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Sorry Seems to Be the HardestWord as Astros Hit Spring Training

JEFF

ROBERSON/A

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DUGOUT CHAGRIN: Houston Astros infielder Alex Bregman, left, and teammate José Altuve apologized Thursday for the 2017 sign-stealing scandal. Team owner Jim Crane said the Astros’ World Series win that year wasn’t affected by the sign stealing. A12

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women’sfashion issue

AttorneyGeneralCriticizesTrump’sTweetsBarr says presidentmakes his job‘impossible’ amidStone sentencing flap

have been used before to settleclaims from asbestos victimsand others, some legal expertssaid the PG&E trust wouldpose an unusual set of risksfor claimants, tying their pay-ment prospects to a companystill scrambling to reduce thethreat that its aging electricalgrid will start fires.

Since the fall of 2017, stateinvestigators have linked PG&Eequipment to 18 wildfires thatkilled 107 people and destroyedmore than 15,700 homes.

“There’s no question that fora period of two years, the wild-fire victims will end up bearingthe risk of future wildfires,”said Mike Danko, an attorneywho represents fire victims.

The judge overseeingPleaseturntopageA2

PG&E Corp. proposes to payhalf of its $13.5 billion settle-ment with California wildfirevictims in company shares, amove that would make victimsthe utility’s largest sharehold-ers—and jeopardize paymentsif PG&E sparks future fires.

As part of its plan to exitbankruptcy, PG&E would payfire-victim claims through atrust funded with equal partscash and stock. The trust wouldown 20.9% of PG&E’s sharesupon the company’s emergencefrom chapter 11, PG&E has said,and would gradually sell thestakes over several years tocompensate people who lostfamily members and property.

While share-funded trusts

BY KATHERINE BLUNT

Where’s Prague? Turns OutThere’s More Than One Answer

i i i

Leaders split over whether to call theircountry the Czech Republic or Czechia

The prime minister of theCzech Republic was halfwaythrough an interview inMarch when he was toldsomebody had officiallychanged the name of his coun-try to Czechia.

“You changed it? Or youchanged it?” Andrej Babis saidto his aides, swinging aroundin his chair.

One of the aides steppedforward and quietly explainedthat the U.N. had acceded to aproposal to recognize theCzech Republic under the newname.

“I didn’t know this. I don’tlike it at all,” he said, in theinterview with The Wall StreetJournal. “It’s because then youwill confuse Czechia, Chech-nya, I don’t know. I don’t likethis. We are Czech Republic.We are Czechs. And I don’tknow who came with such astupid idea. Crazy.”

The answer: the country’s75-year-old president, MilošZeman.

In the heart of Europe, thiscountry’s head of state andgovernment remain at oddsover what the Czech Republicshould be called. The row hasforced embassies and corpora-

PleaseturntopageA9

BY JESSICA DONATIAND DREW HINSHAW

TOMORROW

WASHINGTON—In a win forAmazon.com Inc., a federaljudge ordered the Pentagon onThursday to halt work on themassive JEDI cloud-computingcontract awarded to rival Mi-crosoft Corp.

Judge Patricia Campbell-Smith of the U.S. Court of Fed-eral Claims issued a prelimi-nary injunction to block thePentagon from proceeding inresponse to a lawsuit from Am-azon contending improper in-fluence from President Trump.

Mr. Trump, a Republican,has blamed Amazon founderJeff Bezos for unfavorable cov-erage of his administration inthe Washington Post, whichMr. Bezos bought in 2013. ThePost says its editorial deci-sions are independent.

Amazon, which recentlysought to depose the presi-dent, said in its motion thatMr. Trump “made crystalclear—both to the public atlarge, and by clear implicationto senior [Pentagon] officials(including his political appoin-tees)—that he did not want hisadministration to award the

The new charges amp uppressure on Huawei from theU.S., where administration of-ficials are fighting to convinceallies to lock the telecommuni-cations giant out of their nextgeneration mobile networksbecause of national securityconcerns. The U.S. has longsaid Huawei could be coercedby Beijing into using its equip-ment to spy on, or disrupt,foreign networks, which the

company denies.The new indictment, filed

in federal court in Brooklyn,N.Y., builds on allegations theU.S. leveled in January 2019accusing Huawei of financialfraud and violating U.S. sanc-tions on Iran. Federal prosecu-tors in Brooklyn said the newcharges related to a decades-long effort by Huawei and itssubsidiaries, in the U.S. andChina, to steal intellectual

property, including from sixU.S. technology companies.

The charges closely track aseries of allegations by compa-nies identifiable as Cisco Tech-nology Inc., T-Mobile US Inc.,Motorola Inc., and others doc-umented in a Wall Street Jour-nal article last year.

Prosecutors said Huawei’sefforts were successful and re-sulted in the company obtain-

PleaseturntopageA8

Huawei Technologies Co.and two of its U.S. subsidiarieswere charged with racketeer-ing conspiracy and conspiracyto steal trade secrets in a fed-eral indictment unsealedThursday, opening anotherfront in the Trump administra-tion’s battle against the Chi-nese telecommunications firm.

BY CORINNE RAMEYAND KATE O’KEEFFE

Huawei Faces Racketeering Charge

INSIDE

contract to [Amazon].”In a statement, the Pentagon

said that the ruling furtherslows the enterprise cloudproject, which has been underdevelopment since 2017.

“We are disappointed in to-day’s ruling and believe theactions taken in this litigationhave unnecessarily delayedimplementing DoD’s modern-ization strategy and deprivedour warfighters of a set of ca-pabilities they urgently need,”the Pentagon said. “However,we are confident in our awardof the JEDI cloud contract toMicrosoft and remain focusedon getting this critical capabil-ity into the hands of our warf-ighters as quickly and effi-ciently as possible.”

Amazon’s suit—and Thurs-day’s ruling—could add to the

PleaseturntopageA6

BY JOHN D. MCKINNON

Judge Puts BrakesOn Pentagon’sCloud Contract

WASHINGTON—AttorneyGeneral William Barr saidPresident Trump’s tweets andpublic statements make it “im-possible” for him to do his job,a striking criticism of thepresident in the wake of hiscomplaints about the case in-volving Roger Stone.

“I think it’s time to stop thetweeting about Department ofJustice criminal cases,” Mr.Barr said in an interview withABC on Thursday, while add-ing the president had neverasked him to intervene in anycriminal case.

His statements came afterdays of political furor inWashington sparked by Mr.Barr’s decision earlier in theweek to overrule prosecutorsat the U.S. attorney’s office inWashington who had sought aprison term of between sevenand nine years for Mr. Stone.

Mr. Stone, an informalTrump adviser, was convictedin November of lying to Con-gress and witness tampering, ina case filed by special counselRobert Mueller in his investiga-tion of Russian interference inthe 2016 presidential election.

The intervention on the sen-tencing—in which top JusticeDepartment officials orderedprosecutors to tell the courtthat the earlier recommenda-tion was excessive—promptedthe resignation of one careerprosecutor, the withdrawal ofthree others from the case andcriticism from Democrats andsome in the Justice Depart-ment that Mr. Barr had goneout of his way to help an allyof the president.

On Thursday, House SpeakerNancy Pelosi (D., Calif.) calledMr. Barr one of the Trump ad-ministration’s “henchmen” andsaid his handling of the Stonesentencing “deeply damaged”the justice system.

In the ABC interview, Mr.Barr said he had already begunthe process of amending the de-

PleaseturntopageA4

BY SADIE GURMANAND ARUNA VISWANATHA

THE FUTURE OF EVERYTHINGScientists have dreamed of fusion power fordecades. Now, startups are closer than ever to

making it a reality. R1-8

Fire Victims Rap PG&EPlan to PayWith Stock

from Senate Majority LeaderMitch McConnell and Mr.Trump, who urged senators toreject the measure, writing in atweet Wednesday that “this isnot the time to show weakness.”

The Democratic-controlledHouse has indicated it will takeup the resolution, which doesn’tprevent the U.S. from respond-ing in the event of an attack.

Thursday’s vote fell short ofthe two-thirds majority neces-sary to overcome a promised

veto by the White House. Itnevertheless again illustratedthe willingness of some Repub-licans to break from the GOPpresident on foreign policy,even if they largely remainedaligned with the administra-tion on most other issues.

In the past year, Republi-cans have joined Democrats to

PleaseturntopageA9

WASHINGTON—The Senatepassed a resolution blockingPresident Trump from usingmilitary force against Iran with-out congressional authoriza-tion, the latest bipartisan efforton Capitol Hill to rein in presi-dential war-making powers.

Eight Republicans joined theDemocrats to pass the resolu-tion in the GOP-controlled Sen-ate, 55 to 45, despite opposition

BY ANDREW DUEHREN

Senate Defies Trump on Iran

� Trump says U.S. near dealwith Taliban................................ A9

Oracle’s D.C.WeaponLobbyist puts rivaltechnology companies in theline of fire............................... A6

CONTENTSBanking & Finance B10Business News...... B3Crossword............... A11Heard on Street. B12Life & Arts....... A10-11Mansion............. M1-14

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What’sNews

� Attorney General Barrsaid Trump’s tweets andpublic statements make it“impossible” for him to dohis job, a striking criticismin the wake of the president’scomplaints about the caseinvolving Roger Stone. A1�The Senate passed a res-olution blocking Trump fromusing military force againstIran without congressionalauthorization. The WhiteHouse has promised a veto.A1� Trump said the U.S. isclose to a deal with the Tal-iban to withdraw U.S. troopsfrom Afghanistan, and theoutcome of talks would beclear in thenext twoweeks.A9� The number of new cor-onavirus cases rose sharplyafter Chinese authoritieschanged the criteria for di-agnosing the illness. A8, A9� The administration ismoving to repurpose $3.8billion in military funds forbuilding barriers alongthe U.S.-Mexico border. A4� The U.K.’s Johnson re-placed Treasury chief Sa-jid Javid, a surprise moveaimed at consolidating theprime minister’s power. A16� The House voted toeliminate the deadline foradding the ERA to theConstitution, as relatedcourt battles continue. A7� Harvey Weinstein’s leadattorney called for his ac-quittal in a closing argumentat the producer’s trial. A3� An IHS doctor was in-dicted on charges of sex-ually abusing NativeAmerican patients. A3

Huawei and two of itsU.S. subsidiaries were

charged in a federal indict-ment with racketeeringconspiracy and conspiracyto steal trade secrets. A1� A judge ordered thePentagon to halt work onthe JEDI cloud-computingcontract awarded to Micro-soft, in a win for Amazon. A1� PG&E proposes to payhalf its $13.5 billion settle-ment with California wild-fire victims in the utilitycompany’s shares. A1�GOP senators raised con-cerns over Shelton’s writ-ings and public statementsat a confirmation hearingfor the Fed nominee. A2� Barclays said U.K. regu-lators are investigatingthe professional relation-ship between CEO Jes Sta-ley and Jeffrey Epstein. B1� Tesla is facing freshregulatory scrutiny overits finances as it looks toraise more than $2 billionfrom a stock sale. B1� Airbus is boosting out-put of its bestselling single-aisle jet, moving to capitalizeon the prolonged ground-ing of Boeing’s 737 MAX. B1� U.S. stocks lost ground,with the Dow, S&P 500 andNasdaq falling 0.4%, 0.2%,and 0.1%, respectively. B11�McClatchy, the second-largest U.S. newspaper groupby circulation, filed forbankruptcy protection. B1�CanadianNationalRailwaysaid it would shut down op-erations in eastern Canadadue to blockades set up byanti-pipeline activists. A16

Business&Finance

World-Wide

A2 | Friday, February 14, 2020 * * * * THEWALL STREET JOURNAL.

risk. Some of the insuranceclaimants are hedge funds thatpurchased insurers’ claims ata steep discount and nowstand to make millions.

“How is it that the hedge-fund investors are not takingstock? That says something,”said Jason Meek, who lost hishome in the 2017 Tubbs Firein California’s wine country.

Michael Carlson, a memberof the committee representingfire victims in the bankruptcycase, said the $13.5 billion set-tlement came after months ofnegotiations with PG&E, whichhad initially offered $8.4 billionto compensate victims. Thatoffer came days before PG&Estruck an $11 billion deal withinsurance claimants, reducingthe amount of cash the com-pany could offer for a largersettlement with fire victims.

“There’s some risk, but it’son top of a very, very low of-fer,” Mr. Carlson said. “Weknow the value of what we canget out of PG&E without push-ing them into liquidation.”

The trust structure alsopresents a challenge forPG&E’s primary regulator, theCalifornia Public UtilitiesCommission. When punishingthe company for violations, ithas historically sanctionedPG&E with fines and otherpenalties whose costs can’t bepassed on to utility ratepayersand must be borne by share-holders instead. If victims be-come PG&E’s largest share-holders, they could end upbearing the regulatory costs of

well as others who would fallill in the future.

Those trusts faced a riskbecause the future number ofasbestos claims was uncertain.However, the companies hadstopped manufacturing asbes-tos products, limiting their lia-bility exposure going forward.PG&E still faces the prospectof having to pay additionaldamages if its equipmentsparks more wildfires.

“Here, you have ongoing ex-posure to the risk that causedthe problem in the first place,”said Lloyd Dixon, director ofthe Center for CatastrophicRisk Management and Com-pensation at the Rand Corp., anonprofit think tank.

PG&E has taken to pre-emp-tively cutting power in largesections of its service territorywhen strong winds threaten toblow vegetation onto livewires. It blacked out millionslast year and expects the prac-tice to continue for years.

The prospect of holding stockin PG&E, even indirectly, has be-come a major point of conten-tion among fire victims con-cerned that share prices couldfall before their claims are satis-fied. Many have now been wait-ing for years for the paymentsthey need to rebuild homes.

“Many of the victims feel,on principle, an unwillingnessto be made owners of the com-pany that burned their housesdown,” said Howard Klepper, aprotest organizer and SantaRosa resident whose home wasdestroyed in a 2017 wildfire.

U.S.WATCH

ECONOMY

Lower Energy PricesHelp Curb Inflation

A sharp drop in energy pricesslowed U.S. consumer inflationat the start of this year.

The consumer-price index—which measures changes in howmuch Americans are paying foreveryday items ranging fromclothes to grocery items—rose aseasonally adjusted 0.1% in Jan-uary, the Labor Department saidThursday. That was a smaller in-crease than in December, whenthe index added 0.2%.

Energy prices fell 0.7% fromthe previous month, with gaso-line down by 1.6% as global fueldemand ebbed amid China’s cor-onavirus outbreak.

Thursday’s report offeredother signs of slightly firmer in-flation last month.

Excluding the often volatilecategories of food and energy,so-called core prices rose 0.2%from the previous month, upslightly from the 0.1% rise in De-cember. Those prices were up2.3% from a year earlier, thesame annual increase as in theprevious three months.

—Amara Omeokwe

WHITE HOUSE

Hicks Will ReturnIn a New Capacity

President Trump’s formercommunications director HopeHicks is set to return to theWhite House where she will fo-cus on shaping the Republican’spolitical operation as he ap-proaches re-election.

Ms. Hicks left the administra-tion in February 2019 and took arole at Fox. In October, she be-came chief communications offi-cer at Fox, a new company thatincludes 21st Century Fox Inc.’sentertainment and news assetsthat weren’t sold to Walt DisneyCo.

Fox Co-Chairman Rupert Mur-doch is also executive chairmanof Wall Street Journal par-ent News Corp.

Ms. Hicks is expected to re-turn to the White House in thecoming weeks as a counselor tothe president, administration of-ficials said. She will report toJared Kushner, the president’sson-in-law and senior adviserwho is overseeing the re-electionbid. Her return was earlier re-ported by the New York Times.

—Michael C. Bender

CALIFORNIA

Religious Group SuedOver Alleged Abuse

A woman who said she wassexually abused and traffickedfiled a lawsuit in federal court inLos Angeles against La Luz delMundo, one of the largest reli-gious organizations in Mexico, andits leader, Naasón Joaquín García.

Mr. García was arrested inLos Angeles last year andcharged with more than a dozensex crimes, including rape, hu-man trafficking and child por-nography. He has pleaded notguilty.

Sochil Martin, the plaintiff inthe case, is the first to sue Mr.García or the church since his ar-rest, according to her lawyers.

The suit alleges an interna-tional conspiracy by leaders ofLa Luz del Mundo to take ad-vantage of its members sexuallyand use them for free labor. Thesuit names a number of bishopsand church leaders who Ms.Martin says abetted the abuseand human trafficking.

A lawyer for Mr. García didn’trespond to requests for com-ment on the lawsuit, nor didchurch officials.

—Ian Lovett

CLIMATE

January Was HottestOn Record for Month

Last month was the hottestJanuary since scientists begankeeping temperature records in1880, U.S. government forecast-ers said Thursday.

The global average land andocean surface temperature inJanuary was 2.05 degrees Fahr-enheit above the average Janu-ary temperatures for the 20thcentury, because of the changingclimate, the National Oceanic andAtmospheric Administration said.

In parts of Russia, Scandina-via and eastern Canada, temper-atures exceeded the old aver-ages by 9 degrees Fahrenheit.

Warmer temperatures meanmelting snow and ice. The ex-tent of Arctic sea ice was 5.3%below the average from1981-2010, and Antarctic sea icewas 9.8% below the average.

The hottest January after thesecond-hottest year on record“is one of those indications thatthings are warming dramati-cally,” said University of Illinoisclimate scientist Don Wuebbles.

—Associated Press

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LOTS OF LOVE: A crew from the YWCA delivered baskets toLewiston High School in Maine as part of a fundraiser centeredaround ‘Galentine’s Day’—the day before Valentines Day.

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The S&P 500 closed onWednesday with a gain ofjust over 0.6%. In some edi-tions Thursday, a Page OneWhat’s News item about themarkets incorrectly said theindex rose 0.7%.

Sen. Amy Klobuchar ofMinnesota was the No. 3 fin-isher in New Hampshire. Insome editions Thursday, a Page

One article about the presiden-tial primaries incorrectly saidshe was No. 3 in Iowa.

Airbus SE won a deal for 50A220 jets from Nigeria’s GreenAfrica Airways that includesunspecified options to buymore. In some editions Thurs-day, a Business & Finance arti-cle about the deal incorrectlysaid it was for 100 jets.

Readers can alert The Wall Street Journal to any errors in news articles byemailing wsjcontact@wsj.com or by calling 888-410-2667.

CORRECTIONS� AMPLIFICATIONS

the company’s mistakes.The CPUC recently reached

a $1.68 billion settlement withPG&E for its role in the recentwildfires that will require itsinvestors to fund certain fire-prevention efforts. The com-mission may have little choicebut to impose similar penaltiesgoing forward if the companyfails to make good on its safetycommitments, said Mike Flo-rio, a utilities consultant andformer CPUC commissioner.

“I don’t see how you cansuddenly flip and say we’regoing to be very good to thiscompany because it helps the

fire victims,” Mr. Florio said.The CPUC declined to com-

ment on matters pending inbankruptcy court.

It is common for cash-strapped companies facingmassive liability costs to payclaims through trusts fundedwith cash, stock and other as-sets. Dozens of companies thatonce manufactured asbestosproducts and sought bank-ruptcy protection, includingW.R. Grace & Co., funded set-tlement trusts to compensateworkers who developed cancerand other health problems, as

Fire victims are theonly major class thatPG&E proposes topay with stock.

PG&E’s bankruptcy approvedthe settlement late last year,but fire victims and othercreditors still have to vote onthe company’s reorganizationplan in the coming months, acritical step for its emergencefrom chapter 11. Californiaregulators must also approvethe plan before June 30 forPG&E to access a new statewildfire fund that the com-pany has said will help stabi-lize its financial health.

“Our focus is on getting vic-tims paid and continuing toimplement changes across ourbusiness to improve our oper-ations for the long term,”PG&E said in a statement.

Fire victims are the onlymajor class of claimants thatPG&E is proposing to pay withshares. The company hasagreed to pay more than $25billion overall to compensatefor losses from 2017 and 2018wildfires, but the other majorsettlements—with Californiagovernments and insurancecompanies—would pay thoseparties entirely in cash.

That infuriates some firevictims, who note that theother settlements carry less

ContinuedfromPageOne

PG&E toTie ClaimsTo Shares

U.S. NEWS

pursue it,” said Sen. PatToomey (R., Pa.).

Sen. Richard Shelby (R.,Ala.), the committee’s longest-tenured member and its formerchairman, said Ms. Shelton’sanswers during the hearing hadnot resolved his doubts aboutwhether she should serve. “Iam concerned,” he said.

Ms. Shelton has been a con-troversial selection because ofher history endorsing a returnto the gold standard, whichcould limit the Fed’s ability torespond to U.S. inflation andemployment, and because shehad appeared to stray fromthose long-held views afterbeing considered by the WhiteHouse for a Fed nominationlast year.

Sen. John Kennedy (R., La.),said he was undecided on hernomination. “Nobody wantsanybody on the Federal Re-serve that has a fatal attrac-tion to nutty ideas,” he said.“Now I’m not saying that’s thecase here, but that was sort ofthe dialectic going on.”

Opposition from any Repub-

licans—and especially fromMessrs. Toomey and Shelby,who are among the panel’smost senior members—coulddeliver a knockout blow to hercandidacy because Democratsappeared united in opposition.Republicans enjoy a one-votemajority in the committee.

It would be difficult, though

not impossible, for her to winSenate confirmation without afavorable committee recom-mendation. Republicans canlose no more than three votesin the Senate given that theycontrol 53 seats.

Ms. Shelton received sup-port from several other Re-publicans on the banking

panel, including the chairman,Mike Crapo of Idaho.

White House officials saidlater Thursday they were con-fident Ms. Shelton would over-come any lingering doubts towin Senate backing and dis-puted a report that she wouldwithdraw from consideration.

“I think she did very well

today, and I think she’s headedfor confirmation,” said Law-rence Kudlow, director of theNational Economic Council.

Senators from both partiesindicated no concerns withanother Fed board nominee,Christopher Waller, researchdirector at the Federal Re-serve Bank of St. Louis.

Mr. Trump has railed at theFed and its chairman, JeromePowell, over the past 18months, first for raising inter-est rates and later for not cut-ting them more aggressively.

Ms. Shelton endured criticalquestioning from all Democratson the panel. During one ex-change, Sen. Doug Jones (D.,Ala.) extracted an apology fromMs. Shelton, the former U.S.envoy to the European Bankfor Reconstruction and Devel-opment, for comparing a con-victed currency counterfeiterto civil-rights icon Rosa Parks.

While she offered contextfor some of her more contro-versial writings, Ms. Sheltonsaid, “I don’t claim to be in themainstream of economists.”

WASHINGTON—Republi-can senators dealt a signifi-cant setback to one of Presi-dent Trump’s nominees to theFederal Reserve Board whenthey raised concerns over herwritings and public state-ments at a confirmation hear-ing Thursday.

Lawmakers of both partieson the Senate Banking Commit-tee said they were uncomfort-able with at least some of JudyShelton’s policy preferences.The former adviser to Mr.Trump’s presidential campaignhas advocated for the Fed toreduce U.S. interest rates overthe past year in response torate cuts by other centralbanks and to prevent the U.S.dollar from strengthening rela-tive to other currencies.

“That’s a very, very danger-ous path to go down. Thisbeggar-thy-neighbor mutualcurrency devaluation is not inour interest, and it is not inthe mandate of the Fed to

BY NICK TIMIRAOSAND SARAH CHANEY

GOP Senators Throw Doubt on Fed Pick

Judy Shelton appeared before the Senate Banking Committee for a confirmation hearing Thursday.

ANDREW

HARRER/B

LOOMBERGNEWS

Protest organizer Howard Klepper, right, with Helen Sedwick at the site of their home, destroyed in a wildfire.

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THEWALL STREET JOURNAL. * * * * Friday, February 14, 2020 | A3

fragment were sent to a foren-sic pathologist.

Three days later, biologistswith the Florida Fish andWildlife Conservation Com-mission discovered anotherdead dolphin off the coast ofNaples. Investigators foundthat the dolphin was fatallywounded by a bullet or sharpobject, according to NOAA.

“We believe both of thosedolphins were in a begging po-sition,” said Stacey Horstman,NOAA’s bottlenose-dolphinconservation coordinator.

When dolphins are fed byhumans, they take up a beg-ging position, Ms. Horstmansaid, usually indicated by thedolphin placing its head abovewater or at a side. In thesemoments, dolphins can be 1 to2 feet from boats and are vul-nerable to attack.

Injuries suffered by a dol-phin in a begging position in-dicate a strong likelihood thatit expected food before beingattacked, Ms. Horstman said.

Last May, the Florida Fish

and Wildlife ConservationCommission found a dead dol-phin off Captiva Island, nearFort Myers, after NOAA re-ceived a tip. The dolphin hadbeen “impaled in the headwith a spear-like object whilealive,” according to NOAA.

NOAA normally sees aroundtwo cases of attacks on dol-phins each year along the GulfCoast, from the southern tipof Texas to the Florida Keys,Ms. Horstman said.

“A fed dolphin is a deaddolphin,” Ms. Horstman said.“It’s hard to convey to folksthat feeding dolphins can leadto these shocking crimes. In-teraction with humans willchange their behavior for life.”

Feeding dolphins, in addi-tion to harassing, hunting orkilling the animals, is prohib-ited under the U.S. MarineMammal Protection Act. Viola-tions can be prosecuted eitheras civil or criminal cases andare punishable by up to$100,000 in fines and up toone year in jail.

The grisly discoveries ofthree dead dolphins in thepast year in Florida haveprompted the National Oce-anic and Atmospheric Admin-istration to offer up to$20,000 for information thatleads to any person involvedin the killings.

Emerald Coast Wildlife Ref-uge experts were tipped off onJan. 27 that there was a deaddolphin on Pensacola Beach inFlorida’s panhandle. Withinhours, the nonprofit wildliferefuge sent team members toretrieve the carcass. Unsure ofthe cause of death, they putthe dolphin on ice ahead of anecropsy.

“We found a small metalfragment in the dolphin’s leftside, on the muscle, and wecontacted NOAA,” said Brit-tany Baldrica, an EmeraldCoast Wildlife Refuge coordi-nator for marine mammalstrandings. Ms. Baldrica saidphotos of the dolphin and the

BY TALAL ANSARI

Answers Sought in GrislyFlorida Dolphin Killings

Los Angeles County will va-cate nearly 66,000 marijuanaconvictions dating back to the1960s, part of a growing na-tional effort to reduce drugconvictions.

The move, announcedThursday by Los AngelesCounty District AttorneyJackie Lacey, will dismiss con-victions for tens of thousandsof individuals, the majority ofwhom are black or Latino.

“As a result of our actions,these convictions should nolonger burden those who havestruggled to find a job or aplace to live because of theircriminal record,” Ms. Laceysaid. She said she believed itis the largest mass dismissalof cannabis cases to date inCalifornia.

Of the cases, about 62,000were felony convictions thatprosecutors asked a Los Ange-les Superior Court to dismissthis week. An additional 3,700were misdemeanor possessioncharges stemming from 10 L.A.County cities.

California voters legalizedrecreational marijuana use in2016 with a ballot measurethat also made individualspreviously convicted of grow-ing, possessing, selling ortransporting marijuana eligi-ble for reduced sentences.

But the process for seekingrelief from courts has beencriticized by advocates asonerous and so far only about3% of those eligible statewidehave received it, according tononprofit group Code forAmerica.

A state law signed by for-mer Gov. Jerry Brown in 2018required the California Depart-ment of Justice to compile adatabase of individuals whomay be eligible to have theirold marijuana pot cases re-viewed—a number the depart-ment estimates to be about190,000 individuals.

BY CHRISTINE MAI-DUCAND DAN FROSCH

L.A. toDismiss66,000Pot Cases

U.S. NEWS

to an October draft from theSocial Security Administra-tion, which administers theprogram.

The draft would also raisethe age at which eligibility isrelaxed for workers with lim-ited education and skills, to 55from 50. Those factors deter-mined the eligibility of about500,000 people in 2017, abouta quarter of all applicants thatyear, according to the latestavailable data.

The age thresholds “are ob-viously from another time, anearlier time,” said Ms. Maes-tas, who studies the disabilitysystem. “Biologically, a 50-year-old today looks a lotmore like a 40-year-old 30years ago.”

On average, Americans bornin 2018 can expect to live 78.7years—about five years longerthan those born in 1978, ac-cording to government data.Death rates for people ages 50to 55 have fallen.

The shift toward a moreservice-oriented economy also

has provided more opportuni-ties for disabled people, whoare more likely to work in ser-vice occupations, such as edu-cation and administration,than in manufacturing. Ser-vices today account for 86% ofemployment, up from 72% in1978. The share of factory jobsis down to 8.5% from 22% overthe period.

New technology, includingscreen-reading software, andlegal protections under the1990 Americans with Disabili-ties Act, have improved work-place accessibility. Surveyssuggest workers are increas-ingly likely to be offered ac-commodations to help themdo their jobs.

Not everyone has benefitedfrom such changes, disabilityadvocates say, arguing there islittle justification for changingeligibility criteria.

Disabled workers withbachelor’s degrees were nearlythree times as likely to be em-ployed in 2018 than those whonever finished high school.

Better-educated older workersare also likely to be healthier.

“A truck driver who’s load-ing his truck and driving 12hours a day, day after day af-ter day, is going to have backproblems at a much earlierage than a college professor,”said Jonathan Stein, a staff at-torney with Community LegalServices of Philadelphia.

One such driver is DuaneMichaels, a survivor of non-Hodgkin lymphoma who suf-fered severe back injuries froma crash. Unpredictable sei-zures and debilitating musclespasms make it difficult tofind a job. “I just can’t predictwhether I’m going to be ableto work,” said Mr. Michaels,64, who gets disability bene-fits and would like a part-timejob to supplement his income.

Beneficiaries may work parttime, but too much incomecould make them ineligible forcontinued payments. Amongthose who collect benefits, fewdo any work.

Disability rolls swelled fol-

lowing the financial crisis asmany Americans applied forbenefits after their unemploy-ment-insurance payments andsavings ran out. The numberslater declined as the economyimproved and as administra-tive judges who had been ap-proving an unusually largenumber of claims were trainedto apply stricter criteria.

Advocates for disabledworkers say the federal pro-gram’s criteria are alreadystrict. Fewer than four in 10applicants were approved formonthly benefits, which aver-aged $1,234 in 2018, barelyabove the poverty line. In De-cember, the number of work-ers receiving benefits came to8.4 million, down from a peakof 9 million in 2014.

Ms. Jacko of the MiamiLighthouse said any changesto eligibility should be accom-panied by additional govern-ment support, such as earliercounseling to help the dis-abled find jobs so they don’thave to rely on benefits.

When Virginia Jacko beganlosing her eyesight in her 40s,she left her job as a senior fi-nancial executive at a univer-sity and enrolled in a voca-tional-rehabilitation program.Using new technology, she wassoon able to use a spread-sheet, read a financial state-ment and even pick outmatching clothes.

Fifteen years later, she ischief executive of the MiamiLighthouse for the Blind,which runs the program. Herexperience shows how ad-vances in technology andhealth care, as well as labor-market changes, have creatednew work opportunities fordisabled and older workers.

The share of disabled peo-ple ages 16 to 64 who wereworking or looking for a jobrose to 33.6% in January froma recent low of 30.2% in 2014,according to Labor Depart-ment data. Among all working-age disabled people, 20% wereemployed in 2018, the highestshare in almost two decades,according to an analysis byHarvard University economistNicole Maestas.

Miami Lighthouse studentsare trained to work alongsidepeople without disabilities,and in comparable jobs, Ms.Jacko said. “That means thatyou compete in the job mar-ket, that it is not all blind peo-ple making brooms,” she said.“We’ve moved beyond that.”

The Trump administration,citing demographic and labor-market shifts, has proposedtightening eligibility criteriafor federal disability benefits.Current rules, created in 1978,favor workers over 50 withlimited education and experi-ence because they are consid-ered less likely to adapt tonew work.

The changes would no lon-ger assume age seriously af-fects ability to adapt to sim-ple, entry-level jobs, according

BY KATE DAVIDSON

Job Picture Improves for DisabledEmployment is highestin years as technologyand labor-market shiftopen workplace doors

Carol Brady-Simmons, of the Miami Lighthouse for the Blind in Miami, waits as Marin Baumer practices walking skills with her cane.

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The Weinstein case stemsin large part from a charge ofcriminal sexual act for alleg-edly forcibly performing oralsex on Miriam Haley in 2006,and a first-degree rape chargefrom an alleged assault onJessica Mann in 2013.

He is also charged with twocounts of predatory sexual as-sault, a felony that includescommitting sex crimes againstat least two people. The jurycan only consider thosecharges if it finds the prose-cution has proved the rapeand criminal-sexual-actcharges.

Mr. Weinstein has deniedall allegations of nonconsen-sual sex.

The jury heard testimonyfrom six women who sharedgraphic and tearful sworn tes-timony about abuse by Mr.Weinstein—stories that thedefense aimed to show wouldcrumble under scrutiny.

Ms. Rotunno recounted forthe jury’s seven men and fivewomen the myriad reasonsshe said they shouldn’t be-lieve Ms. Haley and Ms. Mann.“In the end, it only comesdown to these two,” she said.

The defense team rested itscase on Tuesday, after a 30-minute discussion with Mr.Weinstein about whether hewould testify in his own de-fense. In the end, he chose notto take the stand.

Prosecutors are scheduledto deliver their closing argu-ments on Friday. The jury isexpected to begin delibera-tions on Tuesday, after a six-week trial with more than 30witnesses.

Dozens of spectatorswatched the defense closingarguments Thursday morning.

Gloria Allred, a prominentcivil attorney representingWeinstein accusers, took afront-row seat not far fromManhattan District AttorneyCyrus Vance Jr., who has beena daily presence in the court-room.

Wearing a dark suit and tie,Mr. Weinstein nodded hellofrom the defense table as sev-eral individuals walked in.

Harvey Weinstein’s defenseteam on Thursday asked aManhattan jury to find theHollywood producer not guiltyof sex crimes, saying his ac-tions might not have been re-spectable, but they were al-ways consensual.

“You don’t have to like Mr.Weinstein,” lead attorneyDonna Rotunno told jurors.“You have to remember we arenot here to criminalize moral-ity, and thank God.”

The four-hour closing argu-ment was among the finalchapters in a six-week trialthat is the most prominenttest of the #MeToo movementplaying out in the justice sys-tem. Allegations that Mr.Weinstein sexually assaulteddozens of women helped setoff a cascade of accusationsthat permeated the highestlevels of business and politics,resulting in a debate over howwomen are treated in profes-sional and private spheres.

Ms. Rotunno has cast Mr.Weinstein’s accusers as pro-fessional climbers who usedsex with Mr. Weinstein to getahead. On Thursday, she calledprosecutors overzealous andquick to play into a culturalmoment, calling them “pro-ducers” who were “writing thescript” in which women attendparties, flirt with men andmake choices to advance theircareers without consequence.

“They created a universethat strips from women com-mon sense, autonomy and re-sponsibility,” she said of pros-ecutors. “Women havechoices.”

BY DEANNA PAUL

Weinstein AttorneyArgues for Acquittal

Producer Harvey Weinstein

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A reward is being offered to find the persons involved in the killings of three dolphins in Florida.

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MMISSIONA U.S. Indian Health Service

doctor was indicted Thursdayon charges of sexually abusinghis Native American patientsat a health center in South Da-kota, deepening a crisis overthe handling of sexual miscon-duct that has consumed thefederal agency for a year.

The doctor, Pedro Ibarra-Perocier, a family medicinephysician, was indicted oneight counts of sexual abuseinvolving four adult patientsat the agency’s clinic on theYankton Sioux Reservation, inthe town of Wagner.

A lawyer for Dr. Ibarra-Perocier declined to comment.A U.S. District Court clerk inSioux Falls said he hadpleaded not guilty.

The IHS’s broader sex-abuse crisis began with reve-lations about another IHS doc-tor, Stanley Patrick Weber,who was sentenced on Mon-day to five lifetime prisonterms for sexually abusing Na-tive American boys in his care.

The IHS mishandled accu-sations about Weber datingback to the early 1990s, an in-vestigation last year by TheWall Street Journal and thePBS series “Frontline”showed.

After the Journal and“Frontline” report, the agencyoverhauled its policies for pre-venting sexual abuse and pro-tecting patients, but a govern-ment watchdog has said thechanges don’t go far enough.

“Patients and employees ofthe Indian Health Serviceshould never face sexual ha-rassment or abuse,” a state-ment provided by an IHSspokeswoman said Thursday.“We will continue to institutethe reforms necessary to cre-ate the high quality care envi-ronment that our patients andemployees should expect inour clinics and hospitals.”

BY CHRISTOPHER WEAVERAND DAN FROSCH

AnotherDoctor atIHS FacesCharges

A4 | Friday, February 14, 2020 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 * * * * * THEWALL STREET JOURNAL.

WASHINGTON—The Trumpadministration is moving torepurpose $3.8 billion in mili-tary funds for building barri-ers along the U.S.-Mexico bor-der, according to documentsreviewed by The Wall StreetJournal.

The administration, whichhas already shifted $6.7 billiontoward barrier constructionfrom across the government,is planning to divert a total of$7.2 billion of military moneytoward border-wall construc-tion this fiscal year.

The transfer takes DefenseDepartment funds slated fornew aircraft, naval ships andequipment for the NationalGuard, and puts them towardassisting the Department ofHomeland Security, accordingto the documents.

“The Department of Defensecontinues to be a steadfastpartner in our border-securitymission,” said acting Depart-ment of Homeland SecuritySecretary Chad Wolf. “Bordersecurity is homeland securityand national security.”

The Pentagon said Thurs-day that Defense SecretaryMark Esper approved thetransfer of funding after re-ceiving the request from theDepartment of Homeland Se-curity last month.

“We will continue to sup-port DHS and other agenciesas needed to keep our home-land secure,” said Lt. Col.Chris Mitchell, a Pentagonspokesman.

An administration officialjustified the move, saying allof the targeted military proj-ects would still be left withmore funding than the Penta-gon had requested for themfrom Congress last year.

Democrats criticized Thurs-day’s transfer as an attempt tobypass Congress’s appropria-tion authority.

“The Constitution givesCongress, not the president,the power of the purse. Con-gress rejected PresidentTrump’s full request for wallfunding, which is why he isnow orchestrating this back-door mechanism to prop up apolitical vanity project,” topHouse Democratic appropria-tors said.

Rep. Mac Thornberry (R.,Texas), the top Republican onthe House Armed ServicesCommittee who is retiring,was also critical of the trans-fers, writing in a statementthat it “undermines the princi-ple of civilian control of themilitary and is in violation ofthe separation of powerswithin the Constitution.”

“The reprogramming an-nounced today is contrary toCongress’s constitutional au-thority, and I believe that itrequires Congress to take ac-tion,” he said.

A partisan clash over theborder wall, Mr. Trump’s cen-tral campaign promise,sparked a historic 35-day gov-ernment shutdown last year.

BY ANDREW DUEHRENAND MICHELLE HACKMAN

PentagonTo ShiftNew FundsFor Wall

partment’s sentencing recom-mendation when “someonewalked in and told me…aboutthe president’s tweet,” in whichMr. Trump criticized the sen-tencing recommendation, call-ing it a “disgrace.”

“That sort of illustrateshow disruptive these tweetscan be for the Department ofJustice,” Mr. Barr said. He saidtweets about the case andother criminal investigations“make it impossible for me todo my job and to assure thecourts and the prosecutors inthe department that we’re do-ing our work with integrity.”

Other officials at the JusticeDepartment said the prosecu-tors involved didn’t learn ofany plan to submit a revisedfiling until after Mr. Trumppublicly criticized the originalrecommendation, leaving themwith the impression that Mr.Trump was driving the change.

Prosecutors in the case made

ContinuedfromPageOne

their recommendation in keep-ing with official guidelines,though they also have the au-thority to forgo a recommenda-tion and leave it to the presidingjudge to decide the sentence.

The attorney general’s de-fenders said that in this andother sensitive decisions, Mr.Barr is making what he be-lieves are the right calls whiledisregarding the political flakhe knows will ensue in theheated environment of Wash-ington—a point Mr. Barr madein the interview.

“I’m not going to be bulliedor influenced by any-body…whether it’s Congress, anewspaper editorial board orthe president,” he said. “I’m go-ing to do what I think is right.”

In a statement, StephanieGrisham, White House presssecretary, said of Mr. Barr’s re-marks: “The President wasn’tbothered by the comments atall and he has the right, justlike any American citizen, topublicly offer his opinions.”She added: “The President hasfull faith and confidence in At-torney General Barr to do hisjob and uphold the law.”

Mr. Barr’s critics said hisintervention in the Stone caseand many other decisionsstrongly favor the president’sinterests—such as when Mr.

Barr publicly expressed hismisgivings about Mr. Mueller’sreport. Such moves, criticssaid, erode the department’stradition of independence inlaw enforcement and poten-tially undermine prosecutorsin future cases.

Mr. Barr, 69 years old, hastold friends he isn’t driven byconcern for his reputation.

Still, Mr. Barr’s associateshad become concerned in re-

cent days about the perceptionthat he was taking directivesfrom the president on mattersincluding Mr. Stone’s sentenc-ing recommendation, a personfamiliar with the matter said.

On Thursday morning, Jus-tice Department officials con-tacted allies of the attorneygeneral to ask them to makethe case that Mr. Stone’s sen-tencing recommendation by theprosecutors had been absurd

and that Mr. Barr “could not letthis stand,” the person said.

The person characterizedthe message from the JusticeDepartment as: “It would begood to rally around the flag alittle bit.”

“He has a lot of credibilitywith the boss, so he can affordto be a little critical,” the per-son said of Mr. Barr’s state-ments about Mr. Trump. “It’snot a Sessions situation”—a

reference to Mr. Trump’s firstattorney general, Jeff Ses-sions, who was frequently thetarget of Twitter broadsidesfrom the Oval Office.

Prominent Republicans alsohave defended Mr. Barr andexpressed disapproval of Mr.Trump’s tweets. On Wednes-day, Sen. John Kennedy (R.,La.) called the Stone contro-versy the result of an “unfor-tunate miscommunication,”but said Mr. Trump’s tweet“aggravated the situation.”

A national association rep-resenting assistant U.S. attor-neys around the country issueda statement Thursday sayingthe Stone prosecutors had ap-propriately recommended aguideline sentence and warnedagainst such decisions beingmade by political appointees.

Since being confirmed ayear ago, Mr. Barr has inter-vened personally in a numberof contentious issues. He haslong advanced an expansiveview of executive authority andviews himself as a defender ofthe office of the presidencyagainst what he sees as an ero-sion of presidential power bycongressional Democrats andother Trump opponents.

U.S. District Judge Amy Ber-man Jackson is scheduled tosentence Mr. Stone on Feb. 20.

U.S. NEWS

agency’s culture, with uncom-mon testimony from CIA pro-grammers about their rarefiedworld. In the nearly threeyears since the leak, the CIAhasn’t commented publicly onthe case or the charges facingMr. Schulte.

Mr. Schulte, 31 years old,has pleaded not guilty to 11criminal counts, including ille-gal gathering and transmis-sion of national defense infor-mation, as well as obstructionof justice. A federal prosecu-tor said that Mr. Schulte wasmotivated by spite when heallegedly stole the files andgave them to WikiLeaks.

Officials have said theMarch 2017 release of thehacking arsenal, whichWikiLeaks dubbed “Vault 7,”had immediate, devastatingeffects on CIA cyber capabili-ties. One CIA witness at Mr.Schulte’s trial said the leak al-lowed targets to identify theagency’s tools “in the wild”;the unit’s secure network hadto be shut down.

One of Mr. Schulte’s law-yers, Sabrina Shroff, told thejury that the CIA’s networks

were vulnerable and that thegovernment had unfairlyblamed Mr. Schulte, who had“antagonized almost everysingle person” at the CIA. “Be-ing a difficult employeedoesn’t make you a criminal,”she added.

To address concerns aboutsecrets being divulged, U.S.District Judge Paul A. Crottyhas allowed CIA employees to

testify under pseudonyms orfirst names only. The arrange-ment has caused some awk-wardness: Witnesses and law-yers have accidentally spokenthe names of CIA employees,and have expressed concernabout inadvertently revealingclassified information incourt.

One witness, testifying un-

der the pseudonym JeremyWeber, worked closely withMr. Schulte in the cyberintelli-gence center that developedhacking tools for other units.Mr. Schulte could be difficult,Mr. Weber said, but he consid-ered him a trusted colleague.

That trust began to erodeat the end of 2015, Mr. Webersaid, when Mr. Schulte became“increasingly belligerent” atwork. Mr. Schulte had an “ex-tremely strained” relationshipwith a colleague identified incourt as Amol, according toMr. Weber. After an officeconfrontation in early 2016,Mr. Schulte filed formal com-plaints against Amol.

During her cross-examina-tion, Ms. Shroff pressed Mr.Weber about their unit’s cul-ture, describing it as male-dominated, with pranks andname-calling. She asked Mr.Weber to confirm that Amolwas annoyed by Mr. Schulte’sNerf guns and would “take theNerf darts and hide them.”

In March 2016, Mr. Schultewas moved to a new unit, achange he described as pun-ishment for his complaints

about Amol, according to anemail from Mr. Schulte pre-sented at trial. When Mr. We-ber removed some of Mr.Schulte’s administrative ac-cess to the network, Mr.Schulte restored his privi-leges, without permission.

Mr. Weber caught thebreach and told Mr. Schulte’snew boss, who testified underthe pseudonym Anthony Leo-nis. “I had a security issue onmy hands,” Mr. Leonis said. Inthe weeks that followed, Mr.Schulte continued to violatethe rules, witnesses said. Mr.Schulte left the CIA in Novem-ber 2016. On his way out, hefiled a complaint with theCIA’s inspector general, accus-ing superiors of ignoring hisconcerns about agency net-works.

On the morning of March 7,2017, Mr. Leonis testified, hewas on his way to pick up adivision chief to go to a meet-ing off-site. But in his boss’sdriveway, Mr. Leonis got a callsummoning them: WikiLeakshad published Vault 7.

—Warren P. Strobelcontributed to this article.

The cluster of cubicles onthe ninth floor of the heavilyguarded building outsideWashington, D.C., was likemany software-developmentshops. Programmers—mostlymen—teased each other,played with Nerf guns andgriped about data backups.

But there was one majordifference between this outfitand the rest of the tech indus-try, a former team membertold a federal jury last week.These programmers were Cen-tral Intelligence Agency em-ployees with top-secret clear-ances to develop tools for theCIA to penetrate the computernetworks of foreign govern-ments and adversaries. Theteam’s work was never in-tended to come to light.

In March 2017, WikiLeaksexposed much of that work, abreach of CIA cyber secretsthat led to espionage chargesagainst one of those program-mers, Joshua Adam Schulte.Now, Mr. Schulte’s federaltrial in Manhattan is sheddinglight on a slice of the spy

BY REBECCA DAVIS O’BRIEN

Trial Shows Slice of CIA Culture

Agency developerstestified about aculture of Nerf gunsand office drama.

Rep. Ro Khanna (D., Calif.),who is Mr. Sanders’s nationalcampaign co-chairman,stressed the senator’s sup-port on Fox News Wednesday.

“So he is building the typeof coalition that can reallydefeat Donald Trump. AndTrump actually understandsit,” Mr. Khanna said. “I mean,Trump understands thepower of crowds, he under-stands the power of havingan online following. And he isright to recognize that BernieSanders is the person on theother side who’s buildingthat.”

After the New Hampshireresults came in, Mr. Sanderstold supporters that “this vic-tory here is the beginning ofthe end for Donald Trump.”

He later added: “Our cam-paign is not just about beat-

ing Trump, it is about trans-forming this country.”

Polling shows Mr. Sanders,whose campaign didn’t re-spond to a request for com-ment, performing similarly toothers in the Democratic racein hypothetical matchups withMr. Trump. A recent WSJ/NBCpoll showed Mr. Sanders lead-ing Mr. Trump 49% to 46%.

For months, the Trumpcampaign has openly relishedthe prospect of runningagainst Mr. Sanders, seekingto elevate him with commen-tary suggesting he was beingdisenfranchised by the Demo-cratic Party.

People with knowledge ofcampaign and White Housethinking said Mr. Sanders wasviewed as the Democraticcandidate who generated sig-nificant voter enthusiasm,

with his highly motivatedbase of support. While theyconsider him beatable andmany said they welcome thecontrast, some also character-ized him as a candidate whocould appeal as Mr. Trumpdid in 2016.

But Trump’s allies also ar-gue that Mr. Sanders’s poli-cies may lean too far left formuch of the electorate, partic-ularly suburban voters.

“He’s always been my firstchoice” to run against, saidformer 2016 Trump campaignaide Barry Bennett. “I justthink he is the starkest con-trast. … I just don’t think thata candidate that far left hasmuch appeal outside of Cali-fornia and New York.”

Democratic strategist JimManley said Mr. Sanders pro-vided a lot of opportunities

for Republicans to attack.“I get the idea that Team

Trump is going to go low nomatter who we put up, but Ifor one think Sen. Sanders isgoing to be a really target-rich environment for a lot ofTrump folks, starting with thepresident,” he said. But headded: “They need to takehim seriously because justlike Trump, he’s got a move-ment around him, and he’svery good at painting his op-ponents as the enemy.”

Just how this face-off couldaffect the electoral map re-mains uncertain. Mr. Sandersis viewed as a strong con-tender in some key battle-ground states, includingMichigan and Wisconsin,which Mr. Trump captured in2016 with a similar messageon trade.

WASHINGTON—PresidentTrump’s advisers are ponderingthe prospect of facing offagainst another antiestablish-ment candidate armed with gi-ant rallies, loyal supporters andbold promises.

As Bernie Sanders gainsstrength in the Democraticpresidential primary, Mr.Trump’s aides and allies largelywelcome a general electionmatchup with the self-avowedsocialist. Still, some also ac-knowledge that the Vermontsenator, who narrowly won theNew Hampshire Democraticprimary this week and leads innational polls of the Demo-cratic nomination contest,would enter the race with mo-mentum and some key similari-ties to Mr. Trump.

Mr. Trump said as muchTuesday in the Oval Office, byway of criticizing former NewYork City Mayor MichaelBloomberg. “Frankly, I’d ratherrun against Bloomberg thanBernie Sanders, because Sand-ers has real followers—whetheryou like him or not, whetheryou agree with him or not,” Mr.Trump said.

Both Mr. Trump and Mr.Sanders have attracted passion-ate supporters, who flock totheir rock-concert like rallies.That similarity was on displayon the eve of the New Hamp-shire primary, when Mr. Trumpand Mr. Sanders held duelingrallies in the state. The presi-dent drew more than 11,000supporters in Manchester andthe senator more than 7,500 inDurham.

To the president, a politicaloutsider who sees his massiverallies and loyal base as key tohis electoral strength, Mr.Sanders’s crowds are notewor-thy. Like Mr. Trump, the sena-tor is also a nontraditional fig-ure who argues he can expandthe electorate by energizingnew voters with his message.

BY CATHERINE LUCEY

Trump Sizes Up Sanders as an Opponent

Democratic candidate Bernie Sanders greeted supporters at Southern New Hampshire University on the night of Tuesday’s primary.

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Attorney General William Barr speaking at a sheriffs’ conference in Washington on Monday.

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THEWALL STREET JOURNAL. Friday, February 14, 2020 | A5

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Oracle spendsmore on lobbying, as a proportion of revenues,thanmany of its larger tech rivals.

Note: Companies are required to disclose only the money they spend to influence members ofCongress directly; they don’t make public the sums they spend on other activity to sway publicpolicy, such as research, media relations and advertising.

Source: Lobbying disclosure reports compiled by the nonpartisan Center for Responsive Politics

2019 lobbying spending

Million

0

5

10

15

$20

Oracle Google Amazon Facebook

Spending as a percentageof revenue

0.030

0

0.010

0.020

%

Oracle Google Amazon Facebook

Journal’s owner, has lobbiedfor some of the same policychanges as Oracle, includingurging the EU to take antitrustenforcement action againstGoogle.

Mr. Glueck hardly fits thestereotype of a powerful lob-byist. He favors jeans andsneakers and drives a 2014Ford F-350 pickup truck. He israrely spotted schmoozing atfancy steak dinners.

A graduate of the Univer-sity of Hartford, Mr. Glueckgot his start in politics work-ing as field director for thefirst U.S. Senate campaign ofthen-Democrat Joe Lieberman.

He worked for a tech tradeorganization before hiring onwith Oracle in 1996. Aroundthat time, Mr. Ellison was en-couraging the federal govern-ment to conduct an antitrustinvestigation into Microsoft.

Others say Oracle shouldfocus more on competing inthe marketplace. Oracle is “theposter child for much ofwhat’s wrong with tech advo-cacy in the U.S.,” said Tim Wu,a Columbia University lawprofessor and a former Fed-eral Trade Commission officialwho has been an advocate forstronger antitrust enforce-ment. “It amounts to usinggovernment as a weapon todelay, annoy and extract valuefrom other entities.”

“Oracle spends substan-tially less on lobbying thanGoogle, Amazon, Microsoft orFacebook,” retorts Mr. Glueck.“So we clearly walk in thefootsteps of giants.”

Google spokesman JoséCastañeda said, “While ourprivacy policy is clear—wedon’t sell your personal infor-mation to anyone—Oracle runsone of the world’s largest databrokers, claiming to give ac-cess to ‘$3 trillion in consumertransaction data’ and ‘two bil-lion global consumer pro-files.’ ”

Amazon, Microsoft Corp.and Facebook declined to com-ment.

Some of the public-policyissues Mr. Glueck has workedon don’t directly affect Oracle,such as the law curbing legalprotections for internet plat-forms. Oracle didn’t qualify asa finalist in the cloud-comput-ing bidding but mounted acampaign to scotch Amazon’schances nonetheless.

News Corp, The Wall Street

executives of roughly twodozen tech companies atTrump Tower in New York. Atone point, Jared Kushner, Mr.Trump’s son-in-law, was withMs. Catz and Larry Page,Google’s co-founder and then-CEO of Alphabet.

When Mr. Kushner askedMr. Page if he knew Ms. Catz,the Google co-founder replied:“Yes, she sues me,” accordingto officials at Google and Ora-cle who heard about the ex-change.

Ms. Catz responded, “Well,he steals from me.”

Mr. Kushner told Mr. Pagethat Oracle is tough and sug-gested that he settle the mat-ter, the officials said.

A spokesman for Mr. Kush-ner said he couldn’t recall butdidn’t dispute the episode.Spokespeople for Ms. Catz andMr. Page declined to comment.

Mr. Glueck has been lobby-ing federal and state officialsin the U.S. to open antitrustand privacy investigations ofGoogle. He spoke regularlywith U.S. antitrust regulators,including Makan Delrahim,who runs the Justice Depart-ment’s antitrust division, andwho briefly worked for Mr.Glueck as a lobbyist at an out-side law firm.

The Google antitrust inves-tigation remains in its earlystages. This month, Mr. Delra-him recused himself from theantitrust investigation becauseof prior legal work he haddone for Google while in pri-vate practice. He declined tocomment.

Mr. Glueck says his successcomes from doing his home-work and developing a narra-tive for decision makers ingovernment.

Mr. Glueck’s effort to pre-vent Amazon from winningthe Pentagon’s computing con-tract turned a bureaucraticgovernment-procurement pro-cess into a battleground. Ama-zon’s cloud-computing unit,which has a dominant marketshare in the private sector, haswon much of the federal gov-ernment’s cloud business atother agencies.

When Mr. Glueck read thePentagon’s request for propos-

Much of Mr. Glueck’s workin the Microsoft probe was be-hind the scenes. Better-knownis an episode known as “trash-gate.”

A private detective workingon behalf of Oracle paid jani-tors in Microsoft’s Washingtonoffice building to give him thecompany’s trash. The episodelanded in news stories thatembarrassed Oracle. Mr.Glueck said the dumpster div-ing was unauthorized. Oracle’sefforts yielded evidence thatMicrosoft was secretly under-writing nominally independentanalysts who publicly sup-ported the personal computingpioneer’s arguments.

Microsoft lost the antitrustcase. Hanging on Mr. Glueck’soffice wall is a framed news-paper front page with theheadline, “Judge Orders Micro-soft Breakup, Calls Company‘Untrustworthy.’ ” On appeal,the breakup was overturned,but restrictions were imposedon Microsoft.

Years later, Oracle set itssights on Google.

In 2010, Oracle filed a copy-right-infringement lawsuit ac-cusing Google of improperlyusing Oracle’s code to createGoogle’s Android operatingsystem for phones, a chargeGoogle denies. That case isslated to be heard by the U.S.Supreme Court next month.

