Professional Documents
Culture Documents
High Court Hears Arguments On Race, College Admissions: Eurozone Inflation Tops 10% To Reach Record
High Court Hears Arguments On Race, College Admissions: Eurozone Inflation Tops 10% To Reach Record
00
DJIA 32732.95 g 128.85 0.4% NASDAQ 10988.15 g 1.0% STOXX 600 412.20 À 0.3% 10-YR. TREAS. g 16/32 , yield 4.074% OIL $86.53 g $1.37 GOLD $1,635.90 g $3.70 EURO $0.9883 YEN 148.74
Rocket Mortgage
them to be turned over. A5
The Biden administra-
tion will make it easier for
University Endowments See Losses
students defrauded by for-
profit schools to get fed-
eral student loan forgive-
BY JULIET CHUNG
AND MELISSA KORN
stocks, bonds and other assets
have sold off sharply.
The endowment of Washing-
ported big swings in their
multibillion-dollar endow-
ments include Stanford Uni-
Falls Back to Earth
ness under new rules set to
go into effect on July 1. A3 Investment returns for uni- ton University in St. Louis lost versity, which lost 4.2% after
versity endowments have 10.6% in the fiscal year ended gaining 40.1% previously;
The man accused of attack- fallen sharply after scoring June 30 after notching a 65% Brown University, down 4.6% Rising rates halt refinance boom, hitting
ing Pelosi’s husband told police their biggest gains in a genera- gain the prior year, the school after posting a 51.5% increase
he went to their home to take tion the year before, reflecting told The Wall Street Journal, and the Massachusetts Insti-
America’s largest home lender
the House speaker hostage a dramatically changed invest- shrinking to $13.3 billion. tute of Technology, down 5.3%
and “break her knee caps,” the ment environment in which Other schools that have re- Please turn to page A2 BY BEN EISEN above 7%, just 133,000 U.S.
Justice Department said. A3 homeowners can save money
The mortgage industry by refinancing at today’s
‘Where’s the Rest of Your Pants?’ INSIDE
New York City is paying
turned from feast to famine rates, down from a peak of
$26 million to settle lawsuits
faster than America’s largest over 19 million in late 2020,
Designers Tout Sheer Bottoms
filed on behalf of two men
home lender anticipated. according to Black Knight
wrongfully convicted of the
Rocket Mortgage har- Inc., a mortgage technology
1965 murder of Black civil-
i i i nessed a generation of low and data provider. Refinanc-
rights leader Malcolm X. A2
TAMPA BAY TIMES/ZUMA PRESS
U.S. NEWS
Higher Interest Rates Fuel Losses at Fed
BY NICK TIMIRAOS could face marginally higher night loans called reverse-re- rates meant the Fed earned because the mismatch be- market but instead recognizes
borrowing needs. purchase agreements. more on its securities than it tween interest income and in- losses on its securities hold-
The Federal Reserve’s ag- If the Fed runs sustained Before the 2008 financial paid out as interest on re- terest expense will rise,” said ings only if it sells assets. The
gressive interest-rate rises to losses, it won’t have to turn to crisis, the Fed kept its portfo- serves or other overnight Mr. Carpenter, a former senior Fed is currently shrinking its
fight inflation are leading the Congress, hat in hand. Instead, lio relatively small, at less loans. After covering its ex- Fed economist. asset portfolio passively, al-
central bank to do something it will simply create an IOU on than $1 trillion. Its main liabil- penses, the Fed last year Economists at Barclays ex- lowing up to $95 billion in se-
it has never consistently done its balance sheet called a de- ity was the amount of cur- handed back about $107 bil- pect the Fed’s net interest curities to mature every
before: lose money. ferred asset. When the Fed rency in circulation. The Fed lion to the government. losses to reach $60 billion month.
The central bank’s operat- runs a surplus again in future shifted reserves up and down “We’ve returned close to $1 next year and $15 billion in Even though the net inter-
ing losses have increased in years, it would first pay off in incremental amounts if it trillion to the Treasury over 2024 before it posts a surplus est losses have no impact on
recent weeks because the in- the IOU before sending sur- wanted to lower or raise the last 10 years. We did not again in 2025. The Fed might the Fed’s day-to-day opera-
terest it is paying banks and pluses to the Treasury. short-term interest rates. keep that revenue in the Fed,” not erase its deferred asset tions, they could cause politi-
money-market funds to keep The arrangement is akin to After the crisis, the Fed cut St. Louis Fed President James until 2026, when it would re- cal headaches down the road,
money at the Fed now exceeds an institution facing a 100% interest rates to zero and pur- Bullard told reporters re- sume handing earnings to the in part because they are
the income it earns on some tax rate and offsetting current chased large quantities of cently. “Now, with the rising Treasury. large and novel, said strate-
$8.3 trillion in Treasury and losses with future income, said bonds to provide additional rates, the situation is chang- Fed officials were briefed gists at Barclays in a recent
mortgage-backed securities it Seth Carpenter, chief global economic stimulus. Those pur- ing.” on operating losses at their report. Moreover, the distri-
accumulated during bond-buy- economist at Morgan Stanley. chases flooded the banking In September, when the Fed Sept. 20-21 meeting, according bution of Fed reserves and
ing stimulus programs over The losses stem from some system with reserves. To raised its benchmark rate to a to minutes of the meeting re- overnight loans in its re-
the past 14 years. obscure monetary plumbing. maintain control over interest range between 3% and 3.25%, leased in October. Fed staffers verse-repurchase facility
The losses don’t interfere The Fed’s $8.7 trillion asset rates with a larger balance it began earning less on its as- at the meeting said the size of could result in $325 billion in
with the Fed’s ability to con- portfolio is full of mostly in- sheet, the Fed revamped the sets than it pays out on liabili- the deferred asset “would in- payments to large financial
duct monetary policy, and terest-bearing assets—Trea- way it manages rates. The new ties. The central bank is ex- crease over time” and that net institutions in the next two
they follow years in which the sury and mortgage securi- system, which was already in pected to raise rates by 0.75 income would turn positive years, they said.
central bank earned profits of ties—with an average yield of use by many other central point after its two-day meet- “likely in a few years.” An operating loss “doesn’t
around $100 billion, which it 2.3%. On the other side of the banks, controlled short-term ing ends Wednesday. “At this point, they just impede the monetary policy
sent to the U.S. Treasury. ledger—the liability side of the rates by paying interest on “The losses can grow over have to live with it,” said Mr. that we’re doing, but I do
Those remittances reduced Fed’s balance sheet—are bank bank reserves. time if they keep raising Carpenter. think it poses a communica-
federal deficits, and as they deposits held at the Fed For the past decade, rela- short-term interest rates, Like most central banks, the tions problem,” said Cleveland
end, the federal government known as reserves and over- tively low short-term interest which it seems like they will, Fed doesn’t mark its assets to Fed President Loretta Mester.
U.S. WATCH
Endowment Endowments’ investments
in venture capital have proved
particularly thorny.
U.S. NEWS
U.S. Will
Speed Debt
Attacker Wanted Speaker as Hostage
BY SADIE GURMAN of a glass door to gain entry, FBI agent wrote in court docu- stairs, where Mr. Pelosi was took the hammer and arrested
U.S. NEWS
EVELYN HOCKSTEIN/REUTERS
has visited in Oregon and New York, where
six since Sept. 1. He hasn’t been Democrats are in competitive
to Arizona, Nevada or Georgia, governor’s races, and pointed
three states with high-profile to his fundraising efforts.
midterm races that also helped “He’s on the road and he’s
put him in the White House. raising a boatload of money
Mr. Biden has made three for Democratic candidates,”
trips to New York and two to President Biden with Gov. Kathy Hochul of New York—which isn’t considered a swing state—at a community college in Syracuse last week. said Cedric Richmond, a senior
Maryland—solidly Democratic adviser to the DNC.
states with some competitive and fundraisers. The approach clamoring for him to come.” ing voters of Democrat-caused a fundamental choice, a choice Since Sept. 1, Mr. Biden has
races in November—but has differs from that of former Rep. Tim Ryan (D., Ohio), inflation, surging crime and between two very different vi- visited 14 states. He has held
visited Michigan and Wisconsin Presidents Donald Trump and who is running for Senate, re- high gas prices,” said Nathan sions for the country.” 17 fundraisers and has also
only once each. The only top Barack Obama, who both cam- cently told CBS News he Brand, a spokesman for the Re- Allies noted that Mr. Biden given speeches from the White
presidential battleground he paigned more during the first wouldn’t ask the president to publican National Committee. has been clear that he will re- House or Washington, D.C.,
has visited repeatedly is Penn- midterm election after they campaign with him. “I want to Democrats have argued that spect candidates’ wishes when area to highlight issues of im-
sylvania, his birthplace. took the White House, but their be the main face, the main their legislative efforts, includ- it comes to where he cam- portance to Democrats, such
With more than half of parties still faced heavy losses. messenger,” he said. ing the recent healthcare, cli- paigns in person. In choosing as abortion and student debt.
Americans disapproving of Mr. “The problem this cycle, in Wisconsin Lt. Gov. Mandela mate and tax law, are popular. where to dispatch Mr. Biden, During the same period in
Biden’s job performance, ac- terms of where we are today Barnes, the Democratic candi- Analysts from both parties the White House is balancing a 2010, Mr. Obama visited 20
cording to a recent Wall Street and where we are headed, is date for Senate, skipped a La- say Republicans are likely to variety of factors, such as states and held 28 fundraisers.
Journal poll, his campaign that it’s not clear what is safe bor Day event with Mr. Biden in gain more than the net five where he can help Democratic In 2018, Mr. Trump visited 25
strategy reflects the challenge anymore,” said Democratic Milwaukee. Mr. Barnes didn’t seats needed to take the ma- candidates, whether an appear- states and held 18 fundraisers,
facing an unpopular president strategist Chris Kofinis. “I’m respond to a request to com- jority in the House, while con- ance in a state would help the according to data provided by
in a midterm cycle, Democrats not surprised he’s not going to ment. He told local media at the trol of the 50-50 Senate could entire ticket and how he might former CBS News White House
said. As some Democratic can- Arizona or Nevada. The ques- time that his schedule was full. fall to either party. elevate a particular issue. correspondent Mark Knoller,
didates keep their distance, he tion is—is he helping or hurt- Republicans said Mr. Biden’s Mr. Biden said Saturday Mr. Biden will visit Florida who tracks presidential data,
is focusing on official events to ing in Pennsylvania or New policies are a drag on his party. that he would be on the trail on Tuesday for a Democratic and by Brendan Doherty, a
promote his agenda, policy York? That part is not clear. I “Biden can’t step foot in a “making the case that this is National Committee rally in professor of political science
speeches at the White House don’t see many candidates swing district without remind- not a referendum, it’s a choice, support of Senate nominee at the U.S. Naval Academy.
cases is whether the schools faced vigorous questioning you know, an oboe player in a
Continued from Page One seriously considered race-neu- from conservatives on the year in which the Harvard-
tice Amy Coney Barrett, Mr. tral alternatives to enrolling a bench. Radcliffe orchestra needs an
Strawbridge said that while diverse student population, for “I’ve heard the word diver- oboe player will be the tip.”
race couldn’t be considered in instance by considering appli- sity multiple times and I don’t “Yep, but we did not fight a
a “box-checking way,” stu- cants’ socioeconomic status or have a clue what it means,” civil war about oboe players,”
dents could in application es- whether their parents at- said Justice Thomas, asking Chief Justice Roberts said.
says describe their own expe- tended college, or by increas- Mr. Park to detail the educa- “We did fight a civil war to
riences overcoming obstacles ing financial aid. tional benefits of racial diver- eliminate racial discrimina-
such as racial prejudice. Harvard lawyer Seth Wax- People received tickets to attend oral arguments on Monday. sity at UNC specifically. When tion, and that’s why it’s a mat-
“These are the pipelines to man, a solicitor general in the Mr. Park said it fostered a ter of considerable concern.”
leadership in our society,” Jus- Clinton administration, told about whether race-neutral al- whether schools could award richer learning environment Representing the Biden ad-
tice Elena Kagan said of univer- the court the college had ternatives being used as a proxy preferences for descendants of and reduced bias, Justice ministration in support of the
tested various race-neutral for race would still pass muster. slaves or for the children of Thomas interrupted. “You still universities, U.S. Solicitor Gen-
means of raising minority en- In the arguments during the immigrants. They questioned haven’t given me the educa- eral Elizabeth Prelogar cited
rollment, such as boosting fi- Harvard case on Monday af- whether applicants should be tional benefits,” he said. the experiences of the U.S.
Crafted in gold & platinum
nancial aid and, for a period, ternoon, Justice Kagan asked able to submit essays in which Mr. Waxman said for highly military, arguing that a diverse
eliminating the early admis- the lawyer for SFFA, “When they expressed pride in their qualified candidates on the officer corps was essential to
Rush! sion program. None, Mr. Wax- race-neutral means can’t get heritage, suggesting it was dif- cusp of admission, “being Afri- good morale and discipline
Service
Available man said, could produce the you there, don’t get you there, ficult to discern exactly what can-American or being Hispanic among the ranks as well as to
diversity that consideration of you’ve tried and tried and would be acceptable if Mr. or in some instances being national security interests.
race allowed. they still won’t get you there, Blum’s group prevailed. Asian American can provide Mr. Strawbridge said there
Justice Brett Kavanaugh, can you go race-conscious?” Justice Ketanji Brown Jack- one of many, many tips.” is no indication that officers
who as a federal judge has “I don’t think so,” responded son questioned why a Black “You have to concede that if who did their training at uni-
taken special steps to recruit the lawyer, Cameron Norris, student couldn’t gain an ad- it provides one of many, then versities in Texas, Florida or
Black law students for clerk- saying racial diversity alone missions advantage with UNC in some cases it will be deter- other states where consider-
Immortalize Your Anniversary
ships in federal courts, said if isn’t a compelling interest. for an essay noting that her minative,” Chief Justice John ation of race in admissions is
in Roman Numerals! the challengers prevail, univer- In the course of the day’s ancestors were barred from Roberts said. banned were any less diverse
JOHN-CHRISTIAN.COM 888.646.6466 sities would face questions questioning, justices asked attending the state university, “I do, I do concede that,” than did those from UNC.
THE WALL STREET JOURNAL. * * * * NY Tuesday, November 1, 2022 | A5
U.S. NEWS
Trump Asks Supreme Court to Shield Tax Returns erated with the select commit-
tee, providing it communica-
tions and documents he
determined weren’t protected
BY JAN WOLFE tion filed to Chief Justice John issued because once the tax tual request matched its stated licans, who have repeatedly by executive privilege, includ-
AND RICHARD RUBIN Roberts, who is responsible information is turned over to purposes and into statements opposed those requests. ing over 2,300 text messages
for such requests for the D.C. Congress there is no way to made by lawmakers about So depending how long the from his personal devices.
WASHINGTON—Former Circuit, Mr. Trump’s lawyers undo disclosure of information their motives. case continues, even a Su- Lawmakers previously dis-
President Donald Trump asked asked the court to issue an in- that is normally private. They If the Supreme Court de- preme Court decision in favor closed some text messages be-
the Supreme Court to block a terim order known as a stay also contend that there is no cides to hear the case, it could of congressional power to ob- tween Mr. Meadows and some
House committee from obtain- by Wednesday. Such an order urgent need for the committee send the outcome into deep tain the documents could allies during the Capitol attack,
ing his past tax returns from would block the Democratic- to get the documents. uncertainty. Democrats may come too late for Democrats. in which they had implored Mr.
the Internal Revenue Service controlled House Ways and A stay would also ensure lose control of the Ways and The tax records are set to Meadows to press Mr. Trump
before a Thursday deadline for Means Committee from ac- that the court can consider the Means and Senate Finance be turned over to the Ways to intervene to stop the rioters.
the material to be turned over. cessing the tax documents un- “unprecedented separation-of- committees in next week’s and Means Committee this In an August court filing, Mr.
Mr. Trump’s request on til further legal briefs are filed powers issues” raised by the midterm elections. The new week if the court doesn’t act. Meadows criticized the Select
Monday marks what is likely before the justices. case, Mr. Trump’s lawyers said Congress will start in January, It would take additional ac- Committee for publicly disclos-
to be the final phase of more Mr. Trump, represented by in their emergency application. after which it is possible that tion by the committee to pub- ing the text messages he had
than three years of legal wran- lawyers at Consovoy McCar- They argue that lower courts the lawmakers with authority licly release any of the docu- voluntarily produced.
gling over the tax returns. thy, said he would be “irrepa- didn’t look deeply enough into to request Mr. Trump’s tax re- ments or information from —Sadie Gurman contributed
In an emergency applica- rably harmed” if a stay isn’t whether the committee’s ac- turns will be his fellow Repub- them. to this article.
Recover from
joint replacement
surgery faster.
At NewYork-Presbyterian, many of our patients
go home the same day as their hip or knee
replacement surgery. Make an appointment to
talk to a doctor about minimally invasive surgery
at one of our convenient locations in Manhattan,
Brooklyn, Queens and Westchester.
NYP.ORG/HIPANDKNEE
WORLD NEWS
Brazil’s New Leader Faces Economic Perils
GDP is expected When Mr. da Silva first took ing former Central Bank Presi-
office in 2003, Brazil’s economy dent Henrique Meirelles.
to grow less than 1% was revving up as a rapidly “The odds are he will gov-
as trading ebbs amid growing and voracious China ern toward the center and
consumed everything from Bra- markets will applaud that,”
global slowdowns zilian iron ore to beef, sugar to said James Gulbrandsen, chief
soybeans. By 2010, Brazil was investment officer of Latin
BY SAMANTHA PEARSON growing at 7.5%, its fastest rate America for NCH Capital, an
AND LUCIANA MAGALHAES in a quarter of century, and Mr. American investment firm.
da Silva finished his two terms After early declines, Brazil-
PRICES?
