEWS
THE NUMBERS | By Jo Craven McGinty
T
Booking windows Flights for Thanksgiving
seats for Thanksgiving and he grounding of Boe- subject to flying when there seven to 13 days ahead of
JAN APRIL JULY OCT.
Christmas travel and found ing Co.’s 737 MAX af- is availability. It’s not neces- time.
that dawdlers got the best ter a fatal crash in In- sarily when you want to fly.” Those who bought tickets
prices. donesia last year and 61 to 90 days ahead of time
L
Those who waited until another in Ethiopia in March ast year, AAA esti- paid $551 on average. And
seven to 13 days before the means that some airlines mated 54.3 million those who waited until 28
Flights for Christmas
week of Thanksgiving paid will be short on inventory. Americans traveled and 60 days ahead paid an
$482 on average. Those who According to the Federal JAN APRIL JULY OCT. over Thanksgiving, and a to- average of $561.
waited until that close to the Aviation Administration, tal of 112.5 million traveled The findings are based on
week of Christmas paid there are 59 MAX operators through the end of the year domestic flights within the
around $488. world-wide with 387 of the over the full holiday season, continental U.S. booked
By those calculations, hol- aircraft in their fleets. including those visiting des- through AAA’s travel agents
Note: Ticket cost average is based on domestic flights within the continental U.S. from 2016
iday travelers who are will- In the U.S., where 74 of to 2018. tinations outside the U.S. and website from 2016
ing to gamble on getting the planes are registered, the Source: AAA Cautious fliers who through 2018.
similar deals this season operators include American wanted the most flexibility The organization declined
would have to hold out until Airlines Group Inc., South- “We had our schedule about 5% of Southwest’s purchased tickets far earlier to reveal how many flights
Nov. 11 through Nov. 17 to west Airlines Co. and United published through the holi- daily operation, has been re- than bargain hunters and were included in the data
purchase tickets for Thanks- Airlines Holdings Inc. days and beyond,” said Chris moved from the airline’s paid more for the certainty other than to say the records
giving. And for Christmas, The grounding, though Mainz, a spokesman for schedule through Feb. 8 and of locking in a preferred included “tens of thousands
they’d have to sweat it out temporary, is expected to Southwest, whose inventory there is no clear timeline for itinerary. of bookings.”
until Dec. 12 through Dec. 18. last through the entire holi- includes 34 MAX air- its return to service. Reservations booked be- But, Mrs. Twidale—who
In the past, early bookers day season. craft. “We had to revise Among other U.S. carriers, tween 61 and 180 days be- doesn’t sound like the sort of
got better deals, but now In addition to having that.” American Airlines, the coun- fore the week of Thanksgiv- person who plays chicken
they’re likely to pay more— fewer aircraft to transport Mr. Mainz declined to dis- try’s largest operator, has ing cost $522 on average— when she’s making travel ar-
and sometimes a lot more. passengers, travelers who cuss what the changes might grounded 24 MAX aircraft, about $40 more than those rangements—offered this ad-
“A few years ago, the ideal had been booked on the MAX mean for ticket pricing or representing about 1% of its made seven to 13 days ahead vice to travelers who are still
booking window for holiday will have to be accommo- seat availability in the com- daily departures, and United of time. Reservations booked dawdling: “If you haven’t
airfare might’ve been 30 to dated on other planes, fur- ing weeks, but he said the Airlines has grounded 14 of 28 to 60 days in advance, pushed the button,” she said,
60 days before your trip,” ther tightening the inventory. MAX, which represents the planes. when most flights are “you should be doing it now.”
U.S. WATCH
CHICAGO prison than he did for the abuse
has been released.
LAPD Veteran Named Tondalao Hall left a women’s
Interim Police Chief prison in McLoud, Okla., with her
sentence commuted after serv-
Chicago’s mayor said she ing 15 years behind bars.
would appoint Charlie Beck, the Ms. Hall was sentenced to 30
recently retired chief of the Los years in prison in 2006 after
Angeles Police Department as pleading guilty to failing to pro-
interim chief while the city tect two of her children. The
searches for a successor to Su- boyfriend, Robert Braxton Jr.,
perintendent Eddie Johnson. pleaded guilty to abusing the
PAM PANCHAK/PITTSBURGH POST-GAZETTE/ASSOCIATED PRESS
ingest but potentially dangerous leading e-cigarette maker, said including jobs, frankly, be- fill pods, which government ing three from patients who had
Vaping to inhale, the CDC said.
New York state health offi-
its vaping products don’t con-
tain THC or vitamin E acetate.
cause it’s become a pretty big
industry. But we’re going to
data indicates are popular
among teenagers.
said they hadn’t used products
containing THC. Not all of the
cials highlighted vitamin E ac- Separately, President take care of that.” Altria, which has a 35% stake 29 fluid samples could be tested
Illness etate as a substance of con-
cern in early September, when
Trump said he supports rais-
ing the minimum purchase age
The White House is still
working out the details of a pol-
in Juul, rose 0.91% on the New
York Stock Exchange on Friday.
for all of the substances, and in-
haled substances might not al-
U.S. NEWS
Trump Says
No Deal Yet
On Tariffs
WASHINGTON—President as increased agricultural pur-
Trump on Friday disputed chases and new rules to pre-
China’s assertion that Wash- vent currency manipulation.
ington and Beijing had agreed “The heart of the problem
to roll back tariffs as part of is the U.S. wants to maintain
an interim trade accord, but as much tariff leverage as pos-
he also said progress was be- sible, but China wants assur-
ing made toward resolving the ances that they won’t be ex-
Applicants WASHINGTON—Amtrak
inched closer to breaking even
last year, the company re-
50-year history that the na-
tional passenger railroad has
reached the break-even point
The proposed actions are loss in fiscal 2018 was $170.6 previously the CEO of Delta
the latest of the Trump admin- million. Air Lines Inc., and his prede-
istration’s rule changes, large Operating revenue rose to cessor Charles “Wick” Moor-
and small, that make it $3.3 billion, the company said, man, former chief of Norfolk
tougher for low-income people an increase of 3.6% over fiscal Southern Corp., for helping
to immigrate legally or be- 2018. the railroad grow its operating
come citizens of the U.S. The railroad’s fortunes were revenue while cutting costs.
The Department of Home- boosted by rising ridership in The company said it had
land Security published the a strong economy. The rail- boosted its capital investment
tentative new set of fees Fri- road recorded 32.5 million by more than 9% to $1.6 bil-
day evening, and the plan will customer trips, a record that Amtrak recorded 32.5 million customer trips, a record, as the railroad made more financial strides. lion in the past fiscal year.
be open to public comment for surpassed the previous year Amtrak is a private corpo-
30 days starting Nov. 14. by 800,000. Northeast regional trains. Rid- 1%, the company said. its rail network—not counting ration, chartered by Congress
Recipients of DACA, which Ridership on the premium ership on long-distance Amtrak Chief Executive the significant amounts it to operate the national pas-
provides legal protection for Acela service on the Northeast trains—which have been Richard Anderson has told spends maintaining trains, senger rail network, and al-
people brought to the U.S. ille- Corridor grew more than 4%, plagued by delays and unreli- Congress the railroad will tracks and tunnels—by next most fully owned by the gov-
gally as children, would need and was up almost 3% on ability—also grew by almost break even on the operation of summer. ernment.
to pay $275 to renew their
two-year legal permits.
In addition to the new or
raised fees, the government is
proposing to eliminate fee
waivers, meaning applicants
U.S. Women’s Soccer Players
with incomes under the fed-
eral poverty line would be re-
quired to pay the higher citi-
Win Round in Equal-Pay Suit
zenship fee and any costs BY RACHEL BACHMAN lowing the original case involv- team veteran Megan Rapinoe
associated with renewing a ing 28 players to expand to in- said of the judge’s ruling. “I
green card or work permit. The U.S. women’s soccer clude a few dozen more. think it’s a really positive step
U.S. Citizenship and Immi- team has been paid less per The 15-page ruling is proce- forward in this fight.”
gration Services, the DHS game than the U.S. men’s soc- dural and doesn’t decide the A U.S. Soccer spokesman
agency that processes citizen- cer team and suffered from in- merits of the case, but it pro- didn’t immediately comment.
ship and other immigration ap- ferior working conditions, said vides a window into the judge’s The case took on a global
plications, cited increased costs a federal judge who is presiding thinking. The trial is set for profile as the team dominated
and declining revenue to cover over the women’s ongoing pay- May 5, 2020. If the U.S. women the World Cup in France, win-
expenses as part of need to in- discrimination lawsuit against qualify for next summer’s To- ning it in July. After the final
crease fees. the U.S. Soccer Federation. kyo Olympics, as expected, they against the Netherlands, fans
USCIS said that without the U.S. District Judge R. Gary will begin play in July. chanted “Equal pay!” and have
increases, it could operate at a Klausner in Los Angeles “It’s almost a validation of continued chanting it at subse-
deficit of more than $1 billion granted class-action status, al- everything that we’re seeing,” quent games.
in the future. The U.S. women have won
“The adjudication of immi- four World Cups, including the
gration applications and peti- past two. The men haven’t won
tions requires in-depth a World Cup and failed to qual-
screening, incurring costs that ify for the 2018 tournament.
must be covered by the U.S. Soccer has said that any
agency, and this proposal ac- pay differences are due to their
counts for our operational separate collective-bargaining
needs and better aligns our agreements, not gender.
fee schedule with the costs of In his ruling, Judge Klausner
processing each request,” said pushed back on U.S. Soccer’s
Ken Cuccinelli, acting director argument that the U.S. women’s
of USCIS. players didn’t suffer any legal
Under the proposed new fee injury because they made more
schedule, immigrants looking money than the highest-paid
to become citizens would now men’s national-team players.
need to pay $1,170 rather than He wrote that U.S. Soccer
$640, a cost that almost no “presupposes that there can be
one would be permitted to no discrimination...where a fe-
MARK SMITH/ZUMA PRESS
POLITICS
pany “deceived customers” and interfere with the 2016 election. times vary based on race: Black Politics is usually close to last in among the former group; Bernie
used “threats, intimidation, and He is one of three lawyers now and Hispanic voters reported terms of revenue among Twit- Sanders leads among the latter.
gag clauses.” representing Giuliani in relation waiting longer than white voters. ter’s dozen-plus sales verticals.
The company president to his activities in Ukraine. COMMITTEE TURF WARS pre-
threatened customers in emails, GRASS IS ALWAYS GREEN- REPUBLICAN CANDIDATES in vent Congress from tackling dif-
the FTC said, including one OFF-THE-CHARTS voter enthusi- LAND: Ambassador Bill Taylor 2018 elections lost support in fuse problems like student loan
where he threatened costly litiga- asm could strain election re- said that his work to release fro- areas most exposed to tariffs debt, says freshman Rep. Katie
tion and introduced the customer sources in 2020. Nearly three- zen security assistance to Ukraine from U.S. trading partners in the Porter. The California Democrat
to company attorneys including quarters of voters say they’re was stymied because top-level midst of the trade war. Worse, says that giving one committee
Creizman. Creizman later com- highly interested in the election, a cabinet officials were too busy they didn’t see electoral gains in jurisdiction over the securitiza-
the 2020 census. from other moderates, partic- Hunter, was a director. Two
Democrats also scored a ularly Mayor Pete Buttigieg months later, in an interview
big victory in Kentucky. In- and Sen. Amy Klobuchar. with Bloomberg, Mr. Lutsenko
cumbent Republican Gov. Whether a party that has said he had no evidence of
Matt Bevin fell narrowly to moved left and features can- wrongdoing by the Bidens.
Democrat Andy Beshear, didates proposing new taxes The meeting, which hasn’t
though Republicans haven’t on rich Americans is ready previously been reported,
conceded defeat. That partic- to embrace a billionaire with shows associates of the U.S.
ularly delighted Democrats a Wall Street resume will be president’s personal lawyer as
because the win came in the an intriguing question. early as February were press- Igor Fruman, shown in New York last month, and Lev Parnas were clients of Rudy Giuliani.
ing the president of Ukraine to
open investigations that could connection with his represen- lion in aid to Ukraine put on munity and by special counsel
benefit Mr. Trump politically in tation of President Trump.” hold. A whistleblower com- Robert Mueller.
EMERGENCY APPEAL exchange for a White House
visit. No White House meeting
Mr. Giuliani has said his ef-
forts in Ukraine were on the
plaint following that phone
call triggered the impeach-
At least four current and
former administration officials
resulted from the discussions. president’s behalf, “done solely ment investigation by House have testified in closed-door
Mr. Poroshenko lost his re- as a defense attorney to defend Democrats, who allege Mr. hearings that they believed
election bid to Volodymyr Zel- my client against false charges.” Trump abused his office by President Trump was using a
ensky, who Mr. Trump in a July Messrs. Parnas and Fruman asking a foreign country for White House meeting with Mr.
call urged to investigate the Bi- were arrested last month on investigations that could have Zelensky, the new Ukrainian
dens, as well as other matters. campaign-finance charges. Both benefited his political for- president, and the aid to
Mr. Poroshenko at the time pleaded not guilty last month. tunes. Mr. Trump has termed Ukraine as leverage to press
was in a tight re-election race After Mr. Zelensky was the call “perfect” and the im- Ukraine to open investigations
and had expressed interest to elected in April but before his peachment investigation a into the Bidens and alleged
aides in visiting Washington. A inauguration, Messrs. Parnas hoax. The aid to Ukraine was 2016 election interference.
visit to the White House could and Fruman held discussions released in September under In February, Mr. Poroshenko
have improved his electoral with Serhii Shefir, a top ad- pressure from Congress. Public was anxious to engage with
chances with Ukrainian voters viser to Mr. Zelensky, about a hearings in the impeachment Mr. Trump as he tried to boost
because it could have en- possible meeting with Mr. Giu- probe begin next week. his poll numbers before the
hanced his stature, and he was liani, according to a statement presidential elections in
open to the idea proposed by Friday by Mr. Shefir. He said Ukraine in the following
Donate today at care.org/cyclonehelp Mr. Giuliani’s associates, one of the new Ukrainian government weeks, another person familiar
the people said. “He wanted to didn’t consider the men to be
Messrs. Parnas and with the matter said. Mr. Po-
Photo: Josh Estey/CARE come to Washington and meet representatives of the U.S. Fruman helped Mr. roshenko was angling for a
with Trump and then after the government and told them he high-profile visit to Washing-
“Our home has been destroyed by the cyclone. state dinner he would have an couldn’t discuss a possible
Giuliani in Ukraine ton in April, the person said,
We lost everything. NOTHING IS LEFT.” — JULIA, 37 interview” with a major news meeting until after the May 20 efforts. which would have been after
outlet, the person said of Mr. inauguration. He said he in- the first round of voting in
Poroshenko. “Then he would formed Mr. Zelensky of the late March, but before the
Since Cyclone Idai slammed southern Africa, more than 2.6 million say he would investigate med- discussions. runoff vote on April 21.
survivors fear further death, destruction from flash floods, and dling in 2016 and the Bidens.” Around that time, Mr. Giu- Hunter Biden served on the “He needed a Hail Mary and
outbreak of disease. Robert Costello, a lawyer liani has said he planned to board of Burisma Group while a state visit in Washington and
for Mr. Giuliani, said his client travel to Kyiv to meet with Mr. the former vice president was was ready to become Trump’s
CARE is in Malawi, Zimbabwe and Mozambique addressing the had no knowledge of the meet- Zelensky to urge him to under- spearheading an international best friend in order to secure
immediate needs of survivors, including emergency food and water, ing. Representatives of Mr. Po- take investigations into the Bi- anticorruption effort in the support,” the person said.
shelter and family kits, and rescue missions.
roshenko and Mr. Lutsenko dens and alleged election in- country, an arrangement Mr. Mr. Poroshenko’s approval
didn’t respond to requests for terference but canceled the Trump and Mr. Giuliani have de- rating sagged, and the ar-
Your emergency gift to CARE will DOUBLE*, sending help to those comment. Lawyers for Messrs. trip after news of it became scribed as corrupt. Both Bidens rangement discussed in the
who have lost everything. Parnas and Fruman declined public, saying on Fox News he have denied any impropriety; February meeting didn’t come
to comment. The White House felt he was being “set up” by Hunter Biden has called serving to fruition, the person said.
didn’t respond to a request for the Ukrainians. on the board given his father’s Mr. Poroshenko finished a dis-
FIGHT for Idai’s survivors. FIGHTWITHCARE ®
comment. Mr. Giuliani told the Jour- role showed “poor judgment.” tant second place in initial
Messrs. Parnas and Fruman nal in September that Mr. Mr. Trump and Mr. Giuliani voting in the March election.
were clients of Mr. Giuliani Trump was aware of his plan and their allies also have He told the Ukrainian Embassy
*All gifts to CARE’s Cyclone Idai emergency fund will be who helped him in his months- to meet Mr. Zelensky. Mr. Giu- pushed a theory, without evi- in Washington to prepare for a
matched starting March 26, 2019, up to $200,000.
long push for investigations in liani’s lawyer declined com- dence, that Ukraine, not Rus- possible U.S. visit before the
A donation to this appeal supports CARE’s emergency
response in southern Africa in the aftermath of Cyclone Ukraine. John Dowd, a former ment on the possible Zelensky sia, meddled in the 2016 elec- April 21 runoff, but an invita-
Idai. At least 70 cents in every dollar donated will directly
support this emergency response in Mozambique, attorney for Messrs. Parnas meeting. tion by hacking Democratic tion never came from the
Zimbabwe and Malawi. Other funds raised will support
CARE’s vital lifesaving work including other emergency
and Fruman, said in a letter to At the time of the July call National Committee servers— White House, the person said.
responses around the world. © 2019 CARE Congress last month that both with Mr. Zelensky, Mr. Trump a theory at odds with analysis —Thomas Grove in Kyiv
men “assisted Mr. Giuliani in had ordered nearly $400 mil- by the U.S. intelligence com- contributed to this article.
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | A5
POLITICS
Bloomberg
Has Eye
The Democrats’ Voting Blocs
Biden, Warren and Sanders built separate coalitions that are propelling their 2020 campaigns
On March BY AARON ZITNER
WORLD NEWS
Militants Turn to Europe’s Courts Iran Says
It Downed
Islamic State widows, of terrorist attacks. Europe is
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THE WALL STREET JOURNAL. * * * * * * Saturday/Sunday, November 9 - 10, 2019 | A7
WORLD NEWS
RODOLFO BUHRER/REUTERS
tistory parking garage early digging up bricks from side-
Monday morning, the govern- walks and building barricades.
ment said, sustaining brain in- Rallies elsewhere also
juries that left him in a coma. turned into confrontations
Around the time of his fall, of- with police later in the night.
ficers were nearby dispersing In some locations, demon-
protesters using tear gas and strators and bystanders
rubber bullets. shouted anti-police invective Former Brazilian President Luiz Inácio Lula da Silva gestures behind a banner reading ‘Lula is innocent’ after being released from jail.
The exact circumstances of and retreated without a fight,
jail in the southern city of Cu- business deals. He has denied his Twitter account that “Bra- tics.
ritiba at 5:45 p.m. local time, the charges. zil no longer accepts the hi- “The people are starving,
greeting well-wishers from his The release was a setback jinks of the bandits” from the unemployed, riding bikes to
Workers’ Party who were for Mr. Bolsonaro’s justice country’s political left. deliver pizzas, without the
camped outside. Speaking on minister, Sergio Moro, who Mr. da Silva’s release gives minimum respect,” he said.
the sidewalk outside the jail, oversaw the Car Wash probe fresh energy to the Workers’ “This country will be much
he raised a fist and showered and convicted the former pres- Party in its opposition to Mr. better when it has a govern-
praise on those who had sup- ident when serving as a lower- Bolsonaro’s administration ment that doesn’t lie so
Protesters Friday at a makeshift memorial for a student who died. ported him. circuit judge. and its plans to win approval much.”
