Wall Street Journal - 03 August 2022

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What’s Pelosi Visits Taiwan, Defying China
News
Speaker hails island over what it regards as a chal-
Business & Finance as ‘vibrant democracy’ lenge to its sovereignty and has
as Beijing says it plans unsettled the White House,
Robinhood is slashing FROM LEFT: ANN WANG/REUTERS; TAIWAN DEFENCE MINISTRY/ZUMA PRESS military exercises which is wary that the trip
about 23% of its full-time could further undermine al-
staff, the second round of House Speaker Nancy Pelosi ready tense U.S.-China rela-
layoffs this year, as the online met with Taiwanese President tions. The prospect of geopolit-
brokerage continues to reel Tsai Ing-wen on Wednesday in ical tensions also spooked
from a sharp slowdown in what she called a show of stock investors, with the
customer trading activity. A1 American solidarity for the is- benchmark S&P 500 declining
land, defying repeated warn- 0.7% on Tuesday.
 Equifax provided inaccu- ings from Beijing and fueling
rate credit scores on millions U.S.-China tensions. Chinese jet fighters flew
of U.S. consumers seeking over the Taiwan Strait as Mrs.
loans during a three-week pe- By Joyu Wang Pelosi’s plane neared Taipei on
riod earlier this year, according in Taipei and Chun Han Tuesday night. Shortly after
to bank executives and others Wong and Wenxin Fan her arrival, Beijing issued a
familiar with the errors. A1 volley of statements condemn-
in Hong Kong ing the visit, summoned the
 Credit-card issuers are U.S. ambassador in Beijing, and
aggressively courting new Mrs. Pelosi, the highest- said it would conduct live-fire
customers and trying to in- ranking U.S. official to visit the exercises around the island.
crease credit-card balances, island in a quarter-century,
defying recession fears. B1 said in a statement shortly af- Mrs. Pelosi, in an address, de-
ter landing that the trip sig- scribed the world as divided be-
 U.S. job openings fell in naled “America’s unwavering tween democracy and autocracy,
June to their lowest level commitment to supporting Tai- and said, “We will not abandon
in nine months and hiring wan’s vibrant democracy.” our commitment to Taiwan.”
slowed, in new signs of a
cooling labor market. A2 The visit has angered Beijing Ms. Tsai said she would
“firmly uphold our nation’s
 Uber doubled revenue sovereignty and continue to
and improved its financial
performance in the com- Please turn to page A8
pany’s latest quarter. B1
House Speaker Nancy Pelosi visited Taiwan’s parliament on Wednesday and later met the
 JetBlue posted a second- Taiwanese president in defiance of Beijing’s warnings that the visit would undermine U.S.-
quarter loss but said it ex- China relations. Chinese warplanes, right, flew over the Taiwan Strait on Tuesday.
pects to return to profitabil-
ity in the current quarter. B1 Robinhood Plans Tactical Questions Follow
More Staff Cuts
 Major U.S. stock indexes As Trading Plunges Killing of al Qaeda Chief
fell, with the Dow, S&P 500
and Nasdaq losing 1.2%, 0.7% BY CAITLIN MCCABE posted to the company’s blog. BY WARREN P. STROBEL offered guidance to the group Last year’s chaotic with-
and 0.2%, respectively. B1 Mr. Tenev said the previous AND MICHAEL R. GORDON and its many affiliates. drawal from Afghanistan and
Robinhood Markets Inc. is round of layoffs in April “did the Taliban’s rapid takeover
 British Airways is tem- slashing about 23% of its full- not go far enough” in helping WASHINGTON—The CIA U.S. officials said the strike, proved a foreign policy low
porarily halting ticket sales time staff as the online bro- the company cut costs. drone strike that killed al almost a year after President point for the Biden administra-
on all domestic and Euro- kerage continues to reel from Qaeda’s leader demonstrates Biden ordered the U.S. with- tion, drawing bipartisan criti-
pean routes from London a sharp slowdown in customer “Last year, we staffed many potent U.S. capabilities to tar- drawal, proved an American cism. The Biden administration
Heathrow Airport. B1 trading activity. of our operations functions get individual terror chief- presence in Afghanistan isn’t argued that it could conduct
under the assumption that the tains, but it leaves unanswered needed to hit global terror counterterrorism strikes from
 BP reported strong sec- The job cuts mark the sec- heightened retail engagement the question of whether Wash- groups. But critics of the ad- abroad—using so-called over-
ond-quarter profit, boosted ond round of layoffs this year we had been seeing with the ington can remotely thwart ministration’s Afghanistan pol- the-horizon capabilities such
by the highest energy prices at Robinhood, which in April stock and crypto markets in plots in Afghanistan before icy say the operation, while a as airborne surveillance air-
in more than a decade. B3 reduced its staff by about 9%. the Covid era would persist they become a threat. welcome development in the craft and Hellfire missile-
Together, the two rounds cut into 2022,” Mr. Tenev said in long-term campaign to elimi- armed drones—and didn’t
 AMD posted a sharp in- more than 1,000 jobs. the message. “In this new en- Senior U.S. officials said nate leaders of the group re-
crease in quarterly sales vironment, we are operating that Ayman al-Zawahiri, who sponsible for the 9/11 attacks, Please turn to page A6
but issued a muted outlook The layoffs come alongside with more staffing than appro- was killed in Kabul on Sunday didn’t demonstrate that the U.S.
for the current period. B4 a company reorganization, priate. As CEO, I approved and morning by Hellfire missiles, had the ability to respond to  Foreign policy returns to fore
Vlad Tenev, Robinhood’s chief wasn’t involved in planning al new threats that could emanate for Biden....................................... A6
World-Wide executive, said in a message Please turn to page A4 Qaeda terror operations at the from the Taliban-ruled country
time of his death, but rather following the American exit.  Taliban relations with al
 Pelosi met with Taiwanese Qaeda endure............................ A7
President Tsai on Wednesday
in what she called a show of Stephen MICHAEL REYNOLDS/EPA/SHUTTERSTOCK SoftBank Emerges
American solidarity for the is- King As a Loser in Rout
land, defying repeated warn- Takes
ings from Beijing and fueling The Stand Of Tech. Again.
U.S.-China tensions. Pelosi’s
visit to Taiwan drew condem- The horror novelist CEO urged staff to pour money into startup
nation from Beijing, which testified in a firms last year, at close to their market top
said it would conduct live-fire federal antitrust
exercises around the island. A1 case Tuesday that Equifax Sent Lenders BY ELIOT BROWN several of his staff feeling
new authors Wrong Credit Scores like salespeople, the former
 The CIA drone strike would be harmed Early last year, Masayoshi employees said.
that killed Zawahiri dem- if his longtime BY ANDREW ACKERMAN sent from mid-March through Son addressed his staff on a
onstrates potent U.S. capa- publisher Simon & early April, the people said. video call. At the time, Despite a pledge to be
bilities to target individual Schuster were AND ANNAMARIA ANDRIOTIS The company began disclosing startup companies were more restrained in his in-
terror chieftains, but leaves acquired by rival the errors to lenders in May, surging in value, but Soft- vesting, given a history that
unanswered the question Penguin Random Equifax Inc. provided inac- they said. Bank Group Corp. wasn’t in- included embarrassing re-
of whether the U.S. can re- House. B1 curate credit scores on mil- vesting in enough of them. cent flops alongside his
motely thwart plots in Af- lions of U.S. consumers seek- Equifax said it has since wins, Mr. Son and his team
ghanistan before they be- College Essay ing loans during a three-week fixed the error, which the His executives needed to plowed $38 billion from
come a threat. A1, A6, A7 period earlier this year, ac- company described as a “tech- persuade more companies to SoftBank’s latest giant fund
Prompts cording to bank executives and nology coding issue.” The take their money, the Japa- into 183 companies last year,
 Kansas voters soundly others familiar with the er- glitch didn’t alter the informa- nese billionaire lectured, ac- according to SoftBank’s fil-
rejected a proposed state Get Absurd rors. tion in consumers’ credit re- cording to former employ- ings. It was the most money
constitutional amendment ports, the company said. ees. ever by a venture-capital in-
that would have ended pro- iii Equifax sent the erroneous vestor in a single year.
tections for abortion, in the scores on people applying for “We have determined that Mr. Son, SoftBank’s chief
first statewide referendum Writings may now auto loans, mortgages and there was no shift in the vast executive, set up a spread- Mr. Son bought at the
on the issue since Roe v. credit cards to banks and non- majority of scores during the sheet tracking calls to com- top—again. Now, amid a
Wade was overturned. A4 play a greater role bank lenders big and small— three-week timeframe of the panies and eased internal punishing tech rout, losses
 The Justice Department including JPMorgan Chase & issue,” Sid Singh, president of rules to invest quickly. It are mounting, with many of
sued Idaho, challenging its in admissions Co., Wells Fargo & Co. and Ally Equifax’s U.S. Information So- was an environment that left
near total ban on abortion. A4 Financial Inc., the people said. lutions, said in a statement. Please turn to page A8
BY ISABELLE SARRAF The scores were sometimes off “For those consumers that did
 Voters in Missouri, Kansas, by 20 points or more in either experience a score shift, initial INSIDE
Michigan, Arizona and Wash- Rachel Quaye-Asamoah is direction, the people said, analysis indicates that only a
ington state went to the polls heading into her senior year at enough to alter the interest small number of them may KYLE RIVAS/GETTY IMAGES
Tuesday to select nominees for Brooklyn Technical High rates consumers were offered have received a different
federal and state office. A4 School in New York. She is or to result in their applica-
eyeing several top-ranked col- tions’ being rejected alto- Please turn to page A5
 Russian shells struck leges, and intends to major in gether.
Ukrainian-held territory in economics. She is already pre-  Credit-card sales pitches pick
Ukraine’s south, according to paring her personal statement The inaccurate scores were up the pace.................................. B1
local officials, as both sides for college applications, de-
shift their attention toward a scribing how her upbringing
looming fight for the area. A16 shaped her worldview around
money and capitalism.
 The Senate voted 86-11
to pass a bipartisan bill to But some colleges, she is
enact the largest expan- learning, are more apt to
sion of veteran healthcare throw curveballs than gauge
benefits in decades. A5 what applicants think of, say,
budgets and bear markets.
 Died: Vin Scully, 94, long-
time Dodgers broadcaster. A5 Please turn to page A9

CONTENTS Personal Journal A9-10
Arts in Review.... A11 Property Report... B6
Business News...... B3 Sports........................ A12
Crossword.............. A12 Technology............... B4
Heard on Street. B12 U.S. News............. A2-5
Markets..................... B11 Weather................... A12
Opinion.............. A13-15 World News. A6-7,16

> U.S. NEWS SPORTS
Kansas voters reject The NFL suspends the
s 2022 Dow Jones & Company, Inc. measure that would Miami Dolphins’ owner
All Rights Reserved have ended protections
for tampering with
for abortion. A4 Tom Brady. A12

A2 | Wednesday, August 3, 2022 .

THE WALL STREET JOURNAL.

U.S. NEWS

U.S. Data Signal Cooling Labor Market

BY RINA TORCHINSKY U.S. job openings compared to the number of people
who are unemployed but seeking work
U.S. job openings fell in
June to their lowest level in 12 million More job openings than June
nine months and hiring 10 people unemployed but Job openings
slowed, in new signs of a cool- 8 seeking work 10.7 million
ing labor market. 6
Unemployed
The Labor Department on but seeking
Tuesday said there were a sea- work
sonally adjusted 10.7 million 5.9 million
job openings in June, down
from 11.3 million in May. That 4
was the lowest level since Sep- 2021 ’22
tember.
Note: Seasonally adjusted. June 2022 data are preliminary.
The number of times work- Source: Labor Department via the Federal Reserve Bank of St. Louis
ers quit their jobs edged down
to 4.2 million from the prior JOE RAEDLE/GETTY IMAGES “Competition for workers rently looking to fill cashier
month’s 4.3 million, extending remains fierce as employers and cooking roles, among oth-
a stretch of unusually high job A job fair in Sunrise, Fla. The Labor Department said there were 10.7 million job openings in June. have to keep bidding up wages ers. “We’re definitely in expan-
turnover that started in early for new hires,” Mr. Bunker sion,” she said. “We’re hiring
2021. Layoffs and discharges Department will release unem- the first two quarters of the that the economy would be in said. “These red-hot wage- more than ever.”
fell to 1.3 million in June from ployment figures Friday at year, the Commerce Depart- recession,” he said last week growth statistics may fade in
1.4 million the prior month. 8:30 a.m. ET. Initial jobless ment said last week. A reces- after the Fed’s most recent pol- the near term, but there’s a Headspace Health, a digital-
Hiring slowed slightly to 6.4 claims, a proxy for layoffs, in sion is commonly defined as icy meeting. long way for them to drop.” health company with more
million, down from 6.5 million July reached their highest level two consecutive quarters of than 1,000 employees, expects
in May. since November, and are ex- negative gross domestic prod- Worker pay and benefits Nicole Marquis, chief execu- to hire at least 150 employees
pected to have climbed slightly uct, but Federal Reserve Chair- have risen fast this year, re- tive of plant-based restaurant by the end of the year.
“Job openings have slowed last week. man Jerome Powell has said flecting the imbalance of jobs HipCityVeg, said the Philadel-
down,” said Nick Bunker, an that the U.S. isn’t in a reces- and available workers. Wages phia-based company is always When the Covid-19 pan-
economist at jobs site Indeed. As the labor market weak- sion. and benefits increased 5.1% in hiring. demic hit in early 2020, there
“There’s still lots of opportuni- ens, workers are likely to hold the second quarter compared was a “skyrocketing mental-
ties for job seekers right now. on to their jobs out of fear of Mr. Powell pointed to the la- with the same period a year “At the end of 2021, HipCi- health need,” said Russell
We’re just not seeing any fur- recession and layoffs, said bor market as a source of U.S. ago, the Labor Department tyVeg—which spans 10 loca- Glass, the company’s CEO.
ther pickup or increase in Dante DeAntonio, economist at strength. “2.7 million people said Friday. That was the fast- tions in Pennsylvania, New “We’re in a business that’s
those opportunities.” Moody’s Analytics. hired in the first half of the est rate of increase on record York and Washington, D.C.— counter cyclical,” he said.
year, it doesn’t make sense dating back to 2001. hired a full-time recruiter who
Despite the decline, total job The U.S. economy shrank in worked for the company for Mr. Glass said the company
openings remained well above less than six months when the came to the conclusion that it
the number of people unem- business was opening new lo- didn’t make sense to do lay-
ployed but looking for work, cations. But now there isn’t a offs. “We’re going to continue
which the Labor Department need for the position,” Ms. to invest in hiring because we
put at 5.9 million in June. Marquis said. see continued massive need.
We think the demand, if any-
The labor market is showing HipCityVeg has about 20 to thing, is going to go up during
other signs of slowing. Hiring 30 open positions, and is cur- a period like this.”
eased in June from higher to-
tals earlier in the year, and
economists estimate employers
pulled back further on filling
positions in July. The Labor

Mass Grave From Revolutionary War Unearthed in New Jersey Fed Officials Say More

Rate Hikes Are Needed

MATT ROURKE/ASSOCIATED PRESS BY NICK TIMIRAOS ditional quarter-percentage-
point increments at its last
HISTORICAL SITE: Archaeologist Wade Catts briefed members on the media Tuesday in National Park, N.J., at what researchers Federal Reserve officials two meetings of the year, in
believe is the grave of as many as 12 Hessian soldiers killed fighting for the British during the 1777 Battle of Red Bank. said they expected to keep lift- November and December, and
ing borrowing costs through at through early 2023.
Companies Urge High Court to Back least early next year to slow
College Affirmative Action Policies the economy and bring down “In spite of less favorable
high inflation, pushing back inflation reports than I ex-
BY JESS BRAVIN rate cases challenging admis- and view race as only one fac- made clear that the skills against some investors’ hopes pected in June, I’m still hope-
sions practices at Harvard Col- tor among myriad others in as- needed in today’s increasingly of a milder rate path. ful that that rate path is a rea-
WASHINGTON—Dozens of lege and the University of sembling an entering class. global marketplace can only be sonable one after all,” Mr.
major corporations have asked North Carolina, private and developed through exposure to Chicago Fed President Evans said.
the Supreme Court to affirm public institutions that consider The 14th Amendment’s widely diverse people, cultures, Charles Evans told reporters
the use of racial preferences in race when evaluating appli- equal protection clause and ideas, and viewpoints,”Justice Tuesday that he hopes the cen- Cleveland Fed President Lo-
college admissions, arguing cants. Admission to both uni- corresponding provisions of Sandra Day O’Connor wrote tral bank will be able to moder- retta Mester said that with in-
that more diversity on cam- versities is competitive: Har- the Civil Rights Act of 1964 then for the court. ate its interest-rate rises over flation so far above the Fed’s
puses contribute both to com- vard, the nation’s oldest college, have generally been read to the remainder of the year after 2% target, she was anxious
mercial innovation and busi- accepted 3.19% of 61,220 appli- prohibit official classifications Mr. Blum previously has increasing rates in unusually about prematurely concluding
ness success. cants for the class of 2026; of individuals based on race. backed challenges to race-con- large increments at its last two that price pressures were eas-
UNC, the state’s flagship, re- Historians and legal scholars scious admissions at the Uni- meetings. But he held out the ing.
“Empirical studies confirm ported an in-state acceptance have argued over whether the versity of Texas, but, most re- possibility of another super-
that diverse groups make bet- rate of 42.2% and 10.5% for out- 14th Amendment, adopted in cently in 2016, the Supreme size rate increase at the Fed’s “We have more work to do
ter decisions thanks to in- of-state students among 53,775 1868 in large part to protect Court left them intact. Since next meeting on Sept. 20-21. because we have not seen that
creased creativity, sharing of applications for fall 2021. Black Americans freed from casting key votes in affirmative turn in inflation,” she said in a
ideas, and accuracy. And di- slavery, allows official efforts cases, Justices Kennedy and In projections submitted at webinar with the Washington
verse groups can better under- A group backed by former to correct racial inequality or O’Connor have retired, leaving the Fed’s meeting in mid-June, Post. “It’s got to be a sus-
stand and serve the increas- stockbroker Edward Blum, Stu- requires strict colorblindness. today’s more conservative court Mr. Evans said he anticipated tained, several months of evi-
ingly diverse population that dents for Fair Admissions, sued likely to be more skeptical of raising rates by a half percent- dence that inflation has first
uses their products and ser- Harvard and UNC alleging that A federal-district court in the universities’ arguments. age point at the central bank’s peaked—we haven’t even seen
vices,” more than 60 compa- their consideration of race vio- Boston held a trial over Har- meeting in September after that yet—and that it’s moving
nies said in one friend-of-the lates constitutional equal-pro- vard’s admissions process and The major-businesses brief completing two rate increases down.”
court brief on Monday, citing a tection provisions. In particular, found it constitutional, a deci- cited a 2014 study published of 0.75 percentage point, or 75
range of research. “These ben- sion affirmed by the First U.S. by the National Academy of basis points, this summer. San Francisco Fed President
efits are not simply intangible; Apple, GM and Lyft Circuit Court of Appeals in Bos- Sciences that “found that trad- Mary Daly also said the central
they translate into businesses’ ton. A federal-district court in ers in ethnically homogenous “The kinds of things that bank’s efforts to bring down
bottom lines.” are among those Winston-Salem, N.C., likewise markets were ‘significantly would make larger rate in- prices by slowing demand was
upheld the UNC policy. less accurate’ in making pric- creases more important, like in “nowhere near” done and
Signatories to the brief ti- asking the justices to ing decisions ‘and thus more September, would be if you re- pushed back against some in-
tled, “major American business Mr. Blum declined to com- likely to cause price bubbles,’ ” ally thought things weren’t im- vestors’ expectations that the
enterprises,” included tech gi- allow the practice. ment on the business briefs. the brief said. proving,” Mr. Evans said at a central bank would pivot to
ants such as Apple Inc. and Al- briefing Tuesday. “I think that rate cuts next year after raising
phabet Inc.’s Google unit; man- the plaintiffs allege that admis- Affirmative action in admis- The major-business brief there’s enough time to play out rates to around 3.5% this year.
ufacturers including Corning sions policies provide unfair ad- sions has returned repeatedly said that employers depend on that 50 [basis points] is a rea-
Inc. and General Motors Co., vantages to Black, Hispanic and to the Supreme Court since universities to prepare quali- sonable assessment, but 75 “My modal outlook, or the
pharma and biotech companies Native American applicants 1978, when in the case of Re- fied workers, and have long- could also be OK.” outlook I think is most likely,
and transportation operators over their white and Asian gents of the University of Cali- standing partnerships with is really that we raise interest
such as American Airlines American counterparts. fornia v. Bakke, the court found campus career offices to iden- After that, Mr. Evans said rates and then we hold them
Group Inc. and Lyft Inc. The a compelling government inter- tify candidates. “Although they he was hopeful the central there for a while at whatever
brief cited reports published by “Harvard insinuated that it est in promoting racial diver- do not take a position on the bank would be able to con- level we think is appropriate,”
journals including the Academy uses race as one small factor to sity and allowed consideration constitutionality of the specific tinue raising rates in more tra- she said in an interview
of Management Journal, Cor- break ties between qualified of race so long as it wasn’t practices at issue here,” the streamed on LinkedIn.
porate Governance, and the Re- candidates, [but] it actually ob- through a rigid quota or hard companies “reiterate to this
view of Quantitative Finance sesses over race throughout its numerical benefit. Court that the government’s CORRECTIONS  AMPLIFICATIONS
and Accounting. process and awards massive interest in promoting student-
preferences to certain groups,” In a 2003 decision affirming body diversity on university A Page One article on Sat- Mobil Corp. was up about
Other companies joined the plaintiffs argue in legal pa- race-conscious admissions to campuses remains compelling urday about oil-company earn- 58%, not 46%, year to date,
separate briefs supporting the pers. the University of Michigan Law from a business perspective.” ings included stock-price in- while Chevron Corp. was up
colleges. No businesses filed School, the court specifically formation that wasn’t updated 40%, not 26%.
briefs opposed to the univer- The universities say they cited briefs by major businesses Argument dates haven’t yet through the close of Friday’s
sity policies. consider applicants individually attesting to the importance of been set, but the cases are trading. The S&P 500 Energy President Anwar Sadat of
diversity in the workplace. slated to be heard during the index through the close of Egypt was assassinated in
The Supreme Court is slated court’s next term, which be- trading on Friday was up 1981. In some editions Tues-
in its next term to hear sepa- “These benefits are not the- gins in October. about 42%, not 35%, since the day, a World News obituary
oretical but real, as major start of 2022, compared with a for al Qaeda leader Ayman al-
American businesses have 13% drop for the broader in- Zawahiri article incorrectly
dex, not a 15% drop. Exxon said Sadat was killed in 1991.

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Wednesday, August 3, 2022 | A3

U.S. NEWS

State Monkeypox Patients Scramble for Care

Reaches BY DOMINIQUE MOSBERGEN

Opioids Taber Feltner, a research as- ROBYN BECK/AGENCE FRANCE-PRESSE/GETTY IMAGES
sociate in Iowa City, Iowa, said
Settlement he noticed some worrying People lined up to get vaccinated for monkeypox last week in Los Angeles. The U.S. has the most known cases of the disease.
symptoms in mid-July, a few
BY KRIS MAHER days after returning home FEMA Official Will The pair will guide the Bi- Highest number of four weeks, the CDC said.
from a trip to Chicago. Lead U.S. Response den administration’s strategy monkeypox cases in the U.S. Most monkeypox cases in
West Virginia reached a and help increase the availabil-
$400 million settlement with A rash developed in his President Biden appointed ity of tests, vaccines and treat- N.Y. 1,390 the U.S. have been mild, though
drug distributors McKesson groin, which he initially a national monkeypox response ments, the White House said. Calif. moderate and severe cases
Corp., AmerisourceBergen brushed off as ingrown hairs. coordinator, a bid to improve Ill. 827 have been reported. A recent
Corp. and Cardinal Health But within a few days, he de- the federal government’s re- The moves come amid re- Fla. 520 study in the New England Jour-
Inc. over allegations that the veloped a fever of over 103 de- sponse to the outbreak. ports of long wait times for Ga. 442 nal of Medicine of more than
companies fueled the opioid grees and the rash transformed shots and treatments and criti- Texas 430 500 monkeypox patients in 16
epidemic in the state and cre- into painful, pus-filled lesions. Robert Fenton, a Federal cisms that the federal govern- D.C. 397 countries found that 13% were
ated a health crisis. Emergency Management ment hasn’t moved fast Pa. 243 hospitalized, mostly for pain.
“I’ve never been that sick in Agency regional administrator enough to contain the out- N.J. 161
The settlement, reached my life,“ said Mr. Feltner. and former acting head of the break of the viral disease. Mass. 155 Josh Watson of Chicago said
Monday, is the latest in a wave agency, will serve as monkey- 134 he developed lesions on differ-
of others over the past year, More than two months after pox coordinator, the White The U.S. now has more ent parts of his body, including
including one in which the monkeypox was detected in the House said. Demetre Daskala- than 5,800 reported cases of Note: As of Aug. 1 some in his throat that made it
three distributors and drug U.S. as part of a global out- kis, currently director of the monkeypox, most of them in Source: Centers for Disease Control and difficult to eat and drink. He
company Johnson & Johnson break mostly among men who CDC’s Division of HIV Preven- men who have sex with men, Prevention was hospitalized and treated
agreed to pay roughly $25 bil- have sex with men, transmis- tion, would work as his deputy. according to the Centers for with the antiviral drug teco-
lion to resolve litigation sion shows no sign of slowing. Disease Control and Prevention. sion is defined as the dissemi- virimat in mid-July. The drug,
brought by states. West Vir- The U.S. has surpassed Spain awareness about the virus. nation of a virus through very sold by New York-based Siga
ginia had chosen not to partic- as the country with the most The Department of Health —Liz Essley Whyte small droplets that remain sus- Technologies Inc. under the
ipate in that earlier settle- known cases. Federal officials and Stephanie Armour pended in the air over long brand name TPOXX, has been
ment. are considering whether to de- and Human Services didn’t re- distances and time. approved by the Food and Drug
clare monkeypox a public- spond to requests for comment. very different epidemiological Administration for the treat-
The $400 million settle- health emergency. and ecological contexts. We Public-health experts rec- ment of smallpox, a disease
ment will be distributed over To date, there have been need to know much more ommended that people at risk closely related to monkeypox.
12 years to more than 100 Patients said they are navi- more than 5,800 confirmed or about transmissibility.” for infection get vaccinated
counties and cities in West gating the outbreak without suspected cases in the U.S., when possible, not share bed- Amid the outbreak, the FDA
Virginia. Bob Fitzsimmons, sufficient guidance from physi- federal health officials said. The World Health Organiza- ding or towels, wash hands of- and CDC have approved ex-
one of the lead attorneys for cians and public-health offi- Epidemiologists said the virus tion, which declared monkey- ten, and avoid intimate physi- panded access of TPOXX to
the plaintiffs, said the counties cials on how to treat the dis- is exploiting close-knit social pox a global health emergency, cal contact with someone with monkeypox patients, but
and cities will receive roughly ease and prevent its spread. and sexual networks, but says monkeypox is most com- rashes or sores, or limit sexual healthcare providers said ob-
double the amount they would Mr. Feltner said he wasn’t able knowledge of how the virus is monly spread through close partners altogether. taining the drug has been bur-
have gotten if they hadn’t pur- to get vaccinated before travel spreading in this current out- contact with an infected per- densome. Until recently, it took
sued separate litigation with because Iowa gave priority to break remains incomplete. son’s rash, lesions and bodily A person can spread mon- providers several hours to
the three distributors. people who had been exposed fluids. The virus can also keypox until all their lesions complete extensive FDA and
to monkeypox. He said he was “We have to be very humble spread via fabrics and other have scabbed and the scabs CDC paperwork and other re-
“We can’t bring people mocked by healthcare provid- about what we know and what materials, and through pro- have fallen off, infectious-dis- quirements to get the drug to
back. We can’t reverse addic- ers when he attempted to seek we don’t,” said Anne Rimoin, longed exposure to an infected ease experts said. Public-health patients, said Cathy Creticos,
tions that have occurred in the care and struggled to find ade- an epidemiologist at the Uni- person’s saliva or mucus. officials have advised poten- medical director of infectious
past. But going forward if we quate expert information about versity of California, Los Ange- tially infectious people to re- disease at Howard Brown
can save one person and one the disease. He said he has re- les, who spent two decades Aerosol, also known as air- main quarantined for the dura- Health, a nonprofit LGBTQ
family it’s beneficial,” he said. lied on social media and the studying monkeypox in Africa, borne, transmission of the vi- tion of their illness. Monkeypox healthcare and social services
anecdotal accounts of other where the disease has long rus hasn’t been considered to symptoms typically last two to provider in Chicago. The CDC
AmerisourceBergen said the patients to fill the gaps. been endemic. “What we know be of significant concern by simplified the protocol to ob-
settlement would avoid years is based on studies done in public-health experts, but tain TPOXX late last month.
of litigation while providing “Trying to get questions an- some early research suggests it
resources to communities af- swered was impossible,” said could be possible in certain Mr. Feltner said it took
fected by the opioid epidemic. Mr. Feltner. conditions. Airborne transmis- many days before he gained ac-
Cardinal Health said in a cess to testing and treatment.
statement that it is committed Public-health experts and
to being a part of the solution community advocates said the
to the opioid epidemic and Biden administration and the
that it believes the settlement Centers for Disease Control
“will help provide necessary and Prevention were too slow
relief to West Virginia commu- at responding to the outbreak
nities in need.” A representa- when it first emerged and con-
tive for McKesson didn’t im- tinue to take insufficient action
mediately respond to a to stem the spread of the virus.
request to comment.
“We’re not getting stream-
Cabell County and the city lined communication to com-
of Huntingdon, W.Va., will par- munities. People are making
ticipate in a portion of the set- things up as they go. That’s not
tlement that will go toward the best public-health strat-
treatment programs but not in egy,” said Jason Rosenberg, a
a smaller portion that goes di- member of ACT UP NY, an HIV/
rectly to counties. Cabell AIDS advocacy organization.
County and the city had sued
the three drug distributors The CDC said it was wrong
separately, alleging that the to suggest that it hadn’t taken
companies had created a pub- early and adequate action to
lic nuisance by fueling the opi- mitigate the outbreak and to
oid epidemic. educate communities about
monkeypox. “All summer, [the]
Last month, a federal judge CDC has been working with
ruled in favor of the compa- partners to help put informa-
nies and said they couldn’t be tion in the hands of people
held liable for creating the who may be at highest risk for
opioid crisis in the West Vir- contracting monkeypox,” an
ginia county and city. agency spokesperson said,
adding that the CDC continues
to work with community
health organizations to raise

High-Tide Floods Expected to Worsen Death Toll Rises to 4
As McKinney Fire
BY ERIC NIILER Days when coastal floods driven by rising sea levels surpassed seafloors resulting from the Rages in California
normal high-tide marks by 1.75 feet dredging of coastal waterways.
Flooding along U.S. coasts
has become more frequent in May 2021 to April 2022 2 days 6 A study co-authored by Dr.
recent years and is likely to Seattle Wahl and published in 2021 in
worsen, government scientists the journal Science Ad-
said in a new report. Unusually Los Angeles Boston vances identified 18 locations BY TALAL ANSARI emergency on Saturday for the
high tides driven by rising New York City where such dredging worsened county as the fire intensified.
seas sloshed water onto Washington DC high-tide flooding, including Two additional bodies have
coastal areas more than 500 New York City, Wilmington, been found in the path of a Lower temperatures and
times over the past year, ac- Atlanta N.C., and Cedar Key, Fla. fast-moving wildfire in North- higher relative humidity, in-
cording to the report. ern California, bringing the cluding some rain, was helping
Houston Sea level rise is also being death toll to four. firefighters make good prog-
The Atlantic, Pacific and driven by the loss of seawater- ress, according to the latest
Gulf coasts will experience this Note: Tide gauge locations are approximate. Data was collected May 2021 - April 2022. absorbing wetlands to coastal The Siskiyou County Sher- update from the California De-
so-called high-tide or sunny- Source: NOAA development and by the sink- iff’s Office said the bodies partment of Forestry and Fire
day flooding an average of Carl Churchill/THE WALL STREET JOURNAL ing of land overlying reser- were found at separate resi- Protection, known as Cal Fire.
three to seven days between voirs from which freshwater dences within the perimeter of
May 2022 and April 2023, ac- said William Sweet, an ocean- Sixth Assessment Report of the has been pumped for drinking the McKinney Fire, along Cali- Firefighters were able to di-
cording to projections in the ographer with NOAA’s National Intergovernmental Panel on Cli- or other uses. fornia State Route 96. The of- rectly combat flames and cre-
annual report, which was re- Ocean Service and an author of mate Change, which was re- fice didn’t provide additional ate containment lines away
leased Tuesday by the National the report. “It’s like snow days leased in February 2022. South Florida has been hit details, pending identification from the fire because of the
Oceanic and Atmospheric Ad- in the Northeast when you especially hard by high-tide of the deceased and notifying favorable weather, said Joel
ministration. That is the same have to have enough trucks, High-tide flooding results flooding between September their families. Brumm, a public information
as during the preceding year salt and people budgeted. With when seawater surges at least and November, when the year’s
but up from an average of two flooding, you have to pay police 1.75 feet above normal high-tide highest tides occur. The high On Monday, authorities said The blaze has grown
to six days of flooding between to close the street, you have to levels. It is caused not by the tides during these months, two people were found dead to be the largest fire
May 2019 and April 2020. get enough pumps, you have to storms and heavy rain that typi- known as king tides, are ampli- inside a burned car in the path so far this year in
pay for overtime.” cally cause inland flooding but fied by seasonal ocean currents of the fire, which has scorched the state.
Along the Atlantic and Gulf by rising seas, the scientists and warm ocean temperatures more than 56,000 acres
coasts, high-tide coastal flood- The report projected even said in the report. Sea levels are along the Florida coast that around the small community officer with the Klamath Na-
ing now occurs twice as fre- more severe increases in the rising as the world’s oceans bring seas to their highest lev- of Yreka, Calif. “We think they tional Forest.
quently as it did in 2000, ac- long term, with 45 to 70 days of warm and their volumes expand els for the year. Between May were trying to evacuate,” said
cording to the report. flooding per 12-month period and as polar ice sheets melt, ac- 2022 and April 2023, the NOAA Courtney Kreider, a spokes- “Less fire activity has en-
by 2050. cording to a 2019 report by the report predicts, the Miami area woman for the Siskiyou abled firefighters to get right
Although not as destructive United Nations Intergovernmen- will be hit with three to six days County Sheriff’s Office. in and build some good lines,”
as flooding associated with For the report, the NOAA sci- tal Panel on Climate Change. of high-tide flooding. That is ex- Mr. Brumm said.
storms, sunny-day flooding can entists gathered tidal records pected to rise to 35 to 60 days After the area had cooled
pose a nuisance to motorists, from past decades and current “Sea level rise is the most during that same 12-month pe- down enough for searches to A red flag warning for parts
pedestrians and landowners as tidal data from 97 stations important cause of high-tide riod in 2050, the report said. begin, specialized teams with of Siskiyou County continued
seawater surges over sea walls across the U.S. and compared flooding,” said Thomas Wahl, dogs were sent out to search into Tuesday, with the Na-
and bubbles up from storm them with satellite imagery assistant professor of civil, en- Fort Lauderdale plans to for more potential victims, Ms. tional Weather Service warn-
drains before retreating hours showing existing sea levels vironmental and construction spend $200 million over the Kreider said. ing of possible new fires
later. Coastal floods can also across a swath of the U.S. coast- engineering at the University of next five years to install sea- started by lightning and wind
force affected communities to line. The scientists then mod- Central Florida. In addition, he water pumps in low-lying ar- The McKinney Fire, which gusts up to 60 miles an hour.
find ways to ease the inconve- eled future high-tide flooding said, high tides in some areas eas, said Nancy Gassman, the began Friday in Klamath Na-
nience and mitigate the dam- using that data along with esti- have been amplified by changes city’s assistant director of tional Forest, has grown to be Thunderstorms forecast to
age—in much the same way mates of sea level rise from the to the contours of riverbeds and public works. But she said the the largest fire of the year in move through the area Tues-
that some northern communi- initiative would bring only the state. day afternoon and evening
ties develop detailed ways to temporary relief. also prompted a flash-flood
cope with heavy snowfall. Thousands of structures are watch.
“You can’t pump the ocean. threatened, and evacuation or-
“There are communities now In certain locations you will ders are in place in some parts
that are starting to realize that just pump it out and the tide of Siskiyou County.
there’s an expense to flooding,” will just bring it back,” Dr.
Gassman said. California Gov. Gavin
Newsom declared a state of

A4 | Wednesday, August 3, 2022 P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ***** .

U.S. NEWS THE WALL STREET JOURNAL.