Oracle hasn’t been shyabout addressing the lawsuitoutside the courtroom. Abouta month after the 2016 elec-tion, Mr. Trump met the chief

als, he believed it favored Am-azon because it called for spe-cific capabilities that onlyAmazon possessed, such asdata centers 150 miles apart.“The RFP had a gold swish onit,” he said in an interview, re-ferring to the Amazon smilelogo.

He learned that severalthen-Pentagon officials had al-leged financial ties to Amazon.

The conflict-of-interest alle-gations landed in a federallawsuit Oracle filed in Decem-ber 2018 challenging the Pen-tagon’s contracting process.To depict the conflicts, he de-signed a one-page flow chartentitled, “A Conspiracy ToCreate A Ten Year DoD CloudMonopoly.”

Mr. Glueck’s campaignspurred four separate legisla-tive actions imposing restric-tions on the Pentagon con-tract, an inspector general’sinvestigation and at least adozen letters from members ofCongress to the Pentagon andWhite House.

A letter from Rep. SteveWomack, an Arkansas Republi-can, illustrates the strings Mr.Glueck pulled.

Mr. Womack’s letter wasdrafted by a member of Mr.Glueck’s team, Joshua Pitcock.A former top aide to VicePresident Mike Pence, Mr. Pit-cock left evidence of his au-thorship in the properties ofthe electronic document re-viewed by the Journal. Theletter complained that the bidwould go to a single vendorand asked why the Pentagonwas “rushing to issue” the fi-nal request for bids.

Mr. Pitcock couldn’t bereached for comment. Mr.Glueck said he had nothing tosay about the letter.

With minor changes, Mr.Womack and 13 colleaguessent the Oracle-drafted letterto the Pentagon. A few monthslater, Mr. Womack’s politicalcommittee received the maxi-mum contribution allowed in acycle for individuals from Mr.Glueck; his boss Ms. Catz; andtheir spouses, a total of$10,800.

Mr. Womack’s spokes-woman, Alexia Sikora, said thecongressman acted solely outof his “serious concerns withthe many well-documentedmisgivings and flaws of theJEDI program.”

In late 2018, Oracle sued tochallenge the bidding process.A judge threw out the case inJuly 2019. But Mr. Glueckdidn’t give up.

The brightly colored docu-ment Mr. Glueck had createdfeatured pictures of two menMr. Trump considered ene-mies: Jeff Bezos, the AmazonCEO, and Jim Mattis, the for-mer defense secretary.

On July 18, Mr. Trump toldreporters: “I’m getting tre-mendous complaints about thecontract with the Pentagonand Amazon.”

A few days later, Mr. Trumpretweeted a segment of a FoxNews show airing criticism ofAmazon without comment.

Within days, Defense Secre-tary Mark Esper announced hewould review the contract.The Defense Department’s in-spector general already wasreviewing the bidding process.Mr. Glueck sent Mr. Esper a15-page, 6,200-word letteroutlining his objections.

Before results of Mr. Es-per’s reviews were concluded,the Pentagon awarded thecontract to Microsoft.

On Thursday, a federalcourt granted Amazon’s re-quest to put a temporary halton the contract.

U.S. NEWS

WASHINGTON—KennethGlueck took a road trip to Dur-ham, N.C., a few years agohoping to prove Google waspeering far deeper into thepersonal lives of consumersthan they realized.

He purchased a new mobilephone with Google’s Androidoperating system, put it in air-plane mode, disabled the WiFiand stuck it in the glove com-partment of his pickup truck.

During the weekend trip,his phone tracked not just hisroute and destination, butreams of valuable data, suchas barometric pressure thatcould determine what floor ofa shopping mall he was on.When he later connected tothe internet, the phone sent acatalog of its travels back toGoogle. He shared his resultswith federal lawmakers whowere drafting privacy legisla-tion, now pending, that couldrestrict tech giants’ ability touse such consumer informa-tion to sell advertising.

Mr. Glueck isn’t a consumeradvocate. He is Oracle Corp.’stop Washington lobbyist—anda major force behind the in-creased government scrutinyof leading technology compa-nies. Mr. Glueck has proddedfederal antitrust regulators toinvestigate whether Google isviolating competition laws. Helobbied Congress to curb thesweeping legal protectionstech firms enjoy for the infor-mation flowing over their net-works. He unearthed conflict-of-interest allegations thathindered Amazon.com Inc.’sefforts to win a huge cloud-computing contract from theDefense Department.

Not long ago, Washingtonlobbying featured pitched bat-tles between business and la-bor unions or consumergroups. Now, some of the big-gest fights pit companyagainst company. Few havemastered the game like Oracle.Co-founded more than fourdecades ago by Larry Ellison,the corporate-database pio-neer has been eclipsed in sizeby consumer-facing giantssuch as Google parent Alpha-bet Inc., Amazon and FacebookInc. When it comes to sway inWashington, Oracle punchesabove its weight.

Unlike many tech firms, Or-acle’s top executives havestrong ties to the Trump ad-ministration and Republicanlawmakers. Two top Oracle ex-ecutives—Mr. Ellison and CEOSafra Catz—are longtime Re-publican donors. Ms. Catz wasconsidered for a top job in Mr.Trump’s White House. Nextweek, Mr. Ellison is hosting agolf fundraiser on his RanchoMirage, Calif., estate for Mr.Trump’s re-election campaignand the Republican NationalCommittee.

Oracle also has a potentweapon in Mr. Glueck, whomanaged to get himself on thepresident’s transition teameven though he was a Demo-crat during the Obama admin-istration before changing hisaffiliation to Republican.Friends and detractors alikeacknowledge Mr. Glueck isamong the most skilled andaggressive at persuading pol-icy makers to rein in othertech firms.

“You know a lot of lobbyistsin town who are relationshiplobbyists,” said former AT&TInc. top lobbyist Bob Quinn.“Ken is way more substantive[and] hands-on than most.”

By James V. Grimaldi,BrodyMullins

and John D. McKinnon

Oracle Lobbyist Fans Anti-Tech Flames

Kenneth Glueck, Oracle’s top Washington lobbyist, left, walks in the background along with the company’s chief executive, Safra Catz,wearing a scarf, as they head to a meeting with President-elect Donald Trump in New York’s Trump Tower in December 2016.

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sonal and political ends.”The president called last

summer for an investigation ofthe Pentagon contract, beforethe award.

“I’m getting tremendouscomplaints about the contractwith the Pentagon and Ama-zon,” Mr. Trump said at thetime. “I will be asking them tolook very closely to see what’sgoing on.”

Mr. Trump also issuedtweets in which he complainedabout the process. The WhiteHouse didn’t respond to a re-quest to comment Thursday.

Amazon’s complaint alsocites a passage of a recentbook by a former speechwriterfor then-Defense SecretaryJim Mattis.

Author Guy Snodgrasswrote in the book, “Holdingthe Line,” that Mr. Trump di-rected Mr. Mattis to “screwAmazon” out of the JEDI con-tract by blocking its chance tobid on the deal. “Mattis de-

murred,” he said.Steven Schooner, a George

Washington University lawprofessor, said the judge’s rul-ing on Thursday is unusualand could bode well for Ama-zon’s prospects.

“What is particularly signif-icant is that…the court is sig-naling that it is more likelythan not that the plaintiff—here, Amazon—has pled a casein which it appears to be enti-tled to a remedy and may ulti-mately prevail on the merits,”Mr. Schooner said.

Amazon’s cloud unit, AWS,was long considered the favor-ite to win the Joint EnterpriseDefense Infrastructure, orJEDI, contract, which is valuedat as much as $10 billion overthe next decade.

The company’s bid wasclouded by conflict-of-interestallegations, however, which arestill under investigation by thePentagon’s inspector general.Amazon filed suit to block the

the work to make sure thosewho serve our country can ac-cess the new technology theyurgently require,” Microsoftspokesman Frank X. Shawsaid.

Development of the JEDIcontract began in earnest in2017 following a visit to Seat-tle and Silicon Valley by Mr.Mattis, who met with Mr. Be-zos among others on the trip.As the JEDI proposal tookshape, some potential biddersfor the contract, including Or-acle Corp., began to complainthe contract was tailored spe-cifically for Amazon.

Oracle executives and oth-ers also began digging into fi-nancial and other connectionsbetween Amazon and severalthen-Pentagon officials whohad some involvement in vari-ous aspects of the deal.

Defense officials ultimatelysided with Amazon, conclud-ing the ties didn’t affect theintegrity of the procurement.

But the Pentagon ultimatelyruled that Microsoft was morequalified for the job. Amazoneventually filed suit to blockthe contract in the U.S. Courtof Federal Claims.

Joshua Schwartz, a co-di-rector of George WashingtonUniversity’s government pro-curement law program, saidAmazon still faces an uphillclimb in its efforts to deposeMr. Trump.

But he said Amazon’s com-plaint of undue political influ-ence could lead the court topay more attention to thecompany’s separate allegationsthat the Pentagon unfairlychanged some of its criteriafor deciding the JEDI award.

While companies often con-test contract awards by thePentagon and other govern-ment departments, it is rarethat they then sue or secure areversal of the initial decision,according to two lawyers notinvolved in this case.

questions being raised by crit-ics about Mr. Trump’s willing-ness to weigh in on govern-ment business.

In a recent statement, Ama-zon said that “PresidentTrump has repeatedly demon-strated his willingness to usehis position as president andcommander in chief to inter-fere with government func-tions—including federal pro-curements—to advance hispersonal agenda…The questionis whether the president of theUnited States should be al-lowed to use the budget of theDoD to pursue his own per-

ContinuedfromPageOne

Judge PutsBrakes onCloud Deal

contract award in December.The Defense Department re-

cently filed a motion to dis-miss several of Amazon’sclaims concerning Mr. Trump’salleged interference, contend-ing that the company hadwaited too long to raise them.

Amazon didn’t respond to a

request to comment.In a statement, Microsoft

said it was confident it wouldultimately prevail and retainthe contract.

“While we are disappointedwith the additional delay webelieve that we will ultimatelybe able to move forward with

Amazon’s cloud unitwas long consideredthe favorite to winthe JEDI contract.

Congressman Steve King during a 2018 hearing on Google.

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LOOMBERGNEWS

THEWALL STREET JOURNAL. Friday, February 14, 2020 | A7

used by the Supreme Court insex discrimination cases, andaffect legal rulings on issuesincluding the pay gap betweenmen and women and workplaceaccommodations for pregnantwomen, among others.

The amendment’s modern-day opponents say it isn’tneeded, citing the 14th Amend-ment, which guarantees all citi-zens the equal protection ofthe laws. They also focus onpotential ramifications forabortion legislation, includingmeasures restricting federalfunds for abortions, which theyworry could be struck downunder the ERA because onlywomen can get pregnant.

House Republican leadershipencouraged members to voteagainst the resolution Thurs-day. The vote comes as theconference is focused on in-creasing the number of womenin its ranks, with just 13 GOPwomen this session.

The decades-old deadline isthe reason some Republicanssaid they opposed the measure,though, in the Senate, GOPSens. Lisa Murkowski of Alaskaand Susan Collins of Mainesupport a resolution removing

Countries with lower in-comes or with less healthspending would presumablypay less for drugs, accordingto the study. Canada’s pricesare 35% and its per capita in-come 78% of the U.S. level, thestudy found.

If Canada’s prices were 78%of U.S. prices, “total revenuesfor innovative drugs in Canadawould have been $27.2 billioninstead of the actual $12.2 bil-lion,” the study said. Applyingthat methodology to all thecountries examined, the Coun-cil of Economic Advisers esti-mates global drug-companyrevenue would have been $194billion, or 42%, higher in 2017.

Although foreign drug man-ufacturers also suffer from un-derpricing, the cost is bornedisproportionately by the U.S.because it funds roughly halfof all global medical research,invests 75% of global medicalventure capital and accountsfor 70% of patented pharma-ceutical profits, the study said.

Some outside experts chal-lenged the assumptions under-lying the study. Patricia Dan-zon, a professor of health-caremanagement at the Universityof Pennsylvania’s WhartonSchool, attributed the pricedifference to manufacturers’ability to raise prices in theU.S., not governments’ abilityto keep them down abroad.

She said because insurersor taxpayers cover most of thecost of a drug in the U.S., con-sumer demand is price-insen-sitive, “so prices just go upwithout limit.”

Medicare, she noted, is pro-hibited from negotiatingprices. Pharmacy-benefit man-agers and private plans cannegotiate when there are simi-lar competing drugs, she said.But they have limited negoti-ating power for specialtydrugs. Foreign governmentsstudy a new drug’s benefit andnegotiate prices “that reflectthat differential benefit,” shesaid.

WASHINGTON—Foreigngovernments are taking unfairadvantage of American drugcompany research and U.S.consumers by artificially sup-pressing drug prices abroad, anew study from the WhiteHouse said.

The findings suggest drugpricing could become anothersource of friction between theU.S. and trading partners.

“Stringent government un-derpricing in foreign countrieshas substantially increasedforeign free-riding on theUnited States,” said the reportfrom the White House Councilof Economic Advisers, whichwas released Thursday. “Theresult is a slower pace of over-all innovation, less competi-tion from new entrants, andthus higher prices paid forpatented drugs that lack ther-apeutic competition.”

The study compared theprices of 200 top-sellingbranded drugs in the U.S. and15 other developed countries.It concluded that Europeanprices on top-selling drugs areabout 32% of U.S. prices andthat the difference has wid-ened: They were 51% of U.S.equivalent prices in 2003.

The difference between U.S.and foreign drug prices hasbeen widely noted and oftencited by advocates of Wash-ington doing more to reduceprices. The White House pa-per, however, argued pricing isamiss abroad, not in the U.S.

In other advanced econo-mies, according to the study,the government acts as thesole purchaser of medicine,thereby exercising monopsonypower—the ability to pay be-low the competitive marketprice because sellers can’t goelsewhere.

If foreign governmentsdon’t intervene, that doesn’tnecessarily mean pricesabroad would match those inthe U.S., the study said.

BY GREG IP

White House StudySays Drug PricesSuppressed Overseas

U.S. NEWS

WASHINGTON—The Housevoted to eliminate the deadlinefor adding the Equal RightsAmendment to the Constitu-tion, though the court battlecontinues over the validity ofthe ratification time limit Con-gress once set.

The resolution passedThursday by a vote of 232-183,with five Republicans joiningthe Democratic majority. Itisn’t likely to be taken up inthe GOP-led Senate, where ithas limited Republican support.

“This is an historic day. Ahappy day as the House takesaction to move our nationcloser to the founding—ourfounding ideal that all are cre-ated equal,” House SpeakerNancy Pelosi (D., Calif.) said onthe House floor.

The effort to pass the ERAhas seen a revival, as morestate legislatures have voted toratify the 24-word amendmentto the Constitution that says“equality of rights under thelaw shall not be denied orabridged by the United Statesor by any state on account ofsex.”

It was first passed by Con-gress in 1972, and after an ex-tension, states had 10 years tosecure the three-fourths su-permajority needed to ratifythe measure, though propo-nents argue Congress has thepower to lift the deadline. Thebattle will likely find its way tothe Supreme Court.

“The existence of a deadlinehas been used by those whodon’t favor constitutionalequality as a reason not to pur-sue it,” said Rep. Abigail Span-berger (D., Va.). Because con-stitutional amendments arerelatively rare, there is little le-gal precedent guiding disputesover the state ratification pro-cess and deadlines.

Virginia became the 38thstate to vote to ratify the ERAlast month, reaching the three-fourths required to amend theConstitution.

The ERA’s proponents be-lieve that having gender equal-ity spelled out in the Constitu-tion could change the standard

BY NATALIE ANDREWS

House Gives ERA a Push

Speaker Nancy Pelosi lauded the vote to cut the deadline for passing the Equal Rights Amendment.

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take it up again. Rep. CarolMiller (R., W.Va.) declined todiscuss her position.

The U.S. Justice Depart-ment’s Office of Legal Counsel,which advises the executivebranch, said in an opinion lastmonth that the ERA’s deadlinehas long since expired.

the deadline, along with mostmembers of the Democraticcaucus.

“It’s unconstitutional be-cause the deadline passed,”said Rep. Cathy McMorris Rog-ers (R., Wash.), declining to sayif she would support theamendment should Congress

Expiration Date’sValidity Is Disputed

Whether the Equal RightsAmendment has an expirationdate is a matter of dispute.

Nearly five decades ago, abill proposing the Equal RightsAmendment passed the Houseand then the Senate by the con-stitutionally required two-thirdsmajorities and was sent to thestates in 1972 for ratification.

In the text of the bill that in-cluded the amendment, but notin the amendment itself, Con-gress set an expiration date ofseven years from passage, adate that was later extended byCongress to June 30, 1982. Be-cause there was no deadline in

the language of the amendmentsent to state legislatures, it hasremained an open debate overwhether the deadline was valid,or if Congress could eliminate it,as the House voted to do onThursday.

When the revised deadlineexpired in 1982, 35 of the neces-sary 38 states had ratified theamendment. The Constitutionrequires three-quarters of statesto ratify an amendment, a markthat was reached this yearwhen Virginia became the 38thstate to ratify the ERA, but put-ting the spotlight back on theexpiration question.

Adding another wrinkle: Sev-eral states have voted to with-draw their ratification of theERA, raising questions aboutwhether such a step is valid.

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A8 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

WORLD NEWS

Prosecutors said Huawei obtained nonpublic intellectual property about robotics, cellular-antennatechnology and internet-router source code. Above, the company’s store in Shenzhen, China.

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more public-health investiga-tions, such as by tracking downpatients’ contacts, which areneeded to contain the outbreak.

The vast majority of Thurs-day’s newly confirmed cases—13,332—were retroactively re-classified. But the broader clas-sification rules mean the dailyrise in the number of newcases could continue to gainbecause more undiagnosedcases might come to light.

Zhong Nanshan, head of aNational Health Commissiontask force on the virus, soughtin recent days to alleviate pub-lic fears by saying the outbreakmight peak before March.

On Wednesday, just hoursbefore Hubei health authoritiesannounced their new numbers,China’s official Xinhua NewsAgency touted a drop in thenumber of daily new confirmedcases. Xinhua noted it hadsteadily fallen from nearly4,000 on Feb. 4 to just over2,000 on Tuesday, citing Na-tional Health Commission data.

Goldman Sachs Group Inc.,

market opened with the DowJones industrials popping.

The Thursday jump in casesthreatens to damp that opti-mism, though experts remaindivided on whether it changesthe longer-term outlook.

Goldman, in a note after thenew figures were released,said that while the sharp risedoesn’t imply a renewed accel-eration in the spread ofCovid-19, as the disease isknown, it would be “theoreti-cally possible” to see otherchanges to the definition ofcases in Hubei again or otherprovinces in the future.

Authorities don’t yet have anaccurate estimate of the numberof infected people in Wuhan,Chen Yixin said earlier thisweek. Mr. Chen, a top law-en-forcement official from Beijinghelping oversee the crisis inWu-han, added that “the base num-ber of potentially infected Wu-hanmay still be relatively large.”

John Nicholls, a coronavi-rus expert and clinical profes-sor of pathology at the Univer-

sity of Hong Kong, said thatthe “change in criteria doesn’tmean that there is a rise in theactual infections” but rather itis “casting a wider net to pickup what the true incidence ofthe infection is.”

Mr. Nicholls, however,warned that the reclassificationof earlier cases in Hubei will“provide a challenge for retro-spective analysis of data,” mak-ing it more difficult to get asense of the larger trajectory ofthe coronavirus’s spread.

Hubei province’s Thursdaytally of 242 deaths included 135patients who had been onlyclinically diagnosed with thecoronavirus. It didn’t count anyearlier deaths that had beenonly clinically diagnosed.

Excluding Hubei province,the rest of China has continuedto see a steady drop in thenumber of new cases, reportingjust 312 Wednesday for a ninthstraight day of declines.

Still, the outbreak could bemore severe than figures sug-gest. Unlike Hubei, other parts

pointing to those figures, toldclients in a note Wednesdaythat “the spread of the virushas slowed, as the number ofnew confirmed cases nation-wide has gradually declined.”Shortly after, the U.S. stock

UpwardRevisionReported coronavirus casesjumped after authorities inHubei province changed thecriteria for counting patients.

New cases per day, globally

Source: Johns Hopkins

15

0

3

6

9

12

thousand

Jan. 21 Feb. 13

New cases of the coronavi-rus rose sharply after Chineseauthorities changed the crite-ria for diagnosing the illness,raising questions about howsoon the outbreak will peak.

On Thursday, health officialsin Hubei province, the epicenterof the infections, announcedthe largest one-day jump incases—14,840 on Wednesday,about nine times the number ofnew cases a day earlier. Epide-miologists, government officialsand investors might now needto recalibrate their projectionsfor the trajectory of a virus thatremains little understood.

In recent days, investors hadpushed U.S. stocks to recordsas Chinese officials toutedgains in the fight against thefast-spreading illness that hasgripped central China for thepast month, fixing their atten-tion on one number—a drop inthe growth rate of new infec-tions—that suggested the viruswas running out of steam.

Such a dramatic surge incases as announced Thursday islikely a one-off. It reflects theshift in how Hubei province au-thorities are classifying pa-tients as having clinically con-firmed infections after they arediagnosed by a doctor, such asthrough an X-ray, rather thanjust counting those patientswho have positive laboratoryidentification of the virus.

The new practice isn’t astandard way to diagnose thepresence of a specific virus.

“This does not represent asignificant change in trajectoryof the outbreak,” said MichaelRyan, executive director of theWorld Health Organization’sHealth Emergencies Program.He called the jump in cases “anafter-fact of reporting.”

Dr. Ryan said the movewould allow authorities to do

of China still require eithergene sequencing or lab teststo confirm the pathogen,meaning not all cases may bebeing detected and tallied.

Initially, health authorities inHubei province had counted apatient as a confirmed infectioncase only if a laboratory testprovided pathogenic evidenceof the virus. Questions aroundthe reliability of the test, how-ever, pushed authorities tobroaden their criteria to in-clude clinical diagnoses, inwhich doctors can confirm acase based on symptoms.

In a document circulated tohospitals across China lastweek, the National HealthCommission updated its casecategories for Hubei to sepa-rate clinically diagnosed casesout from suspected cases. Hu-bei patients whose chest scanshowed signs of pneumoniawould be included in this cate-gory, while those whose chestscan didn’t would remain assuspected cases.

Hubei’s health commissionsaid the goal was to let morepatients be treated as con-firmed cases, so that morecould be cured. Officials spentthe past few days combingthrough suspected cases, thestatement said, to identify thethousands of cases added to theprovince’s confirmed tally onThursday, which now stands atmore than 48,000 cases.

At the same time, Hubei be-gan blanket screening using thelooser diagnostic standards,picking up patients with feverwhose chest scans showed lunginfections, and sending them todesignated hospitals.

Only 20% to 30% of all pneu-monia cases can be proven intesting to be linked to anypathogen, Tong Zhaohui, a re-spiratory disease doctor fromBeijing Chaoyang Hospital, toldChina’s state broadcaster.

The policy shift was moti-vated in part by a recent in-crease in hospital capacity inWuhan, including two newlyopened prefabricated hospi-tals, according to Hu Yang, arespiratory diseases expertbased in Shanghai.

—Betsy McKayand Fanfan Wang

contributed to this article.

Jump in Virus Cases Fuels NewWorriesChange in countingleads to sharp rise;some question whenthe outbreak will peak

Medical workers check on patients in Wuhan. Authorities don’t yet have an accurate estimate of how many people are infected there.

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ByWenxin Fan andNatasha Khan in HongKong and Chao Dengin Wuhan, China

petitive advantage, accordingto prosecutors.

Huawei called the newcharges unfounded and unfair.“This new indictment is partof the Justice Department’s at-tempt to irrevocably damageHuawei’s reputation and itsbusiness for reasons related tocompetition rather than lawenforcement,” the companysaid. “The ‘racketeering enter-prise’ that the governmentcharged today is nothing morethan a contrived repackagingof a handful of civil allegationsthat are almost 20 years old.”

Huawei has said it doesn’tspy for any government and is

committed to complying withlaws in global markets. “Werespect the integrity of intel-lectual property rights—forour own business, as well aspeer, partner and competitorcompanies,” it said in a state-ment to the Journal last year.

Huawei is the world’s big-gest telecommunications man-ufacturer and a leader in next-generation 5G networks. TheTrump administration has re-stricted U.S. suppliers fromworking with Huawei and pres-sured European allies to stopdoing business with it. Lastmonth, the U.K. agreed to con-tinue to allow Huawei equip-

ment to be used in the noncoreparts of its latest 5G networkbuild-out, sparking widespreadconcern in Washington.

Thursday’s indictment alsomakes new allegations aboutHuawei’s involvement in coun-tries subject to stiff U.S. eco-nomic sanctions such as Iranand North Korea.

Prosecutors said the defen-dants shipped Huawei goodsand services to sanctionedcountries, often using local af-filiates. Internal Huawei docu-ments used code names forsuch places, including “A2” forIran and “A9” for North Korea,according to prosecutors.

Huawei unofficially oper-ated a company called SkycomTech Co. to obtain goods andtechnology from the U.S. foruse in Iran in violation of U.S.sanctions, according to the in-dictment. The company couldthen claim it didn’t knowabout any illegal acts commit-ted by Skycom on its behalf,the indictment said.

Huawei also helped Iran’sgovernment by installing sur-veillance equipment to moni-tor, identify and detain pro-testers during the 2009antigovernment demonstra-tions in Tehran, the indict-ment alleged. A spokesman forIran’s mission to the UnitedNations didn’t respond to a re-quest to comment.

Huawei employees also took

steps to conceal its involve-ment in North Korea, accord-ing to prosecutors.

The new trade-secret theftcharges come more than 15years after U.S. companiesfirst began alleging the Chi-nese firm had stolen theirtechnology. The Trump admin-

istration is now taking up theissue and framing it as part ofa broader global debate overnational security and Chinesecompanies like Huawei.

The Journal last year re-ported claims that Huawei’stransformation from a little-known Chinese firm to aglobal juggernaut came at theexpense of U.S. businesses.

The article also detailed al-legations that Huawei’s corpo-rate culture was driven by thecompany’s top leaders, andthat alleged wrongdoingwasn’t the result of rogue em-ployees.

Cisco, identifiable as com-pany 1 in the latest indict-ment, in 2003 accused Huaweiof copying its software and

manuals. The firm’s generalcounsel flew to Shenzhen toconfront founder Ren Zhengfeiwith evidence of Huawei’stheft, which included typosfrom Cisco’s manuals that alsoappeared in Huawei’s, theJournal reported.

Mr. Ren gave a one-wordresponse: “Coincidence.”

A Cisco spokesman declinedto comment on the indictmentand earlier said the companydoesn’t disclose informationabout private meetings.

Huawei settled the suit inJuly 2004, after admitting ithad copied some of Cisco’srouter software.

CNEX Labs Inc., a chipstartup identifiable as com-pany 6 in the indictment, in2018 filed a lawsuit againstHuawei that was particularlynotable because the firm al-leged Eric Xu, Huawei’s rotat-ing chairman, participated ina conspiracy to steal its tech-nology.

Prosecutors repeated theallegation in the new indict-ment. Huawei acknowledged inthe civil case that Mr. Xu “wasin the chain of command thathad requested” informationabout CNEX, but it deniedwrongdoing. A jury in Junefound Huawei had stolenCNEX’s technology but de-clined to award damages.

CNEX declined to commenton the new charges.

ing nonpublic intellectualproperty about robotics, cellu-lar-antenna technology and in-ternet-router source code. Thealleged thefts allowed thecompany to cut costs and re-search-and-development de-lays, giving it an unfair com-

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HuaweiFaces U.S.Charges

Huawei calls theindictment anattempt to damageits reputation.

THEWALL STREET JOURNAL. Friday, February 14, 2020 | A9

The country’s prime minister and president are at odds overwhat the nation should be called, forcing others to choose sides.

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Democratic Sens. Tim Kaine, left, Tammy Duckworth and Tom Udall supported the resolution.

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BY JAMES T. AREDDY

Crisis Tests China’s Usual Economic Fix

China has had an abrupt drop in consumer spending and business activity, seen on this nearly deserted street in Wuhan on Thursday.

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Mr. Xi reaffirmed those tar-gets Wednesday, state mediareported.

Short of declaring the out-break contained, authoritieshave few policy tools to ad-dress the near-term economicchallenges. They have toldbanks to extend loan termsand requested that commerciallandlords consider rent reduc-tions. Premier Li Keqiang saidauthorities would cut red tapeand the State Council thisweek prominently signaledgovernment attention to smallenterprises and jobs.

The central bank haspledged more than $40 billionin special bank lending and inthe past two weeks pumped$380 billion into domesticmoney markets, part of abroader effort to keep the fi-nancial system from seizingup. Stocks stabilized as a re-sult.

SHANGHAI—China haspumped billions of dollars intoits financial system, raised ex-pectations of an interest-ratecut and pledged to reduce redtape in a bevy of emergencyresponses to the economic hitof its coronavirus outbreak.

But there is nothing typicalabout China’s coronavirus chal-lenge, which economists saydefies traditional prescriptionsfor dealing with an economicshock. None of the measuresannounced so far, they say, canoffset the abrupt drop in con-sumer spending and disruptedbusiness activity in China.

When an economy suddenlystumbles, as China’s has in re-cent weeks, governments typi-cally spend money to spur de-mand and keep growth going.

Slashing interest rates, onegovernment tool, works to re-lieve stressed corporate bal-ance sheets and spur borrow-ing for investments inproperty, factories and equip-ment. Tax cuts and state sub-sidies aim to boost spendingon consumer goods and hiring.Earmarking government fundscan inspire confidence.

But money won’t end thework stoppages and materialshortages now hobbling theChinese economy.

Workers are hunkering downto avoid contagion, so goodsaren’t being produced or deliv-ered. Traffic is backed up at cityand provincial borders as au-thorities enforce health checks.Travel is limited countrywide.

The problem, experts say, isthat regardless of consumerand corporate demand, ashortage of supply renders tra-ditional stimulus measurespowerless to address the prob-lems weighing on the $14 tril-lion economy.

“Expansionary fiscal andmonetary policies, which aremainly aimed at resolving in-sufficient demand, cannot stopdeceleration of GDP growthcaused by the epidemic,”China Finance 40 Forum, agovernment-backed think tank

in Beijing, warned on Sunday.“If companies aren’t open,

and workers are hundreds ofmiles from workplaces, lowerinterest rates and fiscal spend-ing won’t do much good,” saidMark Williams, the chief Asiawatcher at Capital Economics.

President Xi Jinping andChina’s governing State Coun-cil Wednesday underlined thecore problem in a spray of get-back-to-work directives.

The State Council said thatwhile the province of Hubei,where the coronavirus firstemerged, still needs to focuson controlling the epidemic,other parts of the countryshould “promote the resump-tion of production and produc-tion in an orderly manner.”

Not everyone is heedingsuch calls. The obstacle to anyquick restart: Workplaces riskspreading the disease. White-collar workers are doing theirjobs largely from home, damp-ing demand for many goods.Many blue-collar workers are

unable to leave their home vil-lages for faraway factory jobs.

Industrial outages remainwidespread as a result of ahodgepodge of local regula-tions aimed at containing thevirus, the American Chamberof Commerce in Shanghai said.Other hurdles remain, too.

“A big question is whetherthe factories have enoughmasks, hand disinfectant andother supplies to help protecttheir employees from the coro-navirus infection,” said thechamber’s president, Ker Gibbs.

The overall pause in businessactivity has prompted econo-mists to repeatedly mark downtheir expectations for Chinesegrowth. The gross domesticproductmay contract in the firstquarter from last year’s fourthquarter, more economists say,and sag toward 2% on a year-over-year basis—a rate that justtwo weeks ago appeared overlypessimistic to many.

Assuming lockdowns in cen-tral China are lifted in April,

most economists expect thedamage to Chinese growth tobe limited, with GDP growthfalling to around 3% to 4%from a year earlier in the firstquarter, from earlier forecastsfor above 5% growth.

The sudden pause in growthcasts doubt on Mr. Xi’s politicalgoals for 2020, which include

eliminating poverty and dou-bling overall GDP from a decadeearlier. China needs to maintaingrowth near 6% for 2020 forBeijing to claim victory in itstarget of doubling GDP since2010, though anything belowlast year’s 6.1% would be abouta three-decade low.

tions to choose sides in a low-key and passive-aggressivenaming contest.

President Zeman prefersCzechia, a centuries-old namethat he said sounds nicer, andmore evocative. Just as Frenchpeople come from France, notthe French Republic, he be-lieves Czechs come from Cze-chia. When new ambassadorsarrive at the presidential of-fice to present credentials, thehead of state uses the oppor-tunity to exact a pledge:“Promise me you will call itCzechia,” one Western diplo-mat recalled being told, as Mr.Zeman held his hand in an ex-tended handshake.

“I am strongly against,”

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said Mr. Babis, the prime min-ister, whose stationery retainsthe name Czech Republic. Mr.Babis heads the governmentand constitutionally holdsmore power than PresidentZeman.

“The prime minister has adifferent opinion than thepresident. This is freedom anddemocracy. That is all,” saidthe president’s spokesman JiříOvčáček.

The United Nations offi-cially calls the country Cze-chia, as does internet giantGoogle. In communities suchas online guide Wikitravel,contributors are changing thename back and forth with in-creasing frequency. At the mo-ment, the name appears as the“Czech Republic.”

The nation’s embassy inAustralia has taken a diplo-matic approach. It is celebrat-ing 2020 with what its web-site calls “The Year of Czechiain Australia,” which it hopes“will bring joy to friends andenthusiasts of the Czech Re-public in Australia.”

The U.S. State Departmentacknowledges the short namebut continues to refer to thecountry as the Czech Republicin all public communications.

“We rarely use the shortname and personally I can’tremember the last time I haveused it in my remarks,” U.S.Ambassador Stephen King saidrecently. “I know that in all of-ficial communications we useCzech Republic as do I believemost Czechs.”

Other nations are just ig-noring Mr. Zeman’s directive.

The British ambassador tothe Czech Republic, Nick Ar-cher, said there isn’t even anydiscussion about whether tostart using the name Czechia.English soccer fans certainlyhaven’t got the memo: Duringqualifiers for the Euro 2020tournament, Google searchessurged for “Czech Republic”and not “Czechia,” every timethe country played England,

according to Google Trends.Overall, Google Trends

shows that searches for the“Czech Republic” have stilloutnumbered Czechia about20 to 2 this year.

The Czech debate is the lastbattle remaining from whatacademics called The HyphenWar of 1990, when theCzechoslovak Socialist Repub-lic fell.

Slovak politicians used theopening to demand the coun-try adopt a hyphen in itsname, to signal Czechs andSlovak equality: The Czecho-Slovak Republic. Then-Czecho-slovak President Vaclav Havelaccepted the name change,over Czech complaints.

The two sides were debat-ing the name until Czechoslo-vakia, after 74 years as a na-tion, broke apart in 1993—intothe Czech Republic and Slova-kia. That year, the Termino-logical Committee of theCzech Office for Surveying,Mapping, and Cadaster namedit Czechia, an English versionof the Czech word Česko. The

nation’s Senate recommendedministries start using Czechiain 2004. Most Czechs contin-ued to call it the Czech Repub-lic.

All was quiet until 2013,when Mr. Zeman won thepresidency.

One of his first items ofbusiness was the namechange. By 2016, Mr. Zemanhad convinced the governmentto send a notification to theU.N. to start using the newname in official documentsand databases.

A U.N. information bulletinpublished at the time claimedthat the first recorded use ofthe name Czechia was in 1634in Latin, centuries before thecountry even existed. The U.N.hasn’t updated its social me-dia accounts even though ithas had four years to makethe changes.

“We don’t have that prob-lem,” said Slovak PresidentZuzana Čaputová in an inter-view next door in the capitalBratislava last year. “Becausewe’re Slovakia.”

LeadersDividedOver Name

challenge the Trump adminis-tration on several foreign-pol-icy measures. Nearly 130House Republicans voted tooppose Mr. Trump’s decisionto withdraw troops from Syrialast year. Bipartisan majoritiesin the House and Senate alsohave approved resolutionsthat aimed to withdraw U.S.support for a Saudi-led coali-tion in Yemen and block armssales to Saudi Arabia. Mr.Trump vetoed both of them.

In addition, the Housevoted last month to repeal theauthorization for the use ofmilitary force in Iraq.

Sen. Tim Kaine (D., Va.), theauthor of the resolutionpassed Thursday, made a num-ber of changes earlier thisyear to the legislation, includ-ing focusing it on presidentialauthority broadly and not Mr.Trump, to attract GOP sup-port. Mr. Trump’s decision tokill Iranian Maj. Gen. QassemSoleimani last month raisedalarms among many Demo-

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crats that heightened tensionswith Tehran could lead to abroader conflict.

“While the president doesand must always have the abil-ity to defend the United Statesfrom imminent attack, the ex-ecutive power to initiate warstops there,” Mr. Kaine said.“An offensive war requires acongressional debate and vote.This should not be a contro-versial proposition.”

Opponents of the legislationwarned it could hamstring theTrump administration’s abilityto combat Iranian influence inthe Middle East and possiblyexpose the U.S. to further hos-tilities. After Gen. Soleimani’sdeath, Iran launched about adozen ballistic missiles at mil-itary facilities in Iraq whereU.S. troops were stationed.More than 100 U.S. troops suf-fered brain injuries.

“With China and Russiawatching, is it really a goodidea to suggest that we’re will-ing to let a middling powerlike Iran push us around? Thisself-flagellation and self-limi-tation would be tantamount tosnatching defeat from the jawsof victory,” Mr. McConnell (R.,Ky.) said.

War-powers legislation isprivileged, meaning Mr.McConnell cannot stop it fromcoming to the floor.

Mr. Trump wrote on Twit-

ter: “If my hands were tied,Iran would have a field day.Sends a very bad signal.”

White House advisers noti-fied members of Congress ofthe strike against Gen. Solei-mani just as the attack wasgetting under way, angeringsome lawmakers over the lackof consultation with Congress.Subsequent briefings on Capi-tol Hill from top administra-tion officials helped catalyzeRepublican support for Mr.

Kaine’s resolution.Sens. Mike Lee (R., Utah)

and Rand Paul (R., Ky.) werecritical of how the officials, in-cluding Defense Secretary MarkEsper, responded to lawmakers’questions about the strike andsoon afterward said they wouldsupport the legislation.

Beyond Messrs. Lee andPaul, two libertarian critics ofexecutive military authority,the other Republicans whosupported the measure were:

Sens. Lamar Alexander of Ten-nessee, Bill Cassidy of Louisi-ana, Susan Collins of Maine,Jerry Moran of Kansas, LisaMurkowski of Alaska and ToddYoung of Indiana. Democraticsenators running for presidentwere in Washington for thevote Thursday.

“This resolution is muchneeded and it is long over-due,” Ms. Collins said. “It is, asmy colleagues have said, im-portant to reassert the legisla-

tive branch’s role regardless ofwhich party occupies theWhite House.”

The Senate passed a num-ber of amendments to the leg-islation before it passed thechamber. They included mea-sures commending Mr. Trumpfor ordering the killing of Gen.Soleimani and acknowledgingU.S. troops have suffered braininjuries from the Iranian mis-sile attack.

Lawmakers defeated anamendment from Sen. TomCotton (R., Ark.) that Demo-crats had warned would effec-tively kill the legislation.

The House passed lastmonth a similar piece of legis-lation aimed at mandating thecongressional authorizationbefore the president could or-der a military strike againstIran. But Democrats draftedthe House legislation as a “con-current resolution,” which pre-vents the president from veto-ing it but also complicates itslegal force. The Senate hasn’ttaken up the House measure.

House Speaker Nancy Pelosi(D., Calif.) said the chamberwould take up the Senate billafter a weeklong recess nextweek. “I think that the legisla-tion is good, it’s a little differ-ent from ours, but we will takeit up when we return in thenext work period,” she said ata news conference.

Trump IsChallengedOn Iran

WASHINGTON—PresidentTrump said Thursday the U.S.is close to signing a deal withthe Taliban to withdraw U.S.troops from Afghanistan, andthat the outcome of negotia-tions would be clear in thenext two weeks.

It was the first time Mr.Trump has acknowledged theU.S. was close to an accordwith the Taliban since talksfell apart last September,when both sides were on thecusp of a deal.

“We shouldn’t be there. It’stime to come home,” Mr.Trump said in a podcast inter-view with Geraldo Rivera.

Officials familiar with thetalks have said that the U.S.and Taliban are expected to an-nounce a period of reduced vio-lence in the country as soon asthis week. The reduction of vi-olence is intended to serve as ashow of good faith. If success-ful, the deal could be signed inDoha later this month.

The U.S.-Taliban deal is onlya first step toward a peacedeal in Afghanistan. The realtest will be whether the Tali-ban and the Afghans are ableto reach an agreement on howto run the country after theU.S. is gone. The Taliban haverefused to engage with the Af-ghan government, insisting ona deal with the U.S. first.

The Taliban offered to re-duce violence as a concessionafter Mr. Trump abruptlywalked away from the talkslast September, blaming thedecision on an attack thatkilled a U.S. soldier in Kabul.Mr. Trump announced a re-sumption in talks about twomonths later.

There currently is a total ofabout 13,000 U.S. troops left inAfghanistan.

BY JESSICA DONATIAND CATHERINE LUCEY

PresidentSays U.S.,TalibanNear Deal

� Alibaba takes hit fromcoronavirus.................................. B4

Traditional ways ofaddressing economicshock can fall shortin an atypical crisis.

A9A | Friday, February 14, 2020 * * THEWALL STREET JOURNAL.

Singapore sovereign-wealthfund GIC Pte. Ltd. has pur-chased a stake in Brooklyn’s In-dustry City in a deal that putsa valuation of more than $1.3billion on the sprawling rede-velopment of New York’s larg-est privately owned industrialproperty, according to peoplefamiliar with the matter.

GIC, which is one of theworld’s largest real-estate in-vestors, is buying an undis-closed portion of the stake inthe Sunset Park property cur-rently owned by investmentfirm Angelo Gordon, the peo-ple said. The deal doesn’t af-fect Industry City’s other own-ers: Belvedere Capital RealEstate Partners, Jamestown LP,and investors Rubin Schronand Abraham Fruchthandler.

GIC’s investment and thenew valuation is the latest stepfor a project that has beengaining traction as a hub ofmanufacturing, creative, tech-nology and other businesses.About 550 mostly small busi-nesses employed 8,000 workersthere as of October, comparedwith 150 businesses and 1,900jobs in 2013, Industry City says.

The deal comes as a rezon-ing effort by Industry City en-ters a critical phase. The re-zoning—which would allow thedevelopers to increase theamount of retail, and add class-rooms and three new buildingsto the existing 16—is scheduledto go before the City PlanningCommission next week. If thecommission approves the re-zoning, the City Council likelywould vote on it in May.

Some Sunset Park residentsand advocacy groups areagainst the rezoning. They haveraised concerns about gentrifi-cation, echoing the oppositionthat met Amazon.com Inc. whenit proposed a campus in LongIsland City. Amazon scrappedthat plan a year ago, intensify-ing the city’s battles over large-scale new developments.

Unlike the proposed Ama-zon project, Industry City isn’tgetting any special city subsi-dies. The developer also saysit has set up job-training pro-grams for local residents andhas made some concessions,including reducing the amountof new retail and eliminatingproposed hotels in the plan.

New York City CouncilmanCarlos Menchaca, a BrooklynDemocrat who represents the

area where Industry City is lo-cated, says he is “prepared tovote no.” He said in Octoberthat more time is needed “tocraft a rezoning plan that pro-tects and uplifts our most vul-nerable neighbors.”

Brooklyn Borough PresidentEric Adams is expected to takea position on the plan beforethe Planning Commission meet-ing next week.

Even if the city denies therezoning, Industry City wouldbe able to keep growing byadding the kinds of businessesthat have been operatingthere, said Andrew Kimball,Industry City chief executive.

He declined to comment onGIC but said that any new in-vestment in the project is “goodnews, which is a reflection of theprogress the project has made.”The rezoning would create thou-sands of jobs targeted at com-munity residents, he added.

Industry City is part ofwhat used to be the massiveBush Terminal complex serv-ing businesses in shipping,warehousing and manufactur-ing. Messrs. Fruchthandler andSchron began accumulatingthe Industry City site in the1980s and 1990s, but ran intofinancial problems in the wakeof the 2008 financial crisis.

A venture of Angelo Gordon,Jamestown and Belvederebought a 50% stake and recapi-talized Industry City in 2013.Angelo Gordon, which was ad-vised by a Cushman &Wakefieldteam led by Douglas Harmon,still holds a stake in the projectafter the GIC sale. GIC didn’t re-spond to a request for comment.

BY PETER GRANT

SingaporeFund BuysIndustryCity Stake

GIC deal puts avaluation of morethan $1.3 billion onthe Brooklyn site.

Downstate, then flew in fromout of state to save Mr. Spen-cer’s life, according to Dr. Renz.

Mr. Spencer’s attorney,Joshua Fogel, said the state-ments contained in Dr. Renz’semail are alarming. Mr. Fogelhas been retained to investi-gate the care and treatmentreceived by Mr. Spencer for apotential lawsuit.

A spokeswoman for SUNYDownstate, speaking on behalfof the university’s affiliatedhospital and two other sur-geons employed at SUNYDownstate who were named aspart of Mr. Spencer’s care

team in the exhibit email, saidprivacy rules prevent themfrom discussing a patientwithout their consent. Shesaid SUNY Downstate can’tcomment on specifics involv-ing continuing litigation.

“If our hospital uncoversmisconduct of any kind thatthreatens patients’ safety, wewill move swiftly and firmly toinvestigate and take appropri-ate actions to ensure it neverhappens again,” she said.

Dr. Gruessner also has suedSUNY Downstate, alleging hewas stripped of his role aschairman of the department

after he raised similar con-cerns to Dr. Renz’s.

Mr. Spencer walked out ofSUNY Downstate weeks afterwhat appeared to be a success-ful pancreas-kidney transplant.

He said he received regularcheckups where he was assuredeverything was fine. But on histhird checkup in January 2019,he said, a blood test showedsomething amiss.

He returned to SUNY Down-state’s hospital, he said, wherehe fell outside and was read-mitted that day.

From there, Mr. Spencersaid, he doesn’t know what hap-pened during his subsequentsurgeries, except that a part ofhis new pancreas was removed.

Mr. Spencer said readingthe exhibit in Dr. Renz’s law-suit was the first time helearned details about what mayhave occurred during his post-transplant surgical care.

He said SUNY Downstateonly would provide his medi-cal records to him upon hishospital discharge, and his fa-ther is trying to obtain themon his behalf.

A spokeswoman for SUNYDownstate said hospital policy“specifically provides for pa-tients to have access to theirmedical records.”

A medical-disclosure policyprovided by the SUNY Down-state spokeswoman indicatesthat adverse events should bedisclosed to patients “as soonas reasonably possible, typi-cally within 24-48 hours afterthe error occurred or unantici-pated/adverse is discovered.”

Dr. Renz, through his attor-ney Peter Weidman, said he isunable to comment on specificconversations with a patient,

but that: “After surgery, I meetwith every patient to discussthe operation performed, re-view the findings, and thepost-operative care plan.”

“Every attempt is made toinform caregivers identified bythe patient of the findings andoutcome of a patient’s surgeryin person or by phone,” Dr.Renz said through his attorney.

Steve Hyman and JonathanJeremias, lawyers representingDr. Gruessner, said in a state-ment that transplants arecomplex and can be life-threat-ening. They said Dr. Gruessnerand his medical staff meetwith every patient to reviewan operation plan and post-op-erative care, and that evalua-tions and assessments are con-ducted during daily rounds.

Dr. Gruessner’s attorneysconfirmed Mr. Spencer and Dr.Renz’s account of his initialsurgery and the life-threaten-ing complications, includingfollow-up surgeries.

“Were it not for Dr. Gruess-ner and Dr. Renz undertakingan emergency return to Brook-lyn to operate, this patient’scondition would have been fa-tal,” the statement said.

An attorney for Dr. Gruess-ner also said a third surgeon,who wasn’t included in Dr.Renz’s email to SUNY Down-state leadership, operated onMr. Spencer before Drs.Gruessner and Renz arrived.

After his last surgery, Mr.Spencer cycled in and out ofSUNY Downstate to two otherhospitals and ultimatelymoved from SUNY Downstateto the Bronx rehabilitation andnursing home on Jan. 7, 2020.He doesn’t know when hemight be released.

Omar Spencer got a call onChristmas Eve 2018 saying adeceased donor had beenidentified for his pancreas andkidney transplant. He checkedinto SUNY Downstate’s affili-ated teaching hospital thatevening.

Thirteen months later, Mr.Spencer, 37 years old, is in arehabilitative home in theBronx. He is paralyzed fromthe waist down and says hedoesn’t know how his trans-plant led to paralysis.

The turn of events leadingup to Mr. Spencer’s paralysisare part of a lawsuit—filed notby him, but by a surgeon whowas on his care team. The sur-geon, John Renz, accused theState University of New Yorkand SUNY Downstate MedicalCenter of firing him after hereported concerns about pa-tient safety and deaths in theorgan-transplant surgery pro-gram.

“The morning of the sur-gery, I prayed with all of themfor a clean and healthy recov-ery and this is what hap-pened,” Mr. Spencer said dur-ing a recent interview.

An email sent by Dr. Renzto a SUNY Downstate adminis-trator is an exhibit in the law-suit. In the email, Dr. Renz al-leged that one surgeonabandoned Mr. Spencer in theoperating room during anemergency post-transplantsurgery, while another surgeonwas brought in to finish thesurgery but couldn’t.

Dr. Renz and his colleague,Rainer W.G. Gruessner, the for-mer chairman of the Depart-ment of Surgery at SUNY

BY MELANIE GRAYCE WEST

Patient at Center of Lawsuit Seeks Answers

GREATER NEW YORK

thority, a bistate agency, hasstruck with airlines and privateterminal operators at JFK.

The deals are part of aplanned $13 billion overhaul ofthe airport’s roadways, taxi-ways and terminals, champi-oned by Gov. Andrew Cuomo.

The governor’s top appoin-tee to the bistate agency, PortAuthority executive directorRick Cotton, noted Thursdaythat JFK scores low marks invirtually every passenger sur-vey ranking.

The Port Authority has setaside $1 billion toward over-hauling the airport’s central in-frastructure. Private firms areexpected to cover the remain-ing costs.

Roel Huinink, chief executive

of the company operating Ter-minal 4, said in an interviewthat initially his firm had moreambitious expansion plans thatwould have extended the termi-

nal across the south side of theairport. But the company, JFKInternational Air Terminal,lost out in 2018 to neighboringTerminal 1 in a competition forland at the 5,000-acre airport.

Instead, Terminal 4 is em-barking on a more modest ex-pansion and renovation of whatis currently the airport’s mostmodern terminal.

Beginning this fall, the firmwill overhaul Terminal 4’s road-ways and its main terminalbuilding, revamp its retail anddining areas and extend itseastern concourse, adding 16new gates. The expansionwould allow Delta Air LinesInc., a minority stakeholder inthe company, to consolidate allof its services into the terminal.

“Sometimes you have to takeyour loss and find new oppor-tunities,” Mr. Huinink said.“And I think we did.”

The airport’s six current ter-minals are each run by a differ-

ent airline or private operator.By the time the overhaul is

complete, around 2025, the air-port is expected to have fourexpanded terminals. The PortAuthority says the new termi-nals will be easier to navigateand will provide an improvedpassenger experience.

Mr. Cotton previously haspromised to transform JFK intoa destination unto itself.

Terminal 4, which opened in2001, served more than one-third of JFK’s 60 million pas-sengers last year. In 2023, itmust absorb more than 5 mil-lion additional passengerswhen Delta moves out of Ter-minal 2 to make way for its de-molition pending the eastwardexpansion of Terminal 1.

The owner of New York’sJohn F. Kennedy InternationalAirport has approved a $3.8 bil-lion expansion of its busiestterminal.

Board members of the PortAuthority of New York and NewJersey, at a meeting in lowerManhattan, voted in favor of alease amendment allowing theprivate operator of Terminal 4to proceed with the moderniza-tion and expansion plan.

Terminal 4 handled 22 mil-lion passengers last year, mak-ing it one of the busiest entrypoints into the U.S.

The agreement with the ter-minal’s operator is the last in aseries of deals that the Port Au-

BY PAUL BERGER

JFKTerminal Expansion Approved

22MNumber of passengers handledby Terminal 4 last year

Omar Spencer was living in Brooklyn and attending college before his transplant. He is now paralyzed from the waist down and recovering at a Bronx facility.

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without a contract since April,will receive 2% retroactive in-creases. They also will get a 2.5%boost in July, and a 3% raise inSeptember 2021. The new con-tract expires in January 2023.

The contract also rewardsprincipals working at schoolsdesignated as “hard to staff”by schools Chancellor RichardCarranza. Under the newterms, principals would see arise of between $10,000 and$15,000 a year.

The negotiations lasted 10months as the union foughtfor paid family leave and forthe hiring of additional assis-tant principals because of thecity’s move toward less-puni-tive school-discipline policies,said Henry Rubio, executivevice president of the union.

“This is a fair and historiccontract that begins to ad-dress pay disparity for princi-pals at all school levels andprovides well-deserved time

for our members to spendwith their own families,” Mr.Rubio said in an interview.

The new parental-leaveterms give members 25 daysoff at their full salary to beused at any time following thebirth or adoption of a child. Be-fore, school administrators hadto use vacation or sick days.

Mr. Rubio said administra-tors remain concerned aboutschool-discipline reform butare encouraged by new con-

tract terms that would allowprincipals to hire assistantprincipals focused primarilyon school safety.

“With this agreement, weare ensuring our schools re-tain top talent and our em-ployees get the fair wages andbenefits they deserve,” MayorBill de Blasio said.

The contract, which hasbeen approved by the union’sexecutive board, must be rati-fied by members.

New York City officials andthe union representing schooladministrators reached a tenta-tive agreement on a three-yearlabor contract Thursday that in-cludes pay increases totaling7.5%, paid family leave andmoremoney for principals working in“hard to staff” schools.

Members of the Council ofSchool Supervisors and Admin-istrators, who have worked

BY LEE HAWKINS

NYC School Administrators Reach Labor Deal

NY

THEWALL STREET JOURNAL. * * Friday, February 14, 2020 | A9B

Sen. Michael Gianaris, a Queens Democrat, spoke at a Long Island City demonstration against the Amazon deal in November 2018.

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ignore, particularly because ofthe down-home feel of the in-strument and how it connectsto the opera’s folksy flavor.

“It lends some authentic-ity,” said Mr. Kuney, who alsoplays guitar and mandolin.

Moreover, Mr. Kuney notes,the jazz-influenced Gershwinwas no stranger to the banjo.The instrument was widelyused in the jazz of the com-poser’s time. He cites the factthat “Rhapsody in Blue,” argu-ably Gershwin’s most famoussymphonic work, features abanjo, though Gershwin de-ferred the actual orchestrationof the piece to Ferde Grofé.

As for why the banjo is usedso sparingly in the opera, DavidRobertson, conductor of theMet production, says the pointis to give a special instrumentits place in the piece ratherthan let it overwhelm the score.

“It’s like when a great chefknows to use those threestrands of saffron,” Mr. Rob-ertson said.

Even though banjo partsare rare in opera, Mr. Kuneyisn’t a complete stranger tothe Met. He has played the in-strument in productions ofother works, such as JohnHarbison’s “The Great Gatsby”

and Kurt Weill’s “Rise and Fallof the City of Mahagonny.” Healso has played mandolin for afew operas staged at the Met.

Mr. Kuney has classicalroots—he studied double bass,composition and music theoryin his youth—and knows hisway in a symphonic setting.He regularly plays guitar andother instruments with theNew York Philharmonic. Healso is a frequent presence inthe pit orchestras of Broadwaymusicals, most recently in therevival of “Hello, Dolly!”

Mr. Kuney has found his wayinto film as well: He playedmandolin in the soundtrack ofthe 1979 Oscar-winning movie“Kramer vs. Kramer” and evenappeared briefly in the film asa street performer.

Mr. Kuney says it is all partof the life of a New York free-lance musician. He is particu-larly grateful for his opportuni-ties to play banjo at theMet andelsewhere, notwithstanding theoccasional kidding he gets aboutwhether he also can play musicfrom the film “Deliverance,” astaple for the instrument.

It just comes with the terri-tory, Mr. Kuney observes. “Whatyou need to play the banjo is asense of humor,” he said.

The banjo has long been as-sociated with folk and countrymusic, an instrument whosetwangy sound suggests a lifeof back-porch pleasures andhomespun tradition.