OBITUARIES
in a blog post ad- Eventually, I was
vising climbers on forced to observe
ways to stay con- that I’d undertaken
nected, including this adventure to dis-
buying a local SIM connect from normal
card. life and recharge my- G E R T B OY L E
On the moun- self rather than fret-
1924 — 2019
tain, temperatures ting about whether
can range from au- my tech was juiced
On Columbia Sportswear
batteries and screens. A woman I abandoned my search for a
from Hanover, Germany, on her phone connection. But here’s
way down, advised us to keep why I couldn’t let my iPhone
our phones and other gadgets in die. It was my main camera, my
“the third of the six or so layers alarm clock, my mirror in selfie
you will wear to the top so that mode, my flashlight, my elec-
body heat can keep the battery tronic diary—and as I discov- BY JAMES R. HAGERTY grew less popular, the company began
warm.” ered, my pedometer even with- selling outdoor clothing, including ski-
G
My tech angst increased with out a connection, allowing me ert Boyle took charge of her wear, diversified into manufacturing
the altitude. Accustomed to to track my progress in miles family business, Columbia and changed its name to Columbia
tracking and documenting my walked, steps taken and floors Sportswear, when her husband Sportswear. Gert Boyle designed a fish-
life via social media and apps— climbed. (64.3 miles, 157,631 died of a heart attack in 1970. She had ing vest that became a hit product.
and conditioned to expect con- steps, 883 floors.) been a housewife; her son and top When Neal Boyle died of a heart at-
nectivity everywhere—I was The day we reached base aide, Tim Boyle, was a journalism stu- tack in December 1970, the family
half expecting to tweet, text and camp, elevation 15,180 feet, I dent. They nearly ran the business into house was pledged as collateral for a
talk my way up to the “roof of texted a colleague: “I will try to the ground. $150,000 loan from the Small Business
Africa.” But 4G is spotty at best tweet from the mountain top.” Bankers prodded her to sell the Administration.
on the mountain, and nothing At 1:27 a.m., as we set off for company in the mid-1970s. Ms. Boyle Ms. Boyle and her son learned how
appears to drain a phone’s bat- Uhuru Peak, I dutifully stuffed agreed to negotiate with a potential to fight without wrecking the company.
tery faster than searching for a my phone into the pocket of my buyer. Then she abruptly showed him When he wanted to move production to
signal in the cold. There would fleece vest, the third of five lay- the door when she realized how mea- Asia, she resisted, but he finally pre-
be no Instagramming from Kili- ers, wondering how I would ger the proceeds would be: $1,400. vailed.
manjaro. whip it out to take photos. It The lady, a refugee from Nazi Ger- The idea to use Ms. Boyle in ads
One morning, I saw that 756 wouldn’t matter. For the next many, was no pushover. She and her came from a Portland ad agency, Bor-
messages had come in over- eight hours, I could think of son resolved to turn around Columbia ders Perrin Norrander.
night, but they refused to down- nothing but setting one foot in themselves. Through trial and error, “We asked ourselves one evening,
load. For days, the little red front of the other, as the air they transformed a regional maker of ‘How would you like working for your
bubble listing my unread mes- grew thinner and the snow ski jackets, fishing vests and other out- four-story house with three maids, but mother?’ ” Terry Schneider, a Borders
sages was a circle of hell. An- thicker. Dawn broke; photo op- erwear into a global company with an- her parents decided to flee Germany Perrin art director, told The Wall Street
other morning, at around 12,870 portunities were lost. nual sales of about $3 billion. “as Adolf Hitler’s plans for Jews like Journal in 2005. “It wouldn’t be easy.
feet, I woke up to find our When I finally reached the Ms. Boyle’s feisty image proved to us became clear,” Ms. Boyle wrote in We started thinking about presenting
guides and porters chatting on top, my guide offered to take a be Columbia’s crown jewel. her book, “One Tough Mother.” Rela- Mrs. Boyle as one tough mother—over-
F
their cellphones. A cell tower photo to record my triumph. My Starting in 1984, Columbia’s ads began tives in the U.S. helped arrange a protective, but making sure that the
was visible in the distance. phone still worked, but I forgot depicting her as a “tough mother,” or, as move to Portland, Ore., in 1937, when clothes would protect you.”
When I turned off airplane to check for a signal, let alone she put it in her 2005 memoir, a “cranky Gert was 13. Her maternal grand- After initial doubts, she relished the
mode, the first message that tweet from the peak, before it and crotchety old broad” who made sure mother stayed in Germany and died in tough-gal act. She became so famous
came through was a work-re- was time to go back down. customers were getting good value. a concentration camp. that the singer Jimmy Buffett insisted on
The ads made an obscure brand fa- meeting her when he performed in Port-
H
mous. In one, she displayed a bicep er father borrowed money from land. She gave him a Columbia jacket.
tattoo reading “Born to Nag.” Another his mother to buy Rosenfeld Hat Ms. Boyle, whose survivors include
In Memoriam described her as “obsessive, anal, fa-
natical. And that’s on a good day.” A
Co., a wholesaler of men’s hats.
Thinking Americans might dislike a for-
three children and five grandchildren,
used her wealth and fame to support
third advised: “If you want something eign-sounding name, he searched the the Special Olympics and donated more
that mellows with age, drink wine.” phone book for ideas and settled on than $100 million for cancer research
Ms. Boyle was still chairman (she re- Columbia Hat Co. at Oregon Health & Science University.
jected the term “chairwoman”) and the On a whim, Gert chose to enroll at She nixed the idea of having a build-
IN leathery face of the brand when she
died Sunday at age 95. On Monday, the
the University of Arizona in Tucson,
where she earned a degree in sociol-
ing named after her. “If I’m going to
have my name on any cement,” she
MEMORIAM
company named Tim Boyle acting ogy. At a fraternity party, where she said, “I’ll probably be under it.” In-
chairman. He remains chief executive. confessed she had drunk so much that stead, the university named a research
The accidental executive was born she had trouble standing up, she met building after her older sister, Hilde-
Gertrude Lamfrom, the middle of three her future husband, Neal Boyle, an gard Lamfrom, a noted molecular biol-
daughters, on March 6, 1924, in Augs- Irish Catholic. They married in 1948. ogist who died in 1984.
burg, Germany. Her father, Paul Lam- Mr. Boyle went to work for Columbia
from, owned a shirt factory. Hat and became head of the business Read a collection of in-depth profiles at
The family lived comfortably in a in 1964, when her father died. As hats WSJ.com/Obituaries
W S
&) 0 # % 2%
#" $&0 &$ ( # hen Dennis Picard within 10 days two major herwin-Williams Co. the takeover threat dissolved.
"& "$ &$ ( Honor your loved became chief exec- acquisitions, landing the de- slipped into the red in He swiftly hired new tal-
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one’s life in The Wall utive of Raytheon fense operations of Hughes 1978 and stopped pay- ent, replacing about half the
' )" (()" ( &( Street Journal Co. in 1991, the maker of Pa- Electronics Corp. and Texas ing dividends for the first top 110 executives in the
' $ 2' ' #"4 ! triot missile-defense sys- Instruments Inc. for a total time in 93 years. The Cleve- first year, while setting up
$ " 56 60 tems and other military gear of nearly $13 billion. land-based paint maker, better incentive-pay plans,
'" 7$"%
, ' !" &" Share your loved was laying off workers. The Raytheon gained another struggling to compete with improving cash management
# () 1&#) 7$"% one’s story with an end of the Persian Gulf War 22 years of independence. It discounters, was paying and reducing debt. He ex-
" * ,) # () and the collapse of the So- now is preparing to merge heavy costs to close its creak- panded and smartened up
7$"% ( 1& 5#& announcement in the
viet Union pointed to a drop with United Technologies iest factories. The chief exec- the chain of Sherwin-Wil-
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$ 52
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' 8' 9 6#2&: $" ( national or regional buying a big engineering- Mr. Picard, who died Oct. job is no longer any fun.” idend payments in 1979 and
" '&0) 0&% #
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"%;" )" "0 $ &" notices provide a dignified dependence on the military. of his less-noticed feats, the 21-year reign of Jack 21 consecutive years, despite
'" *("" )#" )# He and his colleagues kicked such as catching a bluefin Breen, recruited from Gould the failure of a diversification
7$"% &) 5 )) way for friends, family and around the idea of selling tuna off New England in the Inc. and installed as CEO in into drugstores. When Mr.
( *&&0 " colleagues to pay tribute.
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WSJ.com/InMemoriam bled down on it. tail preserved and mounted who had acquired a 13.5% Mr. Breen died Oct. 28 at
$) < &# ( In early January 1997, on a wall at his home in stake. Mr. Breen negotiated age 85. He had been under
(&'" (" )% ) % © 2019 Dow Jones & Company, Inc.
All Rights Reserved. outmaneuvering rival bid- Harwich, Mass. an agreement to buy back the treatment for a brain tumor.
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ders, Mr. Picard announced —James R. Hagerty shares for $21 million, and —James R. Hagerty
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | A9
SPORTS
T
out Being Eaten Alive.” the Twin Cities. People are just a lit- Big Ten coach of the year for mus- long it’s taken them to get there.”
he Minnesota Golden Go- “The hiring process at the Univer- tle bit disappointed by some of tering an 8-4 record in 1999, recalled The combination of new facilities
phers football team is sity of Minnesota has been very, those types of teams and they’re recruits missing visits due to snow- and Fleck has been irresistible—or
8-0. If that’s a foreign very consistent: They’ve done every- hesitant to jump on the band- storms and assistant coaches leaving at least less resistible—to recruits.
phrase, it’s because the thing wrong for basically 60 years,” wagon.” for higher salaries at Louisville and Quarterback Tanner Morgan com-
last time it happened Mackay said. The reluctance is evident in the East Carolina. mitted to play for Fleck at Western
was before Pearl Harbor. But Mackay, who helped land Lou ticket sales at TCF Bank Stadium. On For nearly three decades the Go- Michigan then, after Fleck took the
But 10 weeks into the 2019 sea- Holtz as Minnesota coach for two Thursday, it was possible to get doz- phers played in the 1982-vintage Minnesota job, followed him there.
son, AP-ranked No. 13 Minnesota is seasons in the 1980s before Holtz ens of tickets for as little as $85. Metrodome, whose roof resembled The first time Morgan set foot in the
one of the seven remaining un- bolted to Notre Dame, is sold on the That may be because of sagging at- mutant marshmallows oozing from a state was when he enrolled.
beaten schools. On Saturday the Go- creative leadership of Fleck—not tendance nationwide, or because of s’more. It sat off campus in down- Fleck also signed four-star recruit
phers host undefeated, fifth-ranked least because he led lowly Western the forecast: snow and highs in the town Minneapolis and hosted more Rashod Bateman, the No. 29 wide
Penn State in what is perhaps the Michigan to a 13-1 record in 2016. mid-30s. A school spokesman said events than the Summer Olympics. receiver in the class of 2018 from
program’s most important game in “I’ve told every friend that I have Thursday evening that the game had “When you got there, it didn’t Tifton, Ga.--not exactly prime re-
the last half-century. that he is unequivocally, without a sold out. look like a football field,” recalled cruiting territory for the Gophers.
Minnesota, which claims seven doubt, a Hall of Fame coach,” Mac- The last time Minnesota played in Mason of taking recruits to see the “P.J. Fleck has done a great job
national titles, has chronically un- kay said. the Rose Bowl was January 1962, dome. “There was always a monster- recruiting players out-state,” said
derachieved since its last one in Yet some people have been slow and even then the Gophers were the truck deal or snowmobile races.” Sid Hartman, longtime sports col-
1960. The Gophers haven’t won a Big to warm to the team’s hot start, conference’s second-place team. Tired of languishing, Minnesota’s umnist for the Star Tribune of Min-
Ten Conference title in 52 years and which has been boosted by a downy- (The faculty at first-place Ohio State powers-that-be secured more than neapolis. The 99-year-old, who still
have gone through coaches faster soft nonconference schedule and voted against a bowl trip by coach $100 million in public funds and in writes three columns a week, notes
than Sweet Martha’s cookies at the wins over Rutgers, Purdue and a Woody Hayes’ team, viewing it as 2009 opened the $300 million red- a sharp change from the Gophers’
Minnesota State Fair. struggling Nebraska. Gophers fans disruptive to the school’s academics. brick-and-stone TCF Bank Stadium mostly-Minnesotan national-champi-
Enter P.J. Fleck, the third-year, have been optimistic before, only to Wonder whatever happened to the on campus. A $166 million athletes’ onship teams of 1940 and ‘41.
38-year-old coach who sprints the be crying into their maroon-and- Buckeyes?) Since that game in Pasa- village opened last year with nearly Fleck has become so popular in
sideline before games and takes a gold overalls by Halloween. dena 57 years ago, all nine of the 340,000 square feet of space for the state that its politicians are co-
flying leap into a mosh pit of players “I didn’t think (an 8-0 record) other longstanding members of the training, tutoring, fueling and treat- opting his slogan.
in the locker room after them. was going to happen just because of Big Ten have made the trip. ing athletes. “We’ve had some heartbreakers
Fleck’s frenetic energy and never- past history of the team,” said Dar- For half a century the Gophers’ “I didn’t understand how Iowa in the past, but this is our year,”
give-up “row the boat” rallying cry rell Thompson, a record-setting run- strategic mistakes, an ill-fitting sta- and Wisconsin could win but not wrote U.S. Senator and Democratic
at first were viewed skeptically by a ning back for the Gophers in the late dium and neglect of training facili- Minnesota,” said Holtz, citing the presidential candidate Amy Klobu-
weary fan base, said Harvey Mackay, ‘80s who does radio color commen- ties combined in a wintry mix of school’s proximity to nightlife and char in an email to The Wall Street
a businessman and longtime Go- tary for Minnesota football games. mediocrity. the state’s 17 Fortune 500 compa- Journal. She added: “Row the Boat.”
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
Edmonton
d t 0s <0
A Wild Scramble for the Cup
10s 0s
Vancouver
V Calgary
C l ary BY LAINE HIGGINS
40s 10s
Winnipeg
20s
Seattle 20s
30s MAJOR LEAGUE SOCCER
JON ENDOW/IMAGE OF SPORTS/NEWSCOM/ZUMA PRESS
Portland
P tl d
Por 30s
40s Helena
l 30s Ottawa
Montreal gave its playoff structure a
50s Billings
Bismarckk
Augusta
A g t 40s radical overhaul this year
Eugene Boise 40s
Mpls./St.
p / . Paul
pls Toronto
T t Ab
Albany Boston 50s hoping to propel its best
Pierre Sioux
oux FFalls
ll Buffalo
ff l 60s teams into the annual MLS
70s 40s P Milwaukeek Detroit
t Hartford
artford
Chicago
Ch g
Chic Cleveland
Clevel d
Cl 70s Cup final. But heading into
80s Reno Salt Lake
La
Lake
e City
Cit
C y Des
es Moines New
ew York
Cheyenne
y Omaha
h 40s 80s Sunday’s 2019 championship,
Sacramento Indianapolis
di p Pittsburgh
g Philadelphia
Phil
hil d lph
h hi
Denver Springfield
p g
Washington
gton D.C.
hington DC 90s the outcome of the big
Sann Francisco
i Kansas
Colorado
C l d Topeka
Topek
Cityy
Charleston
Charles
Richmond
h d 100+
change is more of the same.
Las Springs
p St.. Louis
L
Lou
Vegas 70s Wichita
hit Louisville
L
Lou ill
Raleigh
l igh
h
Seattle Sounders FC, the
Nashville
h ill
Los A
Angeles
Ange Charlotte
C h l tt No. 2 seed in the MLS West-
Santaa FFe Memphis hi
90s Phoenix
Ph Albuquerque
Alb q q Oklahoma
kl ma City 50s Columbia
C b ern Conference, will host To-
San Diego Atlanta
Atl t Warm Rain
80s TTucson
c
LLittlee Rockk
Birmingham
gh
ronto FC, the No. 4 team from
El Paso Dallas
D ll Jackson
Jack
Ft. Worth Cold T-storms the Eastern Conference. The
70s Mobile
bil Jacksonville two No. 1 seeds, New York
0s-0s 60s Austin
A ti Stationary
Houston
t Orlando
l d Snow City FC and Los Angeles Foot- Seattle players celebrates during the Western Conference final.
New
ew Orleans
10s 80s San
an Antonio Tampa 70s ball Club, have been sent
20s Anchorage
A h g Honolulu Miami Showers Flurries home–a common outcome in months of October, November have one-off playoff games
30s 80s
70s years past the league was try- and December criss-crossing you have a real urgency to
40s Ice
ing to fix with its revamp. the country. Players com- win games and host the play-
MLS made the change last plained that the travel was off games.”
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W winter to fix what critics per- exhausting and unnecessary, This season, things were
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Omaha 61 36 s 41 17 c Frankfurt 47 33 pc 46 32 pc ceived as a broken playoff as it hurt teams that com- going smoothly until the
Orlando 77 60 sh 81 62 pc Geneva 48 34 sh 45 33 sf system that did not confer piled the best records in the semifinals, when both lower
Today Tomorrow Philadelphia 43 35 pc 56 42 pc Havana 84 69 pc 83 67 pc
City Hi Lo W Hi Lo W Phoenix 87 64 pc 86 60 pc Hong Kong 78 68 s 79 70 s home-field advantage to the regular season as much as seeded teams pulled off wins.
Anchorage 38 32 pc 37 31 pc Pittsburgh 42 32 pc 50 40 c Istanbul 71 59 s 72 59 pc higher seeded team. It teams that barely sneaked Toronto defeated No. 2 seed
Atlanta 55 39 s 65 44 s Portland, Maine 40 28 pc 48 34 pc Jakarta 94 76 pc 93 76 t dumped the European model into the playoffs. This year, Atlanta United 2-1 and the No.
Austin 71 43 s 76 58 pc Portland, Ore. 58 47 c 61 47 pc Jerusalem 74 62 s 76 59 c
Baltimore 47 32 s 58 42 pc Sacramento 79 44 s 77 44 s Johannesburg 81 57 pc 74 60 pc of playoff rounds that consist only underdogs hit the road. 2 Seattle Sounders FC top-
Boise 58 38 pc 61 34 pc St. Louis 58 44 s 55 34 pc London 45 41 r 49 38 pc of two matches, home and For playoff games between pled the top seeded Los Ange-
Boston 43 35 s 53 41 pc Salt Lake City 62 36 s 61 39 s Madrid 54 40 sh 53 38 sh away, decided by aggregate 2003, the first year MLS ad- les FC 3-1.
Burlington 39 28 pc 45 29 c San Francisco 65 49 s 65 51 s Manila 90 77 sh 88 77 sh
Charlotte 53 31 s 64 39 s Santa Fe 63 29 s 64 29 pc Melbourne 56 51 c 65 50 c score. In its place is a straight opted the European format, Had those semifinal games
Chicago 46 33 pc 43 26 c Seattle 56 49 r 58 46 c Mexico City 72 51 pc 73 53 pc single-elimination bracket, and 2018, the higher-seeded gone the other way, MLS’s
Cleveland 44 36 pc 51 37 c Sioux Falls 51 26 pc 30 11 sn Milan 55 40 c 52 42 c which also had the effect of team advanced out of the new playoff format would
Dallas 67 46 s 72 55 pc Wash., D.C. 48 37 s 59 43 pc Moscow 41 39 c 48 43 c
Denver 70 37 s 60 22 pc Mumbai 88 78 pc 90 78 pc shortening the season by over conference semifinals 58% of have produced just the 8th
a month because there are the time, according to Stats MLS Cup in 17 years to fea-
Detroit
Honolulu
41 34 pc 46 29 c
86 72 pc 86 73 pc
International Paris
Rio de Janeiro
49
82
39 pc
74 c
47 36 sh
83 74 sh half as many playoff games. LLC. The conference finals ture a top seed. The last time
Houston 66 47 s 74 58 pc Today Tomorrow Riyadh 93 68 pc 88 67 s
Indianapolis 46 34 pc 50 35 c City Hi Lo W Hi Lo W Rome 64 46 sh 64 54 sh
MLS said the truncated brought more volatility, with the league championship was
Kansas City 63 39 s 53 27 s Amsterdam 50 35 pc 49 38 pc San Juan 88 76 pc 88 76 pc season would allow teams to higher-seeded teams winning played between two No. 1
Las Vegas 78 49 s 77 52 s Athens 72 63 pc 72 58 sh Seoul 61 39 pc 60 46 r capitalize on the warmer Oc- just 36% of matchups. seeded teams was 2003, its
Little Rock 58 39 s 68 48 s Baghdad 85 55 s 85 56 s Shanghai 68 50 pc 73 53 pc
Los Angeles 88 58 s 82 56 s Bangkok 89 70 pc 89 71 pc Singapore 89 77 pc 89 78 c
tober weather and avoid a “Traditionally the regular first year of existence.