Kansas Voters Turn Down DOJ Suit Challenges
Idaho Trigger Law
Amendment on Abortion
BY SADIE GURMAN ing abortion to the states.
Procedure is expected “I will continue to work
to remain legal and AND LAURA KUSISTO
accessible in the state with [Idaho] Attorney General
after referendum The Justice Department on Lawrence Wasden to vigor-
Tuesday filed a lawsuit chal- ously uphold state sovereignty
BY LAURA KUSISTO lenging Idaho’s near total ban and defend Idaho’s laws in the
AND JOE BARRETT on abortion, setting up the Bi- face of federal meddling,” Mr.
den administration’s first legal Little said.
OLATHE, Kan—Kansas vot- AVE KAUP/AGENCE FRANCE-PRESSE/GETTY IMAGES battle over abortion access
ers soundly rejected a proposed since the Supreme Court in Idaho is one of 13 states
state constitutional amendment Abortion-rights advocates celebrated in Overland Park after Kansas voters on Tuesday rejected an June overturned Roe v. Wade that passed so-called trigger
that would have ended protec- amendment to the state constitution that would have ended protections for abortion. and eliminated the constitu- laws in recent years that were
tions for abortion, in the first tional right to end a pregnancy. designed to take effect imme-
statewide referendum on the is- The Kansas primary, nor- political observers believed the elections, so I think we might diately or quickly after a deci- EVELYN HOCKSTEIN/REUTERS
sue since the Supreme Court mally a sleepy affair, became proposed amendment faced fa- pull this one out.” The lawsuit says Idaho’s sion overturning Roe v. Wade.
eliminated abortion rights at the focus of intense campaign- vorable odds of passage, abortion restrictions unlaw-
the federal level. ing, with supporters and oppo- though polling last month indi- Lisa Liebelt, a 50-year-old fully conflict with a federal law Abortion providers have
nents of the amendment each cated the race was close. The who voted for the amendment that requires hospitals accept- challenged a number of these
The closely watched vote, in spending millions of dollars final tally wasn’t, with oppo- along with her husband and ing Medicare to provide emer- laws in state courts, in part
a conservative-leaning state and making emotional appeals nents of the amendment win- two children, said canvassers gency treatments, which can arguing that these exceptions
where Republicans outnumber to voters through television ning by margins that were un- supporting the amendment at sometimes include abortion. are vaguely worded and could
Democrats, means abortion is ads, billboards and door-knock- expected. one point during the campaign put them at legal risk in pro-
likely to remain legal and ac- ing efforts. trapped her in her driveway to “If a patient comes into the viding care for miscarriages
cessible in Kansas. The result, Other states, including Mich- make sure she got their litera- emergency room with a medi- and life-threatening pregnancy
projected by the Associated Kansans for Constitutional igan, California and Kentucky, ture. “I’ve known the gravity of cal emergency jeopardizing the complications.
Press, also provides an early Freedom, which supports abor- are likely to have measures on this for a long time,” she said. patient’s life or health, hospi-
political victory to abortion- tion rights and opposed the the ballot in November that tals must provide the treat- The department’s lawsuit
rights supporters weeks after amendment, tried to paint propose either to weaken or Tuesday’s turnout outpaced ment necessary to stabilize relies on the Emergency Medi-
their resounding defeat at the abortion restrictions as a gov- enhance protections for abor- a typical Kansas primary and that patient,” Attorney General cal Treatment and Labor Act,
Supreme Court. ernment mandate that inter- tion. exceeded expectations from Merrick Garland said. “This in- which requires hospitals to
feres with private medical deci- elections officials. A spokes- cludes abortion when that is provide treatment to save a
The referendum was planned sions. Outside a polling place at woman for Kansas Secretary of the necessary treatment.” patient’s life, as well as to pre-
months before the Supreme the Journey Bible Church in State Scott Schwab said turn- vent organ dysfunction or se-
Court’s June 24 ruling that the The Value Them Both Coali- Olathe, Megan Duckers, a 50- out could be as high as 50%, Idaho has a ban set to take rious impairment of bodily
U.S. Constitution doesn’t pro- tion, which opposes abortion year-old personal assistant, compared with 34% in 2020 effect later this month. The function.
tect the right to an abortion. and supported the constitu- came out with her husband and and 27% in 2018. law has exceptions allowing
The decision, Dobbs v. Jackson tional amendment, ran ads nephew to oppose the amend- doctors to perform abortions Asked why the Justice De-
Women’s Health Organization, warning that, if the amendment ment. “I just want to make sure The proposed amendment to save the life of a pregnant partment chose Idaho as its
upheld abortion restrictions in fails, Kansas could become an that the right is retained,” she came in response to a 2019 woman or in cases of rape or first target, Mr. Garland said
Mississippi and overruled the abortion haven as many of the said, adding that she was ner- Kansas Supreme Court ruling incest that have been reported that “we have in front of us a
1973 decision in Roe v. Wade state’s neighbors have banned vous but hopeful about the out- that said the state’s constitu- to law enforcement. It explic- statute that seems to us on its
that recognized abortion as a most abortions. come. “Kansas has surprised tion protects the right of per- itly excludes cases in which a face to directly contradict
constitutional right. me in a good way in recent sonal autonomy, including the physician believes that a EMTALA that is about to take
Going into Tuesday’s vote, right to an abortion. woman will harm herself if an effect that will threaten the
The dynamic of the Kansas abortion isn’t performed. health of women who come to
race changed after the ruling, the emergency room in a re-
with the state seeing a wave of Penalties for providers who ally dire medical situation.”
national attention and political violate Idaho’s law range from
fundraising. two to five years in prison. Garland said hospitals must
provide needed emergency care.
About a dozen states have Mr. Garland had vowed to
implemented new curbs on take legal action to protect ac-
abortion since Dobbs and more cess to abortion after the Su-
are expected, while other states preme Court’s ruling left a
are moving to add new protec- patchwork of state laws, and
tions for the procedure. Kansas abortion-rights groups had
was one of a handful or so of been urging the Biden admin-
states where the future of abor- istration to look for all avail-
tion was uncertain, and both able legal avenues to preserve
sides looked to Tuesday’s pri- at least some availability of
mary for clues about voter atti- the procedure in states seek-
tudes on the issue after Dobbs. ing to eliminate it.

Idaho Gov. Brad Little, a Re-
publican, said that the Biden
administration was “over-
reaching” after the Supreme
Court left the issue of regulat-

Party Rivals Face Off in Contentious Primary Races

BY AARON ZITNER state and state legislature. Re- BILL PUGLIANO/GETTY IMAGES of the 2020 census. Mr. Ducey can’t run again
publicans this year are aiming KYLE RIVAS/GETTY IMAGES The winner will face Mark because of term limits and was
Missouri Republicans se- to defeat Democratic Sen. backing Karrin Taylor Robson,
lected Eric Schmitt, the state’s Mark Kelly, one of the most Tudor Dixon won the GOP gubernatorial primary in Michigan. In Ambrose, an Army veteran and a property developer, who was
attorney general, as their vulnerable senators seeking re- Missouri, Republicans chose Eric Schmitt as their Senate nominee. chartered financial analyst, also endorsed by former Vice
nominee for a U.S. Senate seat election. who won the Republican pri- President Mike Pence.
on Tuesday, ending a political Her promise to ban mask ter the Jan. 6, 2021, attack on mary, the AP projected.
comeback effort by Eric Greit- The Republican primary in mandates at schools, oppose Mr. Trump has endorsed
ens, a former governor who Missouri had drawn wide at- abortion and fight racial and the U.S. Capitol. Mr. Meijer In Kansas, voters set gen- former television journalist
had resigned his office amid tention due to a surge in pub- sexual “indoctrination’’ in the eral-election matchups for Kari Lake, a former television
sexual-assault allegations. lic opinion polls by Mr. Greit- classroom united Michigan’s was facing a stiff challenge two of the nation’s most vul- news anchor, who has focused
ens, which some in the GOP Republican establishment, and nerable Democratic officials: much of her campaign on false
Mr. Schmitt’s victory in the feared would put their hold on on Friday she had won a late from John Gibbs, a former Gov. Laura Kelly and Rep. Sha- claims that Mr. Biden’s victory
Republican-leaning state, pro- the Senate seat at risk. In ad- endorsement from Mr. Trump. rice Davids, who represents a in Arizona was fraudulent.
jected by the Associated Press, dition to the allegations of Trump administration official district in the eastern part of
leaves his party in a strong po- sexual assault and campaign- Ms. Dixon, according to the the state. The Republican nominee for
sition in the race to succeed finance improprieties, which AP, defeated former auto who had won the former pres- governor will likely face Dem-
Republican Sen. Roy Blunt, prompted his resignation as dealer Kevin Rinke, who had Ms. Kelly will face Republi- ocrat Katie Hobbs, the Arizona
who is retiring, and to help the governor in 2018, he was ac- put $8 million of his own ident’s endorsement. can Derek Schmidt, the state secretary of state.
GOP effort to build a majority cused this year by his ex-wife money in the race. attorney general. Ms. Davids
in what is now a 50-50 Senate. in court papers of physical The Republican primary will face Amanda Adkins, a In Washington state, the
abuse. He denied all of those Elsewhere in Michigan, Re- former leader of the state Re- Senate primary will give an
Five states held primary allegations. publicans were deciding winner will face Democrat Hil- publican Party. early read on the strength of
elections for federal and state- whether to renominate Rep. support both for Democratic
wide office on Tuesday. In In an unusual statement on Peter Meijer to his Grand Rap- lary Scholten, an attorney. In Arizona, Republicans Sen. Patty Murray, who is
Michigan, Republicans nomi- Monday, Mr. Trump appeared ids-area seat, after he voted to were selecting a nominee to seeking re-election, and her
nated Tudor Dixon, a political to endorse both Messrs. impeach former Mr. Trump af- Outside Detroit, Democratic challenge Sen. Kelly, a Demo- leading challenger, Republican
newcomer and conservative Schmitt and Greitens, saying crat who narrowly won a par- Tiffany Smiley, a nurse and
commentator, to challenge he backed “Eric,’’ without des- Rep. Haley Stevens defeated a tial term in 2020. Blake Mas- advocate for veterans, includ-
Democratic Gov. Gretchen ignating which candidate. ters had the endorsement of ing her husband, who was
Whitmer in what is expected fellow Democratic House mem- Mr. Trump and funding from wounded while serving in Iraq.
to be one of the most competi- Mr. Schmitt will face Trudy venture capitalist Peter Thiel,
tive races for governor this Busch Valentine, an Anheuser- ber, Rep. Andy Levin, the AP his former boss. His top com- There were 18 candidates
November. Busch beer heir, who won the petitors included businessman on the ballot, but both women
Democratic primary. said, in one of the handful of Jim Lamon and Mark Brnovich, easily advanced to the Novem-
In Arizona, Republicans the state attorney general. ber election under Washington
were deciding whether to In Michigan, Republicans congressional member- state’s primary system, which
nominate three candidates have made Ms. Whitmer a top Mr. Trump’s false claims places contenders from all
who have championed former target among Democratic gov- against-member primaries cre- that he won the 2020 election parties on a single ballot and
President Donald Trump’s false ernors this year. Ms. Dixon have played a prominent role elevates the top two finishers.
claims of election fraud to be said she was prompted to run ated by the new political in Arizona, where many Re- Ms. Murray held a substantial
the party’s candidates for the out of opposition to Ms. Whit- publicans are critical of the lead over Ms. Smiley late
Senate, governor, secretary of mer’s business lockdowns and boundaries drawn with results state’s top GOP leader, Gov. Tuesday, but the tally was in-
other anti-Covid measures. Doug Ducey, for certifying complete.
President Biden’s election win.

Robinhood kerage platform. By the sec- Firm’s Crypto Unit and certify compliant anti- Robinhood publicly disclosed operations, marketing and
ond quarter of last year— Is Fined $30 Million money-laundering and cyberse- the investigation and settle- program management would
Plans Big Robinhood’s best, according to curity programs. As part of the ment with the NYDFS a year be most acutely affected.
public filings—the company The New York State De- consent order, Robinhood also ago in paperwork filed with the
Staff Cuts boasted more than 21 million partment of Financial Services will be required to retain an in- Securities and Exchange Com- Robinhood found itself
active users, who flocked to imposed a $30 million fine on dependent consultant to evalu- mission. deeply affected by the current
Continued from Page One the app to trade meme stocks, the cryptocurrency trading unit ate its compliance with NY- market environment. Jason
took responsibility for our am- options and cryptocurrencies. of online brokerage Robinhood DFS’s regulations and its “We have made significant Warnick, Robinhood’s chief fi-
bitious staffing trajectory— Markets Inc. for alleged viola- remediation efforts. progress building industry-lead- nancial officer, said its custom-
this is on me.” But the pandemic darling tions of anti-money-laundering ing legal, compliance, and cy- ers tend to invest in growth
has seen its fortunes unwind and cybersecurity regulations, NYDFS said it found signifi- bersecurity programs, and will stocks and cryptocurrencies.
Robinhood also moved up this year as markets have tum- in the department’s first crypto cant failures through a supervi- continue to prioritize this work Both were hammered by a
the release of its second-quar- bled and customers are no enforcement action. sory exam and through a sub- to best serve our customers,” downturn in markets this year.
ter results a day earlier than longer stuck at home like they sequent enforcement Robinhood’s associate general
scheduled, reporting its were during the Covid-19 pan- The financial regulator said investigation. The failures, the counsel of litigation and regula- As its business struggled
monthly active users fell to 14 demic. Revenue tied to cus- Tuesday that Robinhood regulator said, resulted from tory enforcement, Cheryl this year, Robinhood has in-
million, down 34% from a year tomers’ trading activity Crypto LLC failed to maintain shortcomings in the company’s Crumpton, said in a statement creasingly been considered a
earlier. Revenue fell 44% to dropped 55% in the latest management and oversight of Tuesday. takeover target. Mr. Warnick
$318 million. quarter to $202 million. April, Mr. Tenev said the com- its compliance programs. reiterated on Tuesday’s call
pany grew its head count to —Mengqi Sun that Robinhood intends to
Launched less than a de- Robinhood’s stock plunged nearly 3,900 in the first quarter In his blog post, Mr. Tenev continue as a standalone, in-
cade ago, Robinhood ushered this year and finished Tuesday of this year from roughly 700 said all employees would re- layoffs were announced. dependent company. “We’ve
in a free-stock-trading phe- at $9.23, down 76% from its at the end of 2019. Tuesday’s ceive an email and a Slack “The reality is that we got a lot of momentum on the
nomenon during the Covid-19 initial public offering price last reduction will bring the head message with their employ- product side,” he said. “To the
pandemic, thanks to its easy- year of $38 a share. Its stock count to about 2,600. ment status immediately fol- over-hired, in particular in contrary of being acquired, we
to-use, mobile-first online bro- fell 1.7% in after-hours trading. lowing Tuesday’s company- some of our support func- actually think that we should
wide meeting where the tions,” Mr. Tenev said later on be looking more aggressively
Robinhood scaled up staffing the call with reporters. He at opportunities to acquire
quickly during the pandemic to noted employees in support, other companies that would
meet a surge in demand for its help speed our innovation.”
services. On an earnings call in

THE WALL STREET JOURNAL. ***** .

Wednesday, August 3, 2022 | A5

U.S. NEWS

Senate Bill Puts Crypto Under CFTC’s Watch

Passes BY PAUL KIERNAN down in crypto markets un- ROD LAMKEY/CNP/ZUMA PRESS blow up and go away, that this
derscored the need for guard- was sort of a passing fad,”
Veterans WASHINGTON—Leaders of rails in the eyes of many The bill to be introduced by Sen. Stabenow, above, and Sen. said Kristin Smith, executive
a Senate committee are set to policy makers. The competi- Boozman would assign oversight of bitcoin and ether to the CFTC. director of the Blockchain As-
Health propose legislation that would tion also reflects the indus- sociation, a trade group repre-
assign oversight of the two try’s ramped-up lobbying pres- posal in June that would cre- his agency is “ready and well senting crypto firms. Now, she
Measure largest cryptocurrencies, bit- ence in Washington and its ate exemptions for situated” to oversee spot mar- said, “We’ve got all these reg-
coin and ether, to the federal push to reach more main- cryptocurrencies in securities kets for some cryptocurren- ulators suddenly vying for
BY LINDSAY WISE agency that regulates milk fu- stream investors. laws, banking statutes and tax cies. SEC Chairman Gary Gen- control.”
tures and interest-rate swaps. code. In July, leaders of the sler has repeatedly demanded
AND BEN KESLING “When there’s a topic as hot House Financial Services Com- that cryptocurrency-trading At the heart of the turf war
Senate Agriculture Commit- as crypto, everybody wants a mittee said they were working platforms such as Coinbase are questions about how cryp-
WASHINGTON—The Senate tee Chairwoman Debbie Stabe- seat at the table,” said Aaron on a bill to grant the Fed a Global Inc. register with the tocurrencies fit into the defi-
voted 86-11 to pass a biparti- now (D., Mich.) and top-rank- Klein, a senior fellow at Brook- greater role in regulating agency as securities exchanges nition of a security, the legal
san bill to enact the largest ex- ing Republican John Boozman ings Institution who focuses on some stablecoins, crypto to- akin to the New York Stock Ex- classification that includes
pansion of veteran healthcare of Arkansas, are planning to financial regulation. “The ques- kens pegged against the dollar change or Nasdaq. stocks and bonds. A 1946 Su-
benefits in decades, a week af- introduce a bill Wednesday tion is, are we going to have and other official currencies. preme Court case created a
ter it fell victim to a technical that would empower the Com- regulatory turf paralysis?” “Four years ago when I test that focuses on whether
snafu and a political spat over modity Futures Trading Com- Agencies also are seeking to started this job, there were investors buy an asset in
a separate spending bill. mission to regulate spot mar- In practical terms, for fed- claim territory. CFTC Chairman some people that just thought hopes of profiting from the ef-
kets for digital commodities, a eral agencies such as the Rostin Behnam said last week this thing was all going to forts of other people. If so, the
Senate Majority Leader newly created asset class. Cur- CFTC, Securities and Exchange issuer is required to register
Chuck Schumer (D., N.Y.) ear- rently the CFTC has authority Commission, and Federal Re- with the SEC and publicly dis-
lier Tuesday reached an agree- to police derivatives, such as serve, adding crypto to their close any information that
ment with Republicans to hold futures and swaps, rather than remit would bring bigger bud- may be material to the secu-
a fresh vote on the PACT Act. underlying commodities. gets, greater influence and rity’s price.
Senate Republicans had been more job opportunities for of-
looking for a path forward af- The bill marks the latest ficials who leave public ser- Even though investors in
ter they blocked it last week, salvo in a battle among federal vice. For members of congres- bitcoin and ether rely on a
sparking blowback from veter- agencies and congressional sional committees that network of users and pro-
ans groups, who camped on committees that oversee them oversee such regulators, a new grammers to validate transac-
the steps of the Capitol and over who will regulate crypto. industry in their sandbox tions and perform software
vowed to stay until the Senate Thirteen years after bitcoin would create another stream updates, cryptocurrency en-
passed the bill. was created, cryptocurrencies of lobbyists and campaign do- thusiasts insist those groups
remain largely unregulated by nations. are too decentralized for the
“They made such a huge the federal government, leav- assets to be regulated like se-
mistake with veterans,” said ing investors without key pro- Washington has introduced curities. Instead, they argue,
Mr. Schumer of Republicans. tections from fraud and mar- a flurry of bills in recent the assets should be consid-
“I’m glad they recouped. All’s ket manipulation. months to draw jurisdictional ered commodities, which have
well that ends well.” lines. Sens. Cynthia Lummis a broader definition and no
The competition heated up (R., Wyo.) and Kirsten Gilli- full-time regulator.
The bill would expand cover- in recent months as a melt- brand (D., N.Y.) unveiled a pro-
age for post-9/11 veterans who
were exposed to toxic burn pits Rivian Says Climate Deal Hurts EV Startup
overseas, as well as for veterans
of other eras who were exposed BY SEAN MCLAIN Schumer (D., N.Y.) to cut carbon in particular, takes issue with a policy. “With any technology you also criticized the new qualify-
to radiation and the Agent Or- emissions and healthcare costs. planned cap that would make start with a higher price point.” ing requirements, saying they
ange defoliant. The legislation Electric-vehicle startup Riv- any electric trucks, SUVs and would stifle widespread EV
already passed the House and ian Automotive Inc. is warning If it passes in its current vans selling for more than Rivian sells only pickup adoption and unfairly favor a
now heads to President Biden’s that planned revisions to the EV form, the new legislation would $80,000 ineligible for the fed- trucks and SUVs, two body few companies. The Los Angeles
desk for his signature. tax credit would put the young extend the $7,500 federal tax eral subsidy. It also opposes the styles that have exploded in car company said Tuesday it in-
car maker at a disadvantage to credit for EVs but add new re- proposed income restrictions. popularity in recent years and tends to work out ways for cus-
Sen. Jerry Moran (R., Kan.), more-established competitors. strictions Rivian said would Buyers with household incomes tend to sell for higher prices tomers to take full advantage of
the bill’s Republican sponsor, make most of its vehicles ineli- of $150,000 or higher— than sedans and hatchbacks. the existing tax credits.
said on the Senate floor that The proposed changes to the gible for the incentive program. $300,000 for married couples—
he was pleased senators ended federal tax subsidy, which has wouldn’t qualify for the credit While the Rivian R1T pickup Under the current legislation
up bringing the bill to the been in place for years as a way Rivian said the legislation as on new EV purchases. truck and R1S SUV start below electric vehicles are eligible for
floor in a bipartisan manner. to make EVs more affordable, drafted would pull the rug out $80,000, “it doesn’t take much a federal tax credit of up to
are part of a broader legislative from consumers considering a “The whole point of an incen- to push our vehicles over the $7,500, but once a car company
“Our veterans have waited package deal between Sen. Joe switch to EVs. The California- tive is to mainstream a new cap,” Mr. Chen said. Most of has sold 200,000 electrified ve-
long enough,” Mr. Moran said. Manchin (D., W.Va.) and Senate based startup is calling for a technology,” said Jim Chen, Riv- Rivian’s vehicles sell for above hicles, the credit begins to
“Is this bill the way I would Majority Leader Chuck longer transition to the new in- ian’s vice president of public $80,000, he said. phase out and eventually lapses.
draft it if I was the only per- centive program. The company,
son writing the bill? It is not. Rival EV startup Fisker Inc.
It’s a legislative process that
involves the give and take.” U.S. WATCH

The Democratic sponsor was PENNSYLVANIA OBITUARY
Sen. Jon Tester of Montana,
the chairman of the Senate’s Court Backs Expanded Vin Scully, Longtime
Veterans Affairs Committee. Mail-In Voting Voice of Dodgers

“We’ve been fighting for A wide expansion of mail-in SPACE TELESCOPE SCIENCE INSTITUTE/AGENCE FRANCE-PRESSE/GETTY IMAGES Baseball Hall of Fame broad-
this for decades, for decades, voting in Pennsylvania survived a caster Vin Scully, who provided
and I’ll tell you that the last legal challenge Tuesday before STELLAR SHOT: A composite image from the Webb telescope released Tuesday by NASA shows the soundtrack of summer while
few days have been difficult the state Supreme Court. the Cartwheel and its companion galaxies. The Cartwheel Galaxy formed as the result of a high- entertaining and informing
for me. But even more difficult speed collision that occurred about 400 million years ago. Dodgers fans in Brooklyn and
for veterans,” said Mr. Tester Millions of state voters have Los Angeles for 67 years, died
after the vote. “This bill puts chosen to cast ballots by mail in KENTUCKY historic flooding to 37 people as Letcher and three in Perry. Tuesday night, the team said. He
us on a path for finally paying recent elections, although Demo- rescue workers continued President Biden has ap- was 94.
the costs for war.” crats have used it in far greater Flooding Death Toll searching for missing people.
numbers as the law fell out of fa- Increases to 37 proved a disaster declaration As the longest tenured broad-
About 60 veterans have been vor with Republicans. The governor had said that for the state, offering federal caster with a single team in pro
taking shifts at a round-the- Gov. Andy Beshear raised at least seven of the deaths funds to help with the recovery sports history, Mr. Scully began
clock demonstration advocating The 5-2 ruling, with the two the death toll from the state’s were in Breathitt County, two efforts. in the 1950s era of Pee Wee
for the bill’s passage. Among Republican justices both voting were in Clay, 16 in Knott, two in Reese and Jackie Robinson, on
them was Tim Jensen, a 44- no, means expanded vote-by-mail —Allison Prang to the 1960s with Don Drysdale
year-old Marine veteran who will almost certainly be in place and Sandy Koufax, and contin-
served in the Iraq war. He said for marquee races in November ued on into the 21st century. Al-
he had lost fellow Marines in for governor and U.S. Senate. though he was paid by the
his battalion to brain and lung Dodgers, Mr. Scully was unafraid
cancers and other diseases af- “We find no restriction in our to criticize a bad play or a man-
ter exposure to burn pits. Constitution on the General As- ager’s decision or praise an
sembly’s ability to create universal opponent. —Associated Press
The bill adds two dozen mail-in voting,” wrote Justice
health conditions and diseases Christine Donohue in the majority NORTH CAROLINA
the VA automatically considers opinion.
related to military service, in- Deputy Shot While
cluding diseases related to ex- A lower court panel with a Serving Papers Dies
posure to burn pits in combat majority of Republican judges had
zones, pits where trash of all thrown out the law in January, a A sheriff’s deputy died after
kinds was routinely burned for ruling put on hold while the state he and two other deputies were
decades, especially in Iraq and Supreme Court reviewed an ap- shot while trying to serve invol-
Afghanistan. peal by the administration of untary commitment papers at a
Democratic Gov. Tom Wolf. North Carolina home, authorities
More than 260,000 veterans said Tuesday.
have completed the VA’s burn- In the new decision, the jus-
pit-registry questionnaire tices agreed with Mr. Wolf’s argu- The Wayne County deputies
since its inception in 2014, ac- ment that the lower court went to a home south of Golds-
cording to the agency. The wrongly based its decision on boro to serve the papers Mon-
registry allows veterans to court rulings that addressed older day morning when someone in-
document their exposure to versions of the state constitution side opened fire, wounding all
potential hazards. The VA esti- that had invalidated laws passed three. —Associated Press
mates that some 3.5 million in 1839 and 1923 to expand ab-
veterans might have faced ex- sentee voting.
posure. President Biden has
said he believes his son Beau’s —Associated Press
brain tumor and death were
caused by burn-pit exposure.

Inaccurate victim to a hack in 2017 that multiple consumer loan prod- higher the credit score, the Equifax has been working been blunted, some industry
exposed the sensitive personal ucts, not just mortgages, ac- more likely an applicant will closely with lenders and pro- officials said.
Credit information of nearly 150 mil- cording to people familiar get approved and at a lower viding them with updated
lion Americans. with the matter. interest rate. scores, Mr. Singh said in the Fannie Mae and Freddie
Scores Sent statement. “We do not take Mac, which guarantee about
Trade publication National The percentage of incorrect Lenders are asking Equifax this issue lightly,” he said. half of the U.S. mortgage mar-
Continued from Page One Mortgage Professional re- scores provided to lenders for more information and are ket, likely purchased only a
credit decision.” ported on the glitch in late varied, the people said. At one trying to figure out what to do The glitch could land At- relatively small number of
May, saying Equifax had noti- big bank, 18% of applicants for applicants who were de- lanta-based Equifax in more loans at inaccurate prices due
Equifax maintains credit re- fied lenders of erroneous during the three-week period nied credit or offered a higher hot water with its regulator, to erroneous credit scores, one
ports on more than 200 mil- scores during the period in had incorrect scores, with an the Consumer Financial Pro- of the people said. Mortgage
lion U.S. consumers and sells question. average swing of 8 points, one The glitch is another tection Bureau. Under its di- lenders may owe the govern-
them to lenders. The informa- of the people said. setback for Equifax, rector, Rohit Chopra, the ment-controlled companies
tion in these files—including Mark Begor, Equifax’s chief which fell victim to agency is investigating how additional money if borrowers
whether consumers are apply- executive, publicly acknowl- Equifax told one large auto a hack in 2017. the three main credit-report- received higher credit scores
ing for debt, the types of ac- edged the flub at a June inves- lender that about 10% of appli- ing companies—Equifax, Expe- than they should have and
counts they have and whether tor conference, calling it a cants during the three-week interest rate than they de- rian PLC and TransUnion— their loans are deemed riskier
they have a history of paying coding issue that affected period had inaccurate scores, served, the people said. They handle consumer disputes, The than initially thought, accord-
on time—determines consum- “legacy applications that re- according to a person familiar are considering repricing Wall Street Journal previously ing to industry officials. In
ers’ credit scores. Credit sulted in some scores going with the matter. Of those, sev- loans and giving rejected ap- reported. some cases, Fannie and Fred-
scores are among a number of out that had incorrect data.” eral thousand saw a change of plicants an opportunity to re- die could owe lenders refunds
factors lenders consider when He said the company had fixed 25 points or more on their apply, the people said, a task Mortgage lenders sought if the scores were unduly low.
making loan decisions. the problem and takes issues credit score, the person said. complicated by recent inter- about 2.5 million credit scores
with its data quality seriously. In a small number of cases, est-rate increases. in the period in question, ac- A spokesman said the Fed-
The glitch is another set- applicants went from having cording to one industry esti- eral Housing Finance Agency,
back for Equifax, which fell “The impact is going to be no credit score at all to a mate. But because they typi- which oversees Fannie and
quite small,” Mr. Begor said, score in the 700s—or vice cally view credit scores from Freddie, is working with the
“not something that’s mean- versa, the person said. The each of the three credit-re- mortgage giants to assess the
ingful to Equifax.” most widely used credit scores porting companies, the glitch’s scope of the loans affected by
range between 300 to 850; the effects on mortgages may have the glitch.
The glitch, however, af-
fected many lenders across

A6 | Wednesday, August 3, 2022 .

THE WALL STREET JOURNAL.

WORLD NEWS

Foreign Policy Returns to Fore for Biden

Al Qaeda strike, China But the strike, nearly a year THE WHITE HOUSE/REUTERS this weekend that it isn’t a safe an international response to
tensions and Ukraine after the chaotic U.S. with- haven and it isn’t going to be President Vladimir Putin’s war
war are latest in series drawal from Afghanistan, President Biden meets with his national security team. going forward,” John Kirby, a in Ukraine. He has also dealt
of international crises raised questions about the White House national security with the aftermath of the disor-
continuing alliance between against Russia. Administration officials spokesman, said Tuesday. derly withdrawal of U.S. troops
BY TARINI PARTI the Taliban and al Qaeda and Senate Minority Leader pushed back on Tuesday on in Afghanistan—a step that
AND KEN THOMAS Mr. Biden’s decision to pull suggestions that al-Zawahiri’s Mr. Biden said the drone sent his public-approval ratings
troops from the country. Mitch McConnell (R., Ky.) said presence in Kabul meant the strike validated his decision to on a downward trajectory from
WASHINGTON—President Mr. Biden deserved credit for U.S.’s withdrawal had allowed al pull out troops and rely on which they haven’t recovered.
Biden, who campaigned on his The Monday evening disclo- the strike, but he also called Qaeda to move into the country. “over the horizon” surveil-
foreign-policy experience, is sure of the counterterrorism on the administration to come lance and strikes. I made a Mr. Biden has also seen
confronting a series of interna- operation came as Biden ad- up with a security plan for Af- “I think if you were to ask promise to the American peo- much of his economic agenda
tional challenges years in the ministration officials braced for ghanistan, adding the country the members of al Qaeda…how ple that we’d continue to con- remain stalled in Congress for
making, from his decision to House Speaker Nancy Pelosi’s had again become “a major safe they feel in Afghanistan duct effective counterterror- months. Some of those pro-
authorize a military strike to arrival in Taiwan, a move that thicket of terrorist activity.” right now, I think we proved... ism operations in Afghanistan posals were resuscitated in the
kill a mastermind of the 9/11 at- heightened tensions between and beyond,” he said Monday. Senate last week.
tacks to a diplomatic row with the U.S. and China. Beijing “We’ve done just that.”
China and a war in Ukraine threatened possible “disastrous In Mrs. Pelosi’s visit to Tai-
nearing its sixth month. consequences” if Washington At a time of economic un- wan, the president is coping
mishandled the situation with certainty and Americans citing with a foreign-policy challenge
Mr. Biden received biparti- Taiwan, a self-governing island rising inflation and gas prices that his administration’s mili-
san praise for approving a U.S. that China considers to be part as their top concerns, Mr. Bi- tary leadership didn’t want.
missile strike in Afghanistan of its territory. den has been forced to spend a The speaker landed in Taipei
that killed al Qaeda leader Ay- significant amount of his first on Tuesday and was set to
man al-Zawahiri, a founding The events also coincided year and a half in office grap- meet with the Taiwanese pres-
member of the jihadist move- with talks on Monday between pling with international crises. ident. Her visit is the highest-
ment and one of the key strat- top U.S. and Ukrainian officials level trip in 25 years by a U.S.
egists behind an international as the Biden administration Mr. Biden, who served for 12 government official to Taiwan.
campaign of terror that culmi- prepared another aid package years as the chairman of the
nated in the Sept. 11 attacks. to provide additional ammuni- Senate Foreign Relations Com- The White House warned
tion for Himars and artillery mittee and frequently worked China against escalating ten-
systems critical to the coun- with world leaders as vice pres- sions on Tuesday and cast the
try’s attempt to defend itself ident during the Obama admin- visit as a routine trip made by
istration, has helped organize a member of Congress.

Al Qaeda in an interview. “A case in which juddin Haqqani, who leads the intimate and treated with those details of the operation. gence work and the precision
you do not have the opportunity group and is wanted by the great deference and respect,” It was at the safe house strike that killed him are the
Strike Fuels to do extended observation, in FBI for questioning in connec- Mr. Hoffman said. same tools that would be used
which the target is mobile, has tion with terrorist attacks, is that U.S. intelligence agencies against other terrorists.
Questions good operational security and is the current interior minister Some details of the final first observed the man they
located in a rural area would of Afghanistan. The U.S. gov- months of the nearly 21-year became increasingly confident U.N. specialists and private
Continued from Page One make it more difficult to have ernment is still offering a $10 hunt for al-Zawahiri, Osama bin was al-Zawahiri. analysts say the more-immedi-
need a military footprint on this kind of success.” million reward for information Laden’s former deputy, remain ate terror threat from Afghan-
the ground in Afghanistan. leading to his arrest. unclear, making final judgments A senior U.S. official on istan is likely to come from
Critics have seized on the al about Mr. Biden’s overall strat- Monday said there were no U.S. the local branch of Islamic
“The United States contin- Qaeda leader’s presence in a American officials said al- personnel on the ground dur- State, known as ISIS-K, which
ues to demonstrate our resolve tony Kabul neighborhood as ev- Zawahiri’s presence alone ‘He was clearly a ing the drone strike. However, is itself at war with Afghani-
and our capacity to defend the idence that Afghanistan is didn’t mean al Qaeda was re- Taliban intimate,’ a the CIA has made moves to re- stan’s Taliban rulers.
American people against those again becoming a threat source. constituting its old network in terror expert said of cruit in Afghanistan. A U.S. mil-
who seek to do us harm,” Mr. Afghanistan. The officials say Ayman al-Zawahiri. itary veteran who works on ef- A U.N. Security Council re-
Biden said Monday evening. U.S. officials said the Taliban they are more worried about forts to protect former Afghan port released in July said al
had violated a February 2020 the group’s affiliates in Africa egy difficult. The unknowns in- commandos and others at risk Qaeda is unlikely to launch at-
Former top U.S. officials and agreement signed during the and Yemen than the remnants clude from which country the said the agency had ap- tacks outside of Afghanistan
analysts said the strike, while a Trump administration that stip- of the Afghan-based group. drone that fired two missiles at proached the organization for because of its capabilities, and
major tactical success, doesn’t ulated the group wouldn’t allow him was launched, and how U.S. possible collaboration. restraint by the Taliban.
itself validate Mr. Biden’s “over Afghanistan to be used as a ha- Al-Zawahiri’s presence in a spy agencies first detected a hu-
the horizon” strategy. ven for al Qaeda or other part of the city inhabited by man network that supported the Charles Lister, a senior fel- Mr. Lister also said the al
groups to hatch attacks against diplomats and privileged for- al Qaeda emir, tracking his fam- low at the Middle East Insti- Qaeda leader didn’t pose an
“Let’s remember, this is one the U.S. and its allies. It appears eigners demolishes claims of ily to a safe house in the Afghan tute think tank, said tracking immediate threat beyond Af-
strike in a year,” Gen. Frank that while a Taliban faction the Taliban that they had sev- capital where he was found. U.S. down one High-Value Target ghanistan’s borders.
McKenzie, who led Central known as the Haqqani network, ered ties with al Qaeda, and will officials declined to disclose after 20 years “is a massive ac-
Command when U.S. and coali- which has close al Qaeda ties, undermine Taliban efforts to complishment. But it’s totally “Ayman al-Zawahiri was
tion troops withdrew from Af- knew of al-Zawahiri’s presence unfreeze $9 billion in assets the different from detecting a plot, never going to be a critical
ghanistan in August 2021, said in Kabul, other factions didn’t. U.S. is holding, said Bruce Hoff- or multiple plots, or plotters.” plotter of terrorist attacks
man, an expert on terror at abroad,” he said. “He’s the
The Haqqani network is Georgetown University. One official familiar with the overall grandfather figure.”
also highly placed in the cur- situation disputed that, saying
rent Afghan government; Sira- “He was clearly a Taliban al-Zawahiri was a hard target, —Jessica Donati, Nancy A.
and that the grueling intelli- Youssef and Alan Cullison
contributed to this article.

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WORLD NEWS Wednesday, August 3, 2022 | A7

Taliban Relations With al Qaeda Endure Reliance’s

BY MARGHERITA STANCATI Bid Wins
AND JESSICA DONATI
India 5G
Al Qaeda leader Ayman al- EPA/SHUTTERSTOCK
Zawahiri had been living for Auction
months in the heart of Kabul, Taliban security stand guard in the neighborhood where a U.S. drone strike killed the al Qaeda leader Ayman al-Zawahiri in Kabul.
a short walk from the now- BY RAJESH ROY
closed British embassy and mented through intermarriage Haqqani network—the group During negotiations be- ment included not only groups
next door to a house owned by and other ties for generations. behind most of the war’s deadli- tween the Taliban and the U.S. but individuals,” said the for- NEW DELHI—Reliance
a longtime ally, Sirajuddin est attacks against foreigners— government aimed at securing mer top U.S. envoy to Afghani- Group emerged as the biggest
Haqqani, the Taliban’s power- “The operation shows” that was especially close to al Qaeda. an American withdrawal from stan, Zalmay Khalilzad. buyer in the Indian govern-
ful minister of interior, ac- the Taliban “will certainly the country, Washington tried ment’s first auction of 5G
cording to a person briefed by never divorce from al Qaeda,” “Al Qaeda was instrumental for months to secure concrete Among the al Qaeda mem- spectrum, offering about $11
Taliban officials. said a former CIA officer who in training and building capac- promises from the Taliban to bers who moved to Kabul was billion over 20 years for the
served several tours of duty in ity within the Taliban. They break ties with al Qaeda. al-Zawahiri, who became the rights to airwaves as it seeks
In the hours after the ter- Afghanistan. were for the Taliban what group’s leader after bin Laden to cement its leading position
rorist mastermind was killed Western forces were for us,” In the end, the Taliban only was killed by U.S. special oper- in the world’s second-biggest
by a U.S. drone strike as he When the Taliban came to committed to preventing the ations forces in Pakistan in wireless market with a rapid
stood on the balcony of his power in 1996, Osama bin ‘The operation shows’ organization from using Afghan 2011. He moved to Kabul in the rollout of the technology.
home, Taliban security offi- Laden was already in Afghani- the Taliban ‘will soil to plot attacks against the fall of 2021 and lived there un-
cials descended on the build- stan, where he enjoyed a close certainly never divorce U.S. and its allies. After the der the protection of Sirajud- The acquisition by Reliance
ing to wipe away signs of al- rapport with a range of Isla- from al Qaeda.’ deal was signed, al Qaeda’s din Haqqani, according to the Jio Infocomm Ltd. of 24,740
Zawahiri’s presence and to es- mist groups. The Taliban’s leaders were allowed to stay. person briefed by several Tali- megahertz of airwaves across
cort his wife, daughter and then-leader, Mullah Mohammad said Ali Mohammad Ali, who ban officials, including mem- multiple bands represented
grandchildren to a new loca- Omar, offered his people pro- served as a senior security of- In a report published this bers of the Haqqani group. more than half the $19 billion
tion, said a senior U.S. admin- tection. After the Sept. 11, 2001, ficial in the fallen U.S.-backed year, the United Nations Secu- of commitments received by
istration official. attacks, the Taliban refused to Afghan Republic. rity Council found that al Sunday’s drone strike wasn’t the government after a week of
give up bin Laden to the U.S., Qaeda members helped the Tal- the first time al-Zawahiri was bidding that ended late Mon-
On Tuesday, Taliban police paving the way for the start of The Taliban have struggled iban return to power in August the target of U.S. fire power. A day. India is seeking to close
and intelligence agents swarmed the war. That decision forever to balance their desire for rec- last year, in both an advisory U.S. airstrike in December 2001 the gap with other countries—
the area, warning people to bound the two Islamist groups. ognition with their loyalty to role and by deploying combat- in eastern Afghanistan killed his including China and South Ko-
keep away, and threatening the terrorist group. ants to Taliban units. Many al first wife and two of his chil- rea—that have already in-
journalists with arrest. The In the early years of the in- Qaeda members moved to Ka- dren. Former U.S. officials say stalled 5G, which is far faster
house is tucked away on a dead- surgency, al Qaeda provided vi- bul after the U.S. exit was com- he had slipped off the radar in than the present networks and
end street in Sherpur, a Kabul tal support to the Taliban, train- plete, the U.N. report said. recent years, but he was be- seen as key to a new era of
neighborhood once popular with ing its fighters in skills that lieved to be in one of Afghani- digitally connected industries.
the city’s Western residents. would prove decisive in winning “It is a clear violation of stan’s neighboring countries.
the war. The Taliban’s so-called what they agreed to, the agree- New Delhi aims to complete
The leaders of al Qaeda and the allocation of airwaves by
the Taliban have lived in sym- mid-August, with 5G services
biosis for decades, ever since offered in key cities by Sep-
Osama bin Laden found refuge tember or October, Telecom
in Afghanistan under the Tali- Minister Ashwini Vaishnaw
ban government in the 1990s. told The Wall Street Journal
That alliance has been remark- recently.
ably resilient, surviving the
toppling of the Taliban regime Telecom giant Bharti Airtel
and two decades of U.S.-led Ltd. made the second-highest
military presence. bid at 430.8 billion rupees, fol-
lowed by the 188 billion rupee
And, as the refuge chosen offer of Vodafone Idea Ltd., a
by al-Zawahiri shows, the rela- joint venture between the
tionship remains strong, de- U.K.-based telecom group and
spite pledges made by Taliban Aditya Birla Group.
leaders seeking international
assistance that their govern- Adani Data Networks Ltd.
ment wouldn’t allow terrorist of the Adani Group bid for a
organizations to plot attacks small slice of the airwaves
on the U.S. or other Western that it intends to use as pri-
nations from its territory. vate networks for its ports,
airports, logistics, transmis-
Since the Taliban swept to sion and manufacturing opera-
victory nearly a year ago, they tions.
have said they want to build
peaceful relations with the Appetite at the auction was
rest of the world. At the same boosted after the government
time, they have been unwilling allowed companies to pay in
to renounce their partnership 20 equal installments.
with al Qaeda—bonds ce-

VINCENT THIAN/ASSOCIATED PRESS

Anti-death-penalty activists protest at the Singapore High Commission in Malaysia in July.