PROFITS?
POLICIES?
Complexity deserves clarity.
wsj.com/midterms
© 2022 Dow Jones & Co., Inc. All rights reserved. 6DJ9139
THE WALL STREET JOURNAL. NY Tuesday, November 1, 2022 | A6A
Up to
$200
rebate*
Our new dishwashers are in stock now and available at these fine independent retailers.
World of Appliances AJ Madison, Inc. All Home Appliance All Shore Appliance Appliance Brokers Appliance Brokers
1003 MacArthur Blvd 3605 13th Ave 196 Lee Ave 165 Main St Limited / ABL Limited / ABL
Mahwah, NJ Brooklyn, NY Brooklyn, NY Port Washington, NY 1001 Asbury Ave 49 Wilson Ave # A
845-517-0973 800-570-3355 718-237-0990 516-321-9960 Asbury Park, NJ Manalapan, NJ
732-807-7342 732-438-1400
Scan the code or go to Appliance Connection Appliance World Appliance World Audio and Video Center B.A.W Group B&S Enterprise
beko.com/us-en/new-dishwashers 1870 Bath Ave 350 Lexington Ave 414 New York Ave 133 Bowery 2564 Bedford Ave 715 Myrtle Ave
to discover even more reasons why Brooklyn, NY Oyster Bay, NY Huntington, NY New York, NY Brooklyn, NY Brooklyn, NY
Beko is the right dishwasher for you. 800-299-9470 516-624-0132 631-418-1000 212-965-1005 718-513-1396 718-855-8100
* Buy a new 39, 38, or 36 series dishwasher from a Beko authorized dealer between 5/23/22 – 12/31/22 and receive up to $200 rebate, via a prepaid gift card. Rebate amount varies; $100 on 36 and 38 series
and $200 on 39 series. Must be redeemed online or by mail and postmarked no later than 1/31/23. Limit one rebate per household. For full details and conditions, visit beko.com/us-en.com. ©2022 Beko U.S., Inc. 22BEUS068-4
A6B | Tuesday, November 1, 2022 NY THE WALL STREET JOURNAL.
WORLD NEWS
Missile Attacks
Hamper Supplies
Of Power, Water
KYIV, Ukraine—Russian 10, in which Russian missiles
forces launched a wave of mis- and drones swarmed the coun-
sile strikes across Ukraine on try, striking in the center of
Monday that knocked out elec- Kyiv and knocking out power
tricity and water supplies in to large parts of the country.
Kyiv and other cities, just as Since then, Kyiv says strikes
UMIT BEKTAS/REUTERS
the country was recovering on Ukraine’s infrastructure
from the damage inflicted in have damaged around a third
the Kremlin’s recent attacks of the system’s overall power-
on civilian infrastructure. generation capacity.
The latest assault came as
By Jared Malsin, Ukraine was beginning to get
Joe Parkinson back on the grid. Just hours Commercial vessels, including ships that are part of a Black Sea grain deal, wait to pass the Bosporus Strait off Istanbul on Monday.
peratures likely to sit between 4 specific to the U.K., but the 168- $126, a megawatt-hour. U.K. by governments and utilities to
and just-below 6 degrees Cel- year-old agency’s predictions prices fell 7% to 3.14 pounds, get gas from other sources, and
sius, equivalent to between 39.2 have implications for the conti- or $3.62, per therm. encourage residents and busi-
and 42.8 degrees Fahrenheit, in nent as a whole, in part owing Futures contracts suggest nesses to conserve. European
the U.K., which is slightly below to its expertise in modeling the gas will become more expensive countries have rushed to buy
the average seen over the last North Atlantic Oscillation, an when temperatures fall, but that shipped gas, called liquefied
five years. The forecasting important factor for predicting prices won’t regain the highs re- natural gas, from places such as
Smoke rises over Kyiv’s outskirts during a Russian missile attack. agency said it also is likely to be weather across Europe. corded in August. One reason is the U.S. and Qatar.
date was reached, Penguin would be interested in buying working for a bank… this may not fit.
Random House would pay a Simon & Schuster if Penguin
fee of $200 million to Para- Random House’s purchase was If you’re interested contact:
mount Global, which owns Si- blocked. Mr. Murray declined
mon & Schuster. to comment Monday.
Judge Pan wrote in a two- HarperCollins bid unsuc- Chris Fowler
page order: “The Court finds cessfully for Simon & Schuster C: 248-826-4306
that the United States has after it was put up for sale in
shown that the effect of the March 2020. HarperCollins, cfowler@SICapitalGroup.com SICapitalGroup.com
proposed merger may be sub- like The Wall Street Journal, is
stantially to lessen competi- The Penguin Random House booth at a book fair in 2021. owned by News Corp.
A8 | Tuesday, November 1, 2022 THE WALL STREET JOURNAL.
Tops 10% fell to 7.3% from 9%. The yield on the benchmark Germany 2.2 million industrial workers, statistics agency said the com-
The surprise jump in infla- German 10-year bund rose to Europe has demanded an 8% pay in- bined gross domestic product
10
tion underlines the challenges 2.149% from 2.077% Friday. The France crease over 12 months to com- of the 19 countries that use the
facing ECB policy makers as yield on Italy’s benchmark 10- pensate for surging consumer euro was 0.7% higher than in
Continued from Page One they confront a likely recession year bond rose to 4.253%, from prices. Its members started the three months through June
that consumer prices were in the eurozone. The central 4.141% Friday. warning strikes over the week- when annualized, a slowdown
5
10.7% higher in October than a bank raised its key interest rate Eurostat said energy prices end after failing to reach an from the 3.3% growth recorded
year earlier, the fastest rate of to 1.5% from 0.75% on Thursday, were 41.9% higher in October agreement with employers. in the second quarter.
increase since records began in but signaled mounting concerns than a year earlier, while food “Growth can only be distrib- With energy use set to rise
1997, two years before the euro about economic growth. prices were up 13.1%. But the uted if it exists,” said Stefan as cold weather spreads across
was launched. However, na- Investors, watching closely core rate of inflation, which 0 Wolf, president of the Employ- the currency area, most econo-
tional records go back further, for signs that central banks excludes those volatile items, Oct. 2021 ’22 ers’ Confederation in the Metal mists expect its economy to
and Germany’s measure of in- such as the Federal Reserve will also picked up to 5% from and Electrical Industry. contract in the final three
flation was the highest since pivot away from large interest- 4.8% in September. Source: Eurostat High energy prices have months of the year, and in the
December 1951. rate increases, took those com- The outlook for inflation been a headwind for the euro- early months of next year. The
Economists had expected to ments to mean the ECB could depends on the availability of The rise in living costs has zone economy this year be- ECB will update its own fore-
see a pickup in inflation dur- soon ease back on rate rises. gas supplies through the win- triggered a wave of protests cause they leave households casts in December, when policy
ing October, but not one that The surge in inflation raises ter months, and average tem- across Europe, testing the re- with less to spend on goods makers will have to decide
was as large as Eurostat re- doubts about that expectation. peratures, as well as govern- solve of governments that and services that are produced whether to push ahead with an-
ported. Economists surveyed “This raises the question of ment measures to protect have so far maintained unity inside the currency area, while other big rate raise, or moder-
last week by The Wall Street whether the talk of an ECB households from hardship. in their costly economic war raising costs for businesses, ate the pace of tightening.
Journal saw a rise to 10% from ‘pivot’ that followed Thursday’s Many eurozone governments with Russia. and particularly energy-inten- —Tom Fairless
9.9% in September. meeting is premature,” said have introduced price caps In Germany, record inflation sive factories. and Caitlin Ostroff
As measured by the Euro- Paul Hollingsworth, an econo- that directly limit inflation. has caused tension between However, separate figures contributed to this article.
D
your dialed time,
anika Fickler, 18, a freshman Danika Fickler, 18, with her 1986 you are disqualified.
at Colorado State University, Chevrolet S-10 Blazer, which has [If both cars run
on her 1986 Chevrolet S-10 an aftermarket gauge panel. quicker than their
Blazer drag racer, as told to dial in, the one that
A.J. Baime. is closer to it is the
winner.] So you
I DID A LOT OF growing up at want to beat the
Heartland Motorsports Park in other person by the
Topeka, Kan. My parents hon- smallest margin
eymooned at this racetrack possible. In order to
when they married in 1993. do that, you are
Both of them have been drag working both the
racing since before I was born. gas and the brakes.
My mom was a class winner The number of
at Heartland in 2005, 2006 rounds in which you
and 2007, and my dad won a the hotel to the racetrack and back. racing. There are yellow lights that race depends on the number of com-
National Hot Rod Association Tim Hyatt had passed away, and flash on, and when the third light petitors at the event in your class.
[NHRA] national event there the Blazer was sitting in storage. comes on, you go, because in the Since I started college this fall, I
in 2019. When I go to Heart- So, my family bought it for me to time it takes you to react to that have been back to Heartland to
land now, people come up to compete two weeks before the first third yellow light, the green light will race three times. In September, I
ANDREW WHITE FOR THE WALL STREET JOURNAL (2)
me all the time to tell me that High School-class event. I won the flash on. Then you’re throttling. won an NHRA championship event
they knew me when I was a baby. racing. Other tracks around the first two events with the Blazer, When you get to the finish line, if in the Blazer. In the High School
I started racing quarter-midgets country had a High School class, and that is how the season began. you see a green light in your lane class at Heartland, locally, in 2022,
[a type of junior race car] when I but this was the first at Heartland. Almost everything on the Blazer is flash on, that means you won. it was me and three other guys,
was 8 or 9. Then, junior dragsters at My godmother, Beth Hyatt, who aftermarket, except the body, The way the rules work, you have two from Kansas and one from Ne-
age 12. People mistakenly think I used to babysit me at Heartland brakes and fuel tank. It has a 355- to “dial” in your car, meaning you braska. We had our last race [in
was named after the famous racing when my parents would be racing cubic-inch Nickens Brothers Chevy have a time that you predict you are October]—my last in the High
driver Danica Patrick. I wasn’t. But years ago, had a 1986 Chevy S-10 V-8 racing engine. going to run the quarter mile. The School class—and for the season, I
my middle name is Carrera; the Blazer that her husband, Tim, built In the High School class, you can person you are competing against finished second in points.
word literally means a “race” in out. It was a streetcar that got build out the car how you want, but also dials a time. So you do not both What is next? I will keep racing
Spanish. raced around the country, and they there are rules. You line up in the start at the same time. If I am dialed at Heartland. There is so much fam-
In 2021, Heartland launched a called it their “hotel car,” meaning staging area, and whoever is in the 13.0 seconds, and the car in the lane ily history there. It’s a place where I
High School Points class for drag they would also use it to get from lane next to you, that is who you are next to me is dialed 15.0 seconds, I feel at home.
A10 | Tuesday, November 1, 2022 NY * *** THE WALL STREET JOURNAL.
PERSONAL JOURNAL.
BY ANNE TERGESEN
T
Advisers say clients at a wide Should I take the lump sum or Then consider whether you’d be Which pays more over your
range of companies have grappled stick with pension payments? better off with the pension, which lifetime?
he math on when and with this decision. The first step is to find out how provides a retiree a monthly pay- Brian Tegtmeyer, an adviser in Co-
how to retire is shifting Retiring early to grab a higher much you’d receive with each ment until death that’s typically lumbus, Ohio, recently performed
for millions of workers lump sum may make sense for peo- option. based on factors including tenure an analysis for a 58-year-old client
with pension plans. ple who had planned to leave their Most pension plans offer online and salary. Retirees can elect to with the option to take a $540,000
Blame the steep rise in jobs soon and are financially and calculators that provide data. Ask continue their pension over a lump sum or a pension that pays
interest rates. emotionally prepared, advisers say. your plan’s administrator or human spouse’s lifetime too, a benefit $2,150 a month.
When workers retire with a But others may be better off re- resources department when your that typically reduces the amount Assuming the client or his
pension, many are given a choice maining on the payroll to bolster pension plan updates the interest of the monthly income. spouse live to age 85, they’d need
between receiving a monthly in- to earn an average of 2.4% a year
come for life or taking a lump-sum on the lump sum to equal the cu-
payment. Many pick the lump sum, mulative income they’d receive
and those payout amounts have from the pension, Mr. Tegtmeyer
generally increased in recent said. If either lives to 95, the lump
years. But now, as interest rates sum would have to earn closer to
rise, lump-sum payouts are drop- 4% a year to keep up with the pen-
ping by as much as 30%, financial sion, he said.
The Math
advisers say, sparking a wave of If the couple were to invest the
early retirements. money in an even split of stocks
Rising interest rates can be a and bonds, Mr. Tegtmeyer said
boon for pension plans, since their they’d likely earn more than an av-
bonds can earn more interest, mak-
ing it less expensive to fund future
benefits. Unfortunately for those
Is Changing erage of 2.4% a year over time.
“And if he’s willing to take a little
more risk by putting more in
On Pension
nearing retirement, lump-sum pay- stocks, he might be able to grow
outs fall, because they are calcu- the lump sum to exceed the pen-
lated based on what future benefits sion by a significant amount,” said
cost today. Monthly pension checks Mr. Tegtmeyer.
don’t change with interest rates.
The situation has created a di-
lemma for employees: retire soon to
lock in a lump sum, or remain on
Lump Sums He said his clients may instead
use some or all of their lump sum
to purchase an annuity. At current
interest rates, an immediate annu-
the job and risk reduced payouts if ity would pay the couple about
interest rates continue to rise. $2,600 a month, versus $2,150 for
“For a lot of people, it’s one of the pension. The gap between the
the biggest financial decisions annuity and monthly pension pay-
they will make, since usually the ment is likely to narrow once the
pension represents a good chunk client’s pension plan updates the
of their money,” said Larry Persh- lump sums, and payouts decline.
ing, a financial adviser in Chicago.
According to a 2022 survey by Should I retire early to get a
the U.S. Bureau of Labor Statistics, higher lump sum?
15% of private-sector workers have To get the $540,000 lump sum be-
access to a pension plan. U.S. Cen- fore the payout falls, Mr. Tegt-
sus Bureau data shows that 16% of meyer’s client would have to retire
Americans age 65 and older re- in the next few months, about a
ceive income from a private-sector year sooner than he had planned.
pension plan. If he were to work another year,
Workers in pension plans that their finances, including 401(k) ac- Many retirees feel more secure he’d earn his $70,000 salary. But
15%
update their lump sums annually counts that have lost ground this having an income that doesn’t his lump sum is likely to fall by as
may still be able to get 2021’s year. fluctuate with the markets. Be- much as 20%, or $108,000, and he
higher lump sums, but only if they Because the decision to retire cause pensions protect retirees would also see some of a $30,000
retire soon. requires financial planning and an from running out of money, they early retirement incentive reduced
Ford Motor Co. recently told analysis of priorities, “I wouldn’t Of private-sector workers have can make sense for those who ex- based on the new interest rates.
potential retirees they have until accelerate my retirement just for access to a pension plan pect to live long lives. “In his case, working another
the end of November to notify the this situation,” said Steve Vernon, About 50% to 80% of workers year financially doesn’t make
company if they want to retire by a former pension actuary and choose the lump sum, depending sense,” said Mr. Tegtmeyer, who
Dec. 1, the deadline to cash out president of Rest-of-Life Commu- on factors including the company said his client is in good financial
ILLUSTRATION BY DANIEL DOWNEY
pensions before higher interest nications, which provides webinars rates it uses to calculate lump sums and industry, according to consult- shape to retire.
rates reduce the plan’s payouts. and workshops on retirement and how the change will affect your ing firm Willis Towers Watson. For For others, the calculation is
At KFC, three top executives, planning. projected payout. Also ask when some, the attraction is that it pro- less clear-cut, depending on the
including the U.S. chief operating “A lot of people see their lump you’d need to notify the company if vides flexibility with a pot of impact on expenses and income.
officer, recently told parent com- sum and think, ‘Wow, I’m rich,’ but you want to retire to secure a money to leave to heirs or draw on Retiring earlier may mean higher
pany Yum Brands Inc. that they that’s the extent of their thinking,” higher lump sum, said Lou in emergencies. Many retirees feel health-insurance premiums, or it
will leave at the end of November said Mr. Vernon. Mazawey, a Washington-based prin- they are likely to earn a higher re- could mean skipping out on com-
due to rising interest rates’ impact Here are some key questions to cipal at Groom Law Group, who ad- turn by investing a lump sum than ing bonus payments and 401(k)
on the pension plan. consider. vises companies on benefits. they’d get with a monthly income. contributions.
ARTS IN REVIEW
MUSIC REVIEW | MARK RICHARDSON
F
rench indie-pop band
Phoenix is a case study in
consistency. The group
formed in Versailles in
1997 and by the time of
its 2000 debut album,
“United,” Phoenix’s defining for-
mula was already in place, as the
band skillfully mixed the hooks of
power pop, the romanticism of new
wave, and the smooth exteriors of
soft rock. Singer Thomas Mars had
a sweet voice and an ear for how
to phrase a melody, bassist Deck
d’Arcy knew how to craft memora-
ble lines that served the rhythm
and lodged in your brain, and gui-
tar-playing brothers Christian Maz-
zalai and Laurent Brancowitz were
models of taste and restraint.