But for Scott Kuney, it is aninstrument that can hold itsown across a wide musicalspectrum and deserves a placein most any venue, includingone of New York’s grandeststages: the Metropolitan Opera.

Mr. Kuney, 68 years old, isthe banjo player for the Met’snew and widely acclaimedstaging of “Porgy and Bess,”the 1935 work, with music byGeorge Gershwin, that tells thestory of life in a black commu-nity in Charleston, S.C. Theproduction, which has playedto sold-out audiences since itpremiered in September, endsits run on Saturday.

Mr. Kuney’s part in the op-era amounts to no more thanabout five minutes of music—mainly as part of the accom-paniment for Porgy’s buoyantsignature number, “I GotPlenty o’ Nuttin,’” which issometimes referred to as the“banjo song.”

But the moment is hard to

BY CHARLES PASSY

Banjo Player Brings FolksyFlavor to the Met Opera

A year after Amazon.comInc. abandoned its plans to builda campus in Queens, state law-makers who opposed the projectare looking to rein in the subsidyprograms that New York City of-ficials used to lure the company.

Senate Deputy MajorityLeader Michael Gianaris, a Dem-ocrat whose Queens district in-cluded the project site, said heis drafting legislation to restruc-ture two city programs that of-fer companies tax credits for re-locating jobs or undertakingconstruction in neighborhoodsoutside the core of Manhattan.

The Amazon deal wouldhave directed up to $1.3 billionin city tax incentives to thecompany over 15 years to de-velop a campus in Queens’sLong Island City that would

BY JIMMY VIELKINDAND KATIE HONAN

employ up to 40,000 people.“These programs are bro-

ken and represent a lot ofwhat’s bad about economic de-velopment policy,” the senatorsaid in a recent interview.

His prime target is thecity’s Relocation and Employ-ment Assistance Program(REAP), which is set to expireon June 30 unless it is reau-thorized by state lawmakers.

The program offers compa-nies up to a $3,000 annual taxcredit for each employee hiredin designated neighborhoods.

Nearly 200 firms received atotal of $33 million throughthe program in 2019, city bud-get documents show.

Under the program, Amazonwas promised nearly $900 mil-lion of credits over 20 years forcreating up to 25,000 jobs. Ac-cording to the Citizens BudgetCommission, a nonpartisan fis-cal watchdog, this would havebeen the largest award evergiven through the program.

Amazon abruptly canceledits plans for the Long IslandCity campus on Feb. 14, 2019,

blaming opposition from somestate and local lawmakers, aswell as progressive groups.

Mr. Gianaris said incentivesfor a single project should becapped so that benefits can bespread. The Amazon proposalshowed one company can “com-pletely raid the system,” he said.

Mr. Gianaris said he alsohoped to make changes to thecity’s Industrial and Commer-cial Abatement Program(ICAP). It reimburses firms forpart of the costs of major con-struction and renovation out-side the core of Manhattan.

The city’s Economic Devel-opment Corp. said that in2016, companies receivingREAP credits supported 10,407employees. Queens had the big-gest boost from the program,with 106 companies—most with100 employees or less—receiv-ing a total of $17.8 million incredits, data for that year show.

Some small-business ownerssaid REAP has helped themgrow.

Liz Neumark founded GreatPerformances, a catering com-

pany, in Manhattan in 1980. Af-ter being priced out of the bor-ough, she began a move to alarger facility in the South Bronxlast summer, with the pendingapproval of a REAP benefit thatcould bring an annual tax creditof more than $500,000, she said.

She currently employs morethan 1,000 people, and thebenefit could grow as she ex-pands her business. “TheREAP program has played anenormous part in our strategicand financial planning for themove,” Ms. Neumark said.

Senate Majority Leader An-drea Stewart-Cousins said sheis open to re-evaluating theprograms. A spokesman forAssembly Speaker Carl Heastiedidn’t respond to requests forcomment.

A spokesman for Gov. An-drew Cuomo didn’t return anemail seeking comment. Thegovernor’s economic develop-ment czar, Empire State Devel-opment President Eric Gertler,said REAP and ICAP are im-portant tools to support jobgrowth.

Legislators Rethink IncentivesPrograms that offertax credits to firmsthat meet certaincriteria are scrutinized

NEW YORK STATE

Cuomo, Trump MeetOn Driver’s Records

Gov. Andrew Cuomo metThursday with President Trumpand acting Homeland SecuritySecretary Chad Wolf at theWhite House, following a weekof public feuding between NewYork and the Trump administra-tion over the federal govern-ment’s barring New Yorkersfrom enrolling in expedited-travelprograms, including Global Entry.

Mr. Wolf called the meeting“productive” and said discussionswould continue. But he ex-pressed frustration that NewYork refused to allow federal au-thorities full access to thestate’s driver’s license records.

A spokeswoman for Mr.Cuomo said he believes the De-partment of Homeland Securityrestrictions were unwarranted andpolitically motivated and restatedhis position during the meeting.

The White House didn’t re-spond to a request for comment.

DHS barred enrollment forNew Yorkers in the trusted-trav-eler programs last week in re-sponse to the state’s so-calledgreen light law, which allows ille-gal immigrants to get driver’s li-censes and shields driver’s li-cense records from federalimmigration authorities unlessthey have a court order.

U.S. Immigration and Cus-toms Enforcement uses the datafrom the records to make immi-gration arrests. U.S. Customsand Border Protection, whichoversees trusted-traveler pro-grams, also uses the data tocomplete background checks.

On Wednesday, Mr. Cuomosaid he would give DHS accessto driver’s license records forchecks for trusted-traveler pro-grams, but federal officials stillwouldn’t be permitted to accessit for immigration enforcement.

—Michelle Hackmanand Jimmy Vielkind

CONNECTICUT

Bipartisan Bill WouldCap Insulin Costs

Connecticut lawmakers onThursday announced bipartisansupport for new legislation thatwould place limits on out-of-pocket costs for insulin-depen-dent diabetics, many of whom

have seen the price of the life-saving drug skyrocket.

A group of Democrats andRepublicans have been workingfor months on the bill. The lat-est version of the proposal,which still needs to go throughthe legislative process, caps totalout-of-pocket costs for insulinand diabetic supplies, such astest strips and glucose testingmonitors, at $100 a month. Indi-vidual prescriptions for insulinwould be capped at $50 month.

Three companies currentlymanufacture insulin for the U.S.market: Eli Lilly, Novo Nordiskand Sanofi. A spokesman forSanofi said the pharmaceuticalcompany is reviewing Connecti-cut’s legislation, but “as a matterof policy” it “supports cappingpatient out-of-pocket costs forinsulin because of unjustifiedcost shifting from health plansto patients who need insulin.”

A spokesman for Novo Nor-disk said the company was eval-uating the bill, but noted it hassome new options for patientsstruggling to afford their insulin.A message left with Eli Lillywasn’t immediately returned.

—Associated Press

SANDY HOOK

Families Get AccessTo Killer’s Computer

Families of those killed in the2012 Sandy Hook school shoot-ing will have access to theshooter’s computer as part oftheir lawsuit against gun makerRemington.

A state Superior Court judgein Waterbury, Conn., signed offon a stipulated agreementThursday between the familiesand Remington that will allow aforensic computer expert to ex-amine Adam Lanza’s computerand present digital images of hisfindings to both sides.

The families are looking forevidence of Lanza’s exposure toadvertisements for weapons.

Remington is accused of vio-lating the Connecticut UnfairTrade Practices Act by market-ing its Bushmaster XM15-E2S ri-fle to civilians. Lanza used thegun, which was owned by hismother, in a rampage thatstarted with him shooting herand ended when he killed 20first-graders and six educatorsinside the Newtown school.

—Associated Press

Scott Kuney, the banjo player in ‘Porgy and Bess,’ says Gershwin was no stranger to the instrument.

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GREATER NEW YORK WATCH

If you find yourself in a situation you never thoughtyou’d be in, we’re here to help. No matter what youand your family are going through, we can help youtake on your child’s drug or alcohol problem.

Connect with a Parent Specialist for free.Call 1-855-DRUGFREE or Text 55753

© Center on Addiction / Partnership for Drug-Free Kids

GREATER NEW YORKNY

A10 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

VINYL IS BACK. So is “High Fidel-ity,” which 20 years ago was aculty John Cusack movie about afailing record-store owner whoselove life looked like an LP left on ahot stove. In the new Hulu seriesof the same name, our hero—stillcalled Rob—is played by Zoë Krav-itz (“Big Little Lies”), who like Mr.Cusack regularly breaks the fourthwall, fuming, mourning and exas-perating her audience with talesof amour fou. The demographicshave changed. The music really

hasn’t. And neither have the rea-sons that this adaptation of a NickHornby novel was so engaging tobegin with.

It’s all about love—and not justthe lost or mishandled love thatRob revisits in her boyfriend-by-boyfriend account of how lifewent romantically wrong. It’s thelove that she and her employeesand real soulmates, Simon (DavidH. Holmes) and Cherise (Da’VineJoy Randolph), have for the musicthey sell. Or not: A debate over

whether to hand over a MichaelJackson album to a customer getsthem embroiled in a debate aboutart vs. artist that’s both funnyand provocative, gets into Jack-son’s checkered history and ulti-mately raises the question of whythey stocked the record in thefirst place. More specifically,“High Fidelity”—both then andnow—is about the timeless, vicar-ious narrative charms of any se-cret society/gang/club/superheroteam. The insiders are outsiders

HULU

Zoë Kravitz as Rob in Hulu’s reboot of ‘High Fidelity,’ based on Nick Hornby’s novel

FILM REVIEW | JOE MORGENSTERN

Breaking News About GreatnessIn this improbably thrilling work, two women in Leningrad try to piece their lives back together after WorldWar II

Clockwise from top: Viktoria Miroshnichenko as Iya; Vasilisa Perelygina asMasha and Ms. Miroshnichenko; Ms. Miroshnichenko and Ms. Perelygina(center) in Kantemir Balagov’s ‘Beanpole’

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TELEVISION REVIEW | JOHN ANDERSON

Giving a Cult Classic Another Spin

feet tall. That’s surprising, sinceIya seems much taller, a fragile gi-antess who towers above everyonearound her. What’s flat-out aston-ishing is that both Ms. Mirosh-nichenko and Vasilisa Perelygina,who plays Iya’s friend Masha, haveno previous experience in front ofthe camera, yet their perfor-mances are as phenomenal as theyare unforgettable. (Kseniya Seredawas the cinematographer andSergey Ivanov designed the mag-nificent production.)

Iya has returned from the warwith a 3-year-old, Pashka; a dis-

charge paper identifying her as avictim of post-concussion syn-drome; and a trauma that’s visibleand audible. Sometimes shefreezes without warning, standingsilent as a stone except for tinychoking sounds that become partof the production’s remarkablesound design. It’s like a surrealversion of the encephalitis-relatedcatatonia described by the neurol-ogist Oliver Sacks and depicted inthe film “Awakenings,” and thesight of her intermittent flightfrom reality is haunting. So is thespectacle of her workplace, a hos-

transforming both women’s livesinto a delirium of denial, delusionand exhaustion. Whose grip on re-ality is the stronger? Impossibleto say, though safe to say thatseeming to be sane isn’t the sameas sanity.

All of this may sound unendur-ably bleak. Yet the film is an im-probably thrilling work of art byvirtue of its physical beauty andits relentless intensity of feelingabout people—not only Iya andMasha—who would prefer in theirheart of shattered hearts to feelnothing.

pital ward where she nurses shell-shocked soldiers. When a few ofthe patients urge little Pashka toentertain them by imitating a dog,he too stands immobile, in bewil-derment, until a doctor calls out“Where would he have seen adog? They’ve all been eaten.”

Masha, by contrast, seems to beintact when she comes back intoIya’s life unannounced—not onlyintact but lovely, seductive andebullient. You’ll have to see thefilm—and see it you should—tounderstand why and how, buttragedy precedes Masha’s return,

and eccentrics who possess super-powers. In “High Fidelity,” the su-perpowers are in their ears. Theirconsequent oddities and obses-sions only make them more en-dearing.

Ms. Kravitz is particularly so,most of the time—she tempers theinherent megalomania in Mr.Hornby’s character by making Robso obviously vulnerable, as shescrutinizes her erotic rap sheetand tries to figure out how shelost Mac (Kingsley Ben-Adir), thelove of her life, who sprinted off toLondon after buy-ing her an engage-ment ring. (She’llexplain.) Theshow begins inflashback, withhim walking out,and the real ac-tion picks up ayear later. Butthere’s muchabout “High Fidelity” that strad-dles eras and toys with time. (Ms.Kravitz, not incidentally, is thedaughter of actress Lisa Bonet,who was an object of desire in theoriginal “High Fidelity.”) The turn-table in Rob’s Crown Heightsapartment isn’t too puzzling, buther landline, which seems to pre-date the breakup of AT&T, cer-tainly is. A highly granular discus-sion of Fleetwood Mac’s“Rumours” feels like an archaeo-logical expedition. Cherise’s affec-tion for “Come on Eileen” will giveviewers a (re)new(ed) appreciationfor Dexys Midnight Runners.

But that’s kind of the point:

Having one episode end with AnnPeebles and the next begin withMinnie Riperton is all about theshow’s musical supervisors, amongthem Questlove, wanting to shinelight in some forgotten corners,while also taking a stand for sonicpurity, refined production valuesand the importance of the curato-rial touch. Especially in an erawhen musical taste and distinctionseem to be regarded as quaint. Orworse, undemocratic.

Rob is a natural obsessive—sheobsesses about music, she obsesses

about love. This canget in the way ofeverything. Her fix-ation on Mac ob-scures all else inthe early going, no-tably a sort-of-promising relation-ship with Clyde(Jake Lacy), thoughshe rightfully

ditches a soulful local singer be-cause he just got out of high school.But with her customary compulsivetenacity, she’s going to examine herlife, looking for love’s loopholes, herlapses in judgment and the perfectplaylist, while seeming to spinaround at 331/3 rpm. Is there a flipside to her jaded persona? Does“High Fidelity” have something upits sleeve? If nothing else, the showdrops its needle on a certain millen-nial hipster groove, without losingtouch with its Gen X ancestor.

High FidelityFriday, Hulu

Zoë Kravitz stars as arecord-store ownerwith a romantically

messy past.

How to rate “Bean-pole,” a new Rus-sian drama, withEnglish subtitles,directed by theprodigiously gifted

Kantemir Balagov? In motion-pic-ture circles the term “master-piece” has suffered the same fateas “breaking news” has in the me-dia world; it’s been devalued byrepetition. “Touched by great-ness” comes close, but—here’ssome honest-to-goodness breakingnews—“great” without qualifica-tion does the trick.

The setting is Leningrad duringthe first autumn after World WarII. The city is in ruins, so it’s un-derstood from the start that thiswill not be entertainment in theconventional sense. Rather, Mr.Balagov’s film, which he wrotewith Aleksandr Terekhov, is a pro-found, and profoundly beautiful,tale of two souls traumatized bywar—two women who were anti-aircraft gunners together, andwho are now struggling franti-cally, even madly, to survive andsomehow heal themselves in apostwar world overwhelmed byfatigue and death. (Lives are ex-tinguished in stunningly differentways in two scenes that share, ifnothing else, the mark of film-making mastery.)

The title comes from the nick-name of the taller of the two. Hername is Iya, and she’s played byViktoria Miroshnichenko, who is 6

THEWALL STREET JOURNAL. Friday, February 14, 2020 | A11

GRIDDARING | By Matt Gaffney

TheWSJ Daily Crossword | Edited by Mike Shenk

1 2 3 4 5 6 7 8 9 10 11 12 13

14 15 16

17 18 19

20 21 22

23 24 25 26

27 28 29 30 31 32 33 34 35

36 37 38

39 40 41 42

43 44 45 46

47 48 49

50 51 52

53 54 55 56 57 58 59 60 61

62 63 64 65

66 67 68

69 70 71

The answer tothis week’s contestcrossword is a ten-letter entertainmentcategory.

Across1 Part of a soccergame

5 Miserly Marner10 Discman’s

descendant14 Name

trademarkedin 1912

15 Got lower, in away

16 Science program17 •Fourth digit19 Sold at a

discount, often

Previous Puzzle’s Solution

20 Photoshopproducer

21 Kings’ things23 “___ sure you

already know...”26 Adult beverage27 He played

Brando’s son30 •Singles bar,

sometimes36 Put in pawn37 Green Anjou, e.g.38 Racket39 Auctioned pieces40 D.C.’s lobbying

industry42 Hush-hush org.43 Curry popular in

California

45 Novelist Simpson46 Driver at the

Oscars47 •Patched things

up49 Pringles

alternative50 “King Kong”

studio51 Cooler brand53 If absolutely

necessary58 Robert Kennedy’s

bride62 Class-ending

sound63 •Deepest self66 Wave-lapped

land

67 “Hit me up”68 Symbols of

welcome69 Band named for

a river70 Overwhelm71 Seeing things?Down1 Circularmovements

2 Unsuitable forfarming

3 Feuder withO’Brien

4 Mountain cover5 Move amongmoguls

6 Stop for thenight

7 Pair in pants8 Eldest of theBaldwin brothers

9 Show online10 Preparing for

delivery11 Billy Porter show12 “You can talk

now”13 A&W competitor18 Moroccan city22 Long-term spy24 Prank pullers25 Rival of Tinder

and OkCupid27 Gulf28 Blood carrier

29 Had a role to play31 Quarterback

Rodgers32 In33 Rather, casually34 Composition35 The Sharks and

the Jets, e.g.40 Shade for

soldiers41 Loosen44 Puzzle46 Slightly48 March along with

others52 Rooibos, e.g.53 Bird with a

curved bill54 Hornet’s home55 Brother-in-arms56 Rub it in57 Motion by the

ocean59 Lewis with the

News60 City up the shore

from Cleveland61 Not as much64 One of many in

Central Park65 Recharge your

batteries

s

Email your answer—in the subject line—to crosswordcontest@wsj.com by11:59 p.m. Eastern Time Sunday, Feb. 16. A solver selected at randomwillwin aWSJmug. Last week’s winner: JannaWalker, Fall City, WA. Completecontest rules atWSJ.com/Puzzles. (No purchase necessary. Void whereprohibited. U.S. residents 18 and over only.)

S H I P M U L I S H P E NC A S E A T O N C E A X EO R I E N T A L C A R P E TT E S L A S L A N D M A S S

S P U D N S AJ A R P I E R C E D E A RA L I C E B O O R E M M AD I V E D T A U R U B I NE T A L M O M S U P E N DD O L L A R S I G N R O Y

O A R N A I LT H E S T R I P I N A B I TH O N E Y M O O N S U I T EA M Y A M P U L E G L E ET E A T E S T E D H E M S

PUZZLECONTEST

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

City Hi Lo W Hi Lo W City Hi Lo W Hi Lo WToday Tomorrow Today Tomorrow

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Anchorage 14 8 c 14 8 cAtlanta 52 31 pc 53 38 pcAustin 59 34 s 67 46 pcBaltimore 37 16 s 37 28 sBoise 46 30 c 45 37 rBoston 28 11 s 32 27 sBurlington 8 -5 s 23 20 pcCharlotte 53 25 pc 47 32 pcChicago 17 14 s 33 27 sfCleveland 21 13 sf 36 32 pcDallas 52 36 s 63 46 pcDenver 49 21 s 41 24 pcDetroit 22 12 pc 32 29 pcHonolulu 83 69 pc 82 70 pcHouston 61 38 s 64 55 pcIndianapolis 20 13 s 41 30 pcKansas City 33 29 s 46 27 sLas Vegas 65 43 s 68 45 sLittle Rock 42 25 s 56 40 pcLos Angeles 70 49 pc 72 49 sMiami 85 68 sh 80 70 cMilwaukee 17 12 s 35 26 sfMinneapolis 17 14 s 35 15 cNashville 37 20 s 52 40 pcNew Orleans 60 47 s 66 58 pcNew York City 31 16 s 32 28 sOklahoma City 47 36 s 58 36 pc

Omaha 33 26 s 48 28 pcOrlando 74 58 sh 75 60 pcPhiladelphia 33 17 s 35 28 sPhoenix 71 47 s 72 48 sPittsburgh 21 12 sf 38 30 pcPortland, Maine 22 -1 s 26 19 sPortland, Ore. 50 40 sh 46 40 rSacramento 65 39 s 68 45 pcSt. Louis 28 22 s 49 31 pcSalt Lake City 51 30 pc 48 40 cSan Francisco 60 44 pc 62 48 pcSanta Fe 47 24 pc 51 26 sSeattle 49 42 sh 47 40 rSioux Falls 32 24 s 38 19 pcWash., D.C. 39 22 s 39 32 s

Amsterdam 49 46 pc 54 52 shAthens 60 53 c 58 45 shBaghdad 65 41 c 65 47 cBangkok 95 77 pc 95 77 pcBeijing 37 21 sn 34 18 sBerlin 44 37 c 51 46 pcBrussels 50 46 pc 55 52 shBuenos Aires 84 70 s 87 73 sDubai 73 60 s 75 63 pcDublin 51 41 r 54 40 rEdinburgh 49 37 r 51 38 r

Frankfurt 48 37 pc 54 45 pcGeneva 51 32 pc 56 38 pcHavana 88 67 pc 85 65 pcHong Kong 72 67 t 72 54 shIstanbul 51 46 c 50 41 rJakarta 85 75 sh 88 76 tJerusalem 60 49 pc 62 47 pcJohannesburg 88 62 pc 87 58 sLondon 53 49 pc 56 54 rMadrid 60 38 s 61 41 sManila 89 74 s 90 72 sMelbourne 84 69 t 71 62 shMexico City 74 48 pc 76 51 pcMilan 61 34 s 58 34 pcMoscow 35 24 c 34 23 pcMumbai 92 75 pc 91 76 pcParis 54 46 pc 58 53 pcRio de Janeiro 82 73 pc 84 76 tRiyadh 74 48 pc 77 52 pcRome 63 40 sh 61 39 sSan Juan 84 74 pc 85 74 shSeoul 58 37 c 61 32 rShanghai 66 55 c 60 32 rSingapore 90 77 pc 90 77 pcSydney 77 65 pc 78 70 pcTaipei City 80 67 r 82 58 pcTokyo 60 51 r 59 52 pcToronto 18 13 sf 30 28 cVancouver 47 37 pc 46 35 rWarsaw 40 31 sh 42 35 pcZurich 49 31 pc 52 34 pc

Today Tomorrow

U.S. Forecasts

International

City Hi Lo W Hi Lo W

s...sunny; pc... partly cloudy; c...cloudy; sh...showers;t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice

Today Tomorrow

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New YorkONCE UPON a fast-recedingtime, everybody was talkingabout what was then called theSexual Revolution, even thosefor whom it was as yet littlemore than a rumor. John Updikegot himself onto the cover ofTime in 1968 by writing “Cou-ples,” a novel about what usedto be called “wife-swapping” ina small Massachusetts town.(The gloweringly sober banneron the cover was “THE ADUL-TEROUS SOCIETY.”) A yearlater, Paul Mazursky hit big atthe box office with “Bob & Carol& Ted & Alice,” a screen comedyabout two suburban coupleswho end up in bed together in aLas Vegas hotel. It was adver-tised with posters that showedDyan Cannon, Robert Culp, El-liott Gould and Natalie Wood inthe sack, looking conspicuouslyawkward. That was the point—they made it to bed, but weretoo embarrassed to do anythingbut put their clothes back on—but if, like me, you were a teen-ager in 1969, those posters, em-blazoned with the smirkingcatch line “CONSIDER THE POS-SIBILITIES,” were vastly moretitillating than the film itselfturned out, or was meant, to be.

It’s almost touching to con-template the far-off time when,in the darkly ironic words ofPhilip Larkin, sex was still in theprocess of becoming “a brilliantbreaking of the bank, / A quiteunlosable game.” To that end,the New Group is now present-ing an off-Broadway musicalversion of “Bob & Carol & Ted &Alice.” Skillfully compressed intoa small-scale show with a six-person cast, it tracks Mazursky’sfilm closely, and if you remem-ber the movie, it might makeyou smile.

But what if you don’t? Whatif, like most people under the

thing else. The same thing, Ifear, is true of the cast, whichalso includes Michael Zegen asTed and Ana Nogueira as Alice,whose members lack thestrongly distinctive personalitiesof their screen counterparts, El-liott Gould in particular. Nordoes Derek McLane’s simple, un-cluttered set have the kind ofexact period feel that mighthave helped to root the show ina specific time and place. ScottElliott, the director, has muchthe same problem: He can’tseem to think of anything moreevocative of the decade for hisactors to do than smoke ciga-rettes all the time (which soonbecomes a problem for the audi-ence in so small a theater).

On the credit side, I verymuch liked Suzanne Vega, whois taking a break from her ca-reer as a singer-songwriter toplay the bandleader and vari-ous other supporting charac-ters. Her soft, gentle voice andsmilingly detached manner areideally suited to her function inthe show (though she needs tobe miked more effectively). Sheis, in fact, the only thing about“Bob & Carol & Ted & Alice”that is likely to strike you asmuch more than a missed op-portunity to say somethingpungent about a fateful episodein American life with whosefar-reaching consequences weall continue to live to this day.

Bob & Carol & Ted & AliceThe New Group, PershingSquare Signature Center, 480 W.42nd St. ($48-$133),917-935-4242, closes March 22

Mr. Teachout, the Journal’sdrama critic, is the author of“Satchmo at the Waldorf.”Write to him attteachout@wsj.com.

THEATER REVIEW | TERRY TEACHOUT

‘Bob &Carol &Ted&Alice’:

Tame Titillation

age of 65, you’ve never heardof “Bob & Carol”? Unlike, say,“Groundhog Day” or “Tootsie,”it isn’t one of those belovedfilms of yesteryear that are thestuff commodity musicals aremade of. Is the stage versionartistically strong enough in itsown right to overcome the dis-advantage of not having a pre-sold audience going in?

Part of the problem with“Bob & Carol,” it turns out, isthe source material. In Mazur-sky’s film, Bob and Carol(played in the movie by Culpand Wood and in the musicalby Joél Pérez and Jennifer Da-miano) spend a weekend at ahuman-potential retreat in BigSur (remember those?) and re-turn home determined to be-come more “authentic” in ev-ery way. The point was thatnice people who embrace freer

love without fully understand-ing what they’re getting intoare pulling the pin on a gre-nade that could blow up theirlives. But the film, which waswidely admired in 1969 for thesharpness of its satire, nowcomes across as lacking in sa-tirical bite—everybody getsaway squeaky-clean, sufferingno consequences more direthan transient embarrass-ment—and the musical is evenmore smooth-mouthed, addingup to scarcely more than a nos-talgic trip to the Swinging ’60s.

Not only does Jonathan MarcSherman’s book fail to transcendthe film’s limitations, but thesongs, co-written by DuncanSheik and Amanda Green, are allsoft-rock ballads that are pre-sumably meant to suggest thelost world of the film but end upsounding more bland than any-

LIFE & ARTS

MONIQUECARBONI(2)

Joél Pérez, AnaNogueira, JenniferDamiano andMichael Zegen, left;Ms. Nogueira andMr. Zegen, below

FILM REVIEW

Joe Morgenstern

Discovering theContours of LoveWHEN “PORTRAIT of a Lady on Fire” had alimited run in December to qualify for Oscarconsideration, I wrote about it in a piecethat was limited in length, though not in ad-miration. The idea was to call attention toCéline Sciamma’s ravishingly beautiful lovestory, but to hold off on more details until itwent into national distribution, which itdoes this week.

The setting is an isolated island off thecoast of Brittany at the end of the 18th cen-tury. A young artist, Marianne (Noémie Mer-lant), arrives from the mainland in an openboat with paints, canvas and a commissionto paint a wedding portrait, but there’s aproblem right away: The subject, Héloïse(Adèle Haenel), doesn’t want to pose for thepainting, because she doesn’t want to bemarried to a man she’s never met. Mariannelearns this from her employer, the mother ofthe bride-to-be, who’s known only as theCountess (Valeria Golino). She also learnsthat the Countess has brought her to the is-land under false pretenses. Héloïse thinksMarianne has been hired as a walking com-panion, so the artist must observe her sub-ject on the fly, then do her painting from

memory, de-tail by detail,in the pri-vacy of amakeshiftstudio.

Thus doesthe relation-ship betweenthe twowomen beginin deceit,even be-trayal. That’snot where itends, though.“Portrait” isa tale of pas-sionate lovethat growsout of dis-covery—firstHéloïse’s dis-

covery of Marianne’s true purpose, then thewomen’s gradual discovery of each other.The subject does agree to pose. The artistdoes get to paint openly. Héloïse and Mari-anne observe each other with equal inten-sity, learn the contours of each other’s fea-tures and bodies. Seeing is the gateway tofeeling for the two women, and for the audi-ence as well, since the cinematographer,Claire Mathon, has created her own work ofart in which rich textures and muted colorsevoke emotion, and portrait lenses withshallow depth of field gaze on exquisitelymodeled faces against soft-focus back-grounds.

Both performances, like Ms. Sciamma’s di-rection, are flawless. Men figure in the filmonly as incidental, unnamed characters; norisk, therefore, of a so-called male gaze di-minishing the women by depicting themonly as sexual objects. The love Marianneand Héloïse feel for each other is intenselysexual—the fire of the title is both figurativeand literal—but also spiritual in ways thatare evoked wordlessly, and finally musically,in a coda sustained by the energy of AntonioVivaldi’s “The Four Seasons.” In anothercontext the familiar music might constitutea cliché. Here it seems like the last in a longstring of lovely discoveries.

NEO

N

Adèle Haenel and NoémieMerlant in Céline Sciamma’s‘Portrait of a Lady on Fire’

A12 | Friday, February 14, 2020 * * THEWALL STREET JOURNAL.

BY JARED DIAMOND

Astros Offer FewApologiesTeam owner Jim Crane, most players strain to avoid assessing the impact of sign-stealing scandal

Manager Dusty Baker, owner Jim Crane and star José Altuve at spring trainingThursday. George Springer, photo left, dismissed the advantage of cheating.

SPORTS

JEFF

ROBERSON/A

SSOCIATE

DPRESS92)

Shhhhhhh. Can youkeep a secret? It’s agood one.

Zion Williamsonis awesome at bas-ketball again.

Rings a bell, no?We did this whole

dance party last year, when William-son played his first and only year atDuke, enough time to become themost electric college star in a gener-ation.

Remember “Zion-mania?” The ex-plosive dunks…the gravity-defyingshot blocks…the pretty, creativepassing…and, perhaps most indeli-bly, that poor Nike sneaker that sur-rendered to Zion’s physical mightand self-detonated on national tele-vision?

The hype proved to be quite real.Zion was a delight, and the BlueDevils became compulsory viewingfor hoop fans and even Duke-despis-ers like me.

Williamson rode Zion-mania allthe way to becoming the No. 1 pickin last spring’s NBA draft. He wasselected first by the New OrleansPelicans (surprise winners of the“Not Tryin’ for Zion” sweepstakes),and then he got hurt, and Zion-ma-nia cooled. Williamson bowed out ofsummer league after a handful ofminutes, and later New Orleans shuthim down in the preseason.

October stretched to November,then December and January. Wil-liamson’s disappearance, not sur-prisingly, fueled whispering. Some-thing’s wrong. Zion’s not right. Ihear he’s really big. New Orleans willdo that to you. I hear he’s reallyhurt. I betcha they shut him downfor the year. There was a report thatthe Pelicans were re-educating Wil-liamson on how to properly run andwalk. Uh-oh.

All that anxiety briefly turnedloud when Williamson finally made

his NBA regular season debut onJan. 22. He walked out onto thefloor at New Orleans’s SmoothieKing Center against the Spurs, andfor the first three quarters, helooked…not ready for this. He wasout of sync. A step behind. He waslarge indeed. Was Williamson now280? 300? The TV analysts embar-rassingly started body-shaming Wil-liamson in real time. ESPN’s MarkJackson actually said he would havetaken No. 2 pick Ja Morant over Wil-liamson. Zion-mania was sinking likea bad stock.

It was something—a fresh maniato call Zion over, a mistake, a bust.

And then Zion turned into, well,Zion.

As if realizing he’d forgotten toswitch his battery pack on, William-son suddenly became himself. Heunleashed a remarkable fourth quar-ter in which he scored 17 points, hitfour straight three pointers, andadded a couple of jaw-dropping aeri-als that reminded everyone whythey’d fallen for the guy since hewas in eighth grade. Williamsonwound up scoring 22 points on ateam-restricted 18 minutes, and af-ter the game, the only argumentabout Zion was whether or not thePelicans were smart or foolish fortaking him out of a game theywound up losing.

Since then, Zion’s been a smash-ing success. Over the past threeweeks, Williamson has emerged asone of the most dynamic forces inthe game—not dynamic for rookies,but in the game, period. He’s soquick and physical he’s mushing de-fenses; they have no answers be-cause he’s such a one-off. If William-son is overweight, he’s the mostnimble overweight star ever. He’slike Charles Barkley Iverson. Wil-liamson’s stats through Wednes-day—21 points, 7.7 rebounds, 2.3 as-sists—represent a historically great

Zion Williamson Is QuietlyBecoming a Sensation

start, in the same breath with Shaqand Jordan. The young Pelicans, 6-4in their last 10 games throughWednesday, now have an outsideshot at the playoffs.

If you haven’t seen him yet,please do. Zion’s great, he really is—right out of the box.

This is the part where I remindyou Zion Williamson is just 19 yearsold. Yowza.

Usually, a debut like this wouldkick the media hype machine into an

insufferably high gear, but that mer-cifully hasn’t happened yet. Zion’sarrival happened to correspond withone of the most hectic and distract-ing stretches of news. Just a fewdays after his first game, the NBAwas rocked by the death of KobeBryant, a tragedy that continues tohang over the game. That was fol-lowed immediately by the SuperBowl, which consumes everyone’seyeballs and attention for at least afew days. On top of all that, there’s

an international pandemic fear, and Idon’t need to remind you there havebeen some, uh, big political eventshappening in the country.

It’s hard for any news, even excit-ing news, to break through—evenZion-mania. Had this happened lastOctober, the country would be ga-gafor Williamson. But right now, I’dsay on a scale of one to 10, nationalZion-mania is about at a 5. Maybeeven a 4.

Don’t get me wrong: a preoccu-pied country isn’t bad for William-son. Usually what we do with youngtalents like Williamson is to suffo-cate them immediately, by raisingexpectations to the heavens, where anascent star will either live up to thehope, or become a cautionary col-lapse. This is especially acute in bas-ketball, where anointing “The NextBig Thing” is a beloved pastime.There is now an entire industry ded-icated to delivering video clips ofteenage and pre-teenaged basketballstars to social-media platforms, andit is both exploitative and unhealthy,and no one seems to care. (If you arean adult videotaping or promotingvideo of 12-year-olds playing basket-ball, and you don’t work for theschool, or aren’t related to one ofthe players, you should probably gotry doing something else.)

The good news is that Zion’s beenthrough all that. He was once thatremarkable teenager on the Insta-gram threads, and thankfully he wasmature enough to block out thatadult hype and reach the pinnacleintact. There will soon come a timewhen Williamson will be under thebrightest lights again—what he’s do-ing in the NBA cannot be ignoredmuch longer. If he slumps or getshurt, you can bet there will be publicfretting about his size and durability.That undercurrent of body-shamingisn’t going to go away. Williamson’snaysayers are never far behind thebandwagon.

Right now, though, Zion is Zion.Amid a turbulent month in Ameri-can life, he has been able to take abreath, properly find his footing, andbe himself. No sneakers have ex-ploded, but he’s everything prom-ised and more. Let’s keep it to our-selves a little longer. Shhhhh.

Pelicans rookie Zion Williamson’s stats through Wednesday—21 points, 7.7rebounds, 2.3 assists—represent a historically great start to his NBA career.

owner said, and the players “did notreceive proper guidance from theirleaders” such as Luhnow and Hinch,both of whom the Astros hired dur-ing Crane’s tenure as owner. None-theless, Crane said he deserved noblame for what happened.

“Clearly the report states that Ididn’t know about it. Had I knownabout it, I certainly would havedone something about it,” Cranesaid. He added, “No, I don’t think Ishould be held accountable.”

Crane’s answers raised eyebrowsaround the industry. Asked aboutCrane’s contention that sign-steal-ing didn’t impact the Astros’ pur-suit of a championship Thursday,New York Yankees manager Aaron

Boone said, “That’s quite a stretch.”Speaking in Tampa, Yankees closerAroldis Chapman echoed Boone,saying, “As hitters, if they have anedge, an advantage knowing what’scoming, it’s going to make themstronger.” Previously, Dodgerspitcher Alex Wood posted on Twit-ter that he would “rather face aplayer that was taking steroids thanface a player that knew every pitchthat was coming.”

The Yankees and Dodgers feelparticularly aggrieved. The Astrosdefeated them during the 2017playoffs, leaving both teams won-dering if they unfairly lost out on atitle. Despite that, Astros playersacross the board said they didn’tfeel as if they owed the Yankeesand Dodgers any special apology.

“I don’t feel like we should,” out-fielder Josh Reddick said.

The Astros also addressed reve-lations that have emerged in recentdays, many of them related to a pri-vate letter Manfred sent to Luhnowon Jan. 2, which was reviewed byThe Wall Street Journal.

That document showed thatmembers of the Astros’ front officedeveloped an Excel-based applica-tion internally called Codebreakerfor the purpose of stealing signs.Then-intern Derek Vigoa showed

Luhnow a PowerPoint presentationin September 2016 that included aslide on Codebreaker. Tom Koch-Weser, another Astros staffer,played a large role in its implemen-tation.

Nonetheless, both Koch-Weserand Vigoa remained employed bythe Astros, new GM James Clickconfirmed Thursday. As for whetherthey would continue to work forthe Astros, Click said, “It’s a goodquestion. I’m not going to know theanswer to that until I talk to thestaff.” He declined to comment onthe current whereabouts of Koch-Weser and Vigoa. Koch-Weser andVigoa didn’t respond to requests forcomment.

Meanwhile, Manfred’s letter alsoquoted an email that Koch-Wesersent to Luhnow in August 2017.That email referred to Carlos Bel-trán, an outfielder on that squad, as“the godfather of the whole pro-gram.”

Correa vehemently denied thatand instead put the onus on thewhole roster.

“Whatever he said and whateverwe were doing, we had the chanceto stop it as a team—everybody,”Correa said. “Everybody had thechance to say something, and wedidn’t.”

DERICKE.HINGLE

/REUTE

RS

JASON GAY

West Palm Beach, Fla.

A30-foot Houston As-tros logo sits justoutside the ballparkhere, buttressed byan oversized orangeand blue banner that

reads, “2017 WORLD CHAMPIONS.”The team earned that designationby beating the Los Angeles Dodg-ers in seven games in that year’sWorld Series.

This monument to their victoryserved as the backdrop Thursdaymorning, when the Astros finallysaid “sorry” for the sign-stealingscandal that has tainted the title inthe eyes of many and thrown thefranchise into turmoil. But Houstonowner Jim Crane and his teamshowed no remorse for the thingsthat might matter most in base-ball: the championship rings ontheir fingers.

“Our opinion is that this didn’timpact the game,” Crane said. “Wehad a good team. We won theWorld Series, and we’ll leave it atthat.”

Less than a minute later, a re-porter asked Crane to elaborate fur-ther on that comment.

“I didn’t say it didn’t impact thegame,” Crane said, denying that heuttered the precise phrase that hadcome out of his mouth 55 secondsearlier. “Basically, as the commis-sioner said in his report, he’s notgoing to go backwards. It’s hard todetermine how it impacted thegame, if it impacted the game, andthat’s how we’re going to leave it.”

Crane hedged again when askedagain later if he believed that thebatters knowing the pitch type inadvance provided an advantage. “Itcould possibly do that, it could pos-sibly not,” Crane said.

Indeed, in their first extended re-marks on the scandal, coming threemonths after an article published inThe Athletic revealed the existenceof the illicit operation, players of-fered few specifics. They apologizedgenerally for, as third baseman AlexBregman put it, “the choices thatwere made by my team, by the or-ganization and by me.”

Inside the clubhouse, most ofthe Astros players refused to dis-cuss the tangible benefit of steal-ing signs, which they did by watch-ing a live game feed on a monitorinstalled outside their home dug-out and banging on a trash canwith a bat to relay the informationto hitters.

Outfielder George Springer, forinstance, claimed that cheating

didn’t bolster the Astros’ statisticsin 2017. “Individual performances,that’s up for somebody else’s inter-pretation, but I believe in our per-formances as players.” Pitcher Jus-tin Verlander, typically one of themost outspoken players in baseballabout issues affecting the game,said, “I think we had an extremelytalented ball club” and wouldn’t sayhow much sign-stealing helped itssuccess.

Only shortstop Carlos Correa ac-knowledged what seems obvious:that the Astros hit better in 2017because of their efforts to stealsigns—which explains why theyslammed on that trash can hun-dreds of times that year.

“It’s definitely an advantage, I’mnot going to lie to you,” Correasaid. “Knowing what was coming, Ithink you get a slight edge. Andthat’s why people got suspendedand people got fired, because this isnot right. It’s not right to do it. Andthat definitely was an advantage.”

On Jan. 13, MLB CommissionerRob Manfred suspended Astros

general manager Jeff Luhnow andfield manager A.J. Hinch for theentire 2020 campaign. Crane firedthe men that same day. Eventhough Manfred described thebanging scheme as “player-driven,” no player faced discipline,in part because of a deal MLBstruck with the MLB Players Asso-ciation granting players immunityin exchange for honest testimony.Manfred also absolved Crane ofknowing anything about his fran-chise’s misconduct.

Crane insisted that he agreedwith Manfred’s determinations on allof those accounts. “The leaders en-abled, condoned and did not stopthose actions that happened,” the

THEWALL STREET JOURNAL. Friday, February 14, 2020 | A13

The Rake’sProgressSeductionBy Clement Knox(Pegasus, 482 pages, $28.95)

BOOKSHELF | By Emily Bobrow

S tories of seduction are as old as sex. Some moons of theplanet Jupiter were named for Zeus’s conquests. ForSt. Augustine and other early Christians, the story of Eve

was about the lascivious recklessness of all women. But theEnlightenment introduced a new era for the seduction narra-tive, argues Clement Knox in his history of the phenomenon.

Because theological codes of behavior no longer held sway,the dynamics of courtship were suddenly up for grabs. Newideas about rights coincided with a revolution in Westernmarriage, and by the 19th-century wedlock was mostly a privatechoice. A sudden glut of young people seeking work in citiesspurred a new fascination with the puzzle of love and marriage,and a new anxiety about the potential for romantic deception.In the modern world, Mr. Knox argues, seduction stories invari-ably address our modern concerns—about power and sex, pas-sion and reason, private exploitation and public protection. Ifthese are now terribly confusing times for romance, this bookmakes it clear that it was always thus.

Mr. Knox, a book buyer for Waterstones, a British retailer,divides seduction stories into two types. In the first, the

seducer is a villain who usescunning to trick a woman intoabandoning her chastity. SamuelRichardson, a chap with manydaughters and a face “like aham,” wrote the “founding text”of this trope with his novel“Pamela; or, Virtue Rewarded” in1740. Pamela is a poor, beautifulgirl whose wealthy boss vies tosteal her virtue. But after a near-rape, Pamela’s honor inspires thiscreep to reform and propose, andthey basically live happily everafter. This novel delivers its lesson

with the subtlety of a mallet, but itsembrace of Christian values in an otherwise

confusing romantic time made it a bestseller.The other common narrative heralds the seducer as a hero

of sorts who understands that sex is what everyone wants andromance is a great way to get it. Giacomo Casanova, forexample, saw seduction as a game that both parties played,in pursuit of pleasure that both could enjoy. This legendarylibertine’s faith in a level sexual playing field in 18th-centuryVenice wasn’t completely absurd: Although fathers stillbrokered most marriages, wives were allowed a cicisbeo—amale companion—without compromising their status orsecurity. Yet unmarried women still had to guard their chastity,and those who bore children out of wedlock became pariahs.Despite Casanova’s enlightened approach to hedonism, sexstill involved some seriously asymmetrical costs and benefits.

Mr. Knox has written an ambitious book: part socialcommentary, part literary criticism, part legal history andpopulated with colorful (albeit shaggy) biographies of playersbig and small in the world of wooing over the past 300 years.Yet his fixation on the supposed binaries of seduction—theseducer as hero or villain, the conflict between passion andreason, women as agents or victims—is perplexing. Ratherthan reflecting any one template, his stories simply show howcomplicated courtship always was, in no small part becausemen and women bear the consequences of pleasure unequally.

Mary Wollstonecraft, for example, held that consentingadults should be free to have sex without censure. This,according to Mr. Knox, made her a believer in the rationalityof desire (i.e., seducer as “hero”). Yet she also wisely arguedthat women needed a proper education to avoid the snares ofsexual exploitation. More to the point, Wollstonecraft’s ownexperiences pursuing men had left her humiliated, abandonedwith a child, and suicidal. She learned the hard way that “mencould rove, but a woman with a child in her womb or at herbreast faced certain constraints.”

Acknowledging these sexual politics, Mr. Knox spends muchof the book recounting the exploits of famous rakes, includingLord Byron and Percy Shelley, and the regrets of the womenwho loved them. He thoughtfully suggests that “Frankenstein,”by Wollstonecraft’s daughter Mary Shelley, is a novel aboutthe cruel fate of bastard children. He also devotes plenty ofpages to government efforts to protect women—or at leastthose deemed worthy of protection—which had mixed results.American efforts to regulate seduction in the late 19th andearly 20th century, for instance, disproportionately hurtAfrican-Americans. In cases where a white woman accused ablack man, it was not uncommon for Southerners to take thelaw into their own grim hands.

But for all the facts crammed into this impressively unsexybook, it is not always clear what Mr. Knox is trying to say,except perhaps that sex is tricky, the evolving rights of womenmake it trickier still, and efforts to regulate moral behavioroften have unintended consequences. He reserves judgmentuntil the end, when he casts his eyes about our more libertineera, takes stock of our “lonely, diminished lives,” and lamentsthat those who argued for the “primacy of reason in sexualrelations” have won. After taking pity on those who look forlove online, he suggests that the “decrepitude of the averageindividual’s emotional vocabulary” is a natural result of ourreliance on algorithms to maximize our romantic happiness.

It takes some lack of self-awareness for a male author to bewistful for a romantic era when women lacked the rights orresources to have real sexual choices, and stories of seductionwere almost exclusively heterosexual. Mr. Knox neveracknowledges the persistence of sexual double standards,whereby promiscuous men become lotharios while “easy”women are slut-shamed. Nor does he notice the tenacity ofseemingly anachronistic rules of courtship, such as the factthat many men still prefer to pursue than be pursued.Seduction is a terribly thorny business, maybe never more sothan right now. Perhaps it is only natural to pine for a simplertime (“Make seduction great again!”), at least for those whomight benefit from turning back the clock.

Ms. Bobrow, a former editor for the Economist, is ajournalist based in New York.

If these are now terribly confusing times forromance, a new cultural history of seductionmakes it clear that it was always thus.

You Stole My Heart, and You’ve Been Served

O n Valentine’s Day peo-ple eagerly spendmoney to express love.

But the price of lost love canbe steep—and not only incases of divorce.

In six states, there exists alegal right to force a personto fork over cash for “alien-ation of affections.” In plainEnglish, that means suingyour spouse’s lover for dam-aging your marriage.

This right stems from theanachronistic principle that awife is her husband’s prop-erty, so wooing her away isakin to theft. The tort hasbeen abolished in most states.But it persists—and applies toboth sexes—in Hawaii, Missis-sippi, New Mexico, North Car-olina, South Dakota and Utah.

Some forlorn spouses haveconvinced juries that they areentitled to damages for theirbroken hearts. In Fitch v. Val-entine (2007), Johnny Valen-tine, a plumber, sued JerryFitch, a millionaire business-

man, for allegedly stealingaway his wife. A jury awardedMr. Valentine more than$750,000. In upholding theaward for alienation of affec-tions, the Mississippi Su-preme Court concluded thatwhile the marriage mighthave been strained before-hand, it was the affair thatruined it.

In 1981, Joseph Hutelmyerwrote a poem for his wife,Dorothy, titled “Why I LoveYou.” He penned a sequel in1990: “Why I Love You II.”Then, in May 1992, Mr.Hutelmyer’s secretary, MargieCox, separated from her hus-band and began wearing shortskirts and low-cut blouses tothe office. You can see where

this is going. A North Carolinajury awarded Mrs. Hutelmyer$1 million from Ms. Cox forbreaking up her “fairy talemarriage.” A state appealscourt affirmed the award inHutelmyer v. Cox (1999).

One defense against theseclaims is that there was no af-fection left in the marriage toalienate. That’s why the SouthDakota Supreme Court inRumpca v. Brenner (2012) hadto decide if Kellie and DougRumpca had a loving mar-riage before Mrs. Rumpca be-gan an affair.

She said no. But Mr.Rumpca presented evidenceto the contrary, such as ananniversary card from hiswife calling the previous 10years the best of her life. Inaddition, Mrs. Rumpca under-went plastic surgery in an ef-fort to be more attractive toher husband. Weighing the al-legations, the South Dakotahigh court concluded that itwould be up to a jury to de-cide if the marriage had been“loveless.”

Homewreckers who wantto avoid a lawsuit might con-sider crossing state lines. InDipasupil v. Neely (2019), aNorth Carolina Court of Ap-peals judge pored over textmessages, phone calls andrendezvous locations from anout-of-state affair. He foundno evidence that “alienatingconduct” transpired in theTar Heel State.

These cases dredge upmany a salacious detail, butthey can still involve dry legalissues. In King v. Huizar(2019), a federal court inTexas concluded that even abankruptcy discharge can’twipe out a judgment foralienation of affections.

“Love is not love / Whichalters when it alterationfinds.” But when love ends,one might enlist some skillfullegal minds.

Mr. Maniloff is an attorneyat White & Williams LLP inPhiladelphia and an adjunctprofessor at Temple Univer-sity’s Beasley School of Law.

By Randy Maniloff

Jilted spouses in sixstates are permittedto sue for ‘alienationof affections.’

OPINION

Coming in BOOKS this weekendHowWashington Republicans fought the Civil War •Physicsand the meaning of life • The golden age of muckraking •A visionary surgeon in Belle Époque Paris • A memoir ofBach and mourning • Sam Sacks on new fiction • & more

Ca tho l i c s ,take heart.Pope Francis’apostolic ex-hortation onthe AmazonSynod, re-

leased Wednesday, is no truth-and-tradition-shredding docu-ment. On point after point, theHoly Father reiterates thelongstanding teaching of theCatholic Church—whether onthe role of the priest, the cen-trality of women to thechurch’s mission, or the con-tinued importance of priestlycelibacy.

Over the past few monthsthe pope’s critics within thechurch have worried that theVatican would chip away ordiscard Catholicism’s moraltheology. The rhetoric some-times made it sound as if thesky were falling, taking theBarque of St. Peter with it.Such fear is unbecoming of allwho place their trust in Godand believe his promise thatthe “gates of hell shall notprevail” against the church.

These concerns came fromgenuine care. At the conclu-sion of the Amazon Synod inOctober, the bishops voted torecommend the ordination ofmarried men as priests in cer-tain South American regions,despite millennia-old Catholicteaching and discipline to thecontrary. They also recom-

The Pope Is Catholic After Allmended further discussion onallowing local women to bedeacons. Under Catholic doc-trine, deacons receive Holy Or-ders, as do bishops andpriests. This sacrament alwayshas been reserved to men. Thefear was that abandoning suchteachings in the Amazon wasthe first step toward changeacross the entire church.

It didn’t help that some se-nior prelates seemed, and stillseem, intent on abandoningthese precepts. German Cardi-nal Reinhard Marx, one of thepope’s closest advisers, re-cently held a dueling synod inhis home country over theVatican’s objections. CardinalMarx, who also sat on the Am-azon Synod, explicitly said itwould be “helpful” for his ownmeeting to open debate on thechurch’s teaching.

Yet in this week’s apostolicexhortation, the Holy Fatheressentially upheld the church’sposition on priestly celibacy.To address a shortage ofpriests in the Amazon region,he called on bishops to “pro-mote priestly vocations” andencourage the kind of “mis-sionary” zeal that has spreadthe faith throughout history.As for female deacons, Francisdeclared that a change wouldweaken, not strengthen,women’s role in the church: “Itwould lead us to clericalizewomen, diminish the great

value of what they have al-ready accomplished, and sub-tly make their indispensablecontribution less effective.”

The pope has shown dis-cernment, prudence and lead-ership and situated himself inthe great Catholic tradition.His letter tracks a recent bookwritten by Cardinal RobertSarah and Pope EmeritusBenedict XVI. Whereas many

in the media, and in the Vati-can, tried to paint the book asan assault on Francis, bothpontiffs agree on core Catholicteachings.

Despite Pope Francis’words, concerns remain thatconfusion over doctrinal mat-ters will continue and that hemay reopen the debate. Thebetter path is to trust thatGod is in control.

In the 1960s, the Vaticanestablished the PontificalCommission on Birth Control,which overwhelmingly recom-mended rejecting the church’sprohibition on contraception.Pope Paul VI responded withthe famous encyclical “Huma-

nae Vitae” (1968). He power-fully reaffirmed the church’sancient and unchangeable un-derstanding of human sexual-ity, even though the majorityof society, and perhaps themajority of Catholics, felt oth-erwise.

Millions of Catholics holdup Paul VI, canonized in 2018by Pope Francis, as proof ofGod’s fidelity to the church.We should trust that God isguiding the current pope, too.

Catholics must remain vigi-lant about threats to thechurch’s teaching. We shouldalways defend the truth withcharity and clarity, admonish-ing those who demand thatthe church bend its teachingto the times. On that score,the apostolic exhortation hassome passages that deservefurther reflection and explana-tion, especially those on eco-logical matters and the rela-tionship between the Gospeland the culture. But there is aprofound difference betweenfighting for what’s right andgiving in to fear that thingswill go terribly wrong. For allCatholics, this is a time for re-newed faith.

Mr. Busch is founder of theNapa Institute, a Catholic layorganization. Ms. Hasson, aboard member of the Institute,is a fellow at the Ethics andPublic Policy Center.

Francis’ affirmationof church doctrineis encouraging foranxious parishioners.

HOUSES OFWORSHIPBy Tim BuschAnd MaryRice Hasson

The RogerStone sen-tencing up-roar is deeplyimpo r tan t ,and not be-cause it’s an-other Trump“ s c a n d a l . ”Rather, it’s aclash that wasalways com-

ing—the moment at which anungoverned bureaucracysmacked up against AttorneyGeneral William Barr’s prom-ise to restore equal justice andaccountability at the JusticeDepartment.

Democrats and the mediaare in a tizzy over the depart-ment leadership’s Tuesday de-cision to file a sentencingmemo calling for Mr. Stone toreceive a shorter prison sen-tence than four line prosecu-tors originally recommended.

The reversal came not longafter President Trumptweeted his own outrage overthe initial sentencing memo,leading to the inevitable con-spiracy theories and calls forinvestigation.

Democrats claimed Mr.Trump politically interferedwith justice, bullying the de-partment into going easy on apolitical crony. Senate Minor-ity Leader Chuck Schumerproclaims “a crisis in the ruleof law.” Rep. Adam Schiff (D.,Impeachment) declared an-other “abuse of power.” Thepress is casting it as ExampleA of how a postacquittal

The Trials of Bill BarrTrump feels emboldened toignore the law.

This has it entirely back-ward. Here’s what actuallyhappened: Justice sourcestell me that interim U.S. At-torney Tim Shea had toldthe department’s leadershiphe and other career officialsin the office felt the pro-posed sentence was exces-sive. As the deadline for thefiling neared, the prosecu-tors on the case nonethelessthreatened to withdrawfrom the case unless theygot their demands for thesestiffest of penalties. Mr.Shea—new to the job—suf-fered a moment of coward-ice and submitted to this ulti-matum. The filing took JusticeDepartment leaders by sur-prise, and the decision to re-verse was made well before Mr.Trump tweeted, and with nocommunication with the WhiteHouse. The revised filing,meanwhile, had the signatureof the acting supervisor of theoffice’s criminal division, whois a career civil servant, not apolitical appointee.

This is Mr. Barr getting ridof politics in justice—as hepromised. In his confirmationhearing, the attorney generalvowed an “even-handed appli-cation of the law” rather thanjudgments based on politics orfavoritism (see Clinton inves-tigation vs. Trump investiga-tion). Before the president’stweet, even liberal commenta-tors were acknowledging theinitial recommendation of upto nine years in prison washarsh, given that Mr. Stone isa first-time offender. The re-quest came from a prosecuto-rial team—which included twomembers of former specialcounsel Robert Mueller’sstaff—that wanted to punishMr. Stone for his ties to apresident they loathe.