Rights Groups Criticize
Singapore Drug Executions

BY FELIZ SOLOMON and assembly. But the pace of tice and is scheduled to hang GLOBAL HISTORY
recent executions has led to a this week, say activists oppos-
SINGAPORE—This city-state domestic debate about capital ing the death penalty. 30-INCH GLOBE
has executed eight people for punishment. No executions
drug trafficking since March, took place in the preceding two According to advocacy Exhibition globe. Remarkable artistry. Renowned firm.
including two men who were years as several cases involv- group Harm Reduction Inter-
hanged Tuesday, drawing criti- ing the death penalty moved national, 35 countries still al- This monumental terrestrial globe, crafted by the acclaimed firm
cism from international hu- through the legal system, said lowed the death penalty for W. & A.K. Johnston, serves as a true document of its time. After
man-rights groups of what au- Singapore’s Home Ministry. drug offenses as of 2021. Sing- receiving a royal appointment from Queen Victoria, the company
thorities in the country call a apore was one of eight desig- unveiled this innovative 30-inch design at the 1851 Crystal Palace
zero-tolerance approach to “Young Singaporeans tend nated as “high application Exhibition in London, where it was the first and largest of its kind.
drug offenses. to have more liberal attitudes states”—those that carried out Globes of this large size are extremely rare. This exceptional
toward drug use, it doesn’t in- sentences recently or fre- example was created in the mid-19th century, and the atlas was
Trafficking drugs in excess duce the same level of moral quently. China, North Korea updated by the Johnston firm circa 1890. Globe and base circa 1851;
of certain amounts carries a panic as it does among older and Iran also were on the list map updated circa 1890. Globe: 30“ dia. Base: 38” dia x 47“ h. #31-3358
mandatory death sentence in generations,” said Kirsten Han,
Singapore, though in some a Singaporean journalist and The U.S. was labeled a Scan to see a video
cases judges can punish with an activist with the anti-death- “symbolic application state,” of this globe
life imprisonment. For heroin, penalty nonprofit Transforma- meaning the death penalty
that amount is roughly half an tive Justice Collective. “We’ve could be used for drug of- 622 Royal Street, New Orleans, LA • 877-677-2801 • [email protected] • msrau.com
ounce. For cannabis, it is just also seen a lot more willing- fenses but hadn’t been for at Since 1912, M.S. Rau has specialized in the world’s finest art, antiques and jewelry.
over 1 pound. Singapore au- ness to question the death least five years. The European Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
thorities say the strict penal- penalty and how it’s linked to Union has abolished the death
ties deter drug crimes and other social justice issues like penalty in all circumstances
have helped prevent major inequality, race and poverty.” including grave crimes.
drug syndicates from establish-
ing themselves in the country. Of the eight men Singapore “Drug trafficking inflicts
executed this year, the Trans- very serious harms, not only
The United Nations human- formative Justice Collective on individual abusers, but also
rights office says using the says three were Malaysian na- families and the wider soci-
death penalty to punish drug tionals and the rest were ethnic ety,” Singapore’s Home Minis-
offenses violates international Malay Singaporeans, a minority try said. It also pointed to ma-
human-rights law. It advocates group that accounts for 13.5% jor recent drug busts in the
for universal abolition of the of Singapore’s population, region, saying that as a trans-
death penalty, and urges which is mostly ethnic Chinese. port hub, Singapore would be
states that still use the prac- The government didn’t disclose “swamped with drugs” if not
tice to limit its application to the names or details of the two for its strict approach.
grave crimes that involve in- men who were hanged Tues-
tentional killing, it says. day, citing one of the men’s “The capital sentence is
family’s request for privacy. passed and carried out only
Criticism of the government after a rigorous legal process
is rare within Singapore, which At least one more prisoner with stringent judicial safe-
has tight controls on speech has received an execution no- guards,” Singapore’s Home
Ministry said.

A8 | Wednesday, August 3, 2022 ***** .

THE WALL STREET JOURNAL.

FROM PAGE ONE

Pelosi her not to go, in deference to Shanghai duct live-fire exercises in the in a recent string of American
the separation of powers among airspace and waters around Tai- delegations to the island, an in-
Arrives in the branches of government. CHINA Taipei wan for four days starting dication of growing bipartisan
Hong Kong Thursday at noon, with detailed support. She is the most senior
Taiwan Chinese leader Xi Jinping TAIWAN coordinates of locations. A map U.S. politician to visit Taiwan
warned President Biden during Speaker Pelosi’s flight accompanying the statement since then-House Speaker Newt
Continued from Page One a two-hour call last month about landed at 10:44 AM ET showed six zones that encircle Gingrich, a Republican, in 1997.
hold the line of defense for de- a fallout in relations over the the island. In a separate state-
mocracy.” visit to Taiwan. Mr. Biden told THAILAND Manila SPAR19 ment, the Eastern Theater Com- In April, Sen. Lindsey Gra-
Mr. Xi that U.S. policy toward Bangkok VIETNAM Pacific Ocean mand said it would start a series ham (R., S.C.) and Democratic
China’s Foreign Ministry Taiwan remained unchanged. of military operations around Sen. Bob Menendez of New Jer-
said the trip “severely in- EVA Air 218 PHILIPPINES Flights the island Tuesday night. sey, chairman of the Senate For-
fringes upon China’s sover- John Kirby, the White House Kuala Lumpur South Speaker eign Relations Committee, paid
eignty and territorial integ- National Security Council China Sea Pelosi’s China’s national legislature, a surprise visit to Taiwan, part
rity” and “gravely undermines spokesman, reiterated Tuesday Singapore Eastern China 722 Commercial the Defense Ministry and the of a wider visit to the region.
peace and stability across the that Mrs. Pelosi’s visit was con- flights Communist Party’s Taiwan pol-
Taiwan Strait.” sistent with U.S. policy. MALAYSIA icy office also issued strongly On Tuesday, 26 Republican
worded statements. Mrs. Pelosi senators voiced support for
Beijing claims Taiwan as its Beijing shouldn’t view the INDONESIA “committed a deliberate viola- Mrs. Pelosi’s visit, saying in a
own territory and hasn’t ruled visit “as some sort of crisis or tion, maliciously provoking and joint statement that the trip “is
out using force to bring the is- use it as a pretext to increase Source: Flightradar24 manufacturing a crisis,” said consistent with the United
land under its governance. The aggressiveness and military ac- Carl Churchill/THE WALL STREET JOURNAL Senior Col. Wu Qian, a Defense States’ One China policy.”
U.S. abides by a “One China” tivity in or around the Taiwan Ministry spokesman, who
policy that acknowledges—but Strait,” Mr. Kirby said. side the Grand Hyatt, where In describing the flights, added that the PLA would con- Ahead of Mrs. Pelosi’s arrival
doesn’t endorse—Beijing’s Mrs. Pelosi spent the night, CCTV used phrasing that could duct a series of targeted mili- in Taipei, China had already dis-
claims over Taiwan, and is Mrs. Pelosi’s visit to Taiwan some supporters loudly wel- either mean the Su-35s were tary actions in retaliation. closed some military exercises
committed by law to sell weap- comes amid a broader trip by comed her—while protesters flying across the Taiwan Strait taking place off its coast this
ons to Taiwan for its defense. U.S. lawmakers across Asia. held up signs reading “Yankee or through it. It couldn’t be de- China’s Foreign Ministry week. The PLA’s Eastern The-
The plane carrying Mrs. Pelosi Go Home.” termined what flight paths the warned of potentially “disas- ater Command, which oversees
Mrs. Pelosi, a critic of the and other Democratic lawmak- aircraft followed. Taiwan’s trous consequences” if Wash- forces positioned closest to Tai-
Chinese Communist Party, ers departed from the Malay- China’s military responded Ministry of National Defense ington mishandled the situation wan, published a video on social
called her visit a reaffirmation sian capital of Kuala Lumpur with a show of force. The Peo- responded by saying that “ru- between China and Taiwan. media Monday that depicted
of support for Taiwan that is in on Tuesday afternoon and took ple’s Liberation Army sent an mors” about Chinese Su-35 air, sea and land forces training
line with longstanding U.S. pol- a roundabout route that ap- unspecified number of Russian- fighters flying over the Taiwan U.S. officials have said that and firing missiles.
icy and said the trip was part peared designed to avoid tran- made Su-35 jet fighters flying Strait weren’t true. Beijing appeared to be posi-
of a broader push to bolster siting the South China Sea, over the Taiwan Strait, Chinese tioning itself to make re- China’s benchmark Shanghai
democratic ideals. where Beijing has a military state broadcaster China Central Minutes after Mrs. Pelosi’s sponses to the visit, including Composite Index closed 2.3%
presence. The plane landed in Television reported minutes plane landed, the PLA an- staging military drills, firing lower as investors weighed the
The White House had sig- Taipei at 10:44 p.m. local time. ahead of Mrs. Pelosi’s arrival nounced via the official Xinhua missiles near the island, or risk of tensions between Bei-
naled its discomfort with Mrs. on Tuesday evening. News Agency that it would con- sending more aircraft and jing and Washington. Shares of
Pelosi’s trip, but officials said The words “Welcome to TW ships into areas closer to Tai- some defense-related compa-
the administration hadn’t asked Speaker Pelosi” were displayed wan where they haven’t previ- nies surged. At midday
on the facade of Taiwan’s tall- ously operated. Wednesday the index was flat.
est skyscraper, Taipei 101. Hun-
dreds of people gathered at The trip by Mrs. Pelosi —Brian Spegele
Taipei Songshan Airport to marks the highest-profile visit and Natalie Andrews
greet Mrs. Pelosi’s plane. Out- contributed to this article.

SoftBank KIM KYUNG-HOON/REUTERS dispute, people familiar with
the matter have said.
Loses in SoftBank’s bet on startups has hurt it in the tech rout. CEO Masayoshi Son has said the firm will emerge stronger as the sector grows.
When the Federal Reserve
Tech Again about Vision Fund 1, and I Capital, now-bankrupt con- funds. They were moving often swayed by his staff’s ar- signaled last fall it would raise
have very little faith in a lot of struction startup Katerra Inc. more quickly and spreading guments for or against an in- interest rates, steam began to
Continued from Page One the Vision Fund 1 invest- and a failed company that their bets broadly. SoftBank vestment, and less likely than leak out of tech valuations.
SoftBank’s nearly 300 private- ments,” said Mio Kato, an ana- promised to deliver pizza needed to do better. before to shove more money
company holdings yet to be lyst and founder of Light- made by robots. at startups than the firms SoftBank’s $700 million in-
written down in value to re- stream Research. Its losses are He became more personally sought. And unlike many in- vestment in Berkshire Grey
flect the market decline. the result of strategy of “just The highest-profile setback involved in Vision Fund 2, and vestors in venture capital, the Inc., a warehouse robotics
very aggressively betting on was WeWork, the office-space set up a structure for the staff SoftBank team avoided push- company that went public in
It is a familiar position for the dream, regardless of startup, into which Mr. Son di- to spend money faster. On a ing deeply into a sector now early 2021, has shrunk to less
the 64-year-old Mr. Son. In facts,” Mr. Kato said. rected more $10 billion with large spreadsheet, Mr. Son doing poorly, cryptocurrency. than $150 million, based on its
each major market swing in the idea it was a disruptive and his deputies doled out the stock performance since Soft-
the past generation, he has Mr. Son has said he is opti- tech company. After an world of potential startup in- Employees viewed other Bank’s last earnings report.
dazzled the tech sector with mistic the storm will pass, and aborted WeWork IPO in 2019, vestments to individual Vision changes less positively. Facing
lavish investments as prices SoftBank will emerge stronger SoftBank bailed out the com- Fund staff members who spe- competition from other inves- SoftBank led a $300 million
crested, then been deluged in the future as the tech sec- pany at a valuation $39 billion cialized in various categories. tors, SoftBank pared back its investment in online mental-
with losses in a subsequent tor grows. lower than its peak. background research into health startup Cerebral Inc.
decline. SoftBank logged its calls to founders and companies to get Cerebral has since faced criti-
For now, SoftBank is cut- “I made a mistake,” Mr. Son the target companies about deals done quickly. cism over its approach to issu-
“When he believes some- ting back significantly on told investors at his quarterly potential investment in the ing prescriptions for drugs
thing is the future he will lit- startup investments. “We results in November 2019, The staff relied on a hand- such as Adderall, and the Fed-
erally take everything he has would like to pile up lots of calling it “a very harsh les- 183 ful of signals to move quickly eral Trade Commission and
and bet it on that,” said Gary cash,” Mr. Son said in a re- son.” and be less cautious with due the Justice Department have
Rieschel, who helped lead Mr. corded video accompanying How many companies Vision diligence and valuation, the opened inquiries. Cerebral has
Son’s startup investments in the earnings report in May. Mr. Son said SoftBank Fund 2 invested in last year. former employees said. One said no laws were broken.
the 1990s and 2000s and “We will be much more care- would be deliberate and cau- signal: If at least two other
served on SoftBank’s board. ful when we invest new tious as it started Vision Fund spreadsheet and displayed it top-tier venture investors Greater pain will likely
money.” 2 around the same period. on a weekly conference call were backing a company, in- come once SoftBank revalues
Despite his investment This time, profits were in and with Vision Fund staff. vestment was encouraged. the hundreds of still-private
duds, Mr. Son—SoftBank’s Richest in the world rapid growth with big losses companies in its portfolio, a
founder and 29% owner, ac- was out, he told the staff. He The process had an aura of Vision Fund 2 spent furi- slow process that typically re-
cording to FactSet—has had a Mr. Son founded SoftBank couldn’t win over outside in- “dial for dollars,” one former ously in 2021, investing in a lies on their raising a new
few enormous successes over in the early 1980s and built it vestors, so Vision Fund 2 held executive said. Another com- startup every other day, on round of financing.
the years, giving him cash to up through an eclectic array SoftBank’s money alone. pared it to a sales-pitch list in average—even more than in
spend and reason to hope an- of investments. He poured “Glengarry Glen Ross,” the the peak year of Vision Fund 1, Backing Klarna
other hit is around the corner. money into startups in the On a conference call to play about a set of anxious which was nearly twice its
late-1990s dot-com boom. Bets complete the fund’s first in- real-estate salesmen. size. A $4 billion loan for Vi- Among its biggest invest-
A SoftBank spokesperson on winners such as Yahoo Inc. vestments, Mr. Son berated sion Fund 2 added a layer of ments was the “buy now, pay
said Mr. Son declined to com- made him the world’s richest staff over one company with Rather than writing giant risk uncommon for venture- later” company Klarna Bank
ment. man for a few days, he has characteristics he previously checks in a few sectors, as capital funds, which are typi- AB. Some investors saw the
said, before SoftBank’s stock lauded. He was worried that SoftBank did for its first Vi- cally debt-free. Swedish startup, which en-
SoftBank is expected to re- tumbled 99% in the dot-com the company, Alto Pharmacy, sion Fund, it sprinkled money ables consumers to put off
port billions of dollars of addi- bust. was spending too much and widely. Bets included health- Frustration mounted among payment for an online pur-
tional losses in its two giant didn’t need to be growing as care, logistics, business soft- executives over the accelera- chase, as a possible future
startup funds early this Mr. Son rebuilt with a pivot quickly as it was, according to ware and videogaming. The tion. Some bristled at the PayPal, a financial player
month, following $27 billion to the Japanese high-speed in- former employees who were fund was essentially a broad sales culture, while some felt poised to steal business from
of losses from the funds re- ternet. A marketing push by on the call. But he agreed to bet on the future of startups. they could make more at com- banks.
ported for the fiscal year SoftBank involved women in the deal, and SoftBank an- peting venture-capital firms,
ended March 31. The funds miniskirts handing out mo- nounced it had led a $200 mil- Many changes were posi- former executives said. Klarna pivoted to rapid
have invested more than $135 dems on Tokyo streets. He lion investment in early 2020. tive, former executives said. growth, suffering widening
billion in startups since 2017, then made a leveraged bet to They said Mr. Son was more Top investing partners who losses but driving its valua-
according to SoftBank filings. buy Vodafone Group PLC’s The pace of startup invest- left included Deep Nishar, Jeff tion to $10 billion by late
Japanese operations in 2006. ment was slow in 2020 as Mr. Housenbold and Ervin Tu, hol- 2020, nearly triple that of
Startups have been the lat- SoftBank’s shares plunged in Son set his sights elsewhere in lowing out the U.S. team. A spring 2019, according to re-
est focus at SoftBank, known the 2008 financial crisis, amid the SoftBank empire. He also top deputy to Mr. Son, Mar- search firm PitchBook Data
for daring bets in the past on concerns about debt. turned to a fast-rising Nasdaq celo Claure, left after a pay Inc.
companies including Sprint and made an enormous bet on
Corp. and Alibaba Group Hold- The company rebounded big tech stocks, using options. Quarterly gains/losses of Amounts invested by Mr. Son was eager to get
ing Ltd.—as well as for a stock again. This time it was buoyed After stocks turned down deeper into fintech, and Mr.
price that has surged up and by the fruits of an earlier, ex- briefly, SoftBank reported los- SoftBank's Vision Funds 1 and 2 SoftBank's Vision Funds Claure, then SoftBank’s chief
down with the success and traordinarily successful in- ing about $5.4 billion on the operating officer, introduced
failure of Mr. Son’s bets. vestment in Alibaba, as well complex deal. $30 billion Vision Fund 1 Vision Fund 2 him to Klarna CEO Sebastian
as by the ultimate success of Siemiatkowski. SoftBank in-
While he has always man- its Vodafone purchase. By late 2020, growth stocks 20 $50 billion vested $1.7 billion in Klarna in
aged to rebuild after setbacks, were booming. Two of Soft- the first half of 2021 at an av-
Tokyo-based Mr. Son now In 2017 Mr. Son launched Bank’s early investments, in 10 40 erage Klarna valuation of
faces a dwindling bench of the $100 billion Vision Fund 1, DoorDash Inc. and Korean e- about $35 billion, people fa-
lieutenants and a company the world’s largest private in- commerce company Coupang 0 30 miliar with the investment
that has been culling its his- vestment fund, which included Inc., produced more than $35 said. They said SoftBank also
torical cash cows. Rajeev cash from Saudi Arabia and billion in combined paper –10 20 agreed at the time that Vision
Misra, who oversaw startup Abu Dhabi. Making decisions profits at their peak. Fund 2 would pour a further
funds, stepped back from his he has said were heavily influ- –20 10 $2 billion into Klarna.
role last month after a stream enced by his gut, he showered The results turned Mr.
of other departures, and Soft- the tech sector with unprece- Son’s attention back to start- –30 0 As the stock market began
Bank has been gradually sell- dented sums, often giving ups, and he wanted Vision to wobble, SoftBank changed
ing down its stakes in Alibaba startups far more funding Fund 2 to start spending far 2019 ’20 ’21 ’22 2017 ’18 ’19 ’20 ’21 ’22* its plans. Mr. Claure left at the
and a Japanese cell carrier. than they requested. more, former employees said. start of 2022, and SoftBank
*Data for 2022 through March 31 canceled the additional invest-
SoftBank has grown more Flops followed. Collectively, The former staffers say Mr. Note: Quarterly gains/losses are converted from Yen ment in Klarna.
reliant on its pair of startup the fund lost billions on now- Son told them he was con- Source: SoftBank Group
funds, the Vision Funds 1 and insolvent financier Greensill cerned by the growth of in- Early this year, Klarna,
2. Combined, the funds’ pub- vestment rivals such as Tiger burning through SoftBank’s
licly traded shares have fallen Global and competing hedge cash, sought to raise funding
by about $9 billion since Soft- at a higher valuation, only to
Bank’s last earnings report. find the market had shifted.
The valuation Klarna could
A main concern, said for- hope for kept falling, from
mer employees and analysts, about $50 billion to about $15
is Vision Fund 2, a fund that billion, The Wall Street Journal
was meant to be more disci- reported in June. In July, exist-
plined than its predecessor ing backers including Sequoia
and one to which SoftBank Capital valued Klarna at $6.7
committed $56 billion. Some billion in an investment round.
analysts said they feared its
losses could be as severe as Sequoia partner Michael
those of high-growth tech Moritz, Klarna’s chairman,
stocks, which are down some said the drop was “entirely
60% since values peaked. Vi- due to investors suddenly vot-
sion Fund 2 is leveraged, and ing in the opposite manner to
most of its investments are the way they voted for the
still private. past few years.”

“I’m a lot more worried SoftBank declined to partic-
about Vision Fund 2 than I am ipate in the round, people fa-
miliar with the discussions
said.

—Ben Dummett contributed
to this article.

.

PERSONAL JOURNAL.

© 2022 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Wednesday, August 3, 2022 | A9

BY ANDREA PETERSEN AND ALEX JANIN Tame Your Stress Level How nature walks help
Walking With a Friend
I f reducing stress has been on Walking briskly activates the
your summer to-do list, The combination of exercise, getting out in nature and connecting with body’s stress response. And when
there’s one powerful thing other people improves hormonal balance, boosts coping mechanisms the walk is over, the stress system
you can still do before the comes back down to baseline. Reg-
PHOTO ILLUSTRATION BY JAN BUCHCZIK FOR THE WALL STREET JOURNAL, ISTOCK (2) season ends: get in the habit ular exercise helps your stress re-
of taking a walk outside with sponse become more efficient,
a friend. says Jennifer Heisz, associate pro-
fessor in the department of kinesi-
Stress is battering us on many ology at McMaster University in
fronts. About 87% of adults said Hamilton, Ontario.
rising prices due to inflation are a
significant source of stress, ac- Talking with trusted
cording to a March survey com-
missioned by the American Psy- friends helps people
chological Association. High
prices, summer travel snafus and process stressful events
an ever-morphing virus haven’t
made it easy to relax. Once Sep- and lifts self-esteem.
tember hits, we’ll be back to bus-
ier offices, hectic school-day rou- The exercise you get while
tines and jam-packed weekends. walking briskly also strengthens
To relax before all that starts, the functioning of the serotonin
there’s a science-backed way to system in the brain, which affects
destress. mood, and the dopamine system,
which is involved in anticipating
A brisk walk in nature with a rewards, Dr. Heisz notes. And the
friend combines three of the most activity increases the release of
effective stress-reducing and resil- neuropeptide Y, a substance that is
ience-building techniques, accord- linked to stress reduction.
ing to psychologists and scientific
research: physical exercise, social As little as 10 minutes of sitting
connection and spending time in or walking in nature can decrease
nature. The activity works by help- a person’s heart rate, blood pres-
ing normalize the hormonal sure and cortisol levels, as well as
changes that result from chronic self-reported stress levels, accord-
stress and boosting the emotional ing to Don Rakow and Gen Mere-
resources that help us cope. dith, co-lead authors of a 2020
study about the connection be-
“Even if it’s just 20 minutes tween mental health and nature.
around your neighborhood, [the
walk] is good for you physically, One possible explanation, the
immunologically, especially when researchers say, is that spending
doing it with someone else,” says time in nature lowers the activity
Helen L. Coons, associate profes- of our sympathetic nervous sys-
sor and clinical health psycholo- tem, which regulates stress hor-
gist in the department of psychia- mones, and taps into the para-
try at the University of Colorado sympathetic nervous system,
Anschutz Medical Campus. which promotes our calm and re-
laxation responses.
How stress affects
our bodies The added benefits
of friends
A growing number of scientific
studies show that chronic Taking that hike with a loved one
stress can lead to a host of health can further reduce stress by add-
problems, including depression, ing the important element of so-
heart disease, immune-system cial connection. Talking with
problems and obesity. About trusted friends helps people pro-
three-quarters of people surveyed cess stressful events and lifts self-
by the APA said they are over- esteem, says Bert Uchino, a pro-
whelmed by the number of crises fessor of psychology at the Uni-
facing the world. Half said housing versity of Utah. Social support
costs are a significant stressor. has positive effects on the brain
and body, scientific research
Not all stress is bad, of course. finds.
Stress in small spurts—called
acute stress—is crucial to our sur- Earlier this year, Cassie Moreno
vival. When we perceive a threat, was in a rut of stress and anxiety.
such as a car barreling toward us She was starting a new job, strug-
or a critical work deadline, our gling to make new friends during
brains prompt the adrenal glands the pandemic, and going through a
to release the hormone epineph- breakup.
rine, also known as adrenaline.
That makes the heart pump faster, While scrolling through TikTok
moving blood to muscles; breath- in January, a post about a New
ing quickens, sending extra oxygen York City-based walking group for
to the brain; and a glucose surge women caught Ms. Moreno’s eye.
gives the body a burst of energy. One day when she was feeling par-
The response heightens our senses ticularly low, she joined the group.
and makes us more alert. Strolling along the Hudson River
with other women in the group,
The adrenal glands also release the 26-year-old Maine native says
the hormone cortisol. When the she felt an immediate surge of
brain no longer detects the threat, confidence and calm.
cortisol levels fall. When stress be-
comes chronic, our cortisol levels “I was, like, how do we live
stay elevated, which scientists be- here? Look at the water! Look at
lieve leads to inflammation that is the Statue of Liberty! How did we
at least partly responsible for get this lucky?” she says.
health problems.

Essay selves. Some schools stick with fairly Wake Forest University has asked Yvonne Romero DaSilva, vice presi- could give any historical figure any
students to give a top 10 list with dent for enrollment at Rice, says more piece of technology, who and what
Prompts Get standard snoozers, such as “Why this the theme of their choice. The Uni- than a few applicants have sent a would it be, and why do you think
versity of Vermont asks applicants a photo of rice—the actual grain. “One they’d work so well together?”
Absurd college?” or “How did you learn from brain freezer, related to a Vermont might consider that clever,” she says.
brand: “Which Ben & Jerry’s ice “But it’s been done so many times “I do like how creative they are
Continued from Page One and overcome an obstacle?” cream flavor (real or imagined) best that it proves to be unoriginal.” with these,” she says, “but I prefer
Take the University of Chicago, describes you?” prompts that are more cookie-cutter.”
Others get more eccentric, The University of Chicago might
which asks among its 2022-23 appli- Ava Eros, who faced the essay get Latin honors in unconventional Leah Beach, from Houston, rel-
cation essay questions: “What advice though—schools say—with a purpose. question, picked the limited-edition essay prompts. Each year, applicants ished the university’s unusual
would a wisdom tooth have?” “Chip Happens,” a chocolate-ice- must answer one of a few essay prompts when she applied last year.
Peter Wilson, the University of Chi- cream base with fudge chips and questions. The queries are drawn
“What am I supposed to do with swirls of potato chips. The combina- from ideas submitted by admitted, One intrigued her: “The word floc-
that?” says Rachel, who is 16 years cago’s director of admissions, ex- tion served as a metaphor for her current and former students. Appli- cinaucinihilipilification is the act or
old and still weighing where she will twists and turns in adolescence, cants can also dig through the habit of describing or regarding some-
apply. plained what whimsical prompts, such thing as unimportant or of having no
value. It originated in the mid-18th
Back-to-school season is ap- as the school’s wisdom-tooth query, century from the Latin words ‘floccus,’
proaching, and for many rising high- ‘naucum,’ ‘nihilum’ and ‘pilus’—all
school seniors, so is the grinding can drill down and extract from the words meaning ‘of little use.’ Coin
process of applying to college. Most your own word using parts from any
college applications—including the applicants: “How do they think? How language you choose…”
Common Application and the Coali-
tion for College—opened on Monday. do they play with ideas?” Off-the-wall Creativity struck her one day as
A key part of the frothing madness she walked the empty hallways of
CLOCKWISE FROM TOP LEFT: RACHEL QUAYE-ASAMOAH; LEAH BEACH; TIFFANY HAGLER-GEARD/BLOOMBERG; VICTORIA ANANE; TAYLOR ORTIZ of college-admissions season: craft- prompts, which have long been a tra- her high school, searching for her
ing the perfect essay. lost Yeti water bottle. She says she
dition at the school, also tell the ap- felt a combination of displacement
Essays might now carry more and tranquility.
weight in the increasingly competi- plicant something
tive admissions process as about Her word: solipsilocosm, derived
72% of schools have already made about the university. from “sol,” meaning alone or com-
college entrance exams optional next fort in Latin, “psil,” meaning bare in
year, a shift away from standardized “Constantly pushing Greek and containing the Latin root
tests that accelerated during the “sil,” meaning quiet, and “cosm,” or
pandemic. These teenage treatises boundaries and cre- universe.
are a chance to shine creatively, and
often, to stare bleary-eyed at a blank ativity, that’s the type Once accepted, she could submit
computer screen. an essay prompt for the next class.
of culture we create She got her idea while watching a
Advice offered by colleges makes documentary that featured the Al
clear the pitfalls. “Proofread, proof- here.” Yankovic song “Bob,” whose lyrics
read, proofread,” cautions Carleton and title are all palindromes.
College in Northfield, Minn., under The University of
essay tips on its website. “There’s a Her suggestion inspired one of
difference between ‘tutoring chil- Maryland, College University of Chicago’s 2022-23 es-
dren’ and ‘torturing children’ and say prompts, according to the
your spell-checker won’t catch that.” Park, has asked stu- school. It reads: “Was it a cat I saw?
Yo-no-na-ka, ho-ka-ho-ka na-no-yo
Then there is the tortuous business dents to detail their (Japanese for ‘the world is a warm
of tackling the essay questions them- place’). Moze jutro ta dama da tortu
favorite thing jezom (Polish for ‘maybe tomorrow
that lady will give a cake to the
about…last Tuesday. hedgehogs’). Share a palindrome in
any language, and give it a back-
That’s a tough one if story.”

your Google Calendar

shows a lot of white Rachel Quaye-Asamoah, top left, Leah
Beach, top right, Ava Eros, left, and
space. One college- Bethel Agyeman, right, have pondered
prompts. One asks about ice cream.
admissions consult-

ing blog advises, “If

you laid in bed all day

Tuesday, but went for

a beautiful hike on Wednesday, write from losing a track and field race to school’s essay-prompt archives and
gaining self-confidence. pick questions from previous years,
about the hike.” including: “Who does Sally sell her
“Honestly, I’ve never tried Chip seashells to?” and “So where is
Chapman University asks appli- Happens before,” she says. “I usually Waldo, really?”
get Half Baked.”
cants to name one dish they would Bethel Agyeman, 16, a rising high-
The University of Vermont ac- school senior from Fairfax County,
cook for the school’s admission cepted her but she chose to attend Va., read the school’s essay ques-
the University of Pittsburgh, where tions and thought, “This has to be a
team. Princeton University, mean- she will be a sophomore in the fall. joke.” One really baffled her: “Gen-
ghis Khan with an F1 racecar. George
while, has asked “What song repre- Rice University has a longstand- Washington with a Super Soaker.
ing tradition—a prompt known as Emperor Nero with a toaster. Leo-
sents the soundtrack of your life at “The Box”—to ask applicants to sub- nardo da Vinci with a Furby. If you
mit a captionless image that appeals
this moment?” To get into Pomona to them, in lieu of an essay.

College, last year’s seniors had to

answer, in 50 words or less, “Marvel

or DC? Pepsi or Coke? Instagram or

TikTok? What’s your favorite ‘this or

that’ and which side do you choose?”

A10 | Wednesday, August 3, 2022 NY .

PERSONAL JOURNAL. THE WALL STREET JOURNAL.

Covid-Era Travel:
Learn the Ropes
On Cancellation

BY ALLISON POHLE You’ll have a credit with the airline, ISTOCK (2)
and will still be on the hook for the
A recent rise in difference in ticket prices. It’s much easier to reschedule a flight than to cancel it and get a refund.
Covid-19 cases is mak- Most hotels offer a window for canceling a reservation without penalty.
ing travel even To cancel a trip completely and
tougher this summer. get a refund, you will need to con- 10 This differs from the broader or after May 31. If you booked this
The Omicron sub- tact the airline. isolation guidance, which states summer and want to cancel for a
variant BA.5 has been These situations The number of days to wait before that people who test positive reason related to Covid, the can-
spreading just as people are taking are handled on a traveling after a positive test should isolate for a full five days cellation is no longer covered un-
long-awaited vacations. More than case-by-case basis, and can leave isolation if wearing der the company’s extenuating-cir-
half of American travelers report according to Delta lines Co. said last week that its a mask around others for the next cumstances policy, which allowed
having taken at least one trip in Air Lines Inc. and flight credits no longer have an ex- five days, so long as their symp- for cash refunds. This means if you
July, according to a survey from American Airlines piration date. toms have improved and they have have to cancel, the host’s policy
Destination Analysts, a market-re- Group Inc. been fever-free for 24 hours. applies, which means you could
search firm. How long do I have to wait to forfeit a portion or nearly the
Airlines might travel after testing positive? Late last year, the CDC cut the whole cost of your stay, depending
But travel hasn’t been easy. ask for supporting recommended isolation period for on the policy.
Travelers have faced flight delays, evidence. For exam- The Centers for Disease Control those who test positive to five
cancellations, long lines and lost ple, United Airlines and Prevention guidance for travel days from 10. The change came af- Will travel insurance cover me if I
luggage. Airlines and hotels laid off Holdings Inc. cus- differs from its broader guidance ter some public-health experts and
staff and have struggled to rehire tomers can request for those who test positive. business leaders, including airline test positive and need to cancel
them, which means there aren’t a refund by filling executives, called for shortened
enough baggage handlers, pilots out an online form The CDC says those who tested quarantine and isolation periods. my trip or extend it until I re-
and housekeepers, among others. and attaching docu- positive shouldn’t travel until 10
mentation, such as days after Covid-19 symptoms Airlines don’t check for proof of cover?
For those looking to hit the a doctor’s note or positive test. started or since the date of a posi- a negative Covid test to board do- Trip-cancellation policies gen-
road or travel by plane, the wise tive test for those who are asymp- mestic flights. And passengers
move is to plan ahead. Read up on What about basic economy fares? tomatic. boarding international flights to erally cover travelers who test
your airline or hotel’s cancellation It is harder to make changes for the U.S. no longer need to test positive before their trip, says
policy before a trip, consider “It’s one of those things that I’m negative a day before departure or Stan Sandberg, co-founder of
travel insurance and have a contin- basic economy fares, which typi- sure is not necessarily being fol- prove recovery from Covid in the TravelInsurance.com, a policy-
gency plan in case you do test pos- cally are the cheapest fares but lowed,” says Dr. Wu, who recom- past 90 days. Some countries still comparison site.
itive while traveling. don’t allow refunds or changes. mends following CDC guidelines. require a test after arrival, such as
But some airlines allow exceptions New Zealand and South Korea. Make sure you get tested offi-
“[Getting] sick during travel is for basic economy travelers who cially, since proof of illness will be
happening quite a bit,” says Dr. are ill. What about lodging? required. Companies don’t accept
Henry Wu, an associate professor Most hotels allow you to cancel at-home tests as proof of infection,
of infectious diseases at the Emory JetBlue Airways Corp., for ex- and they typically require a PCR
University School of Medicine and ample, will allow travelers who a reservation without penalty as test or proctored test, he says.
director of the Emory TravelWell purchased Blue Basic fares to can- long as it is within the terms spec-
Center. cel or reschedule their flights ified at booking. This window gen- If you need to isolate because
without penalty fees if they are ill erally ranges from 24 hours to 72 you tested positive on your trip,
Here’s what to know about and can’t travel. A spokesman says hours before check in, depending you will also need to show docu-
travel-related Covid-19 cancella- these travelers should contact Jet- on the company. mentation from a health authority
tion policies. Blue and will be provided a credit, that has directed you to quaran-
minus the change or cancellation Airbnb Inc. changed its policies tine, he says. This could be a doc-
Can I get a refund from my airline fee. If approved, travelers receive for travelers who booked stays on tor’s note or instructions from a
a travel credit for the fee and will government authority in another
if I test positive and can’t travel? still need to pay the fare differ- country.
It is possible, but it isn’t easy. ence if they reschedule.
It’s much easier to reschedule a
Do I have to use my flight credits
flight than to cancel it and get a re-
fund. Airlines have eliminated by a certain date?
change fees for most fares, so if you Many airlines require custom-
test positive before your trip and
want to postpone travel to a later ers to use credits within one year
time, you can likely change your of the date they were issued. Oth-
flight without a change-fee penalty. ers don’t expire. Southwest Air-

FROM TOP: MAX WHITTAKER FOR THE WALL STREET JOURNAL; LESLY HIGGINS

Lesly Higgins, also an avid hiker and runner, enjoys a morning ride in Marin County, Calif.