In the early part of the 2000s,
Phoenix was often mentioned
alongside the garage-rock revival
that was all the rage in indie
rock—think the Strokes and the
Hives. While that made a certain
amount of sense in terms of musi-
cal structure, Phoenix at its heart
has always been a pop project
EMMA PICQ
“Wolfgang Amadeus Phoenix,” the
French quartet had a bona fide
classic on its hands. Two records
in the 2010s were less notable but ‘Alpha Zulu,’ the new record from Phoenix, sees the group, which was founded in Versailles in 1997, continuing its proven sonic formula.
still strong, and the band returns
this week with its seventh album,
“Alpha Zulu” (Loyauté/Glassnote), Weekend. Its gliding structure, and danceable “Season 2,” Mr. Mars pop number that follows, “Arte- shuffle with an appealingly dinky
out Friday, its best full-length of- with glimmering keyboards and an- frames new love in terms of binge- fact,” he takes in images of beauty drumbeat that finds Mr. Mars sing-
fering since “Wolfgang.” other elastic bassline, is breezy and watching—“I’ll be the number you around him and ponders what’s real ing with an extra twist of yearning.
Here we have to mention con- supremely confident, and serves as adore, sure / But hold the thought inside of him—“I’m looking for an By the time of the closing
sistency again—while “Alpha Zulu” a reminder of just how long Phoe- before you ask what’s new in Sea- artefact / A piece of me that’s still “Identical”—the record’s most dy-
is definitely better than 2013’s nix has been making effortlessly in- son 2.” And on the chiming electro- intact, yeah.” namic track, with a gradual build
“Bankrupt!” and 2017’s “Ti Amo,” delible pop songs. While there are quite a few that goes from hushed tension to
the difference in quality and style Phoenix likes to toy memorable lines and fragments, glorious release—Phoenix has
is still subtle. Occasionally, the two with concepts that high- Phoenix’s music is about the tunes made a convincing case for stick-
most recent records could get a lit- light the members’ Euro- more than the lyric sheet, and it’s ing with what it does best. It’s rea-
tle sleepy, as Phoenix leaned into pean identity—one of the often hard to extract much mean- sonable to wonder if the French
the atmospheric balladry that also big hits from “Wolfgang” ing from the words alone—“Your quartet will ever experiment with
comes easily to the group. Here, was “Lisztomania,” a ref- feet are hurting less with mocca- its core sound and try something
from the start, there is a bit more erence to a Ken Russell sins” from “Tonight” is a typically new—onetime peers the Strokes,
pep and energy. Mr. D’Arcy comes biopic about the Hungar- intriguing but cryptic aside. The for example, eventually branched
up with the first of many mesmer- ian composer, while “Ti lovely “Winter Solstice” is a slow out into dark electronica and rum-
izing bass parts on the record on Amo” was built around a and dreamy song that brings to bling funk. But the latter outfit has
the opening title track, and Mr. loose theme about Italy. mind the pure atmosphere of Air, also made several bad records.
Mars plays around with vocal pro- “Alpha Zulu” was re- another band from Versailles that With a lengthy run of strong LPs
cessing and phrasing, punctuating corded in a wing of the Phoenix befriended early in its ca- that now includes “Alpha Zulu,”
the song with a surprising “Whoo, Louvre, and here and reer. “After Midnight” is a nervy the steady and surefooted Phoenix
ha!” as he moves into a massive there Phoenix sprinkles new wave cut with a perfectly continues to soar.
chorus. The catchiness quotient is in tidbits about artistic placed synthesizer on the chorus
even higher on the following num- representation and cre- that gives it a grin-inducing emo- Mr. Richardson is the Journal’s
ber, “Tonight,” a duet with Ezra ative expression. On the tional boost. And late in the record rock and pop music critic. Follow
Koenig of kindred spirits Vampire new album’s percolating “My Elixir” is a charming organ-led him on Twitter @MarkRichardson.
SPORTS
JASON GAY
FROM TOP CLOCKWISE: MITCHELL LEFF/GETTY IMAGES, VINCENT CARCHIETTA/USA TODAY SPORTS, ERIC GAY/ASSOCIATED PRESS
Phillies to be in the World Series,
either. In fairness: I don’t think the
Phillies expected to be in the
World Series, either. At least not
in early June.
But I do know that Philadelphia
feels like the place to be in sports
at the moment. It’s certainly not
those deadbeats in New York, or
Boston, or Los Angeles. Not even
Tuscaloosa can make a claim.
I haven’t even gotten to the fact
that the Philadelphia Flyers are
5-2-1, tied for a respectable second
in the NHL’s Metropolitan Division.
Or the fact that the Philadelphia
Union are headed to the Major
League Soccer Cup final for the
first time after Sunday’s thumping
of New York City FC. They’ll face
LAFC Nov. 5.
(If you’re asking me if, for the
sake of this column, I’m airbrush-
ing over the wobbly 3-4 start
(heading into Monday’s play) of
Doc Rivers and the championship-
dreamy NBA Sixers—yes, whoosh
whoosh, that’s me blasting the air-
brush.)
I have all the evidence I need.
You know how journalists are—we
just need three flimsy examples to
prove our thesis. If I see a trio of
people walk onto an
airplane in Spider- Goosing this con-
Man pajamas, then fidence are those
it’s official: Every- Phillies, who have
one’s wearing Spi- sprinkled magic
der-Man pajamas dust on their city
onto airplanes. and the baseball
Likewise, Phila- playoffs. Despite a
delphia’s the sports hearty payroll, Phil-
capital of the uni- adelphia stumbled
verse. I printed it, out of the gate, and
so it must be true. by June they re-
It’s time for dopey placed manager Joe
columnists to start Girardi with decaf-
spelling everything feinated interim
with PH’s for F’s— Rob Thomson. They
phantastic, phun, wiggled into the
phabulous, playoffs as the
phaithphul. third team from the
The Eagles are NL East behind the
rolling. They’re roll- Clockwise from top: the Eagles’ A.J. Brown and Jalen Hurts; the Braves and the
ing so much that Union advanced to the MLS Cup final; the Phillies in the World Series. Mets, and in Octo-
the NFL cogno- ber, they’ve been
scenti have ac- more or less invin-
cepted their rolling- ing, and win- As for the Super Bowl—we’re cible—bouncing the favored Cardi-
ness and pushed ning. And not even halfway through the 17- nals and Braves before sinking the
onto other stories—Geno Smith tions. Plus the Eagles play in the winning. And not, you know, los- game NFL season, let’s not book Padres in the NLCS to bring on a
and the reborn Seattle Seahawks; NFC East, until very recently, the ing, at all. our laps on Scottsdale golf courses fall classic with the powerhouse
Christian McCaffrey’s craftiness discount salvage supply store of I’m not saying the 1972 Dol- just yet. But if the threat doesn’t Houston Astros.
with the San Francisco 49ers; Tom professional football. phins should put away their cham- come from the Cowboys or Giants, The Phillies stole Game 1 with a
Brady’s dour body language on the Wow, was I wrong. The Iggles pagne flutes!—but these unblem- who’s beating the Eagles in the furious—I mean phurious—come-
Tampa Bay sideline. Philly’s curt have surpassed even the most ished Eagles are very much for NFC? Do you feel confident in the back in Houston that underlined
35-13 dismissal of Pittsburgh Sun- hopeful early predictions. Philadel- real. Oddly their greatest competi- Minnesota Vikings? Still-.500 San the Team of Destiny vibes. Enter-
day barely made a ripple. phia possesses one of the league’s tion might come from their sud- Francisco? Brady? ing a three-game run in the Phil-
It isn’t a shocker the Eagles are sturdiest defenses—and head denly ascendant division, where The script has been flipped. lies’ home park, the series is tied
good. After an upbeat finish to last coach Nick Sirianni has built an of- the Cowboys and Giants are both Philadelphia’s not the underdog 1-1 heading into Monday’s play,
year’s regular season, there was fense that plays to the multiple 6-2 and even Dan Snyder’s Wash- town, parrying their own low ex- and the outcome is anyone’s guess.
plenty of optimism about the bird- strengths of quarterback Jalen ington Sadness Machine is hanging pectations and tired cheap shots Houston has all the tools neces-
based football concern, but I was Hurts. Hurts (the former Alabama around at 4-4. about Santa Claus and snowballs. sary to prevail, but do you really
snobby about it. Second-year QB who transferred to Oklahoma) NFC Least? It’s very possible the road to the want to bet against Philadelphia
coach, second-round quarterback, has done what he’s so often done Not anymore. I’m a little sad Lombardi will have to go through right now?I don’t.
a 2021 wild-card round wipeout to as a quarterback: ignored doubts about it, to be honest. That divi- the Eagles’ noisy nest. In January. And I’m not even wearing Spi-
the Buccaneers….I had my hesita- of idiots like me, and kept on lead- sion was reliable comedy. You want a piece of that crowd? der-Man pajamas.
quarterbacks, Tom Brady and While a new generation of su- page and offered a different story. The Packers’ decline has also son, who the New York Jets se-
Aaron Rodgers. perstar quarterbacks like the Kan- Dragged down by weaker support- been sizable, if not as dramatic. lected a pick later, still has big
The struggles of Brady in sas City Chiefs’ Patrick Mahomes ing casts, Brady and Rodgers have They’re down from 26.5 points per question marks around him—just
Tampa Bay and Rodgers in Green and the Bills’ Josh Allen arrived, fallen short of the lofty standards game to 18.1, 26th in the league. like the other quarterbacks taken
Bay have been defining themes of the older ones hung on and played they set for so long. And in turn, Green Bay, on Sunday night in the first round that year. Then
this season. better than anyone could have they’re dragging down the league- against Buffalo, had opportunities in this year’s draft, a quarterback
The Buccaneers fell to 3-5 with imagined. wide scoring average. to capitalize after Bills turnovers didn’t go off the board until pick
a loss to the Baltimore Ravens on Brady, now 45 years old, be- The Buccaneers’ Brady-led of- but ultimately finished with their No. 20, when the Pittsburgh Steel-
Thursday night. The Packers are came the oldest quarterback to fense is now averaging 18.3 points fourth consecutive defeat. ers took Kenny Pickett. He has
also now 3-5 after their 27-17 de- win a Super Bowl two years ago per game, which ranks 25th in the To be sure, other teams have more interceptions than touch-
feat on Sunday night to the Buffalo and last season led the league in league. That’s a jarring drop from gone up and down. Blaming two of downs so far this season.
Bills. It’s entirely possible that passing. The 38-year-old Rodgers a year ago, when Tampa Bay was the biggest decliners for a league- As for Brady and Rodgers, they
both teams, which entered the is coming off back-to-back MVP second in the NFL with 30.1 points wide trend isn’t exactly the type of still have more than half the sea-
year as Super Bowl favorites, miss awards. Together, by thriving at a game. Between the two seasons, statistical rigor that finds its way son to turn their respective sea-
the playoffs entirely. points in their careers when most it’s a difference of nearly two into academic journals. But it also sons around. If they do, scoring
Their downturns also happen to players are scouting retirement touchdowns a game. demonstrates a broader point around the league might just start
account for the bulk of the NFL’s homes, they vaporized traditional “We’ve got to get better,” coach about the state of the league: scor- to feel normal again.
THE WALL STREET JOURNAL. Tuesday, November 1, 2022 | A13
OPINION
The Secret Meaning of Equity BOOKSHELF | By Barton Swaim
I
high court substituted for equal treat- tice Sandra Day O’Connor’s the filings in this Court is any
heard Students for Fair Admis- ment but for the corruption it majority opinion in Grutter, evidence that the purported n the years before he died in 1999 at the age of 91, C. Vann
sions argue that Harvard’s and encourages. which declared the use of race ‘beneficiaries’ of this racial Woodward held a semisacred status among professional
the University of North Caro- To begin with, its use is al- in admissions must be limited discrimination prove them- historians and American intellectuals generally. Arthur M.
lina’s use of race preferences most always disingenuous be- in time. selves by performing at (or Schlesinger Jr., with whom Woodward was often compared,
in admissions is unconstitu- cause its champions are bet- even near) the same level as called him the “conscience” of the historical profession and
tional and violates the 1964 ting that when the public those students who receive no the chief source of its “moral leadership.” Drew Gilpin Faust,
Civil Rights Act. The plaintiffs hears the word “equity,” Within academia, all preferences.” later the president of Harvard, called him “the twentieth
are asking the court to over- they’ll hear it in the diction- You could say much the century’s greatest American historian.”
turn its 2003 decision in Grut- ary sense as fair and equal understand it as a way same today. So what’s the pro- These and other encomiums, related in the first pages of
ter v. Bollinger, which upheld treatment for all. But within to favor some races at gressive answer? James C. Cobb’s biography of Woodward, sound politely
the use of race in admissions. the progressive world, every- It never is to look to see if exaggerated—the sort of thing you would say about an
Much of the attention in court one understands it as a way the expense of others. race preferences are actually accomplished scholar in his dotage. In fact, the liberal
Monday was on diversity. Less to push some races to the working for the people they intellectual class had by then begun to suspect Woodward of
examined was the principle of head of the line while shoving are intended to help. Rather, moving to the right. But the cultural authority he acquired over
equity, which undergirds it. others back—primarily “We expect that 25 years too often the answer is to the course of his long career is both remarkable and, in our
That’s no accident. The Ox- higher-achieving Asian-Amer- from now, the use of racial cover up failure. This is the fractured age, hard to imagine. That Woodward hadn’t pub-
ford Advanced Learner’s Dic- icans, in the case of college preferences will no longer be bitter fruit of equity, and it lished a book-length work of originally researched history since
tionary defines equity as “a admissions. necessary to further the inter- works two ways: First, stop re- 1955 suggests that his fame
situation in which everyone is Vice President Kamala Har- est approved today,” Justice quiring measures that expose arose as much from prevailing
treated equally”—precisely op- ris let this particular cat out of O’Connor wrote. Well, it’s now the failure, such as the SATs— cultural anxieties as from his
posite to how it is used by the the bag recently when she in- 19 years later, and the univer- as many colleges and universi- greatness as a historian.
modern American university. voked “equity” for how the ad- sities are arguing the contin- ties are doing; and if that Comer Vann Woodward,
There it is used to justify un- ministration will allocate re- ued use of race preferences is doesn’t work, classify Asian- born in 1908 in Vanndale, Ark.,
equal treatment of individual sources to deal with extreme more necessary than ever. Americans as “white” or was named for his uncle, a
applicants to achieve specific weather conditions. When “How do you know when “white adjacent” so their sociologist and ordained
racial outcomes. pressed on what exactly she you’re done?” Justice Barrett achievement doesn’t disturb Methodist minister from whom
This promises to be among meant, the White House was asked. the racial-equity narrative. Woodward inherited a hatred
the Roberts court’s most mo- vague, and the Federal Emer- It’s still a key question. “Equity is now the enemy of of segregation. He attended
mentous decisions. If the jus- gency Management Agency Evan Thomas, in a 2019 article equality,” says Edward Blum, Emory University in Atlanta and
tices do what the chief once al- quickly tried to clean up her for the Atlantic, asked the re- president of Students for Fair received a master’s degree from
luded to in an earlier case—get mess by saying that all in need tired Justice O’Connor about Admissions. “The vast major- Columbia in New York. Later he
America out of this “sordid would be helped. the deadline she laid out in ity of Americans of all races earned a doctorate at the
business, this divvying us up Which points to another de- Grutter. Her answer: “That hope that the Supreme Court University of North Carolina. In
by race”—the political earth- fining feature of equity. Its ad- may have been a misjudg- will use these cases to return 1932 Woodward traveled to the
quake may be even more dis- vocates hate having to define ment.” the law to the ideal of equal Soviet Union. That experience gave him, he wrote, “an exhila-
ruptive than the Dobbs v. Jack- in public what it really means. Some might say it’s worse treatment for all.” ration and wonder at the impetuous optimism and fervor of
son Woman’s Health That is also true of Harvard than that. It was deliberately Write to mcgurn@wsj.com. these new people of the new world.”
Woodward, who in the 1950s taught at Johns Hopkins and
later at Yale, made a name for himself as a historian with
The High Cost of Low Military Spending “Origins of the New South, 1877-1913,” published in 1951.
Historians at the time treated the post-Reconstruction South
as a mostly happy economic success, with segregation as an
Vladimir Pu- financial markets would tank. has frittered away. None of this is a secret. unfortunate by-product. Woodward rejected that assessment
tin has re- Japan and Korea would face The U.S. can’t bear the en- The Chinese can see the num- and presented the 1870s and ’80s as a period in which the
minded us of critical shortages of fuel and tire cost of deterring the revi- bers as clearly as we can. so-called Redeemers, the Southern wing of the Democratic
a forgotten food. Africa and Latin America sionist powers from conven- However tough we talk, if we Party, triumphed by reinventing white supremacy and allying
lesson of the would face massive economic tional as well as nuclear war, and our allies fail to provide themselves with Northern industrialists.