Miami 82 73 t 83 73 pc Beijing 60 45 c 62 42 pc Sydney 67 58 pc 73 57 pc scheduling conflict with the season, it lacked a little This year’s championship
Milwaukee 43 32 pc 40 24 c Berlin 45 34 r 46 34 pc Taipei City 75 64 c 80 62 s upcoming 2022 World Cup, oomph going into the end of is familiar for another reason,
Minneapolis 42 25 pc 32 14 sf Brussels 47 33 pc 47 33 pc Tokyo 63 52 pc 63 54 s
Nashville 56 37 s 66 44 s Buenos Aires 72 65 pc 73 62 pc Toronto 39 34 c 43 29 c
which begins on Nov. 21 of the year,” said Taylor Twell- too: It’s the third time in four
New Orleans 64 51 s 71 59 s Dubai 92 77 s 86 74 t Vancouver 51 44 r 52 40 pc that year in Qatar. man, a former MLS All Star years that Toronto and Seat-
New York City 42 38 pc 52 43 pc Dublin 46 37 r 45 37 pc Warsaw 53 40 sh 46 35 r Under the previous format, who now calls games on tle have faced off with the
Oklahoma City 69 45 s 70 38 pc Edinburgh 43 29 pc 42 35 pc Zurich 46 29 sh 43 31 pc
playoff teams spent the ESPN. “But now when you MLS Cup on the line.
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | A11
OPINION
THE WEEKEND INTERVIEW with Lam Wing-kee and Daxiong Guo | By Jillian Kay Melchior
Cantonese. Three years later at the to a prison near Ningbo, hun- is not Darwinian.”
Shenzhen precinct, Mr. Lam recog- dreds of miles from home. “If you have no culture,
nized the officer and observed that They locked him in a sparse you have no future,” he con-
his manner seemed transformed. cell, constantly illuminated to make nism wouldn’t guarantee a free ing adherents. Mr. Guo knew Falun tinues, “but in culture, you have
“He already became like a Red it hard to sleep, and dressed him in China: “If the culture problem isn’t Gong was harmless—his own good culture and bad culture.” Mr.
Guard,” Mr. Lam recalls. He “would a reflective uniform to prevent a fixed, one after one, [governments] mother practiced it and he had Guo says affluent Chinese born in
bang on the table and scream, say, nighttime escape. They threatened are all the same.” read its books. One day he inter- the 1970s and ’80s often recognize
‘You are antigovernment!’ ” not to feed him unless he signed a The demand for banned books, vened when he saw police rough- the cultural deficiencies of the
Mr. Lam’s ordeal had only begun. waiver of his right to contact an at- like the demand for classical callig- ing up an elderly Falun Gong ad- Communist Party. But he worries
His interrogators later “asked why I torney or his family. “Don’t say I’m raphy, “means there is a cultural di- herent in the street. They arrested about the poor and the young. The
brought those books,” he says. “Ac- brave,” Mr. Lam says. “I actually vide that exists,” Mr. Lam says. He Mr. Guo. aggrieved poor could turn back to
tually, I told them, ‘It is very sim- have no guts. I need to cooperate points again to history, noting that He spent five days in jail before Maoism, and young Chinese are
ple: to make money.’ ” That doesn’t with them” to survive. in the early 1980s China was in- his editor found him and secured easily distracted. When they’re not
tell the whole story. Mr. Lam, 63, is Jailers questioned him for hours creasingly “open, and being open his release, but his newspaper ca- studying or working, they’re con-
soft-spoken and often grim, but his each day, asking about his child- brings freedom of thought.” The reer was over. Short on cash and sumed by videogames and movies.
voice becomes joyous when he hood, his family and the bookstore. loosening of strictures on thought long on time, Mr. Guo began to Those stories could help liberate
says, “I love reading." In his early A month in, they surprised him led to demands for political free- draw, submitting a collection of the minds of Chinese youth, but Mr.
20s, he devoured the works of Jack with detailed data about mainland dom, but the government answered sketches called “Chinese Ghost Sto- Guo sees a disheartening conflu-
London and Ernest Hemingway but clients taken from the bookstore’s in 1989 with the slaughter at Ti- ries” to a 2000 competition in ence between Beijing and much of
had trouble holding down a job. He computer. They extracted and vid- ananmen Square. It has severely re- Shanghai. He won. Eventually his the Western entertainment indus-
liked reading better than working. eotaped a confession to selling ille- stricted the flow of information work attracted attention beyond try: “Hollywood doesn’t care about
gal books and subverting state au- ever since, especially since Xi Jin- China. In 2005 he became the first culture, Hollywood cares about
thority. ping took power. Chinese artist to win a prize at the money.”
A Hong Kong bookseller
C
They dangled the possibility of Contraband ideas slip through, prestigious Angoulême Interna-
release, then snatched it away. but the government has made their tional Comics Festival in France, ommunist officials are aware
and a mainland artist both “They don’t have to torture you consumption more difficult and and in 2007 he debuted at San Di- that citizens yearn for mean-
endured arrest and now physically,” he says. “This is more dangerous. That’s probably enough, ego Comic-Con. ing. They appeal to patriotism
awful. They give you hope and then Mr. Lam suggests. Suppose “there His art was growing more indi- and “try to construct a Chinese
live in exile, but they take away, then threaten you that are 50 million people against Xi vidualistic—and more political. He model of heroism” in which protag-
disagree on the prospects you will forever be locked in this Jinping and communism—it sounds illustrated a book called “Nine onists “will sacrifice their life to
place, will never be released.” like a lot, doesn’t it?” But China is Commentaries on the Communist save the Chinese nation.” As an al-
for democratic reform. Evidently Mr. Lam’s captors a country of 1.39 billion, the Com- Party.” It details the Chinese gov- ternative, Mr. Guo’s art depicts cou-
thought they’d achieved his sub- munist Party has nearly 90 million ernment’s “propaganda, persecu- rageous Hong Kong protesters who
mission. In June 2016 they sent members, and many in the enlight- tion, famine, massacre, tyranny, are willing to sacrifice themselves
He solved the problem in 1994 him back to Hong Kong, where they ened minority believe “if you fight and censorship over half a cen- “for the freedom of your nation,
by opening a bookstore. Located in ordered him to dispute his own back, they would lock you up.” So tury,” in the words of its publisher, not for government.” His message:
touristy Causeway Bay, it attracted missing-persons report. They also Mr. Lam predicts China will remain the Epoch Times, a New York-based It “doesn’t matter how strong you
mainland Chinese on holiday as instructed him to retrieve the “a very closed country. I didn’t see newspaper founded by Falun Gong are, how rich you are, how super
well as Hong Kong residents. Mr. bookstore’s computer, perhaps in that there can be freedom and hu- practitioners. normal you are, even if you are
Lam watched as mainlanders hope of verifying the data they had man rights.” Chinese authorities harassed very weak, very little.” If “you are
snatched up lowbrow fiction imag- already acquired, and to bring it i i i and followed Mr. Guo for years but not afraid to stand with justice, you
D
ining the sex lives and scandals of back to the mainland. Instead, he New York didn’t arrest him until 2008, before are the hero.”
Chinese Communist Party lead- held a news conference in Hong axiong Guo, 43, takes a the Summer Olympics in Beijing. Protesters in Hong Kong often
ers. In Hong Kong, Mr. Lam says, Kong and told the world of his cheerier view. The mainland His jailers kept him in “a very carry posters bearing his artwork,
“we all know these are fake. We eight-month ordeal. “It can happen native and comic-book artist small room, very quiet” and de- and he believes it can help over-
don’t read them.” But mainlanders to you, too,” he warned. drew the most iconic of the Hong prived him of sleep. “You’re very, come Chinese skepticism. “If you
craved anything that deviated from Fearing for his safety, Mr. Lam Kong protest movement’s art. Once very sleepy,” he says, but he’d get go to mainland Chinese people and
the party line. “I let them read,” he fled to Taipei in April 2019 after a purveyor of subversive literature “maybe two minutes, maybe five say, ‘Look what China is doing in
says. “Then they will realize there the introduction of the extradition like Mr. Lam, he also spent time in minutes” before they awakened Hong Kong,’ they’ll say, ‘I com-
is nothing good about those books, bill that sparked the current crisis a Chinese prison but reached the him. After three months, he posted pletely disagree,’ and blow up into
their reading level will increase, in Hong Kong. He urges today’s opposite conclusions about China’s bail of about $14,000. The authori- a fight. But if you show them with
and I will recommend some better protesters to do the same. Yet Mr. fate: “I can see the future. It’s very ties froze his bank account and art, then they’ll think about that
books.” Lam says he would have smuggled good.” kept him under intense surveil- and it may make a difference in
Along with bodice-rippers, he books even if he had foreknown his Born in the northern province of lance, but he escaped to Hong Kong changing their minds.”
sold Tiananmen Square histories fate. “This is what I can do,” he Jilin, Mr. Guo was indoctrinated in with help from friends. He now “The Chinese government has
and nonfiction accounts of Commu- says. “Of course I can’t change any- childhood that the Communist splits his time between New York two weapons—one is lies, one is vi-
nist Party power struggles. Some thing by myself, but there is a hope Party “loved me, that there was and Toronto. olence,” Mr. Guo says. “So if you
clients sought ancient poems that if everyone does it. I do first. I only one truth, that communism Unlike Mr. Lam, Mr. Guo thinks fight with the Chinese government
weren’t banned in the mainland don’t care about the result.” was the one way.” In his early 20s traditional Chinese culture is com- with violence, you will be losers.
but printed exclusively in the sim- The despair Mr. Lam learned in he went to work as a reporter and patible with respect for human You must use the truth, and they
plified Chinese characters the Com- the mainland rubs through as he artist at a state-run newspaper. rights and the rule of law—and he will be weak.”
munists favor. Customers wanted talks about the political future of That made him aware of how much points to Taiwan and Hong Kong to He adds: “Art is a gift that God
traditional calligraphy, understand- China, where “the country is the the government distorts the truth. prove it. He notes it took centuries has given to us to solve problems
ing “the structure of Chinese char- most important thing, and the indi- In April 1999, thousands of Fa- for Western nations to enshrine in a merciful way.” On that at least,
acter matters, the beauty of the vidual is not important at all.” In lun Gong practitioners peacefully these values in their political sys- he and Mr. Lam ought to be able to
character.” his view those priorities long pre- assembled in Beijing, catching offi- tems. For China to do the same, he agree.
Some of Mr. Lam’s mainland cli- date Mao Zedong and produced cials by surprise. Authorities re- says, it must undergo a cultural
ents wanted to keep buying books “thousands of years of despotism.” sponded by declaring the spiritual “rebirth.” Ms. Melchior is an editorial page
even after they returned home Thus even a collapse of commu- practice an “evil cult” and arrest- Maoism did significant harm to writer at the Journal.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
The Water’s Fine, Mr. Bloomberg The Impeachment Inquiry Becomes Reality TV
T
he news that Michael Bloomberg might ingly detached from the private economy and Kimberley Strassel argues that Sedition Acts. Abraham Lincoln wasn’t
compete for the Democratic presiden- wealth creation. Progressives resent his wealth Democrats’ refusal to open up the im- impeached for suspending habeas cor-
peachment process and potentially pus during the Civil War. Franklin
tial nomination is causing consternation more than see it as a sign of ability.
gain Republican votes gave the GOP a Roosevelt wasn’t impeached for incar-
on the political left. But that’s Mr. Bloomberg also clashed powerful case against the proceedings cerating tens of thousands of Japa-
all the more reason to wel- The former New York with the teachers unions by (“A Partisan Impeachment Vote,” Po- nese-American citizens. Bill Clinton
come his candidacy to chal- mayor could be a strong promoting charter schools tomac Watch, Nov. 1). Your same-day wasn’t removed from office for lying
lenge a vulnerable President and teacher accountability in editorial “Defining Impeachment under oath about Monica Lewinsky.
Trump next year. Democratic nominee. New York. And his stellar re- Down” points out that the Democrats’ President Trump is at least saying ex-
“Memo to Bloomberg: cord in reducing crime, in- impeachment resolution “essentially actly what happened—he released the
Democratic Voters Don’t Want cluding support for such poli- keeps Intelligence Chairman Adam transcript and admitted to having the
More Candidates” blared a headline Thursday cies as stop-and-frisk, isn’t popular with the Schiff in charge and able to continue conversation.
night on the left-wing Huffington Post urging social-justice left. his secret hearings as long as he And Ms. Noonan appears to want
the former New York Mayor to stay out. The On the other hand, Mr. Bloomberg is no con- wants.” You suspect that Speaker President Trump removed because he
Nancy Pelosi knows that a partisan said to Ukraine: Hey, before the U.S.
piece was the first we saw of what will be many servative. He is a down-the-line cultural liberal,
process will go nowhere in the Senate gives you a couple hundred million
lecturing Democratic voters that they should be he has become the leading national financier for and is unlikely to change the minds of dollars, I want to know what the heck
happy with their field and don’t need a billion- candidates who support gun control, and he is swing voters, but she may not care as was going on with the Democratic
aire. But if that’s true, then the party’s progres- a zealot on climate change who would regulate long as she brands Mr. Trump with a Party and Joe and Hunter Biden and
sives have nothing to worry about. coal out of business (we’re not sure about natu- scarlet I and an appreciative Demo- the 2016 election?
The truth they don’t want to admit is that ral gas). None of these would be obstacles in the cratic base gets even more charged up If that is a high crimes and misde-
the Democrats now leading in the primary polls Democratic primaries. for next year’s showdown. meanor, then probably every president
have major vulnerabilities. Bernie Sanders and The main reason to welcome Mr. Bloomberg Democrats are making a cold politi- we’ve ever had, if we dug hard
Elizabeth Warren want to blow up American into the race is to shake up what has become cal calculation in moving ahead with a enough, could have been impeached
capitalism and replace it with their top-down, a stagnant Democratic contest and give voters rigged process, but the general media for some “impropriety” or “political
socialist designs. Their agenda might scare sub- another choice. He has the money to educate blessing of the secretive, biased exer- dealing.”
cise is inexcusable. Apparently the We are in dangerous territory here,
urban voters more than four more years of Mr. the public about the folly of Medicare for All whistleblower’s identity is a poorly and the constitutional danger isn’t
Trump does. and other progressive dreams. Though at age kept secret, yet journalists suddenly Donald Trump. The danger is using
Joe Biden often stumbles with his words on 77 he’s a generational peer of Mr. Biden and are acting to protect the hero. It could impeachment as a political weapon to
the stump and can’t escape the Ukraine imbro- would compete for some of the same voters, Mr. turn out that the whistleblower de- overturn duly elected political figures.
glio if impeachment goes to a Senate trial. He’s Bloomberg appears more vigorous. serves even less credibility than did RICHARD TATEM
also low on money. Pete Buttigieg is a glib and As is his habit, Mr. Trump dismissed Mr. ex-MI6 agent Christopher Steele and Tampa, Fla.
clever 37-year-old, but his only political experi- Bloomberg’s chances on Friday, saying “there’s his dossier alleging Trump-Russia col-
ence is as the mediocre mayor of a small and nobody I’d rather run against than Little Mi- lusion, but few in the media seem I am puzzled by Ms. Noonan’s hypo-
struggling city. Kamala Harris has been exposed chael.” But behind that familiar bluster, Mr. keen on finding out. thetical question to former National
as unprepared for the national stage and is run- Trump knows (or should know) that he is in real A sham impeachment process has Security Director John Bolton: “After
little downside for Democrats as long all you’ve seen, is it good for America
ning on her identity far more than ideas. Others danger of losing re-election.
as the press runs point. Maybe an un- that Donald Trump is president? Tell
like Amy Klobuchar have appeal as potential Mr. Trump has never expanded his support impeachable witness will come for- us about what you’ve observed about
Presidents, but they haven’t shown they can at- beyond his base and by conventional measures ward with a disclosure that dooms the nature and mind and character of
tract a large primary following. for an incumbent he is the underdog. His aver- President Trump. If not, impeachment Donald Trump.”
No wonder Mr. Bloomberg thinks he might age job approval is under 44% and millions of keeps the Trump administration What relevance would the opinion
have a chance. As three-term mayor of New swing voters want an alternative who looks like bogged down and dominates the news of anyone, irrespective of their posi-
York, he has more executive experience than a stable, safe choice. They’d also like a Demo- cycle. If even one Republican senator tion, to questions such as these have
anyone of the field. As a successful entrepre- cratic nominee who doesn’t want to hand over votes for conviction, the story will be in establishing the commission of
neur, he understands the private economy bet- another 10% or 20% of the private economy to that a bipartisan vote just couldn’t at- “high crimes and misdemeanors” by
ter than any candidate other than John Delaney, the federal government. tract enough GOP obstructionists. the president?
also a former CEO. Those would both be signifi- Mr. Bloomberg’s views and background are RAY GORDON TED MULLINS
Durham, N.C. Perkasie, Pa.
cant campaign assets against Mr. Trump in a heterodox enough that as President he might
general election. even be able to break up some of the calcified To respond to your editorial state- Ms. Noonan, why advocate im-
His bigger challenge would be getting the status quo. The primaries would test if Mr. ment that this should “all be left to the peachment and deprive all your
Democratic nomination. Success in business is Bloomberg could be that candidate, which may judgment of American voters in 2020”: friends, relatives and readers of decid-
a liability on the Democratic left that is increas- be what Mr. Trump really fears. Voters don’t have subpoena powers or ing whether or not to vote for Donald
the power to compel true testimony on Trump next November?
pain of perjury. Only Congress con- To nail down your case, you ask,
California’s Board Diversity Tax ducting an impeachment inquiry has
the tools to expose wrongdoing.
wouldn’t our esteem for FDR be
much less if we found out that in the
D
emocrats in California work hard to doing so could erode board expertise and expe- While the public record so far may election year 1940 he made a deal to
punish businesses and sometimes they rience. Hence, the researchers found, most not establish a definite case for im- give aid to Britain so long as Winston
peachment, neither did the public re- Churchill agreed to do him a political
succeed without trying. Consider a firms have instead expanded their boards by cord at the start of the Richard Nixon favor—in this case, calling the con-
2018 law that imposes gender adding a woman. They esti- impeachment inquiry. Had Nixon faced troversial aid a “loan”? Well, guess
quotas for boards of public A study finds that a mate that the median firm another election, could voters have what?
companies based in the state,
which a new study finds effec-
director mandate cost needing to add two female di-
rectors by 2021 will have to
properly judged him without the JON FOX
“smoking gun tape” the inquiry un- Linwood, N.J.
tively destroyed $60 billion in companies $60 billion. spend an additional $345,636 earthed?
wealth over night. on salaries and travel. ILYA SHLYAKHTER It’s about time that Adam Schiff
Last September the state This cost is trivial for large Allston, Mass. moved the impeachment inquiry out
enacted a law requiring all public companies corporations, but the cost makes up 0.76% of of the secret room in the Capitol to a
headquartered in California to have at least the market capitalization and 13.2% of sales Regarding Peggy Noonan’s “Im- more appropriate venue. How about
peachment Is Getting Real” (Declara- Salem, Mass.?
one female director by the end of 2019 and two for the smallest 10% of firms. Younger compa-
tions, Nov. 2): John Adams wasn’t im- SAL COVIELLO
by the end of 2021. Democrats claimed that in- nies are also disproportionately affected by peached for signing the Alien and Surprise, Ariz.
creasing board diversity would benefit corpo- the mandate, as are those in industries with
rations. Investors supposedly needed politi- fewer potential female candidates like engi-
cians to tell them what was in their best neering. For many firms, the financial penal-
financial interest. ties for noncompliance could outweigh the
Economists at Clemson University tested costs of compliance.
Appeasement Helped Hitler, but the RAF, Too
this hypothesis by examining the effects of the The economists say this explains why they Perhaps the greatest contribution to the outbreak of war, Spitfires and
law on public companies in California and how found that stock market returns of affected of “Appeasement” by Tim Bouverie, Hurricanes continued to roll off the
their shareholders reacted vis-a-vis those of firms declined on average 1.2% relative to other as reviewed by Andrew Roberts assembly lines, hundreds more pilots
companies in other states. About 28% of the companies the day after former Gov. Jerry (Books, Nov. 2), is the refutation of were trained and the radar net
the last argument of the lonely few around southern England was
602 public firms headquartered in California Brown signed the law, resulting in a wealth loss
who still defend the Munich Agree- brought to peak efficiency, along
needed to add a woman by the end of this year of over $60 billion. The strong negative market ment of 1938—that selling out Czech with the observer corps that sup-
and 88% over the next two years. In total, the reaction to the law does “not imply that the sovereignty to appease Adolf Hitler ported it.
law required more than 1,000 additional female presence of female directors destroys firm gave Britain an additional year to And, in the end, it was the RAF,
directors by 2021. value,” the economists note. But it does show prepare for war. “the few,” who made the difference.