And don’t forget the miti-gating factors. Remember howMr. Stone ended up in the Jus-tice Department’s crosshairs.It was after Team Clinton, theDemocratic National Commit-tee and Fusion GPS weap-onized the Federal Bureau ofInvestigation to go after polit-ical opponents. Mr. Muellercould easily have unraveledthis ambush. Instead, he ram-paged through dozens of lives,and—unable to find collusionbetween the Trump campaignand Russia, his originalcharge—obtained indictmentsfor process crimes. That’s noexcuse for Mr. Stone’s behav-ior, but his sentence ought toreflect that he was prosecutedby an overzealous, politicizedJustice Department.

Mr. Barr also promised ac-countability, and the perma-nent bureaucracy is displayingits contempt for that mission.Line prosecutors made clearup front that they’d cause apolitical spectacle unless theirdemands were met. Whenoverruled, four went on towithdraw. In a WashingtonPost op-ed, former Justice De-partment employee ChuckRosenberg summed up the re-

sistance to supervision:“We all understand that theleadership at the top of thedepartment is politicallyappointed, and we makepeace with that.”

Make peace with that?The Constitution providesfor the election of the pres-ident and Senate. They ap-point the officials who callshots and make policy. Ca-reer civil servants aren’tsome aristocratic class en-titled to immunity from su-pervision. They are employ-ees. The danger isn’tpolitical authority, butrather an unelected manda-rin class that believes itself

exempt from democratic ac-countability.

Mr. Barr’s reassertion of ba-sic principles is overdue andimportant. The pity is thatPresident Trump is ruining themoment with ill-consideredtweets and statements thatfeed the conspiracy narratives.Mr. Trump is right to distrustthe bureaucrats, but he shouldtrust the attorney general todo the right thing—and givehim the time and space to doit. His every comment on Mr.Stone puts Mr. Barr in a moredifficult position—and forwhat? Mr. Barr on Thursdaypublicly asked the president tolay off, and he should.

Yet the real story this weekis that in the end the JusticeDepartment requested a rea-sonable sentence for Mr.Stone, and Mr. Barr schooledoverzealous prosecutors inthe importance of evenhand-edness, integrity and respect-ing the chain of command.The only scandal, yet again, isthat so much of partisanWashington is willing tothrow mud on this progress inthe name of damaging thisWhite House.

Write to kim@wsj.com.

Bureaucrats bristle asthe attorney generaldelivers on his pledgeof accountability.

POTOMACWATCHBy KimberleyA. Strassel

Attorney General William Barr

MICHAELREYNOLD

S/SHUTT

ERSTO

CK

A14 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

Now Isn’t the Time to Relax on Opioid AbuseRegarding your editorial “Opioid In-

flection Point?” (Feb. 6): The knee-jerkresponse by politicians in many statesto the opioid addiction and overdosecrisis has been to legislate the pre-scription of opioids by doctors, not-withstanding the fact that doctor pre-scriptions for opioids have beensignificantly decreasing for manyyears. Physicians must comply withlaws that define how many morphinemilligram equivalents of opioids theycan prescribe for what period foracute and chronic pain. Your averagepain management or postoperative pa-tient will do well following these pro-tocols. However, others will not. Theseoutliers will put doctors in the posi-tion of choosing between violatingstate law (risking license forfeiture,criminal prosecution and jail time) orviolating the Hippocratic oath (forwhich they can be sued for patientabandonment). Predictably, one canexpect patients to experience morepain and suffering.

With the continuing Drug Enforce-ment Administration restriction ofopioid production by pharmaceuticalcompanies and the medical commu-nity on full lockdown with prescribingopioids, illegally obtained drugs arethe driving force of the opioid prob-lem today. The cost of methamphet-amines on the street has drasticallyfallen, reflecting increasing supply.

Although it is easy for politicians tobeat their chests and have their waywith law-abiding doctors, it may be adifferent story with foreign drug car-tels and domestic drug pushers.

The reasons for drug abuse aremany, and perhaps the wave of addic-tion and overdose reflects a worseningepidemic of loneliness, anxiety and de-spair. Although the 2018 opioid-over-dose statistics provide a ray of hope, itis hard to believe the demand for drugswill abate in a culture that fosters somuch unhappiness and discontent.

BRIAN KENT, M.D.Tulsa, Okla.

LETTERS TO THE EDITOR

Letters intended for publication shouldbe addressed to: The Editor, 1211 Avenueof the Americas, New York, NY 10036,or emailed to wsj.ltrs@wsj.com. Pleaseinclude your city and state. All lettersare subject to editing, and unpublishedletters can be neither acknowledged norreturned. “Sometimes shredding isn’t enough.”

THEWALL STREET JOURNAL

Pepper ...And Salt

No Mystery About Affordable Housing DearthRegarding your editorial “Rentals

Everywhere, but No Place to Live”(Feb. 6): Anyone who’s paying atten-tion to our national housing-afford-ability challenges agrees that themost effective way to get costs downfor American families is buildingmore housing at a variety of pricepoints, boosting supply to meet de-mand. But when regulation after reg-ulation is layered on to construction,costs go up and new housing becomesout of reach for too many.

A full 32.1% of multifamily develop-ment costs are driven by governmentregulations—fees, standards, approvalrequirements, impact studies. Nearlya third of development costs come di-rectly from federal, state and localgovernments trying to pull the rightlevers and control production in theperfect way. The result? Places withthe heaviest hand of government arehurting hardworking families tryingto make ends meet the most. Factsare stubborn things, but that isn’tstopping central planners and rent-control fanatics from pursuing poli-cies that actually hurt the peoplethey’re trying to help. Americans de-serve better. We should streamline

regulations, give people more housingoptions and bring costs down.

DOUG BIBBYPresident, National Multifamily

Housing CouncilWashington

New rentals are at higher-than-av-erage rent prices because construct-ing new housing is expensive. How-ever, the increase in supply of rentalhousing lowers average apartmentrents when the new apartment pricesare added to used apartment prices.New housing and apartment develop-ment has a multiplier effect on hous-ing prices. For every new home con-structed and sold, approximately two-and-a-half housing units aretransacted, either an older rental orused-home sale over a 12-month pe-riod. Thus, new housing development,even at high prices, reduces averagehousing prices. Conversely, govern-ment housing policies intended to re-strict housing prices, called afford-able-housing mandates, actuallyconstrain new housing developmentby restricting supply, which increasesaverage housing prices. Therefore,the way to produce “affordable”housing is the same as the way toproduce “affordable” cars: buildmore. Government’s best housing pol-icy: Do nothing.

CLIFFORD SONDOCKPresident, Land Use Institute

Melville, N.Y.

The American Dream Is Real for My FamilyI certainly believe that “The

American Dream Is Alive and Well”(Review, Feb. 1). I was born in Viet-nam in a house made of straw andmud on dirt ground. I’m the youn-gest of six kids, so when I immi-grated to America in the early1990s, I was young and lucky enoughto get the full American educationfrom kindergarten to completing mycollege degree at USC. Thankfully, Ialso received a scholarship from theHoratio Alger Association, an organ-ization that helps promising stu-dents in need offset the cost ofhigher education.

If achieving the American dream isat least somewhat related to money,then understanding how to create,

maintain and grow wealth are thetimeless keys to unlock it. Whatmakes the rich different from thebroke (poor is a state of mind) ishaving the skills to turn income intoassets that can increase in value andgenerate more income. I believe it isimperative that we prepare all stu-dents with skills that empower themto achieve and sustain financial inde-pendence. We must educate them onthese topics while they’re in schoolso that they are ready for the finan-cial responsibilities of adult life andcan focus on achieving their own ver-sion of the ever-evolving Americandream.

NATHAN NGUYENOrange, Calif.

China’s Taiwan Policy Hurts World HealthRegarding your editorial “China’s

Taiwan Quarantine” (Feb. 5): We mustexamine the SARS epidemic’s history,which shows that leaving Taiwan outof the World Health Organization(WHO) not only harmed global effortsto find a solution, but also the lives ofTaiwanese citizens.

As Eugene Chien, Taiwan’s foreignminister at the time, wrote in a 2003article, Taiwan was excluded from cru-cial communication channels includinga global outbreak-response system,which delayed Taiwan’s reports to theWHO. In that time of crisis, the WHOcould not provide direct help to Tai-wan. Sample viruses and reagents hadto be rerouted through Beijing.

A spokesman from the Chinese gov-ernment disputes Taiwan’s statements,claiming that China had shared infor-

mation in an April 2003 symposiumand by May 2003 would allow WHOSARS experts in Taiwan. But theseovertures occurred only after Taiwan’sfirst fatalities, a delay which is toolate in infectious-disease control.

When it comes to today’s coronavi-rus disease (Covid-19), Taiwan isn’tseeking membership in the WHO in abid for political power; it is seekingmembership for the health of its citi-zens and communication with interna-tional public-health efforts. As Ameri-can citizens concerned aboutcontaining the coronavirus pandemic,we need to rectify mistakes of thepast.

PROF. TIMOTHY FLANIGAN, M.D.KATIE CHIOU

Brown UniversityProvidence, R.I.

Iowa Caucus Ballots Aren’tSecret; Shouldn’t They Be?

Regarding your editorial “The IowaCaucus Fiasco” (Feb. 5): I’m curiouswhy the caucus model isn’t consid-ered voter suppression. Not only mayyou be unable to participate due toworking hours or child-care issues,but you must declare to friends,neighbors, co-workers, maybe evenyour boss, your vote. If I were cyni-cal, I might call it voter intimidation.

The privacy of the ballot should besacrosanct in primaries and elections.

LYNDA GODDARDRedondo Beach, Calif.

Trump’s Worst Enemy

A fter his Senate impeachment acquittal,we wrote that President Trump’s his-tory is that he can’t stand prosperity.

Well, that was fast. The Presi-dent’s relentless popping offthis week about the sentenc-ing of supporter Roger Stonehas hurt himself, his JusticeDepartment, and the properunderstanding of executivepower. That’s a notable trifecta of self-destruc-tive behavior even by his standards.

Mr. Trump handed another sword to his op-ponents when he fulminated on Twitter aboutthe initial recommendation of a seven-to-nineyear prison sentence for Mr. Stone. He is rightthat such a sentence would be excessive. Mr.Stone was convicted of lying to Congress,which often receives minimal jail time. Hisconviction for witness tampering was moreserious but involved a faux-macho threat(“prepare to die”) that even the witness saidhe didn’t take literally.

i i i

As it happens, senior Justice officials hadconcluded on their own that the sentence rec-ommendation was excessive and had decidedto rescind it beforeMr. Trump’s tweet. But byranting publicly as he did, the President gaveDemocrats an opening to claim that AttorneyGeneral Bill Barr was taking orders from theWhite House. Four prosecutors (two were partof Robert Mueller’s investigation) withdrewfrom the Stone case in protest, and Democratshad another Trump scandal to flog. Kim Stras-sel has more background nearby.

The uproar is obscuring that Mr. Barr hadevery reason and authority to reduce the sen-tencing recommendation. Up to nine years isextreme, as even some career prosecutors be-lieved. All prosecutors ultimately work for Mr.Barr, and he is accountable to the votersthrough the President.

If the decisions of line prosecutors can’t bequestioned by their political superiors, thechances increase of prosecutorial abuse. If ca-reer prosecutors are king, then why gothrough the trouble of nominating and con-firming an Attorney General and his deputies?This erodes political accountability under theseparation of powers.

But before Mr. Barr could explain any ofthis, Mr. Trump compounded his political fel-ony by praising the AG for rescinding the sen-tencing recommendation. That gave moreammunition to Democrats and underminedMr. Barr. The President then shot himselfagain by attacking Judge Amy Berman Jack-son, who is presiding over the Stone case. “Isthis the Judge that put Paul Manafort in SOL-ITARY CONFINEMENT, something that not

even mobster Al Capone had to endure?” hetweeted.

Mr. Trump makes no friends in the judi-ciary with such political at-tacks, and it can’t help Mr.Stone’s chances of getting areduced sentence. If the Pres-ident dislikes the sentence,he has his pardon power.Meantime, knock it off.

Mr. Trump doesn’t understand, or perhapsdoesn’t care, that all of this hurts Mr. Barr,whom he can ill-afford to lose. The AG issmart, tough and independent. He will giveMr. Trump his candid advice on the law, whichis more than most of his advisers do. Mr. Barrfinally spoke up in frustration about thisThursday, telling ABC News that Mr. Trump’soutbursts are making it “impossible for me todo my job.”

The President should listen because heneeds Mr. Barr more than Mr. Barr needs tobe AG. The danger for Mr. Trump is that Mr.Barr will resign because he is tired of havinghis credibility undermined by a President whocan’t control his political id no matter thedamage it causes.

i i i

Mr. Trump won’t like to hear any of this,and no doubt his loyalists will blame Demo-crats, the media and Mr. Barr. But Mr. Trumpis his own worst enemy. Time and again hisneed to dominate the news, to justify even hismistakes, and to rebut every critic gets himinto needless trouble.

When he fired James Comey, he couldn’tlive with the Justice Department’s cogent andcorrect explanation of the FBI director’s manymistakes. Instead he tweeted the idle claimthat he had taped his private conversationswith Mr. Comey. That led to Robert Mueller’stwo-year investigation.

When the Mueller probe finally ended, Mr.Trump could have claimed vindication andmoved on. Instead he unleashed Rudy Giulianito play in the mud bath of Ukrainian politicsand attack a U.S. ambassador. He ignoredwarnings from other advisers until it was toolate, and he gave Democrats the opening toimpeach him.

In the wake of his Senate acquittal, Mr.Trump should be campaigning for re-electionand enjoying the disarray of his opponents.Instead he gives every appearance of wantingto settle scores with anyone who contributedin any way to impeachment.

He is helping the Democrats who are run-ning against the Senators who voted to acquit.And he is making millions of voters ask if theyreally want to take a risk on giving him somuch power for another four years.

He needs to stoptweeting about casesand let Barr do his job.

Culinary Union vs. Bernie Sanders

N ow that Bernie Sanders is the Demo-cratic presidential candidate to beat,his socialism is drawing fresh scru-

tiny—and not merely fromcapitalists. With Nevada’scaucuses coming on Feb. 22,the state’s powerful CulinaryUnion is pointing out that Mr.Sanders wants to abolish thehealth benefits it has spentyears bargaining to get.

The Culinary Union has about 60,000 mem-bers. Its affiliated health center in Las Vegasprovides many services free and has doctors,dentists, optometrists, a pharmacy and urgentcare. Mr. Sanders, one union flier warns, would“End Culinary Healthcare” and “Require ‘Medi-care For All.’” The flier explains that Pete Butt-igieg, Amy Klobuchar and Joe Biden would“Protect Culinary Healthcare.”

Another flier doesn’t mention names: “Wehave fought for 85 years to protect our health-care. Why would we let politicians take itaway?” Some candidates might promise higherwages, but they “have never sat at our bargain-ing table or been on a 24/7, 6 years, 4 months,and 10 days strike line—like we have to makean employer pay for healthcare.”

This stance has brought blowback from em-bittered Bernie bros. “It’s disappointing,” aunion official said Wednesday, “that SenatorSanders’ supporters have viciously attacked

the Culinary Union and working families in Ne-vada simply because our union has providedfacts on what certain healthcare proposals

might do to take away the sys-tem of care we have built over8 decades.”

Nevada’s Democratic cau-cus attracted about 84,000voters in 2016. Entrance pollssaid 28% were from union

households. On Thursday the Culinary Unionsaid it won’t endorse any candidate, but its op-position to Medicare for All could still tip thescales. A day after the NewHampshire vote, Mr.Buttigieg gave “culinary workers” a shout-outon MSNBC. Such workers, he said, “are not in-terested in Senator Sanders’s vision of elimi-nating all private plans.”

If he wants to broaden this pitch, Mr. Butt-igieg could add millions of seniors. Medicarefor All would shunt everyone into a new single-payer program, which also means demolishingtoday’s Medicare. That includes doing awaywith private plans under Medicare Advantage,which enroll about 22 million people.

Exit polls showed that 58% of New Hamp-shire primary voters supported “a single gov-ernment plan for everyone.” A plurality ofthem, no surprise, went for Mr. Sanders. Thereare plenty of ways to drive that number south,if the other Democratic candidates start tellingthe truth about Bernie’s socialist plans.

Workers of the world (atleast in Nevada) unite

against Medicare for All.

The Great Student Loan Writedown

I f banks reported their liabilities using thesame fictitious accounting that the federalgovernment does for student loans, they’d

be chargedwith fraud. Beholdthe Congressional Budget Of-fice’s latest restatement of thecost for income-based repay-ment plans.

The ObamaAdministrationpromoted these plans as awayto reduce student loan defaults. Borrowerswhocouldn’t afford their monthly payments couldrefinance their loans for free. Theymerely hadto agree to pay 10% of their discretionary in-come for 20 years—10 years for thosewhoworkin “public service”—after which their balancewould be forgiven.

The number of borrowerswho have enrolledin these plans has blown away forecasts. From2010 to 2017, the share of all borrowers repayingdirect loans through these plans increased to27% from 10%. The plans have especially caughtonwith graduate students with large balances.About 56% of debt disbursed to graduate stu-dents is being repaid through these plans.

CBO estimates that the governmentwill windup forgiving $167 billion of graduate debt inthese plans over the next decade. The write-

down for undergraduate loansis less—$40 billion—but thebudget gnomes have repeat-edly underestimated loancosts only to revise them up-ward later.

In 2012 the agency forecastthat student loans would turn a $219 billionprofit for the government over 10 years. Nowit projects theywill cost the government $11 bil-lion through 2029—using the government’s fic-titious accounting that doesn’t consider bor-rower risk. Under fair-value accountingstandards that businesses use, loans are fore-cast to cost taxpayers $263 billion.

Perhaps this seems like a bargain as BernieSanders promises to cancel all $1.6 trillion inoutstanding student debt. The scary thing, asthe ObamaAdministration showed by refinanc-ing hundreds of billions of dollars in loans, isthat a President Sanders might not even needCongress to do it.

The cost of forgivingdebt keeps growingand growing and . . .

REVIEW & OUTLOOK

OPINION

THEWALL STREET JOURNAL. Friday, February 14, 2020 | A15

T ransgender ideology cantake on a comical charac-ter, as in a recent Ameri-can Civil Liberties Unioncommentary objecting to

sales tax on tampons and similarproducts while pondering: “How canwe recognize that barriers to men-strual access are a form of sex dis-crimination without erasing the livedexperiences of trans men and non-bi-nary people who menstruate, as wellas women who don’t?”

Yet it’s one thing to claim that aman can “identify” as a woman orvice versa. Increasingly we see adangerous and antiscientific trendtoward the outright denial of biolog-ical sex.

“The idea of two sexes is simplis-tic,” an article in the scientific jour-nal Nature declared in 2015. “Biolo-gists now think there is a widerspectrum than that.” A 2018 Scien-tific American piece asserted that“biologists now think there is alarger spectrum than just binary fe-male and male.” And an October2018 New York Times headlinepromised to explain “Why Sex Is NotBinary.”

The argument is that becausesome people are intersex—they havedevelopmental conditions resultingin ambiguous sex characteristics—the categories male and female exist

The Dangerous Denial of Sexon a “spectrum,” and are there-fore no more than “social con-structs.” If male and female aremerely arbitrary groupings, it fol-lows that everyone, regardless ofgenetics or anatomy should befree to choose to identify as maleor female, or to reject sex entirelyin favor of a new bespoke “genderidentity.”

To characterize this line of rea-soning as having no basis in real-ity would be an egregious under-statement. It is false at everyconceivable scale of resolution.

In humans, as in most animalsor plants, an organism’s biologicalsex corresponds to one of two dis-tinct types of reproductive anat-omy that develop for the produc-tion of small or large sex cells—sperm and eggs, respectively—andassociated biological functions insexual reproduction. In humans,reproductive anatomy is unambig-uously male or female at birth morethan 99.98% of the time. The evolu-tionary function of these two anato-mies is to aid in reproduction via thefusion of sperm and ova. No thirdtype of sex cell exists in humans, andtherefore there is no sex “spectrum”or additional sexes beyond male andfemale. Sex is binary.

There is a difference, however, be-tween the statements that there areonly two sexes (true) and that every-one can be neatly categorized as ei-ther male or female (false). The exis-tence of only two sexes does notmean sex is never ambiguous. But in-tersex individuals are extremely rare,and they are neither a third sex norproof that sex is a “spectrum” or a“social construct.” Not everyoneneeds to be discretely assignable toone or the other sex in order for bio-logical sex to be functionally binary.To assume otherwise—to confuse

secondary sexual traits with biologi-cal sex itself—is a category error.

Denying the reality of biologicalsex and supplanting it with subjec-tive “gender identity” is not merelyan eccentric academic theory. Itraises serious human-rights concernsfor vulnerable groups includingwomen, homosexuals and children.

Women have fought hard for sex-based legal protections. Female-onlyspaces are necessary due to the per-vasive threat of male violence andsexual assault. Separate sportingcategories are also necessary to en-sure that women and girls don’thave to face competitors who haveacquired the irreversible perfor-mance-enhancing effects conferredby male puberty. The different re-productive roles of males and fe-males require laws to safeguardwomen from discrimination in theworkplace and elsewhere. The false-

hood that sex is rooted in subjectiveidentity instead of objective biologyrenders all these sex-based rightsimpossible to enforce.

The denial of biological sex alsoerases homosexuality, as same-sexattraction is meaningless withoutthe distinction between the sexes.Many activists now define homosex-uality as attraction to the “same gen-der identity” rather than the samesex. This view is at odds with thescientific understanding of humansexuality. Lesbians have been de-nounced as “bigots” for expressing areluctance to date men who identifyas women. The successful normaliza-tion of homosexuality could be un-dermined by miring it in an unten-able ideology.

Those most vulnerable to sex de-nialism are children. When they’retaught that sex is grounded in iden-tity instead of biology, sex catego-

ries can easily become conflatedwith regressive stereotypes ofmasculinity and femininity. Mas-culine girls and feminine boysmay become confused about theirown sex. The dramatic rise of“gender dysphoric” adolescents—especially young girls—in clinicslikely reflects this new culturalconfusion.

The large majority of gender-dysphoric youths eventually out-grow their feelings of dysphoriaduring puberty, and many end upidentifying as homosexual adults.“Affirmation” therapies, which in-sist a child’s cross-sex identityshould never be questioned, andpuberty-blocking drugs, advertisedas a way for children to “buy time”to sort out their identities, mayonly solidify feelings of dysphoria,setting them on a pathway to moreinvasive medical interventions andpermanent infertility. This pathol-

ogizing of sex-atypical behavior is ex-tremely worrying and regressive. It issimilar to gay “conversion” therapy,except that it’s now bodies instead ofminds that are being converted tobring children into “proper” align-ment with themselves.

The time for politeness on this is-sue has passed. Biologists and medi-cal professionals need to stand upfor the empirical reality of biologicalsex. When authoritative scientific in-stitutions ignore or deny empiricalfact in the name of social accommo-dation, it is an egregious betrayal tothe scientific community they repre-sent. It undermines public trust inscience, and it is dangerously harm-ful to those most vulnerable.

Mr. Wright is an evolutionary bi-ologist at Penn State. Ms. Hilton is adevelopmental biologist at the Uni-versity of Manchester.

By Colin M. WrightAnd Emma N. Hilton

DAVID

KLE

IN

Transgender ideologyharms women, gays—andespecially feminine boysand masculine girls.

OPINION

Why the Economics Establishment Hates Judy SheltonIt’s not for a lowlynewspaper colum-nist to instruct theSenate how tovote on Judy Shel-ton’s nominationto a seat on theFederal ReserveBoard of Gover-nors. But howabout we all atleast stop pretend-

ing she’s crazy simply because shedares to challenge orthodoxy on thesingle most important economicquestion of our day?

That question: Why has produc-tivity growth proved so hard to sus-tain in developed economies for thepast generation?

This mystery bedevils centralbanks. Productivity—the ability ofworkers to produce goods and ser-vices of real value to others evermore efficiently—is the indispensableingredient for prosperity. Orthodoxtheory predicts that lower interestrates should stimulate more invest-ment, and more investment shouldstimulate more productivity.

Yet since President Nixonslammed shut the gold window in1971, interest rates broadly havefallen and Wall Street has becomehyperactive alongside a declining

rate of Main Street productivitygrowth. Only occasional tax reformsand the 1990s computer revolutionhave reversed that overarchingtrend, but never permanently andnever to the level that obtainedmidcentury.

We were supposed to get richeronce we freed monetary and fiscalauthorities from the shackles ofgold. Instead, in an important sensewe’ve grown poorer than we other-wise would have been if productiv-ity growth had maintained its Bret-ton Woods-era pace.

Such a surprising result has sentacademic economists reaching fortheir pens. They have produced abevy of dense and mostly silly theo-ries to try to explain why these twoobviously connected economic de-velopments aren’t related at all. Ei-ther American labor unions weak-ened, or China saves too much, oraging populations depress produc-tivity growth, or President Trump’strade war, or . . .

The one thing all these theorieshave in common is that they ascribeto central banks awesome powersover every economic outcome ex-cept the one that matters most—productivity.

Ms. Shelton’s nomination to theFed embarrasses this crew because

she’s not afraid to point out how ri-diculous that is. She has a theoryfor sagging productivity growth,and that theory places responsibil-ity firmly at the feet of monetarypolicy:

Not all investments are produc-tive. Everyone in an economy—con-sumers, savers, investors, manag-ers—needs consistent price signalsboth domestically and internation-ally to make decisions that will leadto more-productive investments.

Ms. Shelton has warned for decadesthat exchange-rate chaos andchronic domestic mispricing of capi-tal by central banks (the two phe-nomena are inextricably linked)have made it impossible for inves-tors to discern how best to allocatetheir money.

The evidence is everywhere.Global monetary instability lures as-tonishing amounts of capital intospeculative bets on exchange-rate

movements and financial marketsrather than productive capitalequipment or research and develop-ment for businesses.

Unanchored money inflates assetprices and exacerbates politicallyand economically corrosive wealthinequality based on the accident ofasset ownership rather than the re-ward of entrepreneurship. Rampantmisallocation of investment, espe-cially toward low-productivity sec-tors such as construction, producesone unsustainable debt boom andone catastrophic financial crisis af-ter another.

Or, as Ms. Shelton wrote in thesepages last year, “the increasing fi-nancialization of gross domesticproduct is unhealthy because thegrowing size and profitability ofthe finance sector comes at the ex-pense of the rest of the economyand increases income inequality.. . . The kind of economic growththat increases living standardsacross all income levels occurs un-der conditions of monetary and fi-nancial stability.”

Recent academic research sug-gests she’s correct. Economists atmajor central banks and elsewherehave studied the extent to whichcapital mispricing by central banks(they don’t always put it that way,

but that’s what they’re describing)depresses productivity growth,whether by allowing larger firms tocrowd out more-productive upstartcompetitors or sustaining zombiecompanies or any of a host of othermechanisms.

The research department at theBank for International Settlements,the global club for central banks,has churned out one paper after an-other after another explaining howmonetary-policy-induced creditbooms and exchange-rate swingssuppress and distort investment andproductivity.

Those technical papers are easilyoverlooked by the voting public. Ms.Shelton’s contribution to these de-bates is that she is not ignorable.Her vigorous public defense of mon-etary stability as a solution to theproductivity puzzle challenges de-fenders of today’s orthodoxy to ex-plain how their model is any betterthan a fixed standard such as thegold she advocates. They can’t do itin light of the serial disasters of thepast 50 years.

No wonder her nomination haselicited such shameful vitriol fromthe economics professoriate andtheir friends in the press. Their beefwith Ms. Shelton isn’t that she’s anut. It’s that she might be right.

They fear she may be rightabout the gold standardand the causes of decliningproductivity growth.

POLITICALECONOMICSBy Joseph C.Sternberg

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‘Nationalist Conservatives’ Try to Think Locally, Act Globally

Rome

‘T oday’s nationalist move-ments and leaders are be-ing anathematized,” Chris-

topher DeMuth declared at theopening of the National Conserva-tism conference. “We are calledprimitives, xenophobes, paranoids,racists—even populists,” the formerAmerican Enterprise Institute exec-utive added.

The crowd loved Mr. DeMuth’sline, and no wonder. “Populist” hascome to mean little more than“someone I don’t like who getsvotes.” The media lazily or mali-ciously depicts conservative “popu-lism” as a natural home for racism,

sexism, anti-Semitism and invidiousattitudes. The Feb. 4 summit wasmeant as a step toward an allianceof nationalist parties that explicitlyexcludes unsavory elements.

It’s a worthy goal, given how thebland centrism of leaders like Ger-man Chancellor Angela Merkel hasleft many right-leaning Westernersdissatisfied. Even those who sup-port the “establishment” rightshould hope for a better-organizedinsurgent conservatism, if only tohelp ward off left-wing demagoguessuch as Bernie Sanders, Britain’sJeremy Corbyn and France’s Jean-Luc Mélenchon.

Internationalizing nationalismseems like a contradiction, and itwon’t be easy. Antiestablishment

parties entered last year’s Euro-pean Parliament elections with mo-mentum, but divisions kept themfrom attaining meaningful power.Even amid the amiable atmosphereat the conference in Rome, thesame divides that limited national-ists’ influence were apparent.

Simply getting everyone togetherwas a challenge. Italian Prime-Min-ister-in-waiting Matteo Salvini mys-teriously pulled out of the confer-ence with little notice. The BritishConservative Party—which was cel-ebrated throughout the day for de-livering Brexit—censured one of itsown for attending an “anti-Semitic”event. That’s a strange accusation,given that one of the conference’schief organizers is the Israeli politi-cal scientist Yoram Hazony.

Mr. Hazony acknowledges realdifferences but argues that Eu-rope’s national conservatives haveenough in common to work to-gether. He tells me that theybroadly want to take back controlfrom Brussels over immigration,monetary and fiscal policy, alongwith their judicial systems. Moststill support international securitycooperation and Europe’s commonmarket. But along with a disdainfor the mainstream media, that’swhere the unity ends.

The most telling interventionscame from Hungarian Prime Minis-ter Viktor Orbán and formerFrench National Assembly deputyMarion Maréchal, the 30-year-oldniece of National Rally chief Ma-rine Le Pen.

The charismatic Ms. Maréchaloutlined a vision of conservatismfocused on environmentalism andhelping neglected voters outside

major cities. She rejected the “reli-gion” of free markets and imagineda conservatism that addressesoverpopulation—not exactly musicto many Catholic attendees’ ears.“This tradition likes social commit-ment but dislikes socialism,” sheexplained, according to preparedremarks. “It is in favour of Stateintervention, without being central-istic. It adheres to Catholicism butmay be hostile to the Church.”

The audience got excited whenshe said that “global problems sel-dom have global solutions.” But shealso imagined “a new European bal-ance of power” based around a“Latin alliance” of France, Italy,Portugal and Spain. This groupwould counter today’s dominantEuropean Union forces alongsidethe Czech Republic, Hungary, Po-land, Slovakia, the U.K.—and Rus-sia. Good luck getting Warsaw tosign up for deeper cooperation withMoscow against Brussels.

The real star of the event wasMr. Orbán, who has made his na-tionalist conservative project a real-ity. He shares Ms. Maréchal’s skep-ticism of immigration andmulticulturalism but parts ways oneconomics, talking up fiscal respon-sibility and rejecting Europe’s tradi-tional affinity for an expansive wel-fare state. “I have to be financially

very, very stable—otherwise thereis no basis to run our conservativepolitics,” Mr. Orbán said. “It’s obvi-ous that we provided more welfareon the basis of workfare.” The roleof his policies in Hungary’s eco-nomic success is more complicated,but the sentiment is right.

If a nationalist alliance evermanages to take control of Brus-sels, it will have to make economicdecisions for the future of the bloc.And the debate within nationalistgroups over economics isn’t over.Free-marketeers may think nation-alism passé, but ignoring it pres-ents risks. They should take part inevents like the Rome conference.They can help purge the dark“isms” while fighting for liberalmarkets and free trade alongsidestrong national identity.

“You’re seeing the first steps” ofa multiyear project, Mr. Hazony says.“I think that many of the people inthe room felt that there’s no longerreally any choice.” He adds, “If wedon’t work together, then each of usindividually is going to lose againstthis far greater power.”

Next time everyone gets to-gether, why not organize a panelwith leaders from different partiesto contrast what winning means foreach of them? Is it the breakup ofthe EU? Reform? If so, what doesthat look like? Focusing on whatunites nationalists is understand-able, but without a frank and publicreckoning of divisions within themovement, national conservatismwon’t ever be anything more thanan intriguing idea.

Mr. O’Neal is a London-based ed-itorial page writer for the Journal.

By Adam O’Neal

Can they keep unsavoryelements out and form acompelling agenda forgoverning Europe?

A16 | Friday, February 14, 2020 * * * * THEWALL STREET JOURNAL.

WORLD NEWS

where to stand on the edge ofthe sugar-cane field to avoidthe fires as they looked out forrabbits and iguanas, which aresought for their eggs.

When it was safe, theywould enter the field, grab-bing the animals. If they werehiding under the soil, they’duse sticks to dig them out. Thechildren were proud of theircatches, he said.

If the animals were still

young and healthy, Isaachwould bring them home tobreed and sell the offspring. Ifthe rabbits were hurt or tooold to reproduce, his familyate them.

“You could make a good lit-tle soup,” he said.

On the day the blaze killedhis younger brother, Isaachwasn’t home. “I don’t knowhow this happened becausethey knew where to be,” he

said. “They had experience.”A few of the boys survived

long enough to make it to a hos-pital, only to encounter Venezu-ela’s broken health-care system.Keivi Rodríguez’s family rushedthe 11-year-old to Cagua’s hospi-tal on motorbike. The hospitaldidn’t have the equipment totreat him so they decided to goto a bigger hospital in thenearby city of Maracay.

There were no working am-

bulances, so the boy’s familylaid him down in the back of ataxi, using pillows and blan-kets to try to comfort hischarred body during the 25-minute ride. He died shortlyafter arriving, relatives said.

José Gregorio, the 11-year-old who hoped to be a chef,also died after reaching thehospital. His mother remem-bers his last words: “He toldme not to cry.”

Children at play in the destitute neighborhood of Cagua, Venezuela, that washome to 11 boys who died in a fire last month while trying to catch wild rabbits ina sugar-cane field, bottom left. A photo of one of the boys, 11-year-old JoséGregorio Carrasquel, is held in the hand of his mother, Belkis Carrillo. He wentafter rabbits, she said, because ‘he didn’t like to see me worried about food.’

WORLDWATCH

CHINA

Xi Appoints Ally toKey Hong Kong Post

Chinese President Xi Jinpinginstalled a former lieutenant andonetime law enforcer to headBeijing’s Hong Kong policy-mak-ing agency, continuing a shake-up meant to tighten control overthe protest-racked city.

The appointment of XiaBaolong as director of the HongKong and Macau Affairs Office,announced Thursday by state me-dia, puts the former British colonyunder the supervision of a manwho once as a provincial leaderupheld Communist Party author-ity with a campaign to tear downChristian churches and crosses.

Mr. Xia, who lacks experience inHong Kong affairs and had retiredfrom front-line politics nearly threeyears ago, was a deputy to Mr. Xiwhen the Chinese leader was atop provincial official in the 2000s.Beijing had replaced the chief ofits liaison office in Hong Kong, aless-senior post, in early January.

Eight months of anti-Beijingprotests in Hong Kong haveposed a challenge to Mr. Xi’sleadership, and remain a sourceof concern even with a coronavi-rus outbreak now the priority forChina’s leaders.

The personnel shake-uphasn’t touched Hong Kong’sleader, Chief Executive CarrieLam, whose approval ratingshave dropped to record lows.

—Chun Han Wong

PAKISTAN

Leaders Move toRein In Social Media

Authorities in Pakistan ap-proved sweeping new regulationsrestricting social media, rulesthat would dramatically changethe way companies such asFacebook and Twitter operate inthe country and critics say wouldthreaten freedom of expression.

Under the new rules, passedby Pakistan’s governmentWednesday, media companiesmust remove content Pakistaniauthorities deem objectionable,set up offices and data centersin the country, and remove theencryption on content if re-quested by authorities.

They must take down certainposts by Pakistanis basedabroad. If the companies don’tcomply the firm’s platformscould be blocked in the country.The government denies that therules stifle free speech.

Many of the affected compa-nies didn’t respond to requeststo comment.

“These rules jeopardize thepersonal safety and privacy ofcitizens, and undermine free ex-pression. We urge the govern-ment to reconsider these rules,which are likely to be detrimen-tal to Pakistan’s ambitions for adigital economy,” said the AsiaInternet Coalition, an industryassociation of internet and tech-nology companies.

—Saeed Shah

MEXICO

Bank Makes FifthConsecutive Rate Cut

The Bank of Mexico cut inter-est rates Thursday in its firstmonetary-policy meeting of theyear as inflation remained closeto its target and risks to eco-nomic growth increased.

The board of governors votedunanimously to lower the over-night interest-rate target to 7%from 7.25% in a fifth consecutivequarter-percentage-point reduc-tion. It was the five-memberboard’s first unanimous decisionsince May 2019.

“The current levels of head-line inflation, the inflation out-look within the time frame in

which monetary policy operates,the greater amount of economicslack, and the recent behavior ofexternal and domestic yieldcurves, were considered,” thecentral bank said.

Mexico’s consumer-price infla-tion picked up to 3.2% in Janu-ary from 2.8% in December andremains close to the centralbank’s 3% target. While inflationslowed last year, gross domesticproduct contracted 0.1%, accord-ing to preliminary data.

The future path of inflation re-mains uncertain, and the outlookfor economic growth is biased tothe downside, the bank said.

Thursday’s rate cut is widelyexpected to be followed by addi-tional reductions this year.

—Anthony Harrup

sury minister who previouslyworked for Goldman SachsGroup Inc. before founding aninvestment fund.

In the months since Mr.Johnson romped to an electionvictory on a wave of blue-col-lar support in December, hehas talked of the importanceof pumping funds into de-prived areas. A key questionwas how Britain would pay for

the major upgrade to infra-structure the prime ministerwas promising.

Investors bet that Mr. Su-nak’s arrival means the Trea-sury won’t try to block moregovernment borrowing tostimulate the economy. TheBritish pound rose 0.6%against the dollar to trade at$1.30. The yield on 10-year U.K.government bonds also rose on

the expectation the country’sfiscal rules will be loosened.

Mr. Javid had a tense rela-tionship with Downing Streetofficials, officials said. Mr.Johnson and his adviser, Domi-nic Cummings, have increas-ingly looked to centralize powerin the prime minister’s office.

Mr. Sunak’s senior adviserswill be “fused” with DowningStreet’s team of advisers, aperson familiar with the mat-ter said.

Five other cabinet memberswere fired on Thursday. Attor-ney General Geoffrey Cox, Envi-ronment Secretary Theresa Vil-liers, Northern Ireland SecretaryJulian Smith and Housing Min-ister Esther McVey were amongthose to confirm their dismiss-als. Other senior members ofMr. Johnson’s cabinet were ex-pected to stay in place.

It was the second cabinetshuffle Mr. Johnson has pre-sided over since he becameprime minister in July. Shortlyafter arriving in DowningStreet, Mr. Johnson gutted hiscabinet, removing 18 seniorministers who opposed hisplans for Brexit.

After the turbulence that led

up to Britain’s divorce from theEU, Mr. Johnson has sought tocalm things down. This week,he pushed ahead with a plan tobuild a £100 billion ($130 bil-lion) rail upgrade through tothe north of the country. Healso followed through with ad-vice given to his predecessor toallow Huawei Technologies Co.to build part of the country’snext-generation telecommuni-cations infrastructure.

Britain officially left the EUon Jan. 31. In March, negotia-tions will begin between theU.K. and the EU over futuretrading relations between thetwo, which Mr. Johnson hassaid he wants settled by the endof the year. While they are un-der way, the country will main-tain its trading ties with the EU.

Mr. Sunak assumes one ofthe U.K.’s top government jobsless than six years after enter-ing Parliament as a rank-and-file lawmaker. The son of afamily doctor and a pharma-cist, his pre-Parliament ré-sumé includes a stint at theChildren’s Investment Fund, aLondon-based hedge fund.

—Anna Hirtensteincontributed to this article.

LONDON—British PrimeMinister Boris Johnson re-placed U.K. Treasury chief Sa-jid Javid, a surprise moveaimed at consolidating Mr.Johnson’s power as the coun-try adapts to life outside theEuropean Union.

Mr. Javid on Thursday saidhe resigned from the govern-ment’s main economic portfolioafter Mr. Johnson asked that hereplace all his senior advisers.

“I was unable to acceptthose conditions. I don’t be-lieve any self-respecting minis-ter would accept such condi-tions and so therefore I felt thebest thing to do was to go,” hesaid in an interview with theBritish Broadcasting Corp. Hisdeparture came alongside abroader shuffle where severalother ministers were replaced.

Mr. Javid, the first Muslimto hold the role of Treasurychief, was due to present thecountry’s budget in March andwas the shortest-serving min-ister in the role since 1970.

He will be succeeded by Ri-shi Sunak, a 39-year-old Trea-

BY MAX COLCHESTERAND JASON DOUGLAS

U.K. Treasury Chief Ousted

the animals are high in proteinand prolific breeders.

“A rabbit isn’t a pet, it is2.5 kilograms of meat,” FreddyBernal, a Socialist party stal-wart and former agricultureminister, said in 2017 whenlaunching “Plan Rabbit.”

Luis Rafael Salas, a 35-year-old lawyer and activist whoruns a soup kitchen in theneighborhood where the 11 boyslived, said the lack of proteinhas caused chronic malnourish-ment among children here.

“There’s a lot of hunger,”Mr. Salas said. “They get tiredquickly. It’s really critical.”

Raised in the same neigh-borhood, Mr. Salas fondly re-members his childhood whenhe chased brown and blackrabbits that stumble out of thesugar-cane fields, disorientedby smoke and heat from thefires farmers typically set be-fore harvest. For him, it wasboth entertainment and acommunity tradition.

As jobs disappeared andfood prices shot up, though, itbecame a way to get a mealfor people struggling to makeends meet.

“It’s changed a lot,” Mr. Sa-las said. “You used to do it asa hobby because there was al-ways food at home eventhough we were poor.”

Attorney General Tarek Wil-liam Saab, a close ally of Mr.Maduro, sent his condolencesto the families of the boys inCagua. At a news conference,he said prosecutors were in-vestigating the incident.

Eight of the victims wererelated, including one set oftwins. Most of them lived onthe same narrow street, wheretin-roofed homes are wedgedbetween the sugar-cane fieldsand the cemetery where theyare now buried.

“There’s a hole that remainsin you,” said Carmen Figueroa,the mother of Erinson Plaza, a14-year-old who was a promis-ing baseball player and whodied that day. “I’ve been ask-ing God to give me thestrength to continue on.”

Isaach Raya, 17, taught hisyounger brother and cousins

CAGUA, Venezuela—Thesugar-cane fields on the edgeof this city have long been aplayground for children whorun free and munch on thesweet stalks growing underthe tropical sun.

They are also a place tochase and catch wild rabbits.For José Gregorio Carrasquel,an 11-year-old who hoped to oneday be a chef, that was a way toprovide his mother and six sib-lings with much-needed meatamid widespread hunger herecaused by an economic collapse.

“He didn’t like to see meworried about food,” said theboy’s mother, Belkis Carrillo.

Last month, José Gregorioand 10 other boys died afterbeing caught in a fire thatswept through a sugar-canefield as they tried to catchrabbits. The boys aged 10 to 18years old were trapped by theflames when the wind changeddirection, family memberssaid. Their bodies were foundcharred amid the stubble.

The tragedy has devastatedthis community just a shortdrive from the capital, Cara-cas, and underlines the grow-ing gap between life in thatcity, which is seeing signs ofeconomic improvement asPresident Nicolás Maduro liftsprice controls and allows dol-lars to circulate, and much ofthe countryside, where pros-pects are as bleak as ever.

In Cagua, the electricitystill regularly goes out, resi-dents say. Drivers wait in longlines for gasoline. Factoriesthat served the agriculturesector and provided jobs re-main shut. Hospitals lack basicmedical supplies and schoolshave fallen into decay.

People struggle to remem-ber the last time they atemeat. They rely on rice, yuccaand arepas, or corn cakes.Once every three or fourmonths, the government deliv-ers a box of subsidized foodthat lasts just a few days. Andthey sometimes eat rabbits, apractice the autocratic govern-ment has encouraged because

BY RYAN DUBE

Venezuelan Boys’Search for FoodEnds in Tragedy

OSCA

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URNAL(3)

OTTAWA—Canadian Na-tional Railway Co. said it wouldshut down operations in east-ern Canada as blockades set upby anti-pipeline activiststhreatened to upend the coun-try’s manufacturing sector andslow the broader economy.

The Montreal-based com-pany said the move might leadto temporary layoffs of itsworkers in eastern Canada.Canadian National is the coun-try’s biggest railroad and shipsan array of commodities andconsumer goods valued atmore than 250 billion Cana-dian dollars annually (aboutUS$190 billion). It has beenunable to move trains througha key transportation corridorconnecting western Canada tothe eastern part of the countryfor more than a week.

Business groups and orga-nized labor on Thursday calledon the Canadian governmentto intervene to stop the block-ades, which involve protestersacting in solidarity with Pa-cific Coast indigenous leaders

trying to stop construction ofa natural-gas pipeline.

Canadian Manufacturersand Exporters, a lobbyinggroup, said the roughly week-long rail disruption has led toa sharp dwindling of invento-ries among member compa-nies. “It is really importantthat the federal governmentget this resolved,” said DennisDarby, president of the manu-facturing group.

Teamsters Canada warnedthe shutdown of Canadian Na-tional’s eastern network couldlead to the layoff of as manyas 6,000 of its members.

Shortly after Canadian Na-tional’s decision, the govern-ment-owned passenger rail op-erator Via Rail Canada said it“had no other option” but tocancel nearly all of its servicesuntil further notice. CanadianNational owns more than 80%of the rail tracks used by ViaRail to carry passengers.

CN said it has obtainedcourt orders and requestedthe assistance of law-enforce-ment agencies to removeblockades in Ontario, Mani-toba and British Columbia.

BY KIM MACKRAELAND PAUL VIEIRA

Protests Prompt RailClosures in Canada

Sajid Javidstepped downafter PrimeMinister BorisJohnson askedhim to replaceadvisers.

© 2020 Dow Jones & Company. All Rights Reserved. * * * * THEWALL STREET JOURNAL. Friday, February 14, 2020 | B1

BY BENJAMIN KATZ

McClatchy Co., the second-largest U.S. newspaper groupby circulation, filed for bank-ruptcy protection, a move thatcomes as the nation’s newspa-per industry is struggling tocope with a sharp decline inprint advertising and the chal-lenges of building a robustdigital business.

The move is expected to putan end to the McClatchy fam-ily’s 163-yearlong control overthe publisher, and turn thehedge fund behind the currentowner of the National En-quirer into its top shareholder.

McClatchy, the publisher ofthe Miami Herald, SacramentoBee, Kansas City Star andother well-known newspapers,has struggled under a heavydebt load since its ill-timed$4.5 billion acquisition ofKnight Ridder in 2006—astretch during which its stockprice plunged from $496 to 75cents.

McClatchy on Thursday saidit initiated a chapter 11 re-structuring in the U.S. Bank-ruptcy Court in New York. If atentative agreement withcreditors is approved by thecourt, the McClatchy familywould lose control of the busi-ness it founded in 1857, whileits main debtholder, ChathamAsset Management LLC, wouldbecome its primary share-holder.

A Chatham representativesaid the hedge fund “is com-mitted to preserving indepen-dent journalism and newsroomjobs.”

McClatchy said its 30 news-PleaseturntopageB2

BY LUKAS I. ALPERT

NewspaperGroupFiles forChapter 11

TECHNOLOGY: FACEBOOK TURNS OVER DATA TROVE TO OUTSIDE RESEARCH B4

S&P 3373.94 g 0.16% S&PFIN g 0.04% S&P IT g 0.30% DJTRANS g 0.08% WSJ$ IDX À 0.04% LIBOR3M 1.692 NIKKEI (Midday) 23704.59 g 0.52% Seemore atWSJ.com/Markets

BUSINESS&FINANCE

mands from the public to useits heft to address problemsfrom poverty to environmentalissues.

Chief Executive LaurenceFink is an advocate of compa-nies thinking beyond share-holders. BlackRock has calledfor a fuller accounting on cli-mate risks from companiesand is expanding its range offunds that focus on companieswith better social and environ-mental records.

BlackRock has split nearly$600 million worth of sharesin PennyMac between twoplatforms. The first is a newfoundation BlackRock said isaimed at advancing “a moreinclusive and sustainableeconomy.”

BlackRock has traditionallydone philanthropic work bymaking grants, and a founda-tion would give BlackRockmore flexibility to structuregiving in different ways, saidDeborah Winshel, head ofBlackRock’s charitable armand president of the new foun-

dation. BlackRock donated therest to an existing donor-ad-vised fund that has supportedorganizations from those thattrain women in Latin Americafor technology jobs to thosethat assist farmers in sub-Sa-haran Africa. The latest contri-butions add to the $50 millionBlackRock recently committedto build saving tools for lower-income individuals.

“We think it’s so importantthat BlackRock shows up inthe communities in which itoperates,” said Ms. Winshel.She said BlackRock’s philan-thropic work on issues such asindividual social mobility andfinancial stability makes it an“extension of what the firmdoes.”

BlackRock was a scrappybond shop before it evolvedinto a behemoth with $7.4 tril-lion in assets under manage-ment. It was one of the big-gest beneficiaries as postcrisisinvestors, weary over com-plexity and costs, turned to

PleaseturntopageB11

BlackRock Inc. made awell-timed bet on distressedloans during the financial cri-sis. Now the firm has movedits windfall to its charitablearm.

In a move disclosed Thurs-day, the asset manager said ithas donated all of its nearly$600 million worth of sharesin the mortgage company Pen-nyMac Financial Services Inc.to fund nonprofits. Half of thatwent into a new corporatefoundation the firm is launch-ing called the BlackRock Foun-dation. By moving the stake tocharity, the firm will also reaptax gains.

BlackRock is setting up thenew foundation as the firm’sgrowing influence has broughtit new scrutiny. BlackRock, onbehalf of the funds it runs, isone of the five largest share-holders in nearly every corpo-ration in the S&P 500. Thatmeans the world’s largestmoney manager faces new de-

BY DAWN LIM

BlackRock Shifts WindfallOn Crisis Bet to Charity Arm

INSIDE

Capital PlanTesla’s stock rallied Thursdayon the company’s planto raise capital.

Tesla’s share price

Source: FactSet

$900

200

300

400

500

600

700

800

Sept. 2019 Jan. ’20

Thursday

$804.00

s5%

confidence of the board, and isbeing unanimously recom-mended for re-election at theannual general meeting,” theU.K.’s second-biggest bank byassets said.

Mr. Staley worked at JP-Morgan Chase & Co. for morethan 30 years before becomingBarclays’s CEO in December2015. He told reporters Thurs-day that his interactions withMr. Epstein went back to2000, when he led JPMorgan’sprivate bank and the financierwas a client. He said his con-tact with Mr. Epstein began to“taper off” after he left JP-Morgan in 2013 and that thelast time he had contact withhim was in 2015.

In 2008, Mr. Epsteinpleaded guilty in a Floridastate court to soliciting prosti-tution from an underage girl.

“I thought I knew him welland I didn’t,” Mr. Staley said.“For sure, with hindsight, withwhat we all know now, I

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LONDON—Barclays PLCsaid U.K. regulators are inves-tigating the professional rela-tionship between Chief Execu-tive Jes Staley and JeffreyEpstein, the financier and con-victed sex offender who diedin jail last year.

The U.K.’s Financial Con-duct Authority is examininghow Mr. Staley characterizedhis relationship with Mr. Ep-stein to Barclays, and how theBritish lender described it tothe regulator, the bank saidThursday.

The probe marks the latestbrush with authorities for Mr.Staley, an American. In 2018,he was hit with penaltiesequal to about a quarter of his2016 pay over his efforts tounmask a whistleblower,which U.K. regulators called a“serious error of judgment.”U.S. authorities also fined himover the episode.

“Mr. Staley retains the full

BY SIMON CLARK

U.K. Probes BarclaysChief’s Ties to Epstein

TOULOUSE, France—AirbusSE is ramping up production ofits bestselling single-aisle jet,moving to fill a hole in themarket created by the pro-longed grounding of rival Boe-ing Co.’s 737 MAX.

The increase comes as air-lines are planning for a secondsummer travel season withouttheir MAX jets. Southwest Air-

lines Co., the world’s largestMAX operator, said Thursdaythat it has dropped the planefrom its schedule through Aug.10, two months longer thanplanned.

Airbus on Thursday outlinedplans to raise production of itsA320neo to as many as 67 amonth by 2023 from the cur-rent target of 63 a month in2021. The A320neo competesdirectly with the MAX.

Both jets have become theworkhorses of many airlines’commercial fleets. The fuel-effi-cient jets, with extended rangesand low-passenger loads, havebeen popular with airlines fortheir flexibility.

Airbus hasn’t yet materiallybenefited from the groundingof the MAX, however. That isbecause both jets have been sopopular that their order booksstretch out for years.

Underscoring the new pres-sure on Chicago-based Boeing,Nigeria’s Green Africa Airwayson Thursday placed a major or-der for Airbus’s smaller A220narrow-body jets. The airlinehad previously placed a com-mitment for as many as 100Boeing MAX jets, an order thatis now in jeopardy, people fa-miliar with the matter said.

The Nigerian startup turnedto Airbus amid uncertaintyabout when it would start re-

ceiving its MAX jets, after hav-ing to postpone the airline’slaunch, according to a companyexecutive.

Panama-based Copa Hold-ings SA on Thursday pushedback the MAX from its sched-ules until September. And Nor-wegian Air Shuttle ASA said itdoesn’t expect any of its 18MAX jets to fly before Septem-ber, having planned previouslyto fly them this summer. Theairline is due to receive an ad-ditional 16 MAX jets this year,14 of which have already beenbuilt.

Chief Financial Officer GeirKarlsen said on an investor callthat it is “completely unrealis-

tic” all these will arrive asscheduled. He said Norwegianis renting alternative jets andmight not need all the planes ithas ordered for the winterschedule.

Airlines typically receivesome cancellation options whena plane is more than a yearlate, which he said he expectedsome carriers to exercise. “Ithink Boeing is sitting there to-day expecting that at leastsome of the customers will can-cel,” Mr. Karlsen said.

American Airlines GroupInc. and United Airlines Hold-ings Inc. have also indicatedthat more schedule adjust-ments are likely. Both carriers

have the MAX on their sched-ules again starting in earlyJune.

Boeing grounded its latestversion of the 737 last year af-ter two deadly crashes of thejet that were blamed partly ona faulty flight-control system.The grounding has been ex-tended to the middle of thisyear.

Boeing halted production ofthe plane late last year and hasbeen forced to cut back planneddeliveries of the aircraft. It hasstruggled to win deals for its

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Airbus Capitalizes on Boeing MAXWoesEuropean plane makerincreases production ofa bestselling jet asrival’s grounding lingers

After a painful first half lastyear, during which low deliveryfigures spooked investors aboutthe company’s prospects, Teslareported two consecutive prof-itable quarters, met the lowend of 2019 delivery goals andopened a factory in China.

Those successes have sentthe stock soaring more than92% this year through Thurs-day’s close, much to the cha-grin of short sellers. The stockThursday rallied more than4.8% on the plan to raise morecapital.

Some analysts had ques-tioned why Tesla wasn’t takingadvantage of raising moneywhile it could. Tesla faces a longlist of expenses to fund Mr.Musk’s ambitious growth goals,including plans to expand pro-duction at the new China factoryand to build a new assemblyplant in Germany.

Daniel Ives, an analyst forWedbush Securities, called the

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Tesla Inc. is facing freshregulatory scrutiny over its fi-nances as it looks to raise morethan $2 billion from a stocksale to help bolster its balancesheet.

The Securities and ExchangeCommission issued Tesla a sub-poena in early December seek-ing information regarding cer-tain financial data andcontracts, which include itsregular financing arrange-ments, the electric-car makersaid Thursday.

The return to capital mar-kets comes amid a rally inTesla’s share price. It also rep-resents an about-face for ChiefExecutive Elon Musk who lastmonth dismissed the idea whenfacing questions from analystsabout capital plans.

“It doesn’t make sense toraise money because we expectto generate cash despite thisgrowth level,” Mr. Musk said inJanuary.