Cold War: De- damage. and our allies will have to in- an adequate military defense But the work that made Woodward one of the country’s
terrence isn’t Meanwhile, the failure to crease their efforts in the of our core interests in the most famous liberal intellectuals was “The Strange Career
GLOBAL
merely about deter Russia is leading to in- common cause. But even with Indo-Pacific, sooner or later of Jim Crow” (1955). That book was published at a moment
VIEW
preventing creased American spending in such countries as Japan and deterrence will fail. when white Americans had begun seriously to wonder why
By Walter
nuclear war. Europe. We have sent around Germany implementing robust Deterring great-power ad- they allowed the injustice of racial segregation to persist in a
Russell Mead
The U.S. $20 billion to Ukraine since increases in defense spending, versaries isn’t something you country supposedly founded on the principles of political
and its allies the invasion began and have America’s own spending must do with the back of your liberty. “Strange Career,” which began as a series of lectures
in the North Atlantic Treaty dispatched an additional rise. hand. Deterring the Soviet at the University of Virginia in 1954, held that Jim Crow laws
Organization failed to deter Mr. 20,000 troops to Eastern Eu- Union was a whole-of-govern- were not the organic and sadly inevitable outgrowth of
Putin from launching a conven- rope. All this makes sense, but ment effort, and there were slavery’s abolition, as many Americans, including venerated
tional war in February, and the the contrast with our Asian Ukraine’s lesson: times when American presi- historians, assumed. Segregation laws were rather the
costs of that failure—in blood commitments is sobering. Sen- dents and Congresses had to inorganic and historically aberrant innovations of populist
and tears, in the military and ators are currently working to Deterrence isn’t limit domestic spending to politicians and their supporters, imposed mainly in the 1890s.
economic support needed to send Taiwan $10 billion in U.S. about preventing meet the demands of the Cold Laws separating the races, Woodward contended, were a
keep Ukraine in the fight, in the aid over the next 10 years, half War. America rose to the chal- recent invention and could not reasonably be thought of as
economic shocks reverberating of what Ukraine has received only nuclear war. lenge in part because so many “immutable ‘folkways’ . . . impervious alike to legislative
across Europe, in the food and in eight months of war. The people still remembered the reform and armed intervention.”
fuel inflation threatening to de- U.S. announced plans to send horrors of World War II and The clear implication: Segregation could and should be
stabilize governments across six nuclear-capable B-52 This isn’t what Team Biden understood in their guts that torn down by force of law.
the Global South—continue to bombers to Australia Monday wants. Current plans call for even the most expensive de- The lectures, delivered four months after the Supreme
mount. morning, but the impact was significant reductions in infla- terrence policies are safer and Court in Brown v. Board of Education pronounced racial
If conventional deterrence offset by news that up to half tion-adjusted defense spend- cheaper than a great-power segregation in schools unconstitutional, were rushed into
also fails against China, and the American combat aircraft ing over the next decade. war. print as a book.
Beijing attacks Taiwan, the stationed in Japan will be The fiscal squeeze is real. A When major powers fight,
costs will be even higher. withdrawn, with no agreed decade of ultralow interest even conventional wars are
Ukrainians at least were able Pentagon plan for permanent rates led many politicians to unacceptably costly, disrup- In 1955 the Arkansas-born historian C. Vann
to flee from the war zone. replacements. think fiscal discipline was no tive and brutal. Their eco- Woodward showed that racial segregation
Trapped on their island, the The threats in Asia are longer an issue. That was a nomic and political conse-
people of Taiwan would have growing quickly. As China serious mistake. According to quences are unpredictable. wasn’t a ‘folkway’ but a recent invention.
no place to go as war engulfed proceeds with an aggressive the Congressional Budget Of- And as the Russian president
their homes. The shock to the and ambitious military fice, annual interest payments reminds us every time he rat-
world economy would be al- buildup, as North Korea’s nu- on federal debt, currently at tles his nuclear saber, there We learn from Mr. Cobb that Martin Luther King Jr. did not,
most immeasurably greater. clear arsenal relentlessly the eye-popping level of $399 are no guarantees a conven- as is frequently claimed, call “Strange Career” the “historical
The importance of the Taiwan grows and as the Sino-Russian billion, are expected to reach tional war won’t escalate into Bible of the Civil Rights Movement.” But he did relate the
Strait and the South China Sea entente deepens, the U.S. $1.2 trillion (3% of gross do- something more serious. book’s central argument in a way that showed he had read it.
to world commerce eclipses can’t afford to treat East Asia mestic product) by 2032. When it comes to war, an “Racial segregation as a way of life did not come about as a
that of the Black Sea. It isn’t as a secondary theater. Politi- Meanwhile, entitlement costs ounce of prevention beats a natural result of hatred between the races immediately after
only computer chips whose cal, diplomatic and economic will continue to rise, and do- pound of cure. But as an old the Civil War,” King told Montgomery, Ala., at the end of a
global supply chain would be stability in East Asia can mestic interest groups aren’t Roman writer put it 1,600 three-day march from Selma. “There were no laws segregating
crippled by war over Taiwan. come only after a return to going to stop developing years ago: If you want peace, the races then. And as the noted historian C. Vann Woodward,
Everything made in China, something like the military clever new ways for Uncle you must prepare for war. At in his book ‘The Strange Career of Jim Crow,’ clearly points
Vietnam, Korea and Japan predominance that 15 years of Sam to spend more money on the moment, America’s prepa- out, the segregation of the races was really a political
would become scarce. Global ineffectual American policy the home front. rations fall woefully short. stratagem employed by the emerging Bourbon interests in
the South to keep the southern masses divided and southern
labor the cheapest in the land.”
The SEC’s Rules Are Getting Unreal For all Woodward’s brilliance as a historian and facility as
a writer, his economic analysis was Marx-inflected and rather
muddled. “Origins of the New South” in particular was deeply
By Eric J. Pan fund, but in reality it will fun- Or take the SEC’s proposed system interfaces and hire influenced by Charles Beard, who interpreted historical events
T
damentally alter the product, cybersecurity risk-management staff to monitor compliance as the outcomes of brute economic interests. It did not seem to
he Securities and Ex- making it unattractive to in- rule. The commission is trying with that 80% investment pol- occur to Woodward that, for example, Southern leaders might
change Commission’s vestors and forcing sponsors to force fund managers to get icy. have favored free trade because it brought industry to their
job is to make markets to close and stop offering the telecommunications and inter- The commission itself ad- states; their antiprotectionism, in Woodward’s exposition,
work. But today’s SEC leader- funds. So much for healthy net providers to follow SEC- mits that this system would be had to be part of a deal involving economic imperialism, what-
ship—which as of August had capital markets. specified processes around risk outrageously expensive to im- ever that meant. Even so, he was right that segregation was
proposed 26 new rules this The SEC also has proposed assessments, information pro- plement, with its own econo- a recent invention, and that the South would not flourish,
year alone—is ignoring the several rules requiring market tection and record keeping. mists estimating an individual economically or culturally, as long as it remained in place.
real-world effects of its regula- participants to report infor- The SEC isn’t a cybersecurity fund would need to pay any- The prospect of reading 400 pages about the life of an
tions on market participants. mation such as securities specialist agency, but it wants where from $50,000 to academic historian, I have to say, did not fill me with eager
Its approach can be described loans or beneficial ownership funds to compel service provid- $500,000 to comply with the anticipation. The book is too long. Nonetheless Mr. Cobb, a
as “regulation by hypothesis.” to the commission in short ers to rewrite thousands of rule. These costs would be professor emeritus of history at the University of Georgia and
If not remedied, it will prove time frames—days or even contracts regardless. Perhaps passed on to investors in the the author of a superb book on Southern identity, “Away Down
disastrous. the SEC should first speak to more than 10,000 funds across South” (2005), comments intelligently on Woodward’s many
Examples of this pedantic the Federal Communications the U.S. scholarly works and essays. He is particularly sensitive to the
approach to regulation ‘Regulation by Commission, which directly History has shown that an ways in which Woodward, in writing about historical events,
abound. Take the SEC’s current hypothesis’ is bad for regulates the providers. expert SEC can protect inves- was also working out his own loyalties as a Southerner.
rule proposal on money-mar- It doesn’t end there. The tors and enhance our capital Woodward remained a committed liberal all of his life—
ket funds, which would require the capital markets. SEC has proposed an unwork- markets. We need today’s SEC which, in a sad commentary on the state of American higher
certain institutional money able expansion of the rule re- to show it still has the exper- education, is what got him in trouble. He opposed black
market funds to “swing,” or garding fund names. It is de- tise to develop rules that ad- separatism even as American universities went mad over racial
adjust the fund’s net asset minutes. But gathering infor- manding that funds reduce dress real problems and work identity; and he continued to support free speech even as
value in the event of net re- mation like this needs weeks subjective investment strate- in the real world. An SEC that campuses everywhere began imposing speech codes. In 1991
demptions. Swing pricing or hours. Faster reporting gies, like growth and value, treats regulation as an aca- Woodward published a favorable review of Dinesh D’Souza’s
would remove features that in- sounds good in theory, yet the into a handful of words in a demic exercise, in which bene- “Illiberal Education: The Politics of Race and Sex on Campus”
vestors value, such as same- benefits remain elusive. The name, supported by an 80% in- fits are theoretical and costs (1991) and expressed alarm that the modern academy was
day settlement and multiple SEC proposals fail to check if vestment policy rather than are irrelevant, is a danger to betraying the civil-rights movement. The response, even
net-asset-value strikes per day, the requisite information is being recognized as an overall all of us. among some of Woodward’s friends, was scathing. He may
and impose unpredictable even available or if it can be fund portfolio-management have been the “conscience” of his profession—but not when
costs. It may sound good in provided without a substan- objective. This would require Mr. Pan is president and he said what nobody wanted to hear.
theory, proposing a way to tial and expensive overhaul of funds to redesign systems, CEO of the Investment Com-
charge investors leaving a systems. purchase new data, rework pany Institute. Mr. Swaim is an editorial-page writer for the Journal.
A14 | Tuesday, November 1, 2022 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
T
he Supreme Court Justices exhibited su- tinues in neighborhoods and schools. By her As someone who served President to build that shining city on the hill
preme patience Monday in hearing logic, discrimination will be justified as long as Ronald Reagan as White House chief of Reagan’s dreams. The Gipper gave
of staff and Treasury secretary, and Americans a vision that touched our
nearly four hours of argument in a pair any segregation exists, no matter the cause.
who led five campaigns for three Re- hearts and minds, and he avoided the
of major cases involving race Mr. Waxman tried to justify publican presidents, I can say un- bellicosity that too often passes as
and college admissions. But Harvard’s lawyer can’t Harvard’s use of race by saying equivocally that Rep. Dan Crenshaw political rhetoric today. The secret to
the argument was worth the say when racial bias in itthat is merely one of many “tips” is spot-on about the future of the Re- his success was that he was inspira-
time, because it exposed some the school uses in making publican Party and our nation (“A tional, not angry.
unhappy truths about those admissions will end. judgments about whom to ad- Time for Choosing for Republicans,” As Election Day approaches, Re-
who believe in the necessity of mit—like whether a student is op-ed, Oct. 28). publicans should listen to the wise
discriminating by race. the child of an alumnus, or an Astutely echoing Reagan’s famous words that helped Reagan win two
The Justices are considering challenges to the athlete. speech at the 1964 GOP convention, terms in the White House and nur-
admission practices of Harvard and the Univer- Doesn’t that mean race will be determinative Mr. Crenshaw wrote with clarity that ture a generation of conservatives.
sity of North Carolina, in particular that they in some cases, Chief Justice Roberts asked. “I do the choice this Election Day is a sim- We should ignore the incessant bit-
ple one: “Will we sell our votes to terness that comes from what Mr.
discriminate illegally against Asian-Americans concede that,” Mr. Waxman said. The Chief re-
politicians promising us prosperity if Crenshaw refers to as “opportunists .
in favor of other races. (Students for Fair Admis- plied, “so we’re talking about race as a determin- only we give them more of our . . quick to label anyone and everyone
sions v. Harvard, and SFFA v. UNC.) ing factor in admission to Harvard.” Mr. Waxman money? Will we choose to be free— a ‘RINO’ or ‘establishment sell-out.’”
This means revisiting Grutter v. Bollinger said yes “just as being, you know, an oboe player acknowledging the risks and chal- And above all, we should fall in line
(2003), which said schools could use race as one in a year” when the school orchestra needs an lenges that inevitably accompany with Reagan’s 11th commandment:
factor in admissions in the name of achieving di- oboe player “will be the tip.” freedom—or will we choose to be de- “Thou shalt not speak ill of any fel-
versity. Justice Sandra Day O’Connor also fa- The Chief then uttered lines likely to be re- pendent? Will we, as Reagan said, low Republican.”
mously wrote in Grutter that the use of race to membered: “We did not fight a Civil War about ‘believe in our capacity for self-gov- Mr. Crenshaw understands, as Rea-
achieve diversity probably wouldn’t be needed oboe players. We did fight a Civil War to elimi- ernment, or abandon the American gan did, that America was born from
in 25 years. nate racial discrimination.” Revolution and confess that a little the majestic vision of individual free-
That was 19 years ago, and on Monday several intellectual elite in a far-distant capi- dom and self-reliance. We risk losing
It also became clear during the four hours
tal can plan our lives for us better both of those high values if Republi-
Justices pressed the question about when racial that “diversity” is an all purpose word intended than we can plan them ourselves?’” cans cannot remain united in defense
preferences would end. Seth Waxman, Harvard’s to skirt the “strict scrutiny” that courts must use For conservative Republicans like of them.
advocate, admitted that the school is trying hard when assessing racial preferences. Diversity me, answering that question properly JAMES A. BAKER III
to get to a race-neutral future but sees no end seems to be whatever the schools say it is for will determine whether we continue Houston
in sight for preferences. their purposes, and in many cases it is a subter-
Elizabeth Prelogar, the U.S. Solicitor General fuge for race. If the diversity standard is allowed
and an impressive advocate, said explicitly that to continue to justify discrimination, as a practi-
“I just don’t think it’s tenable to read” Grutter cal matter the lower courts will be obliged to de- Who Will Answer the Call of Duty Tomorrow?
to say the Court had suggested a timetable. She fer to colleges nearly all the time. This will es-
said using race the way the schools do could con- sentially put schools beyond the reach of judicial In their pitch to prospective ser- The civilian secretaries’ plaint for
vice members (“Uncle Sam Wants You recruitment reminded me of a line
tinue as long as their interest in diversity is review on race in admissions.
for a Military Job That Matters,” op- from the film “Broadcast News”
“compelling.” Oral arguments aren’t perfect clues to how ed, Oct. 25), Christine Wormuth, (1987): “Wouldn’t this be a great
The clear implication is that the schools can the Court will decide cases, but the skepticism Frank Kendall and Carlos Del Toro, world if insecurity and desperation
discriminate by race for years to come. And any- toward racial preferences by a majority of the secretaries of the Army, Air Force made us more attractive?”
one who knows anything about the men and Justices was clear. Their doubts are well placed. and Navy, overlook a critical cause of KRISTIN MOOREFIELD SIMPERS
women who run today’s universities, and how Discrimination by race is uniquely pernicious, the recruiting crisis. The applicant Alexandria, Va.
they believe racism is “systemic” in American as American history shows. pool is a generation that has been
life, knows that the schools will never stop using The Supreme Court was wrong in Grutter in raised to, at best, question America’s A countrywide process of recruit-
preferences. 2003 and Bakke in 1978 to tolerate discrimina- worth, and at worst, deplore its exis- ment to reach talented individuals is
If you believe America is fundamentally rac- tion by race, but at least it suggested some time tence. It isn’t surprising that these needed at the high-school level, led
ist, then you believe that discriminating by race limit. Harvard and UNC would like a blank check young Americans are increasingly un- by those who have already served. I
interested in wearing the uniform. No was one of those students, and after
will be justified forever. Justice Sonia Soto- to discriminate by race as long as they want. The
number of diversity, equity and inclu- aimlessly flunking out of junior col-
mayor came close to saying this explicitly be- Court would do a service to the country, and sion trainings will restore this miss- lege, I wandered into the local re-
cause she said “de jure segregation” continues America’s principle of equality under the law, by ing national pride. cruiter’s office to ask, “Would it be
in the U.S. Her evidence is that segregation con- telling them their time is up. Fortunately, America still produces possible to fly jets in the Navy?” I
men and women willing and able to was informed that no jet pilots were
serve. This was evident last year in currently needed, but “we can turn
Climate Doomsday Is Nigh—Again Kabul, where young Marines stared
down evil and death, offering hope
you into a nuclear star.” Following
three years of training, I ran the nu-
H
uman beings, the wretches, continue the global food system. According to the re- and life. And it was true 10 years ago clear reactor in a successful espio-
to disappoint the savants at the United port, about seven gigatons in CO2 reductions— in Kandahar of the soldiers who nage submarine in the Pacific. After
Nations, and never more than on cli- saved my life after an IED blast took leaving the Navy, my grade-point av-
roughly equal to those from today’s global nat-
my legs. But if American society and erage rocketed up and took me to the
mate change. The global body announced last ural gas production—by 2050 will need to come culture continues to teach our sons UCLA School of Medicine.
week that despite all of the world’s climate sac- from people eating less meat. and daughters that this country isn’t Service in the military can be
rifices and trillions of dollars in renewable The U.N. report suggests taxing foods based worth defending, then I fear the next transformational to so many young
spending, we’re all still doomed unless man- on their carbon emissions so that meat be- generation of capable Americans may minds. Military leaders need to bring
kind makes radical changes in lifestyles and comes so expensive people have no choice but not care to answer the call of duty. this message to the languishing
standards of living. to go vegan. Don’t discount the possibility that CAPT. JASON CHURCH, USA (RET.) bright students across the country.