Firms could comply with the mandate by re- that politicians mandating board diversity has As Mr. Roberts reports, it was the JOHN E. STAFFORD
placing a male director with a woman, though economic costs. Germans who “used the extra year Rye, N.Y.
between Munich and the outbreak of
war far better than the Western pow-
Louisiana: The Trial-Lawyer State ers.” Instead of rapidly expanding the
British armed forces, Neville Cham-
Beards Make Little Real
Difference in Modern War
L
berlain and his ministers spent that
ouisiana used to be a leader in U.S. energy neys at Talbot, Carmouche & Marcello, which brief interregnum wishfully thinking With respect to Lt. Col. Bill He-
production, but Governor John Bel Ed- raised $2 million for a super PAC supporting they had achieved “peace in our stir (“Grant and Lee’s Beards Never
wards has turned it into a leading lawsuit the Governor’s election and $640,000 for his re- time.” Saw Gas Masks,” Letters, Nov 2): I
producer instead. Jobs have declined while taxes election. Mr. Bel Edwards has demanded that But there was one critical excep- deployed to Afghanistan for the bet-
and auto insurance rates have risen. energy producers pay billions of dollars for tion to this policy: the Royal Air ter part of a year—my gas mask
Mr. Bel Edwards ran in 2015 as an anti-abor- coastal restoration. Force. Throughout 1938-39 right up stored safely in my foot locker the
tion Catholic and former Army ranger, rolling A new study by the Pelican Institute compar- entire time, far from my Apache he-
over Republican David Vitter who had been ing offshore drilling on state and federal land licopter. A beard would have made
caught patronizing prostitutes. Falling oil in the Gulf finds the lawsuits have scared off The Intoxication of Doing no difference one way or the other.
There is great value in our military
prices in 2015 had hurt tax revenues and energy producers. Oil and gas employment declined by Business With the Chinese projecting a professional image, but
employment, and Democrats blamed the state’s 2,000 in the six months after the first two law-
The article about Chinese Moutai also great value lost in the service
economic problems on GOP tax cuts. suits were filed, which was before oil prices brought back many happy memories going deliberately out of its way to
The new Governor persuaded his Republican plunged. The study estimates that litigation (“Popular Liquor Is Hard to Buy, have its members look distinctly dif-
Legislature to raise the state sales tax to shore risk has cost the state economy between $44 Tough to Swallow,” Page One, Nov. ferent than the society it serves.
up the budget and expand Medicaid. Louisiana’s million and $113 million. 1). In the 1990s I presided over my CAPT. JARED GRAHAM, USA (SEPARATED)
average state-local sales tax rate has risen to The lawsuits were supposed to go to trial employer’s joint venture in China. Savannah, Ga.
9.45%, among the highest in the country, and this year before a state judge whose re-election My responsibilities included numer-
its business tax climate has sunk to 10th worst campaign was supported by Talbot, Carmouche ous banquets with our Chinese part-
in the country from 14th, according to the Tax & Marcello, but energy producers are seeking ners. Surviving multiple rounds of Pepper ...
Foundation. Employment has fallen by a net to move them to federal court. Politicians from Moutai while remaining sober re-
quired a creative solution: Drain the
And Salt
5,000 jobs in Mr. Bel Edwards’ term. both parties play footsie with trial lawyers, but
cup; hold it upside down over your THE WALL STREET JOURNAL
Oil production has declined by nearly a quar- Mr. Edwards would make most blush.
head to prove it’s empty; then wipe
ter since January 2016 while increasing in most He hired a law firm that paid for his transi- your mouth with a napkin, while
energy-rich states and on federal land in the tion team to represent his Department of deftly spitting all of the beverage
Gulf of Mexico. Natural gas withdrawals have Health in opioid litigation. Louisiana has the into said napkin. After that, keep
returned to 2012 levels thanks to a new lique- second highest auto insurance rates in the your napkin away from open flames
fied-natural-gas export terminal. But industries country, and premiums have risen by more for the rest of the evening. Gan bei
downstream from energy such as manufactur- than half since 2011. According to the Ameri- (dry cup), indeed!
ing, utilities and construction are hurting. can Tort Reform Association, the state has KEVIN BAIN
One reason is that Mr. Bel Edwards, a former more than twice the national average in bodily Evansville, Ind.
trial attorney, has spent four years trying to injury claims but about the average in acci-
wring more money out of energy producers. In dents per capita. Letters intended for publication should
November 2013, two coastal jurisdictions sued Mr. Edwards has accused his Republican op- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
oil and gas companies for coastal erosion that ponent Eddie Rispone, who founded a construc- or emailed to wsj.ltrs@wsj.com. Please
was largely caused by levies on the Mississippi tion business, of receiving state tax breaks and include your city and state. All letters
River and natural forces. After getting elected, creating few jobs. That’s better than the Gover- are subject to editing, and unpublished
Mr. Bel Edwards joined the raid. nor who has paid off his political donors and cost letters can be neither acknowledged nor “About that insomnia—have you
returned.
Front-running the lawsuits were trial attor- jobs. The runoff election is November 16. tried counting billable hours?”
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | A13
OPINION
A
missible limits” of classroom discus- their philanthropy. At big-name insti-
merican higher education sion, and the condemnation of tutions, bureaucratic bloat is made
seems to be in a permanent unwelcome ideas as “hate speech.” possible by immense endowments
state of crisis. Almost How did the university lose its and endless fundraising campaigns.
monthly, a federal court has way? How did this new alliance of ac- For too long, the exchange has been
occasion to reprimand some tivists and administrators supplant simple: Donors provide funds and, in
college or university for improperly the faculty? return, they receive recognition—but
chilling speech, even as some students Though there are many factors, little influence.
continue to complain that campuses they all point back to a far-reaching This should come to an end. Do-
are too friendly to the wrong kind of intellectual confusion that pervades nors should decline to provide single-
speakers. Many institutions have cut the nation’s campuses, from dorm lump gifts. Instead, donors should
back on faculty hiring, even as the rooms to classrooms. Too many in provide annual support for specific
cost of tuition grows. Two basic, and higher education are unwilling or un- programs—but only as long as cer-
mutually reinforcing, phenomena are able to maintain a distinction that tain criteria are met. Of course, do-
behind the chaos on campus. lies at the core of the liberal demo- nors have no business telling profes-
First, colleges and universities cratic project, and at the center of sors what to teach or write. But
have subordinated their historic mis- the West’s intellectual tradition: the neither should donors meekly trust
sion of free inquiry to a new pursuit distinction between inquiry and ac- CHAD CROWE that Alma Mater knows best.
of social justice. Consider the re- tion, speech and conduct. Above all, concerned trustees and
markable evolution of Yale’s mission At one time, not so long ago, it alumni should not shy away from us-
statement. For decades the university was obvious that colleges and univer- ing all available levers, including fi-
said its purpose was “to create, pre- sities were the embodiment of this set the tone on campus. windmills at which to tilt? nancial and political pressure, to re-
serve, and disseminate knowledge.” distinction, dedicated above all to se- A similar conceptual confusion has As the new species of bureaucrats assert the university’s true mission.
rious reflection. Their purpose was to facilitated the rise of today’s student and student activists have come to If they fail to do so, our country—
instruct students in methods and activists. dominate the university, they have not just its colleges and universi-
An army of nonfaculty habits of free inquiry. It was equally It may surprise you to learn that reshaped it in their image. Wherever ties—will be worse off. For even in
clear what universities were not. the faculty plays almost no role in the possible, they have sought to muddle this moment, our storied academic
staff push for action They were not places to absorb and admissions process at most universi- the distinction between intellectual institutions still maintain a gravita-
and social justice at the enforce “correct” answers to our un- ties. Instead, that process has been deliberation and political action— tional force, pulling in eager stu-
settled social, cultural, moral or eco- handed to specialized “admissions thus making certain thoughts, like dents from around the country, and,
expense of free inquiry. nomic debates. departments.” Faculty members who certain deeds, into crimes. as important, from around the
Maintaining that distinction be- want to be involved in admissions are What can be done to counteract world, to learn in a free and open
tween inquiry and action has always relegated to toothless advisory com- these baleful developments? We environment.
The language was banal enough, but been crucial to academic freedom. It mittees, where they are lucky to be must look to the faculty itself, which Indeed, reinforcements from
nevertheless on the money. In 2016, is difficult, after all, to obtain the invited to glimpse the making of the can still exercise substantial influ- abroad, attracted by the promise of
however, Yale’s president announced truth while you are being bludgeoned sausage. Admissions “professionals” ence, even if only in self-defense. what America’s institutions—includ-
a new mission statement, which no into submission. are less interested in traditional aca- The faculty, besieged though it is, ing its colleges and universities—
longer mentions knowledge. Instead, But today that distinction has demic criteria, such as scholastic tal- must reassert its historic centrality have to offer, may yet ensure that our
Yale is now officially “committed to been blurred, with nonfaculty admin- ent and intellectual openness, than in the university and stand ready to country remains a source of inspira-
improving the world” and educating istrators doing the blurring. Gone is they are in flashier virtues such as protect the search for truth. If it tion and hope.
“aspiring leaders”—not only through the approach that I took for granted “activism,” “leadership” or “overcom- fails to do so, faculty members have
research, but also through “practice.” when I was one such administrator. ing adversity.” Students now arrive only themselves to blame for their Judge Cabranes serves on the Sec-
Second, American colleges and As the legal adviser to three Yale on campus having been instructed to disempowerment. ond U.S. Circuit Court of Appeals. He
universities have been overwhelmed presidents, I was pleased to think promote themselves as “social entre- But the faculty needs help. Trust- was Yale’s first general counsel, and
by a dangerous alliance of academic that my job was largely to protect preneurs” or “change makers.” It has ees and alumni have a role to play. later served as a trustee of Yale, Co-
bureaucrats and student activists our faculty from undue risks, so that become common for applicants to Trustees can start by recalling their lumbia and Colgate universities. This
committed to imposing the latest so- the university could fulfill its core claim to have “founded,” at 17, some considerable legal authority. They is adapted from remarks delivered
cial-justice diktats. This alliance has mission as a place of inquiry. shiny-sounding nonprofit devoted to should demand detailed justifications Oct. 18 to the American Council of
displaced the traditional governors of But now the ambitions of univer- beneficent acts. for each and every deputy deanship Trustees and Alumni, which be-
the university—the faculty. Indeed, sity staff are much greater. They seek The contemporary admissions and assistant directorship that swells stowed on him its Merrill Award for
nonfaculty administrators and activ- to achieve diversity, inclusion and eq- process thus reflects and advances a the bureaucratic ranks. Trimming Outstanding Contributions to Liberal
ists are driving some of the most uity—defined, ever vaguely, on their transformation of the university nonfaculty staff positions would re- Arts Education.
dangerous developments in univer- terms. And so the nonfaculty staff— from a place of thought to an instru- quire effort, but it wouldn’t be impos-
sity life, including the erosion of the who, unlike the faculty, are dedicated ment of social action. Is it any won- sible—unlike faculty, these positions Peggy Noonan is away.
due-process rights of faculty and stu- to doing rather than deliberating— der that students go searching for lack the protections of tenure.
O
instead of the GDR’s “official” one-to- them America and West Germany— sity students dig escape tunnels? me a convenient cover for some cal-
n Aug. 13, 1961—a Sunday, cho- one rate, giving them far more buying preserved their power. Court trials were officially open to culating aim. Whenever I approached
sen because fewer people power than other East Germans. I might be thrown in prison as a the public, but foreign visitors were East Berlin in my Fiat and, looking
would be out on the streets— The escapees hurt the economy spy on trumped-up charges—how, af- assigned a minder. Mine was Herr back, saw West Berlin’s factory
Berliners awoke to find East Berlin mainly by no longer contributing ter all, could I prove that I wasn’t a Sprissny, the press liaison officer, smokestacks, I already felt nostalgic.
being sealed off from West Berlin. In their labor to it. The border-crossers spy? Or a fatal “unfortunate acci- also assigned to keep foreign visitors I thought I would rather work in a
East Berlin the “People’s Police” were not only didn’t contribute; they were dent” might befall me. from embarrassing the courts or oth- West Berlin factory in freedom than
ripping up streets, piling up asphalt a net drain on the economy. They erwise harming the legal system. risk being jailed in East Berlin. I real-
and paving stones to form barricades, lived off East Germany’s subsidized He and I worked out an unspoken ized how easily my status could be
driving concrete posts into the ground food, housing and utilities while I went into East Germany agreement. First, he lectured me for changed there—from observer, to ac-
and erecting barbed wire around working in West Germany, an enemy half an hour or so on the superiority cused, and then to prisoner of a state
them, tearing up the surface of state. They were equivalent to some- to study. I’m lucky the of East Germany and its legal system. whose existence the U.S. did not even
Friedrich-Ebert-Strasse (running one living in company housing and ‘People’s Police’ never Then he took me into the courtrooms recognize diplomatically.
along the border with West Berlin to eating in the company cafeteria while to watch trials, provided the judges Each time I drove back to West
make vehicle traffic impossible, and working for a competitor. suspected otherwise. gave permission. Berlin, my car was thoroughly
holding bystanders in check with ma- I was a border-crosser, too, but in “People are beginning to ask ques- searched by the East German border
chine guns. “Factory Fighting reverse, crossing from West Berlin to tions about you,” Herr Sprissny said guards at Checkpoint Charlie. That I
Groups,” paramilitary units suppos- East Berlin—seemingly in the wrong What made me a greater fool was to me one day. By “people” he meant continued going into East Berlin
edly organized spontaneously to de- direction—to visit their courts, when- assuming that because nothing had his superiors. “We disapprove of probably confirmed my status as a
fend “our Socialist Accomplishments,” ever possible. happened to me on previous cross- what America is doing in Vietnam. fool. But I was a cautious fool, saved
helped the police prevent dissidents Each time I crossed into East Ber- ings, I’d be safe in the future. Proba- Perhaps in a few months the political by my not having tried to smuggle in
from escaping to the West. lin, I never knew whether I would be bly the opposite was true. By repeat- situation will have changed and we cheaply bought East German marks.
West Berliners stood on one side allowed to return to the West. In East edly going into East Berlin, I more can welcome you back again.” They
of the border, East Berliners on the German eyes, you were either for us, likely aroused suspicion than allayed did. Mr. Friedman, a former Fulbright
other, all of them, including me, or against us. No middle ground ex- it. What was I up to? Was I going to East German policies always had scholar in Berlin, is the author of the
stunned by what we saw. isted. Objectivity was a sham, behind try to smuggle someone out to the an element of arbitrariness. Talk of novel “Ideal Marriage.”
I had a Fulbright scholarship to
the Freie Universität in West Berlin,
to study East German law, the U.S.
having no Fulbright program in East
Germany.
Why Impeachment Will Stay Partisan
I still recall seeing on television Nobody doubts a Ukraine whistleblower. If Mr. Trump president doesn’t? the real crux: Mr. Trump’s oppo-
East Germany’s leader, Walter Ul- Democratic House were re-elected and she had failed Mr. Trump’s Ukraine actions are nents rejected his legitimacy from
bricht—smiling and garlanded in can produce 218 to pursue impeachment, a freight not illegal, and I doubt the sacred- the start, pushed fabricated allega-
flowers—as in his high, squeaky voice votes for impeach- train of blame would have come her ness of Ukraine policy matters to tions, spoke of impeaching him be-
he praised the wall for cutting off the ment. It probably way. Her chances of being re-elected many Americans. But any reason is fore he even took office.
escape movement, the 250,000 East doesn’t matter speaker would be nil. good enough if you believe an in- Voters had a right to expect bet-
Germans fleeing to the West annu- much what the Here’s guessing this is how we competent president should be re- ter from their elites—i.e., a more
BUSINESS
ally. Ulbricht denounced these “so- charges are. In really got today’s partisan impeach- moved for the sake of the country. productive response. Mr. Trump was
WORLD
called refugees” as leaving not of some sense, that’s ment. There is still a chance, of Is Mr. Trump incompetent? in no sense a Republican, a partisan,
By Holman W.
their own free will, but lured out by where impeach- course, that the charges themselves a conservative or a policy student.
Jenkins, Jr.
West German and NATO agents paid ment should land: could alter the equation, by shifting His gadfly presidency, under other
to induce citizens to betray the GDR The charges matter opinion in the body politic. Can the The arc of events has been circumstances, might be wrapping
(German Democratic Republic), as less than whether, under the totality Ukraine charges do it? No and yes— up now, with declarations of victory
East Germany called itself. of considerations, a president but Democrats are pushing bad as- determined by Trump’s and possibly having done some
From the GDR’s perspective the should be removed before his term sumptions that voters would be ad- opponents, who refuse to good. But the arc of events has been
“border-crossers”—the 50,000 to ends. vised to think twice about: determined by his opponents. They
75,000 East German residents with Democrats are still living down That Ukraine is our dear ally, in recognize his legitimacy. were not satisfied with opposing
jobs in West Berlin—were worse than previous quotes about the need for whose conflict with Russia we him. They sought to destroy him.
the escapees. Paid largely in West Ger- a broadly supported impeachment. should become deeply engaged. Mr. Trump, it’s easy to see, believes
man marks, the border-crossers ex- Nancy Pelosi, for one, likely re- That politics stops at the water’s He is a gadfly president, out of he must stick around and continue
changed them at the free-market rate garded herself as handcuffed by the edge. (It never did.) sync with many of the policy ema- to wrap himself in the immunities
That the only relevant descrip- nations of his own administration. and powers of the presidency simply
tion of Joe Biden is “political oppo- He plays his own game. There are as to defend himself and the legitimacy
nent of Donald Trump” rather than many ways to be president as there of his 2016 victory.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY “former high official whose actions have been presidents. Is this an in- When history assesses blame,
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp
should rightly be scrutinized.” valid model? It’s hard to say so Hillary Clinton, and not Mr. Trump,
Matt Murray William Lewis
“Quid pro quo” has become this when so many voters continue to will be the biggest sinner of our
Editor in Chief Chief Executive Officer and Publisher year’s “if it doesn’t fit, you must ac- claim he’s been the president they time. Mrs. Clinton continues to flog
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT: quit.” But it doesn’t follow. The wanted. His actions have been ex- the claim, and increasingly wildly,
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; Constitution and voters both give traordinarily consistent with his targeting Greens and dissenting
Natalie Cerny, Chief Communications Officer;
Jason Anders, Chief News Editor; Kamilah Mitchell-Thomas, Chief People Officer; the president broad leeway to make promises. Democrats, that Russia controls our
Thorold Barker, Europe; Elena Cherney, Coverage Edward Roussel, Chief Innovation Officer; foreign policy. For this reason, it is The question of presidential com- politics. Any day now, she can be
Planning; Andrew Dowell, Asia; Alex Martin, Print Christina Van Tassell, Chief Financial Officer
& Writing; Michael W. Miller, Features & Weekend;
hard to delegitimize Mr. Trump be- petence, of course, is a sticky one— expected to declare that Michael
OPERATING EXECUTIVES:
Emma Moody, Standards; Shazna Nessa, Visuals; Kenneth Breen, Commercial; cause he doesn’t care as much Bay of Pigs, Vietnam, WMD, I could Bloomberg, now threatening to en-
Matthew Rose, Enterprise; Michael Siconolfi, Jason P. Conti, General Counsel; about a given Ukrainian govern- go on. By the results, Trumpism has ter the Democratic presidential
Investigations; Louise Story, Strategy and Interim Tracy Corrigan, Chief Strategy Officer; ment’s struggles as some of his offi- not been half bad, whatever hyste- race, is another “Russian asset.”
Product & Technology; Nikki Waller, Live Frank Filippo, Print Products & Services;
Journalism; Stephen Wisnefski, Professional News Kristin Heitmann, Chief Commercial Officer; cials do, or that he puts a higher ria he provokes over symbolic is- In a few years, Mr. Trump’s pas-
Nancy McNeill, Corporate Sales; priority on eliciting Kyiv’s coopera- sues like the Paris climate accord, sage through our national life will
Gerard Baker, Editor at Large Thomas San Filippo, Customer Service; tion in investigations of a previous or whatever the inflaming rhetoric not seem so hysterically important
Josh Stinchcomb, Advertising Sales;
Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Chief Marketing Officer; U.S. administration, or that he pur- he uses to advance his basically as it does now, though an opportu-
Daniel Henninger, Deputy Editor, Editorial Page sues these goals with his own
Jonathan Wright, International Obamaesque immigration and for- nity has been lost. Mrs. Clinton,
Barron’s Group: Almar Latour, Publisher agents outside normal (i.e., Trump- eign-policies. whatever she may have achieved in
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head;
unfriendly) channels. Consider the Democracy, let us remind our- life, deserves to be remembered fi-
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head lazy and oxymoronic conflation that selves, is not a system for finding nally as the coward who put the
EDITORIAL AND CORPORATE HEADQUARTERS: you see everywhere accusing him of the ablest leaders but a system for country second because she
1211 Avenue of the Americas, New York, N.Y., 10036 using foreign policy to advance his legitimizing outcomes, good or bad couldn’t accept the legitimacy of
Telephone 1-800-DOWJONES
“personal political interests.” What or in between. Which brings us to her defeat.