WHAT’S YOUR WORKOUT? | JEN MURPHY

Almost 70, but Biking 230 Miles

C ycling 230-plus miles, year she underwent back of vigor on the couple’s re-
hiking 65 miles and run- surgery and a shoulder re- cent trip to Europe.
ning a 6.2-mile trail race placement. Each required
amount to an active summer three months of frustrating “I was getting down on
for the average person. Lesly rehabilitation, but she says myself for not hiking faster,
Higgins, 69 years old, crams the alternative would have but I have to learn to hold
all of those adventures into a meant a sedentary lifestyle. myself with more compas-
single vacation. sion,” she says. “It isn’t about
A former gym rat, Ms. winning or comparing your-
Avid exercisers, Ms. Hig- Higgins was a treadmill and self to others, it is about the
gins and her partner, John StairMaster devotee. But af- delight of being out there
Herbert, 73, say the biggest ter hip surgery, her doctor and moving your body.”
challenge of getting older encouraged her to fall in love
isn’t keeping fit—it is learning with her bike. Two 62-mile bike rides
to slow down as they navi- and a half-marathon in Kauai
gate aches and injuries. Ms. Travel has motivated the remain on their summer
Higgins has undergone three couple’s rehab and training. In schedule as motivation.
surgeries in the past four June, their four-week Euro-
years because of osteoarthri- pean vacation included run- Ms. Higgins works out
tis, and Mr. Herbert broke his ning a 10K race in the high- seven days a week. Every
shoulder last year. elevation mountains of morning, she spends 20 min-
Chamonix, France; cycling utes doing yoga-based
Ms. Higgins says she dis- five days in Provence, France; stretches.
covered her inner athlete af- and hiking 65 miles of the
ter going through a painful Tour du Mont Blanc, a 105- “My physical therapists
divorce in her mid-50s. mile long-distance trail that have taught me the wisdom
traverses France, Italy and of stretching,” she says. “If I
“I started hiking and found Switzerland. start the day with this rou-
solace in endorphins,” says tine, it loosens up my back
the executive coach in Marin Ms. Higgins says she and my body feels better.”
County, Calif. didn’t have her normal level
She bikes daily, usually log-
At 60, Ms. Higgins ran her ging three-hour rides around
first half-marathon. Soon af- Marin County. She admits her
ter, she met Mr. Herbert, a Peloton, a pandemic pur-
runner and fitness enthusiast. chase, has been collecting
Their courtship involved cy- dust. “It is my backup plan for
cling trips to Hawaii and Italy. when it is too cold, wet or
dark,” she says.
“Now when we go on va-
cation, we try to do it all— She recently started to
run, bike, hike,” she says. “It is train for her September half-
a little nutty considering marathon and will often run
we’re usually with people half outside with her partner.
our age,” she adds.
Three to four days a week,
Ms. Higgins says she has she uses her Tonal digital
had to check her ego as she weight machine to perform
built back her strength from upper-body strengthening ex-
surgeries. In 2018, she had a ercises. She does private
hip replacement, and last workouts with a trainer via
Zoom once a week.

THE WALL STREET JOURNAL. .

Wednesday, August 3, 2022 | A11

ARTS IN REVIEW

TOPIC (2)

I t’s certainly not fair, but the TELEVISION REVIEW | JOHN ANDERSON
“who” and “where” of a mur-
der case can dictate the up- Something Sinister in Cork
roar around it; the absence of
an evident “why” means even A look at the brutal killing of French filmmaker Sophie Toscan du Plantier at her vacation home
more attention will be paid.
It isn’t usually personal. It’s just perate behavior of the What is evident in “Murder at
business. the Cottage”—a funkier, less pre-
official investigation’s sumptuous telling of the story than
As regards “Murder at the Cot- the Netflix documentary “Sophie: A
tage,” the personal is unavoidable. chief suspect, Ian Bailey. Murder in West Cork” (both were
While the five-part series is not released in the U.K. at almost the
about Irish director Jim Sheridan It chooses not to deal same time last year)—is the emo-
himself—it’s not a “personal docu- tional investment an artist has in a
mentary” as commonly under- with some of the issues film like this, something Mr. Sheri-
stood—it’s certainly the most inti- dan makes no effort to hide. He
mate kind of pursuit, given the surrounding the case, al- apologizes—perhaps setting a prec-
subject at hand. In exploring the edent among documentarians—for
death of the French filmmaker So- though it presents a the horror, and intimacy, of the
phie Toscan du Plantier, who was photographic evidence he’s going to
slain near her vacation home in frank portrait of the ec- show, knowing that it intrudes on
West Cork, Ireland, in 1996, Mr. the dead woman’s privacy but ac-
Sheridan displays not just a thirst centric and evidently al- knowledging, too, his need to vio-
for abstract truth, and a journalis- late their post-mortem partnership.
tic doggedness. He expresses a coholic Mr. Bailey, a free- The residual Catholic guilt that Mr.
profound regret that someone Sheridan seems to carry is infec-
who was a guest in his country lance journalist at the tious: What we do see of Sophie
should have been so brutally slain Toscan du Plantier, slim as it is,
and her case—and her corpse— time of Toscan du Plan- portrays someone you wish had
treated so shabbily. Also, like the been spared—not just a gruesome
detective in the classic noir tier’s death and one of death, of course, but the indignities
“Laura,” he might be slightly in that invariably follow such a crime.
love with the victim, whom he the first to report on her The investigation. The extradition
knows only through her picture. argument between countries
murder. Early on, he be- (France and Ireland); the intrusions
Toscan du Plantier was the wife into her family’s trauma. Mr. Sheri-
of Daniel Toscan du Plantier, the came the Irish authori- dan accomplishes much in his tell-
president of Unifrance, the body ing of the Toscan du Plantier story,
that promotes French cinema ties’ prime and virtually but he’s aware of his sins and
abroad. (I knew him, as did most makes us complicit in his guilt, as
Americans who wrote about French only suspect. well as his grief.
film; he died in 2003.) She had been
staying at her holiday home in For much of the se- Murder at the Cottage
Goleen, West Cork, a part of Ireland
where baffling roads lead onto fin- ries, one is never sure Begins Wednesday, Topic
gers of land splayed into the Atlan-
tic and where peace and quiet are where Mr. Sheridan
the main attractions. On Dec. 23,
1996, she was found by neighbors at stands on Mr. Bailey.
the end of her drive, her skull
This is largely because

The scene of the crime, above, and series director and narrator Jim Sheridan, top the director, unlike some
who were involved in the

probe, doesn’t force the

bashed in. Her body would lie there aside, he shows immediately what evidence to conform to a narrative.

for more than 24 hours, until the he means, establishing the tone and He doesn’t really have one, which is

state pathologist could meander soul of a gently rolling rural Ire- unusual for a nonfiction film, which

down from Dublin. It’s just one as- land, increasing the tension in in- needs a storyline as badly as a

pect of the case that earns Mr. crements before finally introducing drama does. The Toscan du Plantier

Sheridan’s muted outrage. the brutal crime that would occupy affair doesn’t oblige—nothing about

The director introduces himself so many for so long. it makes absolute sense, though Mr.

as a “storyteller,” and he has the Over its five parts, “Murder at Sheridan persists, and perhaps as a

credentials: A six-time Oscar nomi- the Cottage” tells a story of corrup- result looks increasingly weary as

nee, his films include such dramas tion by the Gardaí, or Irish police; the series plays out. (He has been

as “My Left Foot,” “In the Name of of some unspeakable behavior of following the case for 20 years, and

the Father” and “In America.” CV the country’s media and the intem- took seven to make the film.)

ART REVIEW goofy, like one of those giant inflat-
able tube figures gesticulating
Sculpture wildly at a car lot.
In Motion
Seen outside, Rickey’s large-scale
BY LANCE ESPLUND Glasgow’s Singer sculptures—whirling, gliding, rising
and falling as naturally as drifting
Stockbridge, Mass. Sewing Machines clouds, swooping birds and wind-
swept foliage—can mesmerize for
T he term “kinetic art” (meaning factory, where his fa- hours. But don’t miss one of the
art, usually sculpture, that in- masterpieces here, the stainless-
corporates movement) was ther, a mechanical steel mobile “Nuages VI” (1966-68),
first used by Bauhaus artists, in- which hangs above the dining table
cluding Naum Gabo, Antoine Pevs- engineer, was man- inside Naumkeag’s summer cottage.
ner and László Moholy-Nagy, to de- “Nuages VI,” perhaps the most Cal-
scribe their own works in the genre. aging director. deresque work here, comprises eight
But some cite Marcel Duchamp’s mobiles with dozens of dangling,
readymade sculpture “Bicycle Though trained as a crowded, tiny geometric forms—like
Wheel” (1913)—mounted (like a Fer- Christmas ornaments—reminiscent
ris wheel) upside down on a painter, Rickey was of petals, ripples, leaves and rowing
wooden stool—as the first kinetic oars. Combined, they create a silvery
artwork because, though static, its inspired by Calder’s shallow sea, roughly 4 feet square—
wheel can spin. Others convincingly fluttering as if ruffled by a breeze.
argue that Leonardo’s mechanical abstract mobiles and Created as a (fixtureless) chandelier
inventions first set art in motion. for Rickey’s own dining room, the
David Smith’s ab- sculpture was designed to reflect
Its origins aside, very few artists the sunset and to throw a twinkling
have made careers creating kinetic stract brushed-stain- field of light onto the table and its
art. Among them, of course, is the diners. It’s sublime.
innovative American abstract sculp- less-steel sculptures.
tor Alexander Calder (1898-1976), Kinetic sculpture fascinates be-
the inventor of the “mobile” (a term Influential, too, were cause it infinitely changes, con-
coined by Duchamp). Another is the stantly reinventing itself and your
American sculptor and educator Stanley William Hay- relationship to it—making you feel
George Rickey, whose marvelous that you’re witnessing something for
retrospective, “ViewEscapes: George ter’s Surrealist ab- George Rickey’s ‘Two Conical Segments Gyratory Gyratory IV—Seven Axes’ (1980) the first and last (the only) time.
Rickey Kinetic Sculpture,” animates stractions, Gabo’s ki- Rickey understood this as well as
the former Joseph and Caroline anyone. While not among the first
Choate family’s gardens and sum- netic constructions kinetic practitioners, he ranks among
mer cottage at Naumkeag House & the best. Rickey said that he took up
Gardens—a Gilded-Age Berkshires and the streamlined Cubist paintings Most, also, are made of simple geo- suspended, like a tightrope, between kinetic sculpture because he had
estate ensconced on an idyllic hill- wondered “if Calder had said it all.”
side in Stockbridge, Mass. of Rickey’s teacher, Fernand Léger. In metric forms in brushed stainless two trees. It evokes jousting pole, jet Obviously, as “ViewEscapes” beauti-
fully demonstrates, Calder hadn’t.
Born in South Bend, Ind., Rickey 1950, Rickey devoted himself full steel—a reflective surface that mir- stream, helicopter blade, horizon line,
(1907-2002) moved with his family ViewEscapes: George Rickey
to Scotland when he was 6 years old. time to making kinetic sculpture. rors and refracts surrounding sky, bird of prey. Subtle, hanging 30 feet Kinetic Sculpture
The grandson of a clockmaker, he Naumkeag House & Gardens,
was first captivated by automated Organized by Mark Wilson, asso- clouds, foliage, water and sunlight, up, it announces itself when it goes through Nov. 1, 2022
movement as a child during visits to
ciate curator of the Trustees of Res- and which creates an illusionistic suddenly vertical or rises and falls Mr. Esplund, the author of “The Art
of Looking: How to Read Modern and
ervations at Naumkeag, “ViewEs- transparency suggesting, like a like a teeter-totter or catches the Contemporary Art” (Basic Books),
writes about art for the Journal.
capes” includes two paintings and a magic trick, animated, levitating sun, flashing like lightning.

portrait drawing, but its main attrac- pools of liquid silver. “Unfolding Square III” (1994)

tions are the 12 large-scale outdoor “Ten Rotors Ten Cubes II” (1971), comprises four equal-sized jointed,

and eight smaller interior sculptures. as delicate as a tiara, swings lazily, gyrating rectangular stainless-steel

Most of these abstract works— like legs dangling over a pond. “Two boxes that, when vertical (like a

whose dancing movements are Conical Segments Gyratory Gyratory periscope or a soldier at attention),

graceful, playful, absolutely hyp- IV—Seven Axes” (1980) conflates extends to 18 feet tall. Turning, pir-

notic—are kinetic (or gyratory) and flower petals, satellite dish and whirl- ouetting, folding and unfolding (be-

move through a precise balance igig. Standing nearly 24 feet tall is sides transforming itself at times

among counterweights, ball bearings, the regal, monumental “Double L Ex- into a square), it spins like a wind-

gimbal attachments and wind power. centric Gyratory III” (1991-92). Two mill; leans over and bobs like water-

Industrial yet organic (sometimes gyrating L-shapes mounted to a cen- fowl; seemingly waves at passersby;

anthropomorphic), they blend and tral post, it evokes signal flags, hands and dances with nearby fruit trees.

interact with nature. The sculptures doing sign language, butterfly and al- Rickey’s sculpture moves as fluidly

DAVID LEE open and close like fan dancers and tarpiece wings. Unusual here is “One and gracefully as a tai chi master.

origami. And they feel alive but are Line Horizontal Floating” (1994), a Quickly changing speed and direc-

as unassuming as weather vanes. 30-foot-long stainless-steel spear tion, however, it’s also unpredictably

A12 | Wednesday, August 3, 2022 .

THE WALL STREET JOURNAL.

SPORTS

NFL Suspends Dolphins Owner
For Tampering With Tom Brady

The league stripped the team of a first-round pick and fined owner Stephen Ross $1.5 million

Juan Soto is heading to San Diego.ALEX BRANDON/ASSOCIATED PRESS BY ANDREW BEATON season.” allegations surfaced over the past The NFL said the Dolphins tampered
FROM TOP: SAM NAVARRO/USA TODAY SPORTS; CLIFF WELCH/ICON SMI/ZUMA PRESS Beal did not immediately re- year from dozens of women who with Tom Brady, left, while he was
Juan Soto An NFL-led investigation accused him of sexual misconduct under contract with other teams.
found that the Miami spond to a request for comment. during massage therapy sessions. Above, Dolphins owner Stephen Ross.
Is Traded Dolphins tampered with Ross, 82 years old, is a billionaire Watson has denied wrongdoing,
superstar Tom Brady and the league, which sought to prompted yet another NFL-led in-
To the Padres while he was under con- real-estate titan as the chairman punish him for at least one season, vestigation into his conduct.
tract with other teams, prompting and founder of Related Cos., the still has the capacity to appeal the
BY JOSHUA ROBINSON the league to take the extraordinary firm known for developing the suspension to obtain a longer ban. The most explosive parts of the
AND ANDREW BEATON step of suspending team owner Ste- sprawling Hudson Yards project in probe into the Dolphins found that
phen Ross in addition to issuing Manhattan. He first bought into the Ross also isn’t the only owner the team’s ownership broke anti-
WEEKS BEFORE the Major League fines and taking away draft picks Dolphins in 2008 and became the facing scrutiny. Washington Com- tampering rules during three differ-
Baseball trade deadline, a seismic from the team. team’s controlling owner a year manders owner Dan Snyder testi- ent periods of time, dating back to
shift disrupted everything the later. He is also known as a mega fied in front of the House Oversight when Brady was a member of the
league expected from one of the The probe found that on numer- donor to the University of Michi- and Reform Committee last week as Patriots.
most influential days of the year. ous occasions, while Brady was a gan, where the business school is part of the congressional investiga-
Out of nowhere, Juan Soto, the member of the New England Patri- named after him. tion into the team, its workplace Then, in January 2022, the team
Washington Nationals’ superstar ots and later the Tampa Bay Bucca- culture and the NFL’s transparency once again broke the rules by hav-
outfielder was stunningly available neers, the Dolphins’ ownership had The action taken by Goodell from its own probe into the team. A ing talks with Payton, who had not
at the trade deadline. impermissible communications with against Miami comes amid a sum- new allegation of wrongdoing by yet stepped down from his job with
the quarterback, in violation of mer of high-profile scandals for Snyder also surfaced during a com- the New Orleans Saints. The Dol-
Now, in one of the biggest deals league rules. Those talks explored America’s most popular sport. On mittee roundtable. Snyder has de- phins requested permission to in-
in the sport’s history, he’s a San Di- the possibility of Brady becoming a Monday, an arbitrator suspended nied the accusation, though it has terview Payton only after he had re-
ego Padre. part-owner of the Dolphins or pos- Cleveland Browns star quarterback tired, a request the Saints denied.
sibly playing for the team. Deshaun Watson for six games after
After rampant speculation con- Those conversations were be-
sumed all of baseball while decision The violations, which commis- tween the team and Don Yee, who
makers tried to fathom the extraor- sioner Roger Goodell dubbed “un- is Payton’s agent.
dinary price to acquire him, the Pa- precedented,” occurred over several
dres won the Soto sweepstakes years and also involved an effort to Yee also represents Brady, who
hours before Tuesday’s deadline by lure former New Orleans Saints said he was retiring earlier this
sending first baseman/designated coach Sean Payton, also in violation year only to reverse his decision
hitter Luke Voit, shortstop CJ of league rules because he barely a month later.
Abrams, outfielders Robert Hassell was also under contract with
III and James Wood, and pitchers another team. The investigation also found that
MacKenzie Gore and Jarlin Susana the Dolphins did not intentionally
to Washington for Soto and first Ross is suspended lose games, nor did Ross instruct
baseman Josh Bell. through Oct. 17, according to Flores to do so. Yet Ross expressed
the league, and will be fined a preference to get a top draft pick
Soto is just the latest marquee $1.5 million. Bruce Beal, one over winning games, which he
acquisition for an aggressive Padres of the team’s minority part- talked about with both Miami exec-
team that has already made two of ners, may not attend league utives and Flores.
the splashiest moves of recent sea- meetings for the rest of the
sons. 2022 season and was docked Flores, in a statement, said: “I
$500,000. Miami will also am thankful that the NFL’s investi-
In 2019, they signed free agent surrender its first-round gator found my factual allegations
Manny Machado to a 10-year, $300 pick in the 2023 draft along against Stephen Ross are true,”
million deal. And that spring, San with a third-rounder in Flores said. “At the same time, I am
Diego also promoted one of the 2024. disappointed to learn that the in-
most highly anticipated prospects vestigator minimized Mr. Ross’s of-
to the majors in Fernando Tatis Jr. “The investigators found fers and pressure to tank games.”
(Tatis suffered a wrist injury during tampering violations of un-
the offseason, but is expected to be precedented scope and se-
back before the end of the season.) verity,” Goodell said.

Though the Padres lag far behind The NFL’s probe into the
the Los Angeles Dodgers in the Na- Dolphins was led by former
tional League West, they are in an U.S. Attorney and Securities
excellent position to earn a wild- and Exchange Commission
card spot in the postseason, where chair Mary Jo White. It was
Soto will make them an instant con- prompted by an allegation raised by
tender. former Miami coach Brian Flores,
who earlier this year, in a racial dis-
The other factor that made Soto crimination lawsuit, accused Ross
so alluring—and inflated his price of offering to pay him to lose
so much—is that the Padres aren’t games. White’s probe found that
simply renting him. They’re leasing the Dolphins did not intentionally
him. He’s under contract for the tank to lose games in 2019.
next two and a half seasons, mean-
ing he figures to be wearing San Di- The NFL’s summary of White’s
ego for three playoff runs. At 23, findings, though, noted that on a
Soto is already a bona fide star with number of occasions Ross ex-
a career average of .291 and 119 pressed that the team’s position in
home runs (entering Tuesday) since the 2020 draft should take priority
his debut in 2018. over winning games in 2019.

“With regards to tampering, I
strongly disagree with the conclu-
sions and the punishment,” Ross
said in a statement. “However, I will
accept the outcome because the
most important thing is that there
be no distractions for our team as
we begin an exciting and winning

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.

50s 70s 70s Edmonton 60s <0 1 234 5678 9 10 11 12 65 Manual reader 29 Anthem
60s 80s Calgary 70s 0s contraction
Vancouver 60s 10s 13 14 15 16 66 It makes the
20s cursor go to an 31 Tagged, perhaps
Seattle Winnipeg 17 18 19 earlier line
32 Relieved
Portland Helena 90s 70s Montreal 30s 20 21 22 23 67 Thoroughly
Ottawa 40s cooked 33 Objective
Bismarck 50s
60s 68 Hole numbers 35 Acted like a
Eugene 90s Boise Billings 80s Augusta 70s 24 25 26 27 catnip-sated
80s 69 Banks of calico
80s 70s Pierre Mpls./St. Paul Toronto Albany Boston 90s fashion
Sioux Falls 100+ 36 World Cup cheer
Milwaukee Buffalo 90s 28 29 30 31 Down
90s Chicago Detroit Hartford Rain 1 Travel papers 37 Mismatched
New York
Reno Salt Lake City Cheyenne Cleveland 80s T-storms 32 33 34 35 36 37 2 Bit of silliness 39 Uno + due

Omaha Des Moines Philadelphia Snow 3 Windows to the 41 Sen. Rubio’s state
Springfield Indianapolis Pittsburgh heavens
Sacramento Denver 90s Washington D.C. Flurries 38 39 40 41 44 Joined hands, in a
San Francisco Richmond 4 Sushi choice way
90s 80s Topeka Kansas 90s Charleston 42 43 44 45
80s City 5 Insignificant 45 Seeker of
Las Colorado damages
Vegas Springs Wichita St. Louis Louisville 90s Raleigh 6 Father of
Padmé Amidala’s 46 It often leads to
Los Angeles 100s Santa Fe 100s Memphis Nashville Charlotte 46 47 twins an early
Albuquerque touchdown
7 Field measure
San Diego Phoenix Oklahoma City Columbia Warm 48 49 50 51 52 53 54 55 48 Trojan War epic
Tucson Little Rock Atlanta Cold 8 Knotty craft
Stationary 49 Cheesy chip
El Paso Ft. Worth Dallas Birmingham Showers 56 57 58 59 9 Overseas
50 Ozone-depleting
Jackson 80s Jacksonville 10 Flashy display refrigerant

50s 90s 90s Austin Houston Mobile Orlando 60 61 62 63 11 Cost as much as 52 Malicious stares

70s New Orleans Tampa 90s 12 About one 54 Words after
60s percent of the “doe” in song
80s San Antonio 64 65 66 atmosphere
Anchorage 55 Grade-boosting
Honolulu 100s Miami 67 68 69 14 Speculative class
stock buys, e.g.
70s 80s 58 Co-star of
22 Contents of Courteney,
Ice CHICKEN LITTLE | By Steve Faiella some small bags Jennifer, Matt,
Matthew and
Forecasts and graphics provided by AccuWeather, Inc. ©2022 27 “If it’s not too David
personal...”
U.S. Forecasts Today Tomorrow Today Tomorrow Across 25 Russell of “The 46 You might do it 63 Inclined
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t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 5 Sir’s counterpart 26 Wonder Woman, 47 Mil. high fliers
Omaha 95 66 pc 94 70 s Frankfurt 93 69 pc 99 72 s for one
Geneva 94 67 s 97 70 s 9 City called 48 Unpleasantly
Today Tomorrow Orlando 91 75 t 93 74 t Havana 89 72 t 91 72 t Akbarabad 28 “The Inquisition overwhelm
Hong Kong 88 80 t 88 80 t during Shah Tribunal” painter
City Hi Lo W Hi Lo W Philadelphia 92 75 s 98 78 s Istanbul 86 72 s 86 72 s Jahan’s 51 Diamondbacks
Jakarta 89 77 t 89 76 t emperorship 30 Rootless sort outfielder
Phoenix 103 86 c 102 85 c Jerusalem 90 68 s 92 70 s ___ Thomas
Johannesburg 58 47 sh 66 45 s 13 Comics worker 32 Takes up,
Anchorage 65 56 s 64 55 c Pittsburgh 89 72 s 88 69 t London 81 58 pc 76 55 pc perhaps 53 Issa of
Atlanta 91 72 t 88 71 t Madrid 103 71 s 101 71 s 15 Quipu maker “Insecure”
Austin 103 75 pc 102 75 s Portland, Maine 81 64 pc 88 70 pc Manila 91 79 t 89 78 t 34 Chop ___
Baltimore 92 73 s 96 76 s Melbourne 66 56 pc 65 51 pc 16 Dim memory 56 Chip maker’s
Boise 97 71 s 97 68 s Portland, Ore. 86 61 c 80 57 pc Mexico City 77 55 sh 78 56 pc 35 Sticky stuff supply
Boston 83 71 pc 98 74 s Milan 91 74 s 95 75 pc 17 Cuneiform
Burlington 85 71 c 91 69 t Sacramento 97 66 s 98 65 s Moscow 79 63 c 83 65 s writers’ tools 38 Emcee’s delivery 57 Queen of
Charlotte 96 73 t 94 74 t Mumbai 88 81 t 86 80 t mysteries
Chicago 93 71 t 78 65 pc St. Louis 97 76 t 87 74 t Paris 95 68 s 89 63 t 18 Dealer’s nemesis 39 B’way buy
Cleveland 92 75 pc 84 69 t Rio de Janeiro 76 69 s 84 73 pc 59 Muckraker
Dallas 104 82 s 102 81 pc Salt Lake City 95 75 pc 98 76 c Riyadh 105 92 s 107 91 s 19 Fight site 40 Follower of “This Tarbell
Denver 91 68 pc 95 69 pc Rome 90 71 s 90 72 s isn’t a hand, it’s a
Detroit 93 72 t 82 66 t San Francisco 71 57 pc 74 57 s San Juan 88 79 pc 88 79 pc 20 Have a bug foot!” 60 Alternative to a
Honolulu 87 73 pc 87 74 sh Seoul 88 78 t 90 78 t Slurpee
Houston 99 78 s 96 77 t Santa Fe 88 60 c 84 61 t Shanghai 96 83 s 98 84 s 21 Dracula’s creator 42 Canine care deg.
Indianapolis 92 73 s 83 71 t Singapore 85 77 t 84 77 sh 61 Flood preventer
Kansas City 90 72 t 93 70 s Seattle 77 59 pc 71 55 c Sydney 73 62 pc 70 59 r 23 Bus driver on 43 Fluctuate
Las Vegas 101 83 pc 99 82 pc Taipei City 92 80 t 93 81 t “The Simpsons” 62 Fertile spots
Little Rock 94 76 pc 89 76 t Sioux Falls 88 61 s 91 72 s Tokyo 93 79 c 85 76 t 45 Like most
Los Angeles 85 67 s 84 66 pc Toronto 86 72 pc 82 66 t 24 High school subj. pretzels 64 Crewman’s cry
Miami 91 79 pc 90 78 t Wash., D.C. 91 76 s 95 78 s Vancouver 68 59 sh 70 57 pc
Milwaukee 89 68 t 75 66 s Warsaw 80 61 s 83 62 s
Minneapolis 88 63 c 84 69 s International Zurich 90 63 pc 95 66 s Previous Puzzle’s Solution
Nashville 94 77 pc 89 75 t
New Orleans 86 75 t 83 75 t Today Tomorrow RAC E D T I F F ACME
New York City 88 76 s 94 78 s
Oklahoma City 102 78 s 98 75 c City Hi Lo W Hi Lo W AF I RE HALO THAN

Amsterdam 81 65 s 77 59 pc NATA L I EME R CHANT
Athens 92 78 s 92 78 s
Baghdad 121 90 pc 121 89 pc TRY G I BE AER I E
Bangkok 90 80 t 89 79 t
Beijing 97 80 pc 98 78 c SOLOS AVATAR
Berlin 90 69 pc 97 71 s
Brussels 89 64 s 84 60 t AR T HURM I L L E R
Buenos Aires 61 51 c 59 47 pc
Dubai 105 93 pc 106 93 s R E AMS TOT THUS
Dublin 68 49 pc 64 46 pc
Edinburgh 69 53 c 65 48 pc OAT T I MCOOK OHO

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s Solve this puzzle online and discuss it at WSJ.com/Puzzles. KNEE ELSE SL I NK

SEAS VETO PANTS

THE WALL STREET JOURNAL. .

Wednesday, August 3, 2022 | A13

OPINION

Will Conservatives Dump Orbán? BOOKSHELF | By Dominic Green

For many and political power of white future.” In this context, he substantial portions of its ter- The Road
Christian populations. Mr. Or- flatly opposes same-sex mar- ritory. Never mind the princi-
populist-na- bán said that the book ex- riage and the ability of same- ples of sovereignty and terri- To Waterloo
plains “the West’s inability to sex couples to adopt children, torial integrity. Never mind
tionalist con- defend itself” against threat- arrangements he regards as the North Atlantic Treaty Or- Napoleon
ening hordes of non-Western “Western lunacy.” ganization’s open-door policy,
servatives, immigrants. which has been central to the By Michael Broers
In fairness, Mr. Orbán’s con- alliance since its creation. (Pegasus, 723 pages, $39.95)
Budapest is Lest there be any misunder- cerns extend beyond the cul- What seems to matter most to
standing, Mr. Orbán proceeded ture war to include the non- Hungary’s leader is ending the ‘E xtraordinary times produced an extraordinary man,”
the new to express his opposition to a metaphorical war between hostilities to reduce energy Michael Broers writes in the third and final volume
“mixed-race world”—that is, a Russia and Ukraine. “This is prices. of his extraordinary biography of Napoleon Bona-
POLITICS Rome, and world “in which European not our war,” he insists, add- parte, the emperor who modernized Europe by military
& IDEAS Viktor Orbán peoples are mixed together ing that if Russia’s demand for Mr. Orbán concluded his skill, technocratic order and the force of his personality.
is their politi- with those arriving from out- Ukrainian neutrality had been speech with a meditation on All three of these assets had their limits, and all three
By William cal pope. In side Europe.” These countries, accepted, the war never would Hungary’s communal and na- became liabilities. Mr. Broers’s second volume ended in 1810,
2019, then- he claimed, “are no longer na- have happened. Nor would it tional “ambitions.” The moth- with Napoleon’s power at its zenith. This third volume
A. Galston tions: They are nothing more erland, he declared, includes describes the decline and fall of the modern Caesar.
than conglomerations of peo- The Hungarian leader the Romanian region Transyl-
President ples,” and they are no longer vania and other territories By 1810 a five-year streak of victories had made Napoleon
part of what he calls “the cited a racist theory outside Hungary that are in- the military master of Europe and France an empire that
Donald Trump met with Mr. Western world.” He made no habited by Hungarians. What
effort to exclude the U.S. from as the source of his drives Hungary is the idea stretched from Spain to the
Orbán in the Oval Office, effu- this judgment, and it is diffi- “that more has been taken Balkans, Rome to the Baltic.
cult to imagine how he could. immigration policy. from us than given to us, that Napoleon had imposed disad-
sively praised his leadership, we have submitted invoices vantageous treaties on Prussia
The time will come, Mr. Or- have broken out if Hungary that are still unpaid.” The and Austria and had made
and later endorsed him for re- bán concedes, “when we have had been “a little luckier” and world owes us something, Mr. peace with the Russian czar,
to somehow accept Christians Donald Trump and Angela Orbán declared, and eventually Alexander I. Only Britain fought
election. Since 2020, leaders coming to us” from the West Merkel were still in charge. Hungary will call in its debt. on. The British ruled the seas,
and “integrate them into our Now that it has, however, the and they could fund Napoleon’s
of the national-conservative lives.” He excluded from his task of the European Union “is Hungary’s leader has long Continental enemies, but they
“Western world” Christians not to stand alongside either castigated the 1920 Treaty of couldn’t defeat him alone.
movement have met repeat- from the global South and all the Russians or the Ukraini- Trianon, which deprived his Napoleon believed that the
non-Christians. ans, but to stand between Rus- country of much of its pre- Continental Blockade, closing
edly with Hungary’s leader. sia and Ukraine.” Translation: World War I territory. The Europe’s ports to British goods,
His defenders contend that Europe shouldn’t care who at- conclusion of his speech seems would break Britain’s economy.
Last August, Tucker Carlson his real target is Islamic immi- tacked whom, or about the to be a promise to reverse “A new order of things directs
gration. But as the Bulwark’s choice between democracy what he sees as an unjust dik- the universe,” Napoleon informed
broadcast his show from Buda- Cathy Young points out in a and autocracy. tat. His revanchism may ex- the French senate in December 1810. Napoleon had rewritten
stinging critique, the Hungar- plain why Russia’s alteration the rules of war by introducing unprecedented mobility and
pest for a week. In May, the ian word for “race” that Mr. Mr. Orbán is certain that of national boundaries by violence to the battlefield. He had overhauled Europe’s civil
Orbán used has a longstanding Ukraine will never win the force doesn’t trouble him. life by replacing a feudal patchwork of laws with the Napo-
Conservative Political Action anti-Semitic resonance. This war; a new strategy is needed, leonic Code. He now wished to convert his victories into his
partly explains why Hungary’s and its focus should be on re- At the National Conserva- posterity and his glory into a dynasty. In March 1811, Napo-
Conference met in Hungary, chief rabbi responded so storing peace, a process from tism Conference this Septem- leon’s second wife, the 19-year-old Austrian princess Marie-
strongly. which the Ukrainians must be ber, Mr. Orbán’s supporters Louise, delivered his posterity, Napoleon-Francis. His father,
and Mr. Orbán gave an ad- excluded. Because Russia must either separate them- annexing the mystique of the Holy Roman Emperor and the
Mr. Orbán’s attack on immi- wants security guarantees, the selves from his speech or, secular authority of the pope, dubbed him “King of Rome.”
dress. gration is only one element of war can be ended only with through silence, associate Tolstoy dismissed Napoleon as a buffoonish actor who
what he termed “the great his- “Russo-American negotia- themselves with its noxious claimed the credit for a historical movement that he merely
Against this backdrop, the toric battle that we are fight- tions.” Translation: The U.S. sentiments. symbolized. But we cannot understand Napoleon’s era without
ing: demography, immigration should force Ukraine to accept understanding his character. The Revolution of 1789 was a
response of his American sup- and gender.” These are the is- neutralization and the loss of Holman W. Jenkins, Jr. is conscious attempt to revive the ancient Roman republic. It
sues at stake in the battle be- away. worked insofar that France replicated Rome’s descent from
porters to the speech he deliv- tween left and right, the is- civil war into empire and dictatorship. Napoleon was both the
sues he says will “decide our scourge and fulfillment of the Revolution: a Romantic bureau-
ered on July 23, which trig- crat and warlord technocrat who arbitrarily drove the rational
powers of the modern state to destruction.
gered the resignation of one of Mr. Broers, an Oxford professor of history, compares
Napoleon to Milton’s Satan, an angel who preferred to rule in
his key advisers and a rebuke hell. The author marshals the Fondation Napoléon’s complete
correspondence. Recently deployed with panache in Andrew
from Hungary’s chief rabbi Roberts’s single-volume biography, the correspondence
records how Napoleon’s epic vanity conjured the strategic
among others, will define the madness of invading Russia in 1812 and then provoked the
instrument of his destruction, a pan-European alliance
moral character of their cause. funded by British money and Russian blood.
The emperor’s talents rebounded upon himself and all of
In this speech, Mr. Orbán Europe. Napoleon’s “Great Empire,” Mr. Broers writes, “was
run by the French, in the manner of France, and for the
characterized “population re- French.” The greater its rationalizations and plunder, the
greater the local resistance: Even the “highly sophisticated,
placement or inundation” as law-abiding cities” of the Hansa ports in Northern Germany
became a “powder keg” of resentment and disorder. Napo-
one of the principal challenges leon’s humiliation of Pope Pius VII goaded Catholics into
“subtle, insidious rage.” His victories stimulated Prussia to
of our time, and he recom- create a professional, “purely meritocratic” officer corps,
and led first the British and then the Russians to deny him
mended an “outstanding” book the “big battle” that he sought. His brutal tactics degraded
his greatest resource, the quality of France’s soldiers.
on this issue, “The Camp of
Napoleon’s epic vanity conjured the madness
the Saints,” by the French
of invading Russia and provoked the pan-
monarchist Jean Raspail. This
European alliance that spelled his downfall.
poisonous novel is the ur-text
Alexander was fascinated by Napoleon, but Napoleon,
for the notorious “Great Re- Mr. Broers writes, “could never read” the czar. This was arro-
gance, and it became Napoleon’s “fatal” flaw. After they had
placement” conspiracy theory reaffirmed an alliance at Erfurt in 1808, Napoleon hoped to
make Alexander an active partner against Britain. Meanwhile,
that white nationalists have Alexander was “determined to turn on Napoleon at the first
clear opportunity,” according to Mr. Broers. “Everything is
cited approvingly in the U.S. taking on a dark hue,” Alexander wrote to his sister in early
1811. “It seems that blood must flow again.”
and in Europe, which holds
In June 1812, Napoleon invaded Russia with over 600,000
that elites are using immigra- soldiers. The Russians fell back, scorching the earth as they
went. In September, Napoleon at last got his big battle, at
tion to undermine the cultural Borodino, 75 miles outside Moscow. More than 70,000 of
the combatants were killed or wounded in a single day, and
The SEC’s Cryptocurrency Confusion both sides claimed victory. The Russians retreated further,
setting fire to Moscow. Napoleon, who expected Alexander to
By J.W. Verret low users to vote on changes The purpose depends on the The SEC’s position—that surrender, was baffled by these “barbarians.” As the Russian
to how the protocol operates, user’s preference. most tokens are securities and winter set in, Napoleon abandoned his men and fled. Em-
A fter years of threatening will share their profit with must register or face enforce- boldened, Austria and Prussia joined Russia. The alliance
to sue Coinbase for list- you. But in a way, profit-shar- Even if cryptocurrency de- ment—is obtuse. It’s also an took Paris in March 1814.
ing unregistered securi- ing tokens aren’t like equity velopers wanted to register approach that works to the
ties, the Securities and Ex- securities at all. The tradi- their projects with the SEC, as benefit of the scammers and Alexander allowed Napoleon to retain his emperor’s title
change Commission is now tional corporate structures— traditional public companies hucksters who have abused and exiled him to the Italian island of Elba. A year later,
rumored to have launched an boards of directors, execu- are required to, they couldn’t. the crypto space. Napoleon escaped for France. “Now, he sallied forth one last
investigation into the com- tives, even companies—aren’t They don’t have a board, CEO time—so cautious in his planning, so reckless in his goal—
pany and other exchanges. If present on the other end of or CFO to file the requisite If the SEC were instead to the conquistador to the end.” The British and Prussians
it proceeds, the SEC may be the transaction. There’s no paperwork with the commis- build a regulatory regime tai- ended his Hundred Days on the road to Brussels in June 1815,
on track to make a serious one who could file or sign the sion. Nor do they have proxy lored to the needs of crypto when Napoleon launched 73,000 troops in a full-frontal
mistake. financial statements for such voting of shares by mail, investors, as SEC Commis- assault near a village named Waterloo. The initial French
projects. which the commission still re- sioner Hester Peirce has re- bombardment was “worse than any veteran ever heard,” but
Skeptics wonder why Coin- quires companies provide to quested, we would be better Napoleon “badly underestimated” the opposition. A cavalry
base doesn’t simply register Is bitcoin a security or shareholders. able to separate the legitimate charge led by his general, Marshal Ney, failed to break the
the tokens it sells with the a form of money? A crypto projects from the allied squares. Napoleon later claimed “lamely” that Ney
SEC. It’s not that simple. Since little bit of both, and Consider another facet of scams. Defendants in SEC ac- had attacked prematurely. “He lied.”
its inception, cryptocurrency other things as well. crypto that would shock the tions can now use the nebu-
has confounded regulators be- drafters of the 1933 Securities lous character of crypto to- Louis XVIII favored execution. Wellington suggested exile
cause it is unlike any tradi- There’s even more diver- Act. Imagine if a bank or stock kens to their advantage. When in the Scottish Highlands. Instead the British government
tional financial instrument. sity among tokens. Some are exchange were run by an au- cases are brought against le- solved its “extraordinary problem” in an “extraordinary way.”
Like regular money, crypto like those you might get from tonomous, open-source com- gitimate enterprises, such as Depriving “Boney” of his Romantic finale, they sent him to
can be used to pay for ordi- a Chuck E. Cheese to play puter code that took deposits Coinbase, that’s a good thing; “the ends of the earth,” the damp, barren Atlantic island of
nary goods. Bitcoin is one ex- videogames. These often take and processed loans. Occa- when brought against fake St. Helena. Napoleon died there from stomach cancer in 1821.
ample, which has a growing the form of tokens used to sionally the code is modified projects that steal crypto, it
base of thousands of mer- store data. Imagine if every by a few hundred anonymous isn’t. The morphable charac- Mr. Broers’s trilogy is well-planned and skillfully executed.
chants who accept payments time you saved a document coders around the world, who ter of crypto tokens will con- Like its subject’s character, the story it tells is both engrossing
directly over the currency’s to the cloud, you needed a collaborate over the internet found cookie-cutter applica- and appalling. Napoleon scratched the itch for glory until it
Lightning Network. token to do so. Payment for to keep it running smoothly. tion of the regulated security killed him and millions of others, but his real legacy, Mr. Broers
data storage is one of the definition. argues, was legal and institutional, and it survives in the
Some leading cryptocur- more popular uses of crypto This isn’t some science-fic- “warp and woof of daily life” in Europe. The echoes of his
rencies can be sent to an app tokens. tion movie. Billions of dollars Innovations require a re- savage Caesarism linger, too.
and then used to generate a are deposited and loaned out thinking of federal securities
QR code, which is accepted in Cryptocurrency is so diffi- in this way each day. The law. The SEC was 10 years late Mr. Green is a Journal contributor and the author, most
20 national chains like Petco, cult to categorize because combined market capitaliza- to the game on delivering fi- recently, of “The Religious Revolution: The Birth of Modern
Chipotle, Office Depot and many of its variants blur the tion of these “decentralized fi- nancial statements electroni- Spirituality, 1848-1898.”
Regal Cinemas. Last week I lines between traditional cate- nance” developers would be cally. It was similarly behind
used crypto tokens that the gories of money, stock and enough to make them the the curve in allowing CEOs to
SEC has previously alleged commodities. Most are a bit of 18th-largest bank in the U.S. share company information
were unregistered securities each. Some tokens can be used over social media. It shouldn’t
to buy an ice-cream cone and to store data and serve as a Tokens that represent an make the same mistake with
a burrito. form of payment or an invest- interest in these autonomous crypto.
ment—all at the same time. computer banks and ex-
But here’s where things get changes are some of the tar- Mr. Verret is an associate
confusing. Some crytpo tokens gets of the SEC’s investiga- professor of law at Antonin
appear to function as a type tions and regulatory Scalia Law School and a for-
of equity, from which you ex- inquiries. They are also the mer member of the SEC’s In-
pect profit. Governance tokens same tokens I used to buy my vestor Advisory Committee.
in crypto exchanges, which al- ice cream and burrito last
week.