Mr. Musk has had a compli-cated relationship with fund-raising. As a CEO with a show-man’s flair, he has beensuccessful in drumming up in-vestor enthusiasm in Tesla,while also expressing a reluc-tance to issue stock over con-cerns it would dilute value forexisting shareholders. He is thelargest owner of Tesla stock.

Despite those concerns, thecash demands of creating arapidly expanding car companyhave proven expensive. Teslalast year completed a roughly$2.7 billion stock-and-bond saleat a time when its futurelooked bleak. Ahead of that of-fering the Palo Alto, Calif., carmaker was fresh off a steeper-than-expected quarterly lossand burning cash in its effortsto increase electric-vehicle pro-duction and overcome logisticalhurdles.

BY TIM HIGGINSAND DAVE SEBASTIAN

Tesla Reveals NewSEC Inquiry, SeeksTo Raise $2 Billion

Private-Equity Firms Court Athletes and Their Millions

GAME OF WEALTH: Victor Oladipo of the Indiana Pacers is among the professional athletes who have been lured by investment firmsinto putting their money into exclusive deals. They are backing ventures as varied as organic food, real estate and entertainment. B10

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� Heard on the Street: Boeingsets a low bar for Airbus... B12

RETAILStores, like shoppers,find that self-checkoutbrings its own brandof headaches. B2

VIRUS IMPACTChina’s Alibaba warnsof slower growth as itsworkers stay home,deliveries halt. B4

COMMODITIESDemand for crude oil isexpected to declinethis quarter for firsttime in 10 years. B11

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B2 | Friday, February 14, 2020 * * * * THEWALL STREET JOURNAL.

INDEX TO BUSINESSESThese indexes cite notable references to most parent companies and businesspeoplein today’s edition. Articles on regional page inserts aren’t cited in these indexes.

AAirbus.............A2,B1,B12Alibaba Group.............B4Alphabet....................B11Amazon.com..........A1,B3American Airlines.......B1American InternationalGroup.......................B10

Apple.........................B12

BBarclays.......................B1Bayer...........................B3BlackRock....................B1Boeing..................B1,B12

CCarbon Engineering....R6Chevron.......................R6Cholula Food .............B10Cisco Systems...........B11Copa Holdings.............B1Corteva........................B3Costco Wholesale.......B2Credit Suisse Group .B10

E - FEnergy Vault...............R2Everseen......................B2Exxon Mobil ................R6

Facebook......................B4

G - HGravity Energy............R2Green Africa Airways.B1Hershey.......................B3Huawei Technologies .A1

JJinx..............................B3J.M. Smucker..............B3JPMorgan Chase...................... B1,B10,B11

KKellogg.........................B3Kraft Heinz .................B3Kroger..........................B2

MMattel..........................B5McClatchy....................B1MGM ResortsInternational...........B11

Microsoft ....................A1Mondelez International.....................................B3

NNestle...................B3,B12News Corp...................A2Nissan Motor..............B3

Norwegian Air Shuttle.....................................B1Nvidia..........................B4

OOccidental Petroleum.R6Oracle..........................A6

PPatricof......................B10PennyMac FinancialServices.....................B1

PepsiCo........................B5PG&E...........................A1

RRealReal....................B10Rent The Runway.......B5Roku ............................B4

S - TSeventySix Capital ...B10Southwest Airlines ....B1Target..........................B2Tesla.....................B1,B12T-Mobile US................A1

U - WUnilever.......................B3United Airlines............B1Walmart......................B2Wayfair........................B5

INDEX TO PEOPLE

BUSINESS & FINANCE

of local news will destroy ourdemocracy,” said the guildpresident, Jon Schleuss. “It’stime for communities acrossAmerica to stand up and fightto save local news.”

The U.S. newspaper indus-try is struggling to cope withthe collapse of print advertis-ing. McClatchy Chief ExecutiveCraig Forman has said the col-lapse of print advertising hasdrained some $35 billion inrevenue from the industry as awhole since 2006.

That has led to increasingconsolidation as some compa-nies turn to greater scale as apossible solution. Last year, thetwo largest companies by circu-lation, USA Today owner Gan-nett Co. and GateHouse Media,merged to create a giant pub-lishing 261 dailies, amountingto about 30% of the newspa-pers sold every day in the U.S.

MNG Enterprises Inc.,

which publishes more than 60daily papers and is majority-owned by New York hedgefund Alden Global Capital LLC,failed in an earlier attempt tomerge with Gannett. It hassince taken a big stake in Trib-une Publishing Co., owner ofthe Chicago Tribune and theNew York Daily News, and isnow its largest shareholder.

A person familiar with thematter said Mr. Forman wasunlikely to remain with thecompany following the bank-ruptcy, but that Kevin Mc-Clatchy, the great-great grand-son of the company’s founder,would likely stay on the board.

“McClatchy remains astrong operating companywith an enduring commitmentto independent journalismthat spans five generations ofmy family,’’ Mr. McClatchy,who is currently the com-pany’s chairman, said. “We are

frustrated and takes the itemanyway. In other cases, “shop-pers can stumble upon the op-portunity” if they discover aretailer has turned off theweight-based security systemor isn’t properly staffing thearea, said an executive at aself-checkout manufacturer.

Terrance Thomas said heaccidentally walked out of aKroger with a case of bottledwater he didn’t scan. “I waslike, ‘I’m not going to turnaround,’” the 30-year-oldHouston resident said. “‘I’mjust going to take it.’”

Now he intentionally mis-scans items, he said. “I’m notfilling up a basket with T-bonesteaks,” Mr. Thomas said. “I’mgoing to steal some kale orvegetables.” He enters thecode for a less-expensive vege-table or smaller quantity, hesaid. He reasons that self-checkouts are annoying forshoppers and that “this is re-storative justice” because ofhis own views about thesecompanies’ practices.

Adding to the challenge,most U.S. retailers train staff to

not confront shoplifters di-rectly, but to instead engagepotential thieves in a friendlyway to hint they are beingwatched or to randomly checkshoppers’ bags as a deterrent.“No amount of merchandise isworth putting our associates inharm’s way,” said a personal fa-miliar with Walmart’s policies.

As Walmart backed awayfrom weight-based theft de-tection on its self-checkoutmachines, it started using adata-gathering camera systemmade by Everseen Ltd., atechnology company based inCork, Ireland. Walmart saidEverseen camera systems arein more than 2,000 stores.

The system uses cameras totrack product and shoppermovement.

Mr. Thomas said he no lon-ger steals from his local Wal-mart after encountering a newcamera system. The self-check-out paused, called a storeworker and played a shortvideo of Mr. Thomas’s hands inthe act of mis-scanning, hesaid. “I have not tried to stealfrom a Walmart since.”

Walmart Inc. is shuttingdown its Jetblack shoppingservice and laying off most ofits roughly 350 staffers afterthe retailer abandoned plansto find investors for the un-profitable operation.

The New York City-basedunit, which offers fast deliveryon orders placed through textmessage, will stop deliveryservices on Feb. 21, a Walmartspokesman said. The WallStreet Journal earlier reportedthat Walmart was planning toend its Jetblack service andrestructure the organization.

Some members of Jet-black’s technology and designteam will become part of Wal-mart’s customer organization,

continuing to work out of NewYork, the spokesman said.Walmart will lay off 293 ofJetblack’s employees, he said.

Last year, Walmart workedto spin off the unit, which hadless than a thousand custom-ers at the time. The retailerdiscussed an investment withseveral potential partners in-cluding Microsoft Corp., andventure-capital firms includingNew Enterprise Associates, theJournal reported at the time.

Those talks have ended,people familiar with the situa-tion said.

Jetblack Chief ExecutiveJenny Fleiss left last year, suc-ceeded by Nate Faust, Wal-mart senior vice president ofe-commerce logistics, who hadworked previously for Jet.com,

the e-commerce startup Wal-mart bought in 2016.

Jetblack was launched pub-licly in 2018 as part of an in-novation arm at Walmartdubbed Store No. 8, where thecompany intends to buildtechnology and business unitsthat aren’t immediately profit-able but could be integrated inthe future. Walmart executiveshave talked about Jetblack asa potential avenue of growthand research, not as a profitcenter. As of last summer, Jet-black was losing about $15,000per member annually, theJournal reported.

Jetblack members pay $600a year to order anything ex-cept fresh food by text mes-sage. Their orders go to a Jet-black office where agents field

inquiries, from diaper reordersto requests for suggested yogaattire. Couriers fetch the itemsso they can be hand delivered,usually the same day.

Walmart aimed to use Jet-black’s human agents to trainan artificial-intelligence sys-tem that someday wouldpower an automated personal-shopping service, preparingWalmart for a time when web-browser search bars disappearand more shopping is donethrough voice-activated de-vices, Ms. Fleiss said last year.

Walmart, which reportsquarterly earnings next weekon Tuesday, has worked tostem losses from its smaller e-commerce units over the pastyear, selling units or cuttingstaff in those businesses.

BY SARAH NASSAUER

Walmart Plans to Shut Down ItsJetblack Personal-Shopping Unit

planes amid the MAX crisis. Itsorder intake last year fell to a16-year low. The companybooked no new orders lastmonth.

Airbus said, overall, its de-liveries this year will reach 880aircraft, topping last year’s 863.Still, that represents a slowerrate of growth as the companyreins in deliveries of its wide-body jets.

Demand for those biggerplanes has fallen as airlinersgravitate toward smaller, nim-bler jets such as the A320neo.Airbus said it would hand over40 of its bigger A330s this year,13 shy of 2019’s total. Produc-tion of its A350 twin-aisle jetwill be kept just shy of its prior10-a-month target.

Airbus said it swung to aloss in 2019 after taking acharge to settle U.S., U.K. andFrench allegations of bribery.Airbus reported a full-year netloss of €1.36 billion ($1.48 bil-

ContinuedfrompageB1

BBezos, Jeff..................A1Buck, Michele..............B3

CCahillane, Steve..........B3

DDurant, Kevin............B10

EEllison, Larry.............B10

FFaust, Nate.................B2Fink, Laurence.............B1Fleiss, Jenny...............B2Forman, Craig..............B2

GGalanti, Richard..........B2Gronkowski, Rob.......B10Gupta, Ashwani..........B3

Gurley, Todd..............B10

HHoward, Ryan ...........B10

IIves, Daniel.................B1

J - KJope, Alan...................B3King, Gary...................B4

LLackner, Klaus.............R6

MMa, Jack......................B4McCormick, James....B11Miller, Jonathan........B10Musk, Elon...........B1,B12

O - POladipo, Victor..........B10Persily, Nathaniel.......B4

Piconi, Robert .............R2

SSabathia, CC..............B10Saikawa, Hiroto..........B3Schrage, Elliot.............B4Shaw, Frank X. ...........A6Slott, Ed......................B5Staley, Jes...................B1

T - UTan, Cliff....................B11Thomas, Terrance.......B2Uchida, Makoto...........B3

WWilliams, Venus........B10Winshel, Deborah.......B1Wraith, John.............B11

ZZaffino, Peter ...........B10Zhang, Daniel..............B4

lion), compared with a netprofit of €3.05 billion in 2018.

The plane maker agreed lastmonth to a €3.6 billion settle-ment with prosecutors, who al-leged Airbus used middlemento make payments to govern-ment and airline officials to winorders. Airbus, by settling,wasn’t required to admit ordeny the charges and avoidedpossible prosecution in the U.S.and the European Union. It hassaid it reported the paymentsto investigators, cooperatedwith them and has changed itsbusiness practices to preventfurther inappropriate pay-ments.

Airbus said it also took a€1.2 billion charge related to itsA400Mmilitary aircraft. Part ofthat was because of lower ex-pectations for sales.

Airbus also said it hadagreed to buy out its partner inthe A220. The Wall Street Jour-nal previously reported Airbuswas nearing a deal that wouldallow Bombardier Inc. to exitfrom the program, previouslycalled the CSeries. Airbus saidit would pay $591 million to liftits stake to 75%, with the gov-ernment of Quebec raising itsownership to 25%.

—Alison Siderand Doug Cameron

contributed to this article.

AirbusGains onMAXWoes

privileged to serve the 30communities across the coun-try that together make Mc-Clatchy and are ever gratefulto all of our stakeholders—subscribers, readers, advertis-ers, vendors, investors andemployees—who have enabledour legacy to date.”

Mr. Forman said it was toosoon to comment on his futurerole but noted that he serves“at the pleasure of the board.”

While many publishers—in-cluding Tribune and Gate-House—filed for bankruptcyprotection in the wake of the2008 economic crisis, Mc-Clatchy had avoided that fateuntil now, but sees it as theonly way to get through its se-vere liquidity crunch.

Despite its financial strug-gles, McClatchy has won acco-lades for its papers’ coverage,including numerous PulitzerPrizes in recent years. The Mi-ami Herald published a seriesof stories in 2018 and 2019 onhow the late financier JeffreyEpstein avoided seriouscharges on allegations of run-ning an underage sex ring.

If approved by the bank-ruptcy court, McClatchy’s re-structuring proposal wouldcut the company’s $703 mil-lion in funded debt by 55%.

The company has pointedto its unfunded pension obli-gations as a significant chal-lenge and reported its largestunsecured creditor in bank-ruptcy papers as the federalPension Benefit Guaranty Corp.with a $530 million claim.

—Micah Maidenbergand Andrew Scurria

contributed to this article.

rooms would continue to oper-ate as usual as the bankruptcyproceeds. The company hasobtained $50 million in financ-ing from bankruptcy lenderEncina Business Credit tomaintain operations duringthe bankruptcy, and said itaims to emerge from the bank-ruptcy process in the next fewmonths.

Chatham, a New Jersey-based hedge fund, is also theprimary stakeholder in tabloidpublisher American MediaLLC, which is in the process ofselling the scandal-scarred Na-tional Enquirer. The fund alsoholds a large piece of Postme-dia Network Canada Corp., apublisher of dozens of news-papers in Canada, and severalbig newspaper and magazinedistribution companies.

McClatchy’s existing sharestructure will be canceled andit will likely emerge frombankruptcy as a closely heldconcern, the company said.

The News Guild, which rep-resents 150 McClatchy employ-ees at six of its publications,warned that the growth ofhedge-fund and private-equitycontrol of American newspa-pers would do little to savethem.

“Continued financialization

ContinuedfrompageB1

NewspaperChain SeeksBankruptcy

McClatchy's top newspapers by circulation

Source: Alliance for Audited Media

0 125,00025,000 50,000 75,000 100,000

SacramentoBee

KansasCity Star

MiamiHerald

FortWorthStar-Telegram

RaleighNews&Observer

CharlotteObserver

LexingtonHerald-Leader (Ky.)

TheState (Columbia, S.C.)

FresnoBee

Wichita Eagle

Shoppers aren’t the onlyones frustrated by self-check-out machines. Retailers are too.

Walmart Inc., Target Corp.and other retailers are addingthousands of self-checkout ma-chines to U.S. stores to savemoney on labor as they spendmore to staff new services likeonline delivery. But self-check-outs come with new, sometimescostly challenges as retailerstry to curb theft, cut wait timesand keep customers happy.

Some retailers, includingWalmart, have quietly disabledor removed the weight sensorsused to deter thieves, becausethey trigger too many “waitfor assistance” messages thatannoy shoppers.

Now retailers hope camerasgathering data on productsand shoppers can solve theirself-checkout woes. They arereplacing scales with videosystems that some say are bet-ter at catching mis-scanneditems and stopping transac-tions in progress only when itis necessary.

Weight sensors created“friction during the transac-tion,” a Walmart spokesmansaid.

Many U.S. retailers intro-duced self-checkout systems adecade ago, only to pull themout after customers revolted.Stores have embraced themanew in recent years as theycontend with a tight labormarket and lost revenue fromshoppers moving online, andas shoppers become more ac-customed to interacting withtechnology instead of humans.

Despite the headaches, re-tailers still see added savings.Walmart and Target are add-ing more self-checkout ma-chines each time a store is re-modeled. Last month Walmartopened its second U.S. storewithout any human cashierlanes. Costco Wholesale

Corp., which pulled back on aprevious test of self-checkouts,has the devices in about 120 ofits 546 U.S. stores and plans toadd them to 100 more stores,Chief Financial Officer RichardGalanti said. The registershelp Costco speed up checkoutlines and cut labor costs, Mr.Galanti said.

The number of cashiers inthe U.S. is likely to fall fasterthan overall retail workers be-cause of advances in technol-ogy, predicts the Bureau of La-bor Statistics’s website.

Theft jumps when customersare empowered to scan theirown purchases, both at a shelf-checkout register or with ahand-held device as they shop,according to industry research.

Some theft is premeditatedand often involves “ticketswitching,” or using the barcode from an inexpensive itemto cover the bar code of a moreexpensive item while scanning,industry executives said.

Then there are the morepassive forms of thievery.Some happens when a shoppercan’t find the bar code, gets

BY SARAH NASSAUER

Stores, Customers Agree: Self-Checkout Is Hard

Walmart has disabled or removed the weight sensors used to deter thieves at self-checkout kiosks.

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executive, said of paying alofty price for the impact of aSuper Bowl commercial. Hesaid it is worth taking a tem-porary hit to profit if it fosterslong-term sales potential. TVbroadcaster Fox Corp. chargedas much as $5.6 million for 30seconds of advertising timeduring this year’s NationalFootball League championshipgame.

Mondelez increased adspending for the first time infive years in 2019, to $1.21 bil-lion from $1.17 billion the yearbefore, and it plans to spendmore again this year.

Some companies say theyare paying for new marketingwith cuts elsewhere. Unilever,maker of Hellmann’s mayon-naise and Breyers ice cream,increased marketing spendingby roughly $75 million lastyear. Chief Executive Alan Jopesaid the funds came from sav-ings generated through zero-based budgeting, a method of

aggressive cost managementpopularized by 3G Capital, aBrazilian firm invested in KraftHeinz and other consumer-goods companies.

At Kraft Heinz, 3G strippedout nearly $2 billion in annualspending after the 2015merger of Kraft Foods and H.J.Heinz. But the company hasfallen short of its sales goals.Last year, it also reduced thevalue of some of its best-known brands by $17 billion.

Mr. Patricio, who took overin June after the biggest of thewrite-downs, is investingagain, leading to lower mar-gins for brands including OscarMayer deli meat and Philadel-phia cream cheese.

Kraft Heinz on Thursdaylowered the value of its Max-well House brand by $213 mil-lion. The coffee has faredpoorly amid the rise in high-end, trendy coffee and new fla-vors. Kraft Heinz also lostmarket share in cheese and

cold cuts in the quarter, whilecondiment sales remainedstrong.

Mr. Patricio said Kraft Heinzwould continue to spend more

on marketing for big brandsthat drive profitability. Hedidn’t name those brands.

Analysts expect Heinz con-diments, Philadelphia creamcheese and Planters nuts to beamong the brands drawing in-creased investments.

This year, Kraft Heinz is in-creasing spending on televi-sion ads and other consumer-oriented marketing by 30%.Mr. Patricio said he aims tomake the company’s supplychain more efficient and re-duce the complexity of itssprawling operations to fundnew investments.

“We could put the savingson the bottom line, but that’snot what we want to do. Wewant to invest in our brands,”he said.

The company’s profit forthe period was $182 million,compared with a loss of $12.57billion a year earlier.

—Micah Maidenbergcontributed to this article.

BUSINESS NEWS

Kraft Heinz Co. and otherfood makers are ramping upadvertising after years of costcutting, recognizing a need torekindle enthusiasm for theircondiments, candies andsnacks.

Kraft Heinz, which reportedlower fourth-quarter sales onThursday, said additionalspending was necessary to bol-ster its strongest products asshoppers have drifted towardlower-price store brands andnewer niche products.

“You need to nurturebrands, take care of them, tokeep them meaningful after150 years,” Chief Executive Mi-guel Patricio said in an inter-view.

Shares in Kraft Heinz fell7.6% to $27.77 after the makerof Oscar Mayer meats and Jell-O desserts reported $6.54 bil-lion in quarterly sales, short ofanalyst expectations and down5.1% from a year earlier.

Other food makers are alsoboosting marketing after yearsfocused on cost cuts that ac-celerated profits but crimpedsales growth. Hershey Co.,Kellogg Co., Unilever SA andOreo-maker Mondelez Inter-national Inc. are spendingmore on advertisements andin-store promotions.

“That’s how we connectwith consumers and keep ourbrands relevant,” Hershey CEOMichele Buck said in an inter-view.

Hershey’s advertising ex-penses in North America rose5% in the fourth quarter, andthe chocolatier ran a commer-cial for its new Reese’s Take 5bar during this year’s SuperBowl.

Kellogg also bought adsduring the Super Bowl forPringles and Pop-Tarts, snackbrands the company is count-ing on to help make up fortepid cereal sales.

“That’s the big leagues,”Steve Cahillane, Kellogg’s chief

BY ANNIE GASPARRO

Kraft Heinz to Boost Advertising

globally have climbed 61%since 2010, according to re-search firm Euromonitor.

But some of the headwindsthat have buffeted big con-sumer-goods makers in sellingfood for humans are creepinginto the pet-food business.Nestlé, Kraft Heinz Co., Uni-

lever PLC and other packaged-food makers have fought tokeep up with smaller, nimblerbrands offering healthier ormore locally sourced packaged-food options.

As pet owners increasespending, brands are rushingto sell organic, customized,

grain-free and other kinds ofpricey pet food. In 2018, Gen-eral Mills bought premium pet-food maker Blue Buffalo andNestlé that year bought a ma-jority stake in British tailor-made dog-food companyTails.com.

Nontraditional players aremoving in as well. Ama-zon.com Inc. rolled out pre-mium pet-food brand Wag in2018. Actor Will Smith andmusician Nas invested in dog-food startup Jinx Inc., whichblends meats with foods likeavocados and sweet potatoes.

In November, J.M. SmuckerCo. blamed intense competi-tion for a drop in premium petfood sales, lowering its overalloutlook.

Nestlé and Mars Inc.—whichbetween them control 43% ofthe global pet food market—have been trying to defendshare by investing in emergingpet foods and snacks. Nestlélast year held a pet-care sum-mit to hear pitches from start-ups in the field. It funded aU.S. startup, Basepaws, that

sequences the DNA of cats toprovide health and dietary rec-ommendations to customersand a dating app called Digthat connects like-minded dogowners. Mars is running simi-lar events and offering to helpstartups that use cricket pro-tein and hemp to make petfood and supplements.

Underscoring the pressureon consumer companies to findnew growth avenues, Nestlélowered Thursday its salesguidance for 2020, saying it nolonger sought to achieve mid-single-digit growth in organicsales. It delayed that target to2021. Shares in Nestlé fellmore than 2% after it releasedits earnings and guidance.

Nestlé‘s overall organicsales growth—a measure thatstrips out currency changes,acquisitions and divestments—rose 3.5% last year.

Its North America volumeswere driven by online sales ofits Purina PetCare brand.

Pet-food sales are soaring,boosting revenue at packaged-food makers that have strug-gled in recent years selling sta-ples like frozen food, cerealand bottled water.

Nestlé SA, the maker ofNescafé coffee and KitKatchocolate, said its North Amer-ica volume growth for the yearwas the best in a decade,buoyed by strong sales of itsPurina brand. The boost comesamid a yearslong fight bypackaged-goods companies tokeep up with fast-changingtastes. Pet food has been abright spot.

Nestlé’s strong pet-foodshowing, disclosed as part ofits annual earnings, comes af-ter General Mills Inc. said inDecember that pet-food saleshelped it outweigh weakersnack-bar and yogurt sales inits latest quarter.

In developed markets, latermarriages and smaller familiesare propelling consumers tofocus on pets. Pet-food sales

BY SAABIRA CHAUDHURI

Pet-Food Sales Set the Pace for Nestlé, Rivals

YOKOHAMA, Japan—Nis-san Motor Co. faces the pros-pect of steeper cost cuts afterits ambitious turnaround planran into the stark reality of aslowing auto industry.

“We need to reduce fixedcosts. We need to thoroughlycut spending,” Chief ExecutiveMakoto Uchida said Thursdayafter Nissan posted a net lossof 26.09 billion yen (about$237 million) for the October-December quarter, its firstquarterly loss since 2009, dur-ing the global financial crisis.

The company also slashedits outlook for the financialyear ending in March, the sec-ond time it has done so. Nis-san now expects operatingprofit of ¥85 billion as a resultof worse-than-expected sales.The company said the poor re-sults meant it wouldn’t pay adividend to shareholders forthe second half of the year.

In the wake of formerChairman Carlos Ghosn’s ar-rest in 2018 for alleged finan-cial misconduct, Mr. Uchida’spredecessor, Hiroto Saikawa,said Nissan’s business was rot-ten.

The problem, Mr. Saikawasaid, was the U.S., where saleshad grown rapidly on the backof generous discounts thatwere destroying profits. Thesolution was to charge morefor Nissan cars and what thecompany lost in volume itwould gain in profit, he said.

Sales fell precipitously andprofits failed to rebound. To-day, Nissan is bleeding cash.

“We need to do more thanwhat we have done, or it willbe hard to improve our profit-ability,” Mr. Uchida said.

Mr. Saikawa, the formerCEO, had promised that thisyear would be when Nissan’ssales would hit bottom. Mr.Uchida said Thursday that wasstill at least a year away.

The problem, Nissan said, isthat not enough people wantto buy its cars, particularly inthe U.S. The competition hasbeen faster to roll out newproducts, making Nissan’s lookold by comparison, said Ash-wani Gupta, Nissan’s chief op-erating officer.

“We know what, exactly,the problem is,” Mr. Guptasaid. Nissan’s plan to chargemore for its cars is hamstrungby the fact that car sales areslowing, he said. Nissan’s lat-est vehicles are nearly twiceas old its competitors’, whichthe company plans to remedyby rolling out eight new mod-els over the next two years,Mr. Gupta said.

On Thursday, Nissan said itwould stop making its low-cost Datsun brand in Indone-sia. The company said it wouldhalt production of models thataren’t selling and take aharder look at its plants. Partof the plan will involve leaningmore on factories owned by itsalliance partners, Renault SAin Europe and Mitsubishi Mo-tors Corp. in Southeast Asia.

BY SEAN MCLAIN

NissanReportsQuarterlyLoss

ward a valuable agriculturaltool after chemical makers andfarmers have relied for de-cades on existing chemicalcompounds. “It’s not like any-thing else that exists in herbi-cides,” said Dr. Bob Reiter,Bayer’s head of agriculturalresearch and development.

Bayer’s $5 billion herbicidebusiness is ensnared in law-suits alleging that Roundupcaused cancer. The company iscontesting those claims, citingaffirmation from the Environ-mental Protection Agency.

Rising research costs andlengthier regulatory reviewsplayed into the lull in develop-ing new herbicides, as didRoundup’s rise to ubiquity inthe 1990s. The introduction ofcrops genetically engineeredto survive Roundup and otherweedkillers based on the ac-tive ingredient glyphosatemade it U.S. farmers’ defaultspray and led to a lapse innew herbicide research, ac-cording to a 2019 paper byColorado State University Prof.Franck Dayan.

With Roundup’s use soar-ing, weeds evolved to surviveit. Bayer and Corteva Inc., an-other top seed and chemicalsupplier, are marketing newherbicide-and-seed combina-tions. Those sprays are basedon compounds discovered de-cades ago, and researchershave said weeds could over-power those herbicides, too.

The potential to developnew sprays and biotech seedssimultaneously was a key fac-tor in Bayer’s $63 billion ac-quisition of Monsanto in 2018.

Bayer AG said its scientistshave discovered the buildingblock for a new herbicide asthe company’s existing weed-killers face legal and regula-tory challenges.

The German drug and agri-culture conglomerate said itidentified a chemical moleculethat has proved effectiveagainst grasses that haveevolved to survive other herbi-cides, including Bayer’sRoundup, the world’s top-sell-ing weedkiller. Roundup hasfor years been losing effective-ness against a rising numberof weed species and is the fo-cus of tens of thousands oflawsuits alleging a cancer link,which Bayer is contesting.

Bayer and its rivals are rac-ing to identify and developnew chemical weedkillers dur-ing a roughly three-decadedrought in herbicide break-throughs. A decade might passbefore Bayer could market itsdiscovery as a new herbicide,Bayer said, since it would re-quire development and regula-tory reviews.

Bayer said the discoverynevertheless marks a step to-

BY JACOB BUNGE

Bayer Touts Herbicide Research Discovery

The food maker, which reported lower sales, said its flagship brands need a boost. The company’s innovation center in Glenview, Ill.

ZBIGNIEW

BZDAK/CHICAGOTR

IBUNE/TNS/ZUMAPRESS

The company’s Roundup has been losing effectiveness against weeds and is the focus of litigation.

ALE

XKRAUS/B

LOOMBERGNEWS

Sales of pet food are rising, but big players are losing shareto new entrants.

Global pet-food sales Pet-food salesmarketshare leaders

Source: Euromonitor

$100

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20

40

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80

billion

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10

15

20

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Nestlé

Mars

Colgate-Palmolive

J.M.Smucker

� Heard on Street: Sales-targetdelay is no big deal ............ B12

NOTICE OF REDEMPTIONTO THE HOLDERS OF PAR BRADY BONDS

NOTES DUE ON MARCH 7, 2027*CUSIP NUMBER: 715638A ISIN NUMBER: US715638AF97

XS0072223190

NOTICE IS HEREBY GIVEN that, pursuant to Section 4 of the Terms andConditions of the Republic of Peru Brady bonds dated March 7, 1997 (the “Bond”),between The Republic of Peru (the “Issuer”) and The Bank of New York, a New Yorkbanking corporation (the “Fiscal Agent”), The Republic of Peru, has elected to redeem onMarch 7, 2020 payable March 9 (the “Redemption Date”) all of its outstanding PARBrady Bonds due (the “Notes”) at the redemption price of 100 % of the par amountthereof together with accrued and unpaid interest on the Notes to the Redemption Date(the “Redemption Price”).

On the Redemption Date, the Redemption Price will become due and payable upon eachsuch Note to be redeemed and, unless The Republic of Peru defaults in funding theRedemption Price in accordance with the Fiscal Agency Agreement dated March 7, 1997between The Republic of Peru and Bank of New York Mellon (Formerly The ChaseManhattan Bank) or such redemption payment is otherwise prohibited, interest thereonwill cease to accrue on and after the Redemption Date and the only remaining right of theholders of such Notes will be to receive payment of the Redemption Price upon surrenderto the Paying Agent of such Notes. Payment of the Redemption Price will be made onlyupon presentation and surrender of each Note to The Bank of NewYork Mellon, as PayingAgent, at the following addresses:If by hand, present Notes to: If by mail, send Notes to:The Bank of New York Mellon The Bank of New York MellonCorporate Trust Services Window 111 Sanders Creek ParkwayLobby Level East Syracuse, NY 13057101 Barclay Street Attn: Redemption UnitNew York, NY 10286

Dated: February 04, 2020 Signed:____________________________JOSE OLIVARES CANCHARI

General DirectorGeneral Directorate of the Public Treasury

MINISTRY OF ECONOMY AND FINANCEREPUBLIC OF PERU

IMPORTANT TAX INFORMATIONUNDER U.S. FEDERAL BACKUP WITHHOLDING PROVISIONS, THE PAYING AGENT OROTHER APPLICABLE WITHHOLDING AGENT MAY BE REQUIRED TO WITHHOLDTWENTY-FOUR PERCENT (24%) OF ANY GROSS PAYMENT TO A HOLDER WHO FAILS TOPROVIDE A CERTIFIED TAXPAYER IDENTIFICATION NUMBER (SUCH AS AN EMPLOYERIDENTIFICATION NUMBER OR SOCIAL SECURITY NUMBER), UNLESS THE HOLDEROTHERWISE ESTABLISHES ELIGIBILITY FOR AN EXEMPTION FROM THE WITHHOLDING.PLEASE COMPLETE A FORM W–9 (OR THE APPLICABLE FORM W-8 IF YOU ARE A NONU.S. PERSON) AND SEND IT TO THE PAYING AGENT OR OTHER APPLICABLEWITHHOLDING AGENT IN CONNECTION WITH THE REDEMPTION.

*This CUSIP Number has been assigned to this issue by CUSIP Service Bureau and is included solely for theconvenience of the Securities holders. Neither The Republic of Peru, nor the Fiscal Agent or Paying Agentshall be responsible for the selection or use of this CUSIP Number, nor is any representation made as to itscorrectness on the Security or as indicated in any redemption notice.

B4 | Friday, February 14, 2020 * * THEWALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

ments in China to cut back onpublic transportation and lockdown residents in an attemptto halt the spread of the virus.That has created a chain ofproblems for a company with acore business of deliveringstuff to people.

A major part of Alibaba’sbusiness is charging merchantsto sell or advertise on its gi-gantic online marketplaces.But some merchants can’t gettheir products made at facto-ries that remain dark. Workersare stranded at home, while

some local governments havemade it hard for manufactur-ers to reopen by requiringthem to meet stringent safetyrequirements, such as provid-ing all workers with masks andgloves that are difficult to buyamid a nationwide shortage.

in an announcement of the datarelease.

Mr. Persily praised Face-book’s willingness to undertakethe effort and said he hopedother tech giants would followsuit. But he said he believesgovernments eventually willneed to force internet plat-forms to make data availablefor research.

A statement from Facebooksaid that releasing the data—abillion gigabytes of informationabout widely shared weblinks—without sacrificing userprivacy required substantial re-search and resources. Over thepast two years, the companyhas devoted 20 full-time staffmembers and $11 million to theeffort. “This announcementdoes not mark the end of ourcommitment,” the companysaid.

Elliot Schrage, a former se-nior Facebook executive whoworked closely on the effort be-fore leaving the company lastmonth, called the release a“great accomplishment” but ac-knowledged the road to sharingdata was difficult. “I hope othercompanies learn from our expe-rience,” he said.

Known as Social ScienceOne, the initiative was launchedwith backing from nonprofitsincluding the John S. and JamesL. Knight Foundation and theCharles Koch Foundation.

When Facebook Inc. in 2018agreed for the first time to let aselect group of academics studyinternal data about how con-tent gets shared on its plat-form, it was billed as a break-through for understanding thesocial network’s impact on so-ciety.

Researchers at the time saidthey expected to get a func-tional data set within twomonths. It instead took closerto two years.

After a series of delays duein part to privacy concerns, thedata handoff on Thursdaymarks a milestone that re-searchers said could lead tobetter understanding of pat-terns in fake news and thequality of information sharedon Facebook. It is also a cau-tionary tale of the obstacles foroutside researchers looking tocollaborate with tech compa-nies on projects using data thecompanies control.

“When this project began,we thought the political and le-gal aspects of our job wereover,” said Gary King and Na-thaniel Persily, professors atHarvard University and Stan-ford University, respectively,who are leading the project. “Infact, most of the last twentymonths has involved negotiat-ing with Facebook,” they said

BY JEFF HORWITZ

Facebook DeliversTrove of Data forOutside ResearchBEIJING—Alibaba Group

Holding Ltd. said the corona-virus outbreak that has lockeddown people across China ishampering the online-retail gi-ant and may result in slowedgrowth as employees stayhome from work and packagesgo undelivered.

“We are being tested,” Ali-baba Chief Executive DanielZhang said Thursday.

China’s most valuable techcompany is facing one of itsbiggest challenges ever, and itfalls to its new generation ofleaders to tackle it afterfounder Jack Ma stepped awayas executive chairman last year.

Company executives saidthey expected challenges inthe short run, but said Alibabacould benefit in the future asthe lockdowns trapping peopleinside their homes encourageconsumers to shift more pur-chases online.

Before the coronavirus epi-demic shut down much ofChina starting in late January,Alibaba had been outperform-ing even lofty expectations.The company on Thursday re-ported that sales in the quar-ter ended Dec. 31 rose to 161.5billion yuan ($23.2 billion), up38% compared with the sameperiod a year earlier, whilequarterly net profit increased58% to 52.3 billion yuan.

Mr. Zhang spent most ofThursday’s conference call fo-cusing on Alibaba’s responseto the coronavirus, whichprompted many local govern-

BY STU WOO

Alibaba Takes Hit From Virus

The company fears slow growth with workers stranded at home. A deliveryman in Wuhan, China.

REUTE

RS

vices expects to generate $1.6billion in revenue this year, upfrom $1.13 billion last year, thecompany said Thursday.

“2019 was a tremendousyear, both for the streamingindustry and for Roku,” ChiefExecutive Anthony Wood saidon a call with analysts. Thecompany is poised to benefitfrom the recent launch of sev-eral prominent streaming ser-

vices, including Walt DisneyCo.’s Disney+ and Apple Inc.’sApple TV+, which will be fol-lowed by Comcast Corp.’s Pea-cock and AT&T Inc.’s HBO Maxlater this year.

Roku is the market leaderamong connected-TV devicesin the U.S., according to Strat-egy Analytics. Mr. Wood saidjust under one in three smartTVs sold in the U.S. last year

were Roku TVs. Roku reported36.9 million active accounts atthe end of the fourth quarter,a 27% increase from the prioryear. For the fourth quarter,the company swung to a lossof $15.7 million, or 13 cents ashare, from a profit of $6.8million, or 5 cents a share, ayear earlier, because of a risein marketing and research ex-penses.

Roku Inc. said it expectedrevenue to increase 42% in2020 after posting 52% growthlast year, fueled in part by anexplosion of new streamingservices and the transition ofcustomers from traditional payTV to streaming video.

The Los Gatos, Calif.,maker of streaming-media de-

BY PATIENCE HAGGIN

Roku Expects 42% Increase in Revenueshare more than doubled to$1.89, ending a streak of fourquarters of weaker year-over-year results.

The results beat WallStreet forecasts. Analysts ex-pected Nvidia to generatesales of $2.96 billion and$1.67 in adjusted earnings pershare, according to a FactSetsurvey.

Nvidia’s shares rose 5% inafter-hours trading.

Graphics chip maker NvidiaCorp. reported recoveringearnings, buttressed by stronggaming revenue and recordsales to big data centers thatare using its hardware in arti-ficial-intelligence calculations.

The Santa Clara, Calif.,company said fiscal fourth-quarter sales rose 41% to $3.11billion. Adjusted earnings per

BY ASA FITCH

Nvidia Earnings Recover

Follow Trends and Analysisin Experience Management

Introducing The Experience Report, a weekly digest

of news, analysis and insight on how companies

optimize data, design and technology to drive

successwith consumers and employees.

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THEWALL STREET JOURNAL. * * Friday, February 14, 2020 | B5

BUSINESSWATCH

WAYFAIR

About 500 Jobs CutIn Cost-Saving Move

Online furniture seller WayfairInc. is cutting about 3% of itsworkforce, or roughly 500 jobs,the latest fast-growing companyto grapple with deep losses.

The unprofitable company,which until recently has been rap-idly expanding its staffing, saidthe changes would affect about350 people in its Boston head-quarters. The company said it hasover 17,000 employees globally.

The company is slated to re-port holiday-quarter results onFeb. 28. Wayfair, which has amarket valuation of $7.7 billion,has a history of quarterly lossesand rapid sales growth. In Octo-ber, its shares fell nearly 20% af-ter it posted a third-quarter loss.

—Charity L. Scott

PEPSICO

Snacks Fuel GainIn Quarterly Sales

Strong sales of salty snackslifted PepsiCo Inc.’s sales for thefourth quarter, as sugar-free ver-sions of Pepsi and Gatorade arehelping turn around the com-pany’s challenged North Americabeverage business.

PepsiCo hopes a new drinkcalled Mountain Dew Zero Sugarwill revive sales of that brand,

which has been flagging for years.Sales volume was flat in the

quarter for the company’s NorthAmerica beverage business unit,though revenue grew by 4%—itshighest quarterly growth ratesince 2015, Chief Financial OfficerHugh Johnston said.

In the Frito-Lay North Americadivision, sales rose 3%, driven bygrowth of snacks such as Doritos,Cheetos and Lays chips.

The company’s Quaker FoodsNorth America unit, which sells theQuaker Oats, Rice-A-Roni and AuntJemima brands, also is improving,though oatmeal had only “an OKyear,” Mr. Johnston said.

PepsiCo’s sales rose 5.7% to$20.64 billion for the quarterfrom the prior year. Net incomefell to $1.77 billion, or $1.26 ashare, from $6.85 billion, or $4.83a share, a year earlier. Adjustedearnings were $1.45 a share,ahead of the $1.44 a share ana-lysts were looking for.

—Jennifer Maloney

MATTEL

Toy Business DeclinesBut Top Brands Grow

Mattel Inc.’s sales fell 3% inthe fourth quarter as growth ofBarbie dolls, Hot Wheels cars and“Toy Story 4” toys were offset bydeclines for Fisher-Price andAmerican Girl products.

The company has relied on thegrowth of its two largest brands,

Barbie and Hot Wheels, to bluntan extended slump in other partsof its portfolio.

That trend continued into thelatest holiday season, with ashorter shopping period betweenThanksgiving and Christmas.

Chief Executive Ynon Kreiz saidMattel ended the year with flatrevenue after five straight years ofdeclines and it increased its mar-ket share in toys, where overallsales fell 4% last year, according toresearch firm NPD Group Inc.

Mattel posted a slight profitfor the fourth quarter, or break-even on a per-share basis, com-pared with a profit of $9.6 million,or 3 cents a share, a year earlier.

—Paul Ziobro

RENT THE RUNWAY

Ex-Amazon ExecutiveTo Run Supply Chain

Rent the Runway Inc., a cloth-ing-rental startup that has strug-gled to keep up with demand, hashired a former Amazon.com Inc.executive to oversee its supplychain and added another Amazonveteran to its board.

Brian Donato is joining as thefashion startup’s chief supply-chain officer, taking over responsi-bility for the company’s logisticsand customer service. Mike Roth,a former vice president of Ama-zon’s North America operations,joined the board last month.

—Charity L. Scott

Clothing-rental startup Rent the Runway has struggled to keep up with demand.

SHANNONSTA

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times to maximize growth inthese accounts. Those whoinherited 401(k)s and IRAsbefore 2020 can still usethis technique, known as the“Stretch IRA.”

The new law generally re-quires those who inherit af-ter Dec. 31, 2019, to take themoney out and pay the taxeswithin a decade. Some bene-ficiaries, including survivingspouses and disabled heirs,

PERSONAL FINANCE

can continue to use theStretch IRA rules.

Are 401(k), 403(b), and 457retirement accounts treatedthe same under the new law?

Yes, but 403(b) and 457plans for government work-ers and the Thrift SavingsPlan for federal employeeshave two extra years inwhich to comply with thenew law’s Stretch IRA elimi-

RETIREMENT REPORT | By Anne Tergesen

Making Sense of theNewSavings-Plan RulesEver since

Congresspassed aspending billin Decemberthat includes

significant changes to theU.S. retirement system, WallStreet Journal readers havebeen asking questions aboutthe impact on their retire-ment accounts.

In December, we ex-plained how a range of pro-visions will work, includingthose designed to enhanceolder workers’ individual-re-tirement-account balancesand allow parents to takepenalty-free withdrawalsfrom their retirement ac-counts on the birth or adop-tion of a child.

Now, with the law in ef-fect, we are delving deeperinto the new rules governinginheriting and taking re-quired distributions fromtax-advantaged accounts—with tips for updating yourfinancial plan, as well.

Who can take advantage ofdelaying required minimumdistributions, or RMDs, fromtax-deferred retirement ac-counts?

If you were born afterJune 30, 1949, you can waituntil you are 72 years old tostart required distributionsfrom your traditional IRAand 401(k).

Of course, you can alwaystake money out before turn-ing 72. But soon after your72nd birthday, the law re-quires you to withdraw a setminimum amount annually,or face a 50% excise tax onthe amount you should havetaken. (To determine yourRMD, divide your traditionalIRA and 401(k) balances asof the previous Dec. 31 byyour life expectancy in theIRS Uniform Lifetime Table.)

Delaying RMDs is advan-tageous because moremoney can accumulate tax-deferred.

Those born before July 1,

the income tax due when theIRA is liquidated. Trusts aretaxed at the highest 37%rate once their annual in-come exceeds $12,950. Incontrast, individuals don’treach the 37% bracket untiltheir income exceeds$518,400.

For people who want atrust, a solution may be toconvert a traditional IRA toa tax-free Roth account, saidMr. Slott.

The account owner willpay income tax on the IRAassets he or she converts.But once the money is in aRoth, the trust can take tax-free IRA withdrawals and re-tain control over the money.

With the elimination of thestretch IRA, what are alter-natives to leave to heirs?

One solution is for the ac-count owner to use the IRAfor living expenses or chari-table contributions andleave other assets to heirs,such as stocks, bonds, andreal estate that receive astep-up in basis at death.(This raises the asset’s taxbasis to the market value onthe date of death, eliminat-ing the capital-gains tax onthe appreciation during thedeceased person’s lifetime.)

The IRA owner can alsogive the IRA to a spouse,who can stretch distribu-tions over his or herlifespan. For example, a 70-year-old widow could takepayouts over a 27-year lifeexpectancy and then leavethe account to youngerheirs.

Life insurance is a tax-ef-ficient way to transfermoney to heirs, said Mr.Slott. Buyers purchase thesepolicies with after-tax dol-lars and need to be aware ofthe fees.

But the proceeds are freeof income tax, and can beset up to avoid estate taxes.The insurance money canalso be placed in a trust tokeep it protected.

1949, have to stick with theold rules, which requireRMDs to start soon after70½.

The transitionmeans that if “onespouse was bornon June 30,1949, and theother wasborn a daylater on July1, 1949, theirRMDs wouldstart twoyears apart,”said EdSlott, anIRA consul-tant inRockvilleCentre,N.Y.

What are thedeadlines underthe new rules forthe first and sec-ond RMDs?

As with the oldrules, account own-ers must take theirfirst RMD by April1 of the year fol-lowing the year inwhich they turnthe age to startrequired distri-butions, or 72for those bornafter June 30,1949. Some-one whoturns 72 in2022 must take his or herfirst RMD by April 1, 2023.

The second RMD is dueby Dec. 31 of that sameyear—or 2023 in the aboveexample. The deadline for allsubsequent RMDs is Dec. 31.

What are the new rules forpeople who inherit IRAs or401(k)s?

Under the old rules, peo-ple who inherited Roth andtraditional accounts were of-ten permitted to stretch re-quired withdrawals—andmake associated tax pay-ments—over their own life-

nation. That means that ifyou inherit one of these ac-counts from someone whodies before Jan. 1, 2022, youcan take required distribu-

tions—and make the asso-ciated tax payments—over your lifetime.

What advice canyou give heirs

who musttake tax-able dis-tributionsover 10years?The 10-

year dead-line allows

beneficiariesto decide when,

over the decade,to take the moneyout and whetherto do so in install-ments or a lumpsum.“They should adjust

the distributions tobest suit their tax situa-tion,” said Mr. Slott.For example, a benefi-

ciary who incurs a deduct-ible business loss in yearone might want to take outat least enough from the in-herited IRA to use the lossto shield the distributionfrom tax. An heir who plansto retire in five years mightwant to wait until he or sheis in a lower tax bracket totake withdrawals.

What if I left my IRA to atrust?

Some IRA owners leavetheir accounts to trusts toprevent heirs from spendingit all. Many of these trustsrestrict annual payouts tothe RMD. But with theStretch IRA gone, some willbe forced to distribute themoney to the beneficiarieswithin a decade.

Owners can change theterms to allow the trust toretain control of the moneyfor longer. But that leavesthe trust on the hook to payP

HOTO

ILLU

STR

ATION:TH

EWALL

STR

EETJO

URNAL

Get the clarity you need tomake the best decisionsfor your retirement.• Find out how much you may need

to cover your essential expenses,and still do what you want.

• Factor in uncertainties such ashealth care, Social Security,inflation, and more.

• Get an action plan withspecific steps to help youstay on the right track.

800.FIDELITY

Fidelity.com/forward

IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regardingthe likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are notguarantees of future results. Your results may vary with each use and over time.

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B6 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

NetStock SymClose Chg

A B CABB ABB 24.32 -0.42ACADIA Pharm ACAD 46.87 1.65AECOM ACM 47.84 0.04AES AES 20.83 -0.13Aflac AFL 52.46 0.06AGNC Invt AGNC 19.12 0.13

s Ansys ANSS 291.68 -0.78ASETech ASX 5.17 0.03

s ASML ASML 317.25 -0.19AT&T T 38.31 0.27AbbottLabs ABT 88.68 -0.11AbbVie ABBV 95.35 -2.44Abiomed ABMD 164.80 -2.14Accenture ACN 212.40 0.41ActivisionBliz ATVI 62.59 -0.21

s Adobe ADBE 374.84 0.55AdvanceAuto AAP 134.67 0.35

s AdvMicroDevicesAMD 54.53 0.64Aegon AEG 4.07 -0.25

s AerCap AER 62.45 1.68AgilentTechs A 85.47 0.04AgnicoEagle AEM 59.11 -0.18

s AirProducts APD 254.88 0.78AkamaiTech AKAM 99.60 2.15AlaskaAir ALK 66.50 0.96Albemarle ALB 87.93 1.10Alcon ALC 62.40 -0.29

s AlexandriaRlEstARE 173.58 0.17AlexionPharm ALXN 103.42 -1.77Alibaba BABA 220.36 -3.95AlignTech ALGN 272.97 -0.64Alleghany Y 822.58 6.73Allegion ALLE 136.83 -1.74Allergan AGN 199.26 -2.10

AlliantEnergy LNT 59.38 0.72Allstate ALL 124.89 1.11AllyFinancial ALLY 33.06 0.11AlnylamPharmALNY 130.10 -3.89Alphabet C GOOG 1514.66 -3.61Alphabet A GOOGL 1513.39 -5.24

s Alteryx AYX 144.30 -2.22AlticeUSA ATUS 27.97 -1.58Altria MO 45.65 0.25Amarin AMRN 17.69 -0.49Amazon.com AMZN 2149.87 -10.13

t Ambev ABEV 3.71 -0.06Amcor AMCR 10.16 -0.31Amdocs DOX 73.36 -0.23

s Amedisys AMED 201.01 2.20Amerco UHAL 346.92 3.19

s Ameren AEE 85.75 1.18AmericaMovil AMX 17.89 -0.03AmerAirlines AAL 30.09 -0.38AmCampus ACC 47.49 0.38AEP AEP 102.85 1.06AmerExpress AXP 134.46 1.22AmericanFin AFG 112.81 -0.53AmHomes4RentAMH 29.20 0.48AIG AIG 50.93 -3.35AmerTowerREITAMT 256.90 0.72AmerWaterWorksAWK 136.95 1.25AmericoldRealty COLD 37.30 0.74Ameriprise AMP 178.40 0.73AmerisourceBrgnABC 94.52 -0.84Ametek AME 101.44 -0.33Amgen AMGN 223.04 -2.36Amphenol APH 104.37 0.82AnalogDevicesADI 118.88 0.07Anaplan PLAN 62.32 -0.25AngloGoldAshAU 19.50 0.35

t AB InBev BUD 73.70 -0.36s AnnalyCap NLY 10.33 0.28

Anthem ANTM 298.87 2.87s Aon AON 234.58 3.66Apache APA 27.92 -0.56ApartmtInv AIV 54.13 0.45ApolloGlbMgmtAPO 45.79 -0.55Apple AAPL 324.87 -2.33

s ApplMaterials AMAT 67.37 2.00Aptargroup ATR 116.20 1.49Aptiv APTV 90.52 -0.99Aramark ARMK 41.67 0.07ArcelorMittal MT 17.56 -0.29ArchCapital ACGL 47.83 0.79ArcherDaniels ADM 45.27 -0.34

s Arconic ARNC 32.95 0.14arGEN-X ARGX 161.04 0.84AristaNetworks ANET237.62 3.16ArrowElec ARW 79.21 -1.13AscendisPharma ASND 139.38 -4.35AspenTech AZPN 126.79 -1.96

s Assurant AIZ 140.34 3.65AstraZeneca AZN 49.33 -0.25Athene ATH 47.80 0.18

s Atlassian TEAM 153.25 1.71AtmosEnergy ATO 119.50 1.56Autodesk ADSK 207.51 0.40Autohome ATHM 80.00 -3.35Autoliv ALV 79.00 0.27

s ADP ADP 180.11 2.08AutoZone AZO 1066.55 2.98

s Avalara AVLR 91.25 -1.43s Avalonbay AVB 225.59 1.20Avangrid AGR 53.58 0.83Avantor AVTR 17.67 -0.12AveryDennisonAVY 138.16 -1.67AxaltaCoating AXTA 29.75 0.23BCE BCE 48.37 -0.25BHP Group BHP 52.00 -0.37BHP Group BBL 44.07 -0.51

NetStock SymClose Chg

NetStock SymClose Chg

BP BP 36.18 -0.36s BWX Tech BWXT 68.55 0.69Baidu BIDU 135.18 -2.31BakerHughes BKR 22.08 -0.08Ball BLL 77.17 0.64BancoBilbaoViz BBVA 5.71 -0.09BancoBradesco BBDO 7.20 -0.22BancodeChile BCH 20.26 -0.08BancSanBrasil BSBR 9.57 -0.19BcoSantChile BSAC 20.16 -0.22BancoSantander SAN 4.23 -0.02BanColombia CIB 54.95 -0.01BankofAmerica BAC 34.91 -0.01BankofMontreal BMO 76.73 -0.27BankNY Mellon BK 46.03 -0.53BkNovaScotia BNS 56.27 -0.03Barclays BCS 9.15 -0.06BarrickGold GOLD 18.93 0.52BauschHealth BHC 27.43 -1.12BaxterIntl BAX 92.57 1.14BectonDicknsn BDX 254.35 2.12BeiGene BGNE 168.44 ...Berkley WRB 79.32 0.68BerkHathwy B BRK.B 226.47 -0.97BerkHathwy A BRK.A 338500-2500.00BestBuy BBY 90.40 -0.53BeyondMeat BYND 112.01 -2.72Bio-Techne TECH 205.65 0.50Bio-RadLab A BIO 379.34 3.76Bio-RadLab B BIO.B 379.45 10.09Biogen BIIB 334.25 2.49BioMarinPharm BMRN 88.24 -0.91BioNTech BNTX 30.64 1.08

s BlackKnight BKI 70.00 1.10BlackRock BLK 568.55 -3.93Blackstone BX 62.94 0.09Boeing BA 342.82 -2.57BookingHldgs BKNG 1959.94 -0.42BoozAllen BAH 76.22 0.46BorgWarner BWA 35.08 0.39BostonProps BXP 145.58 0.56BostonSci BSX 42.18 -0.05

s BrightHorizons BFAM 173.74 1.78Bristol-Myers BMY 66.08 -0.92BritishAmTob BTI 44.03 0.03Broadcom AVGO 323.97 -0.73BroadridgeFinl BR 122.37 -1.06

s BrookfieldMgt BAM 66.63 2.04BrookfieldInfr BIP 55.29 0.07Brown&Brown BRO 47.49 0.67Brown-Forman A BF.A 67.42 1.00Brown-Forman B BF.B 71.21 0.52Bruker BRKR 50.59 0.05Bunge BG 55.77 1.25BurlingtonStrs BURL 244.14 2.82CACI Intl CACI 278.03 5.46CBRE Group CBRE 64.12 0.43CDK Global CDK 52.43 0.13CDW CDW 137.28 0.69CF Industries CF 39.34 -1.97