A14 | Saturday/Sunday, November 9 - 10, 2019 * *** THE WALL STREET JOURNAL.
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BUSINESS | FINANCE
DJIA 27681.24 À 6.44 0.02%
|
Not So Fast
Moving to a low-tax
state can be harder
than it sounds B4
TECHNOLOGY |
Alibaba
THERE WILL BE BLOOD Readies
The great entertainment streaming battle is here as Disney, Apple, AT&T
and Comcast prepare to wage war with Netflix. No one is safe.
A Second
BY AMOL SHARMA AND JOE FLINT Listing
Firm looks to Hong Kong
to raise up to $15 billion
BY STU WOO AND JULIE STEINBERG
A “ Stocks Hit
new era is dawning in the entertainment is under assault as consumers turn away from tradi-
world and you’re about to get a whole lot tional broadcast and cable TV. For them, selling stream-
more choices—for better or worse. The ing subscriptions to consumers has to work—and has to The next 18
streaming wars are here.
Titans of media and technology are wa-
gering billions that consumers will pay
be profitable. For Apple, while streaming can advance
its business, failure is an option.
Consumers will have choices to make as new entrants
months are going
to be the most
New Highs
them a monthly fee to stream TV and movies over the
internet. Walt Disney Co. is launching a $6.99-a-month
service next week, following Apple Inc.’s entry earlier
join the fray: Americans are willing to spend an average
of $44 monthly on streaming video and subscribe to an
average of 3.6 services, according to a survey of over
interesting in the
history of the
As Bond
this month. AT&T Inc. and Comcast Corp.’s NBCUniver-
sal next year will mount their own challenges to
streaming juggernaut Netflix Inc.
2,000 people in recent days by The Wall Street Journal
and the Harris Poll. That is up roughly $14 from what
most people pay now.
entertainment
business.
Yields Rise
The combatants are fighting on the same battlefield, But with so many existing players already in the mar- BY GUNJAN BANERJI
all seeking to lure in subscribers, but they have radi- ket—Netflix, Hulu, Amazon Prime Video, CBS All Access
cally different motivations—and some have far more at and ESPN+, among others—not everyone can emerge U.S. stocks clinched fresh records
stake than others. victorious. “This market is going to have to shake out— and government-bond yields notched
Legacy giants like Disney and AT&T’s WarnerMedia it doesn’t feel like all these players can continue to play their biggest weekly gain in a month
are racing to reinvent their core media business, which Please turn to page B6 as investors grew more confident
that the economic cycle isn’t nearing
its end.
Investors unraveled bets on tradi-
The Wall Street Journal and the Harris Poll surveyed roughly 2,000 adults about their streaming tionally safer investments such as
habits and how they might change as competition intensifies. Here’s what respondents said. U.S. Treasurys and dived back into
some of the riskier corners of the
stock market in a week that was
dominated by trade headlines. That
propelled the yield on the 10-year
Treasury note to its highest level
$44 3.6 1 in 5
since July and all three major U.S.
stock indexes to records Friday.
The amount Americans are The number of streaming The number of cable or satellite The moves marked a sharp shift
from much of the year, when inves-
willing to spend per month to services Americans are TV subscribers considering cutting
tors bought both government bonds
stream their entertainment willing to pay for the cord within the next year and stocks simultaneously in a signal
that unease was underpinning the
broader equity rally.
Some investors said they were
PERSONAL TECHNOLOGY | JOANNA STERN closely watching bonds for cues on
the stock market’s trajectory. The
THE SCORE
THE BUSINESS WEEK IN 7 STOCKS
At first glance,
Saudi Aramco’s plans
for an enormous De-
Alibaba
ON BUSINESS | JOHN D. STOLL
cember IPO might
well suggest the fu- Readies
Oil Isn’t
ture of Big Oil is ro-
bust. Aramco earns
more than Amazon.com Inc., Apple
Inc. and Microsoft Corp. combined;
Listing
About
its market value is expected in the
$1.5 trillion to $2 trillion range. Continued from page B1
But not everyone can throw off The Hong Kong listing would
cash like a Saudi Aramco, which come five years after Alibaba’s
To Go
can get oil out of the ground more record-setting initial public offer-
cheaply than just about any big oil ing in New York that raised $25
company. Most of the world’s big billion.
oil companies face real challenges The company plans to use most
trying to convince investors that oil of the proceeds from the Hong
Green
isn’t in danger of becoming the Kong share sale to expand its
next coal, even if such concerns business in the face of increasing
may be wildly premature. competition from fast-growing
Oil majors like ExxonMobil Corp. domestic rivals, according to one
represent a shrinking share of the of the people.
S&P 500’s value. Naysayers look at Competitors such as Pin-
electric cars and anti-carbon legis- duoduo Inc. and Meituan Dian-
lation and predict oil’s best days Don’t count on ping are challenging Alibaba in e-
are behind it. the world’s biggest commerce, food delivery and
Many oil executives say they’ve other services.
heard their critics, and one way to energy companies Alibaba on Friday said it raised
respond is to fund a greener world. to deliver our its stake in a delivery-and-logis-
Royal Dutch Shell PLC and Total tics company it controls, from 51%
SA have each committed as much clean-energy future to 63%, with an investment of
as $2 billion annually to renewable 23.3 billion yuan, or roughly $3.3
technologies. BP PLC on Wednes- billion.
day said it is investing €10 million Bankers for the deal have met
($11 million) in Whim, a Finnish investors in recent weeks to
transportation app designed to re- sound out their interest in the of-
duce private car ownership. fering, according to some of the
And clean energy was an under- people.
lying theme at CERAWeek, the an- Two people who were briefed
nual IHS energy conference held about the upcoming deal said the
F. MARTIN RAMIN/ THE WALL STREET JOURNAL
McDonald’s Probe
the firm’s future strategy in
that arena. Instead of taking a
minority stake in a cash-burn-
ing company such as ride-hail-
ing rivals Uber Technologies
Inc. or Lyft Inc., as peers like
TPG and KKR & Co. have done,
Blackstone is taking a control-
Of Relationship
ling stake in a sizable company
with strong cash flows.
“This company has really
outgrown most of the land-
Began Weeks Ago
scape of growth equity, but BY HEATHER HADDON of those people.
they haven’t outgrown Black- AND SUZANNE VRANICA “Steve and I were in a rela-
stone,” Jon Korngold, head of tionship and that ended ami-
CHINA STRINGER NETWORK/REUTERS
Blackstone Growth, said in an McDonald’s Corp., which cably a while ago,” said Ms.
interview. fired its chief executive last Paleothodoros, currently an
Bumble sets itself apart week over a consensual rela- executive director at Golin.
from other dating apps with its tionship with a female em- Mr. Easterbrook, 52 years
requirement that women initi- ployee, first learned of the old, was separated from his
ate a conversation that might matter roughly three weeks wife at the time that he be-
lead to a date. ago, according to people famil- came CEO in March 2015. They
With $554 billion in assets iar with the matter. are now divorced.
and a goal of achieving $1 tril- After an internal investiga- The board determined that
lion by 2026, Blackstone has ‘Singles Day’ is an e-commerce extravaganza held Nov. 11. A parcel-sorting facility in Hefei, China. tion, the company’s general the relationship didn’t violate
been looking for new ways to counsel, Jerry Krulewitch, in- company policy, and signed off
profitably invest significant
amounts of capital as global
economic growth slows. Invest-
ing in companies with robust
Chinese Shoppers and Sellers formed the burger giant’s
board of the matter, the peo-
ple said. The board hired New
York City law firm Wachtell,
on the relationship under as-
surances that Ms. Pale-
othodoros would be removed
from the McDonald’s account,
growth profiles has been a ma-
jor part of its plan. Along with
the growth-investing business,
Gear Up for Annual Splurge Lipton, Rosen & Katz to assess
the legal risk from the rela-
tionship, the people said. Mr.
some of the people familiar
with the matter said. She told
her employer about the rela-
it has started a unit dedicated BEIJING—Created as a gim- For Alibaba, each 'Singles Day' date was chosen because it is Krulewitch didn’t respond to a tionship and was moved off the
to investing in life sciences, an- mick by online retailer Alibaba has outdone the prior year’s. written with four ones. request for comment. Wachtell account, according to a person
other avenue leading it into a decade ago, “Singles Day” has The promotion contributed didn’t respond to a request for familiar with the matter.
earlier stage companies than entrenched itself on the Chi- Gross merchandise value to making Alibaba China’s most comment. Golin said an employee in-
would traditional private eq- nese calendar as a hybrid of on Nov. 11 valuable company, with roughly McDonald’s has a longstand- formed it in 2015 of a relation-
uity. Black Friday and Super Bowl $30 billion two-thirds of the country’s e- ing policy against its employ- ship she said she was having
The deal will mark a suc- Sunday—a colossal opportunity commerce market. Its Singles ees having relationships with with Mr. Easterbrook. The
cessful exit for Mr. Andreev. for both shops and shoppers. Day sales last year hit $30.8 direct and indirect reports at public relations firm said that,
The Russian-born billionaire This year’s Nov. 11 festival of 20 billion, up 27% from 2017 and all levels, which extends com- at the time, Mr. Easterbrook
founded Badoo in 2006 as the consumption is expected to be more than U.S. retailers sold pany-wide for McDonald’s CEO, “had no working relationship
first free dating site that com- bigger than ever—and so are online on Black Friday and Cy- company representatives said. with our firm” and didn’t over-
bined photo albums with in- the headaches that come with 10 ber Monday combined. The board eventually con- see public relations. Golin said
stant messages. He later began it. “If you’re a brand with any cluded that the relationship the employee was removed
allowing Badoo users to pay to Retailers fighting to be ambition, you have to partici- between the CEO, Steve East- from the McDonald’s account
gain access to premium fea- heard above the din have blan- 0 pate,” said Declan Kearney, erbrook, and the unidentified to “avoid any conflict of inter-
tures such as the ability for us- keted billboards and social- 2010 ’12 ’14 ’16 ’18
Asia managing director for employee was short-term and est,” and that it advised
ers to see who liked them, pio- media sites to promote the Edge by Ascential, an e-com- consensual, the people said. McDonald’s of the decision.
neering the revenue model that likes of half-price sneakers Note: Converted from yuan at Friday's rate. merce data and analytics com- But the situation also raised The couple dated for more
Source: the company
has become dominant across and discounted jewelry. Gov- pany that helps major brands questions about Mr. Easter- than two years, some of the
dating apps. ernment regulators, fearing on Singles Day. brook’s judgment regarding people said.
Though less well known in what an advertiser might do “Some of them must find me While some retailers slash his personal affairs and corpo- Mr. Easterbrook didn’t re-
the U.S., Badoo now has over to stand out, have issued extra very annoying,” she said. prices by 50% or more, Mr. rate conduct in the board’s spond to requests for comment.
450 million users across 190 warnings against misleading Shoppers should be “thick- Kearney recommends that well- view, one of the people said. McDonald’s current and for-
countries and is one of the or vulgar ads. skinned” in trying to corral known companies limit dis- After Mr. Easterbrook’s fir- mer executives said they take
largest dating platforms in the For hundreds of millions of friends with invitations, JD e- counts to 15% to 20%. “If you’re ing, a representative said he seriously information about
world. shoppers, it is a big enough commerce partner Fenxiang ad- a brand like Nike, you are com- “acknowledges his error in possible relationships between
Ms. Wolfe Herd met Mr. An- challenge just to keep track of vised via its WeChat program. pelled to offer a discount, but judgment and supports the company employees, especially
dreev in 2013 when she was the sales. It also recommends dealing the key is not to get in a price company’s decision.” after the company’s then-chief
working for Tinder, which is Chasing coupons for prod- with complaints in private in- war and not devalue your pre- Several years ago, before Mr. operating officer, Ralph Alva-
owned by rival Match Group ucts from Alibaba Group Hold- stead of in group chats, to mium image,” he said. Easterbook became McDonald’s rez, left the firm in 1998 follow-
Inc. She left Tinder and worked ing Ltd. and rival JD.com Inc., avoid losing members. It isn’t only retailers that chief executive, he had a rela- ing a personal relationship with
with Mr. Andreev to develop a Peng Yang joined 11 different Singles Day was dreamed up seek the Singles Day spotlight. tionship with Denise Pale- a female subordinate while a
women-centered dating app. groups on the WeChat messag- in 2009 by Alibaba Chief Exec- A chicken farm in Jiangsu prov- othodoros, a staffer at Golin, a regional director in California.
The idea for the new app took ing app. The more WeChat utive Daniel Zhang, who re- ince aims to supply a million public relations firm owned by Mr. Alvarez was later re-
off, and Bumble now has more friends she persuades to join cently also took on the role of eggs for Alibaba on Nov. 11, a Interpublic Group of Cos. that hired and rose up the ranks
than 75 million users. her, the more coupons she gets. executive chairman after co- local newspaper reported. Real- did work for McDonald’s, and before stepping down as COO
Last year, Match offered to “I feel so addicted,” said the founder Jack Ma retired. It was estate company Evergrande personally worked on the ac- in 2009. He said at the time
acquire MagicLab in a deal that 25-year-old human-resources intended as a sort of anti-Val- says it is slashing commissions count, according to people fa- that no issues of improper be-
valued it at roughly $1 billion, consultant in Shenzhen, who entine’s Day—an occasion for for homes sold that day. miliar with the matter. The havior prompted him to retire.
but Mr. Andreev declined, the estimates she has dragged in bachelors and bachelorettes to —Raffaele Huang board was made aware of the —Joann S. Lublin
Journal reported. dozens of people. splurge on themselves. The and Stu Woo relationship, according to some contributed to this article.
B4 | Saturday/Sunday, November 9 - 10, 2019 * *** THE WALL STREET JOURNAL.
WEEKEND INVESTOR
TAX REPORT | LAURA SAUNDERS
Not So Fast,Mr.Trump!
Relocating to a low-tax state can be harder than it sounds. The state that’s left behind may not want to let those tax dollars go.
KIERSTEN ESSENPREIS
sive audits and sometimes lawsuits
that drag on for years. In Kansas, a
residency case involving $43 mil-
lion of state tax for 2005 and 2006
from an entrepreneur who sold a
company that owned Pizza Hut
franchises is still unresolved.
“States are jealous of their tax bring a moving van onto Fifth Ave- chases to provide proof. be a sign of California domicile,” Spokespersons for the White
dollars and aggressive in trying to nue and put things important to The other test is the hazy issue he said. House and the Trump Organiza-
keep them. The New York audi- him in it, to make it clear he’s go- of domicile—a legal term for one’s Of special importance is the lo- tion didn’t respond to requests
tors are well trained, and they’ve ing. Then he must show that Flor- true principal home. Many factors cation of what the law calls “near for comment.
seen everything,” said Louis Vla- ida is now his home,” said David can come into play, such as voter and dear items,” such as heir- To change his domicile to Flor-
hos, an attorney with Farrell Fritz Lifson, a certified public accoun- registration; burial plots; the loca- looms, photo albums or jewelry. ida, they said, Mr. Trump should
in New York who frequently ad- tant with Crowe in New York who tion of primary doctors or even Don’t just take beloved objects to consider selling any homes in New
vises business owners planning to often counsels wealthy people. veterinarians for pets; and where the new home, specialists say. York. He should also make sure
move away. He cautions that someone who holidays are spent. Send them and get a receipt show- that New York auditors will agree
In residency battles, details leaves a state, but then moves State auditors often delve into ing their value. that he has severed management
matter. A New York administrative around to a few different places, these issues, for example by com- Mr. Vlahos urges retired busi- ties with his New York businesses,
judge held in 2017 that a former may find it hard to prove he or she paring the size and value of homes ness owners moving out of state to as he said he did upon becoming
New Yorker didn’t owe $430,000 has truly left the first home. in the prior state and the new be especially careful if they still president. Meanwhile, his White
of tax for 2009 and 2010 because States often have two tests for state. So if a couple’s house at the have a role in their firm. Modern House residence won’t bolster his
he had truly changed his home to determining if someone is a tax- Jersey shore is more valuable than communications make it easy to argument that he has left New
Texas. The clincher was that he able resident, and both matter. their new home in Florida, it could contribute to a business from afar, York because the law sees it as a
had moved his most cherished One involves whether the per- count against Florida domicile. and auditors can argue that such temporary move that doesn’t af-
possession—his large, elderly son spent more than 183 days per California auditors tend to participation reinforces domicile fect his domicile.
dog—to his home in Dallas. year in a state where they have a check travel records, said Chris in the prior state. If Mr. Trump does actually
In general, tax specialists say, home. Leavers often need to Parker, an attorney with Moss Ad- Based on these criteria, break up with New York, he would
people switching states must be able count days, and the rules defining ams in Sacramento. Messrs. Lifson and Vlahos both still owe New York taxes on tax-
to show that they have truly left one a day can vary from state to state. “If someone claims to live in suspect that Mr. Trump hasn’t yet able income generated in the state,
place and truly landed in another. Some advisers suggest making Boise but usually flies into and fulfilled the conditions for but he wouldn’t owe it on income
“I’d advise Donald Trump to frequent credit- or debit-card pur- out of San Francisco, that could switching his domicile to Florida. earned outside it.
Emerging markets THE INTELLIGENT INVESTOR | JASON ZWEIG More than Zero
have finally
der to analysts and investors. accounting tricks, sweetheart centivizes some of the worst University of Southern California
PERCENTAGE
4
Research from Rayliant Global deals or government financing, forms of managerial behavior,” and Annika Wang of the University 2.1% of
Advisors, an investment firm emerging-market companies seem said Rayliant’s founder and chair- of Houston. Last year, 60% did. companies
2
based in Hong Kong, finds that to be pulling out all the stops to man, Jason Hsu. Share prices After a company reports a
such “earnings management” has report a profit—any profit. that rise in response to artifi- “positive earnings surprise,” or
0
become even more widespread in In the developing world, corpo- cially inflated earnings can profit higher than Wall Street ex-
emerging markets than in devel- rations often answer not just to prompt corporate managers to fo- pected, the expectations change. -50% 0% 50%
oped markets like the U.S., Europe financial markets but to politbu- cus on “accounting voodoo magic, Analysts ratchet up their fore- PROFITABILITY
or Japan. That could help explain ros and strongmen. In China, re- rather than business strategy and casts, investors bid up the
8%
the disappointing performance of porting losses is like playing with execution,” he says. shares—and the company’s man-
developing markets in recent fire: The Shanghai Stock Exchange Emerging-market firms aren’t agers, whose pay is tied to the China
years—and suggests they remain stock price, push harder. Now 6
riskier than some U.S. investors earnings have to meet or beat a
may think. higher hurdle. If they do, expecta- 4
5.1%
Rayliant sized up earnings tions will rise again. If they don’t,
management by tracking return the stock will tank. 2
on equity at thousands of compa- Blame the ventral tegmental
nies from 1998 through 2018. That area and the substantia nigra, 0
yardstick of profitability measures deep in the human brain, where
net income as a percentage of neurons monitor rewards. When
6%
shareholders’ equity, which is an you get exactly what you ex-
indicator of corporate net worth. pected, the activity in these neu- 6.2%
Analyzing return on equity rather rons doesn’t change. When you 4
than earnings prevents company get more than you anticipated, India
size from skewing the results. these neurons emit rapid-fire 2
The difference between devel- pulses of dopamine—one of the
oped and emerging markets is brain’s transmitters of learning 0
striking. and motivation. Finally, if you get
In the U.S., companies reported a smaller reward than you ex-
6%
a zero to 1% return on equity in pected, the dopamine dries up
1.7% of all instances. In China, that momentarily. 5.8%
happened only 0.29% of the time. Once earnings expectations 4
In 6.5% of cases, U.S. firms re- form, analysts, companies and in- Russia
ported a return on equity between vestors can all get locked into this 2
zero and negative 5%. In China, kind of primal craving for ever-
such minimal losses turned up will issue a “delisting risk warn- the only culprits. U.S. companies more-positive results. Disappoint- 0
only 1.7% of the time. ing” to a company that incurs a are notorious for managing earn- ment can lead to shock, as inves-
What about companies whose loss two years in a row. If the ings—both to avoid reporting a tors found in 2018; the MSCI
return was barely positive, rang- firm runs a third consecutive an- loss and to prevent falling short Emerging Markets index fell al- 6%
ing from just above zero to 5%? In nual loss, trading in its stock is of analysts’ forecasts. most 15%, while the S&P 500 re- 4.3%
the U.S., that happened at a 14% suspended. To be sure, many of those sur- turned a 4% loss. 4
frequency; in China, it occurred No wonder many emerging- prisingly buoyant results come be- Emerging-market stocks are Taiwan
28% of the time. market companies show piddling cause companies poured cold wa- cheaper than U.S. shares by sev- 2
Looking across Brazil, India, profit that, without aggressive ter on analysts’ expectations—not eral valuation measures, and
Russia, South Korea and Taiwan, earnings management, would because they managed earnings. some respected investors find 0
ALEX NABAUM
the Rayliant researchers found likely be a loss. Either way, companies are gam- them attractive. The earnings-
Note: Profitability measured by return on equity, or
the same peculiar pattern: almost In the game of managing earn- ing the market. From 1983 management game suggests, how- reported net income as percent of average book value
no companies reporting zero prof- ings, the investor is often the through 2018, on average, 55% of ever, that they may be less of a of shareholders’ equity, 1998-2018.
itability, extremely few reporting patsy. “When managing the re- U.S. companies matched or beat bargain than they appear. Source: Rayliant Global Advisors
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | B5
EXCHANGE
The first hint that TECHNOLOGY | ROBERT M CMILLAN
Michael Terpin was
Criminal hackers
can carry out costly
SIM-swapping attacks
with surgical precision.