Try Not to Think of a Recession

By Merrie Spaeth There is a rule of thumb, which and consumer spending. That’s Economic Advisers. President
is that two successive quarters a mouthful, and it can’t com- Biden had tweeted to “the
I s the U.S. in a recession? of declining gross domestic pete with the simplicity of companies running gas sta-
New York Mayor Eric Ad- product—such as the first two “two quarters of declining tions” that they should “bring
ams seems to think so. quarters of 2022—indicates a GDP.” In any case, NBER won’t down the price you are charg-
Speaking last week to the non- recession. make a determination for ing at the pump to reflect the
profit group Project Hospital- months. cost you’re paying for the
ity, he said: “We’re in a finan- The debate has brought a product.” Mr. Ferro asked Ms.
cial crisis like you can never new notoriety to the National Adding to the danger is that Boushey to respond to criti-
imagine. . . . Wall Street is col- Bureau of Economic Research’s experts think that the expecta- cism from Amazon’s Jeff Be-
lapsing. We’re in a recession.” Business Cycle Dating Com- tion of inflation can cause in- zos. She dodged, and Mr.
But Mr. Adams’s fellow Demo- mittee, the organization that flation. Does the same psychol- Keene demanded to know who
crats in the Biden administra- ogy apply to recession? was “advising the president on
tion have been furiously deny- Biden administration shockingly naive price theory.”
ing there’s a recession. When a denials are bound to The administration’s com-
reporter asked him if they’re deliver the opposite of munication challenge is two- Her answer: “The president
wrong, he backtracked: “The the intended message. fold. First is the old “don’t think is not shockingly naive.”
president will make a determi- of an elephant” problem. What
nation on the official title of officially designates reces- are you thinking of? Second, The satirical Babylon Bee
where we are; that’s the presi- sions. The NBER’s definition is saying “This isn’t a recession” ran a story last week with a
dent, and I follow the lead of “a significant decline in eco- only convinces people we’re in photo of an Oval Office signing
the president.” nomic activity spread across a recession. The word “reces- ceremony. The headline: “Bi-
the economy, lasting more sion” makes a much stronger den Signs ‘Don’t Say Reces-
Wikipedia tried to declare a than a few months” and taking impression on the listener than sion’ Bill.” Maybe they can en-
cease-fire in the war of words into account gross domestic the word “isn’t.” This is one of courage compliance by posting
by restricting its “Recession” product, real income, employ- the easiest mistakes to avoid, signs: “Don’t even think about
page so that unregistered us- ment, industrial production but it pops up daily. saying recession.”
ers couldn’t edit it. At one
point, the page claimed there Last month, Bloomberg Ms. Spaeth, a Dallas com-
was “no global consensus” on Television’s Jonathan Ferro munications consultant, was
the definition of a recession. and Tom Keene were grilling President Reagan’s director of
Heather Boushey, a member of media relations, 1983-85.
the White House Council of

A14 | Wednesday, August 3, 2022 .

THE WALL STREET JOURNAL.

OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR

The IRS Is About to Go Beast Mode ‘Unwanted Children’ Are Still Better Off Alive

P rogressives want Joe Biden to unleash taxes and penalties in cases closed in U.S. tax Erica Komisar is usually a strong least, it’s too categorical. After natu-
what they call “beast mode” executive court in fiscal 2019. But few taxpayers can af- voice in support of the importance of ral-family planning didn’t work, my
power, and the Schumer-Manchin tax ford to fight in court. mothers and parenting, so her recent mom got pregnant with me—an un-
op-ed (“The Human Cost of Restrict- wanted pregnancy. Yet my parents
bill supplies the cash to turn The Schumer-Manchin Despite all this new money, ing Abortion,” July 29) was startling loved me anyway.
the Internal Revenue Service Americans shouldn’t expect and disappointing. No, Ms. Komisar,
the response to maternal resentment DEBORAH FLEISCHMANN
into Wolverine. bill has $45.6 billion to better IRS service. The arising from an unwanted pregnancy Fort Worth, Texas
The pact between Sen. Joe agency in the 2022 filing sea- isn’t to end the child’s life through
Manchin and Majority Leader audit the middle class. son answered a mere 10% of abortion. Will resentful families then Ms. Komisar suggests the “un-
hasten the earthly departure of elderly wanted” might be better off aborted
Chuck Schumer includes $80 its phone calls. The Taxpayer relatives whose needs have become than growing up “prone to depression,
burdensome? Where does it end? anxiety, addiction and other social and
billion in new funding for the Advocate Service revealed in emotional disorders.” Sadly, this form
SHARON BERG of elitism is nothing new. There are
tax man. Democrats claim this “investment” will June that as of May 31 the IRS was still sitting Bellevue, Neb. examples throughout history of the
privileged proposing to eliminate
yield more than $200 billion in revenue. That es- on 21.3 million unprocessed paper tax returns, Ms. Komisar never mentions adop- those whom they consider undesirable
tion as an alternative. With the Su- or burdensome—for their own good, of
timate is highly speculative, but if it’s anywhere with millions of taxpayers “waiting six months preme Court’s decision, some women course. Already, “advances” in prenatal
may have to carry a pregnancy to term screening are resulting in new eugenic
close to right IRS auditors will soon be coming or more to receive their refunds.” Yet the based on their locale and financial cir- practices that have led to the near-
cumstances. But outside of a dysfunc- eradication of people with Down syn-
after tens of millions of Americans. Schumer-Manchin bill devotes only $3.2 billion tional domestic situation, nobody is drome through abortion. Who’s next?
forced to keep a child they don’t want
The $80 billion is more than six times the for “taxpayer services.” or can’t afford to raise properly. GRAZIE POZO CHRISTIE, M.D.
Key Biscayne, Fla.
current annual IRS budget of $12.6 billion. The The bill does, however, provide $15 million I believe abortion should be legal,
but I also think that pro-life advo- Whether children are wanted or
money will be ladled out over nine years and to study a bad Elizabeth Warren idea. An IRS cates should now focus their energies unwanted, we cannot predict their fu-
on improving foster-care systems and ture for good or ill. Each of us experi-
comes with few strings attached. The main task force will have nine months to deliver a adoption and offer more support to ences pain, suffering and darkness at
pregnant women. some time in our lives. Likewise, all
Democratic command is for the tax agency to report on the feasibility of the IRS running its of us experience wonder, joy, friend-
COLLEEN NELSON ship and love. We all deserve the
bring the hammer down on taxpayers. own “free direct efile tax return system.” North Tustin, Calif. chance to see how to overcome our
challenges and exult in life’s wonders.
The bill earmarks $45.6 billion for “enforce- America has a voluntary tax system that lets Ms. Komisar’s claim that “un-
wanted pregnancies become un- JULIE DAVIS
ment,” including “litigation,” “criminal investi- taxpayers determine their correct amount of wanted children” isn’t true; or at Dallas

gations,” “investigative technology,” “digital tax before the IRS checks it.

asset monitoring” and a new fleet of tax-col- Sen. Warren wants to create what would be

lector cars. The result will be far more audits, a federal H&R Block that assesses tax liability

civil suits and criminal referrals. for taxpayers. Taxpayers would presumably

The main targets will by necessity be the have to appeal if they disagree, and who knows

middle- and upper-middle class because that’s how long that would take.

where the money is. The Joint Committee on All of this is likely to be made worse by

Taxation, Congress’s official tax scorekeeper, what seems to be the increasing politicization

says that from 78% to 90% of the money raised of the tax agency. Lois Lerner notoriously tar-

from under-reported income would likely come geted conservative nonprofits for special scru-

from those making less than $200,000 a year. tiny in 2013. ProPublica, the left-leaning web-

Only 4% to 9% would come from those making site, obtained and published the confidential

more than $500,000. tax information of private citizens in 2021—

The IRS knows the super-wealthy employ conveniently when Democrats were debating Wishing California Good Luck Making Insulin

lawyers and accountants who make litigation whether to impose a new wealth tax. The IRS

time-consuming and risky. It also knows that has promised to investigate the illegal leak but Regarding your editorial “California Applause for California’s plan to go
Does Big Pharma” (July 21): If it were into the insulin business. More gov-
Democrats would howl if the agency pursues has so far come up empty. easy to build a biologics manufactur- ernments and a few nonprofits should
ing facility, staff it, source highly reg- try it out. The result is likely to be a
fraud in the earned-income tax credit program, The new wave of audits will hit taxpayers ulated material, develop an insulin bi- cold-water wake-up call on the reali-
osimilar and then get it approved by ties of drug discovery and manufac-
despite what the IRS has estimated are $18 bil- even as tax revenue as a share of GDP is back the Food and Drug Administration, turing: Targeted subsidies for at-risk
there would be a line around FDA populations cost a fraction of the in-
lion in improper payments each year. close to its historic norm of 18.5% and may be headquarters 10 miles long. What ever vestment needed to bring “afford-
happened to Gov. Gavin Newsom’s able” medications to the people; in-
A particular audit target will be “pass going higher as corporate and individual tax other declaration, that California was dustry’s ability to efficiently deploy
going to save billions by manufactur- capital far exceeds that of the public
throughs” including Subchapter S businesses revenue soars. Tax receipts were up 25% in the ing its own generic drugs? Alas, polit- sector; drug sales bring lawsuits and
ical rhetoric doesn’t lower drug costs. liability that California’s sovereign
that file under the individual tax code. Demo- first nine months of fiscal 2022 after rising immunity may not cover; and a drug
PETER J. PITTS pricing is determined by negotiations
crats failed to raise the top individual tax rate, 18.3% in fiscal 2021. New York with multiple players.

so unleashing IRS auditors is Plan B. The federal government isn’t starving for Mr. Pitts, a former FDA associate FRED REINHART
commissioner, is president of the Cen- Plymouth, Mich.
Many of these are small businesses that will revenue. Congress wants more tax revenue be- ter for Medicine in the Public Interest.

settle with the IRS rather than fight and en- cause it can’t control its appetite for spending.

dure years of costly litigation. The IRS won That’s why it wants a tax agency in beast

only $1.7 billion of the $4 billion in disputed mode.

After Pelosi’s Taiwan Visit

H ouse Speaker Nancy Pelosi landed in his watch. China has agreed in numerous com- A Citizen’s Right to Record the Police in Public
Taipei without incident Tuesday night, muniques over five decades that any reunifica-
local time, and we can be grateful for tion must be peaceful. But now China is sending Arizona state Rep. John Kavanagh previously received a verbal warning”
that. But the bigger test will come after the every signal that it is willing to retake the island replies (Letters, July 27) to our op-ed and continues to record within 8 feet.
visit, and not only based on what China does in by force if necessary. “Arizona Moves to Hold Cops Unac- The term “violent” isn’t in the statute.
response. countable” (July 18) by claiming that
The problem for Mr. Xi is that the more au- the new law prohibits people from re- The zoom capabilities of phones
Once news of her Taipei plans was (unhelp- thoritarian he has become at home and abroad, cording only “a potentially violent en- are irrelevant. Mr. Kavanagh hasn’t
fully) leaked, and China reacted with threats, the the less the Taiwan people want to join the Main- counter,” whatever that means. But even begun to explain how this con-
Speaker was right to follow through. Those who land. Mr. Xi’s decision to violate China’s treaty that lies nowhere in the law’s text. tent-based restriction on the First
say this was the “wrong” time to visit can’t tell with Britain and crush the autonomy it promised Amendment is the least restrictive
us when would be a “right” time that Beijing to Hong Kong was a watershed moment in Tai- The law says that it is illegal to re- way to satisfy a compelling govern-
would tolerate. The Biden Administration was wan. It turned a majority against the opposition cord within 8 feet of police activity if ment interest—the standard for strict
also smart to have military assets nearby the is- Kuomintang party that wants closer ties to the the recorder “knows or reasonably scrutiny. We have a constitutional
land in case of trouble. Mainland. should know that law enforcement ac- right to record police in public, and
tivity is occurring,” “receives or has Arizona can’t take that away.
On Tuesday Beijing responded with rhetorical China’s reaction to the Pelosi visit should con-
fury and unspecified military threats, but no di- centrate minds in Taipei and the U.S. about moving This Is Not China’s Decision ALEXA L. GERVASI AND ANYA BIDWELL
rect military engagement. That could change in urgently to buttress the island’s defenses. Arms Institute for Justice
the days ahead, as the core complaint in the Chi- deliveries need to move faster, and of the kind that Arlington, Va.
nese Ministry of Foreign Affairs statement is would do the most to deter a potential invasion.
that the Pelosi visit is an attempt “by the Taiwan The U.S. and its allies also need to prepare in case For China there will never be a Not All Charities Are Equal.
authorities and the United States to change the China begins to employ a strategy of gradual eco- good time for Speaker Nancy Pelosi Give to Save the Most Lives
status quo” over the island. nomic strangulation or quarantine. to go to Taiwan (“Nancy Pelosi’s Tai-
wan Trip,” Review & Outlook, July In “‘Effective Altruism’ is Neither”
But if anyone is attempting to change the sta- This will require creative thinking and forti- 21). But China shouldn’t dictate Mrs. (Inside View, July 25), Andy Kessler
tus quo, it is Chinese President Xi Jinping, who tude because China is making its intentions all Pelosi’s travels. What would China criticizes GiveWell’s work by suggest-
seems intent on unifying Taiwan and China on too clear. The Taiwan crisis looms. say if the U.S. made such absurd de- ing that vitamin A supplementation is
mands on the travel of its govern- redundant, since “genetically modi-
Manchin’s Mountain Valley Dream ment officials? Mrs. Pelosi should go, fied ‘golden’ rice already provides vi-
and go openly and proudly, and hold tamin A more effectively.”
W est Virginia Sen. Joe Manchin says Earlier this year, the judges vacated U.S. For- a town hall or another quintessential
Democratic leaders have agreed to est Service and Bureau of Land Management au- democratic activity in Taiwan. Golden rice isn’t a silver bullet for
consider permitting reforms to com- thorizations to allow construction across 3.5 vitamin A deficiency. It’s rare that a
KENT WANG panacea exists for global health is-
plete the Mountain Valley The Senator pitches miles of federal land in the Potomac Falls, Va. sues. That’s why GiveWell supports
Pipeline. That’s nice of them. Jefferson National Forest. Mr. Wang is an advisory commis- malaria nets, preventive malaria med-
sioner for the Overseas Community ication and a malaria vaccine. Vitamin
Alas, these mooted reforms reforms that won’t stop They also vacated a biological Affairs Council of the Republic of A supplementation is cheap and effec-
even if enacted won’t help anti-fossil fuel lawsuits. opinion by the U.S. Fish and China (Taiwan) in the U.S. tive. High-quality studies show that
much since the Democratic Wildlife Service that building vitamin A supplements, which cost
Warren Didn’t Have It Easy $1.10 to deliver, save children’s lives.
Party’s green allies will con- the pipeline wouldn’t have a
Regarding “Sen. Elizabeth Warren’s When I left my job at a hedge fund
tinue their legal warfare. significant impact on two en- Inflation Blame Game” (Letters, July 15 years ago, I wanted to help donors
29): As a high-school classmate of decide where to give. GiveWell identi-
Mr. Manchin on Monday released a summary dangered species. Ms. Warren, I can assure your letter fies evidence-backed charities that
writer that she, having seen her fa- save lives cost-effectively, and pub-
of environmental permitting changes that he’s The same three judges have reviewed a ther lose his job after having a heart lishes its analyses. Since GiveWell’s
attack, the family car repossessed, inception, over 100,000 donors have
proposed in return for his vote for the Schumer- dozen petitions challenging pipeline permits the family home nearly lost to fore- given more than $1 billion to the or-
closure and her mother taking a mini- ganizations we recommend, which, we
Manchin bill. Count us skeptical that Democrats over four years, and all but two have been va- mum-wage job to stave off further di- estimate, will save over 150,000 lives.
saster, is quite familiar with what
will back any substantive reforms that could ease cated or stayed. “Mountain Valley’s concerns happens when paychecks are missed. ELIE HASSENFELD
CEO, GiveWell
fossil-fuel development, but even those on the are purely with the judicial process and not LARRY ROTH Oakland, Calif.
Kansas City, Mo.
table seem to be small beer. with the substantial work done by the federal Pepper ...
Taxpayers, This Is a Hijack And Salt
The Mountain Valley Pipeline (MVP) illus- agencies,” pipeline developers wrote in a letter
“The Schumer-Manchin Pact” (Re- THE WALL STREET JOURNAL
trates how the climate left uses litigation to to the Federal Energy Regulatory Commission view & Outlook, July 29) reminds us
that affluent Americans reap a $7,500
keep fossil fuels in the ground. The pipeline is explaining their petition for en banc court re- electric-vehicle tax credit, paid for by
taxpayers. I find this figure a supreme
a priority for Mr. Manchin because it would ex- view this spring. They were denied. irony: The aircraft-distress code 7500
indicates “hijack in progress.”
pand markets for West Virginia’s natural gas Mr. Manchin wants Congress to give the D.C.
PHILIP BEEKLEY
and enable more production. But its costs have Circuit Court of Appeals jurisdiction over future San Antonio

nearly doubled to $6.6 billion from $3.8 billion litigation related to the pipeline, but that won’t

owing to litigation, and it is more than four help with existing lawsuits before the Fourth

years behind schedule. Circuit. It also won’t help other pipelines, and

While the pipeline by some estimates is 94% the left-leaning D.C. Circuit may be as hostile

complete, it still needs to finish environmental as the Fourth Circuit judges.

restoration and segments that cross wetlands, What’s needed is a wholesale reform of envi-

streams and national forests. Mr. Manchin’s re- ronmental laws that fossil-fuel opponents have

forms would “require the relevant agencies to weaponized. Perhaps they should be forced to

take all necessary actions to permit the con- pay the costs of their obstruction if project de-

struction and operation of the Mountain Valley velopers prevail, as two pipelines did at the Su-

Pipeline.” preme Court in recent years only to be scrapped

But federal agencies in this case aren’t the by investors amid more lawsuits. The incentives

problem. They’ve granted MVP the necessary have to change. Letters intended for publication should
be emailed to [email protected]. Please
permits. The problem is that green groups keep Will Democrats agree to legislation that include your city, state and telephone
number. All letters are subject to
filing legal challenges to environmental re- stops their allies’ legal barrage against fossil fu- editing, and unpublished letters cannot
be acknowledged.
views, and the same Fourth Circuit Court of Ap- els? Unless they do, Mr. Manchin’s reforms will

peals three-judge panel keeps tossing the per- do as much to save fossil fuels as the League of

mits over peccadillos. Nations did to stop World War II. “It failed the stress test.”

THE WALL STREET JOURNAL. .

Wednesday, August 3, 2022 | A15

OPINION

Lessons From the Great Inflation of 1973-81

By Phil Gramm cut federal income taxes in 1971, 1975, BETTMANN ARCHIVE/GETTY IMAGES the tax burden from 19.1% of GDP to
And Mike Solon 1976 and 1977. So how did taxes rise 17.8% in eight years, reversing 68.5%
at a record pace? Surreptitiously and President Reagan and Fed Chairman Paul Volcker in July 1981. of the nine-year bracket-creep tax in-
H istory withholds its wis- automatically through inflation and creases. By 1984 runaway inflation
dom from those who ig- bracket creep. As the Congressional of federal spending were both post- of oil and gas prices and further was over, real GDP growth hit 7.2%,
nore its lessons. Forty Budget Office explained in 1980, “tax- war highs, respectively 19.1% and lightening regulatory burdens across and it was “Morning in America.”
years ago this month, the payers with two dependents . . . earn- 21.6% of GDP. By the end of the Rea- the economy. Those efforts cut the The economic recovery effectively
fiscal policy of President ing $15,000”—around $57,000 in gan presidency, real average annual costs of moving people and products lasted 25 years, until the Great Re-
Ronald Reagan and the monetary 2022 dollars—“and filing a joint re- federal spending growth had de- by 50% and gave America the world’s cession of 2007-09.
policy of Federal Reserve Chairman turn would pay $294 more in federal clined to 2.5% from 4.3% and social most efficient supply chain.
Paul Volcker broke the back of the income taxes—a 23.8% rise in tax lia- spending growth to 1.9% from 6.3%. During the pandemic, total federal
20th century’s most destructive in- bility—if the family’s adjusted gross Real annual defense spending growth In conjunction with Fed monetary spending exploded as government
flation, ushered in an economic ex- income and itemized deductions rose had risen to 4.3% from minus 0.1%. tightening, cutting spending, taxes spent in two years what it had spent
pansion that effectively lasted a by 13.3%,” the inflation rate of 1979. As a share of the economy, total fed- and the regulatory burden brought in the three years before the pan-
quarter of a century, and banished With 16 tax brackets and 9% inflation eral spending had fallen by 1% and inflation down quickly. By fall 1982, demic. The Federal Reserve accom-
inflation—until now. over the period, bracket creep in- social spending by 1.5%; defense inflation had been cut in half, and by modated this fiscal explosion by buy-
creased taxes as a share of gross do- spending had risen by 0.5%. the end of Reagan’s first term it was ing or offsetting three-fourths of all
The buildup to the Great Inflation mestic product by 2.1%, dwarfing the reduced to normal levels, where it the government debt incurred. The
started in 1966, when Congress, at the later Clinton and Obama tax in- Reagan achieved this spending re- remained until the 2020s. money supply expanded at the fast-
urging of the Johnson administration, creases combined. straint during a deep recession, est rate in postwar history.
expanded funding for both the war in which saw unemployment rise to With the sharp drop in the infla-
Vietnam and the War on Poverty. This But record tax increases couldn’t 10%. The Federal Reserve’s tighten- tion rate, bracket-creep revenue the With inflation running at 9.1% and
“guns and butter” policy produced a keep pace with spending. Annual real ing sent prime interest rates to CBO had assumed would be gener- negative growth for the past two
federal spending increased by 4.3%, 20.5% in 1981. Neither Reagan nor ated in 1982-84 failed to materialize. quarters, President Biden continues
Then as now, what drove defense fell by 0.1%, and social Volcker ever flinched. In addition to The drop in inflation alone reduced to press for massive increases in
higher prices was excess spending exploded by 6.3%. As a dramatically reducing the real bracket-creep tax increases by $108 taxes and spending. Even though
demand owing to runaway share of GDP, total spending rose by growth in government spending and billion in those three years. The dou- stimulus spending has ended, the Bi-
government spending. 2.6%, defense fell by 1.5%, and social excess demand, Reagan cut taxes, ble-dip recessions of 1980-82 slashed den budget for fiscal 2023 calls for
spending rose by 4.1%, almost a one- creating incentives to work, save and revenue by another $184 billion. Ac- spending 30.2% more than the pre-
double-digit surge in federal spend- third increase in the share of na- invest. Congress indexed individual cording to CBO, the plummeting of pandemic 2019 nominal level. By ex-
ing. By 1973 inflation was running at tional income being spent by the fed- tax brackets for inflation beginning inflation and the 1980-82 recessions ecutive order, regulatory appoint-
8.7% and would average 9.2% for nine eral government on social spending. in 1985. Reagan built on Jimmy cost the Treasury $292 billion, more ments and antitrust actions, Mr.
years—far surpassing average infla- Compare that with the New Deal: So- Carter’s transformational deregula- than the static cost estimate of $280 Biden has imposed the nation’s
tion of 3.3% between 1946 and 1972 cial spending rose by a then-un- tion effort, completing the decontrol billion for the Reagan tax cuts during heaviest peacetime regulatory bur-
and 2.7% from 1982 through 2019. heard-of 2% of GDP from 1933 1982-84. The Reagan tax cut reduced den. He continues to attack big oil,
During the 1973-81 Great Inflation, through 1939. big banks, big tech and big grocers
even after adjusting for inflation, fed- and continues to search for price fix-
eral revenue rose by an average 4.1% Guns and butter ignited excess de- ing, all policies that failed in the
a year. The share of the economy mand and inflation in 1966, but but- 1970s.
taken by the federal government in ter has fueled excess demand and in-
taxes rose by nearly one-eighth, from flation ever since. Monetary policy Mr. Biden is pursuing policies that
17% to 19.1%. has accommodated these fiscal ex- are the exact opposite of the policies
cesses; and supply disruptions, in- Reagan used to stop the inflation and
That’s astonishing, because Con- cluding those caused by the six- revive the economy. Mr. Biden may
gress never voted to raise income month Arab oil embargo in 1973 and think he can tax, spend and regulate
taxes during that period. In fact, after the pandemic shutdown in 2020, ex- America out of the inflation and reces-
LBJ’s 1968 temporary tax surcharge, acerbated them. But federal spend- sion. History suggests otherwise.
which didn’t slow inflation, Congress ing has driven inflation in postwar
America. Mr. Gramm is a former chairman
of the Senate Banking Committee and
When Reagan took office in Janu- a nonresident senior fellow at Ameri-
ary 1981, the inflation rate was can Enterprise Institute. Mr. Solon is
12.5%. The tax burden and the level a partner of US Policy Metrics.

Democrats Try to Undo the Best Part of Trump’s Legacy

The Democratic and the poverty rate among Black just as administration officials and the kind of business investment we they typically are for the party that
people fell below 20% for the first supply-side economic modeling pre- saw before Covid. And because cor- controls the White House.
Party has a more time in post-World War II records,” dicted. Lower corporate tax rates porate levies are borne mainly by
the Journal reported in October were intended to reverse the down- employees, higher taxes on busi- Not all of Mr. Trump’s economic
complicated rela- 2020. “The unemployment rate ward trend in business investment, nesses can also lead to lower wages policies are worth preserving. His
among Black people went under 6% and following their implementation and less hiring. trade war with China has been a
tionship with Don- for the first time in records going major companies announced wage bust. It didn’t reverse a U.S. decline
back to 1972.” Minorities weren’t The White House seems to be in manufacturing, as the White
ald Trump than it the only beneficiaries of this boom- Voters rejected his bad under the impression that Mr. House promised. Rather, it helped
let. Between 2017 and 2019, wages behavior. His economic Trump got the boot in 2020 be- some manufacturers while hurting
likes to admit. It for the bottom 10% of earners grew policies were largely cause of his stewardship of the others, for a net loss overall. Yet in-
at more than double the rate they successful pre-pandemic. economy and that voters want his stead of reducing tariffs on Chinese
UPWARD wants voters to re- did during President Obama’s sec- economic policies reversed. But the goods, which increase prices for
MOBILITY member the non- ond term. hikes, bonuses and 401(k) match in- economy is one area where Mr. U.S. consumers at a time when peo-
stop chaos of his creases. In the two-year period af- Trump consistently polled stron- ple are already feeling pinched, the
By Jason L. administration, his This record is all the more im- ter the 2017 tax reform passed, gest, and he was elected in 2016 in Biden administration has decided to
Twitter rants, how pressive because it defied expecta- household incomes rose by more large part because of the sluggish target tax cuts that can be shown
Riley tions. The growth of gross domestic than they had in the previous eight growth under Mr. Obama. As Mr. empirically to have benefited the
product during Mr. Obama’s final years combined. Obama’s vice president, Joe Biden working class.
he debased the year in office was only about half of rode shotgun through the slowest
what it had been a year earlier, The reason this history is impor- economic recovery since World War Whether the issue is crime, im-
presidency on Jan. 6 and won’t stop which prompted no shortage of tant is because Democrats, via the II—a recovery that finally kicked migration or the economy, Demo-
doom-and-gloom economic fore- Inflation Reduction Act unveiled into gear after tax reforms opposed crats are putting progressivism
lying about the 2020 election re- casts for the Trump presidency. last week, want to raise the taxes by most Democrats in Congress ahead of pragmatism and believe
Nevertheless, in 2017, 2018 and that Mr. Trump cut. No matter what took effect. that the defeat of Mr. Trump in
sults. Fair enough. 2019, the unemployment rate came it’s called, the legislation is another 2020 gives them license to do so.
in below what the Federal Reserve tax and spending bonanza that will Democrats are in a bind. With in- But Mr. Trump lost his bid for a
But Democrats also need voters had predicted, while GDP was do little if anything to reduce infla- flation at a 40-year high, violent second term because the country
higher than anticipated. tion. But passage could discourage crime rates spiraling upward, and a grew tired of his behavior, which
to forget the success of the pre- border situation that even has Dem- shouldn’t be confused with his eco-
Democrats are loath to give Mr. ocratic mayors of sanctuary cities nomic and political agenda. It might
pandemic economy and support ef- Trump’s tax and regulatory agenda complaining about too many illegal take a midterm shellacking for the
any credit for these outcomes, but immigrants, the midterm elections left to finally figure out why Joe Bi-
forts to reverse policies that abet- the economy performed in the main could be significantly worse than den was elected.

ted faster growth. The reality is

that when Mr. Trump wasn’t em-

barrassing himself, he was advanc-

ing a more or less traditional Re-

publican agenda of lower taxes

and lighter regulations. The up-

shot was an acceleration in eco-

nomic activity, higher labor-force

participation rates and narrowing

racial inequality.

“During Trump’s first three years

in office, median household in-

comes grew, inequality diminished,

The West Needs to Call Russia’s Bluff on Peace in Ukraine

By Zalmay Khalilzad been, and continues to be, contradic- may include a “referendum” with a the international political costs to (which the U.S. so far hasn’t sup-
tory and tactically tailored to the au- preordained result, as was done in Russia. This demands the West take plied) that enable Ukraine to threaten
R ussian Foreign Minister Sergei dience. Dangling the prospect of Crimea. Moscow seeks additional ter- three steps. disputed and Russian territory, in-
Lavrov visited Africa last week peace talks is intended to weaken ritory in the south and recently car- cluding Crimea and beyond.
carrying the message that support for Ukraine, divide its sup- ried out large-scale attacks on differ- First, deter Russian escalation and
Moscow would like a political settle- porters, and diminish Russia’s inter- ent parts of Ukraine, including Kyiv prevent the annexation of its recently Second, improve the chances that
ment to the war in Ukraine, but Kyiv national isolation. and Odessa. conquered Ukrainian territory. Suc- Ukraine’s planned offensive opera-
is thwarting the initiative at the be- cessful deterrence requires the cost tions succeed by ensuring that their
hest of the U.S. Russian diplomats For a reliable indicator of Russian Ukrainian leaders are preparing of- plans are realistic and thoroughly
echo the message, telling U.S. media intentions, look to what they are do- fensive operations across the occupied Moscow claims to want a evaluating their assets. The recent
and policy makers that Washington is ing on the ground. It looks nothing territories—especially in the south. political settlement. It will provision of American arms, espe-
eschewing diplomatic engagement like a prelude to a political settle- They understand that conditions for get serious only if it sees a cially the Himars (High Mobility Ar-
and blocking pursuit of a peaceful ment. Instead Moscow is preparing an acceptable settlement aren’t in real threat of defeat. tillery Rocket System), with their
resolution. for escalation and a land grab. This place. In any such negotiations, mili- nearly 50-mile reach, has boosted
includes preparation to annex terri- tary realities are the determining fac- of escalation and annexation to ex- Ukrainian morale. Timely delivery of
This is bunk. There are high-level tory currently under its control, gain tor. An acceptable peace deal requires ceed the benefit in Russia’s eyes. One additional Himars, as the Biden ad-
channels for communicating serious control of additional territory, con- the situation on the ground to tilt in step that may force Moscow to recal- ministration announced last month,
messages, and if officials in Moscow duct attacks on major cities outside their favor, and Ukraine seeks to do so culate is for senior U.S. officials to will enhance Ukraine’s capability to
want to discuss a political settlement, the Donbas region, and eradicate the at great cost of life. clearly convey that Russian escala- accurately destroy Russian targets at
they know exactly how to use them. Ukrainian identity wherever possible. tion will be met by an accompanying longer range.
Secretary of State Antony Blinken For many reasons, including future escalation of American support for
and Jake Sullivan, the national secu- Moscow has appointed its own of- stability and order in Europe and the Ukraine. This would include provid- Third, make a better case for other
rity adviser, speak with their Russian ficials in the Donbas, issued Russian vital task of dealing with China, a po- ing armed systems with greater reach countries to support Ukraine. Mr. Pu-
counterparts. There is no indication passports to the local citizens, and litical settlement of the Ukraine con- tin’s war carries enormous costs for
that Vladimir Putin is truly willing to replaced school texts with books that flict is the most desirable outcome. Russia, Europe and much of the
pursue a political settlement. teach history from the Russian narra- But getting there will require improv- world. Yet Ukraine and the U.S. are
tive. These steps signal a concerted ing Ukraine’s ability to impose risks losing the information war in Africa
The message from Moscow has buildup toward annexation, which on Russia and substantially increasing and Asia, where Russia is pushing
buttons selectively. Mr. Blinken’s an-
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Notable & Quotable: Rights nounced trip to Africa is a good step,
but Ukrainians are the best spokes-
Rupert Murdoch Robert Thomson Ian Millhiser writing for Supreme Court—to determine men for their own cause. The U.S.
Executive Chairman, News Corp Chief Executive Officer, News Corp Vox.com, Aug. 2: which unenumerated rights should should help them make their case—to
enjoy constitutional protection. the receptive West, around the world
Matt Murray Almar Latour The Constitution is clearly sup- That’s a fine solution if you are and inside Russia.
Editor in Chief Chief Executive Officer and Publisher posed to protect some rights that comfortable giving this power to
aren’t mentioned within it—this is whoever sits on the Court, includ- The U.S. should be ready to facili-
Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: apparent from the Ninth Amend- ing the specific justices who cur- tate and support a peaceful settle-
Jason Anders, Deputy Editor in Chief Daniel Bernard, Chief Experience Officer; ment, which provides that “the enu- rently do. ment. But the Russians will become
Neal Lipschutz, Deputy Editor in Chief Mae M. Cheng, SVP, Barron’s Group; David Cho, meration in the Constitution, of serious about negotiations only if
Barron’s Editor in Chief; Jason P. Conti, General certain rights, shall not be con- But if you are concerned that they see significant risks, costs and
Thorold Barker, Europe; Elena Cherney, Coverage; Counsel, Chief Compliance Officer; Dianne DeSevo, strued to deny or disparage others [Samuel] Alito and his fellow con- potentially failure ahead. A pro-
Andrew Dowell, Asia; Brent Jones, Culture, Chief People Officer; Frank Filippo, EVP, Business retained by the people.” servative justices do not have your tracted conflict is acceptable to them,
Training & Outreach; Alex Martin, Print & Information & Services, Operations; Robert Hayes, best interests at heart, then it and they are content to seize Ukraine
Writing; Michael W. Miller, Features & Weekend; Chief Business Officer, New Ventures; But the Constitution’s text also makes more sense to limit the inch by bloody inch. To defeat their
Emma Moody, Standards; Shazna Nessa, Visuals; Elizabeth O’Melia, Chief Financial Officer; provides few clues about what these Court’s power—and that means that cruel logic will require making the
Matthew Rose, Enterprise; Michael Siconolfi, Josh Stinchcomb, EVP & Chief Revenue Officer, unenumerated rights might be. . . . our rights must be grounded in con- conflict hit Russia closer to home.
Investigations WSJ | Barron’s Group; Jennifer Thurman, Chief stitutional text that places some
Communications Officer One way to square this circle is limits on judicial discretion. Mr. Khalilzad served as U.S. am-
Paul A. Gigot to allow judges—and ultimately the bassador to the United Nations,
Editor of the Editorial Page EDITORIAL AND CORPORATE 2007-09.
Gerard Baker, Editor at Large HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES

A16 | Wednesday, August 3, 2022 **** .