NetStock SymClose Chg

CGI GIB 76.98 -0.37CH Robinson CHRW 72.13 -1.19CME Group CME 208.31 0.67CMS Energy CMS 67.92 0.56CNA Fin CNA 50.20 0.20CNH Indl CNHI 9.52 -0.19CNOOC CEO 159.91 -2.59CRH CRH 39.11 -0.30CSX CSX 79.84 0.36CVS Health CVS 72.00 -1.75

s CableOne CABO 1800.00 17.27CabotOil COG 15.07 0.11

s CadenceDesign CDNS 79.25 2.15CAE CAE 30.30 -0.37

s CaesarsEnt CZR 14.46 0.10s CamdenProperty CPT 117.57 1.58CampbellSoup CPB 48.36 0.18CIBC CM 83.43 0.01CanNtlRlwy CNI 93.88 -0.82CanNaturalRes CNQ 29.37 -0.42CanPacRlwy CP 273.53 0.14Canon CAJ 25.93 -0.08CanopyGrowth CGC 19.52 -0.13CapitalOne COF 102.78 -0.02CardinalHealth CAH 59.40 -0.73Carlisle CSL 161.75 -0.74Carlyle CG 32.94 -0.75CarMax KMX 98.89 0.66Carnival CCL 43.20 -0.86Carnival CUK 40.92 -0.96Catalent CTLT 59.60 0.27Caterpillar CAT 139.72 0.13Celanese CE 110.50 -0.92Cemex CX 3.95 -0.17CenovusEnergy CVE 8.98 -0.15Centene CNC 65.89 -0.60CenterPointEner CNP 27.18 0.06CentraisElBras EBR 8.07 ...CenturyLink CTL 13.88 -1.28CeridianHCM CDAY 72.37 2.55Cerner CERN 76.49 -0.19CharlesRiverLabs CRL 172.30 0.97CharterComms CHTR 534.73 0.73CheckPoint CHKP 117.88 -1.40Chemed CHE 491.64 1.54CheniereEnergy LNG 54.76 -0.42CheniereEnerPtrs CQP 36.82 -0.23Chevron CVX 111.66 -0.38Chewy CHWY 28.87 0.77ChinaLifeIns LFC 12.45 -0.44ChinaMobile CHL 42.45 -0.74ChinaPetrol SNP 54.40 -0.69ChinaUnicom CHU 8.69 -0.07

s Chipotle CMG 912.95 12.58Chubb CB 164.83 0.94ChunghwaTel CHT 36.35 0.33Church&Dwight CHD 75.72 0.28

s ChurchillDowns CHDN 161.70 1.44Ciena CIEN 43.31 0.11Cigna CI 221.89 -0.67

NetStock SymClose Chg

CincinnatiFin CINF 114.85 1.11s Cintas CTAS 298.10 0.98CiscoSystems CSCO 47.32 -2.61Citigroup C 79.00 -0.33CitizensFin CFG 38.95 0.07CitrixSystems CTXS 123.00 0.96ClarivateAnaly CCC 21.76 -0.17Clorox CLX 164.77 0.54Coca-Cola KO 59.61 0.20Coca-Cola Euro CCEP 54.65 2.26Cognex CGNX 53.46 -1.41CognizantTech CTSH 69.61 0.18ColgatePalm CL 76.37 0.42ColumbiaSportswr COLM 91.08 -0.63Comcast A CMCSA 46.07 0.05Comerica CMA 62.97 0.26CommerceBcshrs CBSH 70.70 -0.10SABESP SBS 14.57 -0.08ConagraBrands CAG 32.58 -0.05ConchoRscs CXO 78.64 -0.50ConocoPhillips COP 58.82 -0.52ConEd ED 93.64 0.77ConstBrands B STZ.B204.15 4.94ConstBrands A STZ 201.19 2.47ContinentalRscs CLR 26.79 0.24Cooper COO 352.97 -0.12Copart CPRT 103.35 0.86Corning GLW 28.71 -0.13Corteva CTVA 30.60 -0.34CoStar CSGP 729.80 -10.32

s Costco COST 318.20 3.08Coty COTY 11.54 -0.27CoupaSoftware COUP 165.16 -0.20

s CousinsProperties CUZ 42.29 0.30Credicorp BAP 206.83 -1.73CreditAcceptance CACC 434.01 0.83CreditSuisse CS 13.65 0.02CrowdStrike CRWD 65.31 0.23

s CrownCastle CCI 163.92 0.71s CrownHoldings CCK 79.97 1.10CubeSmart CUBE 32.48 0.35Cummins CMI 166.10 -1.94CurtissWright CW 148.10 -0.64CypressSemi CY 23.48 0.04CyrusOne CONE 66.79 -0.53

D E FDISH Network DISH 40.18 0.07DTE Energy DTE 133.55 -0.20DXC Tech DXC 30.64 -1.16Danaher DHR 163.42 -0.41Darden DRI 122.27 -0.18Datadog DDOG 48.50 -1.51DaVita DVA 86.24 -0.76Deere DE 170.76 -1.07DellTechC DELL 52.55 -0.75DeltaAir DAL 59.13 -0.34DentsplySirona XRAY 58.11 0.10

s DeutscheBankDB 11.02 0.17

NetStock SymClose Chg

DevonEnergy DVN 23.30 0.04s DexCom DXCM 252.21 6.21Diageo DEO 160.46 0.10DiamondbkEner FANG 74.54 0.19DigitalRealty DLR 126.53 -0.52DiscoverFinSvcsDFS 76.20 0.16DiscoveryB DISCB 36.00 -3.89DiscoveryA DISCA 30.33 -0.02DiscoveryC DISCK 28.90 0.04Disney DIS 140.90 -0.95

s DocuSign DOCU 88.03 0.70DolbyLab DLB 72.03 0.02DollarGeneral DG 159.85 1.19DollarTree DLTR 89.27 -0.25

s DominionEner D 86.24 0.46Domino's DPZ 286.03 5.00Donaldson DCI 52.68 -0.56DouglasEmmettDEI 44.42 0.62Dover DOV 119.56 -0.29Dow DOW 48.30 -1.08

s DrReddy'sLab RDY 45.85 1.18Dropbox DBX 18.61 0.04

s DukeEnergy DUK 100.11 3.14s DukeRealty DRE 37.94 0.31Dunkin' DNKN 76.15 0.77DuPont DD 53.27 -0.28

s Dynatrace DT 35.98 -0.23ENI E 28.21 -0.29EOG Rscs EOG 75.68 0.30EPAM Systems EPAM 232.95 0.60E*TRADE ETFC 44.60 0.29EastWestBncp EWBC 48.43 0.13EastmanChem EMN 75.03 -0.65Eaton ETN 102.89 -1.14eBay EBAY 37.19 0.04Ecolab ECL 207.06 0.24Ecopetrol EC 19.81 -0.09EdisonInt EIX 77.37 -0.13EdwardsLife EW 226.54 -0.27ElancoAnimal ELAN 31.12 -0.24ElbitSystems ESLT 157.21 -2.23ElectronicArts EA 108.84 -0.88EmersonElec EMR 73.14 -1.76Enbridge ENB 42.02 -0.43EncompassHealth EHC 82.41 0.29EnelAmericas ENIA 9.34 -0.19EnelChile ENIC 4.84 0.01EnergyTransfer ET 12.81 -0.02

s Entegris ENTG 58.39 -0.08Entergy ETR 133.24 1.68EnterpriseProd EPD 26.09 -0.41

s Equifax EFX 162.26 7.74s Equinix EQIX 635.75 12.61Equinor EQNR 17.48 -0.06Equitable EQH 27.00 ...

s EquityLife ELS 74.30 0.53EquityResdntl EQR 85.22 0.43ErieIndemnity A ERIE 162.10 1.33EssentialUtil WTRG 53.18 0.24EssexProp ESS 321.51 2.33

NetStock SymClose Chg

EsteeLauder EL 214.89 0.10Etsy ETSY 52.97 0.72EuronetWorldwide EEFT 148.06 0.31EverestRe RE 291.78 4.10Evergy EVRG 71.55 0.81EversourceEner ES 92.48 1.22ExactSciences EXAS 94.76 -1.09Exelixis EXEL 20.25 0.15Exelon EXC 49.57 0.31Expedia EXPE 110.59 -0.38ExpeditorsIntl EXPD 74.18 0.76ExtraSpaceSt EXR 113.04 0.88ExxonMobil XOM 60.93 -0.34F5Networks FFIV 128.22 1.51FMC FMC 105.43 -1.01Facebook FB 213.14 2.38FactSet FDS 296.83 3.57FairIsaac FICO 418.09 7.52

s Fastenal FAST 38.24 -0.10FederalRealty FRT 124.85 1.01FedEx FDX 161.47 2.96Ferrari RACE 172.31 -1.48FiatChrysler FCAU 13.44 -0.21FidNatlFin FNF 45.20 0.45

s FidNatlInfo FIS 154.32 6.36FifthThirdBncp FITB 29.83 0.1958.com WUBA 59.07 -3.07

s FirstAmerFin FAF 65.33 2.93FirstRepBank FRC 118.11 0.18FirstEnergy FE 51.98 0.50Fiserv FISV 121.06 1.92FiveBelow FIVE 114.93 1.39FleetCorTech FLT 317.58 1.20Flex FLEX 13.64 -0.07

s FlirSystems FLIR 58.79 0.44Flowserve FLS 46.96 -1.30FomentoEconMex FMX 95.31 -0.33FordMotor F 8.25 0.01Fortinet FTNT 119.10 1.70Fortis FTS 44.02 0.46Fortive FTV 77.24 -1.76

s FortBrandsHome FBHS 72.64 0.16FoxA FOXA 38.00 0.33FoxB FOX 37.52 0.36

s Franco-Nevada FNV 114.61 0.68t FranklinRscs BEN 24.21 -0.40FreeportMcM FCX 12.61 -0.06FreseniusMed FMS 39.95 -0.24

G H Is GCI LibertyA GLIBA 77.66 0.59GDS Holdings GDS 60.34 0.56Galapagos GLPG 257.16 -0.82

s Gallagher AJG 108.20 1.55Gaming&LeisureGLPI 48.95 -0.01Gap GPS 18.33 -0.13GardnerDenverGDI 37.55 -0.93Garmin GRMN 98.30 0.49Gartner IT 150.88 -0.67

s Generac GNRC115.75 2.03

NetStock SymClose Chg

Thursday, February 13, 2020

How to Read the Stock TablesThe following explanations apply to NYSE, NYSEArca, NYSE American and Nasdaq Stock Marketlisted securities. Prices are composite quotationsthat include primary market trades as well astrades reported by Nasdaq BX (formerly Boston),Chicago Stock Exchange, Cboe, NYSE National andNasdaq ISE.The list comprises the 1,000 largest companiesbased on market capitalization.Underlined quotations are those stocks withlarge changes in volume compared with theissue’s average trading volume.Boldfaced quotations highlight those issueswhose price changed by 5% or more if theirprevious closing price was $2 or higher.

Footnotes:s-New 52-week high.t-New 52-week low.dd-Indicates loss in the most recent fourquarters.FD-First day of trading.h-Does not meet continued listingstandardslf-Late filingq-Temporary exemption from Nasdaqrequirements.t-NYSE bankruptcyv-Trading halted on primary market.vj-In bankruptcy or receivership or beingreorganized under the Bankruptcy Code,or securities assumed by such companies.

Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. andchanges in the closing prices from 4 p.m. the previous day.

BIGGEST 1,000 STOCKS

GeneralDynamicsGD 189.43 0.68GeneralElec GE 12.94 -0.22GeneralMills GIS 52.99 0.06GeneralMotorsGM 35.29 -0.20Genmab GMAB 23.87 0.03Genpact G 43.52 0.27Gentex GNTX 30.60 0.12GenuineParts GPC 96.96 0.41GileadSciencesGILD 66.80 -0.15GSK GSK 43.78 -0.45GlobalPaymentsGPN 202.73 1.08

s GlobeLife GL 110.59 1.20GoDaddy GDDY 70.87 -0.03GoldmanSachsGS 238.35 -0.30

s Graco GGG 56.35 0.07Grainger GWW 305.36 -5.60Grifols GRFS 24.33 0.32GpoAeroportuar PAC 129.14 -1.44GuardantHealthGH 81.80 -1.00Guidewire GWRE 121.26 0.31

s HCA HealthcareHCA 150.88 0.32HDFC Bank HDB 59.73 -0.08HD Supply HDS 41.34 -0.09HP HPQ 22.22 -0.26HSBC HSBC 38.21 -0.39Halliburton HAL 22.19 -0.16HartfordFinl HIG 59.24 0.34Hasbro HAS 96.99 -1.21

s HealthcareAmerHTA 32.67 0.20HealthpeakProp PEAK 37.28 0.53Heico HEI 128.23 0.96Heico A HEI.A 101.90 0.87HenrySchein HSIC 71.51 -0.35Hershey HSY 159.33 1.47Hess HES 59.99 1.22HewlettPackardHPE 14.70 -0.33Hexcel HXL 75.11 0.78Hill-Rom HRC 108.63 -0.46Hilton HLT 112.96 -0.74HollyFrontier HFC 43.58 -1.22Hologic HOLX 52.44 -0.16

s HomeDepot HD 242.36 0.77HondaMotor HMC 27.08 -0.08Honeywell HON 180.12 -1.06HorizonTherapHZNP 35.84 -0.56

s HormelFoods HRL 48.45 0.69DR Horton DHI 61.67 0.07HostHotels HST 16.87 -0.22Huazhu HTHT 37.00 -0.60Hubbell HUBB 149.52 0.39HubSpot HUBS 197.34 13.17

s Humana HUM 380.20 6.34JBHunt JBHT 114.23 0.27HuntingtonBcshs HBAN 14.15 0.10HuntingIngalls HII 250.36 -19.72HyattHotels H 87.75 -1.23IAA IAA 48.73 1.30IAC/InterActive IAC 235.51 -0.99ICICI Bank IBN 15.09 -0.26

NetStock SymClose Chg

Continued on Page B7

Net YTDFund NAV Chg %Ret

American Century InvUltra 57.29 +0.10 9.8American Funds Cl AAmcpA p 35.26 +0.03 5.0AMutlA p 44.40 -0.10 2.0BalA p 29.34 -0.02 2.9BondA p 13.28 +0.01 1.7CapIBA p 64.01 -0.12 1.1CapWGrA 53.27 -0.20 1.9EupacA p 55.90 -0.27 0.4FdInvA p 64.51 -0.11 4.0GwthA p 54.77 +0.04 7.1HI TrA p 10.14 ... 1.3ICAA p 40.84 -0.10 3.2IncoA p 23.55 -0.03 1.3N PerA p 49.67 -0.01 5.1NEcoA p 48.57 +0.05 6.2NwWrldA 71.60 -0.18 1.5SmCpA p 60.99 +0.13 3.7TxExA p 13.51 ... 1.6WshA p 49.55 -0.11 2.9Baird FundsAggBdInst 11.40 +0.01 1.9CorBdInst 11.75 +0.01 1.8BlackRock Funds

HiYldBd Inst 7.81 ... 1.1BlackRock Funds AGlblAlloc p 19.71 -0.03 2.8BlackRock Funds InstEqtyDivd 21.08 -0.06 1.0MultiAstIncome 11.09 ... 1.4StratIncOpptyIns 10.08 ... 1.4Bridge Builder TrustCoreBond 10.59 +0.01 1.9CorePlusBond 10.32 ... 1.8Intl Eq 12.04 -0.05 0.4LargeCapValue 13.96 -0.02 1.9Del Invest InstlValue 22.51 -0.18 0.4Dimensional Fds5GlbFxdInc 10.78 ... 0.5DFARlEst 43.54 +0.24 6.4EmgMktVa 27.40 -0.18 -4.5EmMktCorEq 21.38 -0.10 -1.8IntlCoreEq 13.63 -0.07 -1.3IntSmCo 18.54 -0.07 -1.9IntSmVa 18.63 -0.06 -3.7LgCo 25.93 -0.04 4.6TAUSCoreEq2 20.71 -0.02 2.7US CoreEq1 26.71 -0.03 3.0

Net YTDFund NAV Chg %Ret

US CoreEq2 24.29 -0.03 2.5US Small 35.04 +0.08 ...US SmCpVal 33.30 +0.07 -3.3US TgdVal 22.60 ... -2.5USLgVa 38.68 -0.09 ...Dodge & CoxBalanced 103.54 -0.25 1.9GblStock 12.85 -0.04 1.1Income 14.26 ... 1.6Intl Stk 43.10 -0.17 -1.1Stock 197.80 -0.77 2.1DoubleLine FundsCoreFxdIncmI 11.23 +0.01 1.7TotRetBdI 10.77 +0.01 1.6Edgewood Growth InstitutiEdgewoodGrInst 41.33 +0.09 7.3Fidelity500IdxInstPrem 117.24 -0.16 4.7Contrafund K6 15.55 ... 7.5ExtMktIdxInstPre 67.93 +0.24 4.4IntlIdxInstPrem 42.98 -0.17 ...MidCpInxInstPrem 24.44 +0.02 3.4SAIUSLgCpIndxFd 18.09 -0.02 4.6SmCpIdxInstPrem 21.37 +0.06 1.6TMktIdxInstPrem 94.76 -0.05 4.6

Net YTDFund NAV Chg %Ret

Thursday, February 13, 2020

Top 250 mutual-funds listings for Nasdaq-published share classes by net assets.

e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and sapply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotesx and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incompleteprice, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund nottracked. NS-Fund didn’t exist at start of period.

Mutual FundsUSBdIdxInstPrem 12.10 +0.01 1.9Fidelity Advisor INwInsghtI 34.63 -0.03 5.9Fidelity FreedomFF2020 16.47 -0.01 1.6FF2025 14.56 -0.01 1.7FF2030 18.14 -0.02 1.7Freedom2020 K 16.45 -0.01 1.5Freedom2025 K 14.54 -0.01 1.7Freedom2030 K 18.12 -0.02 1.8Freedom2035 K 15.35 -0.02 1.9Freedom2040 K 10.78 -0.02 1.9Fidelity InvestBalanc 25.71 -0.01 4.5BluCh 118.53 -0.14 10.0Contra 14.65 -0.01 7.6ContraK 14.67 -0.01 7.6CpInc r 10.38 ... 1.7GroCo 23.49 -0.04 10.0GrowCoK 23.53 -0.04 10.0InvGrBd 11.75 +0.01 1.9LowP r 49.68 -0.07 -0.7Magin 11.03 +0.03 8.1OTC 13.89 -0.02 8.6Puritn 23.83 ... 4.7SAIUSQtyIdx 15.46 -0.03 5.3SrsEmrgMkt 20.77 -0.07 0.7SrsGlobal 13.16 -0.06 -0.1SrsGroCoRetail 19.59 -0.03 10.4SrsIntlGrw 18.09 -0.04 3.3SrsIntlVal 9.85 -0.03 -0.5TotalBond 11.07 +0.01 1.8Fidelity SAITotalBd 10.65 ... 1.8First Eagle FundsGlbA 57.66 -0.10 -0.5FPA FundsFPACres 34.70 -0.13 2.6Franklin A1

CA TF A1 p 7.78 ... 2.0IncomeA1 p 2.34 ... NAFrankTemp/Frank AdvIncomeAdv 2.32 ... NAFrankTemp/Franklin ARisDv A p 72.32 +0.11 NAFrankTemp/Franklin CIncome C t 2.38 ... NAFrankTemp/Temp AdvGlBondAdv p 10.59 +0.01 NAGuggenheim Funds TruTotRtnBdFdClInst 27.51 +0.02 1.7Harbor FundsCapApInst 83.99 -0.11 10.9Harding LoevnerIntlEq 24.05 -0.15 NAInvesco Funds AEqIncA 10.39 -0.03 1.0Invesco Funds YDevMktY 45.29 -0.27 -0.7JPMorgan I ClassEqInc 19.78 ... 1.9JPMorgan R ClassCoreBond 12.05 +0.01 2.0Lord Abbett AShtDurIncmA p 4.22 ... 0.6Lord Abbett FShtDurIncm 4.22 ... 0.6Lord Abbett IShtDurInc p 4.22 ... 0.6Metropolitan WestTotRetBdI 11.10 +0.01 NATRBdPlan 10.44 +0.01 NAMFS Funds Class IValueI 45.67 +0.06 2.2MFS Funds InstlIntlEq 28.12 -0.06 0.9Northern FundsStkIdx 38.79 -0.05 4.6

Nuveen Cl IHYMunBd 18.42 ... 3.0Oakmark Funds InvestOakmrkInt 24.25 -0.13 -2.8Old Westbury FdsLrgCpStr 15.57 -0.02 3.3Parnassus FdsParnEqFd 49.08 +0.03 4.4PGIM Funds Cl ZTotalReturnBond 14.69 ... 2.4PIMCO Fds InstlAllAsset 11.82 -0.02 NATotRt 10.53 +0.01 2.2PIMCO Funds AIncomeFd 12.11 +0.01 NAPIMCO Funds I2Income 12.11 +0.01 NAPIMCO Funds InstlIncomeFd 12.11 +0.01 NAPrice FundsBlChip 134.97 +0.01 8.5DivGro 55.54 -0.01 4.2EqInc 32.22 -0.13 0.4EqIndex 89.80 -0.12 4.6Growth 79.79 -0.02 8.8HelSci 84.13 -0.20 3.3InstlCapG 47.80 -0.05 8.5IntlStk 18.82 -0.14 1.0MidCap 98.53 -0.05 3.4N Inc 9.84 ... 1.7NHoriz 65.00 +0.31 9.5OverS SF r 11.17 -0.09 -0.2R2020 22.60 -0.03 2.3R2025 18.24 -0.03 2.6R2030 26.63 -0.05 2.8R2035 19.59 -0.05 2.9R2040 27.90 -0.07 3.1Value 39.03 -0.14 2.9

PRIMECAP Odyssey FdsAggGrowth r 46.69 -0.17 4.0Growth r 41.90 -0.26 2.3Stock r 34.83 -0.24 1.0Schwab Funds1000 Inv r 74.58 -0.05 4.8S&P Sel 51.69 -0.07 4.7TSM Sel r 58.53 -0.04 4.6TIAA/CREF FundsBdIdxInst 11.28 +0.01 1.8VANGUARD ADMIRAL500Adml 312.03 -0.40 4.7BalAdml 40.63 ... 3.6CAITAdml 12.24 ... 1.5CapOpAdml r 164.34 -0.68 4.2DivAppIdxAdm 35.33 +0.06 4.4EMAdmr 36.54 -0.19 -1.1EqIncAdml 80.79 -0.21 1.5ExplrAdml 100.48 +0.25 3.4ExtndAdml 99.78 +0.35 4.4GNMAAdml 10.59 ... 0.7GrwthAdml 102.47 +0.08 9.2HlthCareAdml r 91.07 -0.54 3.7HYCorAdml r 6.00 ... 1.3InfProAd 26.30 +0.05 1.6IntlGrAdml 107.36 -0.60 4.4ITBondAdml 12.03 +0.01 2.2ITIGradeAdml 10.20 +0.01 1.8LTGradeAdml 11.41 +0.03 4.6MidCpAdml 229.62 +0.14 4.1MuHYAdml 11.92 ... 1.9MuIntAdml 14.65 ... 1.5MuLTAdml 12.09 ... 2.0MuLtdAdml 11.14 ... 0.8MuShtAdml 15.88 ... 0.4PrmcpAdml r 149.64 -0.76 3.8RealEstatAdml 139.70 +0.85 6.2SmCapAdml 81.34 +0.18 2.5SmGthAdml 73.24 +0.25 4.8

STBondAdml 10.62 ... 0.7STIGradeAdml 10.79 ... 0.9TotBdAdml 11.22 +0.01 1.8TotIntBdIdxAdm 23.00 ... 1.8TotIntlAdmIdx r 29.80 -0.15 -0.2TotStAdml 83.42 -0.04 4.7TxMCapAdml 174.32 -0.08 5.1TxMIn r 14.14 -0.08 ...USGroAdml 123.53 +0.15 10.9ValAdml 47.23 -0.13 1.0WdsrllAdml 66.52 -0.21 3.0WellsIAdml 67.71 -0.01 2.3WelltnAdml 76.91 -0.15 2.7WndsrAdml 73.52 -0.21 1.7VANGUARD FDSDivdGro 31.82 +0.02 4.1INSTTRF2020 24.63 -0.02 2.2INSTTRF2025 25.32 -0.03 2.4INSTTRF2030 25.73 -0.03 2.4INSTTRF2035 26.13 -0.04 2.5INSTTRF2040 26.54 -0.05 2.6INSTTRF2045 26.86 -0.06 2.6INSTTRF2050 26.91 -0.05 2.6IntlVal 37.40 -0.19 -0.3LifeCon 21.49 -0.01 2.2LifeGro 37.05 -0.06 2.5LifeMod 29.54 -0.03 2.4PrmcpCor 28.61 -0.15 2.5STAR 28.26 -0.04 3.4TgtRe2015 15.48 -0.01 2.0TgtRe2020 33.23 -0.03 2.2TgtRe2025 20.31 -0.02 2.4TgtRe2030 37.33 -0.05 2.4TgtRe2035 23.08 -0.04 2.5TgtRe2040 40.12 -0.08 2.5TgtRe2045 25.35 -0.05 2.6TgtRe2050 40.80 -0.08 2.6TgtRet2055 44.31 -0.09 2.6

TgtRetInc 14.31 ... 1.9TotIntBdIxInv 11.50 ... 1.8WellsI 27.95 ... 2.3Welltn 44.53 -0.09 2.7WndsrII 37.49 -0.12 3.0VANGUARD INDEX FDSMdCpVlAdml 63.00 -0.13 2.0SmValAdml 59.22 +0.08 0.6TotBd2 11.18 +0.01 1.8TotIntl 17.81 -0.09 -0.3TotSt 83.38 -0.05 4.7VANGUARD INSTL FDSBalInst 40.64 ... 3.6DevMktsIndInst 14.16 -0.07 ...DevMktsInxInst 22.14 -0.11 ...ExtndInst 99.78 +0.35 4.4GrwthInst 102.48 +0.08 9.2InPrSeIn 10.71 +0.02 1.6InstIdx 303.75 -0.40 4.7InstPlus 303.77 -0.40 4.7InstTStPlus 71.87 -0.04 4.7MidCpInst 50.73 +0.04 4.1MidCpIstPl 250.17 +0.16 4.1RealEstaInstl 21.62 +0.13 6.1SmCapInst 81.34 +0.19 2.5STIGradeInst 10.79 ... 0.9STIPSIxins 24.80 +0.01 0.4TotBdInst 11.22 +0.01 1.8TotBdInst2 11.18 +0.01 1.9TotBdInstPl 11.22 +0.01 1.8TotIntBdIdxInst 34.52 +0.01 1.8TotIntlInstIdx r 119.17 -0.61 -0.3TotItlInstPlId r 119.20 -0.60 -0.2TotStInst 83.43 -0.05 4.7ValueInst 47.23 -0.13 1.0WCM Focus FundsWCMFocIntlGrwIns 19.70 ... 4.2Western AssetCorePlusBdI 12.15 ... NA

Net YTDFund NAV Chg %Ret

Net YTDFund NAV Chg %Ret

Net YTDFund NAV Chg %Ret

Net YTDFund NAV Chg %Ret

Net YTDFund NAV Chg %Ret

Net YTDFund NAV Chg %Ret

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Asmore executives adopt AI technology into their business strategy,

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THEWALL STREET JOURNAL. Friday, February 14, 2020 | B7

SchwabUSLC SCHX 80.65 –0.05 5.0SchwabUSLCGrw SCHG 101.10 0.12 8.8SPDRDJIATr DIA 294.82 –0.30 3.4SPDRS&PMdCpTr MDY 382.26 0.34 1.8SPDRS&P500 SPY 337.06 –0.11 4.7SPDRS&PDiv SDY 108.63 0.07 1.0TechSelectSector XLK 101.52 –0.27 10.7UtilitiesSelSector XLU 69.92 1.11 8.2VanEckGoldMiner GDX 28.32 0.71 –3.3VangdInfoTech VGT 270.09 –0.20 10.3VangdSCVal VBR 137.80 0.06 0.5VangdSCGrwth VBK 208.42 0.46 4.9VangdDivApp VIG 130.23 0.17 4.5VangdFTSEDevMk VEA 43.98 –0.72 –0.2VangdFTSEEM VWO 43.86 –1.06 –1.4VangdFTSEEurope VGK 58.45 –0.66 –0.3VangdFTSEAWxUS VEU 53.62 –0.83 –0.2VangdGrowth VUG 199.13 0.09 9.3VangdHlthCr VHT 196.24 –0.44 2.3VangdHiDiv VYM 94.35 –0.26 0.7VangdIntermBd BIV 88.82 0.06 1.8VangdIntrCorpBd VCIT 92.87 –0.01 1.7VangdLC VV 155.39 –0.05 5.1VangdMC VO 185.60 0.16 4.2VangdMCVal VOE 121.65 –0.21 2.1VangdMBS VMBS 53.51 0.04 0.6VangdRealEst VNQ 98.54 0.60 6.2VangdS&P500ETF VOO 309.76 –0.10 4.7VangdSTBond BSV 81.03 0.04 0.5VangdSTCpBd VCSH 81.49 0.01 0.6VangdSC VB 169.83 0.25 2.5VangdTotalBd BND 85.17 0.09 1.6VangdTotIntlBd BNDX 57.55 0.07 1.7VangdTotIntlStk VXUS 55.41 –0.77 –0.5VangdTotalStk VTI 171.42 –0.04 4.8VangdTotlWrld VT 82.87 –0.36 2.3VangdValue VTV 121.10 –0.26 1.0

Closing Chg YTDETF Symbol Price (%) (%)

CnsmrDiscSelSector XLY 131.89 –0.17 5.2CnsStapleSelSector XLP 64.64 0.59 2.6FinSelSectorSPDR XLF 31.13 –0.03 1.1FTValDivFd FVD 36.86 0.24 2.3HealthCareSelSect XLV 103.85 –0.47 2.0IndSelSectorSPDR XLI 84.75 –0.56 4.0InvscQQQI QQQ 233.97 –0.13 10.0InvscS&P500EW RSP 118.60 –0.09 2.5InvscS&P500LowVol SPLV 61.64 0.70 5.7iShCoreDivGrowth DGRO 43.05 –0.19 2.3iShCoreMSCIEAFE IEFA 65.08 –0.75 –0.2iShCoreMSCIEmgMk IEMG 52.95 –1.30 –1.5iShCoreMSCITotInt IXUS 61.68 –0.69 –0.4iShCoreS&P500 IVV 338.58 –0.12 4.7iShCoreS&PMC IJH 209.63 0.36 1.9iShCoreS&PSC IJR 84.13 0.33 0.3iShS&PTotlUSStkMkt ITOT 76.05 –0.09 4.6iShCoreUSAggBd AGG 114.17 0.07 1.6iShSelectDividend DVY 106.41 –0.30 0.7iShEdgeMSCIMinEAFE EFAV 75.34 –0.38 1.1iShEdgeMSCIMinUSA USMV 69.34 0.48 5.7iShEdgeMSCIUSAMom MTUM 135.95 0.69 8.3iShEdgeMSCIUSAQual QUAL 104.80 –0.24 3.8iShFloatingRateBd FLOT 51.03 –0.10 0.2iShGoldTr IAU 15.07 0.67 3.9iShiBoxx$InvGrCpBd LQD 130.66 –0.07 2.1iShiBoxx$HYCpBd HYG 88.41 0.03 0.5iShIntermCorpBd IGIB 59.04 0.08 1.8iShJPMUSDEmgBd EMB 115.89 0.03 1.2iShMBSETF MBB 108.83 0.08 0.7iShMSCIACWI ACWI 81.36 –0.45 2.7iShMSCIBrazil EWZ 43.67 –1.00 –8.0iShMSCI EAFE EFA 69.32 –0.70 –0.2iShMSCI EAFESC SCZ 61.56 –0.37 –1.2iShMSCIEmgMarkets EEM 44.18 –1.32 –1.5iShMSCIJapan EWJ 58.89 –0.88 –0.6iShNatlMuniBd MUB 115.52 ... 1.4iShPfd&Incm PFF 38.20 –0.08 1.6iShRussell1000Gwth IWF 190.32 –0.08 8.2iShRussell1000 IWB 187.17 –0.07 4.9iShRussell1000Val IWD 138.52 0.02 1.5iShRussell2000Gwth IWO 224.44 0.34 4.8iShRussell2000 IWM 168.55 0.26 1.7iShRussell3000 IWV 197.32 –0.01 4.7iShRussellMid-Cap IWR 61.68 0.15 3.5iShRussellMCValue IWS 96.54 0.02 1.9iShS&P500Growth IVW 208.83 –0.04 7.8iShS&P500Value IVE 131.55 –0.18 1.1iShShortCpBd IGSB 53.96 0.04 0.6iShShortTreaBd SHV 110.50 0.02 0.0iShTIPSBondETF TIP 118.45 0.21 1.6iSh1-3YTreasuryBd SHY 84.86 0.02 0.3iSh7-10YTreasuryBd IEF 113.02 0.09 2.5iSh20+YTreasuryBd TLT 143.92 0.38 6.2iShRussellMCGrowth IWP 161.50 0.27 5.8iShUSTreasuryBdETF GOVT 26.40 0.08 1.8JPMUltShtIncm JPST 50.52 –0.01 0.2PIMCOEnhShMaturity MINT 101.85 0.04 0.3SPDRBlmBarcHYBd JNK 110.11 ... 0.5SPDRGold GLD 148.38 0.57 3.8SchwabIntEquity SCHF 33.64 –0.71 0.0SchwabUSBrdMkt SCHB 80.52 –0.01 4.7SchwabUSDiv SCHD 58.93 –0.32 1.7

Closing Chg YTDETF Symbol Price (%) (%)

Thursday, February 13, 2020

Exchange-Traded Portfolios | WSJ.com/ETFresearch

Largest 100 exchange-traded funds, latest session

HighsAAON AAON 56.53 1.2AMN Healthcare AMN 73.35 0.5Ansys ANSS 293.44 -0.3ASML ASML 318.37 -0.1AccelEnt ACEL 13.33 ...ActIIGlbAcqnWt ACTTW 1.65 22.7ActIIGlbAcqn ACTTU 11.05 4.2ActIIGlbAcqn ACTT 10.44 1.7AddusHomeCare ADUS 104.03 1.2ADDvantage AEY 3.38 3.2Adobe ADBE 377.71 0.1AdvDisposalSvcs ADSW 33.04 0.3AdvDrainageSys WMS 48.51 2.3AdvEnergyInds AEIS 78.21 1.9AdvMicroDevices AMD 55.03 1.2AehrTestSys AEHR 2.45 1.3AerCap AER 64.86 2.8AerojetRocket AJRD 55.86 1.1Agilysys AGYS 37.17 1.8AirProducts APD 256.32 0.3AlexandriaRlEst ARE 174.80 0.1AlgonquinPwr AQN 16.34 1.0AllianzGI PfdA NCZpA 26.59 0.3Alteryx AYX 147.95 -1.5AltraIndlMotion AIMC 38.43 6.4Amedisys AMED 201.85 1.1Ameren AEE 85.85 1.4Ameresco AMRC 22.24 1.3AmericaMovil A AMOV 17.80 0.5AmEqtyLf AEL 33.72 12.5AmericanWoodmark AMWD 116.00 0.2AmerCarMart CRMT 121.88 0.3AnavexLifeSci AVXL 5.34 7.0AnnalyCap NLY 10.44 2.8Aon AON 234.59 1.6AppFolio APPF 139.09 0.3ApplMaterials AMAT 69.44 3.1Arconic ARNC 33.45 0.4Arcosa ACA 47.85 1.9AresMgmt ARES 41.88 1.2AssurantPfdD AIZP 137.02 2.6Assurant AIZ 140.82 2.7

52-Wk %Stock Sym Hi/Lo Chg

AstecIndustries ASTE 46.37 ...AtlCapitalBcshs ACBI 20.00 2.0AtlanticaYield AY 31.14 1.6Atlassian TEAM 155.00 1.1AtriCure ATRC 43.58 0.9ADP ADP 180.99 1.2Avalara AVLR 94.64 -1.5Avalonbay AVB 226.32 0.5AvisBudget CAR 41.67 1.5Avista AVA 51.68 0.9AxcelisTechs ACLS 29.24 0.8AxonEnterprise AAXN 89.16 -0.3AzurePowerGlbl AZRE 13.77 2.5BRP DOOO 56.44 -0.2B.RileyPrMerg BRPM.U 11.35 0.3BWX Tech BWXT 68.75 1.0BadgerMeter BMI 68.75 0.5BeamTherap BEAM 31.80 5.8Bilibili BILI 28.54 0.8Bill.com BILL 64.12 -1.3BioXcelTherap BTAI 25.04 26.2BlackKnight BKI 70.34 1.6BlackstoneMtg BXMT 40.22 0.3BrainstormCell BCLI 6.67 14.4BrightHorizons BFAM 175.00 1.0Bristol-MyersRt BMYr 3.79 10.1BrookfieldMgt BAM 66.80 3.2BuildersFirstSrc BLDR 27.82 3.8BusFirstBcshs BFST 26.51 1.5CHS PfdB CHSCO 28.69 0.2CHS PfdB4 CHSCL 29.43 0.4CableOne CABO 1830.50 1.0CabotMicro CCMP 169.13 -0.4CadenceDesign CDNS 79.59 2.8CaesarsEnt CZR 14.49 0.7Calix CALX 10.26 0.6CamdenProperty CPT 117.60 1.4CasellaWaste CWST 54.15 2.4ChemoCentryx CCXI 49.97 0.1ChesapeakeUtil CPK 101.29 2.4Chipotle CMG 914.98 1.4ChoiceHotels CHH 105.68 ...ChurchillCapCorp.IIWt CCX.WS 2.46 7.0ChurchillDowns CHDN 163.63 0.9Cintas CTAS 300.12 0.3

52-Wk %Stock Sym Hi/Lo Chg

ClearPtNeuro CLPT 6.33 8.7ColliersIntl CIGI 87.54 2.1ConsldWater CWCO 18.67 2.5Volaris VLRS 13.45 0.6Costco COST 318.79 1.0CousinsProperties CUZ 42.38 0.7CrownCastlePfA CCIpA 1451.32 0.8CrownCastle CCI 164.22 0.4CrownHoldings CCK 80.45 1.4Cytokinetics CYTK 16.10 -0.1DeckersOutdoor DECK 201.13 0.6DtscheBkTrII DXB 26.69 0.4DeutscheBank DB 11.13 1.6DexCom DXCM 254.70 2.5DocuSign DOCU 88.48 0.8DominionEner D 86.91 0.5DrReddy'sLab RDY 46.19 2.6DukeEnergy DUK 100.39 3.2DukeRealty DRE 38.00 0.8Dynatrace DT 36.49 -0.6EasterlyGovtProp DEA 25.06 1.0EastGroup EGP 141.97 0.9EldoradoResorts ERI 68.07 2.4Electromed ELMD 12.09 -4.4EllingtonFin EFC 19.05 0.1EllingtonFinPfdA EFCpA 26.19 0.2Endava DAVA 55.50 13.8EnphaseEnergy ENPH 41.59 -0.4Entegris ENTG 59.05 -0.1Envestnet ENV 85.83 2.5Equifax EFX 164.77 5.0Equinix EQIX 636.43 2.0EquityLife ELS 74.57 0.7EsperionTherap ESPR 76.98 5.3ExlService EXLS 77.31 1.8Exponent EXPO 80.07 0.3FGL Wt FG.WS 2.83 -0.7FNB PfdE FNBpE 31.40 0.5FTI Consulting FCN 124.83 0.7Fastenal FAST 38.47 -0.3FidNatlInfo FIS 156.82 4.3FirstAmerFin FAF 65.45 4.7FirstIndRlty FR 46.03 2.2FlirSystems FLIR 59.44 0.8Floor&Decor FND 53.85 -0.2

52-Wk %Stock Sym Hi/Lo Chg

FortressBiotech FBIO 2.98 4.1FortressTransport FTAI 20.41 1.6FortBrandsHome FBHS 73.00 0.2FourCornersProp FCPT 32.00 3.2Franco-Nevada FNV 115.25 0.6FreedomHolding FRHC 16.30 1.2Freshpet FRPT 69.39 1.6GAMCOGlbGoldPfB GGNpB 25.43 0.3GCI LibertyA GLIBA 77.75 0.8GX Acqn A GXGX 10.06 0.1Gallagher AJG 108.25 1.5Generac GNRC 117.44 1.8Genprex GNPX 2.74 51.4Gentherm THRM 49.15 0.2GladstoneLand LAND 13.96 1.5GlobalMedREIT GMRE 15.65 2.0GlobalNetLease GNL 21.57 0.8GlobeLife GL 110.67 1.1Goldfield GV 3.91 4.1GoldmanSachsPfC GSpC 24.14 0.2GooseheadIns GSHD 56.91 3.0Graco GGG 56.55 0.1GrAeroportuario OMAB 65.90 1.6HCA Healthcare HCA 151.97 0.2HannonArmstrong HASI 37.80 0.2HawaiianElec HE 49.90 2.5Headhunter HHR 25.84 3.0HealthcareRealty HR 37.28 0.6HealthcareAmer HTA 33.01 0.6HerculesCapital HTGC 15.26 0.7HertzGlobal HTZ 19.77 4.5HimaxTechs HIMX 5.05 4.1HomeDepot HD 243.60 0.3HormelFoods HRL 48.48 1.4HudsonPacProp HPP 38.20 0.6Humana HUM 381.04 1.7icad ICAD 11.79 15.9IndepRealty IRT 16.85 4.4Ingersoll-Rand IR 146.16 ...Inovalon INOV 21.96 0.2Insulet PODD 207.28 1.8InsAcqnUn INSUU 10.84 0.4Intuit INTU 300.55 -0.3InvRlEst IRET 84.48 2.3InvitatHomes INVH 32.42 1.7iStar STAR 16.00 3.2JD.com JD 42.41 0.9JackHenry JKHY 169.99 -0.1JacobsEngg J 99.65 ...JetBlue JBLU 21.59 2.0KB Home KBH 39.55 1.9KKR RealEstFin KREF 21.48 0.2

52-Wk %Stock Sym Hi/Lo Chg

KeyCorpPfdE KEYpI 31.29 0.3KinderMorgan KMI 21.99 0.6KinsaleCapital KNSL 126.69 1.9Knight-Swift KNX 39.97 0.6KrystalBiotech KRYS 66.85 -1.7LGI Homes LGIH 93.02 0.4LHC Group LHCG 159.48 -0.1LabCpAm LH 196.36 3.9LadderCapital LADR 18.97 -0.1LamResearch LRCX 344.32 2.1LamarAdv LAMR 95.87 0.6LexingtonRealty LXP 11.45 1.6LibertyBroadbandC LBRDK 137.28 0.2Linde LIN 227.85 1.9LithiumAmericas LAC 5.88 -0.7Lowe's LOW 125.27 -0.2lululemon LULU 256.80 ...MGE Energy MGEE 82.16 1.8MKS Instrum MKSI 122.30 2.8MSA Safety MSA 142.34 0.5MSCI MSCI 314.21 1.7Markel MKL 1321.41 0.7Marsh&McLen MMC 119.88 0.5Masimo MASI 184.39 1.2Mastercard MA 337.83 0.5McKesson MCK 169.67 -0.1MidAmApt MAA 144.37 1.1MilestoneSci MLSS 1.90 4.4MolsonCoorsA TAP.A 80.00 27.0MonarchCasino MCRI 57.24 0.5MonolithicPower MPWR 192.78 0.4MonsterBev MNST 69.83 0.6NXP Semi NXPI 139.26 0.6NatlHealthInv NHI 88.16 1.5NatlStorage NSA 37.20 1.1NatureSunshine NATR 10.85 2.8NeoGenomics NEO 34.83 -0.9Nevro NVRO 140.71 -0.6NewMountainFin NMFC 14.44 0.6NYTimes A NYT 39.62 0.7NexPointResidentl NXRT 51.39 1.7NextEraEnergyUn NEEpO 55.69 1.2NextEraEnergy NEE 275.87 1.9NextEraEnergy NEP 59.36 0.9Northwestern NWE 78.93 1.3Novanta NOVT 98.60 0.9NuSTAR PfdB NSpB 24.06 0.4NVIDIA NVDA 273.48 -0.6OaktreeAcqn OAC.U 10.61 ...OneWaterMarine ONEW 17.40 15.2OpenText OTEX 47.54 -0.6OpusBank OPB 28.04 1.6OrionEnergySys OESX 6.30 7.5

52-Wk %Stock Sym Hi/Lo Chg

PAE Wt PAEWW 3.25 -3.5PDF Solutions PDFS 17.88 0.9PNM Resources PNM 55.80 1.2PRA Group PRAA 38.61 1.0Parsons PSN 44.75 -0.4PatrickIndustries PATK 63.80 7.9Pegasystems PEGA 99.36 7.6PennNational PENN 38.70 2.7Penumbra PEN 190.30 2.3PepsiCo PEP 147.13 0.3Phreesia PHR 34.39 3.7PhysiciansRealty DOC 20.48 0.8PinnacleWest PNW 100.22 1.6PiperSandler PIPR 87.45 0.4PlanetFitness PLNT 85.13 -0.2PlumasBancorp PLBC 29.23 1.0PlymouthIndREIT PLYM 20.75 6.0Pool POOL 233.93 0.4PortlandGenElec POR 62.34 2.2PurpleInnovation PRPL 14.83 4.4QTS Realty QTS 60.09 1.0Quidel QDEL 81.99 1.0RaymondJames RJF 98.77 1.5RecroPharma REPH 19.21 2.9RedViolet RDVT 24.00 10.3Redfin RDFN 30.45 18.1RedwoodTrust RWT 17.91 0.7RenewableEnergy REGI 29.08 2.3Repay RPAY 18.55 0.8RepublicSvcs RSG 99.35 0.5ResMed RMD 175.16 1.2RevolutionMed RVMD 32.49 70.0RexfordIndlRealty REXR 51.81 1.6Rexnord RXN 35.64 0.3RingCentral RNG 244.63 3.3SPS Commerce SPSC 60.35 2.9SPX SPXC 53.76 2.0SachemNts2024 SACC 25.50 -0.1Safehold SAFE 56.23 2.1Sea SE 48.40 2.2SelectMedical SEM 25.85 1.5SequansComms SQNS 5.55 7.6ServiceNow NOW 357.00 0.6ServisFirstBcshs SFBS 40.90 1.2SifcoInd SIF 5.62 -3.5SiteOneLandscape SITE 105.50 0.4SleepNumber SNBR 56.99 0.1SmithMicro SMSI 7.15 -2.0SoftwareAcqnWt SAQNW 1.03 2.6SolarEdgeTech SEDG 113.20 -0.6SouthwestAir LUV 58.69 0.1SpartanMotors SPAR 20.70 7.9Splunk SPLK 172.25 0.6

52-Wk %Stock Sym Hi/Lo Chg

StifelFinlPfdB SFpB 28.14 0.5STMicroelec STM 31.98 1.5Strats PG GJR GJR 23.00 0.5SunComms SUI 167.31 -0.2SunLifeFinancial SLF 49.98 -0.1SunnovaEnergy NOVA 16.97 -1.7Switch SWCH 17.74 0.1SyneosHealth SYNH 66.06 1.4Synopsys SNPS 161.93 1.2SynovusFinPfdE SNVpE 27.51 0.4TFI Intl TFII 36.65 6.7TJX TJX 63.51 0.1TKK Symphony TKKS 11.53 -2.8TRI Pointe TPH 17.46 0.5TandemDiabetes TNDM 83.91 2.4TeladocHealth TDOC 113.08 1.8TempurSealy TPX 100.39 -0.2TerraFormPower TERP 20.37 1.1TerrenoRealty TRNO 61.19 1.3TetraTech TTEK 98.62 2.3ThorIndustries THO 87.18 1.6TopBuild BLD 120.71 0.9TransUnion TRU 97.80 2.7Trex TREX 102.88 0.5TylerTech TYL 340.51 -1.3US BancorpPfdA USBpA 904.05 0.4UltraClean UCTT 26.48 0.7Unisys UIS 18.13 4.3UnitedHealth UNH 305.90 -0.4UniversalHealth UHT 130.94 2.5VICI Prop VICI 27.89 0.6VaronisSystems VRNS 93.24 1.6VelocityFinl VEL 14.70 1.5VeriskAnalytics VRSK 171.58 0.8Vicor VICR 55.69 0.9VictoryCapital VCTR 24.83 -3.7VirginGalacticUn SPCE.U 29.50 5.0VirginGalacticWt SPCE.WS 12.14 3.2VirginGalactic SPCE 24.69 2.5VivintSolar VSLR 11.01 0.7VornadoPfdM VNOpM 27.00 0.3WashingtonREIT WRE 32.02 0.9WasteConnections WCN 103.39 2.5Wendy's WEN 22.96 0.1WestPharmSvcs WST 175.11 7.5WesternAssetMort WMC 10.92 ...Winnebago WGO 61.50 -0.5XcelEnergy XEL 69.89 1.1XenonPharms XENE 18.45 2.3Yandex YNDX 48.95 0.1YunhongIntl ZGYHU 10.01 ...ZaiLab ZLAB 61.57 2.9ZealandPharma ZEAL 42.12 9.4

52-Wk %Stock Sym Hi/Lo Chg

Zillow C Z 52.71 2.1Zillow A ZG 52.50 2.0ZimmerBiomet ZBH 159.83 ...Zoetis ZTS 146.26 1.4Zynga ZNGA 6.98 2.5

LowsAmbev ABEV 3.71 -1.6AB InBev BUD 72.90 -0.5AppliedDNA APDN 3.31 3.8AptevoTherap APVO 0.44 -1.9AsiaPacificWire APWC 1.23 -3.9Atrion ATRI 656.70 -2.1AuroraCannabis ACB 1.43 0.7B&G Foods BGS 13.62 -2.2BassettFurniture BSET 10.90 -1.4BellerophonTherap BLPH 3.54 -8.5BiosigTech BSGM 4.02 -3.7BogotaFinl BSBK 11.25 -0.9BrickellBiotech BBI 1.06 -1.8CBL Assoc CBL 0.70 -1.8CHF Solutions CHFS 0.32 -7.0CNX Resources CNX 6.05 0.7CONSOL Energy CEIX 6.87 8.9Caesarstone CSTE 11.13 -5.5CalavoGrowers CVGW 73.82 0.3CapitalOnePfdB COFpP 24.97 -0.1CapitalSouthwest CSWC 20.49 0.2CentennialRsc CDEV 2.63 -4.3ChesapeakeEner CHK 0.48 -2.8CoreLabs CLB 32.54 -1.9Culp CULP 11.70 -0.8DCP Midstream DCP 19.77 -3.9DocumentSecSys DSS 0.20 -14.7DorchesterMnls DMLP 15.12 -1.9EVI Industries EVI 20.24 -13.5electroCore ECOR 0.90 -6.9EmeraldExpo EEX 8.97 -1.7EquitransMdstm ETRN 8.58 -2.6Escalade ESCA 8.78 0.5ExtractionOil XOG 1.02 -9.7FordMotor6%Nts FpC 25.73 1.2Frank'sIntl FI 3.30 -4.1FranklinRscs BEN 24.01 -1.6GreenlandTech GTEC 2.43 -23.1GuangshenRail GSH 13.47 -0.1HTG Molecular HTGM 0.54 -7.5IMAC IMAC 0.93 3.1Ideanomics IDEX 0.48 -9.7ItauCorpBanca ITCB 7.00 -1.9JupaiHoldings JP 1.35 -4.8KBS Fashion KBSF 1.80 -17.1

52-Wk %Stock Sym Hi/Lo Chg

KLX Energy KLXE 3.20 -6.1LaredoPetrol LPI 1.43 -1.9LonestarRscs LONE 1.42 -2.7MarathonOil MRO 10.64 -4.3Marchex MCHX 2.85 -18.4Michaels MIK 4.69 -3.4MohawkGroup MWK 3.80 -5.2MolecularData MKD 2.70 -6.4MuscleMaker GRIL 3.67 -22.8MySize MYSZ 2.12 -5.8NaturalResPtrs NRP 16.21 -4.0NaviosMaritime NMCI 1.37 -5.6NeptuneWellness NEPT 1.79 -12.3NobleMidstream NBLX 20.00 -6.1NoEuroOil NRT 4.60 -3.1NuSkinEnts NUS 29.10 -16.3OneSmartIntl ONE 5.46 -3.5PalatinTech PTN 0.59 -1.1PanhandleOil&Gas PHX 6.75 -0.9Pearson PSO 7.22 -4.4Plantronics PLT 14.26 -0.7Precigen PGEN 3.86 -5.8PriorityTechn PRTH 1.94 -11.1PyxusIntl PYX 4.25 -3.4Qudian QD 2.20 -11.5Qumu QUMU 1.95 -7.8RelivIntl RELV 3.32 -5.1RoyalDutchA RDS.A 50.78 -1.4RyderSystem R 44.76 -10.3SafeguardSci SFE 10.01 0.1SealedAir SEE 34.35 -4.1SenesTech SNES 3.85 -4.4ShinhanFin SHG 31.87 -2.2SilverBowRscs SBOW 3.88 -9.3SiNtxTech SINT 0.76 -8.0StealthBioTher MITO 2.25 -3.4SteelPartners SPLP 10.83 -3.9SummitMidstream SMLP 2.30 -7.2Sunworks SUNW 0.77 -2.8Tanger SKT 13.03 -0.4Tantech TANH 1.34 0.7TaroPharm TARO 72.33 -1.2Tilly's TLYS 7.60 -2.5TurtleBeach HEAR 6.90 -10.6Valhi VHI 1.54 -0.6VoltInfoSci VOLT 2.20 -4.3WashingtonPrime WPG 2.70 -3.4Weidai WEI 2.11 4.6Welbilt WBT 14.10 -0.9XerisPharm XERS 3.84 2.5XtantMedical XTNT 1.20 -5.3YunhongIntl ZGYHU 9.99 ...ZomedicaPharm ZOM 0.12 3.0

52-Wk %Stock Sym Hi/Lo Chg

Thursday, February 13, 2020

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Americanand Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latestsession. % CHG-Daily percentage change from the previous trading session.