EXCHANGE
NEWCOMERS INCUMBENTS
Now Streaming: the company can reach deals with other
cable providers, it could be free to their
customers, too.
MORNING SHOW: APPLE; STRANGER THINGS: NETFLIX; MANDALORIAN: HBO; THIS IS US: NBC; OFFICE: GETTY IMAGES; JACK RYAN, WHEN HARRY MET SALLY: EVERETT COLLECTION; STAR TREK: CBS
shifting,” said Hollywood veteran Steve able TV shows, notably “Friends” and superfan expectations. Disney’s control; it recently lost reruns of “Seinfeld.”
Mosko, chief executive of the production “The Big Bang Theory.”
company Village Roadshow Entertain- Some 41% of survey respondents said
ment, which is developing projects for they would be likely to subscribe. But
multiple streaming outlets. brand and service confusion might be an PEACOCK AMAZON PRIME VIDEO
issue. The company will encourage peo- PRICE: free for Comcast cable and broadband customers; PRICE: $8.99/month; included for those who pay for
Franchises and Oldies ple to switch from HBO Now, a different subscription pricing not announced for non-cable customers Amazon’s Prime shipping service.
Disney surprised the media world with a service offering just HBO programming at
low price for its Disney+ streaming ser- the same cost, over to HBO Max. LAUNCH: April 2020 LAUNCH: Streaming since 2011
vice that is nearly half of Netflix’s most What about people who get HBO on TV? IDENTITY: We are NOT the cable guy. IDENTITY: You bought the book, now watch the movie.
popular $12.99 monthly plan: Some 47% AT&T hopes to get them onto HBO Max by
of survey respondents were likely to sub- cutting deals with cable and satellite TV PORTFOLIO OVERVIEW: originals from NBC’s best-known PORTFOLIO OVERVIEW: a growing slate of originals, plus a
scribe to Disney+. Many were especially providers. If HBO Max pulls in all existing creators, plus a big library of classics huge library of older shows and movies
enthusiastic about its big franchises— U.S. HBO subscribers, it would have some TOTAL PROGRAMMING: over 15,000 hours TOTAL PROGRAMMING: Amazon doesn’t disclose this
Star Wars and Marvel, for example—as 35 million subscribers — and from there, statistic.
well as its large catalog of children’s clas- would try to build on its base. SUBSCRIBER TARGET: None disclosed yet.
sics, from “Cinderella” to “Aladdin” to ORIGINALS OF NOTE: “Battlestar Galactica” reboot; “Brave ORIGINALS OF NOTE: “The Marvelous Mrs. Maisel,”
“Moana.” Disney acquired 21st Century 900 Million Reasons Why New World” featuring Demi Moore “Jack Ryan”
Fox entertainment assets last year for Apple’s TV+ service, which launched Nov. 1, CLASSIC MOVIES: “True Grit,” “To Catch a Thief”
$71.3 billion. is part of a broader push into services—in- TV TO REWATCH: “The Office,” “Parks and Recreation,”
Disney is making a land grab for users cluding subscriptions and credit cards—as “Cheers,” “Everybody Loves Raymond” TV TO REWATCH: “Family Ties,” “Roseanne”
now and worrying about profits later on — it tries to offset declining sales of iPhones. MOVIE CLASSICS: “ET,” “Jaws,” “Back to the Future” BIGGEST ASSET: Amazon Prime has over 100 million
it expects to break even on the service in The tech powerhouse is charging $4.99 members, a huge potential audience.
BIGGEST ASSET: rich library of classic programming
2024. “They were brilliant thinking through per month for TV+. Its biggest advantage is
BIGGEST RISK: Being late to the game; motivating customers BIGGEST RISK: Dabbling in entertainment when its
the pricing. This is about aggregating con- a base of over 900 million mobile phone
competitors are going all out against each other.
sumers,” said analyst Michael Nathanson. users globally. Apple is building a TV eco- to drop Comcast’s traditional cable service.
Disney’s direct contact with its cus- system where it can sell you subscriptions
tomer base has come mostly through to its own original programs on TV+, plus
theme parks, Mr. Nathanson said, and the the ability to add on streaming services run HBO MAX CBS ALL ACCESS
streaming service will allow “a deeper set by others—Showtime, HBO and CBS All Ac- PRICE: $14.99/month PRICE: $5.99/month (limited commercials), $9.99 (commercial
of connections.” Disney could market its cess, for example.
LAUNCH: May 2020 free); both include live stream of CBS network
consumer products, cruises or theme The glaring challenge is that TV+ has
parks to streaming customers, some me- just nine shows at launch, and no library IDENTITY: It’s not HBO. It’s...HBO Max! LAUNCH: 2014
dia executives said. of past hits, putting a lot of pressure on IDENTITY: This isn’t your father’s streaming service—really!
A Disney spokeswoman declined to the company to find a successful show in PORTFOLIO OVERVIEW: all HBO content; programs and
comment. the early crop. movies across TNT, TBS and Cartoon Network PORTFOLIO OVERVIEW: a large library of current and older
Hulu, which is now controlled by Dis- “There is a lot of pressure on them be- TOTAL PROGRAMMING: 10,000 hours TV shows
ney, will become the home to more adult cause of the quality of Apple products,” TOTAL PROGRAMMING: 12,000 TV episodes and currently
and edgier fare. said Francis Lawrence, an executive pro- SUBSCRIBER TARGET: 75 to 90 million by end of 2025
36 movies
Comcast is taking a different path ducer of “See,” an Apple show about a ORIGINALS OF NOTE: “College Girls,” a comedy from creator
from its peers, reflecting its identity as world where a virus has left mankind blind. Mindy Kaling; “Strange Adventures,” a DC superhero ORIGINALS OF NOTE: “The Good Fight,” “Star Trek:
not just a content owner, but as the lead- Those who cut the cable TV cord to save anthology from producer Greg Berlanti Discovery,” “The Twilight Zone”
ing U.S. cable distributor. Peacock, the money may very well find themselves pay- CLASSIC MOVIES: “The Graduate,” “Moonstruck”
TV TO REWATCH: “Friends,” “The Big Bang Theory”
streaming service from its NBCUniversal ing as much by signing up to multiple
unit, is set to launch next April, featur- streaming services, said TV producer Mike MOVIE CLASSICS: “Casablanca,” “When Harry Met Sally” TV TO REWATCH: “The Brady Bunch,” “Cheers”
ing classics like “The Office,” “Frasier” Royce, whose credits include “Everybody BIGGEST ASSET: experience
BIGGEST ASSET: the HBO brand
and “Cheers,” plus originals from NBC’s Loves Raymond.”
stable. An ad-supported version will be “It’s going to be cable again in five BIGGEST RISK: Consumers could find the price too steep; BIGGEST RISK: Will it be able to keep pace with bigger
free to people who subscribe to Com- years, except it will be streaming ser- will shows like “Big Bang Theory” and “Friends” fit easily competitors while providing programming to rivals?
cast’s cable TV or broadband services. If vices,” Mr. Royce said. under the HBO brand?
60% A Menu of Options // There are loads of new things to watch, but that means more time searching, more figuring out if devices will let you tune in, and, perhaps, a higher monthly bill
of millennial men
said they are likely
to subscribe to
Apple TV+.
AMAZON FIRE TV ANDROID TV APPLE TV LG SMART TV PLAYSTATION & XBOX ROKU SAMSUNG SMART TV SMARTPHONES/TABLETS WEB BROWSER
EXCHANGE
flix’s most popular plan. Disney ex- League Baseball’s streaming service
pects the service to have between 60 as well as HBO Now.
million and 90 million subscribers by “That is probably the best acquisi-
Kevin Mayer, the end of fiscal year 2024. tion by any traditional media com-
photographed last pany ever,” said Marty Yudkovitz,
year at his Disney Mini-McKinsey who worked alongside Mr. Mayer in
office. He faces a A native of Bethesda, Md., Mr the strategic planning unit for years.
big test as the Mayer worked as a movie-theater “It was not at all sexy. But it was the
executive running usher in high school and took to critical factor of making this whole
the company’s new sales early in life. As a teenager, he over-the-top plan work.”
streaming service, sold his services as a window- Mr. Mayer’s previous acquisition
Disney+. washer to neighbors. A football ca- campaigns were puny compared to
reer at MIT and a business degree Disney’s Fox deal. Mr. Mayer pre-
from Harvard Business School fol- sented the case for buying Fox to
lowed before he joined Disney’s the Disney board, traveling to Mr.
strategic planning division in 1993. Murdoch’s Moraga winery in Los
The division, founded in the late Angeles to hash out terms. He was
1980s to stress-test the business at Mr. Iger’s side through a bidding
plans of Disney divisions, became war for the Fox assets launched by
Mr. Mayer’s home at Disney. It was Comcast Corp., eventually helping
staffed by a small number of recent to close the deal for $71.3 billion.
business-school graduates who Fox Corp. Chief Executive Lachlan
were given carte blanche to weigh Murdoch said Mr. Mayer was the
in on business plans from divisions “problem solver” during Fox negotia-
across the company. Colleagues de- tions, helping to resolve both minor
scribed it as a mini-McKinsey—a roadblocks and complex issues.
place where future executives like Fox Corp. and Wall Street Jour-
eBay Inc. CEO Meg Whitman cut nal parent News Corp share com-
their teeth. mon ownership.
Mr. Mayer ascended quickly and Winning the deal proved critical to
was named senior vice president of
strategic planning in 1998 at age 36.
Mr. Mayer specialized in finding ways
to connect Disney with new digital
tools. One of his initiatives: an at-
tempt to convince TV viewers watch-
89%
ing the Tostitos Fiesta Bowl to go on-
line and simultaneously follow the
game with trivia and games on their
personal computers.
of people likely to subscribe
“I don’t think he had a particular to Disney+ said Star Wars,
fascination with Disney,” said Jake Pixar and Marvel movies
Winebaum, the chair of Disney’s in- are major draws.
ternet division in the late 1990s.
“He had a real fascination with the
power of its brand and its various
distribution channels.”
Mr. Mayer started overseeing Dis-
ney’s internet ventures before leaving
MAYER: GIZELLE HERNANDEZ; ICONS: ISTOCK
O
Mayer began working on a series of reconfigured his company and
Burbank, Calif. as an industry colossus: Pixar En- Then there’s the question of Mr. big-ticket mergers that remade the placed two longtime lieutenants at
n the Walt Disney Co. tertainment, Marvel Studios, Lucas- Mayer’s management style. Current company over a decade of growth. the top. Mr. Mayer would be in
campus, longtime film Ltd. and 21st Century Fox. and former colleagues say he con- While Mr. Iger remained the public charge of direct-to-consumer and
executive Kevin Mayer Not everything in Mr. Mayer’s ac- fronts disagreements head-on, a de- face of the strategy, Mr. Mayer was international operations; Bob Cha-
has a nickname: Buzz quisition history has gone well. As parture from Disney’s cautious com- often in charge of the nuts-and- pek, who ran Disney’s theme parks,
Lightyear. he’s been charged with finding—or pany culture. When Mr. Mayer bolts of each deal. would take over licensing and con-
Mr. Mayer, 57 years hedging against—the next big thing oversaw Disney’s strategic planning Pixar Entertainment came first— sumer products such as Disney toys,
old, has the self-confidence, swagger in entertainment, Disney has made unit, his employees would tell new a $7.4 billion deal for the studio be- apparel and stores.
and jawline of the “Toy Story” char- questionable investments in virtual hires which nearby convenience hind “Toy Story.” Mr. Iger won over Many in the industry see the
acter—as well as the astronaut figu- reality, digital media, online video stores sold Red Bull and caffeine Pixar founder Steve Jobs, and Mr. promotions as a bake-off to be Mr.
rine’s relentlessly hard-driving style platforms and even 3-D printing. pills; long hours under him are a Mayer befriended Ed Catmull, a Iger’s successor as CEO. Mr. Iger is
and bravado. Mr. Mayer has virtually no oper- given. Disney declined to make Mr. company executive who specialized scheduled to retire in 2021, though
Now he is getting a very public ational experience at Disney: He’s Mayer available for an interview. in the technical details as president he has already delayed his retire-
test. After more than two decades never run a division such as the In recent years, Mr. Mayer has of Pixar and co-head of Walt Disney ment several times.
as one of Disney Chief Executive film studio or the theme parks. softened some of his rough edges, Animation Studios after the sale. In August, Mr. Mayer got a taste of
Robert Iger’s top lieutenants, Mr. Now, as head of Disney’s streaming people who have worked with him He was an early champion of the the public-facing aspect of his new
Mayer is launching Disney’s bet- strategy—an effort that also in- said. And colleagues attribute some plan to buy Marvel Studios at a role when he appeared alongside a
the-farm streaming service, Dis- cludes Hulu and an ESPN service— of his sharp-elbowed style to the time when only a handful of super- crew of “High School Musical” danc-
ney+, which will debut Nov. 12. he directs a team of producers cre- job he held as head of strategic hero films had hit at the box office. ers at the annual D23 fan convention
Success is critical for Disney. ating hundreds of hours of planning, which has little room for Mr. Mayer led negotiations for the to hawk Disney+ subscriptions ahead
Rather than continuing to sell its programming and dozens of engi- error or niceties. 2009 sale. of the service’s launch.
movies and television shows to Net- neers building a technical infra- “He has a relentless pursuit of “Kevin got it when most every- He was part of a presentation to
flix Inc., Disney is trying to become structure that must handle millions excellence which can be stressful one still didn’t,” said David Maisel, cheering fans that included Ewan
the Netflix alternative. The com- of subscribers at once. He also and exhausting at times,” said Nick then Marvel Studios’ chairman. McGregor confirming news he
pany has already spent billions of oversees Disney’s international op- van Dyk, a former Disney executive Disney bought Lucasfilm for $4 would return to the screen as Obi-
dollars producing programs for the erations, including broadcast hold- who worked for Mr. Mayer for billion in 2012, acquiring the “Star Wan Kenobi. The canine stars of a
service and constructing its techni- ings in dozens of countries. many years. “It is also the way his Wars” franchise in the process and live-action retelling of “The Lady
cal underpinnings. Mr. Iger has told The move has introduced Mr. people get their best work done.” capping a trifecta of deals costing and the Tramp” made an appear-
Wall Street he stakes the future of Mayer to the entertainment side of Wall Street has responded favor- about $16 billion that had trans- ance. Mr. Mayer was there as the
the company on it. the world’s largest entertainment ably to Disney’s streaming strategy so formed the company into a stable of suit in the mix, sounding more like
As Disney’s longtime deals ma- company. Unlike Mr. Iger, who rose far, recovering losses generated when Hollywood’s most valuable brands. he was speaking at a board meeting
ven, Mr. Mayer has been an impor- to the top after several roles in pro- the company acknowledged long- A less heralded but crucial deal than at a fan club event.
tant architect of the company’s re- gramming, Mr. Mayer, an engineer term subscriber declines due to ca- Mr. Mayer made was getting con- Disney+ is appropriate for “con-
cent success. He helped orchestrate by training, has had little interac- ble-cutting. Disney is pricing the ser- trol of BAMTech LLC, a technology sumers of all ages,” Mr. Mayer
the four acquisitions that expanded tion with the creative aspect of the vice with an initial cost of $6.99 a company known for creating the said. “We have the brands that
Disney into its modern incarnation company until now. month—about half the cost of Net- well-regarded architecture of Major matter most.”
$7.4 billion $700 million $4.2 billion $763 million $4 billion $950 million $400 million $2.6 billion
ACQUISITION ACQUISITION* ACQUISITION ACQUISITION† ACQUISITION ACQUISITION‡ INVESTMENT ACQUISITION**
Mr Mayer befriended The multiplayer Mr Mayer hashed out Less than four years After ‘Star Wars: The ‘If I’m going to make a Disney ended up The company became
Pixar co-founder Ed online game geared the details of Marvel’s after Disney acquired Force Awakens’ broke bet on the future it’s taking a write- Disney Streaming
Catmull while Disney toward kids missed value at one point the social gaming records follow-up short-form video and down on its stake Services and is building
CEO Bob Iger courted early performance estimating the company it closed installments and a younger audiences’ Disney+ infrastructure
Steve Jobs targets and was shut box-office returns of most of its games and theme-park attraction Mr Mayer said Maker Mr Mayer oversees both
down in 2017 upcoming movies was finished by 2016 have disappointed has since floundered
*Includes $350 million performance payout that was not paid out †Includes $200 million performance payout that may not have been paid in full ‡Includes $450 million performance payout that may not have been paid in full **Over two deals
Source: staff reports Kara Dapena/THE WALL STREET JOURNAL
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | B9
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index Track the Markets: Winners and Losers
Last Year ago Last Year ago Last Year ago A look at how selected global stock indexes, bond ETFs, currencies and
27681.24 Trailing P/E ratio 20.50 21.76 3093.08 Trailing P/E ratio * 24.02 22.31 8475.31 Trailing P/E ratio *† 25.45 22.92 commodities performed around the world for the week.
s 6.44 P/E estimate * 18.38 16.39 s 7.90 P/E estimate * 18.65 16.75 s 40.80 P/E estimate *† 22.37 19.35
Stock Currency, Commodity, Exchange-
Dividend yield 2.35 2.26 Dividend yield * 1.88 1.93 or 0.48% Dividend yield *† 0.99 1.07
or 0.02% or 0.26% index vs. U.S. dollar traded in U.S.* traded fund
All-time high:
All-time high Current divisor All-time high Dow Jones Transportation Average 3.06%
8475.31, 11/08/19
27681.24, 11/08/19 0.14744568353097 3093.08, 11/08/19 Nymex natural gas 2.76
FTSE MIB 2.62
27500 3100 8550 S&P 500 Financials 2.43
65-day moving average Nikkei 225 2.37
27000 3050 8375 CAC-40 2.22
DAX 2.06
8200 Hang Seng 2.03
26500 3000
S&P 500 Energy 2.01
Session high
S&P 500 Materials 2.00
DOWN UP 26000 2950 8025
Euro Stoxx 1.93
t
1.85
Kospi Composite 1.76
Session low 65-day moving average
25000 2850 7675 S&P/TSX Comp 1.71
Bars measure the point change from session's open S&P 500 Information Tech 1.65
24500 2800 7500 Stoxx Europe 600 1.50
Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. Dow Jones Industrial Average 1.22
S&P 500 Telecom Svcs 1.17
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. † Based on Nasdaq-100 Index
Nasdaq 100 1.16
South African rand 1.16
Major U.S. Stock-Market Indexes Trading Diary Nasdaq Composite 1.06
Latest 52-Week % chg Volume, Advancers, Decliners Comex copper 1.02
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. NYSE NYSE Amer. WSJ Dollar Index 0.94
Dow Jones Total volume* 823,933,099 10,098,072 S&P 500 0.85
Industrial Average 27694.95 27578.97 27681.24 6.44 0.02 27681.24 21792.20 6.5 18.7 14.7 Adv. volume* 444,649,707 4,711,777 S&P SmallCap 600 0.83
Transportation Avg 11102.51 11018.57 11067.16 -24.21 -0.22 11098.99 8637.15 5.2 20.7 9.9 Decl. volume* 359,403,115 4,779,090 S&P/ASX 200 0.82
Utility Average 839.51 831.34 835.30 -3.04 -0.36 880.50 692.00 13.1 17.2 7.7 Issues traded 3,050 279 FTSE 100 0.78
Total Stock Market 31628.40 31425.23 31628.38 88.51 0.28 31628.38 24126.04 10.5 23.0 12.7 Advances 1,559 134 S&P MidCap 400 0.75
Barron's 400 703.77 699.34 703.76 2.11 720.53 571.68 0.7 15.4 9.5 Declines 1,400 136 IBEX 35 0.70
0.30
Unchanged 91 9 Russell 2000 0.60
Nasdaq Stock Market New highs 107 8 Chinese yuan 0.59
Nasdaq Composite 8475.57 8405.89 8475.31 40.80 0.48 8475.31 6192.92 14.4 27.7 17.7 New lows 45 7 South Korean won 0.52
Nasdaq 100 8256.29 8186.31 8255.89 36.24 0.44 8255.89 5899.35 17.3 30.4 19.8 Closing Arms† 0.95 0.95 S&P BSE Sensex 0.39
Block trades* 5,762 99 S&P 500 Health Care 0.25
S&P
Nasdaq NYSE Arca
Shanghai Composite 0.20
500 Index 3093.09 3073.58 3093.08 7.90 0.26 3093.08 2351.10 11.2 23.4 13.1
Mexico peso 0.04
MidCap 400 1998.50 1985.83 1998.39 5.75 0.29 1999.33 1567.40 6.2 20.2 9.7 Total volume*1,984,353,121 218,486,008
iShiBoxx$HYCp 0.03
SmallCap 600 989.27 982.49 988.56 1.04 0.11 990.18 793.86 1.6 17.0 10.8 Adv. volume*1,213,928,398 63,304,672
Indonesian rupiah unch.