THE WALL STREET JOURNAL.

WORLD NEWS

Moscow Targets Civilians in South Kyiv Works
To Ease
Rockets destroy a
Grain
Ukrainian dormitory

and damage several Backlog

apartment buildings OLEKSANDR GIMANOV/AGENCE FRANCE-PRESSE/GETTY IMAGES
STEPHEN FERRY FOR THE WALL STREET JOURNAL
BY IAN LOVETT BY JARED MALSIN

KYIV, Ukraine—Russian Workers on Tuesday removed the debris of a student dormitory that was destroyed by shelling in the city of Mykolaiv. AND ALISTAIR MACDONALD
shells struck Ukrainian-held
territory in the country’s south Russian officials have said ing them to defend territory in other $550 million in U.S. mili- painful losses every week ISTANBUL—Officials in
Tuesday morning, according to they don’t target civilian areas. the south, according to Ukrai- tary aid for Ukraine, bringing thanks to these very effective Ukraine are racing to clear a
local officials, as both sides nian and British officials. Washington’s security assis- systems,’’ Ukrainian President backlog of millions of metric
shift their attention toward a Ukrainian and Russian forces tance for Kyiv to more than $8 Volodymyr Zelensky said in tons of grain trapped by Rus-
looming fight for the area. have been shifting their focus Ukraine has used long- billion since Russia’s invasion. his nightly address Tuesday. sia’s invasion after the first
to the south in recent weeks, as range artillery and rocket sys- shipment left the country this
In the southern city of Ukraine prepares for what offi- tems, including U.S.-supplied “The word ‘Himars’ has be- Russian Defense Minister week, a task they warn could
Mykolaiv, where early-morn- cials said would be a major M142 Himars, to halt Russia’s come almost synonymous with Sergei Shoigu said that “uncon- take months in an effort to
ing shelling has become rou- counteroffensive to retake ar- advances in the east, as well the word ‘justice’ for our trolled deliveries” of Western boost wartime exports and
tine in recent weeks, rockets eas it lost early in the war. as to damage Russian supply country, and the Ukrainian de- weapons to Ukraine threatened ease the global food crisis.
destroyed a student dormitory lines in the south. fense forces will do everything the security of the region.
and damaged several apart- Moscow has been moving to ensure that the occupiers The first ship to depart
ment buildings and other civil- troops out of the Donetsk re- On Monday, the Biden ad- experience more and more —Georgi Kantchev Ukraine under a United Na-
ian infrastructure, the city’s gion, in the east, and deploy- ministration authorized an- contributed to this article. tions-brokered deal, a bulk car-
mayor wrote on Telegram. rier with a cargo of corn,
steamed south across the Black
In the Dnipropetrovsk region, Sea on Tuesday toward Istanbul
northeast of Mykolaiv, several for inspection. It will then con-
areas came under fire over- tinue toward Tripoli, Lebanon.
night, according to its governor,
including the Synelnykovskiy Kyiv said it believes it could
district, away from the front take months to clear the
lines. “A night of anxiety and buildup of grain and seed in
shelling,” Valentyn Reznichenko, storage facilities. Persuading
governor of the Dnipropetrovsk cargo companies to return to
region, wrote on Telegram. the war-torn country to main-
tain the flow of exports—and
U.S. Sanctions finding insurance for those
Woman It Calls willing to do so—also could be
Putin’s Girlfriend tricky, Ukrainian officials say.

BY ALAN CULLISON for Russian Vogue. He has César Pardo, a miner in Tópaga, Colombia, has seen his salary grow threefold in a matter of weeks. The initial grain shipment
publicly shrugged at Western and inspection are a critical
WASHINGTON—The Trea- sanctions and ordered his gov- Russia Penalties Give Lift test run for the export agree-
sury Department unveiled a ernment to reorient its trade ment, a multilateral deal
fresh raft of sanctions on Rus- toward partners such as China To Other Coal Producers wrought through months of di-
sian companies and people and India, which haven’t plomacy, U.N. officials said
around Vladimir Putin on joined the U.S. and its allies in TÓPAGA, Colombia—The wean themselves off what for gas, creating shortages and Tuesday. The arrangement re-
Tuesday, including a famed the measures. people of this coal-mining the continent has been the leading to soaring prices. quires all four parties, including
former Russian Olympic gym- hamlet say they grasp little main provider of coal for two warring countries, to work
nast whom the U.S. govern- It isn’t clear what effect the power generation. Europe has responded in to ensure the safe passage of
ment believes to be the Rus- sanctions will have on Ms. Ka- By Jenny part by turning to non-Rus- ships through the Black Sea,
sian president’s girlfriend. baeva. While sanctions have Carolina González, They are buying it from sian coal. The Paris-based In- which is littered with mines laid
punished Russian elites with open-pit mines cut into South ternational Energy Agency by both Russia and Ukraine.
The measures come as the dealings abroad, Mr. Putin’s Rhiannon Hoyle Africa’s Mpumalanga Highveld said in a report released
Biden administration has been innermost circle has curtailed and Juan Forero and the vast Illinois basin, in Thursday that coal consump- “They worked everything at
deploying actions that it had travel since the beginning of Illinois, Kentucky and Indiana. tion in the EU is expected to light speed” to get the first
previously balked at in its the invasion. Inside Russia about Russia’s invasion of Germany has been buying rise 7% this year. With China shipment out on Monday, said
quest to punish Moscow for its they remain enveloped in an Ukraine. But they do know it from Australia—the world’s forecast to reduce imports by Ismini Palla, a spokeswoman
invasion of Ukraine. The gym- elite that relies little on West- has translated into boom second-largest exporter of the 45 million tons in 2022, coal for the U.N.
nast, Alina Kabaeva, was ern financial instruments. times for them. thermal coal used to generate shipments that would have
named among some prominent electricity—the coal dug up gone there can be redirected “The next step is to opera-
Russian business leaders and Still, the sanctions continue In the wake of the war, Eu- from rolling hills in the wine- to Europe, said Carlos Fernán- tionalize it, to make it a rou-
officials who have played a role to hurt Russian oligarchs who rope is weaning off Russian growing Hunter Valley region. dez, senior coal analyst for the tine. Inbound, outbound,” she
in supporting the Russian gov- were caught off guard with as- coal and turning to Colombia IEA. “The decline in Chinese said, speaking at the Istanbul
ernment during the invasion. sets in the West. Also sanc- and a host of other countries The purchasing surge comes imports in 2022 will be bigger coordination center, where
tioned by the Treasury De- from South Africa to Australia despite the pledges of many than the increase in European military officials from all three
The Treasury Department partment was Andrey with an urgent appeal: Sell us countries to reduce their coal imports this year,” countries along with a U.N.
said the sanctions targeted Grigoryevich Guryev, whom more coal. A commodity that consumption to combat climate Mr. Fernández said. delegation are monitoring the
“Kremlin-connected elites, a the Treasury called a close as- was fetching $134 a metric ton change. Climate activists have shipments.
major multinational company, sociate of Mr. Putin. Mr. Gu- at the start of the year is now expressed concern but say they Colombia shipped nearly
and a sanctions evasion opera- ryev founded a leading Rus- selling for up to $400 a ton, see the renewed demand being four times as much coal to At the center Tuesday, offi-
tion, as well as one yacht.” sian chemical company and leading coal producers to try short-term. Germany from March through cials used satellite data to
owns Witanhurst, the second- to crank up production and May as it did in those three monitor the passage of the first
Alina Kabaeva is largest estate in London after creating a windfall in towns “The world has changed,” months the year before, figures ship, the Sierra Leone-flagged
Buckingham Palace. like Tópaga, in the mountains said Nicolás Arboleda, mining collected by Trade Data Moni- Razoni, carrying at least
suspected of helping in the heart of this country. and metals analyst at Baker tor showed. It now accounts 26,000 metric tons of corn.
The Treasury Department McKenzie in Bogotá, the Co- for more than one in every 10
to hide Mr. Putin’s said it also identified his Cay- “It’s a very good moment,” lombian capital. “Thermal tons Germany imports, though The challenge now, officials
man Islands-flagged yacht, said César Pardo, a miner who plants using coal in Europe are President-elect Gustavo Petro say, is to make sure the ship
wealth overseas. Alfa Nero, which it says he has seen his salary grow three- again active.” says he wants Colombia to reaches its destination
bought for $120 million in fold in a matter of weeks. transition from fossil fuels for smoothly, and then accelerate
The Treasury called Ms. Ka- 2014, as blocked property. The “With prices today, there’s a Russia accounted for about environmental reasons. operations to export an esti-
baeva “a close personal Treasury Department noted lot of business going around 46% of the coal consumed by mated 16 million metric tons
friend” of Mr. Putin who is that the yacht had shut off its for everyone, from the smallest the EU in 2021 and about 40% The U.S., too, is ramping up, of grain trapped in Ukraine
also head of National Media location-tracking hardware to [mines] to the very biggest.” of its natural gas. As a re- with shipments to Germany in- since war broke out. But silos
Group, a pro-Kremlin empire avoid seizure. sponse to a flurry of sanctions creasing by more than 10% and barns are fast filling up
of television, radio and print With a European Union em- after Russian President Vladi- during the same period, ac- with this season’s wheat and
organizations. Many of the sanctions, in- bargo on Russian coal imports mir Putin ordered troops into cording to customs data col- barley harvests, raising fears
cluding those on Ms. Kabaeva, set to start in less than two Ukraine on Feb. 24, Moscow lected by Trade Data Monitor. that storage space will run out.
Ms. Kabaeva, a former were announced previously by weeks, importers are racing to throttled deliveries of natural
Olympic champion rhythmic the European Union and U.K., About 4 million metric tons
gymnast known in the sport and the slower-moving U.S. of barley and 9 million metric
for her extreme flexibility and bureaucracy that approves tons of wheat have been har-
an international doping scan- sanctions is now playing vested so far this summer, ac-
dal, is suspected of playing a catch-up, said Daniel Fried, cording to Ukraine’s Ministry
role in hiding Mr. Putin’s per- former sanctions coordinator of Agrarian Policy and Food.
sonal wealth overseas, U.S. of- for the State Department,
ficials said. where he also served as an as- Ukraine expects no more
sistant secretary for European than five vessels to leave its
Mr. Putin, 69 years old, has and Eurasian Affairs. ports in the next two weeks,
never acknowledged a rela- meaning it could take months
tionship with Ms. Kabaeva, 39, But some of the measures to free up space, said the coun-
who is a celebrity inside Rus- are significant, Mr. Fried said, try’s deputy minister of infra-
sia and a former cover model because they will complicate structure, Mustafa Nayyem.
Mr. Putin’s plans for alterna- Much, he said, would depend
tive trade routes that evade on the safe passage of the Ra-
the U.S. and Europe. zoni. There are 16 vessels
ready to ship grain in the ports
in and around the city of
Odessa, said Rabobank.

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WORLD WATCH

RUSSIA both sides are expected to make SHAHID SAEED MIRZA/AGENCE FRANCE-PRESSE/GETTY OPEC YEMEN
closing arguments, and Ms. Gri-
Griner Trial Moves ner will deliver final testimony in RESCUE: A Pakistan soldier carries a child after flooding in the Cartel, Allies Weigh Government and
her own defense, said Alexander Rajanpur district in the Punjab province on Tuesday. Fierce rains
Toward Conclusion Boykov, one of her lawyers, from and flooding have killed 478 people this monsoon season. Oil Output Increase Rebels Extend Truce
the Moscow Legal Center.
Women’s basketball star of up to 10 years in prison. of Ms. Griner and another Ameri- OPEC and its allies are con- Yemen’s warring parties
Brittney Griner’s trial on drug Russia’s state news agency, Ms. Griner’s lawyers wouldn’t can, former Marine Paul Whelan, sidering either a modest in- agreed Tuesday to renew an ex-
charges moved toward its con- TASS, reported that the prosecu- who was convicted of espionage crease in oil production or main- isting truce for another two
clusion outside Moscow on tor is expected to ask for a sen- comment on the issues of a pos- charges in 2020 and is serving a taining output at current levels months, the United Nations said.
Tuesday, her long-term fate in- tence for Ms. Griner on Thursday. sible prisoner swap. The U.S. is 16-year sentence. when they meet Wednesday,
creasingly tied to campaigns on Her sentence likely will be a signif- pressing a “substantial proposal” delegates say, as the alliance The U.N.’s envoy to Yemen,
behalf of several other prisoners. icant factor as both sides seek to to Russia to secure the freedom —Louise Radnofsky seeks more time to assess a Hans Grundberg, said Yemen’s
balance the human equation that possible slowdown in global en- internationally recognized gov-
The court heard testimony is a prisoner exchange. ergy demand. ernment and the country’s
from a prosecution expert wit- Houthi rebels also agreed to try
ness, who conducted an exami- Ms. Griner is making a bid for The Saudi-led Organization of to arrive at a “an expanded
nation of the substance con- leniency, pleading guilty to pos- the Petroleum Exporting Coun- truce agreement as soon as pos-
tained in the vape cartridges sessing drugs and bringing them tries faces some pressure to sible,” the envoy said.
that were confiscated from Ms. into Russia, but saying she boost supply and help lower oil
Griner when she arrived in Rus- packed them by mistake and prices after President Biden’s The cease-fire initially took
sia in mid-February. The prose- never intended to break the law high-profile trip to the kingdom effect on April 2 and was ex-
cution has said the cartridges of a country where she has en- last month. But it needs to coor- tended June 2, despite both
contained a total of 0.702 gram joyed living, paying taxes, and dinate such a move with a coali- sides trading accusations of vio-
of hashish oil. contributing to Russian basket- tion of Russia-led producers with lating the truce and the failure
ball for years. which it has an enduring alliance. to lift a yearslong blockade of
Ms. Griner’s next hearing is the city of Taiz by the Houthis.
scheduled for Thursday, in which The charges carry a penalty —Benoit Faucon
—Associated Press

.

TECHNOLOGY: SALES GAIN AT CHIP MAKER AMD B4

BUSINESS & FINANCE
© 2022 Dow Jones & Company. All Rights Reserved. ***** THE WALL STREET JOURNAL. Wednesday, August 3, 2022 | B1

S&P 4091.19 g 0.67% S&P FIN g 1.07% S&P IT g 0.69% DJ TRANS g 2.39% WSJ $ IDX À 0.87% 2–YR. TREAS. yield 3.077% NIKKEI (Midday) 27740.97 À 0.53% See more at WSJ.com/Markets

Uber Sales Double as Number JetBlue Posts Loss
As Fuel Expenses
Of Drivers, Couriers Surges Offset Fare Rises

Ride-hailing firm’s Quarterly revenue 2Q 2022 Gross bookings
efforts to trim losses
while continuing to $8 billion $8.07 billion $14 billion Delivery BY ALISON SIDER Jet Blue’s quarterly net
grow seem to work profit/loss
JetBlue Airways Corp. lost
12 money in the second quarter as $200 million 2Q 2022
its expenses soared, but the –$188M
airline said it expects to be-
BY PREETIKA RANA 6 10 come profitable in the third 100
AND MEGHAN BOBROWSKY quarter.

Uber Technologies Inc. JetBlue faced operational 0
doubled quarterly revenue, im- stumbles in the spring and
proved its financial perfor- 8 made sharp cuts to its flying –100
mance and said high inflation 4 plans to get a handle on the
was causing more people to Mobility problems. The airline said the
drive for the platform to help 6 efforts paid off, helping reduce
offset rising household costs. ’21 ’22 its cancellation rate, but such
cutbacks also dent opportuni- –200
The ride-hailing company ties to generate revenue.
said Tuesday that revenue 4 –300
grew by 105% to $8.07 billion 2 Other carriers have scaled
for the three months through back on flying plans to give –400
June. The company also 2 themselves more of a buffer, af-
posted adjusted earnings—a ter running into problems from 2019 ’20 ’21 ’22
figure that excludes some ex- 00 airport congestion to labor
penses—of $364 million, its shortages this summer. Sources: S&P Capital IQ; the company
strongest ever. Both figures 2019 ’20 ’21 ’22 2019 ’20
beat Wall Street expectations. “The reality is that almost lion deal to create the fifth-
Adjusted earnings* Share performance, year to date no airline has been immune to largest U.S. airline, said rising
Chief Executive Dara Khos- operational challenges this year fuel prices, as well as the cut-
rowshahi said decades-high in- $400 million 10% as the industry quickly ramped backs it made to run more reli-
flation was showing little im- back up, and it’s clear that ably, pressured margins in the
pact on customers using the 2Q 2022 0 what we experienced has now second quarter.
company’s services. “The mar- been felt by all of our peers,”
ketplace looks strong,” he said 200 $364 million JetBlue President Joanna Ger- JetBlue reported a loss of
on an earnings call. aghty said during a conference $188 million for the quarter,
0 –10 S&P 500 call on Tuesday. “Frankly, it compared with a profit of $64
There are indications that –200 –20 just hit us earlier given our million a year earlier, when the
factors such as rising grocery network footprint.” airline was still benefiting from
costs are causing individuals federal aid. Other major air-
to become Uber drivers to off- JetBlue, which last week lines reported profits during
set the pressure on their wal- struck an agreement to buy the second quarter, as they said
lets, he added. “Over 70% of Spirit Airlines Inc. in a $3.8 bil- surging travel demand helped
drivers say inflation has
played a part in their decision Please turn to page B2
to come on to the platform,”
he said. –400 –30 UBER
–600 –40
The company also said it British Airways Curbs
generated free cash flow of –800 –50 Heathrow Ticket Sales
$382 million in the quarter. It
was the first time Uber gener- 2019 ’20 ’21 ’22 J FM AM J JA
ated free cash flow from its
underlying operations and not *Before interest, taxes, depreciation and amortization Sources: the company (revenue,adjusted earnings,bookings); FactSet (performance) BY BENJAMIN KATZ sales would stay in place for
on the basis of a one-time ad- flights through Aug. 15, and
justment—a goal it had prom- billion net loss, driven in large flat from the second quarter, it est, taxes, depreciation and LONDON—British Airways that it would then restrict
ised investors. part by accounting adjust- said. Bookings include Uber’s amortization, should come in is temporarily halting ticket sales on certain short- and
ments to reflect the falling revenue and the money that between $440 million and sales on all domestic and Eu- long-haul flights operating
Revenue was partly boosted value of its stakes in Chinese goes to others, such as drivers $470 million in the current ropean routes from London through Sept. 11.
by high ride prices, triggered ride-hailing company Didi or restaurants. quarter, the company said. Heathrow Airport to cope with
by a yearlong driver shortage Global Inc., Southeast Asia’s That is a smaller improvement passenger restrictions at its The suspension of ticket
in the U.S. and the acquisition Grab Holdings Inc. and Au- The company forecast the than in the second quarter but primary hub, adding to the sales at one of Europe’s big-
of Transplace, a logistics-ser- rora Innovation Inc. total value of bookings on the ahead of the $383 million Wall fallout from travel disruption gest airlines underscores the
vices provider. The company platform to be between $29 Street has been projecting. seen across the industry this challenges confronting the avi-
also changed how it accounts Shares of Uber advanced billion and $30 billion in the This metric strips out some summer. ation industry this summer as
for its rides operations in the 19% on Tuesday. September quarter, in line expenses such as asset write- travelers return to the skies
U.K., giving a boost to revenue with Wall Street’s forecast of downs and stock-based com- BA said the move was after two years of Covid-19-re-
from the prior year. Uber said that the pace of $30 billion and broadly on par pensation that executives con- aimed at accommodating cus- lated restrictions. Many air-
improvement in the underly- with the $29.1 billion in the tomers needing to rebook ports and airlines had hoped
Tuesday’s results signaled ing business might moderate. June quarter. Please turn to page B4 travel because of flight cancel- this vacation season would
that the company’s efforts to Activity on the platform so far lations at the airport. The air- provide an opportunity to re-
trim its losses while continu- this quarter suggests bookings One of its most closely  Heard on the Street: Uber line said Tuesday the halt on cover some of the revenues
ing to grow were working, for its delivery business in the watched financial metrics, ad- revs up competitors............. B12 all so-called short-haul ticket
though it still posted a $2.6 current period will be roughly justed earnings before inter- Please turn to page B2

Stephen King Stocks Sink on China, Fed Fears
Testifies Against
Publishing Merger Stocks fell as House Speaker By Will Horner, later with Taiwanese officials, Asian stocks sold off. In
Nancy Pelosi’s visit to Taiwan Rebecca Feng and in the first visit by a House China, the benchmark Shanghai
BY JAN WOLFE been around it for 50 years,” added to geopolitical tensions Alexander Osipovich speaker to the democratically Composite dropped 2.3%, while
he said. and Federal Reserve officials governed island since 1997. Bei- Hong Kong’s Hang Seng Index
WASHINGTON—Famed hor- indicated that their fight 4091.19. The technology-heavy jing, which claims Taiwan as fell 2.4%. The Chinese bench-
ror novelist Stephen King The bestselling author said against inflation was still going Nasdaq Composite slipped part of its territory, had marks recovered early Wednes-
took the witness stand in a less-established writers are strong. 20.22, or 0.2%, to 12348.76. warned Mrs. Pelosi not to go day. Mrs. Pelosi’s visit came
federal antitrust case on harmed by corporate consoli- through with the trip. Chinese against a fragile backdrop for
Tuesday, testifying that up- dation in the industry. As pub- The Dow Jones Industrial The California Democrat officials had threatened un- markets. The U.S. economy is
and-coming authors would be lishers combine, “it becomes Average dropped 402.23 points, landed in Taiwan on Tuesday specified countermeasures struggling with the twin
harmed if his longtime pub- tougher and tougher for writ- or 1.2%, to 32396.17. The S&P and was scheduled to meet should her visit proceed.
lisher Simon & Schuster is ac- ers to find money to live on,” 500 declined 27.44, or 0.7%, to Please turn to page B11
quired by larger rival Penguin he said.
Random House. Credit-Card Pitches Pick Up Their Pace
Mr. King’s testimony came
“I came here because I think on the second day of trial in BY ANNAMARIA ANDRIOTIS Mailed credit-card Card solicitations with significantly damage Ameri-
consolidation is bad for com- the Justice Department’s law- solicitations, first 0% interest-rate offers, cans’ finances.
petition,” Mr. King said in a suit challenging Penguin Ran- Inflation is at a four-decade half of each year first half of year*
Washington, D.C., courtroom. dom House’s planned purchase high, and a recession could be 2.5 billion Still, their optimism doesn’t
“That’s my understanding of of Simon & Schuster, a deal near. Credit-card issuers 0% purchases apply to all consumer-lending
the book business, and I’ve valued at more than $2 billion. aren’t worried: They are ag- 2.0 0% balance transfers categories. Capital One, for ex-
gressively courting new cus- ample, pulled back on auto-
Please turn to page B5 tomers and trying to increase 2.0 billion loan originations during the
credit-card balances. latest quarter, citing concerns
1.5 1.5 about competitive pressures
Marketing expenses are up on margins and the future of
INSIDE at big issuers, including Amer- 1.0 1.0 used-car valuations.
ican Express Co., Capital One
Financial Corp. and Discover 0.5 0.5 “We certainly feel the most
Financial Services. New bullish about the card busi-
credit-card account openings 0 0 ness,” Chief Executive Richard
are surging. Solicitations pro- 2013 ’15 ’17 ’19 ’21 2013 ’15 ’17 ’19 ’21 Fairbank said on a recent
moting zero-percent interest earnings call. “Net-net, we feel
rates on purchases and bal- *New card acquisitions Note: Data are estimates Source: Mintel Comperemedia good about the opportunities,
ance transfers, which fell after and we’re leaning into them.”
ENERGY PROPERTY the Federal Reserve began to plunge. spending that translates into
BP says a key measure Investors are buying raising interest rates in March, Bank executives say low un- more fee revenue. The credit-card business
are rising again. has defied expectations since
of profit rose to $8.5 more malls as employment and credit-card A slowing economy would the pandemic began. When un-
billion, above analysts’ consumers return to Big card issuers reported delinquencies that remain be- usually prompt banks to pull employment shot up in the
shopping in person. B6 record levels of credit-card low prepandemic levels give back on lending. The opposite spring of 2020, most card is-
projections. B3 spending for the second quar- them confidence in consumers’ is happening with credit-card suers expected that delinquen-
ter. At JPMorgan Chase & Co., ability to keep up with their debt—an unsecured form of cies also would rise. The oppo-
credit-card purchases totaled debts. And inflation isn’t such borrowing that is hard to re- site happened: Consumers—
$271.2 billion, the highest a bad thing for card compa- cover when a borrower stops stuck at home and flush with
amount dating back to at least nies, some executives say, paying. Banks, it seems, aren’t cash from government bene-
2004 and 33% above the since it can result in higher convinced a downturn would fits—paid down debt.
fourth quarter of 2019, before
the pandemic caused spending Total general-purpose and
store credit-card debt fell to

Please turn to page B5

B2 | Wednesday, August 3, 2022 **** .

INDEX TO BUSINESSES BUSINESS & FINANCE THE WALL STREET JOURNAL.

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

A Exxon Mobil.........A2,B12 Microsoft...................B12 BY CONNOR HART $800 million and $830 million, strong, as evidenced by 22% planning for the top job.
down from its previous fore- sales growth. But broader eco- The company, which turned
Advanced Micro Devices F O Oatly Group AB cut its cast of between $880 million nomic challenges are slowing
.....................................B4 sales outlook for the year, and $920 million. A stronger uptake for its products. its oat milk into a global phe-
Airbnb..........................B4 Fisker .......................... A5 Oatly............................B2 warning that macroeconomic dollar is responsible for $35 nomenon and went public last
Alibaba ........................ A8 Occidental Petroleum uncertainty is making it million of the lowered view. “The pace at which we have year, has started to lose its
Ally Financial..............A1 G ...................................B12 harder to switch consumers been able to convert new con- grasp on the nondairy milk
Alphabet....................B12 from regular milk to its plant- Oatly also reported a wider sumers from dairy to plant- market as of late.
Alto Pharmacy............A8 Grab.............................B1 P based options. loss for its second quarter, due based milk is taking longer
Amazon.com ............. B12 to higher input costs and than we had hoped for,” he For the quarter ended June
American Express.......B1 H Paramount Global.......B5 The Swedish maker of oat- other pressures. Sales in- said of the environment in its 30, Oatly posted a loss attrib-
AmerisourceBergen....A3 Pinterest ................... B11 based milk said on Tuesday creased in the most recent Europe, Middle East and Af- utable to shareholders of $72
Aurora Innovation.......B1 Honeywell International PitchBook....................A8 that challenges, including the quarter but came in below rica region. million, or 12 cents a share,
.....................................B6 war in Ukraine, continuing Wall Street expectations. widening from a loss of $59.06
B Q Covid-19 outbreaks and supply- Board members have been million, or 11 cents a share, in
I chain problems, are crimping Oatly’s American depositary concerned with Oatly’s stock the previous year.
Bank of America.........B5 Qualcomm ................... B4 the pace of its expansion and receipts sank 17% in Tuesday performance and manufactur-
Berkshire Grey............A8 Intel ............................. B4 recovery in certain markets. trading and are down 59% so ing troubles, The Wall Street Revenue rose to $178 mil-
Bertelsmann ............... B5 International R far this year. Journal reported in May. The lion from $146.2 million in the
BP ................................ B3 The company now expects company added new executives prior year. Analysts were ex-
Consolidated Airlines Rivian Automotive.....A5 full-year revenue of between Chief Executive Toni Peters- recently as part of succession pecting revenue of $183.9 mil-
C .....................................B2 Robinhood..............A1,A4 son said that demand remains lion, according to FactSet.

Capital One Financial.B1 J S
Cardinal Health...........A3
Caterpillar............B3,B11 JetBlue Airways..B1,B11 Signify Health...........B11
Cerebral.......................A8 Johnson & Johnson....A3 SoftBank.....................A1
Chevron................A2,B12 JPMorgan Chase ... A1,B1 Starbucks .................... B3
Cisco Systems.............B6 Just Eat Takeaway.com Synchrony Financial....B5
Citigroup......................B5 ...................................B12
Coupang ...................... A8 T
K
D-E Uber Technologies
KKR..............................B5 ...................... B1,B11,B12
Denbury.....................B12 Klarna Bank................A8 Unilever.......................B2
Deutsche Lufthansa...B2 Kraft Heinz ................. B2
DiDi Global..................B1 V
Discover Financial.......B1 L
DoorDash...................B12 Vodafone.....................A8
Equifax...................A1,B5 Lyft............................B12
W
M
Wells Fargo ........... A1,B5
Marriott InternationalB6 WeWork ...................... B6
Match .......................... B4
McKesson....................A3 X
Meta Platforms........B12
Xilinx ........................... B4

INDEX TO PEOPLE

C-H Hood, Amy................B12 O-U

Capuano, Tony.............B6 K-N Ogutu, Churchill........B11
Corbett, Charles........B11 Olsavsky, Brian.........B12
Fairbank, Richard........B1 Kassam, Altaf...........B11 Peterson, Toni.............B2
Gallego, Luis...............B2 Khosrowshahi, Dara Porat, Ruth ............... B12
Geraghty, Joanna........B1 ............................. B1,B12 Rogovic, David..........B11
Hayes, Robin...............B2 Kim, Bernard...............B4 Schultz, Howard ......... B3
Hochschild, Roger.......B5 Lewin, Robert ............. B5 Umpleby, Jim..............B3
Nyborg, Renate...........B4

JetBlue would take on to finance the KRISTEN NORMAN FOR THE WALL STREET JOURNAL
deal but years of expenses it
Posts Loss will likely incur to retrain Spirit While some shoppers are trading down as they face more financial pressure, in other areas spending has held up, companies note.
On Fuel Hit workers, integrate systems and
retrofit Spirit’s planes to match Budget Brands, Sizes Greet Shoppers
Continued from page B1 its own roomier layouts. Jet-
offset rising costs for fuel, la- Blue’s plan exposes the com- BY SAABIRA CHAUDHURI This year, Unilever began growth. The Kleenex maker is “skating
bor and other items. pany to “significant risks asso- selling a new Shea shampoo Many consumer-goods com- to where the puck is,” he
ciated with high integration Consumer-goods companies and conditioner—a virgin co- added.
Shares in JetBlue fell 6.4% to expenses” as well as increased girding for an economic down- conut oil-based product in a panies are banking on what is
$8.04 on Tuesday. labor costs and delays in realiz- turn are rolling out different 34-ounce bottle for $17.99— sometimes called “the lipstick Companies have also high-
ing the revenue benefits of the package sizes, launching new that will be sold only at effect”—the idea that during lighted the importance of con-
JetBlue also said demand merger, S&P analysts wrote. affordable products and push- Costco from early August. In recessions people buy them- tinuing to invest in marketing
soared during the summer—the ing lower priced items in some January, it launched a new selves affordable treats such and research and development
airline attracted a record num- JetBlue has for years been stores to woo increasingly brand called “Madam” for as lipstick or chocolate as they to convince consumers to keep
ber of customers during the trying to bring its costs down cautious shoppers. Walmart that includes hair- pull back on big-ticket items. paying higher prices for their
second quarter, and its revenue and said it is taking additional care products for under $10 a brands. Along these lines,
was 16% higher than in 2019, steps to cut costs over the “The threat of recession is bottle. “Our products are really an Danone SA on Wednesday
before the Covid-19 pandemic coming years, including start- starting to impact consumer affordable luxury in the U.S.,” said it had upgraded the for-
decimated appetite for travel. ing an enterprise-planning confidence and change spend- The company has also Lavanya Chandrashekar, fi- mula and packaging for its Ac-
team to identify efficiencies. It ing patterns and behaviors,” launched a collection of hair nance chief of Johnnie Walker tivia, Oikos and Silk yogurt
But the airline’s costs per is also retiring its fleet of older, Alan Jope, chief executive of stylers under its TRESemmé maker Diageo PLC, said ranges in North America.
seat flown a mile jumped less-efficient Embraer E190 air- Hellmann’s mayonnaise maker brand aimed at consumers
nearly 35% as fuel prices al- craft sooner than it had origi- Unilever PLC, said when re- who might otherwise visit a $10 Danone has a raft of prod-
most doubled from the summer nally planned. porting earnings last week. salon. Rolled out nationally in ucts and promotions ready
of 2019, offsetting the addi- January, the tools promise The top end for Unilever’s new should consumers begin to de-
tional revenue from strong de- Mr. Hayes expects JetBlue to Unilever has already benefits such as volume, hold Madam hair-care products mand lower-cost offerings,
mand and higher fares. post a profit for the third quar- launched bundled versions of and heat protection. said Shane Grant, who leads
ter, the airline’s first without a brands such as Degree deodor- Thursday. While the last finan- Danone’s North American op-
The cost pressures come as boost from government aid ant and Suave shampoo in the Other companies also are cial crisis resulted in some erations. Because getting new
JetBlue is preparing for the po- since the start of the pandemic. U.S. that are more affordable tinkering with their brands in downtrading, it didn’t take products on store shelves can
tentially challenging process of JetBlue plans to keep a lid on on a per-ounce basis, while anticipation of a downturn. long for sales of pricier alco- take months, the Paris-based
winning regulatory approval growth for the rest of the year, holding prices steady for small Kraft Heinz Co. is launching hol to recover, she said. So far, company has also prepared
for its plans to buy Spirit. Anti- with capacity expected to be sizes of some brands such as items such as $1 Lunchables Diageo isn’t seeing any signs marketing strategies, promo-
trust regulators are expected to flat to down 3% from 2019 fly- Dove soap. It also introduced and 10-packs of Kraft Mac & that consumers are trading tional offers and smaller pack-
cast a skeptical eye on the ing levels. new variants of personal-care Cheese to appeal to cost-con- down, she added. aging sizes aimed at consum-
Spirit merger, but JetBlue Chief brands—including premium scious consumers. PepsiCo Inc. ers on a budget, he said.
Executive Robin Hayes said JetBlue executives said ones such as SheaMoisture is stocking some stores with Kimberly-Clark Corp. CEO
Tuesday that he is confident Tuesday that said revenue is hair care—that it thinks will more low-price snacks such as Michael Hsu said last week Mr. Grant said the opposing
the deal can be completed by coming in strongly this quarter, appeal to consumers cutting Santitas tortilla chips. that while some shoppers forces of a purchasing power
the first half of 2024. and based on how early book- back on visiting salons. were trading down others squeeze but high employment
ings are tracking, the carrier is While some shoppers, espe- were “still looking for better and savings made it hard to
JetBlue has said that buying “cautiously optimistic” that “We are seeing a mix,” said cially from lower-income quality and premiumization.” discern what would happen.
Spirit will give it the scale it travel demand will hold up into Esi Eggleston Bracey, U.S. presi- households, are trading down Consumer behavior, he said,
needs to grow beyond its the fall. dent of Unilever. “We are see- as they face more financial “is certainly really hard to
stronghold in the Northeast ing premiumization continue pressure, in other areas predict.”
and challenge the four airlines Leisure bookings remain re- and demand increase in our spending has held up and
that dominate the industry in silient into September and Oc- more accessible price points.” companies say they are seeing —Sharon Terlep
the U.S. But if regulators allow tober, and the airline is expect- contributed to this article.
JetBlue’s acquisition of Spirit ing another increase in
to go forward, there are also corporate travel after Labor
likely to be additional cost con- Day as more workers return to
cerns. their offices.

S&P Global Ratings this Excluding one-time items
week gave JetBlue’s credit rat- such as costs associated with
ing a negative outlook, citing retiring those planes, JetBlue
not only the debt that JetBlue reported an adjusted loss of
$153 million, or 47 cents a
share—below the 11-cent-a-
share loss analysts had ex-
pected, according to FactSet.

BA Curbs CHRIS J. RATCLIFFE/BLOOMBERG NEWS headache for passengers in the Luis Gallego, the chief exec- BIDDING NOTICE SEINFRA
Traffic at coming months. BA’s European utive of BA’s parent company, INTERNATIONAL BIDDING
Heathrow BA operates more flights from Heathrow than any other airline. operation makes up about 18%
of all flights to U.K. and Euro- International Consolidated NO 001/2022
Continued from page B1 100,000 each day through limit ticket sales and has pean cities departing from Lon- Airlines Group SA, on Friday
lost to the pandemic. Sept. 11, representing about shifted one of its Heathrow don airports, according to avia- told analysts that he hoped The State of Minas Gerais
4,000 fewer daily seats than flights to neighboring London tion data specialist Cirium. disruption would ease by the through the Secretariat for
Instead, faced with a stron- had been scheduled. The air- Gatwick Airport in the south end of the year as more staff Infrastructure and Mobility
ger-than-expected surge in de- port asked airlines to meet of the city. The airline’s decision could are hired to ease bottlenecks. announces changes in the
mand, the industry is contend- the capacity restriction by also take a further financial bidding notice, contract
ing with staffing shortages cutting flights, shifting some BA operates more flights toll on the company. Domestic Amsterdam Schiphol Air- and annexes of SEINFRA
that have led to canceled routes to other airports and from Heathrow than any other and European trips make up port, which had previously put INTERNATIONAL BIDDING
flights, long lines at security halting ticket sales where airline. So far the airline has the vast majority of BA’s net- in place limits on departing nO 001/2022, which has as its
and check-in counters and reg- necessary. publicly been supportive of work, accounting for about passengers similar to those at purpose contracting a public
ular delays to departures. the airport and said it would 73% of all flights in August, Heathrow, said Tuesday that it private partnership (PPP), in
The move has led to tension work with the hub to limit the according to Cirium. Like most would extend the measure the SPONSORED CONCESSION
The travel disruption hasn’t with some airlines, most impact on passengers. network carriers, BA uses its through October as staffing modality, for the preparation
only hit potential revenues, but prominently with Emirates, short-haul network to ferry shortages, particularly among of projects, construction,
is also costing airlines that are the world’s biggest airline by Heathrow Airport said passengers onto more profit- security staff, continue to operation and maintenance
required to pay out compensa- international capacity. The Tuesday that it had introduced able long-haul flights to loca- weigh on its operations. of the METROPOLITAN RING
tion and some expenses to Dubai-based carrier initially the cap on departing numbers tions outside of Europe, in- ROAD OF BELO HORIZONTE.
some disrupted travelers. refused to comply with Heath- to “provide better, more reli- cluding to the U.S., out of Schiphol Airport, a major The bidding documents (bidding
row’s demands and said it able journeys this summer” London Heathrow. And the hub for European travel, will notice, contract and annexes)
BA has already pre-emp- would continue to operate all and that it was pleased to see halt also offers a window of restrict daily departing pas- updated under the terms of
tively shed thousands of of its daily flights into London. the action from BA. opportunity for low-cost rivals senger numbers to 67,500 in this NOTICE, are available for
flights to try to alleviate some The airline later agreed to who mostly operate at other September, which it said consultation on the website
of the pressures from staffing Still, BA’s move to restrict London airports. shouldn’t lead to any new can- www.infraestrutura.mg.gov.br.
shortages across its network. sales will likely be a further cellations. In October, the to- Bids and other documents
The airline said it had now de- BA’s move to halt and re- tal will be capped at 69,500. necessary for participation
cided to halt some ticket sales strict ticket sales isn’t unprece- During that two-week autumn in the BIDDING PROCESS will
in response to restrictions on dented this summer. Both Ger- break, the airport said it ex- be received between 9:00 am
passenger numbers imposed many’s Deutsche Lufthansa AG pected there to be an average and 12:00 pm on August 10,
by Heathrow and “the ongoing and KLM Royal Dutch Airlines of 3,500 too many local de- 2022 and the opening of the
challenges facing the entire of the Netherlands have taken parting passengers each day bids will be held in a Public
aviation industry.” similar action in recent weeks who would be affected. Session beginning on August 12,
as they navigate widespread 2022, at 2:00 p.m., both at the
London Heathrow last disruption. The new caps are lower headquarters of B3 S.A., at Rua
month restricted the total than the 72,500 daily depar- XV de Novembro, 275, Centro,
number of departing passen- While many flights continue tures Schiphol had set for Au- São Paulo/SP, BR, maintained
gers leaving its terminals to to operate without problems, gust. That is because passen- given that the changes will
the big question for industry gers traveling in autumn not impact the preparation
executives and passengers alike typically bring more clothing, of proposals. Fernando S.
is whether the recent disrup- hiking boots and vests as the Marcato - Secretary of State for
tion to travel will last beyond weather cools, leading to lon- Infrastructure and Mobility.
the busy summer season. ger times moving through se-
curity points, it said.