The 2015 Paris climate agreement required the U.S. and European climate left will eventu- Chairman, Veterans On Duty ROGER C. DUNHAM, M.D.
countries to commit to reducing their emis- ally embrace this idea. Prime Minister Jacinda Milwaukee Santa Barbara, Calif.
sions to keep the world from warming more Ardern recently announced that New Zealand
than 1.5 degrees Celsius above pre-industrial farmers will soon pay a tax on their methane-
levels. It’s already warmed about 1.1 degrees. emitting sheep and cow burps. Human Imperfection Is No Strike Against God
Not that the alms offered up by President Biden But even government-compelled diets won’t Reviewing Telmo Pievani’s book engineer, never mind an omniscient,
and European leaders will do much good. make a difference if China keeps building coal “Imperfection” (Oct. 26), David Ba- omnipotent deity.” Of course, intelli-
According to the U.N. report, all climate pol- plants. This is one reason the $3.8 trillion of re- rash agrees that human beings are gent-design theory doesn’t need to
icies currently in place will result in warming newable investment over the last decade has re- “marvels of unintelligent design,” claim perfection in nature or in man
of 2.8 degrees. Most countries haven’t imple- sulted in fossil fuels declining only to 81% from adding that we are “shot through to find evidence of a creator who
mented policies to meet their emissions tar- 82% in energy consumption. The U.N. now says with deficiencies that wouldn’t earn comprises all perfections, and whose
gets. But even if they did, temperatures would more than $4 trillion must be spent annually to even a passing grade for a novice bio- perfections we see only dimly re-
still rise by 2.6 degrees. And if Western coun- meet the Paris climate goals. Nice of them to be flected in his creation.
tries meet their “net-zero” goals? The world so free with other people’s money. On the contrary, as novelist Robert
would warm 1.8 degrees. The climate lobby has spent more than 30 Should a ‘Green Card’ Be Penn Warren put it beautifully, “it
would have been a thing of trifling
Ponder that. Even if Europe and the U.S. years preaching apocalypse to goad countries Enough to Vote in America? and contemptible ease for Perfection
banish fossil fuels from the electric grid, ban to purge fossil fuels. Most Western elites have In “Citizenship Is Essential to Vot- to create mere perfection. To do so
gas-powered vehicles, and find a way to cap- joined the lobby. But publics around the world ing” (op-ed, Oct. 27), Prof. Bradley would, to speak truth, be not creation
ture CO2 from factories, the world still simply aren’t willing to make the sacrifices in Smith doesn’t address the compelling but extension.” In creating the world,
wouldn’t avoid the U.N.’s climate doomsday. standards of living that extreme climate advo- reason noncitizens should vote: gov- God extended the astounding gift of
One reason is that China, which emits two- cates insist on. ernment accountability. Virtually all existence to something other than
thirds more CO2 than Europe and the U.S. com- Our sincere advice would to be drop the noncitizens are permanent residents himself, which, necessarily, means to
bined, has only committed to peaking its emis- doomsday act, which people don’t believe, and (holders of “green cards”) and pay something less than perfect.
sions by 2030. focus instead on policies to adapt to a warmer U.S. taxes on their worldwide income TUCKER LANDY
Thus, the U.N. report says drastic changes planet and mitigate any damage if the worst like the rest of us. Recall that a cen- Frankfort, Ky.
tral, founding principle of this nation
in human behavior are needed. To take one ex- happens. It beats standing in the public square
was “no taxation without representa-
ample, about a third of emissions come from with a sign saying “the end is near.” tion.” Allowing all taxpayers to vote Will They Ever Apologize?
would advance principles of democ-
The early ballots show record vot-
Targeting Campaign Donors in Arizona racy and government accountability.
MICHAEL C. ALCAMO
ing in Georgia, discrediting the left’s
narrative of voter suppression (“The
D
New York
‘Jim Crow 2.0’ Lie” by Kimberley
emocrats have failed to pass restric- Proposition 211 says donors to any group
Strassel, Potomac Watch, Oct. 21).
tions on political speech in Congress, that “promotes, supports, attacks or opposes” Americans welcome immigrants
Turns out black voters are much
so they’re taking the fight to state bal- a candidate within six months or an election or and hope they will choose to become
smarter and better at filling out regis-
lots. The latest salvo is a little-noticed measure any public communication that refers to a can- citizens. But to let them vote before
trations than the left gives them credit
in Arizona that would require disclosure of the didate within 90 days of a primary would have that is a slap in the face to me and
for. Joining the hysteria were the MLB,
others who passed the test and did
“original source of monies used for campaign their identities publicly disclosed. That would Delta and Coca-Cola. Since the narra-
all the right things to earn the privi-
media spending.” easily include any grassroots groups that advo- leges of citizenship.
tive has been debunked, I’m waiting
The Voters’ Right to Know Act, or Proposi- cate on single issues if they so much as mention for an apology, or at least Gilda Rad-
IRENE HOLLAND
tion 211, would require organizations that ad- the name of a candidate up for election. ner’s “never mind,” from all three.
Mount Pleasant, S.C.
dress political issues during an election season The measure would also cover money spent ANDRE GEORGE
Paradise Valley, Ariz.
to disclose the identity of all donors who give on “research, design, production, polling, data
more than $5,000, “regardless of whether the analytics, mailing or social media list acquisi- Politics of Loan Forgiveness
monies passed through one or more intermedi- tion or any other activity conducted in prepara- Reading your editorial “The Legal
aries.” The ballot language avers that the peo- tion for or in conjunction with [other political Fight Over Student Loans” (Oct. 24),
Pepper ...
ple of Arizona “affirm their desire” to stop communications].” That’s our emphasis, and one has to ask whether President Bi- And Salt
“dark money.” wow. “Any other activity” could mean, well, den even cares whether he wins in
THE WALL STREET JOURNAL
Most Arizona voters have heard little about anything. “People who give $5,000 can take care court. He has already gotten out of it
the measure, since local opponents haven’t put of themselves,” former Arizona Attorney Gen- a political bump in advance of the
up much of a fight. Ballot measures about trans- eral Terry Goddard told Tucson.com. “I’m sorry, midterms. There is little or nothing
parency in elections tend to do well with voters that’s just the way it is.” further to gain at this point. A smart
who haven’t focused on the issue before they We haven’t found the part of the First strategist might even ask whether it
is better to leave student loans as a
get to the voting booth. Amendment that says it doesn’t apply to people
campaign issue for 2024 and not risk
Transparency and sunshine are happy words, with more than $5,000 to spend on politics. If a broader court ruling that could
but in reality disclosure laws have become a the measure passes, it will run into a thicket of limit executive-branch overreach.
weapon used by the left to intimidate conserva- lawsuits challenging its constitutionality as HENRY BARRON
tives from engaging in politics. Groups trawl re- well as how it conflicts with Arizona’s state con- Denver, N.C.
cords for names and then organize social-media stitution. Arizona’s federal lawsuits go up to the
campaigns to harass and discourage donors. liberal Ninth Circuit Court of Appeals, but the
Letters intended for publication should
Americans looking to participate in campaigns Supreme Court ruled last year in AFP v. Bonta be emailed to wsj.ltrs@wsj.com. Please
can, and often do, see their names dragged that “the deterrent effect” of disclosure rules include your city, state and telephone
through the mud. Many donors decline to en- is “real and pervasive.” number. All letters are subject to “I understand not being able
gage, and political speech is chilled before it It sure is. Arizona voters can do a public ser- editing, and unpublished letters cannot to find a matching sock
be acknowledged.
even happens. vice by nixing this at the ballot box. but where’s my other pant leg?”
THE WALL STREET JOURNAL. Tuesday, November 1, 2022 | A15
OPINION
T
Kenmore, N.Y. court after an arrest for misdemeanor north of Pennsylvania, is “desperate
his village of 15,000 in Erie domestic-abuse charges. He hasn’t for it.” He’d need help to keep that
County, immediately north entered a plea, and the judge released promise, though, since the Legisla-
of Buffalo, lies squarely in him on his own recognizance because ture codified the ban into law in
Kathy Hochul country. New state law prevented him from setting 2020. “I want to see New York as a
York’s Democratic gover- bail. “Benefield will cost Hochul the state that’s exporting energy to other
nor was born in Buffalo and repre- election,” a housewife says. states,” Mr. Zeldin says. “I’d love to
sented the area in Congress before Nick Langworthy, the state Repub- see our state exporting energy to
becoming lieutenant governor in lican chairman, is running for New other countries.”
2013. A young Republican Party York’s 23rd Congressional District, a New York is “filled with a tremen-
worker tells me that the Democrats solidly Republican open seat to the dous amount of resources and oppor-
have “a 2-to-1 enrollment advantage” south of here. As the warm-up act be- tunity that right now is going deliber-
in Kenmore, but we’re standing in a fore Mr. Zeldin’s appearance, he de- ately untapped,” he says. “The same
TUNKU VARADARAJAN
hall packed with supporters of Rep. livers an old-fashioned provincial people who advocate for a ban on the
Lee Zeldin, Ms. Hochul’s Republican stemwinder, pacing the stage, bellow- extraction of natural gas in New York
challenger, who hails from Long Is- ing his words, calling for responses will cheer on Joe Biden when he runs
land’s Suffolk County, more than 450 from the crowd. He describes Ms. off to Saudi Arabia and Venezuela for
miles away. Most statewide polls Hochul, who succeeded Andrew oil after cutting off Russian imports.”
show Ms. Hochul, once a prohibitive Cuomo after his August 2021 resigna- A Lee Zeldin rally in Kenmore, N.Y., Oct. 27. And pro-fracking Pennsylvania—
favorite, leading only by single digits. tion, as an “accidental governor” where the average oil-and-gas worker
whose “time is up.” He is unworried of American Politics. Mr. Zeldin needs portrays herself in campaign ads as a earns more than $100,000 a year—is
that New York hasn’t elected a Re- to get “up toward 40% of the city crime-fighter. It would be fair to call “barely scratching the surface com-
In a Democratic town publican governor since George Pat- vote to win statewide,” Mr. Barone her the weakest incumbent governor pared to the potential that can be un-
aki won a third term in 2002. He says says. Only one poll, by Quinnipiac, seeking election in New York since locked here in New York.”
north of Buffalo, the Mr. Zeldin is “unleashing new votes.” shows him in the vicinity—at 37%. Malcolm Wilson in 1974. Wilson, who Mr. Barone adds further context to
Republican draws an In an interview afterward, Mr. Mr. Zeldin’s math differs a little. ascended to the governorship when Mr. Zeldin’s plaint. “Upstate,” he
Langworthy says Mr. Zeldin has spent “If you get less than 30% of the city Nelson Rockefeller became Gerald says, “has real grievances against city
enthusiastic crowd. “the last year and a half crisscrossing vote,” he tells me, “you can’t win this Ford’s vice president in 1973, man- domination. They’re stuck with high
the state with his message of restor- race. If you get 35% or more, it starts aged less than 42% of the vote taxes, and these fracking and pipeline
ing safety and opportunity to New to become really difficult to lose the against Democrat Hugh Carey. bans.” Mr. Cuomo took upstate New
The Oct. 27 rally gives voice to Yorkers.” It has resonated “across the race.” His team has “consistently “This is a Democrat town we’re in York for granted, moving left to pro-
loathing every time the governor’s political spectrum, particularly in seen our polling for a while now in right now,” Mr. Zeldin says of Ken- tect himself against primary opposi-
name is mentioned. Some 700 peo- New York City, where crime is the No. the low 30s, which is fantastic.” He more, “and we’re going to beat Kathy tion. “Suddenly thrust into the gover-
ple—retired cops, small-business 1 issue, even among Democrats.” He says he’s made gains with Asian- and Hochul in this county. We’re actually norship,” Mr. Barone says, “Hochul
owners, healthcare workers, home- says Mr. Zeldin has “spent a lot of Dominican-American New Yorkers, going to win the town of Hamburg, seems to have done the same on is-
makers, sales reps—are present. time building relationships in the but adds that his campaign is also where she grew up.” sue after issue, leaving her suddenly
Most are locals. Raucous and indig- Asian and Hispanic communities that “focused on getting the highest turn- He derives this confidence, he vulnerable. Has Lee Zeldin persuaded
nant, they wave placards that say have been particularly affected by out possible throughout the reddest says, not only from his campaign’s upstaters that Hochul is a traitor to
“Zeldin/Save Our State.” Save it from crime rates.” election districts,” such as Staten Is- polling, but from the evident support her home region?” If so, he may have
what? I ask a dozen of the attendees Siphoning urban votes from the land and the Bay Ridge neighborhood he’s received upstate for his promise a clear shot at upsetting her.
before the rally kicked off. Democrats would seem to be the key of Brooklyn. to end the prohibition on fracking
All say they need saving from bad to a Zeldin victory. New York City Mr. Zeldin’s opponent may be his that Mr. Cuomo imposed in 2014. “I Mr. Varadarajan, a Journal con-
economic conditions, high taxes and cast 38% of the statewide vote in trump card. Ms. Hochul has run a strongly support the state reversing tributor, is a fellow at the American
crime. Ten of them cited the case of 2018 and 35% in 2020, says Washing- lackluster campaign, seemingly obliv- its ban on the safe extraction of natu- Enterprise Institute and at New York
Adam Benefield, a man who allegedly ton Examiner columnist Michael Bar- ious to crime until a very recent—and ral gas,” he says. It would “create University Law School’s Classical Lib-
shot his wife dead in front of their one, a former editor of the Almanac unconvincing—pivot, in which she jobs, generate revenue, revitalize eral Institute.
T
Blue” only to discover that said crea- marily responsible. and try to tell voters that election de- becoming the first Republican
wo forms of denialism are on ture has been—evidently for some On issue after issue, instead of ac- nial is the primary challenge they elected governor since 1982.
the ballot in next week’s mid- time—very much dead. knowledging the problem and offer- face, it is probably no accident that a On immigration it’s a similar
term elections. Democrats In their response to voters’ con- ing to fix it, Democrats are denying state like Nevada—which according story. With illegal border crossings
hope that historical denial—the re- cerns about the state of the country, the problem exists at all. That same to Congress’s Joint Economic Com- up dramatically in the first 21
fusal by a disturbingly large number Democratic candidates across the poll indicated that inflation, the mittee has one of the highest infla- months of the Biden administration
of Republican candidates to ac- country are performing an uncanny economy, immigration and crime are tion rates in the country—is also a and hitting new records, Americans
knowledge the legitimacy of the impersonation of the shopkeeper in the four most important issues fac- key target for Republican gains in are understandably uneasy about the
2020 election result—will prompt the sketch who insists that the de- ing the country. both Senate and House. implications of apparently unfet-
enough voters to shy away from the ceased bird is in fact not deceased, On crime, it’s not Republican pro- tered immigration. But as recently
GOP at least to deprive it of a Sen- but “just resting” and “pinin’ for the pagandists but voters in deepest blue as September, Vice President Kamala
ate majority. fjords.” From inflation to crime, states like New York and Oregon, Harris was still insisting the border
But the other form of denialism On the campaign trail and in de- who are highlighting the daily reality is “secure.”
looks likely in the end to prove more bate studios in the last few weeks, they refuse to acknowledge of life under Democratic rule. In both Again, the political ramifications
toxic and potent for voters: the re- denial of the reality of voters’ experi- the problems they helped states, cities have seen surges in of this reality-denial are stark. In
jection by Democrats of the present ences seems to be the strategy the crime and disorder in the past two counties along the Texas-Mexico bor-
economic and social reality of the Democrats have adopted as their create. Voters are noticing. years. Yet their leaders mostly insist der, Republican support is surging.
country and their role in bringing it chosen method of persuasion. that there’s nothing to see here. Some of the most striking results
about. Two years after control of the en- In last week’s New York gubernato- next week are likely to come in these
In politics, as in business, it’s tire federal government was handed On each of these concerns, denial- rial debate, Republican challenger Lee congressional districts, cementing
never a good idea to tell people that over to the Democrats, polling indi- ism characterizes the Democrats’ re- Zeldin complained that incumbent recent trends toward the GOP.
what they see before them isn’t real. cates that Americans are, to put it sponse. Joe Biden insisted in October Kathy Hochul “hasn’t talked about It’s not wrong to call out continu-
It is tempting, but always a mistake, mildly, unimpressed. In the latest that the economy was “strong as locking up anyone committing any ing election denial by Republicans.
to insist that the very evident flaws Harvard CAPS-Harris poll, conducted hell.” But while growth was solid last crimes.” Ms. Hochul responded, “I But Democrats’ refusal to acknowl-
of the thing they have only recently Oct. 12-13, 63% of respondents think quarter and unemployment remains don’t know why that’s so important to edge the reality of the conditions
bought from you are illusory, and the country is on the wrong track, up low, the most pressing economic re- you,” suggesting a detachment from their own policies have helped pro-
that there is absolutely nothing from 47% in early 2021. ality for the most voters remains an the reality in which so many of her duce will be the crucial factor if—as
wrong with it. Now not all the country’s prob- inflation rate that, at over 8%, is rap- fellow New Yorkers live. seems likely—they go down to an un-
There may be no better illustra- lems can be laid at the Democrats’ idly eroding real wages, forcing up With denialism like that, it’s deniable electoral defeat.