NetStock SymClose Chg

IdexxLab IDXX 285.05 1.77IHS Markit INFO 80.27 -0.25ING Groep ING 11.66 -0.12Invesco IVZ 18.01 -0.57IPG Photonics IPGP 149.97 2.90IQVIA IQV 165.79 -0.32ITT ITT 69.27 -0.78IcahnEnterprises IEP 66.34 -0.18Icon ICLR 175.28 0.36IDEX IEX 174.69 -2.12IllinoisToolWks ITW 189.07 -0.60Illumina ILMN291.38 -1.90ImperialOil IMO 23.93 -0.20Incyte INCY 78.05 2.22Infosys INFY 11.10 -0.12

s Ingersoll-Rand IR 145.62 0.03Ingredion INGR 97.35 -0.45

s Insulet PODD 205.41 3.60Intel INTC 67.44 -0.02ICE ICE 94.19 -0.20InterContinentl IHG 62.76 -1.01IBM IBM 154.31 -1.00IntlFlavors IFF 136.74 -2.65IntlPaper IP 43.45 -1.05Interpublic IPG 25.06 0.08InterXion INXN 89.36 0.05

s Intuit INTU 297.84 -0.81IntuitiveSurgical ISRG 600.35 7.51

s InvitatHomes INVH 32.35 0.53IonisPharma IONS 60.06 -0.45iQIYI IQ 27.18 0.11IronMountain IRM 33.36 1.57ItauUnibanco ITUB 7.89 -0.06

J K Ls JD.com JD 42.01 0.37JPMorganChase JPM 137.88 -0.12

s JackHenry JKHY 168.95 -0.17s JacobsEngg J 99.23 -0.03JamesHardie JHX 20.56 -0.92JazzPharma JAZZ 141.93 -1.11JefferiesFin JEF 23.36 0.11

s JetBlue JBLU 21.56 0.43J&J JNJ 150.09 -1.00JohnsonControls JCI 41.13 -0.66JonesLang JLL 170.11 -0.19JuniperNetworks JNPR 24.94 0.51KB Fin KB 36.42 -0.53KKR KKR 33.51 0.15KLA KLAC 178.72 2.75KSCitySouthernKSU 173.46 2.68Kellogg K 67.14 0.96KeurigDrPepperKDP 28.58 -0.06KeyCorp KEY 19.72 0.01KeysightTechs KEYS 96.61 -1.86KilroyRealty KRC 87.77 0.86KimberlyClark KMB 144.74 0.45KimcoRealty KIM 18.93 0.16

s KinderMorganKMI 21.94 0.13KinrossGold KGC 5.14 0.14KirklandLakeGoldKL 36.69 0.52

s Knight-Swift KNX 39.60 0.22Kohl's KSS 44.64 -0.72KoninklijkePhil PHG 48.43 -0.58KoreaElcPwr KEP 10.93 -0.10KraftHeinz KHC 27.77 -2.27Kroger KR 28.63 0.10L Brands LB 24.28 -0.44Line LN 48.88 0.07LKQ LKQ 33.85 0.11LPL Financial LPLA 95.05 -0.65L3HarrisTech LHX 227.01 -3.03

s LabCpAm LH 194.73 7.22s LamResearch LRCX 341.58 6.96s LamarAdv LAMR 95.58 0.56LambWeston LW 95.09 0.58LasVegasSands LVS 69.31 -1.82Lear LEA 125.39 -1.12Leidos LDOS 113.10 2.10Lennar A LEN 69.76 -0.60Lennar B LEN.B 55.19 -0.36LennoxIntl LII 241.64 0.28LeviStrauss LEVI 20.48 0.08LibertyBroadbandA LBRDA 135.44 0.52

s LibertyBroadbandC LBRDK 136.81 0.31LibertyGlobal A LBTYA 21.11 -0.33LibertyGlobal C LBTYK 20.25 -0.21

LibertyFormOne C FWONK 47.19 0.10LibertyFormOne A FWONA 44.65 -0.10LibertySirius A LSXMA 49.30 -0.07LibertySirius C LSXMK 49.73 -0.14EliLilly LLY 141.80 -0.97LincolnNational LNC 61.17 0.19

s Linde LIN 221.26 4.06LiveNationEnt LYV 73.15 -0.95LloydsBanking LYG 3.01 0.04LockheedMartin LMT 434.70 -1.90Loews L 54.06 0.13LogitechIntl LOGI 44.05 -1.81

s Lowe's LOW 124.77 -0.26s lululemon LULU 253.86 -0.08Lumentum LITE 90.44 -2.41Lyft LYFT 47.03 -1.43LyondellBasell LYB 83.49 -2.12

M NM&T Bank MTB 170.59 1.00MDU Rscs MDU 31.63 0.19MGM Resorts MGM 31.80 -1.86

s MKS Instrum MKSI 120.84 3.29MPLX MPLX 23.81 -0.14

s MSCI MSCI 313.40 5.22MadisonSquGardenMSG 307.11 -0.22MagellanMid MMP 59.23 -0.31MagnaIntl MGA 52.08 -0.69ManulifeFin MFC 19.72 -0.39

t MarathonOil MRO 11.11 -0.50MarathonPetrolMPC 59.50 0.57

s Markel MKL 1319.73 9.76MarketAxess MKTX 338.15 2.65Marriott MAR 146.72 -4.06

s Marsh&McLenMMC 119.37 0.62MartinMariettaMLM 262.68 2.68MarvellTech MRVL 25.22 -0.26Masco MAS 46.49 -0.57

s Masimo MASI 183.96 2.20s Mastercard MA 335.84 1.68MatchGroup MTCH 75.21 -0.29MaximIntProductsMXIM 64.30 -0.17McCormickVtg MKC.V166.25 2.67McCormick MKC 167.08 2.04McDonalds MCD 217.42 -0.04

s McKesson MCK 167.91 -0.11MedicalProp MPW 23.61 0.25Medtronic MDT 116.83 0.34MelcoResorts MLCO 22.10 -0.45MellanoxTech MLNX 120.78 0.17MercadoLibre MELI 718.53 18.71Merck MRK 81.97 -1.28MetLife MET 52.38 -0.09MettlerToledoMTD 769.48 -3.31MicrochipTechMCHP 110.37 0.67MicronTech MU 59.33 0.06Microsoft MSFT 183.71 -1.00

s MidAmApt MAA 144.14 1.61Middleby MIDD 115.21 -0.78MitsubishiUFJ MUFG 5.18 -0.02MizuhoFin MFG 2.93 -0.02MobileTeleSysMBT 10.65 -0.07Moderna MRNA 19.05 0.04MohawkInds MHK 132.64 -0.54MolinaHealthcareMOH 145.58 -0.15MolsonCoorsB TAP 55.36 -0.14

s MolsonCoorsA TAP.A 80.00 17.00Mondelez MDLZ 59.03 0.08MongoDB MDB 169.91 -0.68

s MonolithicPowerMPWR 191.43 0.70s MonsterBev MNST 69.69 0.44Moody's MCO 272.77 -0.64MorganStanleyMS 55.93 -0.25Morningstar MORN 157.10 0.78Mosaic MOS 19.48 -0.87MotorolaSol MSI 184.12 -0.55Mylan MYL 21.64 -0.52NICE NICE 177.13 0.22NRG Energy NRG 39.56 0.32NVR NVR 4021.75 44.97

s NXP Semi NXPI 138.69 0.86Nasdaq NDAQ 114.40 0.34NationalGrid NGG 66.56 -0.04NatlOilwell NOV 23.34 -0.57NatlRetailPropNNN 56.26 0.43Natura&Co NTCO 22.36 -0.12NetApp NTAP 55.18 -5.64Netease NTES 354.33 6.02Netflix NFLX 381.40 1.39

NetStock SymClose Chg

NetStock SymClose Chg s Pool POOL228.14 0.96

PostHoldings POST 107.31 1.06PrincipalFin PFG 55.99 -0.52Procter&Gamble PG 124.96 1.51Progressive PGR 83.86 0.62Prologis PLD 96.47 -0.32Proofpoint PFPT 126.07 -0.03ProsperityBcshs PB 73.89 0.56PrudentialFin PRU 95.57 -0.38Prudential PUK 38.47 -0.40PublicServiceEnt PEG 58.36 0.15PublicStorage PSA 228.56 1.31PulteGroup PHM 46.69 -0.01Qiagen QGEN 36.73 0.67Qorvo QRVO 109.17 -2.56Qualcomm QCOM 90.03 -1.69QuestDiag DGX 112.16 1.01

R SRELX RELX 26.98 0.43RPM RPM 75.35 0.06RalphLauren RL 122.98 -0.71

s RaymondJamesRJF 98.76 1.50Raytheon RTN 226.76 -3.00RealtyIncome O 78.79 0.50ReataPharm RETA 230.02 3.39RegencyCtrs REG 62.83 0.52RegenPharm REGN 398.81 -7.49RegionsFin RF 16.60 0.13ReinsGrp RGA 153.56 0.71RelianceSteel RS 116.38 -0.59RenaissanceReRNR 200.85 2.17

s RepublicSvcs RSG 99.01 0.54s ResMed RMD 174.88 2.12RestaurantBrandsQSR 66.40 0.18ReynoldsCnsmr REYN 31.29 0.44

s RingCentral RNG 242.85 7.70RioTinto RIO 54.87 -0.41RobertHalf RHI 60.40 -0.72Rockwell ROK 201.15 -4.70RogersComm BRCI 49.63 -0.29Roku ROKU 139.05 0.76Rollins ROL 39.81 0.15RoperTech ROP 388.39 -2.67RossStores ROST 120.60 0.54RoyalBkCanadaRY 81.61 0.08RoyalBkScotlandRBS 5.95 0.03

NetStock SymClose Chg

RoyalCaribbeanRCL 113.62 -3.61t RoyalDutchA RDS.A 50.99 -0.72RoyalDutchB RDS.B 51.71 -1.03RoyalGold RGLD 104.22 -1.12Ryanair RYAAY 91.61 -0.05SAP SAP 137.45 -0.71S&P Global SPGI 301.35 -2.48SBA Comm SBAC 289.78 -3.03SEI Investments SEIC 68.86 -0.03SK Telecom SKM 21.33 0.03SLGreenRealty SLG 94.66 -0.17SS&C Tech SSNC 65.58 0.45StoreCapital STOR 39.30 0.25SVB Fin SIVB 265.95 0.85Salesforce.com CRM 188.64 -0.82Sanofi SNY 50.00 -0.62SantanderCons SC 27.06 0.37SareptaTherap SRPT 125.03 -0.41Sasol SSL 15.73 -0.33Schlumberger SLB 34.67 -0.38SchwabC SCHW 47.29 -0.32ScottsMiracleGro SMG 120.00 0.94

s Sea SE 47.95 1.02Seagate STX 55.80 -0.42SeattleGenetics SGEN 118.22 0.15SempraEnergy SRE 159.00 0.11SensataTechs ST 49.31 -0.48ServiceCorp SCI 48.64 0.12

s ServiceNow NOW 351.81 2.01ShawComm B SJR 19.54 -0.15SherwinWilliams SHW 579.76 -0.38

t ShinhanFin SHG 31.99 -0.71Shopify SHOP532.97 1.72Sibanye-Stillwater SBGL 10.84 0.67SignatureBank SBNY 144.40 -0.50SimonProperty SPG 138.66 1.59SiriusXM SIRI 7.23 0.02SkechersUSA SKX 38.76 -0.50Skyworks SWKS 122.59 -0.46SlackTech WORK 26.55 0.74SmithAO AOS 44.00 -0.29Smith&Nephew SNN 47.85 0.04Smucker SJM 107.72 -0.87Snap SNAP 17.59 0.19SnapOn SNA 155.34 -1.66Sony SNE 69.60 -1.17Southern SO 69.54 0.92

NetStock SymClose Chg

SoCopper SCCO 39.46 -0.05s SouthwestAir LUV 58.54 0.06SpiritAeroSys SPR 68.94 -0.05

s Splunk SPLK 170.93 1.09Spotify SPOT 141.50 -5.58Sprint S 8.67 0.07Square SQ 80.99 0.99StanleyBlackDck SWK 167.88 -0.49Starbucks SBUX 89.93 1.36StarsGroup TSG 23.66 -0.33StarwoodProp STWD 25.88 0.01StateStreet STT 78.85 -1.58SteelDynamics STLD 29.11 -0.29Steris STE 167.00 -0.83

s STMicroelec STM 31.77 0.48StoneCo STNE 42.01 1.22Stryker SYK 217.41 1.33SumitomoMits SMFG 7.06 -0.12

s SunComms SUI 165.97 -0.33s SunLifeFinancial SLF 49.18 -0.05SuncorEnergy SU 29.51 -0.04Suzano SUZ 9.48 0.28SynchronyFin SYF 33.82 0.24

s SyneosHealth SYNH 65.89 0.90Synnex SNX 143.99 -0.17

s Synopsys SNPS 161.37 1.85Sysco SYY 77.94 0.48

T U VTAL Education TAL 58.78 -0.40TC Energy TRP 55.61 -0.09TCF Financial TCF 43.77 0.61TD Ameritrade AMTD 49.59 -0.35TE Connectivity TEL 94.54 -0.38Telus TU 41.12 -0.65TFS Fin TFSL 22.01 0.22TIM Part TSU 20.02 -0.01

s TJX TJX 63.36 0.07T-MobileUS TMUS 95.14 -0.53TRowePrice TROW 136.42 -2.06TaiwanSemi TSM 59.33 -0.30TakeTwoSoftware TTWO 112.21 -1.81TakedaPharm TAK 19.66 -0.43Tapestry TPR 28.83 -0.64TargaResources TRGP 36.51 -0.37Target TGT 118.28 0.17TataMotors TTM 11.83 -0.20

NetStock SymClose Chg

TechnipFMC FTI 17.36 -0.20TeckRscsB TECK 14.01 -0.10

s TeladocHealth TDOC 112.02 2.02TeledyneTech TDY 392.02 6.46Teleflex TFX 381.78 4.39Ericsson ERIC 9.08 -0.13TelefonicaBrasVIV 13.78 -0.07Telefonica TEF 6.74 -0.14TelekmIndonesia TLK 26.86 -0.9210xGenomics TXG 86.77 0.11Tenaris TS 20.98 -0.21Teradyne TER 72.58 -0.52Tesla TSLA 804.00 36.71TevaPharm TEVA 12.57 -0.88TexasInstruments TXN 132.81 0.39TexasPacLand TPL 783.50 -4.25Textron TXT 48.00 -1.18ThermoFisherSci TMO 335.59 1.02ThomsonReuters TRI 81.61 0.153M MMM 159.76 -2.57Tiffany TIF 134.36 0.05Toll Bros TOL 48.11 -0.35Toro TTC 82.68 0.02TorontoDomBk TD 56.52 -0.32Total TOT 49.19 -0.62ToyotaMotor TM 141.10 -1.33TractorSupply TSCO 98.26 -0.27TradeDesk TTD 306.57 1.78Tradeweb TW 47.32 0.43TransDigm TDG 655.67 5.44

s TransUnion TRU 97.10 2.59Travelers TRV 136.88 1.17Trimble TRMB 44.90 0.79Trip.com TCOM 33.69 -0.62TruistFinl TFC 54.82 0.83Twilio TWLO 128.67 2.75Twitter TWTR 37.16 0.37

s TylerTech TYL 334.17 -4.26TysonFoods TSN 81.18 0.82UBS Group UBS 13.21 -0.19UDR UDR 49.61 0.32UGI UGI 41.62 -0.31US Foods USFD 40.44 -0.03Uber UBER 40.09 -1.16Ubiquiti UI 145.85 0.07UltaBeauty ULTA 297.09 -2.21UltraparPart UGP 5.62 -0.15

NetStock SymClose Chg

UnderArmour C UA 15.13 -0.32UnderArmour AUAA 16.76 -0.28Unilever UN 59.45 -0.22Unilever UL 60.53 -0.10UnionPacific UNP 184.64 -0.22UnitedAirlines UAL 80.99 -1.21UnitedMicro UMC 2.81 ...UPS B UPS 105.24 -0.30UnitedRentalsURI 160.08 1.21US Bancorp USB 55.18 0.37UnitedTech UTX 153.06 -1.38

s UnitedHealth UNH 302.20 -1.28UnivDisplay OLED 181.44 -3.31UniversalHealthBUHS 141.50 1.19UnumGroup UNM 30.18 -0.01VEREIT VER 9.85 0.06VF VFC 84.05 0.12

s VICI Prop VICI 27.89 0.17VailResorts MTN 248.08 2.42Vale VALE 11.93 -0.19ValeroEnergy VLO 83.70 -1.34VarianMed VAR 146.91 -0.47VeevaSystems VEEV 153.95 -0.52Ventas VTR 58.55 -0.13VeriSign VRSN 209.81 1.52

s VeriskAnalytics VRSK 170.67 1.39Verizon VZ 58.65 0.42VertxPharm VRTX 240.09 -2.12ViacomCBS A VIACA 38.69 -0.55ViacomCBS B VIAC 34.98 -0.31Vipshop VIPS 14.34 -0.51Visa V 207.40 0.26VistraEnergy VST 23.07 0.14VMware VMW 159.01 0.14Vodafone VOD 19.67 -0.06VornadoRealtyVNO 67.70 0.34VoyaFinancial VOYA 62.54 1.04VulcanMatls VMC 145.08 -0.08

W X Y ZWABCO WBC 135.95 -0.13WEC Energy WEC 101.21 1.09WEX WEX 228.62 8.90W.P.Carey WPC 85.37 0.63WPP WPP 64.01 0.01Wabtec WAB 77.49 -1.29WalgreensBootsWBA 53.57 -0.90

NetStock SymClose Chg

Walmart WMT 117.44 1.59s WasteConnectionsWCN 102.80 2.51WasteMgt WM 124.23 -1.38Waters WAT 220.58 -3.79Watsco B WSOB 174.26 -2.18Watsco WSO 174.20 -0.32Wayfair W 82.16 -13.52WellsFargo WFC 48.12 0.33Welltower WELL 87.70 1.84

s WestPharmSvcsWST 174.38 12.18WesternDigitalWDC 69.58 -0.77WesternMidstrmWES 15.87 -0.40WesternUnionWU 26.06 -0.07WestlakeChemWLK 66.82 -0.10WestpacBankingWBK 17.03 -0.01WestRock WRK 40.75 -0.73WeyerhaeuserWY 30.25 0.50WheatonPrecMetWPM 29.01 0.14Whirlpool WHR 152.03 -0.47Williams WMB 21.62 0.07WillisTowers WLTW 212.80 0.08Wipro WIT 3.79 -0.02Wix.com WIX 146.74 1.74Woodward WWD 119.75 0.74WooriFin WF 26.11 -0.51Workday WDAY 194.67 0.27WynnResorts WYNN 133.62 -3.20XP XP 41.36 0.45XPO Logistics XPO 94.51 -0.15

s XcelEnergy XEL 69.82 0.79Xerox XRX 38.21 0.02Xilinx XLNX 90.41 -0.76Xylem XYL 87.05 -2.08

s Yandex YNDX 48.62 0.07YumBrands YUM 105.03 0.16YumChina YUMC 45.01 -0.41ZTO Express ZTO 24.36 -0.29ZayoGroup ZAYO 34.92 0.01ZebraTech ZBRA 233.32 -18.67Zendesk ZEN 89.53 0.65

s Zillow C Z 51.71 1.04s Zillow A ZG 51.63 1.01s ZimmerBiomet ZBH 158.73 0.03ZionsBancorp ZION 46.44 0.33

s Zoetis ZTS 144.94 1.96ZoomVideo ZM 89.86 1.58Zscaler ZS 61.90 1.42

s Zynga ZNGA 6.92 0.17

NetStock SymClose Chg

Continued From Page B6

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REQUEST FOR PROPOSALThe Ministry of External Relations of theFederative Republic of Brazil through itsFinancial Office in New York, is issuing, for thepurpose of Brazilian Law, a Request for Proposal(RFP) on February 14th, 2020, to procure theservices of a Vendor to provide the insurance andto administer the insurance plans offered by theMinistry of External Relations to its personnel.The participants in the Brazilian ForeignService’s Medical, Dental, Life Insurance andAccidental Death and Dismemberment (AD&D)Plans reside throughout the world. The vendormust be able to insure all four plans worldwide.The insuring Vendor for the medical, dental, lifeinsurance and AD&D plans must respond tothe RFP directly. Additional information may beobtained at www.efny.org

Special Bidding CommitteeBrazilian Financial Office

1180 Avenue of the Americas, 17th FloorNew York, NY 10036-8401

Neurocrine NBIX 106.45 -1.17NewOrientalEduc EDU 138.85 0.37NewResidInvt NRZ 17.50 0.04

s NYTimes A NYT 39.27 0.28NewellBrands NWL 19.52 -0.17Newmont NEM 44.01 0.12NewsCorp A NWSA 14.40 -0.04NewsCorp B NWS 14.81 0.01

s NextEraEnergyNEE 275.47 5.21NielsenHoldingsNLSN 21.60 -0.20Nike NKE 103.37 0.37NiSource NI 30.19 0.36NobleEnergy NBL 19.60 0.11Nokia NOK 4.34 -0.07NomuraHoldingsNMR 5.13 -0.06Nordson NDSN 177.62 -0.89Nordstrom JWN 39.40 -0.32NorfolkSouthernNSC 210.49 -0.43NorthernTrustNTRS 101.21 -1.22NorthropGrumNOC 368.00 0.27NortonLifeLockNLOK 20.76 0.15NorwegCruise NCLH 53.43 -0.78Novartis NVS 97.77 -1.24NovoNordisk NVO 62.74 -0.60Novocure NVCR 92.92 0.41NuanceComms NUAN 22.83 0.36Nucor NUE 47.95 -0.42Nutanix NTNX 35.72 -0.32Nutrien NTR 42.75 -0.73

s NVIDIA NVDA 270.78 -1.76

O P QOGE Energy OGE 45.77 -0.06ONEOK OKE 76.22 -0.19OReillyAuto ORLY 392.60 0.13OccidentalPetrolOXY 42.04 -0.45Okta OKTA 135.31 -2.27OldDomFreightODFL 222.98 0.11OldRepublic ORI 23.40 0.13OmegaHealthcareOHI 43.71 0.45Omnicom OMC 79.53 0.68ON Semi ON 21.63 0.24OneMain OMF 46.99 0.20

s OpenText OTEX 47.18 -0.30Oracle ORCL 55.31 -0.42Orange ORAN 14.31 0.34Orix IX 88.08 -0.72OwensCorningOC 64.44 0.55PG&E PCG 16.76 -0.11PNC Fin PNC 155.32 0.11POSCO PKX 46.21 -0.87PPD PPD 31.86 -0.39PPG Ind PPG 120.46 -1.90PPL PPL 36.28 ...PRA HealthSci PRAH 110.16 -0.02PTC PTC 86.94 -0.28PVH PVH 89.28 -0.61Paccar PCAR 74.83 -1.73PackagingCpAm PKG 99.98 -1.77PagSeguroDig PAGS 34.43 1.18PaloAltoNtwks PANW 245.61 0.89ParkerHannifin PH 213.03 -0.88Paychex PAYX 88.60 0.63PaycomSoftware PAYC 303.29 6.93Paylocity PCTY 146.37 3.57PayPal PYPL 120.51 1.95

s Pegasystems PEGA 97.67 6.88Peloton PTON 28.85 0.51PembinaPipeline PBA 39.68 -0.02Pentair PNR 44.64 -0.08

s Penumbra PEN 189.69 4.18People'sUtdFin PBCT 16.32 0.08

s PepsiCo PEP 146.47 0.39PerformanceFood PFGC 53.39 -0.22PerkinElmer PKI 95.99 -0.51Perrigo PRGO 57.96 -1.79PetroChina PTR 44.53 -1.09PetroleoBrasil PBR 14.63 -0.29PetroleoBrasilA PBR.A 13.62 -0.15Pfizer PFE 36.93 -0.81PhilipMorris PM 88.82 0.92Phillips66 PSX 90.34 -0.80PilgrimPride PPC 26.60 0.25Pinduoduo PDD 37.42 0.61

s PinnacleWest PNW 100.22 1.57Pinterest PINS 23.54 -0.40PioneerNatRscs PXD 140.04 2.43PlainsAllAmPipe PAA 16.20 -0.04

s PlanetFitness PLNT 84.50 -0.15

NEW HIGHS AND LOWS WSJ.com/newhighs

NY

B8 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

ConsumerRates andReturns to Investor

Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com

U.S. consumer ratesA consumer rate against itsbenchmark over the past year

1.00

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3.00

4.00

5.00%

2019M A M J J A S O N D J

2020F

t

5-year adjustable-rate mortgage

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t

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Selected ratesFive-yearARM,Rate

Bankrate.comavg†: 3.54%CreditUnion ofNewJersey 2.38%Ewing, NJ 609-538-4061

Proponent Federal CreditUnion 2.63%Nutley, NJ 973-338-1133

HanscomFederal CreditUnion 2.88%HanscomAFB,MA 800-656-4328

SanDiegoCountyCreditUnion 2.88%SanDiego, CA 877-732-2848

WebsterBank 2.88%Hartford, CT 888-493-2783

Yield/Rate (%) 52-WeekRange (%) 3-yr chgInterest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)

Federal-funds rate target 1.50-1.75 1.50-1.75 1.75 l 2.25 1.00Prime rate* 4.75 4.75 4.75 l 5.50 1.00Libor, 3-month 1.69 1.73 1.69 l 2.69 0.65Moneymarket, annual yield 0.50 0.50 0.50 l 0.78 0.19Five-year CD, annual yield 1.34 1.39 1.34 l 2.04 0.1030-yearmortgage, fixed† 3.62 3.65 3.60 l 4.44 -0.4415-yearmortgage, fixed† 3.15 3.16 3.14 l 3.85 -0.11Jumbomortgages, $510,400-plus† 3.63 3.76 3.63 l 4.71 -0.70Five-year adjmortgage (ARM)† 3.54 3.36 3.32 l 4.78 0.22New-car loan, 48-month 4.48 4.50 4.41 l 4.81 1.31Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largestbanks.† Excludes closing costs.

Sources: FactSet; Dow JonesMarket Data; Bankrate.com

BenchmarkYieldsandRatesTreasury yield curveYield to maturity of current bills,notes and bonds

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1.00

2.00

3.00

4.00%

1month(s)

3 6 1years

2 3 5 710 30

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Forex RaceYen, euro vs. dollar; dollar vs.major U.S. trading partners

–8

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4

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2019 2020

Euros

Yens

WSJ Dollar indexs

Sources: Tradeweb ICEU.S. Treasury Close; Tullett Prebon; DowJonesMarketData

International Stock IndexesLatest YTD

Region/Country Index Close Net chg % chg % chg

World TheGlobalDow 3281.85 –13.15 –0.40 0.9

DJGlobal Index 443.90 –0.88 –0.20 2.3

DJGlobal exU.S. 262.80 –0.83 –0.32 –0.3

Americas DJAmericas 792.83 –0.82 –0.10 4.2

Brazil SaoPauloBovespa 115662.40 –1011.73 –0.87 0.01

Canada S&P/TSXComp 17821.17 –11.68 –0.07 4.4

Mexico S&P/BMV IPC 45005.12 –333.25 –0.74 3.4

Chile Santiago IPSA 3319.49 –5.76 –0.17 –0.5

EMEA StoxxEurope600 431.08 –0.08 –0.02 3.7

Eurozone EuroStoxx 418.70 –0.29 –0.07 3.7

Belgium Bel-20 4182.78 –1.49 –0.04 5.7

Denmark OMXCopenhagen20 1234.64 –2.57 –0.21 8.7

France CAC40 6093.14 –11.59 –0.19 1.9

Germany DAX 13745.43 –4.35 –0.03 3.7

Israel TelAviv 1730.11 –21.68 –1.24 2.8

Italy FTSEMIB 24892.15 30.87 0.12 5.9

Netherlands AEX 629.14 0.12 0.02 4.1

Russia RTS Index 1543.50 –13.94 –0.90 –0.3

SouthAfrica FTSE/JSEAll-Share 57835.69 91.55 0.16 1.3

Spain IBEX35 9909.80 –30.60 –0.31 3.8

Sweden OMXStockholm 725.35 0.69 0.10 6.5

Switzerland SwissMarket 11092.35 3.11 0.03 4.5

Turkey BIST 100 120540.53 491.80 0.41 5.3

U.K. FTSE 100 7452.03 –82.35 –1.09 –1.2

U.K. FTSE250 21673.90 –119.58 –0.55 –1.0

Asia-PacificAustralia S&P/ASX200 7103.20 14.97 0.21 6.3

China Shanghai Composite 2906.07 –20.83 –0.71 –4.7

HongKong HangSeng 27730.00 –93.66 –0.34 –1.6

India S&PBSESensex 41459.79 –106.11 –0.26 0.5

Japan Nikkei StockAvg 23827.73 –33.48 –0.14 0.7

Singapore Straits Times 3220.09 –3.28 –0.10 –0.1

SouthKorea Kospi 2232.96 –5.42 –0.24 1.6

Taiwan TAIEX 11791.78 17.59 0.15 –1.7

Thailand SET 1532.77 –7.07 –0.46 –3.0Sources: FactSet; DowJonesMarketData

MajorU.S. Stock-Market IndexesLatest 52-Week % chg

High Low Close Net chg % chg High Low %chg YTD 3-yr. ann.

DowJones

Industrial Average 29535.40 29345.93 29423.31 -128.11 -0.43 29551.42 24815.04 15.7 3.1 13.0TransportationAvg 11014.31 10894.95 10994.14 -9.31 -0.08 11304.97 9734.68 4.3 0.9 5.1UtilityAverage 948.43 938.06 947.38 9.26 0.99 947.38 735.43 28.8 7.8 12.2Total StockMarket 34595.00 34327.06 34489.60 -28.77 -0.08 34518.37 28240.94 21.4 4.4 12.5Barron's 400 739.91 733.76 738.59 0.99 0.13 746.64 638.79 6.4 0.9 5.9

NasdaqStockMarketNasdaqComposite 9748.32 9650.02 9711.97 -13.99 -0.14 9725.96 7333.02 30.8 8.2 19.0Nasdaq 100 9636.41 9532.74 9595.70 -17.50 -0.18 9613.20 6978.02 36.6 9.9 22.2

S&P500 Index 3385.09 3360.52 3373.94 -5.51 -0.16 3379.45 2743.07 22.9 4.4 13.2MidCap400 2100.44 2079.65 2097.29 5.94 0.28 2100.34 1810.50 10.9 1.7 6.7SmallCap600 1024.89 1014.13 1023.47 3.75 0.37 1041.03 888.72 6.5 0.2 6.3

Other IndexesRussell 2000 1696.54 1680.38 1693.74 4.36 0.26 1705.22 1456.04 9.6 1.5 6.7NYSEComposite 14132.88 14049.13 14099.04 -37.94 -0.27 14183.20 12264.49 13.3 1.3 7.2Value Line 550.66 546.94 549.79 -0.76 -0.14 562.05 490.20 2.9 -0.4 1.7NYSEArcaBiotech 5265.20 5224.68 5232.06 -24.68 -0.47 5261.79 4098.37 6.3 3.2 15.9NYSEArcaPharma 664.19 660.12 660.32 -7.82 -1.17 670.32 564.11 13.8 1.0 10.1KBWBank 109.67 108.79 109.56 0.04 0.04 114.12 89.30 12.8 -3.4 5.2PHLX§Gold/Silver 103.97 102.54 103.14 1.02 1.00 107.17 66.14 38.4 -3.5 3.0PHLX§Oil Service 65.60 64.20 64.69 -0.71 -1.08 102.39 59.66 -32.7 -17.4 -29.0PHLX§Semiconductor 1974.58 1942.81 1960.34 1.52 0.08 1960.34 1296.18 45.8 6.0 26.6CboeVolatility 15.44 14.00 14.15 0.41 2.98 24.59 11.54 -12.8 2.7 8.5

NasdaqPHLX Sources: FactSet; DowJonesMarketData

LateTradingMost-activeandbiggestmoversamongNYSE,NYSEArca,NYSEAmer.andNasdaq issues from4p.m. to6:30p.m.ETas reportedbyelectronictradingservices, securitiesdealers and regional exchanges.Minimumsharepriceof$2andminimumafter-hoursvolumeof50,000shares.

Most-active issues in late tradingVolume AfterHours

Company Symbol (000) Last Net chg % chg High Low

EnergyTransfer ET 10,819.1 12.75 -0.06 -0.47 12.88 12.75

YamanaGold AUY 8,765.5 3.96 -0.04 -1.00 4.06 3.93

SPDRS&P500 SPY 5,413.6 337.30 0.24 0.07 337.59 336.97

NIOADR NIO 5,398.2 4.00 -0.03 -0.74 4.03 3.99

RokuClA ROKU 4,788.9 146.31 7.26 5.22 157.00 131.27

BankofAmerica BAC 3,538.8 34.91 ... unch. 35.00 34.91

Enterprise Pdts Partners EPD 3,511.3 26.11 0.02 0.08 26.14 26.09

VerizonCommunications VZ 2,956.9 58.67 0.02 0.03 58.79 58.42

Percentage gainers…ExpediaGroup EXPE 1,054.1 122.00 11.41 10.32 124.44 109.01

SVMK SVMK 110.0 19.95 1.50 8.13 19.98 18.45

Immunogen IMGN 58.2 5.75 0.39 7.28 5.84 5.30

DexCom DXCM 76.4 267.50 15.29 6.06 268.79 250.00

GoDaddyClA GDDY 150.7 75.00 4.13 5.83 75.00 70.86

...And losersLivePerson LPSN 150.7 37.25 -7.73 -17.19 44.98 36.55

CarGurusClA CARG 193.1 28.29 -5.81 -17.04 34.10 27.30

AristaNetworks ANET 172.3 214.50 -23.12 -9.73 242.00 212.60

Yelp YELP 174.1 34.56 -1.94 -5.32 36.90 32.55

Datadog DDOG 598.7 46.20 -2.30 -4.74 51.00 44.50

TradingDiaryVolume,Advancers, Decliners

NYSE NYSEAmer.

Total volume* 815,987,262 17,039,465

Adv. volume* 341,016,034 9,948,475

Decl. volume* 465,999,996 6,839,647

Issues traded 3,019 282

Advances 1,440 132

Declines 1,484 138

Unchanged 95 12

Newhighs 220 15

New lows 46 6

ClosingArms† 1.36 0.57

Block trades* 5,247 135

Nasdaq NYSEArca

Total volume*2,273,363,765 217,260,206

Adv. volume*1,228,461,596 77,435,191

Decl. volume*1,028,769,266 135,634,118

Issues traded 3,304 1,599

Advances 1,605 594

Declines 1,605 963

Unchanged 94 42

Newhighs 222 254

New lows 49 39

ClosingArms† 0.84 0.95

Block trades* 9,796 1,278

* PrimarymarketNYSE, NYSEAmerican NYSEArca only.†(TRIN)A comparison of the number of advancing and decliningissueswith the volumeof shares rising and falling. AnArmsof less than 1 indicates buying demand; above 1indicates selling pressure.

PercentageGainers... Percentage Losers

Volume %chg from Latest Session 52-WeekCompany Symbol (000) 65-day avg Close % chg High Low

ChesapeakeEnergy CHK 82,695 8.7 0.49 -2.80 3.57 0.48FordMotor F 67,614 45.1 8.25 0.12 10.56 8.02iSharesMSCI EmgMarkets EEM 64,706 2.3 44.18 -1.32 46.32 38.72SPDRS&P500 SPY 53,932 -10.2 337.06 -0.11 338.12 272.42AdvancedMicroDevices AMD 51,273 -4.9 54.53 1.19 55.03 21.04

General Electric GE 50,958 -9.1 12.94 -1.67 13.26 7.65Aurora Cannabis ACB 47,379 42.6 1.47 0.68 10.32 1.43CiscoSystems CSCO 47,011 135.1 47.32 -5.23 58.26 43.40Sprint S 45,985 148.0 8.67 0.81 8.78 4.26NIOADR NIO 42,193 -39.3 4.03 -0.98 10.64 1.19* Volumes of 100,000 shares ormore are rounded to the nearest thousand

Volume %chg from Latest Session 52-WeekCompany Symbol (000) 65-day avg Close % chg High Low

SPDRS&PKenshoNewEconKOMP 5,144 4595 39.02 0.28 39.09 30.43SPDRRuss 1000LowVol ONEV 385 3167 87.94 0.03 88.10 74.35SPDRS&PNAmerNatRscs NANR 2,122 2729 31.84 -0.14 34.00 29.26Franklin Lib SysStyle FLSP 1,778 2520 25.44 -0.39 25.56 24.87iSh Exponential Techs XT 4,182 2496 44.96 -0.18 45.09 35.97

SPDRPortfolio S&P500 SPLG 17,853 2094 39.65 -0.10 39.76 32.01AlbertonAcquisition Cl A ALAC 304 2014 10.46 -0.38 10.52 9.90SPDRPortfolioMtgBkdBd SPMB 12,411 1936 26.31 0.04 26.42 25.37scPharmaceuticals SCPH 850 1693 7.33 6.23 7.85 2.44Graf Industrial GRAF 331 1561 10.23 ... 10.29 9.73* Common stocks priced at $2 a share ormorewith an average volumeover 65 trading days of at least5,000 shares =Has traded fewer than 65 days

Nasdaq Composite Index9711.97 t 13.99, or 0.14%

High, low, open and close for eachtrading day of the past three months.

Year agoLast

Trailing P/E ratio *†P/E estimate *†Dividend yield *†All-time high:

28.43 21.98

24.13 18.92

0.92 1.10

9725.96, 02/12/20

8025

8300

8575

8850

9125

9400

9675

Nov. Dec. Jan. Feb.

65-day moving average

EQUITIES

CREDIT MARKETS

CorporateBorrowingRates andYieldsYield (%) 52-Week Total Return (%)

Bond total return index Close Last Week ago High Low 52-wk 3-yr

U.S. Treasury, Barclays 2316.110 1.590 1.610 2.680 1.490 8.71 3.86

U.S. Treasury Long, Barclays4236.420 2.030 2.070 3.090 1.880 21.09 8.71

Aggregate, Barclays 2163.490 2.090 2.110 3.250 2.020 9.61 4.49

Fixed-RateMBS, Barclays 2163.210 2.300 2.300 3.400 2.200 6.66 3.48

HighYield 100, ICEBofA 3225.292 4.553 4.672 6.505 4.516 9.42 5.61

MuniMaster, ICEBofA 574.973 1.348 1.379 2.373 1.317 7.67 4.57

EMBIGlobal, J.P.Morgan 900.611 4.620 4.645 6.497 4.620 11.65 5.79

Sources: J.P.Morgan; S&PDowJones Indices; BloombergBarclays; ICEDataServices

Latest Session 52-WeekCompany Symbol Close Net chg % chg High Low %chg

RevolutionMedicines RVMD 28.90 11.90 70.00 32.49 17.00 ...MolsonCoorsA TAP.A 80.00 17.00 26.98 80.00 54.00 27.0BioXcel Therapeutics BTAI 23.85 4.95 26.19 25.04 3.76 141.4HappinessBiotech HAPP 4.31 0.81 23.14 6.10 3.42 ...CounterPath CPAH 2.62 0.47 21.86 6.00 0.83 62.7

Exterran EXTN 5.52 0.92 20.00 18.82 4.56 -68.5Redfin RDFN 30.11 4.61 18.08 30.45 14.70 64.3ICAD ICAD 11.76 1.61 15.86 11.79 4.05 123.1Inovio Pharmaceuticals INO 3.86 0.52 15.57 5.95 1.92 4.6OneWaterMarine Cl A ONEW 17.40 2.29 15.16 17.40 14.50 ...

SparkNetworksADR LOV 6.50 0.82 14.44 17.64 4.04 -42.8BrainstormCell Theraptcs BCLI 5.40 0.68 14.41 6.67 3.43 39.2Sol-Gel Technologies SLGL 14.00 1.71 13.91 21.00 6.11 115.4EndavaADR DAVA 54.98 6.67 13.81 55.50 23.51 129.2Kelly Services Cl A KELYA 20.63 2.45 13.48 28.91 16.97 -15.7

MostActiveStocks

Latest Session 52-WeekCompany Symbol Close Net chg % chg High Low %chg

TrxadeGroup MEDS 6.50 -2.50 -27.78 10.56 2.10 138.1XBiotech XBIT 16.53 -5.27 -24.17 26.40 6.76 87.8GreenlandTechnologies GTEC 2.50 -0.75 -23.08 10.58 2.43 -75.1MuscleMaker GRIL 3.86 -1.14 -22.80 5.00 3.67 ...NeuroBoPharmaceuticals NRBO 23.50 -6.50 -21.67 37.13 5.95 -15.3

SunPower SPWR 8.82 -2.12 -19.38 16.04 5.72 40.2Catalyst Biosciences CBIO 6.50 -1.49 -18.65 10.84 4.52 -22.2GRAVITYADR GRVY 27.82 -6.37 -18.63 96.50 26.00 -44.4MarchexCl B MCHX 3.29 -0.74 -18.36 5.57 2.85 -21.5CanaanADR CAN 6.64 -1.40 -17.41 13.00 4.31 ...

KBSFashionGroup KBSF 1.94 -0.40 -17.09 4.59 1.80 -48.4Trio-Tech Intl TRT 3.55 -0.70 -16.47 5.49 2.85 14.5NuSkin Enterprises Cl A NUS 29.97 -5.82 -16.26 67.00 29.10 -52.8Deciphera Pharmaceuticals DCPH 58.44 -10.95 -15.78 71.11 19.88 108.9Akerna KERN 7.06 -1.23 -14.84 72.65 3.16 -30.2

VolumeMovers Ranked by change from65-day average*

Track the MarketsCompare the performance of selectedglobal stock indexes, bond ETFs,currencies and commodities atWSJ.com/TrackTheMarkets

CommoditiesPricing trends on some rawmaterials, or commodities

Thursday 52-Week YTDClose Net chg %Chg High Low %Chg % chg

DJCommodity 600.80 2.69 0.45 647.86 584.28 -0.97 -6.46TR/CCCRB Index 172.28 0.51 0.30 189.66 167.89 -3.61 -7.27Crude oil,$per barrel 51.42 0.25 0.49 66.30 49.57 -5.50 -15.79Natural gas,$/MMBtu 1.826 -0.018 -0.98 2.884 1.766 -29.03 -16.58Gold,$per troy oz. 1575.10 7.70 0.49 1583.50 1269.30 20.26 3.66

CURRENCIES & COMMODITIES

CurrenciesU.S.-dollar foreign-exchange rates in lateNewYork trading

US$vs,Thurs YTDchg

Country/currency inUS$ perUS$ (%)

AmericasArgentina peso .0163 61.3125 2.4Brazil real .2299 4.3503 8.2Canada dollar .7539 1.3265 2.1Chile peso .001259 794.00 7.4Colombiapeso .000296 3376.51 2.9EcuadorUSdollar 1 1 unchMexico peso .0538 18.5969 –1.8Uruguay peso .02646 37.7900 1.8Asia-PacificAustralian dollar .6720 1.4881 4.4China yuan .1433 6.9774 0.2HongKong dollar .1287 7.7671 –0.3India rupee .01402 71.330 –0.04Indonesia rupiah .0000731 13680 –1.5Japan yen .009106 109.82 1.1Kazakhstan tenge .002652 377.09 –1.2Macau pataca .1250 8.0016 –0.2Malaysia ringgit .2414 4.1417 1.3NewZealand dollar .6436 1.5538 4.6Pakistan rupee .00648 154.385 –0.4Philippines peso .0198 50.471 –0.5Singapore dollar .7199 1.3890 3.2SouthKoreawon .0008442 1184.58 2.6Sri Lanka rupee .0055096 181.50 0.1Taiwan dollar .03332 30.013 0.3Thailand baht .03211 31.140 4.6

US$vs,Thurs YTDchg

Country/currency inUS$ perUS$ (%)

Vietnam dong .00004303 23240 0.3EuropeCzechRep. koruna .04358 22.944 1.2Denmark krone .1451 6.8918 3.4Euro area euro 1.0843 .9223 3.4Hungary forint .003212 311.34 5.4Iceland krona .007872 127.04 4.9Norway krone .1081 9.2516 5.4Poland zloty .2553 3.9167 3.3Russia ruble .01570 63.687 2.6Sweden krona .1034 9.6735 3.3Switzerland franc 1.0211 .9793 1.2Turkey lira .1655 6.0415 1.6Ukraine hryvnia .0409 24.4664 3.3UK pound 1.3042 .7668 1.7Middle East/AfricaBahrain dinar 2.6532 .3769 –0.04Egypt pound .0637 15.7002 –2.2Israel shekel .2921 3.4238 –0.9Kuwait dinar 3.2796 .3049 0.6Oman sul rial 2.5980 .3849 –0.02Qatar rial .2746 3.642 –0.04SaudiArabia riyal .2666 3.7508 –0.01SouthAfrica rand .0669 14.9462 6.8

Close Net Chg %Chg YTD%Chg

WSJDollar Index 91.63 0.03 0.04 2.30

Sources: Tullett Prebon, DowJonesMarketData

Dow Jones Industrial Average29423.31 t128.11, or 0.43%

High, low, open and close for eachtrading day of the past three months.

Year agoLast

Trailing P/E ratioP/E estimate *Dividend yieldAll-time high

22.91 17.86

18.48 15.27

2.12 2.25

29551.42, 02/12/20

26500

27000

27500

28000

28500

29000

29500

Nov. Dec. Jan. Feb.

Current divisor 0.14744568353097

Bars measure the point change from session's open

tt

Session high

Session low

Session open

Close Open

CloseDOWN UP

65-day moving average

S&P 500 Index3373.94 t5.51, or 0.16%

High, low, open and close for eachtrading day of the past three months.

Year agoLast

Trailing P/E ratio *P/E estimate *Dividend yield *All-time high

26.10 20.06

19.11 16.03

1.81 2.01

3379.45, 02/12/20

2900

2975

3050

3125

3200

3275

3350

Nov. Dec. Jan. Feb.

65-day moving average

*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; †Based on Nasdaq-100 Index

MARKETS DIGEST

THEWALL STREET JOURNAL. Friday, February 14, 2020 | B9

Metal &PetroleumFuturesContract Open

Open High hi lo Low Settle Chg interest

Copper-High (CMX)-25,000 lbs.; $ per lb.Feb 2.6200 2.6200 2.6200 2.6195 0.0135 1,260

March 2.6020 2.6275 2.5815 2.6130 0.0130 104,464

Gold (CMX)-100 troy oz.; $ per troy oz.Feb 1570.20 1574.10 1570.20 1575.10 7.70 876

April 1569.80 1581.70 1568.50 1578.80 7.20 481,235

June 1574.60 1587.00 1574.50 1584.50 7.20 88,858

Aug 1587.30 1592.20 1585.80 1589.60 7.10 30,165

Oct 1591.10 1597.20 1591.00 1594.60 7.10 9,456

Dec 1594.40 1602.00 1594.00 1599.60 7.20 31,704

Palladium(NYM) - 50 troy oz.; $ per troy oz.Feb … … … 2372.90 28.50

March 2326.50 2355.90 2301.30 2351.00 28.50 13,012

June 2317.30 2351.00 2299.40 2347.20 28.40 6,989

Sept 2305.70 2334.80 2300.00 2336.10 29.00 1,227

Platinum(NYM)-50 troy oz.; $ per troy oz.Feb 971.90 7.40 15

April 964.70 977.80 963.50 974.70 7.40 92,526

Silver (CMX)-5,000 troy oz.; $ per troy oz.Feb 17.600 0.122 10

March 17.455 17.715 17.440 17.619 0.122 119,598

CrudeOil, Light Sweet (NYM)-1,000bbls.; $ per bbl.March 51.72 51.96 50.60 51.42 0.25 214,576

April 51.87 52.19 50.82 51.66 0.25 349,383

May 52.23 52.45 51.11 51.93 0.25 188,134

June 52.45 52.65 51.33 52.15 0.24 209,724

July 52.38 52.73 51.50 52.28 0.23 124,577

Dec 52.24 52.47 51.48 52.07 0.13 258,415

NYHarborULSD (NYM)-42,000gal.; $ per gal.March 1.6814 1.6957 1.6600 1.6805 .0048 87,854

April 1.6766 1.6925 1.6568 1.6783 .0056 92,196

Gasoline-NYRBOB(NYM)-42,000gal.; $ per gal.March 1.5934 1.6136 1.5564 1.5802 –.0008 93,723

April 1.7346 1.7500 1.6995 1.7227 –.0014 101,246

Natural Gas (NYM)-10,000MMBtu.; $ perMMBtu.March 1.846 1.869 1.823 1.826 –.018 276,725

April 1.868 1.894 1.853 1.856 –.018 344,796

May 1.929 1.948 1.907 1.913 –.016 192,253

July 2.074 2.091 2.052 2.058 –.021 92,538

Sept 2.116 2.130 2.091 2.097 –.022 85,538

Oct 2.150 2.164 2.125 2.131 –.023 95,592

Agriculture FuturesCorn (CBT)-5,000bu.; cents per bu.March 382.25 382.75 379.00 379.50 –3.50 428,574

May 386.50 386.75 383.75 384.75 –2.50 430,210

Oats (CBT)-5,000bu.; cents per bu.March 301.75 302.50 294.25 295.75 –8.25 2,981

May 298.50 298.50 291.25 295.00 –4.50 2,102

Soybeans (CBT)-5,000bu.; cents per bu.March 891.00 899.75 888.50 896.25 3.75 250,088

May 901.50 908.50 899.00 906.00 2.50 253,325

FuturesContracts Contract OpenOpen High hi lo Low Settle Chg interest

Contract OpenOpen High hi lo Low Settle Chg interest

Contract OpenOpen High hi lo Low Settle Chg interest

SoybeanMeal (CBT)-100 tons; $ per ton.March 291.70 294.00 290.80 291.90 .20 142,188May 297.20 299.40 296.50 297.60 .20 169,819SoybeanOil (CBT)-60,000 lbs.; cents per lb.March 31.00 31.00 30.41 30.72 –.31 110,157May 31.40 31.40 30.78 31.09 –.31 173,227RoughRice (CBT)-2,000 cwt.; $ per cwt.March 1340.00 1340.00 1308.00 1330.50 –8.50 6,528May 1360.00 1360.00 1330.50 1354.00 –8.00 5,199Wheat (CBT)-5,000bu.; cents per bu.March 548.50 550.50 540.75 544.25 –3.25 123,085May 548.50 550.50 541.50 544.75 –3.75 159,759Wheat (KC)-5,000bu.; cents per bu.March 469.75 470.75 462.75 466.00 –5.00 66,024May 476.50 477.25 469.25 472.75 –4.50 107,345Cattle-Feeder (CME)-50,000 lbs.; cents per lb.March 135.025 136.775 134.200 136.325 1.275 20,778April 137.175 139.525 136.675 138.950 1.775 12,739Cattle-Live (CME)-40,000 lbs.; cents per lb.Feb 119.100 119.700 t 118.450 119.450 .500 9,677April 117.700 118.950 116.975 118.525 .675 141,301Hogs-Lean (CME)-40,000 lbs.; cents per lb.Feb 55.725 56.125 55.650 56.000 .325 13,026April 63.650 64.725 62.925 64.075 .300 121,388Lumber (CME)-110,000bd. ft., $ per 1,000bd. ft.March 456.20 459.90 s 453.50 455.10 .60 2,061May 459.90 465.60 s 457.60 461.00 3.20 1,244Milk (CME)-200,000 lbs., cents per lb.Feb 17.01 17.02 16.94 17.01 –.02 2,822March 17.27 17.30 17.11 17.12 –.17 3,250Cocoa (ICE-US)-10metric tons; $ per ton.March 2,897 2,998 s 2,886 2,988 84 4,045May 2,852 2,905 2,848 2,895 27 136,668Coffee (ICE-US)-37,500 lbs.; cents per lb.March 100.50 104.65 99.95 104.45 3.80 33,121May 102.55 106.85 102.10 106.70 3.95 106,601Sugar-World (ICE-US)-112,000 lbs.; cents per lb.March 15.75 15.84 15.12 15.16 –.62 225,171May 15.02 15.24 14.73 14.78 –.28 397,754Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.May 26.70 26.70 s 26.70 26.65 .05 1,676Sept 27.35 27.35 27.35 27.35 .01 2,260Cotton (ICE-US)-50,000 lbs.; cents per lb.March 68.57 68.57 67.72 67.75 –.83 36,085May 69.13 69.29 68.51 68.63 –.61 101,686Orange Juice (ICE-US)-15,000 lbs.; cents per lb.March 97.75 99.50 97.75 99.15 1.15 11,974May 100.75 102.10 100.50 101.70 .95 5,334

InterestRate FuturesUltraTreasuryBonds (CBT) - $100,000; pts 32nds of 100%March 191-070 193-050 191-040 191-230 18.0 1,129,877June 192-250 193-280 191-290 192-150 18.0 115,952TreasuryBonds (CBT)-$100,000; pts 32nds of 100%March 161-210 162-260 161-200 161-280 6.0 1,149,610June 160-240 161-280 160-230 160-290 6.0 113,557TreasuryNotes (CBT)-$100,000; pts 32nds of 100%March 130-210 131-055 130-205 130-245 2.5 3,983,000

June 130-200 131-015 130-170 130-205 2.5 236,4075Yr. TreasuryNotes (CBT)-$100,000; pts 32nds of 100%March 119-217 119-315 119-217 119-232 .5 4,286,811June 120-040 120-120 120-020 120-032 .5 375,7562Yr. TreasuryNotes (CBT)-$200,000; pts 32nds of 100%March 107-301 108-011 107-297 107-301 –0.2 3,553,464June 108-037 108-070 108-032 108-036 –0.2 448,35230DayFederal Funds (CBT)-$5,000,000; 100 - daily avg.Feb 98.4150 98.4175 98.4125 98.4150 –.0025 375,464April 98.4350 98.4400 98.4350 98.4350 .0000 313,81610Yr. Del. Int. RateSwaps (CBT)-$100,000; pts 32nds of 100%March 104-035 104-050 103-255 103-305 5.0 95,800Eurodollar (CME)-$1,000,000; pts of 100%Feb 98.3075 98.3200 98.3075 98.3175 .0075 290,659March 98.3350 98.3500 98.3300 98.3450 .0050 1,570,206June 98.4250 98.4550 98.4200 98.4350 .0100 1,454,190Dec 98.5400 98.6000 98.5400 98.5500 … 1,227,498

CurrencyFuturesJapaneseYen (CME)-¥12,500,000; $ per 100¥Feb .9100 .9123 .9085 .9108 .0021 303March .9098 .9137 .9097 .9121 .0021 195,376CanadianDollar (CME)-CAD 100,000; $ per CADFeb .7544 .7552 .7536 .7542 .0001 1,407March .7546 .7552 .7535 .7542 .0001 157,570BritishPound (CME)-£62,500; $ per £Feb 1.2959 1.3069 1.2946 1.3054 .0093 5,095March 1.2966 1.3080 1.2954 1.3064 .0094 202,988Swiss Franc (CME)-CHF 125,000; $ per CHFMarch 1.0244 1.0266 t 1.0228 1.0232 –.0012 51,864June 1.0322 1.0328 t 1.0294 1.0296 –.0012 99AustralianDollar (CME)-AUD 100,000; $ perAUDFeb .6722 .6745 .6713 .6724 –.0011 2,334March .6739 .6750 .6710 .6728 –.0010 177,282

MexicanPeso (CME)-MXN500,000; $ perMXNFeb .05334 .05378 s .05356 .05379 .00011 10March .05345 .05360 s .05331 .05359 .00014 301,173Euro (CME)-€125,000; $ per €Feb 1.0871 1.0889 t 1.0836 1.0844 –.0026 2,755March 1.0892 1.0908 t 1.0853 1.0863 –.0026 600,521

IndexFuturesMiniDJ Industrial Average (CBT)-$5 x indexMarch 29529 29543 s 29245 29432 –91 104,925June 29488 29506 s 29224 29404 –89 400S&P500 Index (CME)-$250 x indexMarch 3382.00 3383.00 s 3349.10 3377.40 –3.10 40,957June 3316.00 3344.00 3316.00 3377.90 –3.00 149Mini S&P500 (CME)-$50 x indexMarch 3381.25 3384.75 s 3348.50 3377.40 –3.10 2,732,274June 3381.00 3385.25 s 3349.00 3377.90 –3.00 63,951Mini S&PMidcap400 (CME)-$100 x indexMarch 2090.70 2100.80 2072.20 2097.50 6.70 77,811June 2047.70 2099.20 2081.10 2103.00 6.20 59MiniNasdaq 100 (CME)-$20 x indexMarch 9621.50 9644.75 s 9511.25 9613.00 –12.75 205,458June 9643.50 9666.00 s 9532.75 9633.00 –13.00 1,328Mini Russell 2000 (CME)-$50 x indexMarch 1690.50 1698.00 1673.00 1696.40 6.40 485,981June 1688.00 1698.90 1675.50 1697.90 6.40 737Mini Russell 1000 (CME)-$50 x indexMarch 1863.70 1872.90 s 1859.40 1866.80 –2.30 8,994U.S. Dollar Index (ICE-US)-$1,000 x indexMarch 98.90 99.01 s 98.75 98.96 .04 48,652June 98.54 98.61 s 98.50 98.59 .04 1,159

Source: FactSet

Thursday

Platinum,Engelhard fabricated n.a.Palladium,Engelhard industrial 2421.0Palladium,Engelhard fabricated n.a.Aluminum, LME, $ permetric ton *1707.0Copper,Comex spot 2.6195IronOre, 62%FeCFRChina-s 88.2ShreddedScrap, USMidwest-s,m 281Steel, HRCUSA, FOBMidwestMill-s 575

Fibers andTextiles

Burlap,10-oz,40-inchNYyd-n,w 0.5600Cotton,1 1/16 std lw-mdMphs-u 0.6500Cotlook 'A' Index-t *77.20Hides,hvy native steers piece fob-u n.a.Wool,64s,staple,Terr del-u,w n.a.

Grains andFeeds

Barley,top-qualityMnpls-u n.a.Bran,wheatmiddlings, KC-u 90Corn,No. 2 yellow,Cent IL-bp,u 3.7650Corn gluten feed,Midwest-u,w 118.6Corn glutenmeal,Midwest-u,w 458.9Cottonseedmeal-u,w 250Hominy feed,Cent IL-u,w 110Meat-bonemeal,50%proMnpls-u,w n.a.Oats,No.2milling,Mnpls-u 3.3375Rice, LongGrainMilled, No. 2AR-u,w 25.63Sorghum,(Milo)No.2Gulf-u 7.5350SoybeanMeal,Cent IL,rail,ton48%-u 292.90Soybeans,No.1 yllw IL-bp,u 8.8350Wheat,Spring14%-proMnpls-u 6.4925

Thursday

Wheat,No.2 soft red,St.Louis-bp,u 6.0900Wheat -Hard - KC (USDA) $ per bu-u 4.6850Wheat,No.1softwhite,Portld,OR-u 6.2100

FoodBeef,carcass equiv. indexchoice 1-3,600-900 lbs.-u 188.03select 1-3,600-900 lbs.-u 183.81Broilers, National compwtd. avg.-u,w 0.8582Butter,AAChicago 1.8000Cheddar cheese,bbl,Chicago 158.50Cheddar cheese,blk,Chicago 186.50Milk,Nonfat dry,Chicago lb. 119.75Coffee,Brazilian,Comp 0.9885Coffee,Colombian, NY 1.4186Eggs,largewhite,Chicago-u 1.0650Flour,hardwinter KC 14.70Hams,17-20 lbs,Mid-US fob-u 0.58Hogs,Iowa-So.Minnesota-u 55.15Pork bellies,12-14 lbMidUS-u n.a.Pork loins,13-19 lbMidUS-u 0.8654Steers,Tex.-Okla. Choice-u 119.00Steers,feeder,Okla. City-u,w 160.25

Fats andOilsCorn oil,crudewet/drymill wtd. avg.-u,w 36.0000Grease,choicewhite,Chicago-h 0.2825Lard,Chicago-u n.a.Soybean oil,crude;Centl IL-u 0.3067Tallow,bleach;Chicago-h 0.3400Tallow,edible,Chicago-u 0.3888

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=American Commodities Brokerage Co;M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA;W=weekly, Z=not quoted. *Data as of 2/12

Source:WSJMarket Data Group

CashPrices Thursday, February 13, 2020These prices reflect buying and selling of a variety of actual or “physical” commodities in themarketplace—separate from the futures price on an exchange,which reflectswhat the commoditymight beworth in futuremonths.