THE WALL STREET JOURNAL. ** .

BUSINESS NEWS Wednesday, August 3, 2022 | B3

Key Earnings Metric Increases at BP

BY JENNY STRASBURG BP’s results come after HENRY NICHOLLS/REUTERS been boosting returns to distribute cash to investors
Exxon Mobil Corp., Chevron shareholders, largely favoring while reducing debt.
LONDON—BP PLC was the Corp. and Shell PLC, the three The company, awash in cash, plans to boost returns to shareholders. increases in dividends and
latest major oil company to largest Western oil companies, share buybacks over signifi- For the second quarter, the
cash in on the highest energy last week banked a record $46 profits while consumers are by them—remain small. cantly increasing spending on company said its strong oil
prices in more than a decade, billion in collective profits in shouldering the pain of higher Environmental campaigning oil-and-gas production. Their trading performance had been
reporting strong second-quar- the second quarter. Histori- prices for heating their homes conservative spending reflects partially offset by lower natu-
ter profit helped by higher cally high margins on fuel re- or filling up at gas stations. group Friends of the Earth, a in part predictions by many ral-gas profits, hurt by an ex-
margins on fuel production fining are following cutbacks Oil-company executives have frequent critic of oil-company economists of a recession that tended outage at the Freeport
and oil trading. in global fuel-making capacity said that soaring profits from profits and expanded fossil-fuel would hit fuel demand, with liquefied natural-gas shipping
during Covid-19 lockdowns, traditional businesses are production, said BP’s results an anticipated slowdown al- facility in Texas. That outage
London-based BP said when travel and manufactur- helping them invest in lower- Tuesday show that government ready showing in futures is causing a “significant re-
Tuesday its underlying re- ing slowed, sapping demand. carbon projects as they transi- officials need to go further in prices for oil and gasoline. duction” in LNG cargoes that
placement-cost profit, a met- tion to renewable energy, but raising taxes on oil-and-gas BP said it is receiving from
ric similar to net income that The major oil companies those parts of their busi- companies to help consumers Tuesday’s results show that the site.
U.S. oil companies report, was have used part of those big nesses—and profits generated with soaring living costs. BP has emerged on solid
$8.5 billion. That compared profits to reward sharehold- ground after reporting a loss Europe’s race to fill its nat-
with a $6.8 billion average ers. For the second quarter, BP The big oil companies have for the first quarter of the ural-gas storage supplies
projection of 28 analysts com- increased its dividend by 10% year tied to the company’s de- ahead of winter has led com-
piled by BP and $2.8 billion in and said it is on track for cision to exit its Russia hold- panies including Shell and BP
the year-ago period. planned annual dividend in- ings. BP took a $25.5 billion to cut back on their own gas
creases of about 4% through pretax accounting charge re- usage. Shell Chief Executive
The world’s biggest energy 2025. The company said it lated to the exit, including its Ben van Beurden said last
companies are awash with cash would buy back another $3.5 stake in government-con- week that Shell has reduced
as economies have roared back billion in shares by third-quar- trolled oil producer Rosneft. by 40% or more its natural-gas
from the pandemic and demand ter results, on top of $3.9 bil- That charge, the biggest hit input to refineries and chemi-
for natural gas and fuel out- lion in buybacks during the tallied by companies pulling cal plants in the Netherlands
strips supplies. Russia’s inva- first half of this year. back from Russia, dragged BP and Germany.
sion of Ukraine has added to to a $20.4 billion headline loss
the energy shortage, particu- Shares in BP closed up 2.8% for the first quarter. But the BP CEO Bernard Looney
larly in Europe, where countries in London. company said at the time that said in an interview Tuesday
are quickly trying to replace de- the loss didn’t change its that BP has reduced its gas us-
clining gas flows delivered via Major oil companies have strategy or curtail its plans to age at European refineries by
pipelines from Russia. faced political heat in Europe 50% in recent months, so far
and the U.S. over bumper without hurting production.

Starbucks Says Labor
Costs, Inflation Hit Profit

BY HEATHER HADDON to $85.11 in after-hours trading. Starbucks’ global comparable DAVID PAUL MORRIS/BLOOMBERG NEWS
Starbucks’s results come store sales, change from a
Starbucks Corp. said higher year earlier
spending on labor and other in- about four months after How-
flationary pressures weighed ard Schultz returned to the 80%
on profit in its most recent chief-executive role for the
quarter but added that U.S. third time. Mr. Schultz said 60
customer demand is strong. Tuesday that he has spent the
previous months identifying 40
The Seattle-based coffee gi- weaknesses in the business,
ant said increased employee some of which resulted from 20
wages, training and costs for the pandemic. Consumer de-
ingredients hurt its store-level mand has overwhelmed many 0
profit. Higher prices partially baristas, as have anxieties
offset the growing costs, the about their physical, mental –20 The coffee chain raised wages for nonunion U.S. baristas to at least $15 an hour or a bump of 3%.
company said. Starbucks said and financial health, Mr.
prices are around 5% higher Schultz said. –40 ’20 ’21 ’22 covered from the pandemic in with employees set to make at increases to unionized baristas.
from a year ago. FY2019 business districts. least $15 an hour or receive a A Starbucks spokesman said:
“The truth is, at times, I was bump of 3%, the company said.
Starbucks’s global same- overwhelmed by what I heard,” Note: Fiscal quarter ended July 3 Mr. Schultz said the com- “The law is clear: once a store
store sales for the three Mr. Schultz told investors. Source: the company pany has navigated economic The Starbucks Workers unionizes, no changes to bene-
months ended July 3 rose 3% downturns in the past, and he United union organizing café fits are allowed without good
from a year earlier. U.S. same- Mr. Schultz said that about ducing their spending or buy- expects the company to do the baristas has criticized the com- faith collective bargaining.”
store sales increased 9%, while 75% of U.S. company store sales ing less expensive items, as same now. “We have to earn it pany for initially limiting the
those in the chain’s China mar- now come from cold beverages, other chains have reported in everyday,” he said. wage increases to nonunion The National Labor Relations
ket plunged 44% amid the many of which customers order recent weeks. stores. The union said it is Board said on Tuesday that it
country’s renewed Covid-19 re- with added flavors and colors. Starbucks, which has been waiving its right to bargain had certified unions at 184 of
lated shutdowns and other re- Such customization is helping Starbucks said that its trying to attract and keep U.S. over the new wages and asked Starbucks’s 9,000 U.S. stores
strictions during the period, Starbucks compete, as is the morning sales are improving, workers, said on Monday that it the company to grant the pay and recorded failed efforts to
the company said. company’s loyalty program. Mr. but its business hasn’t fully re- raised wages for U.S. baristas, unionize at 29 locations.
Schultz said the company
Starbucks shares rose 1.7% hasn’t noticed customers re-

In Memoriam For more information:
wsj.com/inmemoriam

DAVID PAUL MORRIS/BLOOMBERG NEWS Robert Malcolm Smelick career with Kidder, Peabody & Co. in New board member and trustee, that his vision
York. He moved to San Francisco in 1973 for Ballet Sun Valley - of Sun Valley, Idaho
The equipment maker expects sales in the second half to benefit from increased public-works spending. July 12, 2022 to lead the firm’s West Coast investment - was born. With Robert at the helm as its
banking group until 1979 when he went on Founder and Chairman, Ballet Sun Valley
Price Rises Boost Caterpillar KETCHUM, IDAHO - Robert Malcolm to become Managing Director of First Bos- was able to successfully bring annual
Smelick of Ketchum, Idaho and former long ton Corporation and took over leadership world class ballet productions to the Sun
BY BOB TITA spending weighing on other relocating their headquarters. term resident of Sausalito, California was a of the company’s West Coast investment Valley Pavilion in 2012 and then annually
industries. The equipment Caterpillar said the company force of life, man of great compassion, and banking branch. He then formed the 2017-2022 (virtual 2020 performance).
AND CONNOR HART maker said higher prices for wasn’t getting economic or tax loving husband, father, and grandfather Sterling Payot Company in 1989. With
equipment contributed $1.1 incentives to relocate to Texas. who passed away on July 12, 2022 at the Robert as Founder and Managing Partner, His professional successes were
Caterpillar Inc. said that billion to an 11% increase in age of 80. He was preceded in death by Sterling Payot provided corporate finance achieved in parallel to his having a loving
higher prices on its equip- second-quarter sales from the Sales of its construction his parents - Valentine and Mary Helen advice and made early stage investments family and fulfilling personal life. Robert
ment offset weakening de- same period a year earlier. equipment overall rose 7% Smelick - and his brother, Don Ross. in companies that spanned the Telecom, met Gail Sterling in 1966 in Scottsdale,
mand from some foreign mar- during the quarter, despite a emerging Internet, and Food and Beverage Arizona. He was on his way to the Harvard
kets and rising expenses for Company shares fell 5.8%. 17% drop in sales in the Asia- Born in Phoenix, Arizona in 1942 to industries, among others. In 2001, Sterling Business School at the time and Gail was
materials and transportation. Caterpillar said its manu- Pacific region and a 7% de- Valentine and Mary Helen Smelick, Robert Payot closed its doors and he went on to headed East to finish her undergraduate
facturing costs rose by $966 cline in Europe, the Middle graduated from Central High School in become the founder and CEO of Headland studies in Boston, where they fell in love.
The company reported a million from a year earlier. East and Africa that the com- 1960 where he was an athlete, student Ventures LP through which he continued They were married in Guadalajara, Mexico
20% increase in quarterly The company’s operating mar- pany attributed to unfavorable body president, and beloved friend to his early stage investment activities. Rob- in 1979 and made their home in Sausalito,
equipment sales growth in gin was down slightly in the currency-exchange rates. many. ert was always a principled investor - sup- California, where they raised their family
North America—its largest period, to 13.6% from 13.9% a Lower construction-equip- porting those companies whose missions and lived for 40 years. Robert and Gail
market—that helped to coun- year ago. The company said it ment sales from Asia stemmed Robert went on to attend Stanford and leadership he truly believed in. have three children, Christopher (MD
ter lower sales in Europe and continues to experience short- from weaker demand for large University where he obtained his Bache- trained in Neurology), Alexandra (Doctor of
falling demand for construc- ages of components that held excavators in China. Industry lor’s degree in Economics in 1964. While Robert often reflected on the Chinese Medicine and Acupuncturist) and
tion machinery in Asia. down machinery production analysts have said lockdowns at Stanford, Robert was a member of the meaningful relationships he developed Gillian (MD trained in Women’s Health).
during the quarter. Market to control the spread of Beta Theta Pi fraternity, through which he with business leaders - his mentors, He was an extremely supportive and loving
The company said Tuesday prices for metals, freight and Covid-19 have damped de- made some of his dearest friends. He also colleagues and friends - over his 60 years father who was very proud of his children’s
it expects sales in the second other expenses have been fall- mand in China. spent a memorable time abroad with the as an investment banker, venture investor achievements and enjoyed connecting
half of 2022 to benefit from ing lately, but the company Stanford in Italy program, which he proud- and engaged board member. These with them about their respective fields of
elevated public-works spend- said the reductions haven’t yet Sales of mining equipment ly supported later in life. After graduating relationships inspired him to document medicine. Robert was also a mischie-
ing in the U.S. and ongoing lowered Caterpillar’s costs. rose 16% in the quarter, with from Stanford, Robert traveled to Australia the characteristics of leaders that result vous and fun loving Grandfather to his 5
higher demand for mining “We’re still dealing with an particularly strong demand where he worked for the National Cash in the successful and innovative growth grandchildren.
equipment. inflationary environment,” coming from North America Register Company and, because of his of companies, which he sought to capture
said Mr. Umpleby. “It takes a and Asia. The company said unique knowledge as a Computer Systems and share with thousands of students Robert was an innately curious man
“We remain encouraged by while for those kinds of higher production of electric Analyst, was a highly sought after re- over his 20 year career as a Professor in with a highly analytical mind and unique
the strong demand in our mar- changes to work their way vehicles has accelerated de- source during an unprecedented period of Leadership Education. Robert founded and ability to connect with others. He identified
kets,” Chief Executive Jim Um- through the supply chain.” mand for mined minerals used technological change. He remembered his became CEO of the McBryde Institute in challenges and opportunities in all facets
pleby said during a call with In June, Caterpillar said it in electric components. time in Australia with great fondness and 2002 with the intent of bringing authentic of his life - as an investor, board member,
analysts. would move its headquarters made lasting relationships with Australian voices of business leaders to the Graduate businessman, real estate developer, ballet
to Irving, Texas, from Deer- For the three months friends who became like family to Robert, Business School classroom. Robert was producer, professor and father - in a way
Caterpillar’s quarterly re- field, Ill., joining some other ended June 30, Caterpillar re- his wife, and their children. He returned awarded numerous faculty awards for his that uniquely positioned him to support
sults largely mirrored other major U.S. companies weigh- ported a profit of $1.67 bil- from Australia in 1966 to attend the Har- course titled, “Leadership and Cultures of and problem solve for the benefit of the
U.S. manufacturers that have ing hiring and other costs in lion, or $3.13 a share, up from vard Business School, where he graduated Innovation,” which he taught at the Uni- people, communities and organizations
aggressively raised prices $1.41 billion, or $2.56 a share, with his MBA in 1968. versity of Virginia (UVA) Darden School of around him. He branded himself with
while demand for their prod- a year earlier. Business. Teaching at UVA was one of his signature tortoise shell glasses that failed
ucts remains largely unaf- Following his graduation from Harvard, greatest joys in life. He was energized by to contain his bushy eyebrows, a sweater
fected by falling consumer Robert began his investment banking his students, enjoyed sharing his experien- loosely draped over his shoulders, an infec-
tial wisdom as a mentor and got a kick out tious smile and of course, his Kettle One
of investing in some of his students’ early “martini” in hand. Repeatedly described
ventures as they embarked on their own as a “force of life” and “visionary,” he will
business careers. Robert was a visiting be sorely missed and forever remembered
lecturer at a number of other business for the ways in which he applied his many
schools around the country including the talents for good and positive change in
University of Washington, Duke University, the world.
the University of North Carolina at Chapel
Hill, the University of California Davis and He is survived by his wife, Gail Smelick;
Harvard University. his three children, Christopher Smelick,
Alexandra McBryde and Gillian DiLallo; his
True to his “renaissance man” character, daughter-in-law, Rebekah Wilson; his two
Robert will be remembered not only for his sons-in-law, Marcus DiLallo and Jeremiah
contributions as an investor, businessman, Jernigan; his five grandchildren Alexander
and professor - but also as a true advocate Smelick, Jordan Smelick, Grady DiLallo,
for and supporter of the arts. Most George DiLallo and Daphne DiLallo; his
notable was Robert’s love for the ballet, brother- and sister-in-law Walter and Terry
where he leaves an indelible legacy. It was Sterling; and his many nieces, nephews
through his work with the San Francisco and cousins.
Ballet, where he served as a longtime
In lieu of flowers, please consider a
donation to Ballet Sun Valley.

IN MEMORIAM

EVERY WEDNESDAY AND SATURDAY
To learn more, visit WSJ.com/InMemoriam

© 2022 Dow Jones & Company, Inc. All Rights Reserved.

.

B4 | Wednesday, August 3, 2022 **** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Sales Surge for Chip Maker AMD Airbnb’squarterlyrevenue
$2.5 billion 2Q 2022
$2.1B

Gain of 70% beats XING YUN/COSTFOTO/BARCROFT MEDIA/GETTY IMAGES the market. 2.0
As demand surges, AMD is
expectations, but The company, which is benefiting from its data-center business, surpassed rival Intel in market value. 1.5
asking its manufacturing part-
shares fall on cautious ing pressure on consumer week. AMD’s new generations of ners for more chip-making ca- 1.0
spending from the current AMD last week overtook chips for PCs and servers that pacity, Ms. Su said in an inter-
outlook for this quarter economic slowdown. populate massive data centers view. Unlike Intel, AMD 0.5
Intel in market cap after its have been strong competitors designs but doesn’t manufac-
BY ASA FITCH AMD shares retreated more rival posted disappointing re- to Intel’s offerings, allowing ture its own chips, sending 0
than 4% in after-hours trading sults and said it had suffered the company to take advan- orders to contract chip mak-
Advanced Micro Devices on the results. setbacks in introducing its tage of its rival’s missteps. ers to build them. 2019 ’20 ’21 ’22
Inc. reported a sharp increase newest chips for the booming AMD’s market share rose to
in quarterly sales, driven by Other chip makers also server market. almost 28% in the first quar- Those contract chip makers Source: the company
strength in its data-center have struck a note of caution. ter from about 21% the year have been stretched by out-
business where rival Intel Qualcomm Inc., a major sup- AMD said its sales for that before, according to Mercury size demand during the global Airbnb
Corp. has been stumbling, but plier of chips for mobile segment advanced 83% to $1.5 Research figures. Intel has al- chip shortage over the past
issued a muted outlook for phones, cut its smartphone billion. Intel had reported a most all of the remainder of two years. Rebounds
the current period. shipment forecast and gave a 16% decline in its comparable
muted sales outlook last business unit. “One of our highest priori- On Strong
AMD on Tuesday said sales ties is to build capacity for
reached $6.6 billion in its sec- where we think our market Rentals
ond quarter, up by 70% from a share can go,” she said, add-
year prior and ahead of Wall ing that constraints on capac- BY PREETIKA RANA
Street expectations. Profit fell ity were easing in the second
37% to $447 million, reflect- half of this year and into next Airbnb Inc. swung to a
ing adjustments linked to its year. profit in the second quarter on
acquisition of Xilinx Inc. the back of strong revenue, as
While demand for servers people continued to book sub-
The company also issued a has been healthy, several chip urban rentals although hosts
subdued outlook for the cur- companies this year have are raising prices.
rent quarter, projecting been grappling with a PC
roughly $6.7 billion in sales. market that slumped the most It projects record revenue in
That figure fell short of Wall in years during the second the current period based on
Street projections for sales of quarter after booming during strong summer travel.
$6.84 billion. Unlike Intel, the pandemic.
which cut its full-year outlook The San Francisco company
last week, AMD maintained its Despite the slowdown in posted $2.1 billion in revenue
full-year sales outlook despite key markets, the semiconduc- in the three months through
a weaker overall PC market. tor industry is still in the June, up 58% from a year ear-
midst of a protracted short- lier and in line with the aver-
Chief Executive Lisa Su age. The shortage has im- age estimate of analysts polled
also said sales of graphics pacted customers in a range by FactSet.
chips prized by PC gamers fell of industries, from the makers
in the second quarter, reflect- of cars to medical devices, Revenue was helped by cus-
among other products. tomers booking a record num-
ber of nights during the quar-
Tinder CEO Nyborg to Leave Date Service ter, showing a willingness to
travel even as high inflation
BY DENNY JACOB Match Group said revenue Tinder was launched about ited improvement from that of its Hyperconnect team. caused consumers to cut back
grew by 12% to $794.5 million 10 years ago and merged with level in the following quarter. Match last year acquired South elsewhere.
Match Group Inc.’s new in the quarter, lagging behind Match in 2017. The company expects margins Korean social-media company
chief executive has shaken up Wall Street’s forecasts. The in the fourth quarter to im- Hyperconnect for $1.73 billion That fueled a profit in the
the leadership of the com- company reported a net loss of Match said it is still dealing prove modestly. in its largest acquisition at the three months, the first time
pany’s Tinder dating platform, $31.9 million, far from analysts’ with disruptions in user behav- time. The Seoul-based business Airbnb made money in the sec-
citing product missteps as he expectation of a $156.5 million ior brought on by the pan- Shares fell 22% to $59.70 in offered video apps that focus ond quarter since it went pub-
seeks to boost growth for the profit, according to FactSet. demic that crimped in-person after-hours trading Tuesday. on helping people interact one lic in 2020. Average daily rates
online dating company. dating. “While people have The stock is down 42% this on one and with new commu- climbed 1% from a year earlier
Mr. Kim, who became generally moved past lock- year amid broader concerns nities. But the pandemic but rose 40% from the corre-
“Tinder’s current revenue Match’s CEO in May, said Tin- downs and entered a more nor- about inflation and fears of a slowed its integration into sponding 2019 period.
growth expectations for the der CEO Renate Nyborg was mal way of life, their willing- recession. Match, the company said Tues-
second half of the year are be- leaving the company. He said ness to try online dating day. Airbnb reported a profit of
low our original expectations the company would be search- products for the first time The company also joined the $379 million, topping analysts’
as a result of disappointing ex- ing for a new boss for the unit hasn’t yet returned to prepan- growing ranks for tech compa- Match said it was now tell- projections for a profit of $295
ecution on several optimiza- and signaled the company demic levels,” Mr. Kim said. nies to curtail hiring plans and ing the unit to move slowly in million and compared with a
tions and new product initia- would spend time reviewing look for other belt tightening. investing in the metaverse, a loss a year earlier.
tives,” Bernard Kim said as the plans for Tinder, with the goal The Dallas-based company Match said it had cut back on more interactive vision of the
company posted quarterly re- of driving growth starting next expects muted revenue growth marketing spending. online realm some view as the Airbnb’s gross bookings—
sults that missed expectations. year. in the second half , with third- future of the internet. the value of bookings made on
quarter revenue flat and lim- The company also said it is its platform—and the number
hitting pause on some projects of nights and what the comp-
pany calls experiences booked
dog•ged Uber’s pressures, the company ended both grew by more than 25%,
Revenue the second quarter with a re- though they came in below an-
/'dôg d/ Doubles cord number of drivers and alysts’ forecasts.
food-delivery couriers, Mr.
adjective Continued from page B1 Khosrowshahi added. Airbnb said early bookings
Despite spending my early life in a shelter, there’s no dog more sider to be outside a show strong demand for the
determined than me. Thanks to the National Disaster Search Dog company’s core operations. Uber said that in July, wait summer. The July 4 holiday
Foundation, if you’re ever trapped under rubble after a disaster, times for riders and “surge generated the most revenue in
I’ll find you. That’s my job, and what I was born to do. You’ll never find Uber’s ride-hailing bookings trips,” which kick into effect a single day, and the company
a dog more dogged. drove much of the top-line when drivers are in short sup- said it was starting to see
growth in the most recent ply, were nearly at their low- signs of travel patterns return-
THE NATIONAL DISASTER SEARCH DOG FOUNDATION quarter, recording a 55% jump, est levels in a year. ing to prepandemic levels.
Strengthening disaster response in America by rescuing dogs and partnering them and underpinned the com-
with first responders to save lives. Be Part of the Search™ today. Call (888) 4K9-HERO, pany’s stronger-than-expected Neither Uber nor Lyft have The company expects reve-
visit SearchDogFoundation.org, or write to SDF, 6800 Wheeler Canyon Road, operating income. said how many more ride- nue in the three months
Santa Paula, CA 93060. share drivers they need to through September to range
The company’s delivery meet demand. from $2.78 billion to $2.88 bil-
Victor unit, Uber Eats, is expanding lion, higher than analysts’ av-
on top of record-breaking Last week, Uber rolled out erage estimate of $2.77 billion.
Active Search Dog business during the pandemic, new features to sweeten the
Rescued from Redding, CA. but growth has cooled in re- deal for ride-share drivers. The third quarter is typi-
Photographed by Shaina Fishman cent quarters. Uber Eats’ One feature allows drivers to cally the most lucrative be-
at SDF’s National Training Center. bookings grew by 7% in the see earnings upfront, while cause of summer vacations and
latest quarter, missing ana- another feature allows them to Airbnb has turned a profit in
lysts’ projections, weighed choose from a list of potential that period for several years.
down by a deceleration over- trips as opposed to sticking Like many Silicon Valley up-
seas. The unit’s bookings al- with the ride Uber matches starts, Airbnb hasn’t posted an
most doubled a year earlier. them to. annual profit since its found-
ing in 2008. In May, the com-
Still, Uber is making more Mr. Khosrowshahi said pany said it expects to post its
money from its deliveries than back-to-school demand should first full-year profit this year.
before because of higher vol- be strong, adding to the need
ume—driven by its expansion for more drivers. “We are go- The pandemic reshaped
into household essentials and ing to continue being in the Airbnb’s business. Local travel
groceries—and lower delivery marketplace to make sure that became its stronghold and
costs by combining those drivers come on to the plat- people started using the plat-
items with food, the company form,” he said, signaling opti- form for longer stays. Stays of
said. mism also for many people 28 days or more made up 19%
wanting to grab rides in the of bookings in the second
For a year, Uber and its last three months of the year. quarter, flat from a year ear-
ride-share rival Lyft Inc. have lier but above prepandemic
contended with another chal- High gasoline prices also levels. Those stays accounted
lenge: not enough drivers to have weighed on drivers. On for 21% of bookings in the pre-
meet the growing demand for Tuesday, Uber said 13.3 million ceding quarter.
their rides. The labor shortage trips took place in electric ve-
pushed up prices for rides, hicles last quarter, quadru- Many large employers have
and fares have continued to pling from a year earlier said they would allow their
remain elevated. though still a sliver of the 1.87 employees to live more no-
billion trips over the quarter. madic lives even after things
With more people becoming return to normal. Airbnb is
Uber drivers amid inflationary Watch a Video betting it can gain from that
trend.
Scan this code
Earlier this year, the com-
for a video on pany tried to lead the way by
allowing its employees to work
the struggles at from just about anywhere, in-
cluding overseas, without a
ride-share pay cut. It said 45% of book-
ings over the second quarter
companies. were for stays of at least seven
days.
DAVID SWANSON/REUTERS
Airbnb’s home-rental busi-
The company’s ride-hailing bookings drove much of the top-line ness was initially crushed by
growth in the most recent quarter the health crisis. The company
paused noncore projects, cut a
quarter of staff and slashed
the firm’s hefty marketing
budget. But the growing accep-
tance of remote work and the
need to travel places beyond
crowded city centers eventu-
ally made the company a pan-
demic winner.

THE WALL STREET JOURNAL. .

Wednesday, August 3, 2022 | B5

BUSINESS & FINANCE

KKR Swings to Loss, Dragged

Down by Stock-Market Slump DAN STEINBERG/INVISION FOR AMERICAN EXPRESS/ASSOCIATED PRESS

The firm invested in $461.2 million, or 52 cents per money around strategies such shifted compared to six months American Express is seeing record sign-ups for some of its cards.
infrastructure and real adjusted share, from $470.1 as credit, infrastructure and ago, we are not overly con-
estate as buffers million, or 53 cents per ad- real assets. cerned with near-term volatil- Credit-Card to a quarterly record of $1 bil-
against rising inflation justed share, a year earlier, the ity or the business cycle,” Mr. lion, mostly due to its U.S.
firm said. KKR’s private-equity hold- Nuttall said. Pitches Pick credit cards. Discover’s mar-
BY MARIA ARMENTAL ings, which can reflect the ups keting expenses increased
KKR’s asset management and downs in public equities, “Our confidence level is Up the Pace 45%, the company said, also
KKR & Co. reported a sec- investment activities produced lost 7% during the quarter, high, and we find it is exactly largely due to efforts to in-
ond-quarter loss as revenue a nearly $1.68 billion loss in while the firm’s leveraged times like this when we make Continued from page B1 crease credit-card sign-ups.
plunged and market volatility the second quarter compared credit holdings lost 6% during some of our best investments $748 billion in April 2021 from
drove down returns on most with a $3.46 billion gain in the the period. By comparison, the and strategic moves,” he added. $913 billion in January 2020 A jump in new credit-card
of its holdings, including pri- year-earlier period. S&P 500 stock index fell more but has risen since, according accounts could spur an increase
vate-equity assets. than 16% for the quarter and Assets under management to credit-reporting firm Equi- in balances. Citigroup Inc. and
Despite market volatility, posted its worst first half in in the firm’s real assets seg- fax Inc. It remains among the Wells Fargo & Co., which has
The New York firm posted KKR raised $25 billion of new ment rose 21% during the few mainstream forms of con- been revamping its credit-card
a net loss of $827.9 million, or capital in the second quarter, $491B quarter to $113.79 billion, in- sumer debt where the aggre- business, booked 1.07 million
$1.22 a share, compared with helping to drive assets under cluding $11 billion collected gate balances, at $855 billion and 524,000 new general-pur-
net earnings of $1.28 billion, management to $491 billion, The firm’s total assets under through fundraising and $13 in May, haven’t yet returned to pose credit cards in the second
or $2.05 a share, in the same up 14% from a year earlier. management billion added by the acquisi- prepandemic norms. quarter, up 18% and 62%, re-
quarter a year earlier. Reve- tion of KJR Management in spectively, from a year earlier.
nue dropped to $330.1 million The firm said uncalled com- more than five decades. Japan, reflecting KKR’s in- For most major issuers, bal- Bank of America Corp. added
from $3.14 billion over the mitments from investors, or The firm’s private-equity creasing focus on infrastruc- ances still aren’t back to where 1.07 million, up 15%. Amex said
same period. “dry powder” available for in- ture and real estate. they were at the end of 2019. In that new U.S. consumer-card
vestment, rose to $115 billion assets under management the second quarter, JPMorgan sign-ups for its premium Plati-
After-tax distributable at the end of June from $112 slipped 2% during the quarter The firm has said the seg- balances increased 17% from a num card, Gold card and Delta
earnings, or cash that can be billion a year earlier. to $171.54 billion at the end of ment, which includes infra- year prior to $165.5 billion, still Air Lines Inc. co-branded cards
returned to shareholders, fell June, despite $8 billion in structure and real estate, of- shy of the $169 billion in bal- reached record highs in the
to $839.8 million, or about 95 The $115 billion includes added capital from fundrais- fers better protection in the ances it had at the end of 2019. second quarter.
cents per adjusted share. Ana- about $13 billion in core pri- ing. But the total was up 7.2% current economic climate with Capital One’s U.S. credit-card
lysts expected $842.3 million, vate equity, Chief Financial Of- from June 2021. KKR said it rising inflation. balances were up 21% in the Banks cite high payment
or 95 cents per adjusted share, ficer Robert Lewin said during invested $5.7 billion from the second quarter from a year rates on credit cards as fur-
according to FactSet data. A an earnings call with analysts strategy during the quarter KKR’s credit and liquid strat- prior to $115 billion but still ther evidence that their cus-
year earlier, KKR reported Tuesday. that just ended. egies ended June with $205.36 down from $119 billion at the tomers are in good financial
$925.6 million, or $1.05 per billion of assets under manage- end of 2019. shape. Payment rates, defined
adjusted share, in distribut- “While investors maybe “While there’s no doubt the ment, down 3% from the end of by many issuers as the share
able after-tax earnings. take a little bit of time to get operating environment has March but up 5% from June Card issuers are pouring of their overall balances that
their bearings on PE in partic- 2021. The firm brought in about more money into marketing consumers pay down, remain
Fee-related earnings also ular, that’s not really impact- is completed, Penguin Random $6 billion of fresh capital for expenses such as credit-card elevated at several banks, in-
declined, falling about 2% to ing much [of] what we’re see- House—the result of a 2013 the strategy during the just- mailers, advertising and extra cluding Synchrony Financial
ing in terms of PE fundraise,” merger and already the world’s ended quarter. rewards, betting that it will and Discover.
King Slams Co-Chief Executive Scott Nut- largest consumer-book pub- translate into new business.
tall said on the call. He added lisher as measured by reve- Shares of KKR closed down “That’s an indicator for us
Merger of that KKR is mostly raising nue—would hold unprece- a little under 6% on Tuesday. Capital One’s marketing that, in our segment, house-
dented control over which costs increased 62% in the sec- holds have strong liquidity and
Publishers upfront payments, or advances, books are published in the U.S. ment’s lawsuit. ond quarter from a year prior are able to make adjustments
if the deal is completed. and how much authors are Mr. King testified that he to deal with inflation,” Dis-
Continued from page B1 paid, the Justice Department cover Chief Executive Roger
The trial is being closely Penguin Random House alleged. wasn’t reassured by Penguin Hochschild said. “For us, con-
and Simon & Schuster have Random House’s pledges that, sumers remain very strong.”
watched by authors, literary defended the transaction as Together, Penguin Random if the merger is completed,
agents and publishing-industry pro-competitive, saying that House and Simon & Schuster imprints it owns would con-
executives. Instead of arguing author advances wouldn’t be account for 31% of all print tinue to compete against im-
that the deal will increase book lowered and that Simon & books sold in the U.S., accord- prints owned by Simon &
prices, the government has fo- Schuster authors would bene- ing to tracker NPD BookScan. Schuster. “It’s a little bit ri-
cused on author wages, saying fit from access to Penguin diculous,” Mr. King said. “You
writers of anticipated bestsell- Random House’s distribution Mr. King—whose works in- might as well say you’re going
ers likely will receive smaller channels and supply chain. clude “The Shining,” “Misery,” to have a husband and wife
and “Carrie”—has publicly bidding against each other for
The German media company praised the Justice Depart- the same house.”
Bertelsmann SE, which owns
Penguin Random House, Daniel Petrocelli, Penguin
agreed in November 2020 to Random House’s lawyer, de-
buy Simon & Schuster from Vi- clined to ask Mr. King any ques-
acomCBS—now called Para- tions on cross-examination, in-
mount Global. stead congratulating him on his
career achievements.
If the Simon & Schuster deal

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B6 | Wednesday, August 3, 2022 .

THE WALL STREET JOURNAL.

THE PROPERTY REPORT

WeWork Marriott Is Upbeat About Travel
Joins Rush
Hotel operator issues
To Offer guidance for the year

Office that surpasses Wall
Street expectations

Software BY WILL FEUER

BY REBECCA PICCIOTTO Marriott International Inc. KARIM JAAFAR/AGENCE FRANCE-PRESSE/GETTY IMAGES
executives said demand for
WeWork Inc. is hoping to travel is holding up and there The company’s results follow positive readouts from other hotel chains. The kitchen of the Marriott Marquis in the Qatari capital Doha.
boost its drooping share price are no signs yet of cracks be-
by joining the growing number ginning to form, even as trav- occupancy in the quarter come Marriott's quarterly revenue Share performance this year Large companies are still
of technology companies sell- elers face surging costs and in between 76% and 86%, Chief holding back on business trips,
ing apps, data tools and other concerns over economic Executive Tony Capuano said $6 billion 2Q 2022 15% Marriott he said, as opposed to small-
software to landlords and of- growth. on the company’s earnings 5 $5.34B 10 and medium-size businesses,
fice tenants trying to adjust to call. 4 which are mostly traveling at
hybrid workplaces. “We are not seeing any 5 levels they did before the pan-
signs of any demand pullback Shares of Marriott, which demic.
Nine months after going at this point,” Leeny Oberg, also issued guidance for the 0
public, the shared-workplace the company’s finance chief, year that surpassed Wall Overall for the three
operator in July launched a said Tuesday in an interview. Street expectations, fell 3 –5 months ended June 30, the
service named WeWork Work- “People want to get out there slightly Tuesday to $158.24 a company posted net income of
place, which includes the soft- and travel.” share. –10 $678 million, or $2.06 a share,
ware tools that WeWork has 2 compared with $422 million,
been using to power its loca- In the U.S., Americans are Demand for Marriott’s hotel or $1.28 a share, a year earlier.
tions. For the first time, We- seeking out leisure travel after rooms rose across all of its –15 Stripping out one-time
Work is offering these tools to years of deferred trips, she customer segments as nearly charges, adjusted earnings
all tenants regardless of We- said. Businesses, too, are set- all countries eased travel re- 1 were $1.80 a share. Analysts
Work membership. ting up trips, either to create strictions in the quarter, Mr. –20 surveyed by FactSet were ex-
in-person connections among Capuano said. pecting adjusted earnings of
WeWork executives say remote workforces or to re-es- S&P 500 $1.57 a share.
Workplace will help busi- tablish and firm up client rela- Worldwide revenue per 0 –25
nesses lure workers back to tionships. available room, a closely The company said it ex-
offices by giving their employ- watched industry metric 2019 ’20 ’21 ’22 J FM AM J J A pects full-year adjusted earn-
ees an app with which they The hotel company, with known as RevPAR, surpassed ings of $6.33 a share to $6.59
can do such things as book a more than 8,100 properties 2019 levels in June, Mr. Sources: the company (revenue); FactSet (performance) a share, better than the $6.01
conference room, post a com- globally, reported a roughly Capuano said. RevPAR in the a share that analysts surveyed
pany announcement or regis- 70% jump in second-quarter U.S. and Canada passed pre- In the U.S. and Canada, tirely. Cross-border travel, for by FactSet had been expecting.
ter for a yoga class. revenue to $5.34 billion, top- pandemic levels in April, but group travel, which has been example, has yet to return to Worldwide RevPAR for the
ping the $4.92 billion expected the global figure was dragged slower to return than leisure prepandemic levels. The U.S. year is expected to be between
“Companies of all sizes rec- by Wall Street. down by the sluggish recovery travel, came in 1% lower than only ended its requirement 6% and 3% lower than in 2019.
ognize that people aren’t com- in parts of Europe and Asia. 2019 levels for June, he said. that inbound international
ing in every day,” said Scott It is the latest sign of In the first quarter, group travels produce a negative The company said it re-
Americans shifting their In June, European RevPAR travel in the region was nearly Covid-19 test at the end of the sumed share buybacks in the
WeWork executives spending from goods toward exceeded 2019 levels, largely 30% lower than before the quarter. recently ended quarter, repur-
travel and services, and fol- due to the return of interna- pandemic, he said. chasing 1.9 million shares for
say Workplace will lows similarly positive read- tional travelers, Mr. Capuano “We think that’s going to be $300 million.
outs from airlines and other said. Mr. Capuano said some ar- another accelerant for cross-
help lure workers hotel chains even amid con- eas haven’t bounced back en- border travel,” he said.
cerns about inflation and
back to offices. other macroeconomic factors.