Elect the GOP to Keep IRS Auditors From Knocking on Your Door
By John Thune of accountability. These pages have stepping accountability. to shield middle-income Americans barring any of the new IRS funding
F
called attention to last year’s mas- We won’t stop with the data from their new auditing regime, but from being used to audit taxpayers
ew differences between Demo- sive breach of taxpayer privacy, breach. A Republican majority would all 50 Senate Democrats rejected an who earn less than $400,000.
crats and Republicans are when personal data ended up in the make sure that IRS reform focuses amendment Sen. Mike Crapo (R., And when the Senate returns to
sharper than their approaches hands of the left-leaning news site first on the treatment of taxpayers, Idaho) proposed to the Inflation Re- session after the midterm elections,
to the Internal Revenue Service. Re- ProPublica. It’s been nearly 17 at which it is notoriously terrible. In duction Act that would do just that. one of my first orders of business
publicans believe the IRS’s priorities months since that improper disclo- 2021 the agency answered 11% of the will be introducing legislation with
should be fairly administering the law sure was used by ProPublica, as well 282 million phone calls it received. Sen. Chuck Grassley (R., Iowa) to
and keeping Americans’ interactions as the administration and Democrats Yet less than 5% of the $80 billion Under Biden, the agency give Congress a direct say in how
with the agency simple and few, in Congress, to advance a wish list of Democrats gave to the IRS in the In- these new IRS funds are used. If our
which was a central achievement of liberal tax policies. Yet there has flation Reduction Act was dedicated is bent on squeezing more bill becomes law, the new IRS fund-
our 2017 tax-reform law. Democrats been no accountability for the to improving customer service. In- revenue without oversight ing will be frozen until the agency
seem to value revenue above effi- breach or demand for answers from stead, the bill, passed along party presents a coherent plan to Congress
ciency or accountability and are in- Democrats in power. At best, that’s a lines, prioritized squeezing more rev- or accountability. for how it would be used. If Con-
tent on creating a far bigger and reckless lack of oversight; at worst, enue for Green New Deal-style poli- gress disagrees with what has been
more intrusive enforcement-focused it condones an outrageous violation cies, with more than half of the IRS proposed, the plan can be rejected
agency. With the narrowest of majori- of America’s privacy rights. money going to enforcement. Without a protection in law, the through a newly created resolution
ties they have implemented radical If the GOP takes the Senate in the That’s why Sen. Susan Collins (R., IRS’s new enforcement money is of disapproval.
changes to the IRS while refusing to midterm elections, that won’t stand. Maine) and I have crafted a bill that bound to make middle-income Amer- Our bill would also force the IRS
provide accountability and oversight. Using the chamber’s committee gav- would force the IRS to meet basic icans’ lives harder—it’ll be enough to to comply with a consistent and
If Republican majorities take Con- els, we will hold hearings, investi- customer-service thresholds—such hire four new enforcement agents strict reporting process so that the
gress, that will change. gate wrongdoing, and bring adminis- as answering the phone—before the for every town in the U.S. But if Re- agency is transparent with the
Like the Obama IRS, President Bi- tration officials before Congress to agency can use any of its new money publicans take Congress, Mr. Crapo’s Americans funding it. The IRS re-
den’s has been marked by political provide answers to the American to hire more enforcement agents. provision would be able to prevail in ceived a sum equal to six times the
bias, management failure and a lack people. There will be no more side- Democrats talk about their intent the form of a new bill he and I wrote agency’s 2022 budget under the In-
flation Reduction Act; taxpayers de-
serve to know where all that money
WORLD NEWS
Israel’s Netanyahu
Aims for a Comeback
JERUSALEM—As Israel with the slimmest of parlia-
heads to its fifth election in mentary majorities, polls show.
four years, Benjamin Netan- Some of the most recent polls
yahu has been relentlessly cam- showed Mr. Netanyahu’s right-
paigning across the country wing coalition with a slight
from the back of a delivery edge of 61 out of 120 seats
needed for a majority in the
By Dov Lieber, 120-seat parliament, or Knes-
Aaron Boxerman set. Other polls showed a 60-60
and Shayndi Raice tie. His main opponent, Prime
Minister Yair Lapid—leader of
truck outfitted as a mobile the centrist Yesh Atid party—is
campaign stage, imploring vot- polling at about 27 seats. Poll-
ers to come out on election day. sters give his largely center-left
Some call it the Bibi-bus, using coalition around 56 seats.
Mr. Netanyahu’s nickname. An alliance of Arab-led par-
Mr. Netanyahu, 73 years old, ties that opposes Mr. Netan-
is trying to stage a political yahu could help Mr. Lapid
LEE JIN-MAN/ASSOCIATED PRESS
WORLD WATCH
IRAN INDIA GERMANY
Protesters Defy Call Nine Arrested After Transport-Emissions
To Remain at Home Fatal Bridge Collapse Decision Is Delayed
Iranian student protesters de- Police in western India arrested Germany is postponing politi-
fied a call to halt demonstra- nine people Monday as they inves- cally sensitive decisions on re-
tions from one of the country’s tigated the collapse of a newly re- ducing greenhouse-gas emis-
top military commanders, facing paired 143-year-old suspension sions in the transport sector
down security forces at universi- bridge in one of the country’s until 2023 amid strong opposi-
ties and on the streets in sev- worst accidents in years, officials tion from one governing party to
eral cities Monday. said. The collapse Sunday in Guja- the idea of a universal speed
ROJAN SHRESTHA/NURPHOTO/ZUMA PRESS
Maj. Gen. Hossein Salami, the rat State plunged hundreds of peo- limit, officials said Monday.
commander of Iran’s Islamic Rev- ple into a river, killing at least 134. The libertarian Free Demo-
olutionary Guard Corps, directed As families mourned the dead, cratic Party, which controls the
his warning to protesters Satur- attention turned to why the pe- Transport Ministry, has long
day, saying they were fooled by destrian bridge collapsed, and who blocked the introduction manda-
Iran’s foreign adversaries and risk- might be responsible. The bridge tory speed limits seen in most
ing their future. “Today is the end had reopened four days earlier. of Germany’s neighbors.
of the riots. Do not go to the Inspector-General Ashok Ya- Experts say that limiting
streets anymore,” he said at the dav said those arrested include speeds on highways to 74.5
funeral of those killed in an attack managers of the bridge’s opera- miles per hour would save 2.6
on a shrine in the city of Shiraz. tor, Oreva Group, and its staff. million metric tons of carbon di-
Authorities have struggled to Gujarat authorities opened a case DEVOTION: Hindu worshipers performed rituals in a pond Monday as they honored the sun god oxide a year. A limit of 62 mph
quell the unrest that has oc- against Oreva for suspected cul- while celebrating the Chhath Puja festival in Bhaktapur, Nepal. would more than double the
curred almost daily since the pable homicide, attempted culpa- savings, according to Germany’s
death Sept. 16 in police custody ble homicide and other violations. THE PHILIPPINES laden mudslide. Nearly two mil- the South China Sea on Sunday, Environment Agency. Those an-
of a woman for allegedly violat- Authorities said the structure lion others were swamped by leaving a trail of destruction in a nual savings would make a sig-
ing Iran’s strict rules on how collapsed under the weight of More Than 100 Dead floods in several provinces, offi- large swath of the archipelago. nificant contribution to closing
women dress in public. More hundreds of people. A security In Storms, Mudslides cials said Monday. About 1.9 million people were the remaining emissions gap in
than 200 have been killed and video of the disaster showed it At least 53 of 105 people lashed by the storm, including Germany’s transport sector of
over 1,000 arrested in response shaking violently and people trying More than 100 people have who died—mostly in flash floods more than 975,000 villagers 118-175 million tons by 2030.
to demonstrations that began as to hold on to its cables and metal died in one of the most destruc- and landslides—were from Magu- who fled to evacuation centers Proposals released Monday
a defiant call for women’s rights fencing before the aluminum tive storms to lash the Philip- indanao province in a Muslim au- or homes of relatives. At least by the Economy Ministry would
and have transformed into a walkway crashed into the river. pines this year with dozens tonomous region, which was 4,100 houses and 40,180 acres close the emissions gap in all
movement demanding the Oreva officials couldn’t be more feared missing after villag- swamped by unusually heavy of rice and other crops were other sectors for the country to
downfall of the Islamic Republic. reached to comment. ers fled in the wrong direction rains set off by Tropical Storm damaged by floodwaters. meet its climate goals.
—David S. Cloud —Associated Press and got buried in a boulder- Nalgae. The storm blew out into —Associated Press —Associated Press
TECHNOLOGY: COVID SPURS FOXCONN TO SHIFT OUTPUT WITHIN CHINA B4
DJ TRANS À 0.06%
THE WALL STREET JOURNAL.
Twitter Inc. in his first days as identified as demonstrating a said. These employees can press conference, which could
its new owner. pattern of declining perfor- also receive some benefits, bring clues about whether the
The group is working on a mance, according to an inter- such as job-placement assis- Fed may reduce the size of fu-
range of initiatives to try to nal email reviewed by The tance, if they are let go, she ture rate increases or continue
bolster the platform’s user ex- Wall Street Journal and con- said. strong efforts to tame rising
perience and revenue, accord- firmed by a company spokes- Ford has about 30,000 sala- prices.
ing to people involved in the ef- woman. CEO Jim Farley has moved to streamline the white-collar workforce. ried employees in the U.S. Specifically, investors want
fort, while Mr. Musk continued These employees now have The U.S. auto maker made to know if December will mean
to publicly float potential the option of taking the sever- Those who instead choose went to all U.S. managers. moves to streamline its white- another 0.75-percentage-point
changes in a series of tweets. ance, rather than enroll in the the enhancement plan but fail The changes are intended collar workforce in recent rate increase or whether the
Mr. Musk’s team outlined enhancement plan, which can to improve won’t be eligible to simplify how managers con- months as part of a broader Fed will downshift to a half-
three pillars of its plan for the take four to six weeks, the for any severance, according front poor performance and effort to slash costs by about percentage-point move. Bets in
Please turn to page B4 email and spokeswoman said. to the Oct. 4 email, which provide an alternative to the Please turn to page B2 Please turn to page B10
INSIDE
NATHAN LAINE/BLOOMBERG NEWS
REBECCA COOK/REUTERS
INDEX TO PEOPLE
BUSINESS NEWS
Clawback
Efforts
Harley’s Electric Effort Hits Bump
LiveWire subsidiary’s erate with the flexibility of a
stock falls 12% since
Increased SPAC deal as quieter
startup to accelerate growth.”
Harley’s share price has
fared better than other U.S.
model fails to win fans
During BY BOB TITA
stocks, rising 16% since the
start of the year, compared
with a 17% drop in the S&P 500.
BRENDAN MCDERMID/REUTERS
a new rule last week on claw- Inc. have fallen about 12% SPAC mergers have had a
ing back executive pay, the since the merger in late Sep- tough time winning over share-
agency and federal prosecu- tember with a special-purpose holders. Shares of several high-
tors had begun ramping up ef- acquisition company, or SPAC. profile SPAC deals have col-
forts to recoup compensation The deal yielded about half lapsed, including electric-truck
from top executives whose the cash proceeds Harley an- maker Nikola Corp., sports-bet-
companies run afoul of ac- ticipated, with most of the ting company DraftKings Inc.,
counting rules or the law. SPAC investors withdrawing and space-tourism company
The new SEC rule will re- their money rather than hold- Virgin Galactic Holdings Inc. A LiveWire motorcycle at the New York Stock Exchange for the company’s Sept. 27 stock debut.
quire companies to try to re- ing LiveWire shares after the Companies that merged with
cover incentive pay from execu- deal went through, according SPACs since the start of 2020 bikes were priced at nearly “It’s a perfect bike for ur- called the S2 Del Mar that will
tives after significant financial- to a regulatory filing. are trading at an average of $30,000—as much as some of ban travel,” said Ryan Morris- cost about $16,000, and even-
statement errors, even where Investors’ tepid response to about $4 a share, according to Harley’s popular models with sey, president of LiveWire tually an S3 model that will be
no misconduct occurred. But LiveWire has led Milwaukee- data provider SPAC Research. gas engines—and too expen- Group. “It’s a fun way to get priced below the S2.
the agency already has been based Harley to put up more Harley has struggled to find sive for most riders interested around a city or a suburb.” Bubba Boswell, owner of a
more aggressive about using cash to fund the company, an- a winning strategy for its elec- in taking a flier on something About 60 of Harley’s 550 Harley dealership in Nashville,
existing powers to pursue such alysts said. Higher interest tric motorcycles, according to new, dealers said. dealers in the U.S. carry Tenn., said the lower prices
clawbacks where accounting vi- rates and a slowing U.S. econ- analysts. The first LiveWire Harley Chief Executive LiveWire motorcycles. Dealers for LiveWire models are criti-
olations are alleged to stem omy, they said, are likely to model reached the market in Jochen Zeitz spared the said Harley has been careful to cal for attracting customers.
from misconduct, including undermine Harley’s forecast 2019 after almost a decade of LiveWire model when he axed avoid flooding the market with “If you’re new to motorcy-
from executives who weren’t last spring for LiveWire’s sales development. Harley executives other slow-selling models and LiveWires by doling out just a cling, they’re much easier to
directly involved. to expand from less than 1,000 wanted to tap into the growing smaller bikes in favor of Har- few bikes at a time to dealers. ride,” he said.
In the past year, the SEC has motorcycles this year to popularity of electric automo- ley’s big, expensive motorcy- The limited range of electric —Amrith Ramkumar
sued or settled with 11 execu- nearly 101,000 bikes and $1.7 biles with a high-performance, cles. Mr. Zeitz repositioned motorcycles’ batteries and a contributed to this article.
tives to recover past pay under billion in revenue in 2026. zero-emissions motorcycle. LiveWire for younger, price- shortage of public charging
provisions of a 2002 law, in- “While the market environ- For most regular Harley conscious riders, with an eye stations have held down de-
cluding nine executives in the ment has changed since last riders attracted to the distinc- toward overseas markets. The mand, dealers said. Watch a Video
past four months, said Andrew December when we decided to tive throaty rumble of Harley’s motorcycles recharge their bat- LiveWire this year lowered Scan this code
Boutros, chair of law firm list the company, we make deci- gasoline engines, the quiet teries from the energy created the price of its flagship One for a video on
Dechert LLP’s U.S. white-collar sions for the long term,” a Har- whirl of LiveWire’s electric by braking, giving the bikes model to about $22,000. The how the market
practice for Chicago and Wash- ley spokeswoman said. motor was considered a non- longer ranges in stop-and-go company plans to roll out a for SPACs
ington, D.C. The provisions had “LiveWire has the ability to op- starter, dealers said. The first traffic than in highway driving. lighter-weight model next year dried up.
been used infrequently before
that, said Mr. Boutros, who
with his colleagues recently
briefed clients about the in-
creased enforcement.
The dialing-up of enforce-
ment is intended to press cor-
is created
have warned that prosecutors
weighing charges or settle-
ment terms will consider
whether companies have ad-
opted clawback policies—and
whether they have actually
sought to recover past pay.
“Compensation clawback
policies matter, and those pol-
icies should be deployed regu-
larly,” Marshall Miller, princi-
pal associate deputy attorney
equal.
general, said at a September
conference in New York. “A
paper policy not acted upon
will not move the needle.”
The SEC declined to com-
ment. A Justice Department
memo in mid-September asked
staff to explore other ways to
reward companies that pursue
clawbacks, a spokeswoman
said, including how to shift
the burden of financial penal-
ties from shareholders to peo-
ple more directly responsible.
Clawback provisions, either
in pay contracts or separate
corporate policies, typically let Global events are shining a light on the importance of
companies demand that cur-
rent and former executives re- energy security for the United States. Canada’s oil is
turn compensation they re-
ceived in the wake of a
trusted oil. It should be the preferred energy supplier
financial restatement, individ- to the US. Canada is recognized as an indisputable
ual misconduct or damage to
the company’s reputation. leader in environmental, social and governance (ESG)
Most large public companies
have such policies; just 21 in the
standards. So, if not Canada, who are you entrusting
S&P 500 don’t, while more than
90% allow recouping both cash
your country’s energy security to? Find out more about
and stock-based pay, according why Canada is the solution.
to ISS Corporate Solutions.
Among those reporting no
clawback policy: Alphabet Inc.,
Berkshire Hathaway Inc. and
Wynn Resorts Ltd. Alphabet and
Wynn Resorts declined to com-
ment. Berkshire didn’t respond
to a request for comment.
Number of companies
disclosing changes to financial
statements
Little ‘R’
500 revisions
Big ‘R’ re-
statements
400
300
200
100
This material is distributed by DDB Canada on behalf of the Canadian Energy Centre. Additional information is on file with the Department of Justice, Washington, D.C.
0
2017 ’18 ’19 ’20 ’21
Note: 2021 data exclude restatements by
special purpose acquisition companies
Source: Audit Analytics
B4 | Tuesday, November 1, 2022 * *** THE WALL STREET JOURNAL.
TECHNOLOGY WSJ.com/Tech
TOKYO—Foxconn Technol-
ogy Group is planning to shift
consists of several plants as
well as dorms and amenities
such as canteens. The company
Advisers
some production from its has said it employs as many as
Covid-struck iPhone factory in 300,000 workers there. Continued from page B1
central China to other sites in Meanwhile, Foxconn’s Shen- platform before the deal’s com-
the country, people familiar zhen campus also produces pletion, said Ross Gerber, chief
with the matter said, as many some iPhones. Besides assem- executive of Gerber Kawasaki
workers frightened by the out- bling products, the site serves a Wealth & Investment Manage-
break have left the factory. key role for Foxconn in prepar- ment, a Santa Monica, Calif.,
Foxconn has been strug- ing for mass production of investment firm that put up un-
gling to contain a Covid-19 some new products. Shenzhen der $1 million as an outside in-
outbreak in its Zhengzhou fa- is where the contract assembler vestor in Mr. Musk’s $44 billion
cility, the world’s biggest as- often first translates a brand’s takeover.
sembly site for Apple Inc. blueprints and prototypes into The plan includes changing
AH CHI/AVALON/ZUMA PRESS
smartphones. There, hundreds a detailed manufacturing plan, the platform by expanding user
of thousands of workers have according to the people. verification and improving the
been largely shut off from the Since the pandemic started subscription offerings to be-
outside world for more than in early 2020, Beijing has re- come less reliant on advertis-
two weeks after the company peatedly said the virus is too ers, he said. It would also add
announced the introduction of potent to allow any easing of ways for content creators to
closed-loop operations, which its zero-Covid policy. Still, make money on the platform,
means that workers are al- Some production by Apple’s biggest supplier will be moved within China to a plant in Shenzhen. businesses such as Foxconn so that they could earn a living
lowed to move only between must convince their employees on it like many creators do on
their dorms or homes and the will shift some of its Zheng- control policies—which include lowing a two-month lockdown that there is little risk coming TikTok and YouTube, he said.
production lines. zhou iPhone production capac- swift and sweeping lockdowns, in Shanghai that disrupted Ap- to work when there are signs Mr. Musk has moved quickly
Some workers have refused ity to Shenzhen, they said. mass testing, compulsory quar- ple’s supply chain. of an outbreak. to put his imprint on the com-
to go back to work for the fear About 10% of the global antines and, in certain cases, In recent days, Apple has Foxconn, formally known as pany as a nonconformist, sur-
of catching Covid, while others iPhone production capacity is business closures. told its suppliers to more ac- Hon Hai Precision Industry rounding himself with a group
have left the site, The Wall likely to be affected with the On Monday, Shanghai Disney tively plan on increasing pro- Co., is seeking to allay employ- of trusted advisers and techni-
Street Journal has reported. In disruption, according to ana- Resort, including the theme duction outside China, the ees’ fears. On its account on cal talent.
recent days, videos geotagged lysts, including Ming-Chi Kuo, park and shopping areas, were people said. social media WeChat, Foxconn Among them is Jason Cala-
near the Foxconn site went vi- who follows Apple’s supply closed again under city Covid Apple’s supply chain plays a posted an audio clip of a re- canis, a longtime tech entrepre-
ral on China’s social-media chain at TF International Se- restrictions, the resort said. major role in China’s manufac- covered Covid patient, who neur and investor who encour-
platforms, recording groups of curities. Last week, Apple’s Earlier this year, Shanghai Dis- turing industry, providing mil- likened the symptoms to aged Mr. Musk’s initial bid to
people walking on highways or chief financial officer said that neyland, which is part of the re- lions of jobs directly and indi- catching a cold. buy Twitter in April. Mr. Cala-
through farm fields carrying supply is constrained for the sort, was shut for months under rectly. Foxconn—Apple’s “I had called my family and canis took to Twitter in recent
their luggage. new iPhone 14 Pro models the earlier blanket lockdown of biggest supplier—shipped I had also cried,” the person days to solicit and share ideas.