Thursday

Energy

Coal,C.Aplc.,12500Btu,1.2SO2-r,w 59.150Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.700

Metals

Gold, per troy ozEngelhard industrial 1575.00Engelhard fabricated n.a.Handy&Harmanbase 1575.05Handy&Harman fabricated 1748.31LBMAGold PriceAM *1566.75LBMAGold Price PM *1563.70Krugerrand,wholesale-e 1639.04Maple Leaf-e 1654.80AmericanEagle-e 1654.80Mexican peso-e 1908.18Austria crown-e 1547.80Austria phil-e 1654.80Silver, troy oz.Engelhard industrial 17.7400Engelhard fabricated n.a.Handy&Harmanbase 17.6700Handy&Harman fabricated 22.0880LBMAspot price *£13.5200(U.S.$ equivalent) *17.5600Coins,wholesale $1,000 face-a 12922OthermetalsLBMAPlatinumPrice PM *962.0Platinum,Engelhard industrial 968.0

WSJ.com/commodities

Global GovernmentBonds:MappingYieldsYields and spreads over or underU.S. Treasurys on benchmark two-year and 10-year government bonds inselected other countries; arrows indicatewhether the yield rose(s) or fell (t) in the latest session

Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis pointsCoupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago

1.375 U.S. 2 1.460 s l 1.444 1.592 2.537

1.500 10 1.618t l 1.637 1.850 2.703

2.000 Australia 2 0.775 t l 0.782 0.813 1.780 -68.5 -66.2 -75.72.750 10 1.053 t l 1.072 1.225 2.160 -56.6 -56.5 -54.3

0.000 France 2 -0.605 t l -0.592 -0.547 -0.447 -206.6 -203.6 -298.40.000 10 -0.142 t l -0.133 0.096 0.552 -176.0 -177.0 -215.1

0.000 Germany 2 -0.640 t l -0.632 -0.585 -0.557 -210.0 -207.5 -309.40.000 10 -0.382 t l -0.377 -0.159 0.126 -200.0 -201.4 -257.7

1.200 Italy 2 -0.210 s l -0.232 0.067 0.702 -167.1 -167.5 -183.51.350 10 0.896 t l 0.919 1.379 2.784 -72.3 -71.8 8.1

0.100 Japan 2 -0.151 t l -0.149 -0.133 -0.165 -161.1 -159.3 -270.20.100 10 -0.031 s l -0.040 0.000 -0.006 -164.9 -167.7 -270.9

0.050 Spain 2 -0.464 t l -0.441 -0.359 -0.174 -192.4 -188.5 -271.10.600 10 0.247 t l 0.261 0.479 1.239 -137.1 -137.6 -146.5

3.750 U.K. 2 0.573 s l 0.550 0.491 0.728 -88.8 -89.4 -180.84.750 10 0.674 s l 0.634 0.779 1.079 -94.4 -100.3 -162.4

Source: Tullett Prebon

CorporateDebtPricemoves by a company's debt in the creditmarkets sometimesmirror and sometimes anticipate,moves inthat same company’s share price.

Investment-grade spreads that tightened themost…Spread*, in basis points Stock Performance

Issuer Symbol Coupon (%) Maturity Current One-day change Lastweek Close ($) % chg

Edison International EIX 3.550 Nov. 15, ’24 89 –20 n.a. 77.37 –0.17EquinorASA EQNR 5.100 Aug. 17, ’40 76 –14 n.a. 17.48 –0.34IBMCredit … 3.000 Feb. 6, ’23 19 –14 n.a. … …Wells Fargo WFC 3.550 Sept. 29, ’25 56 –11 70 48.12 0.69

Broadcom AVGO 3.625 Jan. 15, ’24 87 –10 93 323.97 –0.22MarathonPetroleum MPC 4.500 April 1, ’48 170 –10 187 59.50 0.97

…Andspreads thatwidened themost

KraftHeinz Foods … 4.875 Oct. 1, ’49 269 49 215 … …Prudential Financial PRU 5.625 June 15, ’43 69 9 67 95.57 –0.40Eni SpA ENIIM 4.750 Sept. 12, ’28 103 8 n.a. ... ...MarathonOil MRO 4.400 July 15, ’27 132 8 136 11.11 –4.31

Anheuser–Busch ABIBB 4.900 Feb. 1, ’46 140 7 136 ... ...BPCE BPCEGP 5.700 Oct. 22, ’23 101 7 n.a. ... ...Campbell Soup CPB 4.800 March 15, ’48 153 7 148 48.36 0.37Perrigo Finance PRGO 4.900 Dec. 15, ’44 272 7 270 57.96 –3.00

High-yield issueswith thebiggest price increases…BondPrice as%of face value Stock Performance

Issuer Symbol Coupon (%) Maturity Current One-day change Lastweek Close ($) % chg

FTS International FTSINT 6.250 May1, ’22 65.000 10.00 53.250 ... ...Bombardier BBDBCN 7.875 April 15, ’27 103.000 3.50 98.625 ... ...WesternMidstreamOperating WES 5.300 March 1, ’48 92.826 3.49 89.517 15.87 –2.46CommScopeTechnologies COMM 6.000 June 15, ’25 102.250 2.00 98.750 14.38 –0.48

Frontier Communications FTR 9.000 Aug. 15, ’31 51.500 2.00 n.a. 0.57 –2.46Cengage Learning CNGO 9.500 June 15, ’24 95.250 1.75 93.313 ... ...Brand Industrial Services BRANDI 8.500 July 15, ’25 104.000 1.25 102.000 ... ...PeabodyEnergy BTU 6.375 March 31, ’25 90.500 1.25 87.750 7.77 0.65

…Andwith thebiggest price decreases

Olin OLN 5.625 Aug. 1, ’29 101.750 –3.94 106.000 17.55 1.04WhitingPetroleum WLL 6.250 April 1, ’23 59.750 –3.25 73.000 2.88 ...LaredoPetroleum LPI 9.500 Jan. 15, ’25 85.000 –3.00 89.750 1.56 –1.89CaliforniaResources CRC 8.000 Dec. 15, ’22 30.000 –2.25 n.a. 6.57 –1.35

Intelsat Connect Finance INTEL 9.500 Feb. 15, ’23 67.125 –2.13 67.000 ... ...MPHAcquisitionHoldings MLTPLN 7.125 June 1, ’24 96.250 –2.00 98.500 ... ...NGLEnergyPartners NGL 6.125 March 1, ’25 90.313 –1.69 92.980 9.54 0.63Transocean RIG 7.500 April 15, ’31 70.450 –1.55 72.625 4.66 –0.21

*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-runTreasury; 100basis points=one percentage pt.; change in spread shown is for Z-spread.Note: Data are for themost active issue of bondswithmaturities of two years ormore

Sources:MarketAxess CorporateBondTicker; DowJonesMarketData

BroadMarketBloombergBarclays

2163.49 1.7 U.S. Aggregate 2.090 2.020 3.250

U.S. Corporate IndexesBloombergBarclays

3214.48 2.3 U.S. Corporate 2.610 2.570 3.950

2930.64 1.3 Intermediate 2.200 2.140 3.580

4732.86 4.0 Long term 3.350 3.320 4.720

651.80 2.0 Double-A-rated 2.180 2.120 3.300

852.92 2.4 Triple-B-rated 2.880 2.840 4.310

HighYieldBonds ICEBofA

472.24 1.1 HighYield Constrained 5.220 5.151 6.790

443.16 1.2 Triple-C-rated 10.807 10.558 12.699

3225.29 1.0 HighYield 100 4.553 4.516 6.505

427.21 1.4 Global HighYield Constrained 4.944 4.894 6.451

332.06 1.0 EuropeHighYield Constrained 2.562 2.560 4.016

U.SAgencyBloombergBarclays

1788.93 1.3 U.SAgency 1.700 1.610 2.790

1570.42 0.7 10-20 years 1.610 1.520 2.670

3953.74 3.8 20-plus years 2.160 2.010 3.340

2782.93 1.9 Yankee 2.410 2.370 3.640

Bonds | WSJ.com/bonds

TrackingBondBenchmarksReturn on investment and spreads over Treasurys and/or yields paid to investors comparedwith 52-weekhighs and lows for different types of bondsTotalreturn YTD total Yield (%)close return (%) Index Latest Low High

*Constrained indexes limit individual issuer concentrations to 2%; theHighYield 100 are the 100 largest bonds † In local currency §Euro-zone bonds

** EMBIGlobal Index Sources: ICEDataServices; BloombergBarclays; J.P.Morgan

Totalreturn YTD total Yield (%)close return (%) Index Latest Low High

Mortgage-BackedBloombergBarclays

2163.21 0.8 Mortgage-Backed 2.300 2.200 3.400

2110.54 0.6 GinnieMae (GNMA) 2.340 2.090 3.340

1276.32 0.9 Fanniemae (FNMA) 2.280 2.220 3.420

1961.51 0.9 FreddieMac (FHLMC) 2.280 2.220 3.420

574.97 1.6 MuniMaster 1.348 1.317 2.373

406.52 1.9 7-12 year 1.285 1.250 2.313

462.57 2.1 12-22 year 1.613 1.591 2.825

450.64 2.2 22-plus year 2.130 2.108 3.362

Global Government J.P.Morgan†

593.39 1.8 Global Government 0.880 0.690 1.570

819.97 2.0 Canada 1.470 1.260 2.030

409.18 2.3 EMU§ 0.303 0.109 1.158

774.90 2.1 France 0.110 -0.160 0.800

543.61 1.5 Germany -0.260 -0.590 0.280

298.76 0.2 Japan 0.170 -0.070 0.320

606.00 1.7 Netherlands -0.160 -0.490 0.410

1032.78 2.8 U.K. 0.950 0.730 1.620

900.61 2.1 EmergingMarkets ** 4.620 4.620 6.497

Borrowing Benchmarks | WSJ.com/bonds

MoneyRates February 13, 2020

Key annual interest rates paid to borrowor lendmoney inU.S. and internationalmarkets. Rates beloware aguide to general levels but don’t always represent actual transactions.

InflationJan. Index ChgFrom (%)

level Dec. '19 Jan. '19

U.S. consumer price indexAll items 257.971 0.39 2.5Core 266.004 0.40 2.3

International rates

Week 52-WeekLatest ago High Low

Prime ratesU.S. 4.75 4.75 5.50 4.75Canada 3.95 3.95 3.95 3.95Japan 1.475 1.475 1.475 1.475

PolicyRatesEuro zone 0.00 0.00 0.00 0.00Switzerland 0.50 0.50 0.50 0.50Britain 0.75 0.75 0.75 0.75Australia 0.75 0.75 1.50 0.75

Overnight repurchaseU.S. 1.62 1.64 3.40 1.50

U.S. government rates

Discount2.25 2.25 3.00 2.25

Notes ondata:U.S. prime rate is the base rate on corporate loans posted by at least 70%of the 10 largestU.S. banks, and is effectiveOctober 31, 2019.Other prime ratesaren’t directly comparable; lending practices varywidely by location; Discount rate is effectiveOctober 31, 2019.DTCCGCFRepo Index is Depository Trust&Clearing Corp.'sweighted average for overnight trades in applicable CUSIPs. Value traded is in billions ofU.S. dollars.Federal-funds rates are TullettPrebon rates as of 5:30 p.m. ET.Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet;Tullett Prebon Information, Ltd.

Federal fundsEffective rate 1.5900 1.6000 2.4800 1.4700High 1.6300 1.6500 3.0000 1.5200Low 1.4500 1.5000 2.4400 0.5000Bid 1.5500 1.5600 2.4400 1.4000Offer 1.5700 1.6000 2.5000 1.4700

Treasury bill auction4weeks 1.560 1.540 2.470 1.49013weeks 1.550 1.550 2.410 1.52026weeks 1.510 1.520 2.460 1.510

Secondarymarket

FannieMae30-yearmortgage yields

30days 2.964 2.981 4.093 2.87160days 2.973 2.991 4.112 2.890

Other short-term rates

Week 52-WeekLatest ago high low

Callmoney3.50 3.50 4.25 3.50

Week —52-WEEK—Latest ago High Low

Commercial paper (AA financial)90days 1.61 1.65 2.60 1.58

LiborOnemonth 1.65850 1.67088 2.50150 1.64525Threemonth 1.69163 1.73413 2.69388 1.69163Sixmonth 1.71288 1.74963 2.75538 1.71288One year 1.80200 1.84263 2.91675 1.76900

Euro LiborOnemonth -0.520 -0.513 -0.408 -0.524Threemonth -0.434 -0.423 -0.330 -0.482Sixmonth -0.392 -0.393 -0.290 -0.474One year -0.317 -0.304 -0.159 -0.428

Value 52-WeekLatest Traded High Low

DTCCGCFRepo IndexTreasury 1.623 30.000 6.007 1.549MBS 1.633 74.700 6.699 1.568

Weekly surveyLatest Week ago Year ago

FreddieMac30-year fixed 3.47 3.45 4.3715-year fixed 2.97 2.97 3.81Five-yearARM 3.28 3.32 3.88

Week —52-WEEK—Latest ago High Low

WSJ.com/commoditiesCOMMODITIES

DividendChangesDividend announcements fromFebruary 13.

Amount Payable /Company Symbol Yld% New/Old Frq Record

Amount Payable /Company Symbol Yld% New/Old Frq Record

IncreasedAllianceBernstein AB 6.7 .85 /.63 Q Mar05 /Feb24Ametek AME 0.6 .18 /.14 Q Mar31 /Mar13AuburnNational Bancorp AUBN 1.7 .255 /.25 Q Mar25 /Mar10Healthcare ServicesGroup HCSG 2.8 .2013 /.20 Q Mar27 /Feb28Interpublic Grp IPG 3.8 .255 /.235 Q Mar16 /Mar02Moody's Corp MCO 0.7 .56 /.50 Q Mar18 /Feb25Primerica PRI 1.0 .40 /.34 Q Mar16 /Feb24Rexford Industrial Realty REXR 1.4 .215 /.185 Q Apr15 /Mar31WesternUnion WU 3.1 .225 /.20 Q Mar31 /Mar17

ReducedGabelli Pfd. B GLUpB 6.7 .50 /.875 Q Mar26 /Mar19PPLUSFRCall SerGSC-2 PYT 3.7 .1917 /.19219 Q Feb18 /Feb14STRATSSers 2006-1 P&G GJR 3.0 .0479 /.04808 M Feb18 /Feb14Viper EnergyPartnersUn VNOM 8.1 .45 /.46 Q Feb28 /Feb21

InitialGabelli Equity Pfd. K GABpK 4.8 .3472 Mar26 /Mar19

Amount Payable /Company Symbol Yld% New/Old Frq Record

Amount Payable /Company Symbol Yld% New/Old Frq RecordGabelliMultimedia Pfd. G GGTpG 4.9 .3417 Mar26 /Mar19

StocksTrxadeGroup MEDS 1:6 /Feb13

ForeignAmcor AMCR 4.6 .115 Q Mar24 /Mar04BancoBradescoOrdADR BBDO 2.4 .0034 M Apr08 /Mar04BancoBradescoPrefADR BBD 2.6 .0037 M Apr08 /Mar04BancoSantander Pfd. 6 SANpB 4.1 .25278 Q Mar05 /Feb19BarrickGold GOLD 1.1 .07 Q Mar16 /Feb28CenovusEnergy CVE 2.1 .047 Q Mar31 /Mar13Fortis FTS 3.3 .3593 Q Jun01 /May15TaiwanSemiconductorADR TSM 3.2 .4171 Q Jul16 /Jun19

SpecialCarter Bank&Trust CARE ... .14 Mar13 /Feb18

KEY:A: annual;M:monthly; Q: quarterly; r: revised; SA: semiannual;S2:1: stock split and ratio; SO: spin-off.

B10 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

Average salaries forNFLplayers

Source: NFL Players Association

$3.0

0

0.5

1.0

1.5

2.0

2.5

million

2000 ’05 ’10 ’15

deeply regret having had anyrelationship with Jeffrey Ep-stein.”

Mr. Epstein was found deadin August at a New York de-tention center where he wasawaiting trial on federal sex-trafficking charges, in whatthe New York medical exam-iner ruled a suicide.

Barclays said Thursday thatMr. Epstein’s death renewedinterest in Mr. Staley’s deal-ings with him, and that theCEO gave an explanation toexecutives, including Chair-man Nigel Higgins. Mr. Staleyconfirmed he had no contactwith Mr. Epstein after becom-ing CEO, the bank said.

ContinuedfrompageB1

While Thursday’s filing in-cluded the disclosure of thenew SEC inquiry, it containedother good news for Tesla,which has tangled publicly withthe SEC since 2018, when Mr.Musk surprised investors witha failed plan to take the automaker private.

That dispute between Mr.Musk and the SEC already hadbeen settled and the companyThursday said the regulatorhad closed an investigation intothe company’s Model 3 produc-tion projections.

The SEC declined to com-ment. Tesla didn’t respond torequests for comment.

Tesla’s longtime auditor,PricewaterhouseCoopers LLP, hasraised “critical audit matters”following its review of the com-pany’s financial statements, Tesladisclosed in its regulatory filing.

PwC, which has examinedTesla’s books since 2005, high-lighted that auditing the carmaker had particular complexi-ties, including in how the com-pany was reserving money forpotential future warranty ex-penses and the promises itmade to guarantee a resalevalue or buyback option forsome of the vehicles it sold.

decision to raise funds a smartmove.

“This will be a bit of a shockto some given the companytalked about no need to raisecapital on its recent conferencecall, although the bulls (which weagree with) will say this essen-tially rips the Band-Aid off andtakes the doomsday cash crunchscenario some predicted downthe road now off the table,” hesaid in a note to investors.

In the public offering Mr.Musk agreed to buy up to $10million of stock, while boardmember Larry Ellison, the co-founder of Oracle Corp., is ex-pected to purchase up to $1million of the stock, Tesla saidThursday.

Tesla said it has granted un-derwriters an option to buy upto about $300 million of addi-tional stock.

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SEC OpensNew TeslaInquiry

Messrs. Oladipo and Sabathia,tennis legend Venus Williamsand National Football Leaguerunning back Todd Gurley.

The firm invests money itraises from athletes and othersources and invests alongsidemajor private-equity firms.Patricof Co. keeps about 20% ofthe returns and gives the restback to the athletes and otherinvestors, including JPMorganChase & Co., Mr. Patricof said.

So far, the company says ithas invested in hot-saucemaker Cholula Food Co., golf-ing entertainment companyTopgolf Entertainment Group,RealReal Inc., a luxury con-signment business, and Orgain,an organic nutrition company.Patricof also invests in real es-

Credit Suisse Group AG’sdeparting chief executive, Ti-djane Thiam, said bumper2019 earnings validate hisstrategic push into wealthmanagement four years ago,and that he is leaving with a“clear conscience” after beingforced to resign last week overa spying scandal.

Mr. Thiam spent his finalday at Credit Suisse present-ing its best financial results innine years. The bank said 2019net profit rose to 3.4 billionSwiss francs ($3.48 billion), upfrom 2.06 billion francs in

BY MARGOT PATRICK

BANKING & FINANCE

2018, as gains in its wealthmanagement and marketsbusinesses offset a decline incorporate advisory revenue.

Mr. Thiam said the resultsshowed the strategy he un-veiled in October 2015 isworking. “The mix and qualityof our earnings four yearslater is much better and morestable,” he said. After joiningas CEO in July 2015, Mr.Thiam re-centered the bankaround serving the global rich,culling its more volatile mar-kets business that at the timemade up just over half its as-sets. That business now ac-counts for 28% of assets.

Net profit in 2019 was thebest since 2010, when thebank made 5.1 billion francs.

“It’s a great way for thecompany to say goodbye tome,” he said on a call with an-alysts.

Mr. Thiam was ousted at aboard meeting a week ago forfailing to contain reputationalfallout from the surveillance oftwo Credit Suisse executiveslast year. He has said he didn’tknow about the surveillancebefore it became public andregretted it happened.

On Thursday, Mr. Thiamsaid he had to be “a sticklerfor the rules” and remain si-lent while the bank, an outsidelaw firm and the Swiss finan-cial regulator all investigatedaspects of the surveillance.

“I was never going to inter-vene or be seen as interven-ing,” he said.

The bank’s chairman, UrsRohner, said last Friday theboard unanimously decidednew leadership was needed toresolve the deterioration intrust and credibility with cus-tomers since the executive

surveillance came to light.Mr. Thiam said a decision in

January to post a rebuttal to aSwiss press report on a per-sonal Instagram account wasreached with the bank’s corpo-rate communications depart-ment, and that they reviewedall his posts. The Wall StreetJournal previously reportedthat some board memberswere unhappy with the appar-ent effort to bolster his posi-tion through Instagram postswhile they considered whetherhe should stay in the job.

“I don’t know how to poston Instagram,” Mr. Thiam said.It was “a collaboration withthe company,” and communi-cations staff uploaded theposts, he said.

The spying scandal began inSeptember when the bank’sformer international wealthmanagement head, Iqbal Khan,

spotted and confronted an in-vestigator following him inZurich. Mr. Khan was due tostart at rival UBS Group AGthe next month. An outsidelaw firm hired by the CreditSuisse board found no evi-dence Mr. Thiam knew aboutthe surveillance, and that ithad been ordered by thebank’s chief operating officerto protect the bank’s interests.The COO resigned and hasn’tcommented.

Then, in December, a Swissnewspaper published detailsand photos of the surveillanceof a second executive. The lawfirm investigated and againfound the COO had ordered itwithout Mr. Thiam’s knowl-edge.

The second incident trig-gered a regulatory investiga-tion in Switzerland and led tothe board losing confidence in

Mr. Thiam’s leadership to stemthe crisis.

Mr. Thiam said he is look-ing forward to getting somerest now before figuring outwhat he will do next, and ad-vised his replacement,Thomas Gottstein, not to have“too much pride” to changetack when circumstanceschange. Shortly after Mr.Thiam set out his 2015 strat-egy, markets sank, forcing arethink around elements ofthe plans.

The bank said net profitmore than doubled in thefourth quarter to 852 millionSwiss francs compared with259 million francs a year ear-lier. Analysts had forecast aquarterly net profit of 968million francs on revenue of5.57 billion francs, accordingto a consensus forecast pro-vided by the bank.

Credit Suisse CEO Defends His RecordThiam tells investorshe leaves with ‘clearconscience’ after spyscandal cost him job

ers from across the industry. Histeam has toughened underwrit-ing standards, reduced policysizes by tens of billions of dol-lars in the aggregate, slicedoverall expenses, added reinsur-ance coverage to make resultsless volatile and acquired twoproperty-casualty insurers. Hesaid his team is focused on posi-tioning AIG as a top-performingcompany. Since the crisis, itsperformance, as measured byvarious common financial met-rics, has lagged behind somelarge insurance rivals.

In a conference call with ana-lysts Thursday, Mr. Duperreaultsaid the results “reflect the sig-nificant progress we made overthe course of 2019…to positionAIG for long-term sustainableprofitable growth.”

Indicating confidence thatits property-casualty businessis in good shape, AIG shrank its$80 billion of gross property-casualty reserves by $153 mil-lion in the quarter. In the year-earlier period, it had bolsteredthem with a net $365 millioncharge to reflect newly deter-mined shortfalls.

AIG executives noted in theearnings call that after years offlat or declining rates, risingprices for property and liabilitypolicies sold to businesseshelped the quarter’s financialresults. Premium rates rosethroughout the year with accel-eration during the fourth quar-ter, President Peter Zaffinosaid. He dubbed it “the stron-gest quarter of rate improve-ment that we’ve seen over thelast decade,” with percentageincreases running in the doubledigits in many instances.

Still, AIG’s gross premiumswritten—an industry term forthe volume of insurance sold—fell 5% in the core unit to $7.31billion for the quarter.

Mr. Duperreault said some ofthe drop stemmed from theshrinkage of policy sizes to re-duce volatility.

AIG’s adjusted after-tax in-come, which excludes itemsjudged nonrecurring, tallied$919 million, or $1.03 a share. Ayear earlier, it had a loss of $559million, or 63 cents a share.

Global insurance conglomer-ate American InternationalGroup Inc. swung to a fourth-quarter profit, the latest big in-surer to post improved resultsbecause of lower catastropheclaims.

The insurer is gaining groundin a multiyear turnaround effort

to overhaul its commercialproperty-casualty insur-ance business. For thefourth straight quarter,this core unit turned aprofit and showedother operational im-provement. The New

York company postedoverall quarterly net profit

of $922 million, reversing ayear-earlier loss of $622 million.

The company’s most-recentquarter included Texas torna-does, California wildfires andTyphoon Hagibis in Japan, butcatastrophe costs still fell farshort of the year-earlier tally. In2018, Hurricane Michael flat-tened the area near MexicoBeach, Fla., and California blazescaused historic devastation.

The most-recent results ben-efited from the extensive use ofreinsurance, under which otherinsurers are under contract toshare some costs, the insurersaid. Net of this reinsurance,AIG’s catastrophe claims tallied$411 million in the quarter,down from $826 million in theyear-earlier period.

Shares of AIG fell 6.2% to$50.93 despite a strong quarter.

AIG executives made somecautionary comments about fu-ture results during the morn-ing’s earnings call that causedsome analysts to be less bullishabout future results.

AIG discussed the negativeimpact of sustained, ultralowU.S. interest rates on some life-insurance products and poten-tially higher-than-expectedcosts for lawsuits and juryawards from social inflation incasualty claims against busi-ness policyholders.

Chief Executive Brian Duper-reault, who took the job in May2017, has hired dozens of experi-enced executives and underwrit-

BY LESLIE SCISM

AIG’s Profit ClimbsAs It Builds BackProperty-Casualty

sports rise. The average NFLplayer’s salary was about $3million in 2018, according tothe NFL Players Association,about 38 times higher than in1980. The average NBA player’ssalary was about $7.5 millionin 2018, according to a personfamiliar with the matter, morethan 40 times higher than theaverage salary in 1980.

Professional investing pres-ents a number of potential pit-falls for athletes who don’t haveproper advice, said JonathanMiller, president of the SportsFinancial Advisors Association.Many athletes have gone on tosuccess in investing after theircareers, he said, but that isn’t aguaranteed outcome.

“For every one of those suc-cesses, there are a lot of un-successful ones,” he said.

Family members, friendsand acquaintances can also tryto pressure athletes to investin their ventures.

“As an athlete, you can bewalking down the street andpeople are pitching you deals,”said former Yankees pitcher CCSabathia. “It can be anybody atany time.” Mr. Sabathia said hewas once pitched by someonewho wanted him to help fi-nance the purchase of a truckfor their garbage business.

Patricof’s roster includesabout 60 current and formerprofessional athletes, including

tate with players.A spokesman for Mr. Patri-

cof declined to say how muchmoney has been paid to ath-letes as a result of the invest-ments. He added that the com-pany has showed positivereturns based on the price ofstock for RealReal—whichwent public after the firm’s in-vestment—and the expectedvaluation for Topgolf, whichhasn’t gone public.

Mr. Patricof said he came upwith the idea for his firm afterappearing on a streamingshow where he met New Eng-land Patriots tight end RobGronkowski and other athletes.

Mr. Patricof recalled a con-versation with Mr. Gronkowskiabout his endorsement of Mon-ster energy drink. “We did someback-of-the-envelope mathabout how many cases weresold and how much he waspaid,” he said. “At the end ofthe day, I think he was a littlesurprised that they made moremoney on his deal than he did.”Mr. Gronkowski isn’t a client.

Monster Beverage Corp. andMr. Gronkowski didn’t respondto requests for comment.

In addition to helping ath-letes invest in private-equitydeals, Patricof also assiststhem in finding positions oncorporate boards and evaluat-ing deal proposals they receivefrom other firms.

Indiana Pacers guard VictorOladipo was recovering from aruptured quad tendon last yearwhen he met with a bankerfrom an investment firm at aworkout.

Before long, Mr. Oladipo—whose injury pushed him toponder his financial future—was also part of a new team,at Patricof Co., which helpsathletes find potential private-equity investments.

“I realized that I needed tostart taking the necessarysteps to make sure that life af-ter basketball is still comfort-able,” Mr. Oladipo said.

Flush with cash from risingsalaries and lucrative endorse-ment deals, athletes are look-ing for opportunities to investtheir money. Investment firms,in turn, are working to connectthem with private-equity dealsthey might not otherwise findor have access to, across in-dustries as varied as organicfood, tech, entertainment andreal estate.

Patricof, founded in 2018 byinvestment banker Mark Patri-cof, has invested about $60 mil-lion in private-equity deals,with athletes putting up at least$10 million of the capital. Otherfirms also focus on workingwith athletes. Ryan Howard, aformer first baseman for thePhiladelphia Phillies, helps runan athlete venture group forConshohocken, Pa.-based Sev-entySix Capital that introducesathlete-investors to startups.

Over the years, manywealthy athletes have been en-trepreneurs and investors.These days, some big-namesports stars pursue deals ontheir own or through firmsthey have set up. Brooklyn Netsbasketball player Kevin Duranthas Thirty5 Ventures, whichhas invested in electric scooterstartup Lime and investing appRobin Hood. Former Los Ange-les Lakers star Kobe Bryant,who died in a helicopter crashlast month, co-founded the Bry-ant Stibel venture-capital firm,which made more than twodozen investments, including inthe creator of Fortnite.

Firms such as Mr. Patricof’scan coach players throughtransactions and provide aflow of exclusive deal opportu-nities, including larger private-equity deals where they needto be part of an investor groupto participate.

Athletes have more moneyto invest as salaries in major

BY BENJAMIN MULLIN

Players Take Shot at Private Equity

Tennis legend Venus Williams is among current and former athletes who invest with Patricof.

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The FCA investigateswhether executives are “fitand proper” to lead based onconsiderations including hon-esty, integrity and reputationas well as competence and fi-nancial soundness, accordingto the regulator’s website.

Shares in Barclays closeddown 1.7% in London. It wasamong the weakest perform-ers in the Stoxx Europe 600Banks index, which also fell.

A senior executive encour-aged Mr. Staley to get to knowMr. Epstein when he was run-ning JPMorgan’s private bank,a person familiar with thematter said.

Mr. Epstein, who built afortune by establishing closerelationships with a smallgroup of rich and powerfulpeople, started connecting ac-quaintances to Mr. Staley andrecommending the privatebank, a person familiar withtheir relationship said.

Mr. Epstein connected JP-Morgan to Glenn Dubin, co-founder of hedge fund High-

bridge Capital Management.JPMorgan hired Mr. Dubin’sfund to manage assets tied tooffshore reinsurance productsthat helped private-bankingclients minimize taxes, peopleclose to Highbridge said. Mr.Staley was impressed with theperformance and started fun-neling private-banking clients’money into Highbridge’s fund.

Mr. Staley is battling to cutcosts and boost profits amid a

series of unexpected obstacles,including the whistleblowercontroversy. He also wadedinto a messy dispute betweenKKR & Co. and his wife’sbrother, causing the U.S. pri-vate-equity firm to pull busi-ness from the bank.

Last year, activist investorSherborne Investors waged acampaign to have Mr. Staleyscale back in investment bank-ing. Mr. Staley has defendedBarclays’s mix of businesses,saying it makes the bank resil-ient to market conditions tohave a large U.K. retail andbusiness bank, a New York-and London-based corporateand investment bank and aU.S. credit-card business.

Mr. Staley said Thursdaythat the model was working.Net profit rose 54% to £2.46billion ($3.19 billion) in 2019from 2018 and revenue wasflat at £19.72 billion. But Mr.Staley gave a cautious outlookfor the year ahead.

—Pat Minczeskicontributed to this article.

BarclaysCEO FacesU.K. Probe

Jes Staley

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THEWALL STREET JOURNAL. * * * * Friday, February 14, 2020 | B11

AUCTIONRESULTSHere are the results of Thursday's Treasury auctions.All bids are awarded at a single price at themarket-clearing yield. Rates are determined by the differencebetween that price and the face value.

FOUR-WEEKBILLSApplications $139,644,108,500Accepted bids $52,258,748,500" noncompetitively $1,537,716,600" foreign noncompetitively $319,000,000Auction price (rate) 99.878667

(1.560%)Coupon equivalent 1.588%Bids at clearing yield accepted 52.94%Cusip number 912796XB0

The bills, dated Feb. 18, 2020,mature onMarch 17,2020.

EIGHT-WEEKBILLSApplications $134,100,349,400Accepted bids $47,033,189,400" noncompetitively $290,015,500" foreign noncompetitively $200,000,000Auction price (rate) 99.756556

(1.565%)Coupon equivalent 1.595%Bids at clearing yield accepted 16.48%Cusip number 9127962B4

The bills, dated Feb. 18, 2020,mature onApril 14,2020.

30-YEARBONDSApplications $54,585,933,700Accepted bids $27,449,872,500" noncompetitively $3,093,900" foreign noncompetitively $0Auction price (rate) 98.640308

(2.061%)Interest rate 2.000%Bids at clearing yield accepted 26.95%Cusip number 912810SL3

The bonds, dated Feb. 18, 2020,mature on Feb. 15,2050.

The U.S. Treasury Depart-ment sold 30-year bonds at arecord low yield on Thursday,highlighting investors’ demandfor longer-term debt and itsbenefits to the government.

The Treasury sold $19 bil-lion of 30-year bonds onThursday afternoon at a2.061% yield. That beat theprevious record of 2.170% setlast October, according to datafrom BMO Capital Markets.

The auction came as Trea-sury yields gen-erally movedlower after Chi-nese officials

changed the way they countedcoronavirus infections, leadingto a big jump in the number ofconfirmed cases in the coun-try’s Hubei province. The yieldon the benchmark 10-year U.S.Treasury note settled at1.616%, compared with 1.629%Wednesday.

Yields fall when bond pricesrise.

Fear that the coronaviruswill slow global growth hashelped push down Treasuryyields in recent weeks. Otherfactors include persistentlysoft inflation, which has lim-ited one of the main threats tothe value of longer-term Trea-surys, analysts said.

Investors have also grownmore comfortable buying 30-year bonds because they viewthem as insurance againstlosses in riskier assets, saidJon Hill, a U.S. interest-ratesstrategist at BMO. Prices of30-year bonds increase morefor every one-percentage pointdecline in yields than those ofshorter-term bonds. Thatmeans on days like Thursday,when investors are sellingstocks and buying bonds, theholders of 30-year bonds arewell-hedged, Mr. Hill said.

Thursday’s level isn’t thelowest point that the 30-yearbond yield has ever reached.Last August, it settled as lowas 1.941%, but yields roseagain before the next 30-yearauction in September.

BY SAM GOLDFARB

TreasurysSold atRecordLow Yield

CREDITMARKETS

U.S. Sets Debt SalesThe Treasury Department will

auction $132 billion in securitiesnext week. Details (all with mini-mum denominations of $100):

� Tuesday: $40 billion in 21-day cash-management bills, a re-opening of an issue first sold onSept. 12, 2019, maturing March12, 2020. Cusip number:912796TK5.

Also, $45 billion in 13-weekbills, a reopening of an issuefirst sold on May 23, 2019, ma-turing May 21, 2020. Cusip num-ber: 912796SR1.

Also, $39 billion in 26-weekbills, dated Feb. 20, 2020, matur-ing Aug. 20, 2020. Cusip num-ber: 912796XF1.

Noncompetitive tenders forthe cash-management bills mustbe received by noon EST Tues-day and competitive tenders, by1 p.m. Deadlines for the 13- and26-week bills are 11 a.m. and11:30 a.m., respectively.

� Thursday: $8 billion in 30-year Treasury inflation-protectedsecurities, dated Feb. 28, 2020,maturing Feb. 15, 2050. Cusipnumber: 912810SM1.

Noncompetitive tenders mustbe received by noon Thursday;competitive tenders, by 1 p.m.

BlackRock CEO Laurence Fink

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StalledGlobal oil demand is forecast to contract from year-earlier levelsin first-quarter 2020.

Change in demand froma year earlier

Source: International Energy Agency estimates

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$589 million in market valueof charitable contributionsfrom its taxable income.

PennyMac shares fell 4.3%.The lender said it supportsBlackRock’s philanthropic ef-forts and welcomes more Pen-nyMac shares becoming avail-able to public investors.

Philanthropy and invest-ments in communities haveproved to be a powerful wayfor the biggest companies tosoften their images as corpo-rate overlords.

Alphabet Inc.’s Google saidit would commit $1 billion toboost housing construction inthe San Francisco Bay Area asSilicon Valley companies facescrutiny on how their pres-

ence in the places where theydo business is pricing out lo-cals. JPMorgan Chase & Co.has earmarked millions inphilanthropic investments aspart of a $500 million effort tojuice economic growth in cit-ies.

BlackRock’s retreat fromPennyMac closes a pivotal de-cade for the firm when someof its contrarian bets helpedcement its dominance in theinvestment world.

In 2008, the firm invested$34 million from its corporatebalance sheet to back Penny-Mac in anticipation of a waveof mortgages at bargain pricesthat could be restructured.The venture was run by for-

mer executives of CountrywideFinancial Corp., a now-defunctlender that became a symbolfor the excesses that led to thefinancial crisis.

BlackRock’s investment inPennyMac, a loan buyer andservicer, has paid off hand-somely. The stock has nearlydoubled since it went public in2013.

BlackRock donated $125million worth of its invest-ment in PennyMac to charityin 2013 but continued to holda minority stake. More re-cently BlackRock decided toexit from the rest of the in-vestment because it was nolonger core to its business andto fund charitable initiatives.

funds that track markets andsoftware that could help themmanage financial risks.

BlackRock’s donation willbring the firm $240 million intax benefits. The firm won’thave to pay taxes on the $125million in gains on its corpo-rate investment in PennyMac,and it will get to deduct the

ContinuedfrompageB1

BlackRockCashes OutCrisis Bet

product likely to be around 3%to 4% higher than a year ear-lier in the first three monthsof the year. Growth had previ-ously been forecast at 5%, al-though economists expectmuch of that lost output to berecouped as the year ad-vances, with only a limited im-pact on the global economy.Releasing new forecastsThursday, the European Com-mission said it expects to see“relatively limited global spill-overs.”

Weaker forecasts for oil de-mand come after double-digit-percentage drops in oil prices

this year, with the spread ofthe pathogen forcing borderclosures, flight cancellationsand other travel restrictionsacross China.

The IEA reported that Chi-nese jet-fuel demand will fall14% below last month’s fore-cast for 2020’s first quarter,while the country’s diesel andgasoline demand figureswould fall 12% and 13% belowlast month’s forecasts, respec-tively.

Reduced demand as a resultof the coronavirus will alsosting global refiners, theagency said, reducing its

global refinery runs forecastfor 2020 to 700,000 barrels aday. New bunker fuel regula-tions stipulated by the Inter-national Maritime Organiza-tion boosted sweet cruderefinery margins, though.

The IEA noted an 800,000barrel-a-day decline in globaloil supply, 710,000 barrels ofwhich appeared to be ac-counted for by OPEC. In De-cember, OPEC agreed with itsallies to deepen productioncuts by 500,000 barrels to 1.7million barrels a day until theend of March.

The United Arab Emirates

was responsible for 300,000barrels a day of that reduc-tion, the IEA said.

It said production inLibya—strained by blockadesamid the latest developmentsin its near-decade-long civilwar—dropped 360,000 barrelsa day.

Some OPEC nations haveattempted to bring forwardthe meeting scheduled forearly March between the car-tel and its allies, known asOPEC+. The organization’stechnical committee last weekrecommended deepening andextending current cuts.

forecast, citing uncertaintyaround the coronavirus out-break, and said Chief Execu-tive Jim Murren was steppingdown.

Haven assets climbed, withgold for February delivery ris-ing 0.5% to $1,575.10 a troyounce.

“As time goes on, peopleare realizing more of the tell-

tale signs of the economic im-pact” of coronavirus, said CliffTan, East Asian head of mar-kets research at MUFG.

In one such sign, Chineseauto sales dropped 18% in Jan-uary to 1.94 million vehicles,according to data from thegovernment-backed China As-sociation of Automobile Manu-facturers. Car sales typically

MARKETS

in the U.S. and Europe to re-cords.

The Dow Jones IndustrialAverage lost 128.11 points, or0.4%, to 29423.31, retreatingfrom a record set the priorday. The S&P 500 declined 5.51points, or 0.2%, to 3373.94 andthe Nasdaq Composite fell13.99 points, or 0.1%, to9711.97.

Although the number ofconfirmed cases in the U.S. re-mains low, analysts said dis-ruption to business and travelin China could ripple throughthe American economy.

A drop-off in tourism andslowdown in exports to Chinacould pull down annualizedU.S. growth by half a percent-age point in the first quarter,according to economists atGoldman Sachs Group.

Among individual stocks,shares of Cisco Systems fell$2.61, or 5.2%, to $47.32 afterthe telecom-gear maker saideconomic uncertainties haddelayed investment decisionsat some companies, dentingits sales growth.

MGM Resorts fell $1.86, or5.5%, to $31.80 after the resortoperator withdrew its 2020

slide during the Lunar NewYear holiday, but Mr. Tan saidhe expects them to tumblefurther in February. “How canyou buy a car if you can’t getto the dealership?” he said.

Elsewhere, the Stoxx Eu-rope 600 retreated less than0.1%, and the Shanghai Com-posite Index closed down 0.7%.

At midday in Tokyo Friday,the Nikkei was down 0.5%,Hong Kong’s Hang Seng Indexwas up 0.7% and the ShanghaiComposite was up 0.6%.

The British pound rose 0.6%against the dollar after SajidJavid, chancellor of the Exche-quer, stepped down.

Sterling rose on the basisthat “this could mean a stron-ger hand on the fiscal con-trols’’ for Prime Minister BorisJohnon, said John Wraith,rates strategist at UBS Group.“The prospect for more signif-icant fiscal loosening or fiscalstimulus is greater.”

Investors have overreactedto Mr. Javid’s resignation, ac-cording to Mr. Wraith. The de-parture appeared to be the re-sult of a political powerstruggle rather than a clashover economic policy, he said.

A rally in stocks paused af-ter an increase in the numberof new coronavirus cases inthe Chinese province at theepicenter of a global outbreak.

Chinese officials reportedthe number of newly con-firmed infections in Hubeisurged overnight. That raised

the prospect ofa longer periodof economicdisruption than

investors had anticipated andweighed on markets that hadclimbed for much of the pasttwo weeks.

The rising number of caseshas prompted “renewed con-cern around the dynamics ofthe coronavirus,” said JamesMcCormick, a strategist atNatWest Markets. “Having hadseveral days of relative calm,it’s a bit of a wake-up call thatthis process is probably goingto go on for quite some time.”

He said investors became “abit complacent” in recent daysas the number of new casesappeared to have slowed,helping push equity markets

BY JOE WALLACEAND AKANE OTANI

Stocks Fall as Virus Cases JumpIndex performance onThursday

Source: FactSet

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DowJonesIndustrialAverage

NasdaqComposite

THURSDAY’SMARKETS

LONDON—Global oil de-mand is expected to fall in thefirst three months of theyear—the first quarterly dropin more than a decade—ac-cording to a closely watchedforecast from the InternationalEnergy Agency.

The agency blamed a likelyeconomic slowdown in Chinarelated to the coronavirus out-break there.

The IEA also slashed its oil-demand growth forecast for2020 by 365,000 barrels a day,

a cut of 30%to its previ-ous forecast

made in January. The IEAwarned of a drop in oil de-mand this quarter of 435,000barrels a day, compared with ayear ago. That would repre-sent the first quarterly drop indemand since the height of thefinancial crisis.

Brent crude rose 1% to$56.34 a barrel but is still 18%below a peak hit early lastmonth. U.S. crude oil added0.5% to $51.42 a barrel and hasalso tumbled in recent weeks.

The IEA’s cut to its forecastdemand growth was signifi-cantly larger than the one an-nounced Wednesday by theOrganization of the PetroleumExporting Countries, which re-duced its estimate by 230,000barrels a day.

“The consequences of [thevirus] for global oil demandwill be significant,” the IEAsaid in its report. It said“there is already a major slow-down in oil consumption andthe wider economy in China.”

The Paris-based energywatchdog said China ac-counted for more than three-quarters of global oil demandgrowth in 2019, and its oil de-mand has more than doubledsince the outbreak of the SARSvirus in 2003. “There is littledoubt that the virus will havea larger impact on the econ-omy and oil demand than didSARS,” the IEA said.

Economists have loweredtheir forecasts for Chineseeconomic growth since thecity of Wuhan was sealed offon Jan. 23, and it becameclear that factories and otherbusinesses would suffer a lossof output as officials scram-bled to contain the spread ofthe virus.

Assuming that and otherlockdowns are lifted in April,economists expect the damageto Chinese growth to be lim-ited, with gross domestic

BY DAVID HODARI

Oil Demand Set to Post Rare Quarterly Drop

China accounted for more than three-quarters of global oil demand growth in 2019. A tanker in the country’s Shandong province.

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COMMODITIES

Natural GasRemains Plentiful

Natural-gas stockpiles aremore than 30% above their lev-els from a year ago, data re-leased Thursday show.

After U.S. inventories of nat-ural gas dropped 115 billion cu-bic feet during the week endedFeb. 7, stockpiles totaled 2.49trillion cubic feet, according toEnergy Information Administra-tion figures. That is 32% abovetheir levels from this time lastyear and 9.4% above the five-year average.

Natural gas is the primarysource of heat for about half of

U.S. homes, so demand tends tosurge in the winter. But milder-than-expected temperatureshave recently kept the fuel plen-tiful and hurt prices. Front-month futures hit their lowestlevel in nearly four years earlythis week. They have stabilizedsomewhat since then—thoughthey erased an early Thursdayadvance and closed down 1% at$1.8260 a million British thermalunits. Prices are 17% below aJan. 10 peak.

Driving the declines: Manyinvestors expect supplies to re-main plentiful moving forward,even with cold temperatures ex-pected to temporarily boost de-mand in the coming days.

—Amrith Ramkumar

B12 | Friday, February 14, 2020 THEWALL STREET JOURNAL.

Boeing Sets a Low Bar for AirbusInvestors have been more focused on the 737 MAXmess than the European plane maker’s troubles

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FINANCIAL ANALYSIS & COMMENTARY

Elon Musk’s company said that it plans to sell $2 billion in stock.

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Nestlé will be a year late deliver-ing a crucial growth target. Whileits turnaround is taking longer thanhoped, the maker of Nespresso cof-fee and Purina pet food is still oneof the most reliable operators in achanging consumer-goods industry.

The world’s largest food com-pany had mixed news for investorsin its full-year results Thursday. Itended 2019 within its operating-margin target range of 17.5% to18.5%, one year ahead of schedule.But a promise to deliver salesgrowth of between 4% and 6% by2020 was also pushed back a year.

A portfolio shake-up is one cul-prit. So far, Nestlé has sold moreassets than it has bought. This maybe because it can unload unlovedbrands more efficiently than com-petitors; there is no capital-gainstax in Switzerland. Recent disposalsof fast-growing but noncore assets,such as the skin-health division itsold last May, will be a temporarydrag on its top line.

Adding new brands may help,and Chief Executive Mark Schneiderhinted that the company wants tobe busier here in 2020.

Nestlé’s water brands are a con-cern, however. The division barelygrew last year, despite being one ofits most important categories. One-third of the unit’s sales are of pre-mium brands like Perrier, which aredoing well, but its mainstreamproducts are struggling to differen-tiate themselves from private-labelcompetitors. Until the problem isfixed—maybe by selling weaker per-formers or moving them upmar-ket—the unit will be an eyesore.

There was more positive news onthe U.S. market, which grew by 4.1%after a sluggish few years. And thecompany’s bet on pet care, whichwas its best-performing category in2019, is paying off.

Nestlé’s share price has risen by50% since Mr. Schneider kicked offa conservative, methodical turn-around plan in September 2017. Thepace is a little slow—particularlycompared with a resurgent Procter& Gamble—but the strategy is stillon track. —Carol Ryan

Slow andSteady

Nestlé CanWin RaceA sales-target delayisn’t cause for alarm

Inflation might be about to headhigher for reasons that have littleto do with what is going on in theU.S. and much to do with what ishappening in China.

Consumer prices rose 2.5% inJanuary from a year earlier, the La-bor Department reported Thursday,while core prices, which excludefood and energy items to bettercapture inflation’s trend, rose 2.3%.Neither number suggests that infla-tion is anything other than quies-cent or that the Federal Reserve’sfavored inflation gauge—which hasbeen running cooler than the LaborDepartment’s—is about to surpassthe central bank’s 2% target.

The effects of China’s novel coro-navirus outbreak could change that.Already, it has created a substantialdisruption to China’s economy, af-fecting the country’s consumptionand its output. The worse the out-break becomes, the longer it per-sists and the greater the stepsChina’s people, businesses and gov-ernment take to curtail the virus’sspread, the bigger the disruptionwill be.

The first effects of the virus on

prices are already there to see incommodity markets. With manyChinese factories idled by the ex-tended Lunar holiday, demandslumped, and even now with opera-tions starting to resume, it is any-thing but business as usual.

Benchmark Brent crude oil fu-tures have fallen about 15% thisyear, and the International Energy

Agency on Thursday estimatedglobal oil demand will fall 435,000barrels a day in the first quarterfrom a year earlier, representingthe first such drop since the finan-cial crisis. Prices for copper andiron ore, among other commodities,have declined.

But the decline in China’s con-sumption of raw materials goeshand in hand with a slowing inChina’s output, so the flow of thegoods China supplies to the worldwill be curtailed.

And since China is the majorsource for many consumer goods,prices could go higher as suppliesbecome scarcer. Retailers would ab-sorb some of the increases whilesome would be passed on to con-sumers.

The worse the impact on China’seconomy is, the more prices couldheat up. The Fed would likely lookthrough any coronavirus-related im-pact on prices. If anything, the out-break might make the central bankmore likely to ease policy. When itcomes to U.S. retailers and consum-ers, though, it would still matter.

—Justin Lahart

Brent crude-oil futures price

Source: FactSet

$70

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Jan. Feb.

Technical problems with a new military aircraft, the A400M Atlas, led Airbus to record a $1.3 billion charge.

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The old Oscar Wilde dictum isthat “there is only one thing in theworld worse than being talkedabout, and that is not being talkedabout.” Unless, of course, you arecompeting in a duopoly with Boe-ing.

On Thursday, European planemaker Airbus reported a net lossfor 2019. That was mostly due to a€3.6 billion ($3.9 billion) provisionto cover the settlement of corrup-tion probes by U.S., U.K. andFrench authorities earlier this year.

Airbus has suffered a lot of badpress over the past year, but inves-tors would be forgiven for not no-ticing. The grounding of Boeing’s737 MAX jet has taken all the at-tention.

Beyond the then-ongoing cor-ruption probe, 2019 started withAirbus announcing the retirementof its flagship A380 superjumbo af-ter the broadly unpopular planewas snubbed by its main customer,Emirates. Later, the World TradeOrganization granted the U.S. ap-proval to impose tariffs on Euro-pean Union exports, after rulingthat European governments hadgiven Airbus illegal subsidies.

Mirroring Boeing, Airbus has itsown technical problems with a newmilitary aircraft, the A400M Atlas.Exporting the jet is also gettingmore challenging, in part becauseGermany extended its weapons ex-port ban on Saudi Arabia. Thecompany recognized a €1.2 billioncharge related to the project in thefourth quarter.

Brexit could still prove a thornin the company’s side, Airbus ChiefExecutive Guillaume Faury warned,given that the new U.K. govern-ment seems more willing to loosen

trade relationships with the EU.And the coronavirus halted pro-duction at an assembly plant inChina for a short while.

More importantly, Airbus isgrappling with delivery delays ofaround six months for the AirbusA321. Re-engineering it with amore efficient cabin configurationproved harder than expected.Much of the upside for the com-pany in the next couple of yearsrelies on fixing these issues quicklyto ramp up production.

Finally, the company said it ex-pected to deliver only 40 A330 jetsa year starting in 2020, down froma previous rate of around 50, amid

weakening demand for wide-bodyplanes.

This isn’t to deny that the fu-ture seems bright for Europe’s jetmaker, which has a treasure trovein its narrow-body A320 family. Itsproduction rates could increaseeven further beyond 2021, Airbussaid Thursday. Adding more of theA321 variant into the mix—essen-tially an elongated version of thesmaller model—is already helpingmargins.

But the past year’s problemsmight have weighed on the sharesmore had it not been for Boeing’swoes. As it is, Airbus stock is upmore than 30% over the past year.

The MAX crisis isn’t only bad forBoeing in itself, but it has likelydelayed the announcement of acompetitor to the A321, makingAirbus’s production delays appearless bad. The U.S. company alsohas greater exposure to the flag-ging wide-body market.

Airbus hasn’t been able to takedirect advantage of Boeing’s crisis,because increasing production isdifficult in the short run, and planemakers accumulate years of back-logs. That its only real competitoris engulfed in the worst crisis inits history, though, is definitelyhelping it look good.

—Jon Sindreu

Nestlé organic sales growth, quarterly*

Source: the company*Stripping out exchange-rate moves and portfolio changes

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’192018

Tesla Strikes While the Iron Is HotJust 15 days after telling inves-

tors a capital raise “doesn’t makesense,” Tesla Chief Executive ElonMusk seems to have reconsidered:Tesla announced Thursday it plansto sell $2 billion in fresh stock.

Tapping the equity markets atthis juncture is the right thing todo for Tesla’s business. WhileTesla said it began the year withmore than $6 billion in cash, itsshare price has nearly doubledsince then. Companies should raisemoney when they can instead ofwhen they need to, and Tesla’s in-vestor base has never been thetype to worry about the implica-tions of shareholder dilution. Itsshares rose Thursday.

The price action is paired withthe reality that Tesla’s businessoperations and cash needs arewildly unpredictable. While thecompany has generated positivefree cash flow for three quartersin a row, it has burned as much as$1.4 billion in a single quarter.

Meanwhile, Tesla hasn’t given aforecast for capital expendituresthis year. The company said in asecurities filing Thursday that thisspending is “difficult to project be-yond the short term” due to thenumber of new products it isworking to develop. Since 2017,

Tesla has shown investors a semitruck, second-generation sportscar, pickup truck, solar roof tilesand a new crossover car model.None of these products have yetreached the market in any appre-ciable quantity.

But just as it makes sense forTesla to sell, buying into the offer-ing or even buying the stock onthe market at these levels seemslike a questionable bet. Despite the

excitement surrounding Tesla’sgrowth prospects, the reality isthat total company revenue de-clined over the final six months of2019 from a year earlier. Total2019 sales in the U.S., meanwhile,fell 15%.

Tesla’s valuation relative toearnings, revenue, vehicle outputand many other measures is offthe charts compared with any ma-jor auto maker and even niche lux-

ury brands.Tesla has said it expects to

“comfortably exceed” 500,000 ve-hicle deliveries this year, whichwould be good for 35% unitgrowth from a year earlier. That,however, is predicated on a majorexpansion in China. The coronavi-rus outbreak poses a seriousthreat to the local economy and,potentially, Tesla’s supply chain.Like most car companies, Teslapoints out in its filings that themajority of its components comefrom a single provider of that part.

Last month Tesla said it ex-pected to be profitable and cash-flow positive going forward, albeitwith “temporary exceptions.”Thursday, a securities filing gaveskeptics of Mr. Musk’s financialforecasts fresh reason for doubt:Tesla said it received a subpoenalast December from the Securitiesand Exchange Commission seekinginformation regarding financialdata and contracts on Tesla’s regu-lar financing arrangements.

The fresh cash will help cushionany blow and is, from the com-pany’s point of view, an extraordi-narily cheap source of financing.That could make it very expensivefor those putting up the money.

—Charley Grant

China’s Outbreak Could Lift InflationOVERHEARD

There is a popular misconcep-tion that “don’t look a gift horse inthe mouth” comes from the Greekepic poem “The Iliad.” Rather thanthe Trojan Horse, the proverb’s ori-gin is much newer and is about ac-tual horses’ mouths. The meaning:Be grateful rather than suspiciouswhen given something free.

Those who bought bonds frommodern Greece eight years agowhen their yield topped 44% andheld on are surely flashing theirpearly whites. The yield on thebonds just fell below 1%—well be-low the 1.62% Uncle Sam will payyou. Greece is hardly a paragon offiscal virtue today, though. At least

one rating agency still rates itsdebt as junk even as only one ma-jor agency rates U.S. debt belowthe highest triple-A.

The profit to a buyer of a Greekgovernment bond in early March2012 has been astounding—aroundthree times what one would haveearned by owning the S&P 500and even better than Apple, whichwas selling the iPhone 4 at thetime.

Locking in a 1% yield today willbe a lot less profitable no matterwhat happens in the next decade.Sure, the economy could keep re-covering but, as they say, bewareof Greeks bearing gifts.

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