Decl. volume* 740,139,453 153,470,379
Other Indexes -0.19 iSh 1-3 Treasury
Issues traded 3,274 1,619
Russell 2000 1598.93 1587.49 1598.86 4.87 0.31 1614.98 1266.93 3.2 18.6 10.2 -0.22 S&P 500 Consumer Discr
Advances 1,662 787
NYSE Composite 13407.81 13343.02 13407.80 12.26 0.09 13407.80 10769.83 6.9 17.9 8.4 -0.26 IPC All-Share
Declines 1,474 797
Value Line 536.44 533.14 1.17 0.22 552.12 446.06 13.6
-0.38 Russian ruble
536.44 -0.6 4.7 Unchanged 138 35
-0.40 Norwegian krone
NYSE Arca Biotech 4612.72 4423.85 4582.68 121.72 2.73 5261.79 3890.37 -2.2 8.6 14.6 New highs 98 64
-0.44 Bloomberg Commodity Index
NYSE Arca Pharma 607.73 600.95 607.73 6.79 1.13 612.45 535.91 1.6 6.8 8.7 New lows 97 15
-0.50 Lean hogs
KBW Bank 109.80 108.78 109.72 0.15 0.14 109.72 80.78 8.4 27.9 13.4 Closing Arms† 0.69 1.96
-0.51 Soybeans
PHLX§ Gold/Silver 92.49 91.03 91.69 -0.12 -0.13 101.76 61.84 42.9 29.8 1.7 Block trades* 8,585 1,481
-0.52 Sao Paulo Bovespa
PHLX§ Oil Service 70.23 68.25 70.20 0.26 0.38 118.72 59.66 -40.9 -12.9 -22.5 * Primary market NYSE, NYSE American NYSE Arca only. -0.53 S&P 500 Consumer Staples
PHLX§ Semiconductor 1736.90 1710.96 1736.78 9.10 0.53 1736.78 1069.39 41.3 50.3 28.0 †(TRIN) A comparison of the number of advancing and declining
-0.56 iSh TIPS Bond
issues with the volume of shares rising and falling. An
Cboe Volatility 13.05 12.00 12.07 -0.66 -5.18 36.07 12.01 -30.5 -52.5 -13.6 -0.66 Canada dollar
Arms of less than 1 indicates buying demand; above 1
Nasdaq PHLX Sources: FactSet; Dow Jones Market Data indicates selling pressure. -0.67 iShNatlMuniBd
-0.75 Australian dollar
-0.78 Nymex ULSD
International Stock Indexes Percentage Gainers... -0.86 VangdTotIntlBd
Latest YTD Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg -0.97 Japanese yen
-1.02 VangdTotalBd
World The Global Dow 3157.91 –2.42 –0.08 15.5 Clovis Oncology CLVS 5.88 1.56 36.11 32.05 2.93 -62.4
Leaf Group LEAF 4.18 0.99 31.03 9.38 2.73 -54.2
-1.09 iShJPMUSEmgBd
DJ Global Index 417.05 –0.15 –0.04 18.9
TrueCar True 4.78 1.13 30.96 10.89 3.01 -52.4 -1.11 Wheat
DJ Global ex U.S. 254.28 –1.01 –0.39 14.2
Fulgent Genetics FLGT 15.82 3.50 28.41 16.28 3.05 340.1 -1.16 Indian rupee
Americas DJ Americas 728.62 1.54 0.21 22.7 Pacific Drilling PACD 3.50 0.73 26.35 3500.00 2.48 -99.8 -1.19 Swiss franc
Brazil Sao Paulo Bovespa 107628.98 –1951.59 –1.78 22.5 -1.27 UK pound
Sientra SIEN 8.84 1.84 26.29 19.38 4.78 -52.5
Canada S&P/TSX Comp 16877.42 71.67 0.43 17.8 -1.33 Euro area euro
RAPT Therapeutics RAPT 28.10 5.83 26.18 42.00 11.85 ...
Mexico S&P/BMV IPC 43702.23 –417.67 –0.95 5.0 -1.33 Nymex RBOB gasoline
Farmer Bros. FARM 16.29 3.30 25.40 26.25 10.26 -34.8
Chile Santiago IPSA 3361.81 12.98 0.39 –10.7
Axon Enterprise AAXN 65.29 12.88 24.57 74.93 39.43 24.9 -1.40 iShiBoxx$InvGrdCp
EMEA Stoxx Europe 600 405.42 –1.14 –0.28 20.1 Eventbrite EB 21.32 3.99 23.02 33.82 15.30 -34.4 -1.69 iSh 7-10 Treasury
Eurozone Euro Stoxx 399.01 –0.96 –0.24 21.5 Viela Bio VIE 33.00 6.01 22.27 33.43 18.20 ... -3.08 Corn
Belgium Bel-20 3876.94 –1.20 –0.03 19.5 Paringa Resources ADR PNRL 2.58 0.45 20.89 9.02 1.65 -65.6 -3.10 Comex gold
Denmark OMX Copenhagen 20 1098.02 16.26 1.50 23.2 Bloom Energy BE 5.17 0.87 20.23 19.87 2.44 -73.4 -3.67 S&P 500 Real Estate
France CAC 40 5889.70 –1.29 –0.02 24.5 QuinStreet QNST 15.31 2.57 20.17 20.02 10.15 -9.9 -3.73 S&P 500 Utilities
Germany DAX 13228.56 –60.90 –0.46 25.3 Adamas Pharmaceuticals ADMS 5.63 0.93 19.79 13.25 3.35 -52.7 -4.02 iSh 20+ Treasury
Israel Tel Aviv 1668.76 … Closed 14.0 -6.78 Comex silver
Italy FTSE MIB 23534.49 31.46 0.13 28.4 Percentage Losers *Continuous front-month contracts
Netherlands AEX 596.50 –0.61 –0.10 22.3 Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Sources: FactSet (stock indexes, bond ETFs, commodities), Tullett Prebon (currencies).
Russia RTS Index 1468.17 –18.86 –1.27 37.4 THE WALL STREET JOURNAL
South Africa FTSE/JSE All-Share 56617.02 –865.98 –1.51 7.4 AnaptysBio ANAB 10.18 -25.98 -71.85 83.10 10.00 -85.9
Spain IBEX 35 9393.70 –53.60 –0.57 10.0 Red Lion Hotels RLH 2.86 -3.60 -55.73 10.21 2.76 -68.4 See an expanded daily list of selected global stock indexes, bond ETFs, currencies
Sweden OMX Stockholm 662.09 0.49 26.1 Unit Corp UNT 1.04 -0.97 -48.26 23.00 0.99 -95.4 and commodities at WSJ.com/TrackTheMarkets
3.21
Switzerland Swiss Market 10309.23 –17.55 –0.17 22.3 Modine Manufacturing MOD 7.02 -4.83 -40.76 16.67 6.82 -47.3
Turkey BIST 100 103153.20 –391.15 –0.38 13.0 DIRTT Envtl Solutions DRTT 3.15 -1.45 -31.52 6.90 3.11 -40.6
U.K. FTSE 100 7359.38 –47.03 –0.63 9.4 Therapix Biosciences ADR TRPX 1.76 -0.69 -28.16 8.95 1.70 -78.5
U.K. FTSE 250 20357.63 –75.59 –0.37 16.3 Medifast
NV5 Global
MED
NVEE
74.36 -27.64 -27.10
53.08 -16.92 -24.17
165.70 66.50
89.35 51.46
-53.5
-38.4
Speed-Read the Markets
Asia-Pacific
DHI Group DHX 3.00 -0.82 -21.47 4.44 1.34 70.5
Australia S&P/ASX 200 6724.10 –2.53 –0.04 19.1
Altair Engineering Cl A ALTR 30.00 -7.47 -19.94 43.28 25.28 -6.6
China Shanghai Composite 2964.18 –14.53 –0.49 18.9 With 30-plus charts and concise analysis,
Hong Kong Hang Seng 27651.14 –196.09 –0.70 7.0 U S Concrete USCR 43.86 -10.10 -18.72 56.22 30.41 14.5
India S&P BSE Sensex 40323.61 –0.81 11.8 Teradata TDC 25.41 -5.71 -18.35 49.42 23.71 -32.5 The Daily Shot morning newsletter delivers an
–330.13
Japan Nikkei Stock Avg 23391.87 61.55 0.26 16.9 Green Dot Cl A GDOT 24.54 -5.41 -18.06 92.87 22.45 -71.4 overview of the trends impacting global markets.
Energous Corp. WATT 2.32 -0.51 -18.02 11.54 1.93 -74.9
Singapore Straits Times 3264.30 –21.41 –0.65 6.4 Sign up now at WSJ.com/DailyShot
South Korea 4.7
Arlo Technologies ARLO 2.84 -0.62 -17.92 13.71 2.71 -77.7
Kospi 2137.23 –7.06 –0.33 © 2018 Dow Jones & Co., Inc. All rights reserved. 2DJ6399
Taiwan TAIEX 11579.54 –27.02 –0.23 19.0
Thailand SET 1637.85 –3.03 –0.18 4.7
Most Active Stocks
Volume % chg from Latest Session 52-Week
Sources: FactSet; Dow Jones Market Data Company Symbol (000) 65-day avg Close % chg High Low
Chesapeake Energy CHK 69,008 8.1 0.90 -0.70 3.78 0.79 Currencies
Get real-time U.S. stock quotes and track most-active iShares MSCI Emg MarketsEEM 68,664 15.1 43.68 -0.91 44.84 38.04
WSJ stocks, new highs/lows and mutual funds. General Electric GE 62,466 -9.4 11.52 2.04 11.55 6.40 U.S.-dollar foreign-exchange rates in late New York trading
AXA Equitable Holdings EQH 62,014 2557.1 23.18 3.76 23.49 14.72 US$vs, US$vs,
Plus, deeper money-flows data and email delivery of Finl Select Sector SPDR XLF 53,808 2.4 29.84 -0.03 30.03 22.05 YTDchg YTDchg
Fri Fri
.COM key stock-market data. * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Available free at WSJMarkets.com 5,000 shares =Has traded fewer than 65 days Americas Vietnam dong .00004311 23199 0.02
Argentina peso .0168 59.5098 58.1 Europe
Brazil real .2402 4.1635 7.3 Czech Rep. koruna .04324 23.126 3.1
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Canada dollar .7559 1.3229 –3.0 Denmark krone .1475 6.7808 4.1
Selected rates
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Chile peso .001335 749.00 7.9 Euro area euro 1.1019 .9076 4.1
U.S. consumer rates notes and bonds major U.S. trading partners Colombiapeso .000299 3339.00 2.8 Hungary forint .003304 302.65 8.1
30-year mortgage, Rate Ecuador US dollar 1 1 unch Iceland krona .008003 124.96 7.6
A consumer rate against its
Mexico peso .0523 19.1031 –2.8 Norway krone .1095 9.1285 5.6
benchmark over the past year 4.00% 8%
Bankrate.com avg†: 3.95% Uruguay peso .02670 37.4600 15.7 Poland zloty .2584 3.8707 3.5
Farmers State Bank 3.50% One year ago Yen Asia-Pacific Russia ruble .01568 63.779 –7.9
t 3.00 4
s
Sweden krona .1031 9.7006 9.6
30-year fixed-rate 5.00% Waterloo, IA 877-FSB-1879 Australian dollar .6861 1.4575 2.8
mortgage Switzerland franc 1.0026 .9974 1.6
China yuan .1429 6.9960 1.7
t Capitol Federal Svgs Bk 3.63% 2.00 0 Turkey lira .1734 5.7668 9.0
4.00 Hong Kong dollar .1278 7.8271 –0.1
Shawnee, KS 800-222-7312 Ukraine hryvnia .0407 24.5416 –11.5
t India rupee .01401 71.360 2.6
10-year Treasury 3.00 CoreFirst Bank Trust 3.63% 1.00 –4 s Indonesia rupiah .0000714 14014 –2.5 UK pound 1.2775 .7828 –0.1
s
note yield Topeka, KS 785-267-8900 Tradeweb ICE Friday Close WSJ Dollar index Euro Japan yen .009154 109.25 –0.3 Middle East/Africa
t 0.00
2.00 –8 Kazakhstan tenge .002573 388.60 1.1 Bahrain dinar 2.6527 .3770 0.01
Dime Bank 3.63%
1 3 6 1 2 3 5 710 30 Macau pataca .1241 8.0597 –0.1 Egypt pound .0619 16.1499 –9.8
Norwich, CT 860-889-2318 2019
1.00 month(s) years Malaysia ringgit .2420 4.1330 0.01 Israel shekel .2862 3.4936 –6.6
D J FMA M J J A S O N First United Bank Trust 3.63% New Zealand dollar .6330 1.5798 6.2 Kuwait dinar 3.2911 .3039 0.2
maturity
2019 Oakland, MD 888-692-2654 Pakistan rupee .00642 155.650 11.3 Oman sul rial 2.5974 .3850 unch
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data Philippines peso .0198 50.550 –3.7 Qatar rial .2746 3.641 0.2
Singapore dollar .7356 1.3595 –0.2 Saudi Arabia riyal .2666 3.7503 –0.03
Yield/Rate (%) 52-Week Range (%) 3-yr chg
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Corporate Borrowing Rates and Yields South Korea won .0008630 1158.76
Sri Lanka rupee .0055399 180.51
4.0
–1.3
South Africa rand .0673 14.8623 3.5
Federal-funds rate target 1.50-1.75 1.50-1.75 1.75 l 2.25 1.25 Yield (%) 52-Week Total Return (%) Taiwan dollar .03290 30.396 –0.6 Close Net Chg % Chg YTD%Chg
Bond total return index Close Last Week ago High Low 52-wk 3-yr
Prime rate* 4.75 4.75 4.75 l 5.50 1.25 Thailand baht .03295 30.350 –6.1 WSJ Dollar Index 91.14 0.22 0.24 1.65
Libor, 3-month 1.90 1.89 1.89 l 2.82 1.02 U.S. Treasury, Barclays 2256.540 1.870 1.710 3.070 1.510 9.84 2.21 Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.70 0.71 0.53 l 0.78 0.42 U.S. Treasury Long, Barclays 3958.600 2.370 2.160 3.370 1.880 22.64 3.92
Five-year CD, annual yield 1.43 1.49 1.43 l 2.07 0.22
30-year mortgage, fixed† 3.95 3.85 3.60 l 4.99 0.34
Aggregate, Barclays 2104.930 2.410 2.260 3.640 2.060 10.60 2.98 Commodities Friday 52-Week YTD
Fixed-Rate MBS, Barclays 2130.790 2.630 2.460 3.790 2.200 8.95 2.47 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.40 3.27 3.14 l 4.34 0.55
High Yield 100, ICE BofAML 3126.919 5.265 5.258 7.825 5.100 8.23 5.76
Jumbo mortgages, $484,350-plus† 4.38 4.28 4.16 l 5.01 0.11 DJ Commodity 629.56 0.01 0.001 639.65 572.87 2.31 9.89
Muni Master, ICE BofAML 560.099 1.768 1.674 2.884 1.459 8.34 3.01
Five-year adj mortgage (ARM)† 4.36 4.17 3.94 l 4.86 1.23 TR/CC CRB Index 181.28 0.29 0.16 189.66 167.89 -3.81 6.76
New-car loan, 48-month 4.51 4.56 4.49 l 4.81 1.54 EMBI Global, J.P. Morgan 862.225 5.145 5.026 7.372 5.026 12.74 4.07 Crude oil, $ per barrel 57.24 0.09 0.16 66.30 42.53 -4.90 26.05
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest Natural gas, $/MMBtu 2.789 0.017 0.61 4.837 2.070 -25.01 -5.14
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Barclays; ICE BofAML Gold, $ per troy oz. 1461.30 -2.90 -0.20 1550.30 1199.20 21.13 14.32
B10 | Saturday/Sunday, November 9 - 10, 2019 * *** THE WALL STREET JOURNAL.