Still, Apple and Foxconn ex- amid strong demand. the city. Universal Beijing Re- about $32 billion of products said in the clip, posted on Sun- On Sunday night, he asked us-
ecutives expect that impact A Foxconn spokesman re- sort closed for cleaning last overseas from Zhengzhou in day. “But I didn’t even cough.” ers in a Twitter poll how much
from the disruption at Zheng- ferred to a statement issued week after at least one positive 2019, making its branch in the The post also links to a gov- they would pay to be verified
zhou on overall iPhone ship- Sunday, in which it said the case was traced to the park. city the country’s largest ex- ernment website page from by Twitter and have the blue
ments would be limited in the company is providing transpor- Foxconn’s situation also porter, according to the Statis- last week that interviewed a check on their account that
short term, partly because tation services for workers who highlights the potential risks tics Association for Foreign local epidemiologist, who ex- goes along with that. Options in
Foxconn’s sites in the southern want to leave. Apple didn’t re- of Apple’s heavy dependence Economic Relations and Trade plained that the current infec- his poll ranged from wouldn’t
Chinese city of Shenzhen are ply to a request for comment. on China for manufacturing. of China, a government-backed tion in the Zhengzhou area was pay to $15 a month.
already equipped to produce The disruption at Foxconn is Apple told some of its contract think tank. Altogether, the of Omicron BA5.2, a variant Some engineers from Tesla
some of the latest iPhone among the latest examples of manufacturers earlier this Foxconn group accounted for with mostly light symptoms. Inc., where Mr. Musk is chief
models, the people familiar the economic and societal toll year that it wants to boost 3.9% of China’s exports in —Wenxin Fan executive, met with Twitter
with the matter said. Foxconn from China’s rigid pandemic production outside China fol- 2021, the company has said. contributed to this article. staff after the takeover to re-
view the platform, two people
said.
Stake in BY MIKE COLIAS in an expected influx of U.S. battery supplies, but are tak- represented employees work-
ing the verification process, al-
lowing longer posts and giving
users more options to choose
$3.5B
from the pandemic. GM and South Korean battery ble, and the industry’s move to cell factories—two in Kentucky Twitter’s board and made him-
The position, disclosed supplier LG Energy Solution. produce more EVs is likely to and one in Tennessee—and self sole director, according to a
Monday in a filing with the The northeast Ohio facility lead to the loss of factory jobs, likely will develop more. regulatory filing Monday, as
Securities and Exchange Com- opened in late August. analysts and studies have said. For the UAW, organizing the outlined in the merger agree-
mission, adds to the billion- The union says the com- Historically, a new factory Annual company profit wiped battery plants is a key strate- ment. He said in a tweet Mon-
aire’s myriad holdings across pany has been unwilling to opened by one of the tradi- out by 2019 strike gic step after years of failed day afternoon that the move
entertainment and leisure. He recognize the so-called card- tional three Detroit auto mak- attempts to unionize factories was temporary.
also owns the National Basket- check process, a tactic used by ers has had UAW representa- owned by foreign car compa- Mr. Musk has tapped allies
ball Association’s Houston organizers that is typically tion from the start, because of nies, including Nissan Motor to assist in the early days of
Rockets, Golden Nugget Hotel faster than holding a formal collective bargaining agree- to $22-an-hour range, the com- Co. and Volkswagen AG. The the transition. They include at-
& Casinos and restaurant election. The UAW said it has ments that cover hourly work- pany spokeswoman said. UAW- effort also follows a yearslong torney Alex Spiro, who has rep-
chains such as Del Frisco’s and filed a petition with the Na- ers in their U.S. manufacturing represented workers at GM, corruption investigation that resented Mr. Musk for
Bubba Gump Shrimp Co. tional Labor Relations Board operations. Because the Ohio Ford and Stellantis factories sent two former UAW presi- years, including in his legal
Mr. Fertitta’s roughly 6.9 on behalf of workers to hold plant is a joint venture with can make around $30 per hour. dents to prison along with sev- fight over his efforts to aban-
million shares of Wynn Re- an election at the Ohio plant. LG Energy and a separate legal In a statement, UAW Presi- eral union leaders. don his agreement to buy Twit-
sorts give him a $403.3 mil- Ultium Cells in a statement entity, it is up to the workers dent Ray Curry said Ultium GM was among the first ma- ter. Some of the people Mr.
lion position in the company, said it respects workers’ free- there to decide if they want to Cells earlier had expressed a jor auto makers to declare a Musk is bringing in aren’t new
based on Friday’s market close dom to choose union represen- be in a union, the companies willingness to recognize a sharp turn toward electric cars. to Twitter. Sriram Krishnan, an
of $58.30 a share. That would tation and the UAW’s efforts have said. card-check process for the for- The effort was an underlying investor and former Twitter
make Mr. Fertitta the second- to organize the plant: “Ultium Auto makers have outlined mation of a union, and ac- factor in the UAW’s 40-day product leader, tweeted Sunday
largest individual shareholder Cells will comply with the Na- plans for more than a dozen cused the company of delaying strike at GM factories in 2019 that he was helping Mr. Musk
of Wynn Resorts, according to tional Labor Relations Act, battery-cell factories in North workers’ organizing efforts. that wiped out about $3.5 bil- with Twitter “temporarily with
FactSet, behind only Elaine which protects our employees’ America, mostly joint ventures “Whether it is by card lion in annual company profit. some other great people.” Mr.
Wynn, who co-founded the right to freely decide union- with battery suppliers, such as check or union election, these UAW leaders saw some fac- Krishnan tweeted that he was
company with her former hus- ization through a voluntary LG Energy and Panasonic workers will be members of tory closures that year as a sign “still very much in my day job”
band, Steve Wynn. election.” Holdings Corp. Car companies the UAW,” he said. that GM was cutting costs to as a general partner at An-
Representatives for Wynn The Ohio factory is the first traditionally outsourced their GM has about 45,000 UAW- help pay for its EV investments. dreessen Horowitz.
Resorts didn’t return a request
for comment. Representatives
of Mr. Fertitta’s Fertitta Enter-
tainment Inc. also didn’t re-
turn a request for comment.
Shares of Wynn, down more
TuSimple Fires CEO Amid Board, Federal Probes
than 27% so far this year, BY HEATHER SOMERVILLE shared confidential informa- Investment in the U.S., known technology to an overseas ad-
closed up 9.6% in Monday AND KATE O’KEEFFE tion with Hydron Inc., a truck- as Cfius, into whether the com- versary.
trading to $63.90. Including ing startup with operations pany improperly financed and Mr. Chen didn’t respond to
Monday’s stock move values TuSimple Holdings Inc., a mostly in China and funded by transferred technology to Hy- a request for comment.
Mr. Fertitta’s stake at about self-driving trucking company, Chinese investors. The filing dron, according to people with The Journal also has re-
KELLY SULLIVAN/GETTY IMAGES FOR TECHCRUNCH
$442 million. said Monday it had fired its also said that TuSimple’s deci- knowledge of the matter. ported that the board in July
The disclosure comes as in- chief executive and co-founder, sion to share the confidential TuSimple’s stock plunged began investigating similar is-
vestors await the latest round Xiaodi Hou. information with Hydron more than 45% in Monday sues, including whether
of quarterly earnings reports The San Diego-based com- hadn’t been disclosed to the trading. Shares in the company TuSimple incubated Hydron in
from casino operators, which pany said in a news release board before TuSimple entered are down more than 90% for China without informing regu-
have so far said that demand and securities filing that its into a business deal with Hy- the year. lators, the TuSimple board or
remains strong despite surg- board of directors on Sunday dron. Investigators at the FBI and its shareholders. A June busi-
ing inflation. Over the sum- had ousted Mr. Hou, who was TuSimple said it didn’t SEC are looking at whether Mr. ness presentation from Hydron
mer, executives said, the re- also the board chairman and know whether Hydron shared Hou breached fiduciary duties viewed by the Journal named
covery of international travel chief technology officer. or publicly disclosed the confi- and securities laws by failing TuSimple as Hydron’s first cus-
and pent-up demand for in- Mr. Hou was fired in con- dential information. to properly disclose TuSimple’s tomer, and said TuSimple
person entertainment contin- nection with a continuing in- In a statement posted on relationship with Hydron, the would purchase from Hydron
ued to lift results for Las Ve- vestigation by members of the LinkedIn, Mr. Hou asserted his China-backed startup founded several hundred hydrogen-
gas casinos. MGM Resorts board, the release said. innocence and said his firing Xiaodi Hou speaks at an event in 2021 by TuSimple co- powered trucks equipped with
International and Caesars En- “Fundamentally, we lost was “without cause.” in San Francisco in October. founder Mo Chen that says it is self-driving technology. A
tertainment Inc. are slated to trust and confidence in Dr. “Unfortunately, the Board’s developing autonomous hydro- TuSimple spokesman said the
provide their latest quarterly Hou’s judgment, decision-mak- processes and conclusions have announced the day after The gen-powered trucks, the Jour- company has considered an
updates this week. ing, and ability to lead the been questionable at best,” Mr. Wall Street Journal reported nal reported. Federal investiga- agreement to buy freight
Wynn Resorts, which relies company as CEO,” TuSimple’s Hou wrote. “As the facts come that TuSimple and its leader- tors are also probing whether trucks from Hydron but isn’t a
more on its operations in the independent board of directors to light, I am confident that my ship, principally Mr. Hou, faced TuSimple shared with Hydron Hydron customer.
gambling enclave of Macau, said in a statement. decisions as CEO and Chairman, investigations by the Federal intellectual property developed Mr. Hou said in his state-
has suffered this year from the The securities filing said and our vision for TuSimple, Bureau of Investigation, Secu- in the U.S. and whether that ment that he fully cooperated
Chinese government’s strict that the board’s investigation will be vindicated.” rities and Exchange Commis- action defrauded TuSimple in- with the board and that “I
Covid-containment policies. found that TuSimple this year Mr. Hou’s termination was sion and Committee on Foreign vestors by sending valuable have nothing to hide.”
THE WALL STREET JOURNAL. Tuesday, November 1, 2022 | B5
B6 | Tuesday, November 1, 2022 THE WALL STREET JOURNAL.
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
32732.95 t 128.85, or 0.39% Trailing P/E ratio 20.27 22.40 3871.98 t 29.08, or 0.75% Trailing P/E ratio * 18.68 29.27 10988.15 t 114.31, or 1.03% Trailing P/E ratio *† 23.35 34.75
High, low, open and close for each P/E estimate * 17.47 18.80 High, low, open and close for each P/E estimate * 17.03 22.37 High, low, open and close for each P/E estimate *† 21.14 29.41
trading day of the past three months. Dividend yield 2.18 1.78 trading day of the past three months. Dividend yield * 1.75 1.31 trading day of the past three months. Dividend yield *† 0.99 0.65
All-time high 36799.65, 01/04/22 All-time high 4796.56, 01/03/22 All-time high: 16057.44, 11/19/21
COMMODITIES wsj.com/market-data/commodities
Metal & Petroleum Futures April 4.708 4.824 4.680 4.793 .192 76,869 Milk (CME)-200,000 lbs., cents per lb. Dec 95.2700 95.2700 95.1700 95.2000 –.0950 932,837
May 4.651 4.763 4.605 4.728 .172 86,371 Oct 21.83 21.83 21.81 21.81 –.02 4,526
Contract Open
Open High hi lo Low Settle Chg interest
Dec 18.84 19.15 18.75 19.00 .19 5,335 Currency Futures
Agriculture Futures Cocoa (ICE-US)-10 metric tons; $ per ton.
Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 2,297 2,355 2,295 2,335 33 112,161 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov 3.4095 3.4300 3.4095 3.4135 –0.0525 2,070 Corn (CBT)-5,000 bu.; cents per bu. March'23 2,310 2,358 2,307 2,343 31 90,337 Nov .6758 .6785 .6729 .6739 –.0051 754
Dec 3.4300 3.4435 3.3615 3.3750 –0.0540 102,891 Dec 696.50 700.00 684.25 691.50 10.75 614,003 Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec .6807 .6817 .6756 .6766 –.0051 258,718
Gold (CMX)-100 troy oz.; $ per troy oz. March'23 701.00 704.75 689.50 696.75 10.00 370,581 Dec 171.70 178.55 171.55 177.70 7.90 74,041 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Nov 1641.80 1641.80 1633.40 1635.90 –3.70 3,982 Oats (CBT)-5,000 bu.; cents per bu. March'23 169.50 175.10 169.40 174.05 6.30 81,386 Nov .7349 .7353 .7308 .7339 –.0011 360
Dec 1647.20 1648.50 1634.50 1640.70 –4.10 362,511 Dec 375.75 392.75 375.75 389.00 22.50 3,156 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec .7351 .7357 .7310 .7341 –.0011 134,333
Feb'23 1661.50 1662.70 1650.70 1654.90 –4.20 69,645 March'23 387.25 399.25 384.00 398.00 20.75 1,144 March 17.70 18.00 17.67 17.97 .39 323,365 British Pound (CME)-£62,500; $ per £
Soybeans (CBT)-5,000 bu.; cents per bu. May 16.73 16.90 16.70 16.89 .24 150,078 Nov 1.1601 1.1617 1.1466 1.1475 –.0142 1,574
April 1675.80 1677.00 1665.60 1669.50 –4.20 17,569
Nov 1400.00 1411.25 1385.50 1407.00 19.25 10,179 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Dec 1.1619 1.1629 1.1475 1.1486 –.0141 244,682
June 1689.40 1691.00 1681.20 1684.10 –4.00 8,475
Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan'23 1415.00 1424.00 1397.75 1419.50 19.25 245,887 Jan 34.17 .02 2,059 Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybean Meal (CBT)-100 tons; $ per ton. March 34.51 .01 2,817 Dec 1.0095 1.0099 1.0021 1.0041 –.0049 47,070
Nov … … … 1829.10 –65.50
Dec 434.00 440.50 421.10 428.10 2.70 144,192 Cotton (ICE-US)-50,000 lbs.; cents per lb. March'23 1.0194 1.0197 1.0131 1.0141 –.0051 325
Dec 1894.00 1917.50 1808.50 1831.70 –65.50 6,237
Jan'23 425.50 430.00 412.30 419.10 2.90 89,576 Dec 72.11 73.22 t 70.21 72.00 –.11 100,921 Australian Dollar (CME)-AUD 100,000; $ per AUD
Platinum (NYM)-50 troy oz.; $ per troy oz. Nov .6421 .6430 .6372 .6395 –.0019 175
Nov 939.40 –19.00 1 Soybean Oil (CBT)-60,000 lbs.; cents per lb. March'23 72.10 73.00 t 70.10 71.64 –.43 76,056
Dec 72.50 74.28 72.50 73.21 1.42 123,237 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Dec .6418 .6437 .6377 .6401 –.0019 163,614
Jan'23 947.10 952.60 928.30 930.10 –19.00 53,695 Mexican Peso (CME)-MXN 500,000; $ per MXN
Jan'23 69.55 71.44 69.55 70.61 1.40 93,609 Nov 211.05 213.50 205.00 206.35 –.85 370
Silver (CMX)-5,000 troy oz.; $ per troy oz. Nov .05030 .05036 s .05016 .05035 –.00002 8
Nov 19.200 19.200 18.970 19.125 –0.022 209
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Jan'23 200.10 204.40 199.60 201.10 .85 9,656
Nov 16.16 16.49 16.16 16.56 .43 762 Dec .05005 .05009 .04977 .05004 –.00001 279,494
Dec 19.200 19.225 18.865 19.119 –0.028 105,745 Euro (CME)-€125,000; $ per €
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Jan'23 16.54 17.00 16.54 16.99 .48 7,757 Interest Rate Futures Nov .9964 .9975 .9883 .9898 –.0069 8,091
88.39 88.65 85.30 86.53 –1.37 302,557
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
Dec 884.50 893.25 853.75 882.25 53.00 139,484 Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100% Dec 1.0000 1.0001 .9909 .9924 –.0069 653,357
Jan'23 87.06 87.36 84.16 85.40 –1.21 150,136 Dec 129-000 129-100 127-040 127-210 –1-22.0 1,467,101
March'23 895.25 911.25 872.00 899.25 50.25 79,293
Feb 85.70 85.87 82.88 84.10 –1.07 73,313
Wheat (KC)-5,000 bu.; cents per bu. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Index Futures
March 84.30 84.50 81.67 82.88 –0.95 98,068 Dec 121-010 121-080 120-030 120-160 –24.0 1,208,065
Dec 962.00 982.50 950.00 978.75 53.75 65,824 Mini DJ Industrial Average (CBT)-$5 x index
June 81.08 81.22 78.84 80.00 –0.66 123,876 March'23 120-300 120-301 119-270 120-060 –28.0 2,105
March'23 959.75 979.00 946.50 974.25 49.50 46,796 Dec 32920 32941 32617 32775 –121 76,604
Dec 77.39 77.39 75.41 76.44 –0.43 163,104 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec 110-290 110-305 110-120 110-190 –13.0 3,977,294 March'23 33063 33139 32855 33009 –120 1,166
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Nov 176.575 177.925 175.750 177.625 –.250 7,555 Mini S&P 500 (CME)-$50 x index
Nov 4.5400 4.6200 4.0861 4.1909 –.3589 1,208 March'23 111-045 111-080 110-220 110-280 –13.5 14,469
Jan'23 179.025 179.825 177.700 179.450 –.925 25,597 Dec 3911.50 3914.75 3872.25 3883.00 –28.25 2,279,972
Dec 3.7605 3.7831 3.6271 3.6741 –.0714 74,761 Cattle-Live (CME)-40,000 lbs.; cents per lb. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec 106-265 106-275 106-145 106-190 –9.0 4,132,569 March'23 3943.00 3946.00 3904.75 3915.00 –28.50 54,449
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Oct 150.375 150.675 146.775 146.775 –3.600 78 Mini S&P Midcap 400 (CME)-$100 x index
Nov 2.9100 2.9100 2.7200 2.8107 –.0959 3,141 March'23 106-292 106-315 106-222 106-262 –8.7 5,405
Dec 152.750 152.775 151.800 152.475 –.525 120,074 Dec 2439.00 2452.90 2422.00 2439.60 –1.40 50,938
2.5582 2.5794 2.4822 2.5257 –.0372 89,857
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 102-100 102-105 102-048 102-061 –4.7 2,208,444 March'23 2440.10 –2.20 1
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 86.625 86.825 84.425 84.925 –1.175 89,296
March'23 102-147 102-151 102-113 102-126 –4.6 2,197 Mini Nasdaq 100 (CME)-$20 x index
Dec 5.832 6.400 5.823 6.355 .671 105,949 Feb'23 89.125 89.550 87.950 88.450 –.400 49,020 Dec 11592.50 11595.00 11367.25 11447.25 –139.75 282,359
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Jan'23 6.092 6.617 6.086 6.607 .654 139,107 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Oct 96.9200 96.9225 96.9200 96.9200 .0025 381,782 March'23 11710.00 11710.00 11486.00 11563.75 –139.25 4,332
Feb 5.975 6.389 5.891 6.379 .585 58,758 Nov 465.50 470.00 459.10 461.60 –5.40 499 Nov 96.2225 96.2250 96.2150 96.2175 –.0075 372,501 Mini Russell 2000 (CME)-$50 x index
March 5.410 5.729 5.381 5.717 .441 97,232 Jan'23 457.90 461.10 452.60 454.00 –4.20 1,418 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 1852.50 1862.20 1835.00 1853.00 1.40 507,464
Dec 88-310 89-01 88-160 88-245 –18.5 16,452 March'23 1871.80 1876.70 1852.00 1869.20 2.30 286
Three-Month SOFR (CME)-$1,000,000; 100 - daily avg. Mini Russell 1000 (CME)-$50 x index
96.5325 96.5325 96.5225 96.5250 –.0050 617,668 Dec 2133.40 2147.00 2129.20 2134.90 –14.60 10,856
Bonds | wsj.com/market-data/bonds/benchmarks Sept
March'23 95.1050 95.1200 95.0450 95.0600 –.0650 1,176,381 U.S. Dollar Index (ICE-US)-$1,000 x index
Eurodollar (CME)-$1,000,000; pts of 100% Dec 110.68 111.54 110.59 111.42 .81 55,318
March'23 110.23 111.10 110.23 111.03 .82 1,069
Tracking Bond Benchmarks Nov
Dec
95.3150 95.3150
94.9300 94.9300
95.2975 95.3025 –.0225 139,353
94.8750 94.8900 –.0450 1,546,117
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week March'23 94.8250 94.8250 94.7300 94.7500 –.0800 933,708 Source: FactSet
highs and lows for different types of bonds
Total Total
return YTD total Yield (%) return YTD total Yield (%) Borrowing Benchmarks | wsj.com/market-data/bonds/benchmarks
close return (%) Index Latest Low High close return (%) Index Latest Low High
Broad Market Bloomberg Fixed Income Indices Mortgage-Backed Bloomberg Fixed Income Indices Money Rates October 31, 2022
1885.03 -15.7 U.S. Aggregate 4.980 1.580 5.210 1863.49 -14.9 Mortgage-Backed 4.990 1.810 5.380 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
U.S. Corporate Indexes Bloomberg Fixed Income Indices 1845.97 -13.3 Ginnie Mae (GNMA) 4.990 1.840 5.370 guide to general levels but don’t always represent actual transactions.
2734.50 -19.6 U.S. Corporate 5.930 2.130 6.130 1092.88 -15.1 Fannie mae (FNMA) 5.000 1.800 5.390 Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low
2694.73 -12.2 Intermediate 5.830 1.570 6.050 1675.32 -15.6 Freddie Mac (FHLMC) 4.990 1.800 5.370 Sept. index Chg From (%)
level Aug. '22 Sept. '21 Policy Rates High 3.3500 3.3000 3.3500 0.0900
3510.31 -31.0 Long term 6.130 2.940 6.370 n.a. n.a. Muni Master n.a. n.a. n.a. Low 3.0500 3.0700 3.0700 0.0200
Euro zone 1.25 1.25 1.25 0.00
n.a. U.S. consumer price index Bid 3.0700 3.0800 3.0800 0.0600
525.87 -20.9 Double-A-rated 5.160 1.840 5.320 n.a. 7-12 year n.a. n.a. n.a. Switzerland 1.00 1.00 1.00 0.00
Offer 3.0900 3.1200 3.1200 0.0800
All items 296.808 0.22 8.2 Britain 2.25 2.25 2.25 0.10
718.65 -19.8 Triple-B-rated 6.230 2.340 6.440 n.a. n.a. 12-22 year n.a. n.a. n.a.
Core 298.442 0.43 6.6 Australia 2.60 2.60 2.60 0.10 Treasury bill auction
High Yield Bonds ICE BofA n.a. n.a. 22-plus year n.a. n.a. n.a. 4 weeks 3.600 3.430 3.600 0.020
Overnight repurchase
n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan† International rates 13 weeks 4.070 4.000 4.070 0.045
n.a. U.S. 3.04 3.00 3.09 0.01 26 weeks 4.440 4.390 4.440 0.065
n.a. n.a. Triple-C-rated n.a. n.a. n.a. 521.42 -13.0 Global Government 3.070 0.840 3.250 Week 52-Week
Latest High Low
U.S. government rates Secondary market
ago
n.a. n.a. High Yield 100 n.a. n.a. n.a. 758.89 -9.5 Canada 3.410 1.430 3.780
Discount Fannie Mae
n.a. Global High Yield Constrained n.a. n.a. n.a. 340.69 -16.1 EMU§ 2.911 0.271 3.215 Prime rates
n.a. 3.25 3.25 3.25 0.25 30-year mortgage yields
U.S. 6.25 6.25 6.25 3.25
n.a. n.a. Europe High Yield Constrained n.a. n.a. n.a. 635.74 -16.4 France 2.700 0.150 2.980 Canada 5.45 5.45 5.45 2.45 Federal funds 30 days 6.437 6.617 6.812 2.452
Japan 1.475 1.475 1.475 1.475 Effective rate 3.0900 3.0900 3.1000 0.0800 60 days 6.531 6.780 6.988 2.477
U.S Agency Bloomberg Fixed Income Indices 454.34 -15.4 Germany 2.140 -0.370 2.400
1663.14 -9.2 U.S Agency 4.720 0.900 4.840 283.02 -3.9 Japan 0.780 0.310 0.910 Other short-term rates
1474.73 -7.7 10-20 years 4.700 0.790 4.820 492.35 -17.4 Netherlands 2.400 -0.200 2.720 Key Interest Rates Latest
Week
ago
52-Week
high low
3063.02 -26.6 20-plus years 5.070 2.010 5.240 794.33 -23.5 U.K. 3.600 0.720 4.690 Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are Call money
2431.80 -15.5 Yankee 5.670 1.790 5.840 n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
5.00 5.00 5.00 2.00
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds adjusted to constant maturities. Data are from weekly Federal Reserve
** EMBI Global Index Sources: ICE Data Services; Bloomberg Fixed Income Indices; J.P.Morgan release H.15. Commercial paper (AA financial)
Week Ended 52-Week Week Ended 52-Week 90 days 3.83 4.19 4.19 0.11
Oct 28 Oct 21 High Low Oct 28 Oct 21 High Low
Global Government Bonds: Mapping Yields Federal funds (effective)
6-month
1-year
4.49
4.56
4.43
4.57
4.49
4.57
0.06
0.14
Libor
One month 3.80486 3.57643 3.80486 0.08088
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in 3.08 3.08 3.08 0.08 2-year 4.40 4.51 4.51 0.45 Three month 4.46029 4.32686 4.46029 0.13975
Commercial paper 3-year 4.41 4.52 4.52 0.73 Six month 4.91586 4.87700 4.93186 0.21088
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session 5-year 4.22 4.32 4.32 1.14
Nonfinancial
One year 5.44829 5.36600 5.47557 0.34975
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points 7-year 4.14 4.23 4.23 1.36
Coupon (%) Maturity, in years Latest(l)-1 0 1 2 3 4 5 Previous Month ago Year ago Latest Prev Year ago
1-month 3.47 3.31 3.47 0.05 10-year 4.07 4.12 4.12 1.43 Secured Overnight Financing Rate
2-month 3.87 3.59 3.87 0.05 20-year 4.42 4.39 4.42 1.85
4.375 U.S. 2 4.499 s l 4.422 4.206 0.491 3-month 4.03 3.87 4.03 0.07 3.05 3.02 3.05 0.04
2.750 10 4.074 s l 4.009 3.802 1.555 Financial Treasury yields (secondary market) Value 52-Week
2.750 Australia 2 3.243 s l 3.222 3.316 0.611 -118.6 11.0 1-month 3.48 3.39 3.48 0.08 Latest Traded High Low
-124.7 2-month n.a. n.a. n.a. n.a.
1-month 3.48 3.25 3.48 0.02
1.250 10 3.765 s l 3.748 3.899 2.089 -26.8 52.8 4.03 3-month 3.97 3.89 3.97 0.05 DTCC GCF Repo Index
-30.8 3-month 4.02 4.03 0.11
6-month 4.35 4.29 4.35 0.06
54.840 3.065 0.023
Treasury 3.034
0.000 France 2 2.055 s l 2.003 1.805 -0.612 -243.6 -240.5 -111.3 Discount window primary credit
TIPS MBS 3.132 41.490 3.175 0.032
2.000 10 2.691 s l 2.603 2.725 0.282 -141.4 -127.8 3.25 3.25 3.25 0.25
-138.2 5-year 1.60 1.78 1.81 -1.88 Notes on data:
Treasury yields at constant 7-year 1.59 1.70 1.70 -1.47
0.400 Germany 2 1.942 s l 1.929 1.756 -0.580 -254.9 -247.9 -108.1 U.S. prime rate is the base rate on corporate
maturities 10-year 1.57 1.66 1.66 -1.14 loans posted by at least 70% of the 10 largest
1.700 10 2.143 s l 2.100 2.111 -0.104 -192.9 -191.6 -166.4 1-month 3.64 3.40 3.64 0.03 20-year 1.65 1.70 1.70 -0.72 U.S. banks, and is effective September 22, 2022.
3-month 4.14 4.05 4.14 0.05 Long-term avg 1.90 1.94 1.94 -0.60 Other prime rates aren’t directly comparable;
0.000 Italy 2 2.743 s l 2.600 2.850 -0.020 -174.7 -180.8 -52.1 lending practices vary widely by location;
2.500 10 4.320 s l 4.149 4.514 1.184 24.7 13.3 -37.6 Notes on data: Discount rate is effective September 22, 2022.
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates Secured Overnight Financing Rate is as of
0.005 Japan 2 -0.040 s l -0.050 -0.040 -0.101 -453.1 -445.8 -60.2 on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by October 28, 2022. DTCC GCF Repo Index is
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window Depository Trust & Clearing Corp.'s weighted
0.200 10 0.245 s l 0.242 0.252 0.100 -382.8 -377.4 -146.1 average for overnight trades in applicable
primary credit rate is charged for discounts made and advances extended under the Federal CUSIPs. Value traded is in billions of U.S. dollars.
0.000 Spain 2 2.204 s l 2.126 2.097 -0.526 -228.6 -228.2 -102.7 Reserve's primary credit discount window program; rate is average for seven days ended Wednesday; Federal-funds rates are Tullett Prebon rates as
2.550 10 3.234 s l 3.134 3.303 0.619 -88.3 -94.2 Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid of 5:30 p.m. ET.
-83.9 yields for all TIPS with remaining terms to maturity of 10 years or more; Sources: Federal Reserve; Bureau of Labor
0.125 U.K. 2 3.266 s l 3.198 3.917 0.707 -122.5 -121.0 20.6 Sources: Federal Reserve; for additional information on these rate data and their derivation, Statistics; DTCC; FactSet;
please see, https://www.federalreserve.gov/datadownload/Build.aspx?rel=H15 Tullett Prebon Information, Ltd.
4.250 10 3.510 s l 3.471 4.149 1.038 -56.3 -54.5 -52.2
Source: Tullett Prebon, Tradeweb ICE U.S. Treasury Close
3.6%
Economists think that this is the
higher minimum wage and better
relations with China, which were
strained under Mr. Bolsonaro.
Market enthusiasm for yet an- 5,000
mand that lifted the entire region,
especially Brazil with its soybean,
iron-ore and oil exports.
Commodity prices have soared
It is what Argentine economist
Marcelo Diamand called an “unbal-
anced productive structure”: Too
much competitiveness in primary
October unemployment rate other big Latin American nation 1982 ’90 2000 ’10 ’20 this year, but the trend is likely sectors stops the most complex sec-
tacking to the left might seem Note: In constant 2015 U.S. dollars more ephemeral: They peaked in tors from developing and spreading
strange. Back in 2019, investors Source: World Bank June, and the continuing deflation the gains. The power of agribusiness
cheered for Mr. Bolsonaro, who ad- of the Chinese property market has probably contributed to Brazil-
still extremely low. Moreover, they vocated privatizations and public- well this year, thanks to its economy doesn’t bode well for iron-ore. As ian investment being stuck below
think that average hourly earnings spending cuts. But hopes quickly being a mammoth exporter of com- Tom Miller at Gavekal Research has the Latin American average, and will
will be up 0.3% in October from soured, due to tepid economic fig- modities. This has kept inflation in pointed out, Brazil’s reliance on make it hard for Mr. da Silva to de-
September, which implies a gain of ures, Mr. Bolsonaro’s populist ten- check and allowed the central bank China has increased despite Mr. Bol- liver on his reindustrialization
4.7% from a year earlier. dencies and the rise of environmen- to raise interest rates. The real has sonaro’s rhetoric: 31% of its exports pledges, particularly with the coun-
Then again, the unemployment tal mandates in finance, which are risen against the U.S. dollar this went there in 2021, compared with try more divided than ever.
rate was 3.5% in January 2020, be- at odds with the accelerating defor- year. The Bovespa index is up more 20% at the supercycle peak. Depen- Mr. da Silva’s Brazil looks prom-
fore the economy was experiencing estation of the Amazon rainforest than 9%, and domestic bonds are dence on raw materials may be a ising compared with his predeces-
any pandemic effects. Back then, under his rule. soaring. boon now, but could look bad if a sors’ and many other emerging mar-
though, average hourly earnings Despite all of this, Brazil has been Investors hope there is even global recession comes in 2023. kets. But it is a promise that can go
were up 3% on the year, and infla- one of the few markets to perform more upside under Mr. da Silva, This is a key reason why emerg- only so far. —Jon Sindreu
tion was running short of the 2%
the Fed was aiming for. So some-
thing has changed. One difference
might be that despite the similar-
looking unemployment rates, the job
market is effectively much tighter
now. The number of unfilled job
Vietnam’s Goldilocks Growth Phase Is Over
openings has lately started to fall a Vietnam is out of step with the
bit, but it is still far higher than be- rest of Asia—in terms of growth,
fore the pandemic. The share of dollar reserves and monetary pol-
workers quitting, which some peo- icy. The law of averages may be
ple view as a better measure of la- catching up with it finally.
bor market tightness, is also higher Vietnam’s central bank last
than before the pandemic, but it has week said it would raise its policy
been falling since the end of last rates by a full percentage point—
year—one indication, argues econo- the second increase in a little
mist Justin Bloesch in a recent Roo- more than a month—to fight infla-
sevelt Institute post, that the cur- tion and a sharp slide in its cur-
rent low level of unemployment rate rency. The Vietnamese dong lost
isn’t inherently more inflationary 4% in October after the central
than prior to the pandemic. bank widened the currency’s daily
MAIKA ELAN/BLOOMBERG NEWS
How the
Fortune
100 move
freight.
More than 50% of Fortune 100
companies rely on RXO to move their
freight. Our on-demand digital platform
—RXO Connect—seamlessly connects
shippers to over 1.5 million trucks, and
our brokerage business is growing
3x faster than the industry.
Massive capacity.
Cutting-edge technology.