Morey, WeWork’s president of The company said global
technology and innovation. occupancy came in at nearly
That change in the workplace 68%, just 7 percentage points
created challenges that require below prepandemic levels.
digital solutions, he said. Marriott continued to raise
prices, too, with global aver-
But WeWork isn’t alone in age daily room rates for the
looking for new business op- quarter coming in more than
portunities in the upheaval in 7% above 2019 levels.
the office-space industry
caused by the pandemic. Com- Travel to major cities,
petitors offering apps, data, which lagged behind the re-
telecommunications and other covery in resort destinations
software include technology earlier this year, is beginning
companies such as Cisco Sys- to bounce back. The com-
tems Inc. and Honeywell In- pany’s hotels in Washington,
ternational Inc. D.C., San Francisco, Los Ange-
les and New York City all saw
Cisco is trying to tap into
this demand with services in- Shopping Center
cluding its teleconferencing Shows Strength
system that cancels back- Of Retail Stores
ground sounds and a space-
management tool that tracks BY KATE KING has been a pleasant surprise JESSICA RUIZ FOR THE WALL STREET JOURNAL (2)
employee usage of conference in the retail world as the U.S.
rooms and other office space. AND JESSICA RUIZ emerged from the pandemic. Jose Gutierrez and his family are the owners of El Quelite Produce at the Plaza Mexico center.
People who relied on online
Honeywell has tried to cap- LYNWOOD, Calif.—The air shopping are returning to of its largest tenants, a Food 4 will be added,” Mr. Kosoy said. other items like piñatas, cloth-
ture market share with soft- conditioning in the food hall is bricks-and-mortar locations, Less grocery store, Rite Aid Plaza Mexico was built as a ing and sports equipment.
ware such as People Counting, broken. The parking lot is especially those offering expe- pharmacy and the children’s Floor fans keep the air circu-
which analyzes video from se- cracked. And for more than a riences not found online. party spot Chuck E. Cheese. traditional shopping center in lating, but produce-stand
curity cameras to keep a real- year, the Plaza Mexico shop- the 1970s and then redevel- owner Jose Gutierrez was wip-
time log of how many people ping center operated under Investors are noticing. “This asset very much oped in the early 2000s by ing sweat from his forehead as
go in and out of the office. bankruptcy-court protection. More than 900 shopping cen- speaks to the demographics in California-based M&D Proper- he stood behind the counter
ters sold nationwide in the the local community,” said ties to appeal to the area’s recently. The fruit and vegeta-
The size of the office-soft- But on a recent Sunday, second quarter of this year for Brandon Svec, national direc- Hispanic population. Its archi- bles would stay fresh longer if
ware business is difficult to families flocked to the a total $16.6 billion, about tor of U.S. retail analytics for tecture was inspired by Mexi- the air conditioning worked,
gauge partly because it is so 400,000-square-foot shopping double the volume of the same data firm CoStar Group Inc. he said.
young, but participants esti- center about 15 miles south of period last year, according to “But from a pure deal struc- $16.6B
mate that it is in the billions downtown Los Angeles. Chil- data firm MSCI. The increase ture, I think that the buyers Before the pandemic, Plaza
of dollars. dren rode the outdoor carou- was particularly noteworthy are going to need to frankly Total amount shopping centers Mexico’s previous owner orga-
sel and shoppers rested in the because overall commercial- justify the pricing.” sold for in second quarter nized events like World Cup
WeWork’s rollout of its shade on benches near the property-sales growth slowed viewings and appearances by
workplace-software service center’s “kiosco,” a gazebo- in the quarter due to higher Florida-based Sterling be- can cities like Guadalajara, famous Mexican boxers. In
marks the latest chapter in the like structure commonly found interest rates and recession lieves Plaza Mexico is well Mexico City and Oaxaca, ac- 2016, then-Democratic presi-
saga of the company. WeWork in Mexican plazas. concerns. “A lot of [spending] worth the purchase price and cording to its website. dential candidate Hillary Clin-
shook up the office-space is happening at the store the millions it plans to spend ton held a campaign rally at
business in the years leading Retired machine operator again,” said Jim Costello, chief on improvements, according to Plaza Mexico entered bank- Plaza Mexico.
up to the pandemic, but a Gerardo Vicente Badillo visits economist for MSCI’s real-as- Brian Kosoy, chief executive. ruptcy last year after its then-
planned initial public offering almost daily to buy inexpen- sets team. The real-estate focused com- owner, Plamex Investment, Shop keepers, many of
in 2019 flopped. Since then, sive fruit and eat authentic pany estimates nearly 400,000 LLC, defaulted on $106 million whom said they knew and
new management cut costs by Mexican cuisine. A fan of Los One of the largest U.S. retail people live within 3 miles of in senior loans and $14 million liked the previous owners, said
shedding leases. Last October, Angeles sports teams, he said deals last quarter was the pur- the shopping center, most of in mezzanine loans and the they hoped the new manage-
WeWork went public through he is particularly proud of the chase of Plaza Mexico by pri- them Hispanic. mezzanine lender moved to ment revives these types of
a merger with a special-pur- Dodgers and Lakers jackets vate-equity firm Sterling Or- foreclose. The previous owner events. While Plaza Mexico’s
pose acquisition company. that he bought on layaway at ganization for nearly $165 “If you look at what the in- said in court filings that it had public gathering spots and
the shopping center. million in a bankruptcy auc- come could and should grow been unable to make its debt food vendors are busy, several
But its stock, which hit a tion. Analysts say the price of to in five to seven years, I payments because business owners of apparel and other
high of $13.18 in October, has “Plaza Mexico is a little $407 a square foot was a think we bought it very favor- disruptions caused by the pan- retail shops said sales haven’t
fallen to under $5 a share piece of Mexico here in Los healthy one given the prop- ably,” Mr. Kosoy said. demic left many tenants un- recovered from the pandemic.
partly because the company Angeles,” said Mr. Badillo, 64 erty’s troubled past and lease able to pay rent.
continues to operate at a loss years old. expirations next year of three The shopping center is 13% Community advocates said
and is still on the hook for a vacant, but Mr. Kosoy said this One of Plaza Mexico’s most they hoped higher rents don’t
$2.4 billion load of debt, due High foot traffic at shop- and the expiring leases are ad- popular attractions is its force out local small busi-
in 2025, analysts say. ping centers like Plaza Mexico vantages because many ten- “Mercado,” a large hall mod- nesses.
ants are paying below-market eled after a traditional Mexi-
Some analysts don’t expect Plaza Mexico’s outdoor carousel. rents. Sterling plans to boost can marketplace where nearly Mr. Kosoy said there are no
WeWork’s new workplace-soft- revenue by raising well-per- 200 vendors sell food and current plans for changes to
ware offering to be much help. forming tenants’ rent to mar- the Mercado, but added, “the
ket rate and by attracting na- first thing that we’re doing is
“It seems to be a diversion, tional retailers. wrapping our arms around the
more than anything else, away operations in order to vet the
from what is a bad business “There’s a ton of meat on opportunities for improve-
model,” said David Trainer, the bone, from our perspec- ment.”
chief executive of investment- tive, and a ton of value that
research firm New Constructs.

But Piper Sandler’s senior
real-estate-investment-trust
analyst, Alexander Goldfarb,
predicted that boosting build-
ing occupancy with new ven-
tures such as WeWork Work-
place and cutting cost margins
help put WeWork on track to
achieve positive cash flow in
2024.

“WeWork is a great outfit
for companies looking for flex-
ibility and small businesses to
have, especially when you’re
trying to figure out what your
office needs,” Mr. Goldfarb
said.

THE WALL STREET JOURNAL. .

Wednesday, August 3, 2022 | B7

BIGGEST 1,000 STOCKS

How to Read the Stock Tables Footnotes: Stock Net Stock Net Net Net Stock Net Net
s-New 52-week high. Sym Close Chg Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, NYSE t-New 52-week low.
Arca, NYSE American and Nasdaq Stock Market dd-Indicates loss in the most recent four Avantor AVTR 29.25 -0.24 Brown-Forman A BF.A 71.87 -0.22 Chipotle CMG 1549.85 -7.53 DarlingIngred DAR 70.92 0.59 Equinix EQIX 688.71 -5.72 Gaming&Leisure GLPI 51.59 0.01
listed securities. Prices are composite quotations quarters.
that include primary market trades as well as FD-First day of trading. AveryDennison AVY 190.47 0.04 Bruker BRKR 68.53 -0.51 Chubb CB 184.34 -0.64 Datadog DDOG 106.37 2.92 Equinor EQNR 37.80 0.04 Garmin GRMN 96.48 -1.79
trades reported by Nasdaq BX (formerly Boston), h-Does not meet continued listing
Chicago Stock Exchange, Cboe, NYSE National and standards AvisBudget CAR 172.54 -8.55 BuildersFirst BLDR 70.27 -3.07 ChunghwaTel CHT 40.24 -0.09 DaVita DVA 86.45 1.60 Equitable EQH 27.51 -0.62 Gartner IT 289.69 20.59
Nasdaq ISE. lf-Late filing
The list comprises the 1,000 largest companies q-Temporary exemption from Nasdaq AxonEnterprise AXON 113.01 2.01 Bumble BMBL 36.00 0.06 Church&Dwight CHD 87.06 -1.54 DeckersOutdoor DECK 307.50 -6.51 EquityLife ELS 73.24 0.20 Generac GNRC 266.65 1.66
based on market capitalization. requirements.
Underlined quotations are those stocks with t-NYSE bankruptcy BCE BCE 49.78 -0.67 Bunge BG 92.94 -0.90 ChurchillDowns CHDN 209.87 0.32 Deere DE 333.21 -4.98 EquityResdntl EQR 75.53 -0.95 GeneralDynamics GD 227.04 0.86
large changes in volume compared with the v-Trading halted on primary market.
issue’s average trading volume. vj-In bankruptcy or receivership or being BHP Group BHP 53.02 -1.17 BurlingtonStrs BURL 148.05 -2.12 Ciena CIEN 51.59 -0.15 DellTechC DELL 44.26 -1.16 ErieIndemnity A ERIE 208.69 4.52 GeneralElec GE 74.36 -1.44
Boldfaced quotations highlight those issues reorganized under the Bankruptcy Code,
whose price changed by 5% or more if their or securities assumed by such companies. BJ'sWholesale BJ 69.24 -0.18 CACI Intl CACI 292.15 -8.82 Cigna CI 271.44 -1.97 DeltaAir DAL 31.82 -0.41 EssentialUtil WTRG 51.59 -0.24 GeneralMills GIS 75.68 -0.02
previous closing price was $2 or higher.
BP BP 29.36 0.31 CBRE Group CBRE 82.30 -2.43 t CincinnatiFin CINF 94.61 -0.28 DentsplySirona XRAY 35.57 -0.41 EssexProp ESS 276.87 -3.02 GeneralMotors GM 36.13 -0.64

Baidu BIDU 134.16 -0.85 CDW CDW 180.33 -1.18 Cintas CTAS 422.76 -1.17 DeutscheBank DB 8.51 -0.12 EsteeLauder EL 268.39 -5.12 Genmab GMAB 34.81 -0.27

BakerHughes BKR 25.42 0.76 CF Industries CF 98.17 3.73 CiscoSystems CSCO 44.92 -0.36 DevonEnergy DVN 60.63 -0.94 Etsy ETSY 104.44 0.83 Genpact G 47.66 -0.16

Ball BALL 71.79 -1.37 CGI GIB 85.47 -0.14 Citigroup C 50.75 -1.17 DexCom DXCM 88.30 4.47 EverestRe RE 249.28 -3.08 GenuineParts GPC 150.76 -2.17

BancoBilbaoViz BBVA 4.45 -0.02 CH Robinson CHRW 109.03 -0.67 CitizensFin CFG 36.73 -0.85 Diageo DEO 189.18 -3.04 Evergy EVRG 68.00 -0.47 Gerdau GGB 4.65 0.06

BancoBradesco BBDO 2.73 -0.01 CME Group CME 197.52 1.77 CitrixSystems CTXS 101.95 0.68 DiamondbkEner FANG 127.54 1.62 EversourceEner ES 90.24 1.03 GileadSciences GILD 59.54 -0.06

BancodeChile BCH 18.54 -0.54 CMS Energy CMS 68.90 -0.13 Clarivate CLVT 14.36 0.01 Dick's DKS 93.53 -2.58 ExactSciences EXAS 47.93 0.72 GitLab GTLB 60.34 2.04

Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and BancSanBrasil BSBR 5.27 -0.09 CNA Fin CNA 39.94 -1.20 s ClearwayEnergyA CWEN.A 33.94 -0.42 DigitalRealty DLR 129.27 -1.27 Exelon EXC 45.83 -0.28 GlobalPayments GPN 126.45 -1.53
changes in the closing prices from 4 p.m. the previous day.
BcoSantChile BSAC 15.27 -0.48 CNH Indl CNHI 12.22 -0.23 ClearwayEnergyC CWEN 36.85 -0.59 DiscoverFinSvcs DFS 100.16 -2.06 Expedia EXPE 103.89 1.10 GlobalFoundries GFS 52.75 -1.79

BancoSantander SAN 2.38 -0.06 CRH CRH 37.33 -0.94 Cleveland-Cliffs CLF 17.05 -0.46 Disney DIS 104.71 -1.51 ExpeditorsIntl EXPD 102.25 -4.23 Globant GLOB 207.33 1.10

Tuesday, August 2, 2022 Net Net BanColombia CIB 29.25 0.54 CSX CSX 32.15 -0.45 Clorox CLX 143.79 -1.50 dLocal DLO 28.69 0.79 ExtraSpaceSt EXR 187.00 -2.01 GlobeLife GL 97.82 -1.27
Sym Close Chg Sym Close Chg GoDaddy GDDY 74.16 0.46
Net Stock Stock BankofAmerica BAC 33.04 -0.67 CVS Health CVS 95.37 -0.65 Cloudflare NET 53.08 1.92 DocuSign DOCU 67.01 1.50 ExxonMobil XOM 94.07 -0.41 GoldFields GFI 9.16 -0.12
Sym Close Chg GoldmanSachs GS 327.88 -4.20
Stock BankofMontreal BMO 98.04 -0.80 CableOne CABO 1395.28 -8.95 Coca-Cola KO 63.64 -0.88 DolbyLab DLB 77.26 -0.32 F5 FFIV 165.40 -0.15

Albertsons ACI 26.92 0.07 AmerisourceBrgn ABC 142.81 -3.12 BankNY Mellon BK 42.95 -0.34 CadenceDesign CDNS 183.45 -1.59 Coca-ColaEuro CCEP 53.48 -0.61 DollarGeneral DG 250.62 -1.46 FMC FMC 107.50 -1.61

ABC Alcoa AA 48.34 0.06 Ametek AME 124.81 2.43 BkNovaScotia BNS 60.15 -0.48 CAE CAE 26.21 -0.55 Cognex CGNX 49.72 -0.81 DollarTree DLTR 164.75 -1.94 FactSet FDS 420.92 -1.88 Grab GRAB 3.10 0.22
FairIsaac FICO 462.60 1.90 Graco GGG 66.45 -0.55
Alcon ALC 77.40 -0.67 Amgen AMGN 243.91 -1.73 Barclays BCS 7.86 -0.14 CaesarsEnt CZR 49.17 3.13 CognizantTech CTSH 67.57 -0.05 DominionEner D 82.16 -0.38

ABB ABB 29.64 -0.49 AlexandriaRlEst ARE 159.67 -4.65 Amphenol APH 76.44 -0.08 BarrickGold GOLD 15.52 -0.20 CamdenProperty CPT 137.07 -1.85 CoinbaseGlbl COIN 67.23 4.53 Domino's DPZ 391.07 0.95 Fastenal FAST 51.08 -0.46 Grainger GWW 540.25 -9.35

AECOM ACM 71.46 -0.31 Alibaba BABA 92.62 2.28 AnalogDevices ADI 170.77 -0.69 Bath&BodyWks BBWI 37.02 -0.30 Cameco CCJ 25.17 0.35 ColgatePalm CL 80.26 -0.84 DoorDash DASH 75.74 3.71 FederalRealty FRT 104.11 -1.68 t Grifols GRFS 8.29 -0.31

AES AES 22.23 -0.13 AlignTech ALGN 281.23 -1.59 AB InBev BUD 51.74 -1.06 BaxterIntl BAX 58.88 0.21 CampbellSoup CPB 49.20 -0.38 Comcast A CMCSA 37.68 0.17 Dover DOV 131.13 -1.15 FedEx FDX 233.27 -4.43 HCA Healthcare HCA 211.47 0.56

Aflac AFL 58.74 2.03 Alleghany Y 837.00 ... AnnalyCap NLY 6.61 -0.29 BectonDicknsn BDX 243.02 -1.75 CIBC CM 50.00 -0.37 Comerica CMA 76.64 -1.13 Dow DOW 51.55 -0.91 Ferguson FERG 123.60 -1.53 HDFC Bank HDB 62.08 -1.00

AGCO AGCO 105.44 -1.74 Allegion ALLE 102.74 -2.63 AnteroResources AR 37.68 -1.61 BeiGene BGNE 165.85 3.36 CanNtlRlwy CNI 124.98 -0.51 CommerceBcshrs CBSH 69.93 -0.36 Doximity DOCS 43.84 1.04 Ferrari RACE 211.04 -2.17 HF Sinclair DINO 48.71 1.30

AMC Ent AMC 16.86 1.49 AlliantEnergy LNT 60.79 -0.11 Aon AON 280.26 -0.08 BentleySystems BSY 39.43 0.17 CanNaturalRes CNQ 54.05 -0.15 ConagraBrands CAG 34.12 -0.38 DrReddy'sLab RDY 51.38 -0.10 FidNatlFin FNF 38.93 -0.65 HP HPQ 32.74 -0.93

s AMTD Digital HKD 1679.00937.00 Allstate ALL 115.70 -0.46 AptIncmREIT AIRC 43.66 -0.65 Berkley WRB 61.11 -0.31 CanPacRlwy CP 77.58 -0.27 Concentrix CNXC 135.60 -0.53 DraftKings DKNG 15.37 1.26 FidNatlInfo FIS 102.19 -1.10 HSBC HSBC 32.45 -0.99

Ansys ANSS 276.10 -3.11 AllyFinancial ALLY 32.14 -1.29 ApolloGlbMgmt APO 56.41 -0.71 BerkHathwy A BRK.A 439179-5470.36 Canon CAJ 23.49 -0.23 Confluent CFLT 26.84 0.89 Dropbox DBX 22.82 -0.04 FifthThirdBncp FITB 33.69 -0.44 H World HTHT 38.42 0.90

APA APA 35.93 -0.08 AlnylamPharm ALNY 141.97 2.02 Apple AAPL 160.01 -1.50 BerkHathwy B BRK.B 292.17 -3.69 CapitalOne COF 106.94 -2.79 ConocoPhillips COP 94.71 -0.39 DukeEnergy DUK 109.62 -0.23 FirstCitizBcshA FCNCA 768.41 4.34 Haleon HLN 7.40 0.03

ASETech ASX 5.77 -0.04 Alphabet A GOOGL 115.13 0.27 ApplMaterials AMAT 104.99 -1.41 BerryGlobal BERY 54.82 -2.87 CardinalHealth CAH 59.76 -0.56 ConEd ED 98.05 -0.28 DukeRealty DRE 61.10 -0.71 FirstHorizon FHN 22.81 0.40 Halliburton HAL 28.60 0.41

ASML ASML 565.60 -12.55 Alphabet C GOOG 115.90 0.42 Applovin APP 34.49 0.32 BestBuy BBY 74.61 -2.37 Carlisle CSL 290.55 -2.93 ConstBrands A STZ 245.00 0.85 DuPont DD 58.57 -1.63 FirstIndRlty FR 51.89 -0.03 HartfordFinl HIG 62.96 -0.47

AT&T T 18.36 -0.37 Altria MO 43.83 -0.22 Aptargroup ATR 106.59 -1.61 Bilibili BILI 23.81 0.49 Carlyle CG 37.73 -0.76 s ConstBrands B STZ.B 313.54 1.07 Dynatrace DT 38.34 0.85 FirstRepBank FRC 159.08 -3.30 Hasbro HAS 78.55 -0.93

AbbottLabs ABT 108.64 -0.88 AlumofChina ACH 8.91 -0.08 Aptiv APTV 108.44 2.06 Bill.com BILL 136.35 1.68 CarMax KMX 99.02 -2.94 ConstellationEner CEG 65.84 0.54 ENI E 23.35 -0.74 FirstSolar FSLR 99.72 0.23 HealthcareRealty HR 25.70 -0.52

AbbVie ABBV 140.39 0.17 Amazon.com AMZN 134.16 -1.23 Aramark ARMK 33.84 0.07 Bio-Techne TECH 387.01 3.75 Carnival CCL 9.35 0.43 ContinentalRscs CLR 67.82 -0.11 EOG Rscs EOG 107.19 -0.39 FirstEnergy FE 39.68 -0.84 HealthpeakProp PEAK 27.30 -0.25

Abiomed ABMD 293.63 1.73 Ambev ABEV 2.73 -0.04 ArcelorMittal MT 23.54 -0.70 Bio-RadLab B BIO.B 550.67 66.31 Carnival CUK 8.49 0.40 Cooper COO 324.81 -0.58 EPAM Systems EPAM 364.33 -2.09 Fiserv FISV 106.23 0.10 Heico A HEI.A 125.37 -1.18

AcadiaHealthcare ACHC 81.13 -0.80 Amcor AMCR 12.75 -0.29 ArchCapital ACGL 43.43 -0.06 Bio-RadLab A BIO 547.96 -5.65 CarrierGlobal CARR 40.41 -0.16 Copart CPRT 128.09 -0.77 EQT EQT 41.88 -0.43 FiveBelow FIVE 132.75 -1.04 Heico HEI 155.89 -0.89

Accenture ACN 302.48 -2.26 Amdocs DOX 85.67 -0.64 ArcherDaniels ADM 82.79 -1.47 Biogen BIIB 209.15 -0.11 CaseysGenStores CASY 203.78 -1.78 Corning GLW 36.11 -0.28 EastWestBncp EWBC 70.19 -1.25 Five9 FIVN 112.33 5.15 HenrySchein HSIC 75.51 -2.88

ActivisionBliz ATVI 79.32 -0.76 Amerco UHAL 519.20 -8.91 AresMgmt ARES 72.64 -0.13 BiohavenPharm BHVN 145.99 -0.02 Catalent CTLT 111.39 -0.41 Corteva CTVA 55.74 -1.16 EastGroup EGP 169.91 0.90 FleetCorTech FLT 223.02 0.51 s Hershey HSY 229.16 -0.62

Adobe ADBE 409.96 -1.13 Ameren AEE 92.53 -0.49 arGEN-X ARGX 357.81 2.82 BioMarinPharm BMRN 86.69 1.28 Caterpillar CAT 183.51 -11.35 CoStar CSGP 70.99 -0.17 EastmanChem EMN 93.22 -0.84 Flex FLEX 16.59 -0.04 HertzGlobal HTZ 20.59 -0.89

AdvanceAuto AAP 195.02 -0.97 AmericaMovil A AMOV 17.52 -1.08 AristaNetworks ANET117.14 -0.47 BioNTech BNTX 165.77 2.29 Celanese CE 111.45 -2.41 Costco COST 543.46 -3.35 Eaton ETN 146.39 -1.11 Floor&Decor FND 80.67 -0.34 Hess HES 109.61 0.87

AdvDrainageSys WMS 118.61 -0.16 AmericaMovil AMX 17.84 -0.97 ArrowElec ARW 125.68 -2.34 BlackKnight BKI 63.79 -0.70 CenovusEnergy CVE 18.53 -0.04 CoterraEnergy CTRA 29.38 -0.19 eBay EBAY 48.43 -0.51 FomentoEconMex FMX 59.70 -1.41 HessMidstream HESM 29.69 -0.31

AdvMicroDevices AMD 99.29 2.51 AmerAirlines AAL 14.06 -0.22 AspenTech AZPN 207.84 2.40 BlackRock BLK 666.16 -5.23 Centene CNC 93.31 1.06 Coupang CPNG 18.37 0.19 Ecolab ECL 165.36 -1.69 FordMotor F 15.16 -0.18 HewlettPackard HPE 14.17 -0.25
Credicorp BAP 129.06 -0.91
Aegon AEG 4.29 -0.06 AmCampus ACC 65.34 0.03 Assurant AIZ 171.57 -3.04 Blackstone BX 100.57 -2.67 CenterPointEner CNP 31.70 0.07 Ecopetrol EC 10.60 0.08 Fortinet FTNT 60.37 0.31 HighwoodsProp HIW 34.22 -1.09
CreditAcceptance CACC 528.89 -52.81 -0.23 -0.01
AerCap AER 43.07 -1.21 AEP AEP 98.46 -0.64 AstraZeneca AZN 65.26 -0.39 Block SQ 79.09 1.28 CentraisElBras EBR 8.96 -0.05 EdisonInt EIX 68.62 1.63 Fortis FTS 46.83 -0.26 Hilton HLT 128.68 0.52
CreditSuisse CS 5.40 -0.37 -1.97 -5.11
AffirmHldgs AFRM 28.15 0.98 AmerExpress AXP 151.60 -1.73 Atlassian TEAM 214.21 3.62 BlueOwlCapital OWL 11.31 -0.06 CeridianHCM CDAY 55.27 -0.31 CrowdStrike CRWD 188.14 4.84 EdwardsLife EW 102.22 2.77 Fortive FTV 64.17 -0.24 Hologic HOLX 71.47 -0.36
CrownCastle CCI 177.85 -2.12 -0.17 -2.87
AgilentTechs A 131.28 -2.15 AmericanFin AFG 130.22 -0.84 AtmosEnergy ATO 120.10 -1.07 Boeing BA 163.28 -5.79 ChangeHlthcr CHNG 24.23 0.30 CrownHoldings CCK 99.03 -1.64 FortBrandsHome FBHS 67.63 -1.44 HomeDepot HD 300.71 1.25
CubeSmart CUBE 44.86 -0.78 -0.56 0.06
Autodesk ADSK 216.18 -1.96 BookingHldgs BKNG 1956.30 49.63 CharlesRiverLabs CRL 243.66 -6.02 Cullen/Frost CFR 129.63 -1.41 ElancoAnimal ELAN 19.44 -0.18 FoxA FOXA 33.20 -0.65 HondaMotor HMC 26.02
Cummins CMI 218.61 0.77 -0.04 -4.07
agilon health AGL 25.81 0.73 AmHomes4Rent AMH 37.13 -0.21 Autoliv ALV 83.76 -1.43 BoozAllen BAH 96.06 0.26 ChartIndustries GTLS 193.07 3.21 Elastic ESTC 81.89 1.14 FoxB FOX 30.93 0.10 Honeywell HON 189.12 -0.54
-0.15
AgnicoEagle AEM 42.22 -0.72 AIG AIG 50.71 -0.33 ADP ADP 240.62 -0.70 BorgWarner BWA 38.56 -0.09 CharterComms CHTR 437.65 11.09 ElbitSystems ESLT 230.26 -1.10 Franco-Nevada FNV 125.82 HorizonTherap HZNP 82.13 -2.34

AirProducts APD 244.12 -3.13 AmerTowerREIT AMT 266.63 -1.99 AutoZone AZO 2153.92 -7.44 BostonProps BXP 88.05 -1.46 CheckPoint CHKP 118.39 -0.64 ElectronicArts EA 128.89 -1.98 FranklinRscs BEN 27.38 HormelFoods HRL 49.39

Airbnb ABNB 116.34 5.14 AmerWaterWorks AWK 155.48 -1.15 Avalara AVLR 90.40 2.32 BostonSci BSX 41.46 0.41 Chemed CHE 474.07 3.79 ElevanceHealth ELV 472.14 1.24 FreeportMcM FCX 29.33 DR Horton DHI 74.16

AkamaiTech AKAM 94.84 -0.49 AmericoldRealty COLD 32.54 -0.13 Avalonbay AVB 204.58 -3.19 BristolMyers BMY 73.28 -0.34 CheniereEnergy LNG 145.97 -1.00 EmersonElec EMR 89.11 -0.23 FreseniusMed FMS 18.31 HostHotels HST 17.30

Albemarle ALB 243.89 3.93 Ameriprise AMP 264.11 -2.45 Avangrid AGR 48.71 -0.11 BritishAmTob BTI 39.64 0.06 CheniereEnerPtrs CQP 49.61 -0.35 DEF Enbridge ENB 43.99 -0.54 FullTruck YMM 7.83 s HowmetAerospace HWM 37.20
ChesapeakeEner CHK 90.25 -0.17 Endeavor EDR 22.73 0.41
Broadcom AVGO 531.21 -5.16 Hubbell HUBB 212.43

BroadridgeFinl BR 163.28 1.94 Chevron CVX 159.14 -1.37 DCP Midstream DCP 34.60 0.21 EnergyTransfer ET 11.27 -0.05 GHI HubSpot HUBS 328.33 14.50

Dividend Changes BrookfieldMgt BAM 48.98 -0.62 ChewyA CHWY 40.80 -0.14 DISH Network DISH 17.13 -0.12 s EnphaseEnergy ENPH 292.26 11.37 Humana HUM 478.39 3.75

BrookfieldInfr BIP 39.75 -0.12 ChinaEastrnAir CEA 17.81 -0.07 DTE Energy DTE 129.90 -0.52 Entegris ENTG 104.80 -5.38 GFLEnvironmental GFL 27.69 0.13 JBHunt JBHT 178.70 -2.86

BrookfieldRenew BEPC 39.20 0.42 ChinaLifeIns LFC 7.25 -0.14 DXC Tech DXC 31.12 -0.53 Entergy ETR 115.11 -0.30 GSK GSK 41.18 -0.45 HuntingtonBcshs HBAN 13.21 -0.14

Amount Payable / Brown&Brown BRO 62.88 -0.30 ChinaPetrol SNP 45.62 -0.70 Danaher DHR 285.53 -2.37 EnterpriseProd EPD 26.34 -0.28 Gallagher AJG 172.34 -0.18 HuntingIngalls HII 217.47 -0.17
New/Old Frq Record
Company Symbol Yld % Brown-Forman B BF.B 74.36 -0.40 ChinaSoAirlines ZNH 27.23 -0.93 Darden DRI 124.14 -0.61 Equifax EFX 206.31 -4.47 GameStop GME 35.84 1.06 Continued on Page B8

Increased DVN 7.7 .18 /.16 Q Sep30 /Sep12 ADVERTISEMENT
K 3.2 .59 /.58 Q Sep15 /Sep01
Devon Energy Q Aug31 /Aug19 Business Real Estate & Auctions
Kellogg Co NRT 7.4 .46 /.38 Q Sep15 /Aug31
North Eur Oil Royalty Tr PFIS 3.0 .40 /.39 Q Aug25 /Aug18 To advertise: email [email protected] or WSJ.com/classifieds
Peoples Fincl Svcs ZION 3.1 .41 /.38
Zions Bancorp

Foreign HSBC 4.1 .45 Q Sep29 /Aug19
SRL 11.3 .26 Q Aug26 /Aug12
HSBC Holdings ADR
Scully Royalty

Special CONNECTICUT ANNOUNCEMENTS

Arch Resources ARCH 0.8 5.75 Sep15 /Aug31
Devon Energy DVN 7.7 1.37 Sep30 /Sep12

Sources: FactSet; Dow Jones Market Data

KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: The Board of Directors of Cadillac Fairview
spin-off. is pleased to welcome Pierre Cherki and Jeff
Jacobson. Mr. Cherki is the former Co-Head
BANKRATE.COM® MMA, Savings and CDs of Investments, DWS, and Mr. Jacobson is
the former Global Chief Executive Officer for
Average Yields of Major Banks SEALED BID 84 (2.3 MILES) LaSalle Investment Management Inc.
DEADLINE SEPT. 1
Type MMA 1-MO 2-MO 3-MO 6-MO Tuesday, August 2, 2022
1-YR 2-YR 2.5YR 5YR 131.5± AC • Convenient distribution access
National average 0.10 0.08 0.08 0.17 0.27 STONE QUARRY to I-84 & the Hartford Turnpike
0.22 0.09 0.08 0.18 0.28 0.45 0.54 0.47 0.59
Savings 0.49 0.60 0.50 0.63 PROXIMITY TO • 20 min. from Hartford, CT
Jumbos 0.01 0.01 0.00 0.03 0.04 SEVERAL CITIES
0.03 0.01 0.00 0.03 0.04 0.04 0.03 0.04 0.02 • Approx. 14,000,000 tons of
Weekly change 0.04 0.04 0.04 0.02 131 MOUNTAIN SPRING RD. aggregate believed to be avail.
TOLLAND, CT
Savings • Aggregate in ground is suitable
Jumbos for commercial & base stone use

Consumer Savings Rates Sales 203.561.8737
HilcoRealEstate.com
Below are the top federally insured offers available nationwide according to Bankrate.com's
weekly survey of highest yields. For latest offers and reviews of these financial institutions, please Hilco Real Estate, LLC in cooperation with Hathaway, Timothy DeBowes #REB.0790741. Pierre Cherki Jeff Jacobson
visit bankrate.com/banking/reviews. Information is believed to be reliable, but not guaranteed.

High yield savings

Bank Yield Bank Yield TEXAS Mr. Cherki brings 25 years Mr. Jacobson joins the
Phone number Minimum (%) Phone number Minimum (%) of real estate experience Cadillac Fairview Board
$25,000 2.35 with him to Cadillac Fairview. of Directors with more
Money market and savings account Six-month CD Prior to his appointment on than 25 years of senior
$1,000 2.30 management experience
CFG Community Bank $1,000 2.10 Merrick Bank $10,000 2.00 FEDERAL HELIUM SYSTEM at Cliffside Mr. Cherki worked for DWS at LaSalle Investment
2.02 (866) 638-6851 (RREEF) where he served Management, where he
(888) 205-8388 1.92 Luana Savings Bank $500 2.75 13301 BRICKPLANT ROAD AMARILLO, TEXAS 79124 in a number of senior served as the European
(800) 666-2012 $10,000 2.60 management positions, Chief Executive Officer,
Bask Bank, a div of Texas Capital Bank, NA $ Popular Direct $25,000 2.60 COMING SOON! including Global Head of followed by the Global
(800) 274-5696 Alternatives, Global Head Chief Executive Officer.
(877) 839-2265 $2,500 3.00 PUBLIC SALE of Real Estate and Head of
One-year CD $25,000 3.00 AUGUST 2022 Real Estate, Europe and Asia Mr. Jacobson graduated
TAB Bank $0 $1,000 2.85 Pacific. from Stanford University
CFG Community Bank • Approx 2 bcf helium avilable
(800) 355-3063 (888) 205-8388 $500 3.65 • 38,000 +/- acres of subsurface mineral estate Degree in Management and Economics and went on to
Popular Direct $5,000 3.50 • 425 mile pipeline Economics from Tel-Aviv
One-month CD (800) 274-5696 $1,000 3.25 • Cliffside Gas Field Facility - 14,422 +/- sf University and received his from the Food Research
Merrick Bank • 10 acre Kansas Satanta Maintenance Station MBA, Management from Institute at the same
Lone Star Bank $1,000 0.20 (866) 638-6851 Northwestern University. institution.
0.15 GSA Public Buildings Service
(713) 358-9400 0.10 Two-year CD
For more information contact:
State Bank of India California $1,000 Sallie Mae Bank U.S. General Services Administration
(877) 346-2756 William Rollings • 817-978-4324
(877) 707-1995 Merrick Bank GSA.gov/HeliumSystemCliffside
(866) 638-6851
Presidential Bank, FSB $1,000 TAB Bank
(800) 355-3063
(800) 799-1424
Five-year CD
Two-month CD
CFG Community Bank
Lone Star Bank $1,000 0.20 (888) 205-8388
0.15 Goldwater Bank
(713) 358-9400 0.15 (480) 281-8200
TAB Bank
State Bank of India California $1,000 (800) 355-3063

(877) 707-1995

VirtualBank $10,000

(877) 998-2265

Three-month CD Cadillac Fairview (CF) is a globally focused owner, operator,
investor, and developer of best-in-class real estate across retail,
Luana Savings Bank $1,000 1.82 office, residential, industrial and mixed-use asset classes. Wholly
1.00
(800) 666-2012 0.90 in excess of $35 billion of assets across the Americas and the
United Kingdom, with further expansion planned into Europe and
Synchrony Bank $1 COLORADO Asia.

(800) 677-0718 cadillacfairview.com

First Internet Bank of Indiana $1,000

(888) 873-3424 SEALED BID TRANSIT ORIENTED

High yield jumbos - Minimum is $100,000 Sept. 14th, 2022 DEVELOPMENT
OPPORTUNITY
Money market and savings account Six-month CD

CFG Community Bank 2.10 Luana Savings Bank 2.43 • 30 minute light rail ride AUCTIONS
(888) 205-8388 (800) 666-2012 to downtown Denver
Luana Savings Bank 2.35 LAND ONLINE AUCTION
(800) 666-2012 1.71 Merrick Bank 2.00 FOR SALE 817-978-4246 AUGUST 17
Sallie Mae Bank (866) 638-6851
(877) 346-2756 4th & Union Lakewood, CO 62.5± Acre Agricultural Site and Housing Complex
1.50 Popular Direct 2.75 59 +/- ACRES PAINTER, VIRGINIA
One-month CD (800) 274-5696
RealEstateSales.gov/co
Lone Star Bank One-year CD
(713) 358-9400 2.70
State Bank of India California 0.20 CFG Community Bank
(877) 707-1995 (888) 205-8388 2.60
VirtualBank
(877) 998-2265 0.15 Live Oak Bank 3.00 NOTABLE
(866) 518-0286 3.00 COMMERCIAL
Two-month CD
0.10 Popular Direct PROPERTIES
Lone Star Bank (800) 274-5696
(713) 358-9400 2.89
State Bank of India California Two-year CD
(877) 707-1995 EVERY WEDNESDAY
VirtualBank 0.20 Merrick Bank
(877) 998-2265 (866) 638-6851 3.65

Three-month CD 0.15 Sallie Mae Bank LIST YOUR PROPERTY TODAY
(877) 346-2756
Luana Savings Bank 3.50
(800) 666-2012 0.15 Luana Savings Bank
Synchrony Bank (800) 666-2012 3.25 (800) 366-3975
(800) 677-0718 [email protected]
First Internet Bank of Indiana Five-year CD
(888) 873-3424
1.92 CFG Community Bank
(888) 205-8388

1.00 Goldwater Bank
(480) 281-8200

0.90 Citizens Access
(888) 201-6505

Notes: Accounts are federally insured up to $250,000 per person. Yields are based on method of Place an ad at: Lic. 290800783, 2907003627 Lic. 0225059142
compounding and rate stated for the lowest required opening deposit to earn interest. CD wsj.com/classifieds
figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of FisherAuction.com • 754.220.4116
which may be checks. Rates are subject to change. © 2022 Dow Jones & Company, Inc.
All Rights Reserved. 3% BROKER PARTICIPATION • AUCTION SUBJECT TO TERMS OF SALE
Source: Bankrate.com, a publication of Bankrate, Inc., Palm Beach Gardens, FL 33410
Internet: www.bankrate.com