MARKET DATA
Futures Contracts Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest
Metal & Petroleum Futures Dec 18.98 19.11 18.76 19.09 .03 4,976 Mini Russell 2000 (CME)-$50 x index U.S. Dollar Index (ICE-US)-$1,000 x index
Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 1594.40 1601.30 1587.90 1598.90 4.00 466,384 Dec 98.00 98.25 97.95 98.20 .21 43,603
Contract Open
Dec 2,440 2,512 2,438 2,503 63 33,861 March'20 1594.30 1603.00 1590.40 1601.00 4.10 3,298 March'20 97.55 97.83 97.55 97.79 .21 2,293
Open High hi lo Low Settle Chg interest
March'20 2,450 2,507 2,448 2,498 48 115,952 Mini Russell 1000 (CME)-$50 x index
Copper-High (CMX)-25,000 lbs.; $ per lb. Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec 1700.20 1707.20 1696.80 1706.80 4.20 7,863 Source: FactSet
Nov 2.6980 2.6980 2.6790 2.6780 –0.0460 1,016 Dec 108.75 109.90 108.30 109.45 .35 79,590
Dec 2.7120 2.7215 2.6765 2.6820 –0.0455 120,976 March'20 112.30 113.30 111.80 112.85 .25 100,429
Gold (CMX)-100 troy oz.; $ per troy oz. Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Nov
Dec
1469.10 1469.10
1469.00 1473.90
t 1461.30 1461.30 –2.90
1457.00 1462.90 –3.50
382
445,056
March
May
12.36
12.49
12.61
12.71
12.29
12.42
12.57
12.66
.18 532,850
.13 176,014
Bonds | WSJ.com/bonds
Feb'20 1476.00 1480.70 1463.40 1469.80 –3.50 165,908 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
April 1479.00 1485.40 1468.80 1475.10 –3.50 38,110 Jan 26.95 27.46 s 26.95 27.40 .48 927 Global Government Bonds: Mapping Yields
June 1486.30 1490.50 1473.90 1480.00 –3.60 37,906 March 27.44 27.50 s 27.40 27.50 .25 1,700
Dec 1500.50 1503.00 1488.80 1496.30 –1.40 7,393 Cotton (ICE-US)-50,000 lbs.; cents per lb. Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 64.35 65.06 63.61 64.72 .37 88,467
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Nov … … … 1711.10 –69.20 March'20 65.93 66.93 65.50 66.57 .53 99,768
Dec 1767.70 1772.50 1707.10 1708.60 –69.20 21,150 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
March'20 1769.00 1769.00 1704.20 1705.50 –68.90 4,577 Nov 97.30 97.30 97.30 97.30 1.25 28 Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
June 1750.00 1750.00 1700.00 1699.30 –67.50 1,513 Jan'20 99.05 100.75 99.00 100.30 .75 13,785 1.500 U.S. 2 1.662 t l 1.673 1.424 2.977
Sept 1735.60 1735.60 1719.00 1687.10 –67.50 98
1.750 10 1.929 s l 1.918 1.533 3.238
Dec 1728.00 1728.00 1715.00 1686.60 –67.70 n.a. Interest Rate Futures
Platinum (NYM)-50 troy oz.; $ per troy oz. 5.750 Australia 2 0.902 s l 0.876 0.647 2.085 -76.0 -79.8 -89.2
Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100%
Nov 923.00 923.00 923.00 889.40 –21.20 25 2.750 10 1.302 s l 1.217 0.901 2.766 -70.1 -47.3
Dec 181-290 183-030 180-260 181-080 –21.0 1,167,455 -62.7
Jan'20 913.80 914.30 889.60 893.10 –20.90 84,282
March'20 182-080 182-080 180-020 180-150 –21.0 15,879
Silver (CMX)-5,000 troy oz.; $ per troy oz. 0.000 France 2 -0.577 t l -0.566 -0.694 -0.392 -223.9 -223.9 -336.9
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Nov 16.845 16.875 t 16.765 16.783 –0.187 3 0.000 10 0.023 t l 0.047 -0.300 0.825 -187.1 -241.4
Dec 156-210 157-070 156-010 156-130 –8.0 998,325 -190.6
Dec 17.070 17.095 16.660 16.823 –0.187 144,406
March'20 155-280 156-120 155-070 155-180 –8.0 14,294
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 0.000 Germany 2 -0.612 t l -0.605 -0.787 -0.575 -227.4 -227.8 -355.3
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec 57.08 57.48 55.76 57.24 0.09 352,155 0.000 10 -0.260 t l -0.235 -0.592 0.460 -218.9 -215.2 -277.8
Dec 128-135 128-220 128-035 128-125 … 3,684,565
Jan'20 57.11 57.48 55.77 57.26 0.11 285,731
March'20 128-135 128-205 128-020 128-115 … 210,115
Feb 56.92 57.30 55.59 57.10 0.17 149,498 0.050 Italy 2 -0.109 s l -0.152 -0.262 0.957 -177.1 -182.5 -202.0
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March 56.55 56.95 55.23 56.77 0.23 184,415 3.000 10 1.182 s l 1.158 0.843 3.401 -76.0 16.2
Dec 118-047 118-110 117-317 118-052 .7 4,471,376 -74.7
June 55.31 55.68 54.00 55.55 0.34 186,441
March'20 118-135 118-197 118-082 118-135 .7 256,582
Dec 53.31 53.68 52.14 53.59 0.38 179,873 0.100 Japan 2 -0.178 s l -0.193 -0.321 -0.134 -184.0 -186.7 -311.1
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Dec 107-159 107-179 107-142 107-163 .7 3,748,879 0.100 10 -0.060 s l -0.086 -0.201 0.122 -198.9 -200.4 -311.6
Dec 1.9191 1.9256 1.8718 1.9181 –.0022 126,479
March'20 107-205 107-226 107-189 107-211 .7 341,346
Jan'20 1.9137 1.9190 1.8669 1.9132 –.0014 80,142 0.050 Spain 2 -0.381 t l -0.377 -0.516 -0.223 -204.3 -205.0 -320.1
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Nov 98.4300 98.4350 98.4275 98.4325 .0050 374,934 0.600 10 0.388 s l 0.375 0.121 1.608 -154.1 -154.3 -163.1
Dec 1.6399 1.6399 1.5885 1.6337 –.0018 131,056
Jan'20 98.4600 98.4650 98.4500 98.4550 –.0050 425,611
Jan'20 1.6258 1.6258 1.5773 1.6213 –.0015 103,731 3.750 U.K. 2 0.556 s l 0.546 0.324 0.841 -110.6 -112.7 -213.6
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 96-240 97-005 96-155 96-235 .5 79,502 1.625 10 0.794 t l 0.795 0.417 1.432 -113.6 -112.3 -180.7
Dec 2.792 2.822 2.755 2.789 .017 243,443
Eurodollar (CME)-$1,000,000; pts of 100% Source: Tullett Prebon
Jan'20 2.871 2.905 2.839 2.873 .014 239,684
Nov 98.1075 98.1075 98.1025 98.1025 –.0025 325,056
Feb 2.827 2.864 2.797 2.822 .005 84,323
Dec 98.0900 98.0950 98.0800 98.0850 –.0050 1,533,562
March
April
2.662
2.404
2.693
2.428
2.638
2.391
2.661
2.420
.007
.018
142,970
86,382
March'20 98.2800 98.2950 98.2600 98.2750 … 1,586,547 Corporate Debt
Dec 98.3600 98.3950 98.3300 98.3600 .0100 1,228,526 Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
May 2.385 2.395 2.364 2.396 .022 82,236
Currency Futures that same company’s share price.
Agriculture Futures Investment-grade spreads that tightened the most…
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Corn (CBT)-5,000 bu.; cents per bu. Nov .9157 .9171 .9139 .9165 .0013 1,814 Spread*, in basis points Stock Performance
Dec 375.25 383.75 372.50 377.25 2.00 621,743 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Dec .9166 .9186 .9152 .9179 .0014 180,435
March'20 383.75 392.25 381.00 386.50 2.75 421,415
Canadian Dollar (CME)-CAD 100,000; $ per CAD Wells Fargo WFC 4.100 June 3, ’26 74 –24 110 54.10 0.19
Oats (CBT)-5,000 bu.; cents per bu. Nov .7590 .7591 .7555 .7560 –.0027 528
Dec 304.50 306.00 301.25 304.25 –1.00 4,312 American Equity Investment Life Hldg AEL 5.000 June 15, ’27 196 –19 233 28.40 0.67
Dec .7592 .7592 .7555 .7560 –.0027 184,292
March'20 299.75 301.50 297.00 299.75 … 2,459
British Pound (CME)-£62,500; $ per £ BAT Capital BATSLN 2.789 Sept. 6, ’24 123 –14 131 ... ...
Soybeans (CBT)-5,000 bu.; cents per bu. Private Export Funding PEFCO 1.750 Nov. 15, ’24 10 –11 n.a. ... ...
Nov 1.2818 1.2825 1.2773 1.2787 –.0038 1,171
Nov 924.50 926.75 915.75 919.50 –5.50 1,214
Jan'20 935.50 938.75 926.50 931.00 –5.50 320,795
Dec 1.2827 1.2836 1.2782 1.2797 –.0038 201,033 HSBC Holdings HSBC 3.600 May 25, ’23 67 –10 65 38.24 –0.52
Soybean Meal (CBT)-100 tons; $ per ton. Swiss Franc (CME)-CHF 125,000; $ per CHF Discovery Communications DISCA 5.200 Sept. 20, ’47 216 –9 n.a. 30.91 –0.40
Dec 1.0075 1.0082 1.0045 1.0049 –.0022 70,142
Dec 305.60 306.40 301.80 304.90 –.70 132,614 AstraZeneca AZN 2.375 June 12, ’22 35 –8 48 47.26 0.98
Jan'20 308.10 308.60 304.10 307.00 –.80 104,644 March'20 1.0139 1.0151 1.0118 1.0120 –.0021 189
Australian Dollar (CME)-AUD 100,000; $ per AUD Baker Hughes a GE BHI 3.138 Nov. 7, ’29 117 –8 n.a. ... ...
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
31.50 Nov .6883 .6907 .6850 .6857 –.0045 531
Dec
Jan'20
31.41
31.62
31.75
31.97
31.35
31.57 31.71
.07 156,957
.06 128,185 Dec .6898 .6913 .6853 .6861 –.0045 151,661 …And spreads that widened the most
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Mexican Peso (CME)-MXN 500,000; $ per MXN Patterson–UTI Energy PTEN 3.950 Feb. 1, ’28 305 42 258 9.15 0.99
Nov 1178.00 1178.00 1178.00 1180.00 3.00 5 Nov .05219 .05232 .05206 .05229 .00007 2
General Electric GE 5.000 Jan. 21, ’49 273 34 296 11.52 2.04
Jan'20 1203.00 1210.00 1199.50 1204.00 1.00 8,289 Dec .05195 .05214 .05178 .05207 .00008 303,361
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per € Apollo Management Holdings APO 4.872 Feb. 15, ’29 150 20 161 42.27 –0.70
Dec 512.50 517.75 505.50 510.25 –2.25 172,560 Nov 1.1054 1.1061 1.1023 1.1029 –.0024 2,576 Halliburton HAL 3.800 Nov. 15, ’25 129 16 121 21.28 1.53
March'20 517.25 521.50 509.50 514.25 –3.00 122,451 Dec 1.1076 1.1081 1.1042 1.1049 –.0024 539,128 Expedia EXPE 4.500 Aug. 15, ’24 102 15 n.a. 101.32 3.08
Wheat (KC)-5,000 bu.; cents per bu. Shell International Finance RDSALN 2.000 Nov. 7, ’24 42 11 n.a. ... ...
Dec 424.25 430.00 417.75 421.50 –3.25 140,192 Index Futures CVS Health CVS 4.000 Dec. 5, ’23 75 9 81 72.47 0.96
March'20 432.50 438.50 427.00 430.50 –3.00 81,936
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Mini DJ Industrial Average (CBT)-$5 x index
Nov 146.425 147.250 146.375 147.000 .225 3,874
Dec 27672 27717 27541 27631 –36 113,870 High-yield issues with the biggest price increases…
March'20 27665 27700 27535 27622 –33 4,383
Jan'20 145.675 146.275 144.950 145.875 .100 21,397 Bond Price as % of face value Stock Performance
Cattle-Live (CME)-40,000 lbs.; cents per lb. S&P 500 Index (CME)-$250 x index Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Dec 3089.90 3092.00 3074.00 3090.60 4.70 24,297
Dec 119.075 119.650 118.525 119.250 .250 114,201
March'20 3081.00 3081.00 3081.00 3092.90 4.70 1 Pyxus International PYX 9.875 July 15, ’21 65.750 5.25 61.500 10.33 12.04
Feb'20 124.875 125.400 124.300 125.025 .175 95,338
Mini S&P 500 (CME)-$50 x index Chesapeake Energy CHK 8.000 Jan. 15, ’25 60.500 4.75 67.156 0.90 –0.70
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 3086.25 3092.50 3072.50 3090.50 4.50 2,588,418
Dec 64.200 64.900 63.750 64.125 –.175 86,134 March'20 3088.50 3095.00 3075.00 3093.00 4.75 132,679 Brazos Valley Longhorn BVLFIN 6.875 Feb. 1, ’25 78.000 4.25 78.750 ... ...
Feb'20 73.775 74.150 73.175 73.900 .125 71,628 Mini S&P Midcap 400 (CME)-$100 x index Rayonier AM Products RYAM 5.500 June 1, ’24 70.250 4.25 69.750 4.35 13.58
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec 1993.10 2000.30 1984.50 1998.50 5.70 72,410
Nov 381.40 381.70 377.30 379.90 –6.10 192 CommScope Technologies COMM 5.000 March 15, ’27 85.750 3.13 81.000 … …
March'20 1920.50 1998.80 1991.10 2002.40 5.60 93
Jan'20 392.90 396.30 388.10 393.00 –.30 2,426 Mini Nasdaq 100 (CME)-$20 x index CIT CIT 4.125 Nov. 13, ’29 101.500 1.50 n.a. 44.81 –0.33
Milk (CME)-200,000 lbs., cents per lb. Dec 8230.0 8264.3 8190.0 8257.3 26.8 226,060 Mallinckrodt International Finance MNK 5.625 Oct. 15, ’23 26.000 1.50 36.000 … …
Nov 19.90 20.06 19.80 20.02 .07 5,600 March'20 8253.0 8285.5 8213.3 8279.0 26.8 2,187 Adient Global Holdings ADNT 4.875 Aug. 15, ’26 86.250 1.25 80.500 … …
AL DRAGO/BLOOMBERG NEWS
mortgages rather than selling ecutive of JPMorgan, has for banks to issue the securities.
JPMorgan last month be- them to Fannie and Freddie. many years been critical of Still, some have welcomed
came the first U.S. bank to is- By extension, such an outcome government regulations that JPMorgan’s deal as a step in a
sue credit-risk transfers tied would make taxpayers less ex- he says have made it overly positive direction.
to a pool of mortgages. The posed to mortgage defaults. difficult for banks to hold Credit-risk transfers could
bondlike instruments have Fannie and Freddie don’t mortgages. He has, though, of- be “the next little big thing”
been embraced by the govern- make loans but buy them from fered praise for the Trump ad- for banks, said Chris Helwig, a
ment-controlled mortgage lenders and bundle them into ministration’s proposals. managing director at Amherst
guarantors Fannie Mae and securities. They typically carry JPMorgan’s James Dimon has praised the Trump administration’s In the specific case of last Pierpont Securities.
Freddie Mac since their intro- a guarantee that Fannie and proposals to return Fannie and Freddie to the private sector. month’s deal, the roughly $750 At a minimum, it could help
duction in 2013. Freddie will pay investors if the million of mortgages linked to some banks shed risk and free
Like the credit-risk transfers underlying mortgages default, government control since the popular 30-year fixed-rate JPMorgan’s credit-risk trans- up capital that they can allo-
issued by Fannie and Freddie, leaving investors with only the start of the 2008 financial cri- mortgage. fers were likely never going to cate elsewhere, he said. It also
those sold by JPMorgan pay risk that the bonds will lose sis, Fannie and Freddie have al- For years, both Republicans be sold to Fannie and Freddie, “opens the door for banks to
investors a stream of income. value if interest rates rise. ways carried at least the im- and Democrats have consid- in part because the average put more loans on their bal-
In exchange, investors will As it stands, nearly half of plicit backing of the ered options for replacing the loan in the pool was too large, ance sheets.”
shoulder losses up to a certain U.S. mortgages are guaranteed government, which has been mortgage giants or introduc- analysts said. —Ben Eisen
level if homeowners default on by Fannie and Freddie. Under critical to preserving America’s ing more competition in the The loans, in general, were contributed to this article.
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The court also ordered the financial health during and af- try stepped in to nationalize it
seizure of about €65 million ter the financial crisis. at the end of 2016, a few
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)( '&'* Bank and €88 million from No- were also defendants in the The bank, which had been a
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mura plus a €3 million fine for trial, since, according to Italian perennial trouble spot in Eu-
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lion for Nomura. with a direct liability for some system, has since made signif-
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yer for the Deutsche Bank for- resentatives. Monte dei Paschi its balance sheet and return-
mer and current managers, reached a plea-bargain agree- ing to profitability.
said he “couldn’t hide his ment with the court in 2016. Convicted former managers
shock for this verdict” and is The executives were at Monte dei Paschi include
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are innocent. Mr. Iannaccone Milan prosecutors said they sari, who was given a jail sen-
said the defendants will ap- had found evidence of the ma- tence of seven years and six
peal the verdict. nipulation of Monte dei Pas- months, the longest.
“We are disappointed with chi’s stock and falsification of “This incredible verdict will
the verdict. We will review the its accounting, and some of vanish, because Mr. Mussari is
rationale for it once it is pub- the executives’ obstruction of innocent,” Mr. Mussari’s law-
lished,” a Deutsche Bank the supervisory activity of yers said in a statement.
spokesman said. A Nomura Italian authorities. —Francesca Chiarano
spokesman said the bank “is Prosecutors accused the ex- contributed to this article.
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, November 9 - 10, 2019 | B13
MARKETS NEWS
Tick Index
Reveals
Bonds Fall Amid Trade Comments
BY DANIEL KRUGER end of July and up from an earlier climb in yields Thursday that pulled yields on negotiations, analysts said.
CREDIT
Trump said he
hadn’t agreed to
bond prices fall, first slipped
after Mr. Trump’s comments,
then later recovered. The com-
accord. Hopes for an agree-
ment that would lower trade
barriers have helped improve
months.
While Mr. Trump’s com-
ments probably don’t repre-
fixed-income trading at Daiwa
Capital Markets America Inc.
“Today we’re not really there,
MARKETS roll back tariffs on ments put Mr. Trump at odds the outlook for global eco- sent a significant obstacle to and then we lurch to lower
BY ALEXANDER OSIPOVICH China, boosting de- with a statement from China nomic growth in recent weeks reaching an agreement, they yields.” Officials from China’s
mand for safe assets. that a reduction in tariffs and reduced the appeal of the are an example of the risks Commerce Ministry said
The U.S. stock market is in The yield on the benchmark would be part of the first phase safety of government bonds. that traders and investors face Thursday that tariff relief
the midst of its most persis- 10-year Treasury note settled of a new trade agreement. European government bond from the torrent of headlines would be part of the first
tent upswing in nearly two at 1.93%, the highest since the Bonds’ move helped reverse yields fell, following gains that have accompanied these phase in an agreement.
years, according to a technical
indicator called the New York
Stock Exchange Tick Index that
is followed by many day trad-
ers.
At any given time, the price
of any company’s shares has
just moved up or down. The
Tick Index is calculated by tak-
ing the total number of NYSE-
listed companies whose shares
just rose—or “ticked up”—and
subtracting the number of such
companies whose shares just
fell.
Through Friday, the tick in-
Technical indicator
shows stocks
holding strong for
15 straight sessions.
REUTERS
tweet from President Trump—
suddenly caused a large num-
ber of stocks to drop across Prices had rallied on the prospect of a trade truce boosting Chinese demand, but China is already importing crude at record rates. A terminal in the country’s Zhejiang province.
the board. Instead, a broad
ning streak to five. The tech- higher from 95.5 at the end of
U.S. Stocks nology-heavy Nasdaq Compos-
ite rose 1.1%.
October.
The figures came after the
The week was marked by latest jobs report showed the
Achieve large moves in individual
stocks and sectors as earnings
U.S. economy is growing at a
stable but slower rate, despite
After Shares Double Since 2015 less than ones maturing later
for the first time since Novem-
ber 2018. Bond prices fall as
confidence ticked up in early
November.
The University of Michigan
Composite advanced for the
third straight week, and the
Hang Seng finished its second
BY ALEXANDER OSIPOVICH phabet Inc. and Amazon.com Netherlands-based Interxion yields climb. said Friday its preliminary in- consecutive week of gains.
Inc. dominate the cloud-com- Holding NV, are those whose The rise in yields helped dex of November consumer —Will Horner contributed to
Data-center stocks have puting field. Several years ago, data centers tend to be hubs spin a rotation in the stock sentiment was 95.7, edging this article.
benefited handsomely from as cloud demand was taking for customers in the same in- market.
the boom in cloud computing, off, the big providers began in- dustry. Equinix’s NY4 data Cyclical stocks such as Five-day index peformance
but analysts warn that inves- creasingly turning to the center in New Jersey is used those of financial and energy 1.5%
tors shouldn’t let past perfor- REITs rather than building by financial-services firms in- companies led the way in the
mance cloud their thinking. new data centers themselves, cluding Cboe Global Markets S&P 500 this week.
Shares of companies includ- fueling the rally in the shares Inc. and UBS Group AG. Meanwhile, real-estate and Dow industrials
ing Equinix Inc., CyrusOne of data-center specialists. The industry’s underper- utility companies—known for Nasdaq Composite
Inc. and CoreSite Realty Corp. Demand is likely to grow formers are those focused on being steady dividend payers— S&P 500
have more than doubled since further in the coming years what are known as hyperscale suffered their worst week 1.0
the beginning of 2015, handily with the adoption of 5G wire- facilities—centers serving the since December 2018.
beating the roughly 50% in- less technology. But whether tech giants. Digital Realty Mr. Brady said he is opti-
crease in the S&P 500 over the data-center providers can Trust Inc., a REIT with more mistic about the prospects for
that period. keep cashing in is unclear. than 200 data centers whose banks including JPMorgan
Typically structured as real- One potential risk: The tech customers include Facebook Chase & Co. as financial com-
estate investment trusts, such giants could return to running Inc. and International Business panies benefit from rising 0.5
companies own large ware- data centers in-house. “At the Machines Corp., has gained yields.
houselike facilities with racks end of the day, their prefer- 9.4% this year, trailing the 23% The sputtering rally for
upon racks of servers. They ence is to build it themselves,” increase in the S&P 500. bonds coincided with a fresh
make money by leasing them said Colby Synesael, an ana- Mr. Synesael said demand boost for stocks.
out to internet companies, lyst at Cowen & Co. for cloud computing, social The Dow industrials gained
banks and others that need All data-center companies networks and wireless is un- 333.88 points, or 1.2%, for the 0
lots of computing power. aren’t created equal. This year, likely to evaporate. “These are week, hitting their first new Monday Tuesday Wednesday Thursday Friday
Tech giants such as Micro- those whose stocks have fared real customers with real highs since July 15. The S&P
soft Corp., Google parent Al- the best, such as Equinix and money,” he said. 500 extended its weekly win- Source: FactSet
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